HUMAN RESOURCE MANAGEMENT
LO.1 Personnel and HR management:
1.1 Difference between personnel management and HR management:
Armstrong (2012) observed that both personnel management and human resource management are different dimensions of people management. Personnel management came into existence with the evolution of the employee relations through trade unions while and human resource management was coined later on. People management is the essence in both and focused on more detailed aspects such as age, culture, education, experience, ethics of the employees on an individual basis. In the words of Garavan et al. (2008), the main difference between human resource management and personnel management is that human resource management aims to align the employee objectives with the organisational objectives. On the other hand, personnel management is used to develop common objectives for employee base and unite the employees against management regardless of their differences in opinion. In short personnel management is used for managing the employees and has evolved into HRM. HRM is advanced area where knowledge, skills and abilities of the employees are measured for productivity.
The role of both these managerial aspects also differs while HRM is a strategic function, personnel management is treated as a secondary function. Jaya and Reddy (2011) stated that in personnel management employees are treated as an economic means of acquiring services in exchange of remunerations while HRM considers employees as economic, psychological and social aspects.
1.2 Function of HRM in contributing organisational purposes:
Businesses are created for attaining specific objectives that would lead to revenue generation, profit maximisation and brand recognition. Most of business objectives are related to divest or invest for growth in financial or market development terms (Garavan et al. 2008). The ability of the organisation to attain these objectives rapidly depends on defining a vision, check its performance continuously by involving its able workforce.
Aswathappa (2009) mentioned that employees working collectively are responsible for the growth or failure of an organisation. HRM also develops strategies for developing employee skillset; improve the knowledge base through training and development coupled with attractive reward strategies. Becker and Gerhart (2009) acknowledged that HRM measures the capability of the workforce which aids in the formulation of strategic objectives and goals. Its organisational structure, management functions, leadership style and work culture help employees to adapt to work environment of the firm.