Comparing personnel management and human resource management
Distinguish between 'personnel management' and 'human resource management' and discuss the historical development and changing context in which they operate?Â
Personnel Management: - Â
Â PM is basically an administrative record functioning at operational level. PM attempts to maintain fair terms and conditions of employment, while at the same time efficiently managing personnel activities for individual departments and the activities which result ultimately in achieving organizational success.
Human Resource Management:-
HRM is concerned with carrying out the same functional activities conventionally performed by the personnel function such as HR Planning, Job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development but it performs these functions in a qualitatively distinct way as compared with personnel management.
History of Human Resource Management:-Â
The concept and name of human resource management has been changed many times throughout the history. The changes were mostly because to the change in social and economic activities throughout the history. Human resource management came to birth when industrial revolution took place in the year 1833 then the industrialist incepted to increase their production and they raised the burden of work on the employees by having 60 hours a week. The workers became fed up of this circumstance and they took decision among themselves to find out the solution for this problem. After this workers were losing interest in their work and they divided in different groups and all this caused less production. The industrialists came to know this, they straggle to satisfy the workers but however the workers were not happy with that and formed their "Trade Union". Now the industrialists gave full authority to one manager. In spite of this the problems remained constant because the manager was not able to handle their problems then the workers went to strike for their rights.Â Â This led to the formation of personnel management. Personal management was working only when clashes arise. PM was dealing on bargaining, so this system also failed to motivate the employees, in addition PM was not able to take full control of it.
The combination of wartime production demands, government wage price controls and the need to negotiate cooperative agreements forced many companies to expand their personnel staffs and control their HR practices. Such basic HR practices as job classification systems, hiring standards, uniform pay grades and written disciplinary procedures were developed for the first time by many companies. Â
Another early donor to HRM was called the human relations movement. Two researchers, Elton Mayo and Fritz Roethlisberger included human factors into work. This movement began as a result of a chain of studies conducted at the Hawthorne facility of Western Electric in Chicago between 1924 and 1933. The purpose of the study was to conclude the effects of illumination on workers and their output. The studies pointed out the significance of the social interaction and work group on output and satisfaction. The human relations movement eventually around the mind 1960s became a branch and a contributor to the field of organizational behavior; because of this progress all the industrialists and peoples came to know that human beings are the most valuable assets of an organization. Â
Human Resource Management gets more into practice as people are acknowledging from HRD and HR practices and these departments are fulfilling all the requirements of the employees, are managing all human resource and are giving full rights to every one. Now in all successful organizations there are HRM departments
Shifting from Personnel Management to HRM
The significant role of HRM is reflected in the transformation of the personnel management purpose from one of concentrating on employee welfare to one of managing people in a way which matches organizational and individual goals and providing employees with intrinsic and extrinsic reward. Therefore today Human Resource Management is historically known as personal management which deals with official system for the management of the people within an organization.
Different Stages of shifting from Personnel Management to HRM:
First stage: - HRM earlier react in an even way to problems as they arise. Effective HRM seeks to connection HRM issues to the largely strategy of the organization with the most effective HRM policies and practices included into such corporate policies and strategies to strengthen or transform an organization's culture. Integration is required in two senses (1) integrating HRM issues in an organization's strategic planning (2) securing the acceptance and addition of a HRM view in the decisions of line managers. The HRM policy in worth of the various functions for example training and recruitment etc should be internally reliable
Second stage:-Â structure powerful cultures is a way of promoting demanding organizational goals in that a strong culture is intended at uniting employees through a shared set of managerially authorized values such as excellenceÂ service and innovation etc.
However there can be anxious between a strong organizational culture and the need to change situations and to be elastic particularly in the highly competitive and fast changing environment in which employers have to work on daily basis. Speedy change demanded by the market is sometimes tough in an organization with a strong culture.Â
Third stage: The mind set that people are a changeable cost is in effectual HRM which is replaced by the view that people are a resource and that as community capital it can be developed and can add to competitive advantage. Mostly it is accepted that competitive advantage is gained through well educated and trained motivated and dedicated employees at all levels. This recognition is now almost considered worldwide and important of management training and growth are the middle pillars of HRM. Â
Fourth stage: The view that the interests of employees and management or shareholders are different and confliction though considerably true in the past as organization which practices effective human resource management seeks to classify and promote a commonality of interests. important examples are training which enhances employment security and high earning ability for employees while at the same time rising the employee's value to the enterprise goals of healthier productivity and performance pay systems which increase earnings without important labor cost increases and which at the same time endorse higher performance levels goal setting through two way communication which establishes joined goals and objectives and which provides basic rewards to the employee through a participatory process.Â
Fifth stage: Top to down communication tied with restricted information flow to keep power within the control of management give a way for sharing of information and knowledge. This transform facilitates the creation of faith and commitment and makes knowledge more fruitful. Control from the top is in successful HRM being replaced by increasing employee contribution and policies the ways in which the larger Japanese enterprises have installed participatory schemes and introduced information distribution and two way communication systems are instructive in this view. In enterprises that tend to have company missions and where there are fundamental values that shape their corporate culture HRM becomes a part of the strategy to attain their objectives. In some types of enterprises such as one in which permanent technological change takes place the goal of successfully managing change at short intervals often requires employee collaboration through emphasis on communication and involvement.
