Differences Between Personnel Management And Human Resource Business Essay

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Human Resource Management differs from Personnel Management both in scope and orientation. HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society. It is emerging as a distinct philosophy of management aiming at policies that promote mutually- mutual goals, mutual respect, mutual rewards and mutual responsibilities. The belief is that policies of mutuality will elicit commitment which, in turn, will yield both better economic performance and greater human resource development. Thought a distinct philosophy, HRM cannot be treated in isolation. It is being integrated into the overall strategic management of business.

Personnel Management has a limited scope and an inverted orientation. It viewed labour as a tool, the behaviour of which could not be manipulated for the benefit of the organisation and replaced when it was worn-out. The personnel department itself was not treated with respect. It was filled with not-very-productive employees whose services could be spared with minimal damage to the organisation's ongoing operations. Personnel function was treated as a routine activity meant to hire new employees and to maintain personnel records. It was never considered a part of strategic management of business.



Personnel Management

Human Resource Management


Key relations

Labour Management







Speed of decision




Management role


Transformational leadership






Prized management skilled





Separate, marginal task

Integrated, key task



Job evaluation(fixed grades)

Performance related



Separately negotiated



Labour Management

Collective-bargaining contracts

Individual contracts


Job categories and grades




Job design

Division of labour

Team work


Conflict handling

Reach temporary truce

Manage climate and culture


Training development

Controlled access to courses

Learning companies


Focus on attention for interventions

Personnel procedures



Respect for employees

Labour is treated as a tool which is expendable and replaceable

People are treated as assets to be used for the benefit of an organisation, its employees and the society as a whole


Shared interests

Interests of the organisation are uppermost

Mutuality of interest



Precedes HRM

Latest in the evolution of the subject

Task 2

Recruitment, Selection and Retention


Recruitment is the process of searching for prospective candidates and encouraging them to apply for a particular job or jobs in an organisation. Its purpose is to provide a sufficiently large group of eligible candidates in order to have wide choice for the selection of the most suitable candidates. There are two sources of recruitment, internal and external.

Internal Source of Recruitment

Internal source of recruitment include personnel already on the payroll of the organisation. Recruitment out of internal sources refers to the recruitment for jobs from within the organisation. It includes:

Promotion: It refers to moving the employees to positions of higher authority and responsibility.

Transfer: It refers to moving the employees to positions in other work units. It may involve a promotion or demotion or no change in the responsibility.

Re-employment of ex-employees: It refers to employing the employees who have left the organisation. It may be on a temporary or permanent basis.

External Sources of Recruitment

External sources of recruitment include personnel outside the organisation. Recruitment out of external sources refers to the recruitment of candidates outside the organisation. It includes:

a) Advertising: The organisation advertises its vacancies through newspapers, trade, journals, professional journals, magazines, radio, television, internet on computers. The content and design of the advertisement should be prepared in such a manner that unsuitable candidates may not apply and suitable candidates should have courage to apply.

b) Employment Agencies: The organisation intimates the employment agencies about the number, nature, type of vacancies. The employment exchanges provide the list of candidates to the organisation.

c) Employee Referrals: The candidates who are recommended by an employee of an organisation are also a good source of external recruitment. Some companies maintain a register of former employees whose record was good to contact them when there are new job openings for which they are qualified. This method of recruitment, however, suffers from a serious defect that it encourages nepotism, i.e. Persons of one's community or caste are employed, who may or may not be fit for the job.

d) Schools, colleges and professional institutions: These offer opportunities for recruiting their students. They will also have separate placement cell where the bio data and other particulars of the students are available. The prospective employers can review credentials and interview candidates for management trainees or probationers. This is an excellent source of potential employees for entry-level positions in the organisations.

f) Professional organisations or recruiting firms or executive recruiters: Maintain complete records about employed executives. These firms are looked upon as head hunters, raiders and pirates by organizations may employ "executive search firms" to help them find talent. These consulting firms recommend persons of high calibre for managerial, marketing and production engineers' posts.

g) Indoctrination seminars for colleges are arranged to discuss the problem of companies and employees. Professors are invited to take part of these seminars. Visits to plants are arranged so that professors may be favourably impressed. They may speak well of a company and help it in getting the required personnel.

Set 2 MB0027

h) Unconsolidated applications: for positions in which large numbers of candidates are not available from other sources, the companies may gain keeping files of applications received from candidates who make direct enquiries about the possible vacancies on their own, or may send unsolicited applications. This would be helpful to firms for future vacancies.

i) Voluntary Organisations: Such as private clubs, social organisations might also provide employees - handicaps, widowed or married women, old persons, retired hands etc. in response to advertisements.

j) Computer Data Banks: when a company desires a particular type of employees, job specifications and requirements are fed to computers, where they are matched against data stored in. This method is very useful in identifying candidates for hard-t-fit positions which calls for unusual combinations of skills.

