The Roles of the Personnel Manager - Essay Example

Concern about exploitation of people working in factories gave rise to the concept of personnel management. This practice was introduced in most countries to deal with issues concerning grievances and welfare of the people. However, as the competitive environment changed and businesses adopted a customer-focused approach, it was increasingly being realized that people and their knowledge were the only source of competitive advantage (Alagse, n.d.). People started banking on employees’ domain knowledge for developing innovative new products and services with a view to enhance customer satisfaction. This change in attitude of the management gave rise to the concept of human resource management (HRM) through which personnel policies were implemented to maximize organizational integrity, employee commitment, flexibility and quality. However, there have been debates whether HRM has actually changed the management of people as it evolved from personnel management to human resource management, or even whether the roles of the then personnel manager and that of an HR director differ. Personnel management was concerned with obtaining, organising and motivating the human resources required by the corporation, while HRM has been described as “high-concept personnel management” (Armstrong, 2000). Armstrong believes that policies and practices such as performance appraisal, skill analysis and merit pay have all existed even earlier but they are now packaged differently without any discernible differences in their content. The HRM theory laid emphasis on organizational integrity, employee commitment, flexibility and quality but it was more of a label to wrap around the observable changes. The HRM concept focused on challenging deficiencies in attitude, coherence, direction and scope of the existing personnel management This fad in the name of HRM was growing because in 1990 only 6 percent of the people management specialists used the HR title which grew to 30 percent by 1998 (Caldwell, 2002). This was called HRMism which was a phenomenon that encompassed anything to do with managing the employment relationship. Alagse contends that personnel management was traditionally aimed at non-managers whereas HRM focused on management development. Some like Armstrong do not believe that there is change in the way people are managed. The ‘progressive’ people management techniques were flourishing even before the emergence of the HRM practices (cited by Caldwell, 2002). As the competitive environment increased, changes in practices of managing people evolved naturally and hence it is not the creation of a new paradigm. However, as the situation changed, the HRM specialists felt that human resource policies could not be left to the personnel specialists (Cunningham & Hyman, 1999). Caldwell too agrees that despite confusion, there is evidence that the perceived roles and practices of the personnel and HR specialists definitely have distinguishing characteristics. Four key areas of differences were found between personnel management and HRM. These include level of formal qualifications, involvement in strategic planning processes, involved and authority devolved to line managers or supervisors, and adoption of sophisticated “high commitment” practices associated with HRM. Thornhill and Saunders (1998) examined the implications of the devolvement of human resource responsibilities to line managers. One of the significant changes in the management of human resources has been the increased role of line managers at all levels. HRM was recognized as a distinctive approach and not just an alternative title for personnel management. The importance of line managers increased as organizations realized that they formed the link between the management of human resources and the strategic direction of the organization as decided by the top management. The devolution of responsibility to line managers enabled personnel decisions to be tailored to suit circumstances in local business units (Bond & McCracken, 2006). It enabled quicker decision-making while improving employee relations and reducing costs. Besides, certain issues were too complex for the top management to handle and which could be better handled by the line mangers. The involvement of the line managers resulted in motivating employees and having effective control as they were in constant touch with the subordinates (Budhwar, 2000). Another major advantage of this practice was that middle managers got the opportunity to practice decision-making skills, thereby preparing them to be senior managers. The devolution of responsibilities and authority to the line managers had other advantages such as freeing up the HR staff to take up more strategic roles (Bond & McCracken, 2006). The HRM approach also led to the strategic integration with the corporate strategy. However, there is little empirical evidence to highlight the success of these practices. The ‘top managers’ in an organization that practiced HRM offered transformational leadership while under personnel management practices transactional leadership was prevalent (Thornhill & Saunders). The evolution of people management from personnel management to HRM is based on the assumption that human resource is not another resource but human capital that has to be valued and nurtured. Since they make a difference to the organization they have to be managed strategically. The personnel specialists could not manage this because they concentrate on formulating strategy and are not concerned with what happens at the operational level (Bond &McCracken). As the competitive environment became intense and government deregulation became the practice, efficiency pressures demanded greater focus on the management of employees to meet the desired level of quality of goods and services. Under the circumstances the personnel specialists failed to achieve results which led to the importance of HRM (Cunningham & Hyman, 1999). The personnel function did not enjoy the credibility, status, security, independence and stability among its management peers. Their role was restricted to adjusting to external and internal stimuli. The development of HRM led to