Shifting of personnel management to HRM took place in three stages:Â
1) Records and Administration
2) Accountability Regulations
3) Competitive Advantage
1) Records and Administration
In first stage the main activities which were taken out by personnel department were plan Company picnics setting up vacations enroll workers for health are exposure planning retirement parties increase diverse workforce and contain health care cost.
2) Accountability Regulations
During this phase most important framework of rules and regulations started rising in the company. In 1970 the duty of the HR manger was to keep their organizations out of court. In the 1980 HR mangers had to address staffing costs linked to mergers and acquisition and downsize.Â The economic issues associated to an increasingly worldwide and completive workplace characterize the 1990.
3) Competitive Advantage
The aim of this shift stage is from just securing fulfillment to the more determined one of winning promise. The employee resource therefore becomes worth investing in and training and development thus assume a top profile. These initiatives are linked with or even predicated upon a propensity to shift from a collective orientation to the management of the workforce to a distinctive one. Â
P 2: - Assess the role, tasks and activities of the human resource practitioner
Human resource management plays a vital role in the success of every organization. Human resource management is concerned with the development and implementation of human resource strategies which are integrated with corporate strategies to ensure that the culture values structure of the organization quality motivation and commitment of its members contribute fully for the achievement of organizational goals. In big organizations it plays a very important and positive role in its success however it is difficult to deal with all the activities. HRM makes the quality of work life desirable in the organization.Â
ROLES AND TASKS OF HR Manager
HR manager plays an important role in developing and maintaining polices.
HR manager should motivate employees to make them fruitful for the organization.
HR manager should conduct recruitment process effectively and efficiently, so that the skillful people could hire for the organization.
HR manger is responsible for increasing the skills of the employees to make their performance better.
HR manager should make the standards of performance so that the employee's performance can be judged.
HR is responsible to make a good environment in which the employees can work effectively and efficiently.
HR manager should keep aware the employees about new policies of the organization and guide them.
HR manager should develop a leading edge for the effective management of the people to maintain competitive advantage.
HR manager should recommend the strategic direction for employees and ensure its implementation.
HR manager should co-ordinate the design, implementation and administration of human resource policies and activities to ensure the availability and effective utilization of human resources for meeting the company's objectives.
An Ideal HR Manager
HR managers are very important for any organization because they makes polices, develop strategies directing and coordinating human resource management. The most important responsibility of HR manager is interviewing and recruiting candidates.
HR manager of MOBILINK should develop its people to work hard for higher standards.
HR manager of MOBILINK have to make recruitments of best talent because humans are the basic tool for having competitive edge in the market for most of the organizations.
They should analyze the performance level of the employees and if they find it below standards so they have to motivate them and give them training of developing their skills to be productive for the MOBILINK organization.
HR manager have to make good relationship with different departments like marketing, operation and finance and make himself aware of new updates to to prevent miscommunication.
P3:- Evaluate the role and responsibilities of line managers in human resource practices?
The Different roles & Responsibility of line manager
Line manager plays an important role in the success of HR manager. Line manager should deliver the task and responsibilities on time to the senior management. Keep informing the management about the progress in the organization. Line manager should defend the company strategy or management strategy when talking to the work group. Clear appropriate picture to the work group to keep them informed of the rules and polices and have to look out the ways to become more efficient. Line manager should set tasks and standards for the employees. Line manager should also have to provide training and development to the employees when needed. Line manager should involve group people in decision making and to understand their needs and to motivate them. Should also provide reasons for decisions and represent the view and ideas of work force to higher authorities. Line manager should maintain the good environment. Line manager have to take the following points in mind in order to make their activities better.Â
Line manager should be a positive role model
Line manager should be honest to others and help the employees and give guidance about their job.
Line manager should have to speak against injustice.
Line manager should be self confident.
M1:- Discuss how the concepts of PM and HRM are practiced in an organization?
We have selected MOBILINK as an organization. The HR mission statement of MOBILINK is given as
To lead the organization in enhancing its human capital and creating a winning environment where everyone enjoys contributing to the best of ones ability.
HR Practices and personnel management at Mobilink:
These are few of the HR and personnel management practices
Training & Development
Performance Appraisal SystemÂ
Occupational Health and Safety measuresÂ
Career Planning and DevelopmentÂ
Research and Development
Now after the emergence of new telecom companies in the market the market becomes more competitive and employees are less loyal to the company. Whenever they get any better opportunity than the existing one they go for that which is their right. Due to this fact MOBILINK do not have any formal strategy for succession planning. They do consider the people from inside but proper success plan is not practiced in MOBILINK these days.
But now due to market trends they transformed new strategies according to the management that it is not useful to invest in the employee at a larger extent. They do develop their employees for their career planning but no formal success planning is practiced.
Recruitment and Selection:
In MOBILINK the requirement for the new job is communicated by the respective managers to the HR department. After that the HR department looks for the possibilities of internal and external recruitment.
