Personnel Management And Human Resource Management Business Essay


Human Resource Management is a part of organizational management that focus on recruitment and providing direction for the people who work in the organization. It deals with problems and issues related to employee, like organization development, performance management, hiring, employee motivation, administration, training, benefits etc. Most people engage themselves in some sort of work in order to meet the basic needs and make their living. So they work in and for the organization. Now a days we can see that the society is organization driven and the firm expects the work to be done. So they want people (employee) to get their works done and in turn people directly or indirectly dependent on them to make their living.

Personnel Management and Human Resource Management:

During 19th century when industrial revolution took place, set of roles and activities was developed for the people, which was followed in most organization. In early factories, the labors worked for long hours under defiled and sooty condition. This created a sort of labor violence. So the government decided to set rules and policies to provide protection for the workers. Thus to manage these mechanism and to look into the labors welfare, Personnel management came into picture. Personnel management is a part of management which deals with employee at work and their relationship with the organization. It aims for the development of an organization by the individual contribution of the employee and also by their team work. It is also concerned with administration of an organization and implementation of various policies. This focused on recruitment and selection, development and training, relation with the industries, employee welfare, appraisal, expansion in management techniques etc. It is reactive and symptomatic. It responds to changes in employment law, trade union, labor market conditions and other environmental determination. In order to maintain and improve the employee's performance there was a demand for the improvement of Personnel Management.  

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The term Human Resource Management came into existence during the late 1970s and early 1980s when there was lot changes affecting the personnel management. HRM arrived from nature and purpose of personnel management and helps the managers of the organization to integrate effective management of human resource with the organization success and goals. Almost every large and medium scale organizations had a department to manage and maintain their employee data's, their relations, recruitment process and methods, wages and salaries of the employees etc. From 1980's, the importance of Human Resource Management continued because to give proper training to the employee's, need for skilled labors, maintain relationship between the people both within and outside the organization etc.. This department was lead by the HR Manager, who is in charge of hiring and firing the labors. HRM focused mainly on internal sources of competitive advantage. The most important need for human resource management is to provide employee a platform for developing their potential in accordance with the organizational needs and individual interest. HRM underlines the needs of 1. direct interaction with the employees 2. Active participation of employees in group discussion and in group work 3. Develop culture in an organization to adapt flexible working methods.

Human resource management which originated in USA has been widely accepted by many nations all over the world. European economy is completely different from USA.

This led to different approach of HRM in European countries. Comparative HRM evaluates the interaction between HRM global wide and national business institution to shape the human resource management. It means, systematic analysis of Human resource management practices in two or more countries to increase the understandings and knowledge about the management approach. Comparative HRM is integrated with globalization of business. The HR strategies and policies which is performing effectively in one country can be established and followed in many other countries. We can find many difference in HR policies followed in various countries like America, Europe and in Asia. It means, finding the relation between various countries which follows analytical relations. It deal with the activities that should explain the various approaches and variations followed in different countries rather than describing HR policies in selected countries. The various features like different approaches of consultation, more limited individualism, important role of the state and type of ownership are concerned with different practices. This resulted in completely varied pattern of research.

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For decades, US and Japan organization dominated the economic market throughout the world with their own way of management style. Later Europeans way of approach to human resource management played a significant role when compared to US and Japanese method. For example, in Japan the organization concentrated on long term growth and they expect a strong bond between the organization and the employee. Where as, US focused on short-term profits and employee performance was fully based on immediate production. But European approach focused on internal negotiation and also concentrated on the welfare of the people. They also concentrate on social welfare of the organization.

HRM integrated model tells the HR professional to adapt, organize and realize individual role and directly aimed to accept and analyze new HR policies and the firms upcoming projects. It also provides HR with new position and practices and helps them to identify a new dimension and motivation. Through this model HR activities are made efficient and thus brings true sense to the project and the organization. The Integrative model has two types of HR strategies. 1. Gaining possession and development focus on human capital 2.Intense concentration on employee's demands and proposals. These two dimensions focuses on four types of HR strategies. They are commitment, collaboration, paternalistic and traditional approach. Commitments describes how to develop employees' abilities and their outcomes, where as the traditional dimension concentrates on external competencies and behaviors. Collaborative HR strategy deals with the firms subcontracting work which deals with their performance based on their results. Paternalistic strategy deals with offering training to the employees' and internal promotions based on their performance. The success of the HRM policies are analyzed at individual, organizational and society level.