Skills and behaviours

Following are the positions /or work levels and their required skills for the new store:

• Level 1 - Frontline jobs:- These are the employees who will be working directly with customers. There job will be like filling shelves with stock.

• Level 2 - Leading the team of employees, these are employees who have the ability to manage resources, set targets, to manage and motivate their respective team.

• Level 3 - Operating Unit. It requires skills like management skills, including planning, target setting and reporting.


Selection is the process of discovering the most suitable candidate for filling the vacant position. That is why recruitment, which aims at attracting the largest number of candidates is called Positive function and selection, which aims at selecting the best and rejecting all other is called a Negative function. To fill the vacant position with the right person, a firm must follow a scientific selection procedure, thereby enabling it to test the candidate thoroughly both mentally as well as physically including medically inline with the job requirements. A scientific selection procedure includes the following steps:

Screening of Applications: The objective of this step is to thoroughly examine all the applications that have been received through various recruitment sources in order to separate such applications that do not possess the requisite qualifications. Depending upon the response received by the firm and its management attitude such incomplete applications may be rejected or some applicants may be given the opportunity to furnish further required details.

Primary Interview: The applicants who possess the requisite qualification as desired by the company should then be called for a preliminary interview. The objective of this interview is to find out if the applicant is apparently suitable for that kind of job for which vacancy exists. This interview is quite short, testing mainly the appearance and fluency in speech etc of the candidates.

Sending Application Blank: Those candidates who apparently qualify for the position are then supplied with the application blanks, with a view to know the detailed information about the candidates in a uniform way.

Employment Testing: It is a very important part of the selection procedure and has become a well established practice in the selection of employees. These tests are of two type, Trade tests and Psychological tests. Trade tests are conducted to measure and discover the knowledge and experience of the applicant pertaining to the job. Psychological tests are conducted to measure the psychological characteristics of the candidates.

Interviewing: After a candidate has passes through above hurdles successfully, he is called for an interview. It is an individual tool as a means of evaluating such factors as poise or appearance, establishment of friendly relationship between applicant and the firm and obtaining additional information or getting clarification on information already on the application blank. The purpose of the interview is to find out the candidate's mental and social make-up and to know whether the qualities possessed by him make suitable for a job in the firm.

Checking References: A check for the reference is the next step. This may relate to checking with the references regarding the candidate's character, his education, previous experience etc. However, since the experience shows that the referees generally send bias opinion, care should be taken in viewing them, and efforts should be made to check with the referees either through personal interview or telephones.

Medical Examination: The next step in selection process is to send the selected candidate for medical examination. The basic purpose of this examination is to determine the fitness and not necessarily to reject a candidate altogether on this basis only. Further, the examination is beneficial both to the candidate and his employees.

Final Selection: The next step relates with those candidates who have successfully passed through the above discussed hurdles. In this step, the candidate is finally selected for the job.

Induction: The scientific selection procedure does not end with making the final selection but also includes induction in it, i.e. orienting a new employee to the organisation, to his fellow employees and supervisors. In other words, under this step an attempt is made to introduce the newly selected employee to the history and operations of an enterprise, its position and image in the market, location of various facilities, lines of promotion open to the employee etc.


Selection is along process, commencing from the preliminary interview of the applicants and ending with the contract of employment.

The following chart gives an idea about selection process: -

Checking Reference

External Environment


Final Selection

Medical Examination


Employment Testing

Primary Interview

Internal Environment

Rejected Application


Retention is important because:

To make good people stay in the organization.

Talented people are always in demand.

Prevents continuous hiring of new employees and loosing the old employees.

In bringing stability to the organisation.

Provides a learning culture for the new employees.

It helps creating goodwill of the organisation in the market. An organisation whose attrition rate is high is never a preferred employer.

What Makes Employee Leave?

The most common reasons can be:

Job is not what the employee expected to be

Job and person mismatch:

No growth opportunities

Lack of appreciation

Lack of trust and support in coworkers, seniors and management

Stress from overwork and work life imbalance


New job offer

Employee Retention Strategies

Following are some of the key talent retention strategies:

Identify Star Performers:

Identify the top 20% star performers who contribute to 80% growth of the organization.

Retaining star employees is a continuous struggle because top performers will always be in demand.

Quitting by high performers constitutes "Dysfunctional Turnover" that can pose a large threat to business success.

If you do not embrace your stars, someone else will.

Let them know that you want to keep them:

Organizations do not tell talented people their worth for the organization with the fear of alienating the average performers.

To retain top talent in the future, executive will need to clearly identify, develop involve and recognize key people.

Employee Engagement:

Provide work motivation.

Task force could be constituted to examine the sources of attrition.

When employee are adequately engaged and adequate social and financial security is provided retention goes up on its own.