In MOBILINK internal recruitment is done the higher grades like managers and directors. When there is a vacancy the HR department views the past performance of the employees working at lower levels and chooses the right one to promote him/her to that position. But if there is a vacancy for managerial position and none of the suitable employee is available with in the organization then external recruitment is carried out.
In external recruitment the duty of line manager is to prepare a form for the job about their need in the organization. Then the role profile of that job is dent to functional director by line manager after his approval it is forward to the HR department. HR manager confirms the availability of the budget required and the cost of the advertisement for that job. After than by forecasting budget along with job profile sent to HR director for his final approval.
Line and HR manager again sit together for short listing the people and the following criteria is adopt by them.
Quality of earlier schooling
Extra curricular activities
The HR department then issue letters to the short listed candidates along with blank application forms by time date and venue for the preliminary interview and candidates is asked to bring along completed application forms. A two-member panel of HR and line management carries out the interviews managerial functional and supervisory skills. After clearing the preliminary interviews, people apply for different jobs are tested in different ways by a panel of cross functional assessors in the case of management selection.
Rational decision making
The HR department is responsible for assessments training details o rumination packages and conditions of services. Prepare letter and finalize other documents.
M2: Make an effective judgment about PM and line manager responsibilities in studied organization.
HR helps LINE manager in offering them coaching creating managers role plays for meetings, and providing them toolkits to refer them. In MOBILINK Peshawar they do not have formal HR department and final recruitments are done at ISLAMABD head office. They do have informal set up for hiring internees and also perform the responsibilities of HR manager in coordination with other major departments.
In MOBILINK Islamabad head office they have formal HR setups for making decisions for other regions as well.
Strategies are there in MOBILINK for HR manager to provide help to LINE manager in performing their job.
HR manager clarify the standards, expectations, performance goals and ask line boss for his feed back regularly.
HR manager of MOBILINK look ways for line manager to get him out of jams and prevent him for making serious errors.
There may be some conflicts between the priorities of HR and of line management, in this situation a manager has to work hard for identifying issues and makes alternative for addressing it.
HR manager when presenting bad news, try to bundle it with good news also but be careful to avoid letting problems drag for extended periods of time waiting on good news to happen.
Line managers and supervisors are responsible for enforcing and promoting the work environment of dignity. They must take every action to prevent the unsuitable behavior. Line managers and HR managers are expected to communicate clearly to their staff members about their policies of harassment, discipline etc.
MOBILINK is considering having the best HR in PAKISTAN and they have retained this edge. According to the judgment the HR department of MOBILINK is achieving their desired results. They have a good relationship with the different departments like finance, marketing etc.
D1: Evaluate the roles and responsibilities of HR manager and line manager in the organization as compared to their ideal role.
The HR manager of MOBILINK is performing well against the ideal situation. HR manager is good in communication and makes people understand that what he is saying. Manager also has the knowledge of principles and procedure of recruitment and also effective and efficient in providing the services to customers and personnel. HR manager is a good speaker and also have the ability to recognize what the other person is saying and also have strong working relationship internally and externally. HR manager is pleasant with other employees on the job and displaying a cooperative attitude.
The standard for the ideal manager are
The person that the manager is hiring for the job has to be capable of doing work without the close supervision of the boss.
Confidence and personality plays important role in the abilities of manager to communicate. Manager should be capable of clear communication with their fellow manager's customers and employees.
GREAT CUSTOMER SERVICE SKILLS
Manager should be excellent in dealing with clients and customers. Manager should have the skills to make the difficult customer happy. So in that way the organization can hold their customer and business can grow.
Manager should be capable of handling conflict in the organization. Manager need to be calm and able to identify and listening issues discuss it resolve it and followed up. It's important for a follow up check to ensure there are no further problems.
Manager need to focus on a specific goal and able to assign the tasks to the employees.
Managers responsible for ensuring the tasks assignments and dead line needed to be met and hire appropriate people and handle the situation which tends to be profitable in the end.
KNOWLEDGE ABOUT ORGANISATION
A manager should have all the knowledge about the organization so that he/she would be capable of giving answers to their clients customers and staff members.
Managers should have strong leadership skills. Managers are the leaders in work place. Manager need to be a good speaker and assigning tasks. Manager should also be able of handling group of people and should lead the group or team in the right direction.
D2: Suggest recommendations for realistic improvement against the defined
Human resource is one of the most exciting and challenging departments of the organizations. People are very important in any organization. MOBILINK has a strong HR system and therefore we did not found many drawbacks in their HR practices. There are some but it can be better by little effort.
Following are some recommendations based upon our analysis.
We observed that employees are not aware of their depth policies o the employee are lacking in the knowledge about policies which is the responsibility of HR manager to aware them.
MOBILINK HR should have to monitoring and measuring employee s performance.
HR lacks in terms of career planning and development so MOBILINK has to recognize this function in their policy statement.
MOBILINK should have to increase in its recruitment sources so that they will not loose the potential candidates.
HR manager should have to make clear communication with their lower staff which in terms makes the organization beneficial.
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