Concepts and Practices of Traditional Personnel Management with Contemporary Forms of People Management - Coursework Example

Personnel Management and HRM By + Personnel Management and Human Resource Management Human resourcemanagement is an advancement of the practices of personnel management. The two concepts have similarities and differences, which this paper seeks to analyze. This essay will define the two concepts, identify their areas of similarity, and describe the ways in which they differ. Definitions Human resource management (HRM) HRM is a modern way of managing people in the organization with a keen focus on development and the implementation of workforce strategies for the achievement of organizational goals. HRM involves a strategic and an all-inclusive approach to managing employees, the organizational culture, and the workplace environment. This function of management focuses of the value of the human resource and carries out various functions to position the employees strategically: recruitment, compensation, termination, motivation, performance management, health and safety, communication, training, benefits, organizational development, and administration (Burke and Cooper, 2006). Personnel management Personnel management refers to the managing of people through administrative record-keeping functions of an organization and the enhancement of equitable working conditions. This function of management puts more focus on the issues of fair treatment of employees, payroll/records management, and implementation of employee rules (Gunderson, 2002). The organization that applies personnel management believes that the organization will be successful by properly managing the issues ascribed to its personnel. Similarities Integration with the objectives of the organization Personnel management and HRM focus their activities towards the achievement of organizational goals. Both practices operate within the laid down objectives of the organization in order to ensure consistency with other organizational functions (Armstrong and Armstrong, 2009). It is through the organizational objectives that these two practices are able to design their objectives and ensure coherence with organizational goals. Emphasis on competency development Both personnel management and HRM put an emphasis on the development of individuals to enhance their competency (Armstrong and Armstrong, 2009). The two concepts ascribed to managing people believe that building competencies in people enhances the motivation of individuals and facilitates the achievement of organizational goals. Both practices of managing people have programs that aim at improving the skills of the employees, though these programs vary in intensity and comprehensiveness between the two practices. Administrative functions Personnel management and HRM have administrative functions. Both practices ensure the proper management and maintenance of employee records (Gilley, 2009). Both paradigms to managing personnel have a registry that keeps data on employees’ benefits, vacations, identification, payroll, and promotions. The management practices monitor employees’ performance, for example checking work durations to calculate their compensation. Both personnel management and HRM view the proper maintenance of these records as being an essential part of the proper management of people. Solve employee problems Both HRM and personnel management show commitment to the provision of solutions to the problems of the employees (Burke and Cooper, 2006). The welfare of the employee is a priority of the two practices, and these practices facilitate the problem-solving process in order to maintain the productivity of employees. These problems may be personal, for example, issues on duties or disabilities, or they may involve all employees for example the need for pay increase. Whether personal or collective, both management practices would step in to provide solutions. Right placement Both practices of management put emphasis on the match between an employee and the job. Employees’ placement considers the individual’s skills and expertise when assigning roles and duties. Employees work in areas that suit their qualifications and experiences (Gunderson, 2002). The two concepts of personnel management believe that the right placement of employees has a positive influence on the productivity of the employees and the success of the organization. Similar methods of doing things The payroll software packages, the methods of employee selection, termination, among other functions are common between the two management concepts. The two management practices employ similar methods of conducting these functions. However, other functions may have differences in their methods. Differences Involvement versus non-involvement in organization’s direction The manner in which HRM relates with people’s issues is different from the way personnel management handles the same issues. Employees in HRM have a chance to contribute to the strategy of the organization, and the organization values their input (Armstrong and Armstrong, 2009). The HRM creates a mission and vision through the involvement of employees and the management in order to achieve the goals of the organization. The mission and vision guides the employees to satisfy the needs of the organization, while the organization takes care of the interests of the employees (Schuler, 1988). HRM holds that the human resource has a mixture of great talent that will drive the organization to success and recognizes the need to involve the employees in generating innovative ideas for the organization. On the other hand, personnel management offers little involvement opportunities for employees to participate in decision-making (Gunderson, 2002). There is a limitation on the role of the employees to their respective job descriptions and operational activities. Employees do not have the chance to contribute to the organization’s direction and mission. Personnel management encourages the contractual form of employment where an employee comes to the organization to do what he/she has to do, but not to involve themselves in other issues of organizational importance (Wood, Brewster and Brookes, 2014). Decentralization of power In personnel management, the powers of decision-making rest with the top management. There is centralization of power and authority concerning decision-making. The employees alongside the personnel managers do not participate in decision-making on employee relations (Wood, Brewster and Brookes, 2014). The management focuses on the top-down approach of management where the employees have no say in the way they relate with the organization. In HRM, there is decentralization of power whereby the middle and bottom levels of management have significant input on decision-making, especially concerning the human resource (Burke and Cooper, 2006). HRM recognizes the importance of