Difference between Personnel Management and Human-Resource Management - Essay Example

? Human Resources (HR) and Human Resources (HR) Introduction Human resources management involves: planning personnel needs, conducting job analyses, recruitment of the appropriate people for the job, training and orienting, providing incentives and benefits, managing salaries and wages, resolving disputes, evaluating performance, and Communicating will all the organizations employees at all levels. There are various examples of key qualities of human-resource management; they include: leadership, extensive industry knowledge, and Effective negotiation skills. According to (Price, 2011), the profession of human resource management was formerly referred to as personnel management. LO. 1 Understand the Difference between Personnel Management and Human-Resource Management Personnel management Personnel management is defined as: 1. obtaining, 2. maintaining, and 3. Utilizing the satisfied workforce The objective of personnel management is to achieve the mission and vision statements of the organization. Personnel management is a paramount pat of the management, which is mainly concerned with the employees as well as their relationships with the organization. It is paramount to note that personnel management is mainly administrative in nature whereby it deals employees, the employment laws and their payroll among other administrative functions. Personnel management is considered reactive since it offers demands and concerns as they are presented whereas from a motivational concept, it mainly tends to only motivate the employees through bonuses, compensations and rewards. Notable human resources management have defined personnel management as the process of: organizing, planning, integration, maintenance, and Compensation of the employees. The fundamental purpose of this process is o effectively contribute to: societal, individual and Organizational goals. Goals of the Personnel Management 1. To create of a healthy and congenial environment for the employees in order for them to function effectively 2. To bring about of human resource and organizational growth through development programs, training and managerial succession planning. 3. To select and place appropriate number of employees by ensuring proper allocation of responsibilities and duties upon them 4. To create effective inter-personal relations at the same time developing a sense of responsiveness and responsibility amongst the employees and the workers. Personnel management adopts the best conceivable methods or techniques in order to bring the best possible developments of the employees on work by cooperation between capital and labor (Randhawa, 2007). Human Resource Management Human-resource management is the fundamental function within an organization that mainly focuses on management, recruitment as well as offering directions to the employees in order for them to achieve the organizations' objectives. The line managers can perform these functions since nowadays; human-resource management courses are an integral part of the line managers’ training. Human-resource management is an organizational role that deals widely with: hiring, safety, wellness, performance management, compensation, employees’ motivation, administration, communication, and Training. Human-resource management is a strategic approach that manages employees as well as the workplace environment and culture. Effective human-resource management plays a fundamental function in ensuring that an employee can contribute productively and effectively to the organizations’ overall directions and be able to achieve the organization’s objectives and goals. Human-resource management involves shifting away from the old traditional transactional, administration and personal roles. Currently, a human-resource manager is fully expected to add value, especially to the strategic utilization of the employees and to ensure that the various employee programs have a direct impact on the business in measurable ways. Some of the latest functions of the human-resource management include human-resource measurement and metrics in order to demonstrate fully the values and to offer strategic direction (Randhawa, 2007). LO. 2: Understand how to recruit employees The recruitment process of employees in an organization involves various processes that have to be undertaken by the human-resource department. Recruitment is referred to as the noble process of searching for the right candidates for employment as well as stimulating them so that they can apply for jobs in the organization. Thus, recruitment is mainly the activity, which links the job seekers and employers. Since recruitment is the process of attracting and finding capable candidates for employment, this process starts when new candidates are sought and the process finishes when their applications are finally submitted. The resultant of this process is a pool of many applications whereby they are professionally selected in order to pick the best candidate (Randhawa, 2007). It is worth noting that recruitment is a continuous process whereby the recruiting organization tries to develop effectively a pool of qualified candidates for future human-resource reference even though particular vacancies do not exist. Normally, the process of recruitment begins when a manager initiates a requisition for an employee for an anticipated vacancy or for a certain vacancy (Price, 2011). The importance and purpose of human resource planning include: 1. Encouraging and attraction of more candidates so that they can apply in the firm, 2. creating of a talent pool of various candidates in order to enable the effective selection of the best applicant for the organization, 3. determining the future and present job requirements of the firm in conjunction with the job analysis activities as well as its human-resource planning, 4. increasing the pool of job applicants at minimum cost and thus ensuring that the organization can make substantial savings, 5. increasing the selection processes’ success rate by decreasing the number of evidently overqualified or under qualified job applicants, and 6. Assisting in the reduction of the probability that the job candidates once selected and recruited will leave the firm only after a minimal period. The recruitment process has to meet the firms’ social and legal obligations concerning the composition of its employees. It has to lead to an increase of individual and organization effectiveness of different recruiting sources and techniques for each type of job applicant (Randhawa, 2007). A good example is between the recruitment and selection process of Tesco whereby Tesco announces various jobs in various ways, and the process only depends on the available jobs. Tesco’s’ recruitment process involves two vital stages of external and internal recruitment. For internal recruitment, Tesco: evaluates its internal Talent Plan in order to fill the vacancy list the current employees who are waiting for a promotion on the same level if there is no suitable employee on