flexibility at the workplace which encompasses having a people-centred approach. It involves being anti-hierarchical, persuasive, motivating, empowering and even considering the employees as equal stakeholders (Caldwell, 2004). While the HRM principle believes in a fast, flat and flexible organization, Caldwell contends that flexibility is merely in theory that organizations are more responsive to change. Marlow (1997) even suggests that HR initiatives are aimed at raising employee productivity without the return of rewards. In fact the destruction of the traditional-style of industrial relations and the lack of industrial policy has led to new-Fordism. While organizations claim to be flexible in their approach, they have not supported their initiatives by training and development, without which these practices become unsustainable. Moreover, flexibility is reduced in involving the line managers in people management. The line managers do not see HRM as a key priority and tend to revert to the old employment patterns whereas the HR personnel are more familiar with the latest trends and employment options (Mayne, Tregaskis & Brewster, 1996). HRM practices have also given rise to flexi pay or performance-related-pay (PRP) with a view to optimize human resources in the face of intense competition. This practice was expected to increase employee motivation but organizations do not always meet with success (Lewis, 1998). However, exerting pressure on employees for enhanced performance can alienate them from commitment (Foley, Maxwell & McGillivray, 1999). It can even force them to resort to unethical practices when they are pressurized to achieve results. Emotional intelligence is also a part of the new HRM practices which assumes that an individual must have the capability to recognize their own feelings and those of others, which would help to manage themselves and others and maintain relationships (Armstrong). To be sensitive to others can be developed through training but organizations lack in training and development of their employees. It is increasingly being recognized that people and job do not fit together and this can be resolved with HRM policies. Teo and Crawford (2005) believe that line managers should also be involved in the selection and recruitment of people because they are the ones who know the job requirements and without their involvement the selection may not be what the firm requires. If the people and job do not match then employee commitment and motivation would be lacking. However, HRM practices can impact the organizational performance only when all functions are coordinated in a single program. The functions such as recruitment and selection, performance appraisal, training and development have to be integrated and coordinated (Torrington & Holden, 1992). For instance, training should coordinate with recruitment and recruitment with remuneration. In a study of tech firms in China it has been found that HRM practices do have an impact on employee performance and productivity while also helping to keep the people coherent (Chang & Chen 2002). This also reduced employee turnover. It can thus be concluded that evolution of personnel management to HRM was a natural process as competition intensified and the business environment changed. However the success of all the new “high-commitment” practices such as involvement of line managers, performance-related-pay, employee commitment, using emotional intelligence for recruitment and selection, and flexible practices in HR is debatable. Nevertheless, organizations have been employing techniques such as people qualification and job match, and motivation techniques and to some extent results are evident as in the case of the Chinese tech firms. The personnel specialists may not have enjoyed the status and stability or credibility as the HRM specialists do, but the overall success of HRM depends upon how well the functions are integrated. References Alagse. (n.d.) Human resource management and personnel management - shift in focus, accessed 05 August 2011 from http://www.alagse.com/hr/hr2.php Armstrong, M. (2000) The name has changed but has the game remained the same? Employee Relations, 22 (6), pp. 576-593. Bond, S. & McCracken, M. (2006) The importance of training in operationalising HR policy, Journal of European Industrial Training, 29 (3), pp. 246-260 Budhwar, P.S. (2000) Evaluating levels of strategic integration and devolvement of human resource management in UK, Personnel Review, 29 (2). pp 141-161 Caldwell, R. (2002) A change of name or a change of identity? Personnel Review, 31 (6) pp. 693-709 Caldwell, R. (2004) Rhetoric, facts and self-fulfilling prophecies: exploring practitioners’ perceptions of progress in implementing HRM, Industrial Relations Journal, 35 (3) Chang, P. & Chen, W. (2002) The effect of human resource management practices on firm performance: Empirical Evidence from High Tech firms in China. International Journal of Management, 19 (4), pp. 622-631. Cunnigham, I. & Hyman, J. (1999) Devolving human resource responsibilities to the line, Personnel Review, 28 (1/2), pp. 9-27 Foley, M. Maxwell, G. & McGillivray, D. (1999) The UK context of workplace empowerment, Participation & Empowerment: An International Journal, 7 (6), pp. 163-177 Lewis, P.(1998) Managing performance-related pay based on evidence from the financial services sector, HUMAN RESOURCE MANAGEMENT JOURNAL, 8 (2), pp 66-77 Marlow, S. (1997) The employment environment and smaller firms, International Journal of Entrepreneurial Behaviour & Research, 3 (3), pp. 143-148 Mayne, L. Tregaskis, O. & Brewster, C. (1996) A comparative analysis of the link between flexibility and HRM strategy, Employee Relations, 18 (3), pp. 5-24. Teo, T.T.S. & Crawford, J. (2005) Indicators of Strategic HRM Effectiveness: A Case Study of an Australian Public Sector Agency during Commercialization, Public Personnel Management, 34 (1), pp. 1-16. Thornhill, A. & Saunders, M.N.K. (1998) What if line managers don’t realize they’re responsible for HR? Personnel Review, 27 (6), pp. 460-476, Torrington, D. & Holden, L. (1992) Human Resource Management and the International Challenge of Change, Personnel Review, 21 (2), pp. 1-19. Read More