empowering employees to make decisions that benefit themselves and the management of the organization. HRM uses the total quality management approach in management of teams and the distribution of authority. The management adopts the bottom-up approach in the management of its workforce by encouraging the feedback of the employees while the management provides the necessary support for the accomplishment of shared goals (Gilley, 2009). Leadership and management role Personnel management emphasizes on a transactional style of leadership, which depicts the leader as being task-oriented. The leaders and managers focus on the level of adherence to rules and procedures of the organization. The leaders are keen to punish employees who fail to follow procedures and provide strict supervision for the employees not to deviate (Mahoney and Deckop, 1986). Overall, managers and leaders in personnel management set expectations and monitor the achievement of these expectations at the expense of appreciating the human nature of bonding and interpersonal relationships. In HRM, the leadership and managerial style is transformational. The leaders seek to understand their employees, nurture them, and help them achieve organizational goals. The leaders and managers are people-oriented and replace policies/procedure with corporate culture and mission, an integration of HRM needs with business needs, shared vision, and trust. HRM puts confidence in its employees to achieve set goals through motivation and understanding. Flexibility of employment contracts In personnel management, employment contracts are rigid with no room for amendments. Employees need to follow the terms and conditions in totality. The contracts of employment do not allow for compromises in the adherence of the rules and regulations (Armstrong and Armstrong, 2009). The focus is on long contracts that have rigid terms and working hours that are disadvantageous to the employee but beneficial to the organization. In contrast, HRM provides flexible options for employees to choose from in order to continue making valuable contributions to the organization. This flexible approach allows for open contracting, work from home policies, and flexi-working hours (Wood, Brewster and Brookes, 2014). The organization enables employees to select working approaches that best suit them and benefits the organization as well. The organization can best utilize the skills of the employees in these flexible working conditions and create a win-win situation between employees and the organization. Compensation policies and job design The pay policies depend on the skill levels of the employees in personnel management. The main emphasis in remuneration is the performance of the duties in accordance with regulations and contract of employment (Gilley, 2009). Personnel management does not encourage the payment of value-added incentives. This type of payment may arise from the functional design of the jobs that results from functional departmentalization. On the other hand, HRM looks beyond the functional roles of employees in making remuneration packages (Gilley, 2009). The compensation of employees considers the work performance of the employee and rewards the employees to encourage improvements in work performance. HRM focus on value-added incentives like group profit sharing schemes and individual incentive plans. HRM applies a cyclical and teamwork based job design. The job design involves job rotations within and with other departments. The employees can take more jobs and widen their experience as well as gain additional incentives. Strategic versus operational Personnel management is an operational way of managing people that involves the day-to-day administrative functions (Schuler, 1988). The management manages employees without placing focus on their long-term human resource contribution towards the organization. The human resource docket is keen on short-term employee contributions and mainly carries out routine tasks like supervision, filing records and compensation. However, HRM focuses on the long-term implications of human resource decisions to the organization. The HRM docket emphasizes on the use of human resource as a tool to achieve the strategic goals of the organization (Mahoney and Deckop, 1986). The organization carries out non-routine tasks in addition to the routine tasks so that it comprehensively covers all the aspects of the people for the strategic success of the organization (Schuler, 1988). The non-routine tasks include human resource planning, skill development, and human resource forecasting. HRM considers employees to be a valuable asset that requires management attention for the organization to gain a competitive advantage. Delegation of the human resource function Personnel management is the role of the personnel manager. The function of personnel management lies with the personnel department (Burke and Cooper, 2006). There is centralization of the employee management functions such that the personnel manager and his/her department cover all the aspects of employee issues in the organization. This work burden leaves the personnel management department overwhelmed and ineffective in handling employee issues. In contrast, HRM allows for the management of the human resource at all levels of management. Every manager has some concern on the welfare of the employees (Armstrong and Armstrong, 2009). The delegation of the human resource function enables the managers at all levels to gain insight on employee issues and work towards solving them (Mahoney and Deckop, 1986). The HRM department has a reduced workload and maximizes its time and resources on the strategic management of the human resource rather than on the operational functions. In conclusion, both HRM and personnel management focus on employees’ welfare among other similarities that this paper outlines. However, the two approaches to managing people have many significant differences in the way they espouse the governing of organizations. References Armstrong, M. and Armstrong, M. (2009). Armstrongs handbook of human resource management practice. London: Kogan Page. Burke, R. and Cooper, C. (2006). The human resources revolution. Amsterdam: Elsevier. Gilley, A. (2009). The Praeger handbook of human resource management. Westport, Conn.: Praeger. Gunderson, M. (2002). Economics of personnel and human resource management. Human Resource Management Review, 11(4), pp.431--452. Mahoney, T. and Deckop, J. (1986). Evolution of concept and practice in personnel administration/human resource management (PA/HRM). Journal of Management, 12(2), pp.223--241. Schuler, R. (1988). Personnel and human resource management choices and organisational strategy. Asia Pacific Journal of Human Resources, 26(1), pp.81--100. Wood, G., Brewster, C. and Brookes, M. (2014). Human Resource Management and the Institutional Perspective. Hoboken: Taylor and Francis. Read More