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Hrm vs pm

  1. 1. Name Gwinyai P Tapera Reg R2013086J Course HRM
  2. 2. 1 Define and explain the term human resources management and personnel management 2 With reference to practical examples, outline and explain the difference between HRM and PM Human Resources Management Human resource management (HRM) is planning, developing, and administer policies and programmes designed to make use of an organisation’s human resources. It is that part of management which is concerned with the people at work and with their relationship within an organisation, (http://www.whatishumanresource.com/Human-Resource-Management-functions). The major functional areas in human resource management are: 1. Planning, 2. Staffing, 3. Employee development, and 4. Employee maintenance. These four areas and their related functions share the common objective of an adequate number of competent employees with the skills, abilities, knowledge, and experience needed for further organizational goals. Although each human resource function can be assigned to one of the four areas of personnel responsibility, some functions serve a variety of purposes, (Johnason. P, 2009). For example, performance appraisal measures serve to stimulate and guide employee development as well as salary administration purposes. The compensation function facilitates retention of employees and also serves to attract potential employees to the organisation. Personnel Management Personnel management is that field of management which has to do with planning, organizing, and controlling various operative activities of procuring, developing, maintaining and utilizing a labour force in order that the objectives and interest for which the company is established are attained as effectively and economically as possible and the objectives and interest of all levels of personnel and community are served to the highest degree, (http://dictionary.cambridge.org/dictionary/english/personnel-manager). Functions of Personnel Management are as follows:
  3. 3. a) Manpower Planning b) Recruitment c) Selection d) Training and Development Question B HRM and personnel management focus on workers or employees’ management, but when critically examined there are municipal differences between them that arise when making mention about the nature of relations, leadership and management role, contract of employment and pay policies and job design and others aspects Approach Traditional personnel management tended to be narrow-minded which means it is little old in handling employees at work place, striving to influence line managers and to manage people in the organization, whereas HRM is a more modern and more specific approach of managing human resources at a workplace and is integrated into the role of line managers and managing people and their strengths in the organization with a strong proactive stance and a bias towards business, (Marchington et al, 1992; Storey, 1992; Legge, 1989, 1995), for example a business can buy a software (Performance Appraisal System) which can help HR to manage employees and reward them accordingly, hence performance can increase. (http://www.ukessays.com/essays/business/personnel-management-versus-human-resource- management-business-essay.php#ixzz42xv02dnL) Leadership and management role The leadership style adopted by personnel management is very transactional. Transactional style sees the leader as a task-focused individual. The leadership style focuses on procedures that must be carried out castigation is often the result from non-compliance of rules and regulations and task accomplishment. Human factors such as personal bonding, interpersonal relationship, trust,
  4. 4. understanding, tolerance and care are actually not really taking into high consideration as much as the task at hand or in the distance future. Transformational leaders are created by HRM. This style encourages business objectives to be divided by both employees and management. Workers-orientation is the key coupled with shared vision, corporate culture and mission, and trust and flexibility replaces the crude approach of procedures, rules and regulations (Yukl G. et al, 1992). This approach to or style of leadership and managing the employment relationship influences strategies and organizational objectives. Among large Zimbabwean companies, this style might be found in such companies as Econet. Pay policies and job design Pay policies in personnel management is mostly based on skills and knowledge required for the perspective jobs only. The value is based on the ability to perform the task and duties as per the employment contract requirement only. It does not encourage value-added incentives to be paid out. This is also because the job design is very functional, where the functions are more departmentalized in which each job falls into one functional department. This is merely known as division on labour based on job needs and skill possessions and requirement, (http://managementstudyguide.com/training-of-employees.htm). Human Resources Management (HRM), on the contrary, encourages organizations to look beyond pay for functional duties. Here, the pay is designed to encourage continuous job performance and improvement which is linked to value-added incentives such as gain sharing schemes, group profit sharing, overtime and individual incentive plans. For example government workers doctors, nurses can actually get paid overtime incentive this is done to improve and achieve better health standards through continuous job performance. The job design is no more functional based but teamwork and cyclical based. HRM creates a new approach towards job design such as job rotation which is inter and intra-departmental based and job enlargement which encourages one potential and capable individual to take on more tasks to add value to his/her job and in return enjoy added incentives and benefits. For instance, at Catholic University a lecturer can be good at a specific course but due to increased demand of lecturers, the same lecturer can take on two or more courses which is increasing scope of duties to be taken.
