personnel managent

Personnel and Human Resources

The differences and the similarities

Since the 1980 's , the term human resources ' has replaced personnel ' in the organizational structure of most businesses Companies , competing for skilled employees , are striving to at least appear to have employee-friendly policies . Some question whether the difference is a substantive one or rather just an exercise in semantics .Proponents of human resources management (HRM ) models cite distinct differences from the personnel models of the past . For a company fully committed to an HRM approach , there do appear to be some significant

differences . HRM implies a long-term , employee-centered strategic structure . Employee issues such as trust and loyalty are , for the first time , addressed within HRM models . The degree of difference from past practices depends upon the level of commitment and leadership from the corporation and the specific HRM model that is used

Personnel Management

Personnel management arose as a field during the Industrial Revolution of the late 1700 's . Efficient factory operation required a highly organized structure of hiring and retaining employees . The emphasis , at the time , was on maintaining the highest degree of control over the employees , in effect making them hostages to the company

Personnel management evolved over the succeeding centuries , due to the influences of employee unions , changes in philosophy and the evolution of the business model . As companies grew ever larger and technology advanced , the role of the personnel manager was expanded . Recruiting training and book keeping all came under the auspices of the personnel manager . The employee was typically trained to be a specialist in one job only . The job of the personnel manager was to focus single-mindedly on the profitability of the business . From the origins of the personnel management function , compliance was seen as a necessary tool

By the late twentieth century , the role of the personnel department was beginning to change . Even without adopting the HRM structure , some aspects of HRM have surely bled into personnel management . Still , the term personnel ' has fallen into disfavor with the emergence of HRM theories . Some business have adopted the HRM term merely for the sake of appearance . Others have sought a fundamental change in approach and a corresponding set of new policies

Human Resource Management

The roots of the current human resource management (HRM ) approach were planted in the research of the 1930 's and `40 's (Legge .Studies made a convincing argument that a contented employee is a more productive one The individuality of employee 's needs began to be considered for the first time . The importance of employee loyalty was now documented although many personnel managers probably already knew this innately

Definitions of Human Resources Management are varied but most contain many common elements . In Human Resources Management (1999 , Carter McNamara describes some of the various elements

The Human Resources Management (HRM ) function includes a variety

of activities , and key among them is deciding what staffing needs you

have .recruiting and training the best employees , ensuring that they

are high performers .ensuring (practices ) conform to various regulations

(p . 1

These duties are in addition to managing employee compensation and records . In some companies there is another division within HRM that provides additional activities , career services and further training

HRM is itself divided into a number of different formats . Hard and soft HRM describe the degree in which the policies are human-centered . Tight and loose HRM represent the degree of to which the managers will be proactive in employee management . Open and closed HRM describe how flexible the HR structure will be (Beardwell

Despite humanistic influences , the switch to HRM was not driven entirely by benevolence . The ultimate goal is to manage the workers in such a way that they will be the most efficient and effective . In this goal , they are similar to the traditional personnel structure

As the numbers of highly educated workers continued to rise in the 1980 's , a more competitive hiring market emerged . Businesses , in turn realised that to gain a competitive advantage a more humanistic approach to employees would be required . The change in terms is to recognise that the worker is in fact a resource , not just a lever of production

A key aspect to HRM is the adoption of a strategic approach to hiring and maintaining a workforce . This includes attention to the various needs of the employees . Along these lines , managers are to be intimately involved with workers on the line . They assess performance , head off potential problems and stay attuned to employee morale

Legge , Price and others stress the humanistic nature of the HRM approach . Valuing the talents and contributions of each employee is paramount to the future success of the business . In Human Resource Management in a Business Context , Price defines the mission of HRM in this way

A philosophy of people management based on the belief that human

resources are uniquely important in sustained business success .HRM

is aimed at recruiting capable , flexible and committed people , managing

and rewarding their performance and developing key competencies

(2003 ,

.32

Are they really different

For many companies , the HRM outlook is not particularly new . Many of the actions associated with HRM were already being performed while the term personnel ' was still being used . HRM is a term of art for some and a specific change for others . Generally speaking , it is a term intended to refocus management on the human issues of employment . At the same time it presents a more attractive face of the company for potential hires It is a change in mindset . The degree to which this results in substantive changes is up to the individual company

The HR department , as with the Personnel department of the past , has the profitability of the company as its primary concern . The theoretical framework in which they operate is different , however . HRM focuses on each individual employee needs . Personnel management views all the employees as a single entity . This difference in focus can , potentially lead to profound changes within the organisation

In to implement such changes , cohesive and integrated strategies must be created . The business can then seek the employee buy-in ' that is essential for making effectual change . Is HRM different from personnel management ? The answer is : It can be . In terms of theory , it certainly is different . In practice , HRM can be merely a term of art , or it can signify a commitment between corporation and employee that is distinct from the personnel structure of the past . HRM is not a brand new concept . It does , however , represent an evolution of the business model

Sources

Armstrong , M (2006 . Handbook of Human Resource Management Practice (back

London : Kogen Page , Ltd

Beardwell , Ian (2003 . Human Resource Management : a contemporary approach

London : FT Prentice Hall

Carrell , M (1986 . Personnel : human resource management . Columbus Ohio , USA

Merrill Pub . Co

HRM Guide (2006 . Defining Human Resource Management . Retrieved 8 /11 /2006 from

HYPERLINK "http /www .hrmguide .co .uk /introduction_to_hrm /defining-hrm .htm http /www .hrmguide .co .uk /introduction_to_hrm /defining-hrm .htm

Legge , K (2005 . Human Resource Management : Rhetorics and Realities (anniversary

edition . Basingstoke : MacMillan

McNamara , C (1999 . Human Resources Management . Retrieve 8 /11 /2006 from

HYPERLINK "http /www .managementhelp .org /hr_mgmnt /hr_mgmnt .htm http /www .managementhelp .org /hr_mgmnt /hr_mgmnt .htm

Price , A (2003 . Human Resource Management in a Business Context (2nd Ed . London

Thomson Business Press

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