the internal management promotional program, then Tesco will take the initiative of advertising for the post internally through the intranet, which is within the organization for a period of two weeks. For Tesco’s’ external recruitment, the company: advertises the vacancy through its website interested candidates make applications online for the positions, Successful candidates are interviewed as well as pass an assessment test for the last section of the selection process. Any persons interested in the store based jobs at Tesco can always go to the various stores with their CVs or as well as register at the Job center Plus. Another example is with the Asda Reality whereby the candidate is successful at the application stage; they will be requested to go to Asda's assessment center, which normally referred to as the Asda reality. This reality centre is a great opportunity for any applicant to experience what it is really like working for Asda and this ultimately provides them with an overview of the functions to be applied. It also provides the managers the opportunity to evaluate what kind of a candidate is being hired. The interview process is the last stage of the recruiting process whereby the applicant is offered the rare opportunity to portray to a leader and senior manager their chosen field that they want to undertake (Randhawa, 2007). LO. 3 Understand how to reward employees in order to motivate and retain them A motivational theory is a set of statements, propositions, and principles that are devised to explain a group of facts surrounding the aspects of motivation. The examples of theories of motivation include: 1. Maslow’s theory of motivation 2. Alderfer’s ERG theory 3. Acquired needs theory 4. Cognitive evolution theory 5. Herzberg’s two factor theory 6. Vroom’s expectancy theory A reward is anything that is given in recognition of an achievement, service or extra effort in performance. Rewards are given to quality and high performance employees as one way of motivating them rewards are given in form of: Commissions Certificates of performance Best employee of the year awards Paid leaves and holidays A completely motivated as well as an increased concentration workforce will most likely to make mistakes in accordance to recent research by authoritative authors in the human-resource profession which has conclusively shown that these results to fewer conflicts or accidents. This also leads to more loyalty to the firm as well as less absenteeism, especially from work. It is worth noting that a workforce that is not motivated will always lead to poor efficiency of the employees and poor quality of work. Various motivational rewards and theories at Tesco show that Tesco believes in rewarding and motivating their employees. Tesco ultimately believes that business depends on two kinds of whom are the customers and the employees. Tesco appreciates the fundamental fact that their employees are special, and they do have various diverse lifestyles outside work. Thus, Tesco supports its employees in the creation of a balance between personal life and work, and it offers them different rewards through their work life. This includes flexible working hours, free lessons on health benefits, discounted gym memberships, and company Share Options annually (Price, 2011). According to Randhawa (2007), the factors that determine the salary/pay include: 1. the kind of level of Skill that required by the organization, 2. Demand and supply of Labor and the geographic locations of the firm. 3. setting of the firm, 4. the compensation philosophy that the organization believes on, 5. the organization’s profitability, 6. the employment security that provides the employment stability 7. the employee performance and 8. tenure conditions Effective reward systems should: 1. Attract and retain employees’ motivation 2. Motivate the performance of employees 3. Enhance the skills and knowledge of employees 4. Contribute to the culture of the organization 5. Reinforce and define the structure of the organization 6. Consider the costs of the reward in relation to the plan of the organization Methods that organizations use to employee performance include: Periodical quality checks to find out employee performance over a given period The number of units produced by a particular employee Employee appraisal LO. 4 Know the mechanisms for the cessation of employment Any employer has the absolute right to dismiss any employee at will for as long as it is performed in accordance to the stipulated laws so that they the employer does not violate the terms and conditions of the employment. An employee can lay claim to various numerous reasons of termination, which include the employee voluntary leaving the organization for their own reasons. It is worth noting that the employment contract normally states that any party between the employee and the employer has the right to terminate the contract, for as long as there is a lieu of notice, which normally varies for a period of a minimum one month depending on the contract. Thus, each party has to inform the other party on the reasons for termination of the contract not unless it is a summary dismissal, whereby is not negotiable according to the stipulated rules that govern an employee (Price, 2011). Any employee termination can have various reasons such as layoffs, buyouts/mergers, poor performance, behavioral misconduct and redundancy. The usual exit procedure at Tesco/Sainsbury is that there are normally three procedures, which include transfer, resignation or a termination. 1. In terms of resignation, any employee who is displeased with their job environment, mainly of the workplace has the liberty to a resignation letter to their immediate supervisor or human resources manager and expounds deeply on the various reasons that they are resigning as well as clearly mentioning the fundamental reasons of leaving the workplace. 2. Concerning transfers, there are mainly two methods at Tesco, which include an employee requesting to have a transfer in a certain store or the manager wanting to send him/her to another location, which is strictly based on their performance. 3. Finally, termination matters have to be performed strictly and in adherence to the stipulated disciplinary regulation and law. There has to be an initial process of a verbal and written warning, a disciplinary action taken, an exit interview and eventually a termination letter. Every organization has to strive to ensure that they practice the best human-resource management in accordance to the stipulated laws in order to endeavor to attract the best and reliable human resource and to be able to retain them without having the need of the employees leaving the organization (Randhawa, 2007). Diagrammatic Representation of the Performance of Human Resource management in Organizations (Source: http://www.5elementsrpo.com/2012/11/human-resource-management/) References Price, A., 2011. Human resource management. Andover, Cengage Learning EMEA. Randhawa, G., 2007. Human resource management. New Delhi, Atlantic Publishers & Distributors. Read More