  5. 5. Contract of employment In personnel management, employees’ contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so rigid that there is no room for changes and modifications, Johnason, P. (2009). There is no compromise in written contracts that stipulates rules, regulations, job and obligations. This is commonly in government once you get employed all the standards have been set already. This becomes boring and less challenging to employees because the contract is so rigid. HRM, on the other hand, does not focus on one-time life-long contract where working hours and other terms and conditions of employment are seen as less rigid. It goes beyond the normal contract that takes place between organizations and employees. The new flexible approach encourages employees to choose various ways to keep contributing their skills and knowledge to the organization, (M. Kaveri, Dr. G. Prbhakaran, 2013) For example in private sector works can collude to bring different ideas this is because the market is dynamic hence more innovative ideas are need and the flexibility approach is under HRM can serve its purpose. HRM, with its new approach, has created flexi-working hours, work from home policies and not forgetting the creation on open contract system that is currently practiced by some multinational companies such as Coca-Cola. HRM today gives employees the opportunity and freedom to select any type of working system that can suit them and at the same time benefit the organization as well. This is known as win-win approach. Difference in Application Personnel management is an independent staff function of an organization, with little involvement from line managers, and no linkage to the organization's core process. Human resource management, on the other hand, remains integrated with the organization's core strategy and functions, (Tripathi. P. C. (2002)). Although a distinct human resource department carries out much of the human resource management tasks, human resource initiatives involve the line management and operations staff heavily. Personnel management also strives to reconcile the aspirations and views of the workforce with management interest by institutional means such as collective bargaining, trade union-based negotiations and similar processes, ( Legge, Karen (2004)). This leads to fixation of work conditions applicable for all, and not necessarily aligned to overall corporate goals. Human Resource management gives greater thrust on dealing with
  6. 6. each employee independently and gives more importance to customer-focused developmental activities and facilitating individual employees rather than negotiating with trade unions, (PTUZ). Training and development Training and development refers to the imparting of specific skills, abilities and knowledge to an employee. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities, to help them and the organization grow and reach the organizational goals. (http://accountlearning.blogspot.com/2013/01/difference-between- personnel-management.html). For examples workers can be granted workshops, on job training and off job training, it bring benefits to the organisation which are improves morale of employees, less supervision, fewer accidents at workplace and increased productivity. These are factors which HRM focus when providing training to workers which differs form PM. Treatment of Workers Personnel Management treats the employees like other resources that have no feelings and special skills to perform their jobs. Multinational companies’ usual treats workers in a way that is different from their culture for example a worker can be granted few days-off after death of a close relative, in our culture we sympathize with that person. This is because they practice PM which have no feelings towards workers. However in HRM employees are treated sensitively keeping their ego, their emotions and their feelings unharmed and intact. Which means HRM deals with workers individually and cater their needs rather than as a collective group, (https://www.educba.com/hrm-vs-personnel-management/) Functions The functions of personnel management are very routine. Which means things which were done for the past fifty years will be still practiced, for instance a women can be granted maternity leave only after working for the company for two year or more. Hence flexibility depends with conditions is disallowed. In HRM functions are very strategic as it is based on a number of strategies and things can change depends with environment dynamicity. There is alignment between business goals and strategic plans which are not same old story over the past decade.
  7. 7. Decision Making In personnel management (PM), decisions are made by the top management as per the rules and regulation of the organization. In other words PM is more centralized in decision making which involves lot of bureaucracy hence slow decision making. For example proposing a project to a company let’s say Netone, it takes time for feedback because the decision go through lot of channels. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment. Company is dominant in the market because most of the decisions are done mostly on any local Econet shop like sim-card replacement and Major issues are transferred to the main brunch. Employees have certain rights in decision making which make them work effectively and efficiently. Conclusion In summary, Personnel management strategies, like HRM strategies, flow from the business strategy. Personnel management, like HRM recognizes that the line managers are responsible for managing people. The personnel function provides the necessary advice and support services to enable managers to carry out their responsibilities. Reference a) b) http://accountlearning.blogspot.com/2013/01/difference-between-personnel- management.html c) http://dictionary.cambridge.org/dictionary/english/personnel-manager d) http://managementstudyguide.com/training-of-employees.htm e) http://www.ukessays.com/essays/business/personnel-management-versus-human- resource-management-business-essay.php#ixzz42xv02dnL f) http://www.whatishumanresource.com/Human-Resource-Management-functions g) https://www.educba.com/hrm-vs-personnel-management/
  8. 8. h) Johnason, P. (2009). HRM in changing organizational contexts. In D. G. Collings & G. Wood (Eds.), Human resource management: A critical approach (pp. 19-37). London: Routledge i) Legge, Karen (2004). Human Resource Management: Rhetorics and Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan. ISBN 1-403-93600-5. j) M. Kaveri and Dr. G. Prbhakaran, Benfring International Journal of Industrial Engineering and Management Science, Vol. 3, No.1, March 2013. k) Marchington, M., Wilkinson, A., Ackers, P. And Goodman, J. (1993) 'The Influence of Managerial Relations on Waves of Employee Involvement', British Journal of Industrial Relations, 31(4): 553-76. l) Tripathi. P. C. (2002). Human Resources Development, Sultan Chand & Sons Image Credit: flickr.com/myki roventine m) Yukl, G. A & Latham, G.P. (1992). Interrelationships among employee participation, individual differences, goal difficulty, goal acceptance, goal instrumentality, and performance [online]. Personnel Psychology, 31, [Accessed 25 March 2010] pp. 305-324.

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