Adequate and Competitive Pay Packages:

Besides best performing employees, even mediocre employees who benefit from salary hikes of 30% leave their organizations.

Organizations need to pay hygiene-level salaries. It is the cost of doing and staying in business.

Work-Life Balance:

Work life balance has important consequences for employee attitudes towards their organizations as well as for the lives of employees.

Employers should realize their role in helping their employees strike a balance in their lives, before they burn out.

Providing Recognition, Reward and Rejoice:

Providing recognition helps to retain key talent and also yields great feedback and generate ideas for talent retention.

Companies are creating the positions of CFO i.e. Chief Fun Officer for arranging these fun filled activities.

Careers Counselors in the Office:

The role of career counselors is to work independently to find people for the right role for the organization which finally turns out to be a good retention tool.

A career counselor helps employees on the professional and personal front, and find a work-life balance.

Take a NAP:

Some companies have devised a new concept to relax their employees on the job by providing napping facility in office post lunch.

Calm and soothing atmosphere is provided during this time to relax their mental cobwebs.

Internal Job Posting:

If someone wants to leave for changing the role, he can switch within the company for similar role.

Assisting in Day-to-day Home related Works:

Hiring an individual at company pay rolls to cater to the need of their employees home related work.

This avoids precious Man-hours and relaxing employees to focus on their rolls to generate faith of employees.

These practices can be categorized in 3 levels:


Medium, and

High level.

This is depicted in the following diagram:

Employee Retention Tips:

Following are some ways to help improve employee relationships:

Pay compensation fairly

Be open to their ideas

Treat people as equals

Provide growth opportunities

Say thanks

Make time

Be flexible

Encourage creativity

Keep them healthy and happy

Lead with the heart

Legal and ethical issues must you keep in mind throughout the recruitment and selection process.

EEO laws and court decisions related to non discriminatory selection procedures

The liability of negligent hiring.

Carefully examining the information provided by the applicant on his or her employment application.

Getting the applicant's written agreement for reference checks, and carefully examining the references provided by him.

Save all information obtained about the applicant.

Reject applicants who have conviction records for offences directly related and important to the job in question or who make false statements of material facts

Maintain the applicant's privacy rights.

Take immediate disciplinary action if problems arise.

Task 3

Disciplinary Procedures

In spite of the best efforts of the employer to select good employees and maintain them well, employees may create problems in the work place. Such problems affect their performance as well as the performance of other employees. In effect it would affect the efficiency and effectiveness of the organization. Common problems include absenteeism, frequent quarrels with other employees, refusal to accept work related orders, alcoholism and drug abuse, non compliance with safety measures etc. These problems are viewed seriously. Every organization has rules and standards of accepted work behavior. Most employees exercise self discipline. They are well within the requirements prescribed. Normally, employees do not desire to be isolated. Therefore, they prefer to meet the expectations of the organization.



Habitual Late coming

Overstaying leave

Disobeying rules/ standing orders


Misappropriation of funds or valuables


In case of, Paul Wilkinson a 44 year old supervisor has recently been coming to work late and leaving early. You have already spoken to him about this, but unfortunately the situation hasn't improved.

As I have already spoken to Mr. Wilkinson, regarding coming to work late and leaving early, my next step would be 'a first written warning' known as Performance Improvement Plan (PIP) will be issued to him stating the reasons for this letter. It will be more detailed and a written document of the verbal discussion he already had. I will ask Mr. Wilkinson to sign the written warning; with additional text on the form stating that he has read the document and a copy of it has been presented to him.

In case of, Sheena Johnson is 28 and a machine operator in the department. You have been informed that security found her stealing some finished and part-finished items from the department. She has been told to report to you at 9 a.m. tomorrow morning.

Before starting the process of discipline, it is essential to hold a preliminary inquiry to know if any proof of this indiscipline and misconduct exist. After this, the following steps should be followed:

1. Issue of charge sheet: Once the proof of misconduct has been established, the management should proceed to issue a charge sheet to the employee. Charge sheet is merely a notice of the charges and provides an employee an opportunity to explain his behaviour.

2. Consideration of Explanation. On getting the answer for the charge sheet served, the explanation presented should be considered and if it is acceptable, no disciplinary action should to be taken. If the employee's explanation is not acceptable, the management can proceed with full-fledged enquiry. (However, if the worker admits the charge, the employer can warn him or award him punishment without further enquiry.)

3. Holding of Enquiry. An enquiry officer should be appointed to hold the enquiry and a notice to this effect should be given to the concerned worker. The enquiry officer should proceed in a proper manner and examine witnesses. Fair opportunity should be given to the worker to cross-examine the management witnesses.

4. Order of Punishment. Disciplinary action can be taken when the misconduct of the employee is proved.

When the employee feels that the enquiry conducted was not proper and the action taken unjustified, he must be given a chance to make appeal.