2nd Part :

Business ethics are nothing but professional ethics that analyze the moral values and ethical problems which rise up in an organization. It can be both descriptive and/or perspective. It is applicable to conduct of an individual and the organization as a whole. Despite of all moral excellence on Human Resource Management, there exist a firm culture in an organization which asserts that business should be concerned with ethics. In general, ethics are nothing but general principles for the development of behavior. Every individual in an organization must be considered valuable and should be respected. For many years, Business Ethics was considered as oxymoron. The main reason for this is because the organization mainly concentrated and focused on earnings and their profits. It is really difficult for a company to concentrate on their profits and to be ethical. Since there was no proper ethical values followed in an organization there was a poor image and bad reputation. So it is very necessary for an organization to concentrate on improving awareness in workplace and also should know how to make profit out of it.

The foremost purpose of Business ethics as a whole "is not so much to teach the differences between right and wrong, but rather to provide business people with the tools and framework for dealing with moral complexity" (Jensen, 2000, pg. 3-4).

Africa :

Organizational culture broadly refers to a specific organizational policies, norms, their vision and mission statement, their formal and informal rules to develop and maintain a good behavior in the firm. However, still we need to distinguish and understand the extent to which the socio-political and historical values of particular society or nation will have an impact on the organization. The organizational policies and practices are nothing but the values and beliefs that are prevalent in any society. These are not static. They will be changing over time. The important factors which helped to shape organizational culture in Africa would be the policies and practices followed in American and European corporations. According to them, humanity can be defined only through interaction with other people. The key for an organization should be the people and the their relationship. They follow a culture concept named Ubuntu, which tells about the humanness, care, morality, empathy, understanding which helps to maintain a good relationship with an individual. Western management concept dominated the thinking of higher officials in Africa for a long period of time. They do not show how culture plays their role in management practice. They have a systemic approach based on practical and historical experience to solve the problems. The fact is that, Africans have their own values and policies. These are long lasting and strong enough and that's why Europeans were not able to remove these values permanently.

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Human Resource occupies an important position in Africa. They play a vital role in the development of Technologies since 1960's. . Unfortunately, HR function in Africa has not been proactive in its use of technology to provide integrated services or to communicate more effectively. The few initiatives made have by and large originated from IT experts. There is need for HR to proactively embrace Technology to elicit responses and fulfill changing expectations within organizations (Elliott and Tevavichulada, 1999).

Indian View :

India is a culturally diverse country with different religions, number of ethnicities and a huge population scattered all over the world. Indian values have their attraction towards humility, spiritual harmony, patience, family, culture, cooperation and their culture concerned with people and their relationship. India faced a number of intrusion of foreign rulers, who tried to influence their culture and traditions. When India was under the control of British, many number of manufacturing companies have been established. As days passed, some of these industries were taken in charge by Indian entrepreneurs to manage to them. After independence (1947), India face a problem as how to modern concepts to traditional society. So, by intermingling various cultures, Indian organization adopted and regenerated various western ideas. But they even followed Indian cultures. Each Indian organization followed a set of policies and rules for the development for the organization. Paternalism has been the ethos in workspace. These paternalism provides guidance, motivation and security. Many Indian organizations for example Tata, Infosys, Hero Honda and many other manufacturing units are personality centered and relational. Infosys is one of the largest IT companies in India, which focus on intellectual capital and world class models. The employees of the organization are given importance with legal power and official authorities. They even have rights and adopt treating corporate resources as their personal resources. Even the company expects their employees to make value added contribution for better development of the organization. It acts as a platform for learning opportunities and even get feedback from the employees for the welfare of the individual and for the organization. We can say that, Infosys is a company which follows organic design. They aimed at knowledge and values for better result. Even though many other Indian organizations follow western culture, their foundation is based on Indian values and cultures. We can say that people centered organic design results in greater satisfaction for the employees' and better organizational productivity.