Differences Between Personnel Management And Hr Management Commerce Essay

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In this chapter of the thesis, I will discuss the main functions of an HR manager, Personnel Management, differences between Personnel Management and Human Resource Management like joy analysis, personnel planning and recruiting, employee testing and selection as well as training and development.

2.1 Challenges of Personnel Management

Day to day challenges are faced by Personnel Management. Personnel Management have to deal with a workforce that includes conflict between the staff members or sometimes with the management.

Analyzing the statistics of the business which includes daily analysis of the employees like the absence of employee, predictable market forces that impact on business outcomes.

Changes in technology, is one of the main challenges that is included on the top challenges of Personnel Management. Business are deal with restrictions which is caused by budget constraints, not having skills within the workforce Personnel management are responsible for finding out the solution and overcome this situation.

Practical problems like failure of equipment and machinery can also lead to this problem. The management should keep be cautious that no employee is idle.

2.2 Differences between Personnel Management and HR Management

The main difference between personnel management and human resource management is: personnel management is the traditional approach and human resource management is the modern approach towards managing employees in an enterprise.

We compare personnel management and human resource management, personnel management is a predominantly administrative record-keeping function that establishes and manage equitable terms and conditions of employment contract, whereas human resource management integrates the traditional personnel management functions to corporate goals and strategies, and performs additional people centered organizational developmental activities.

Significant difference exists between personnel management and human resource management in terms of scope, approach, and application.

2.2.1 Differences in Scope

The scope of personnel management includes activities like manpower planning, recruitment, job evaluation, job analysis, training administration, and related tasks. Human resources management includes all the above activities and organizational developmental activities like leadership, motivation, developing organizational culture, communication of shared values.

The human resource management approach remains integrated to the company's core strategy, and seek to optimize this use of human resource for the achieving organizational goals. This strategic and philosophy context of human resource management makes it more purposeful, relevant, and more effective compared to the personnel management approach.

Difference in Approach

Personnel management approach tends to attach much importance to norms, customs and established practices, where the HR approach gives importance to values and mission.

Personnel management approach also concerns itself with establishing rules, policies, procedures, and contracts, and strives to monitor and enforce compliance to such regulations, with careful delineation of written contract. The human resource management approach remains impatient with rules and regulations, and tries to relax them based on business needs and exigencies, and aim to go by the spirit of the contract rather than the letter of the contract.

An illustration of this difference in approach lies in the treatment of employee motivation. The personnel management approach holds employee satisfaction as the key to keeping employees motivated, and institute compensation, bonuses, rewards, and work simplification initiatives as possible motivators. The human resource philosophy hold improved performance as the driver of employee satisfaction, and devise strategies such as work challenges, team work, and creativity to improve motivation.

Difference in Nature

Another dimension of the difference is approach between human resources and personnel management is the nature of human resource management compared to the nature of personnel management.

Personnel management remains aloof from core organizational activities, functions independently, and takes a reactive approach to changes in corporate goals or strategy. Human resource management remains integrated with corporate strategy and takes a proactive approach to align the workforce toward achievement of goals. Example, the personnel management approaches concerns itself with performance appraisal process, human resource management approach has a more comprehensive performance management system that aims to correct performance rather than make a report card of past performance.

Difference in Application

Personnel management is an independent staff function in the organization, with the actions from managers, and no linkage to the organizations core process. Human resource management remains integrated with the organizations core strategy and functions. Though a distinct human resource department carries out much of the human resource management tasks, human resource initiatives involve the management and operating staff strongly.

Personnel management also strives to reconcile the aspirations and views of the workforce with management interest by institutional means such as collective bargaining, trade union based negotiations and the like. This leads to fixation of work conditions applicable for all, and not necessarily aligned to overall corporate goals.

Human Resource Management gives dealing with each employee independently and provides more importance to customer developmental activities and facilitating individual employees (not bargaining or negotiating with trade unions).

Finally, in our discussion of personnel management and human resource management, we find that personnel management lays down rigid job description with many grades and a fixed promotion policy - usually based on seniority and performance appraisal ratings. Human resource management on the other hand has relatively fewer grades and ranks, with broadly defined job responsibilities providing much scope for applying creativity and initiative, and plenty of career paths, with skills, talent and commitment the key drivers of career advancement.

2.3 Usage of job analysis information [1] 

This includes several HR management activities:

Recruitment and selection: It has information on human characteristics required to perform activities as well as what the job intends. This is described by job specifications and descriptions and it also helps the management to decide what kind of people they should hire.

Compensation: The HR manager use job analysis information in order to decide appropriate compensation (such as salary and other incentives). Compensation of an employee is depend on jobs required skills and education level, the degree of responsibility as well as on other factors which can be assist through job analysis. Generally, the employee grades their job into classes (like secretary in grade III).Job analysis also contains information on the relative worth of each job.

Performance appraisal: This is a process through which actual performance is compared in relation with his performance standards. With the help of job analysis, managers determine performance standards as well as job specific activities.

Training: The training requirements of a job are generally mentioned in the job description.

Discovering unassigned duties: With the help of job analysis, the managers can allocate even assigned duties. For example, the company's production manager may be responsible for a dozen of duties like production scheduling, raw material purchasing. Missing, however, is any reference to managing raw material inventories. After delving deeper, one learns that other manufacturing people are not responsible for inventory management. So, the managers teach whom to assign all those uncovered unassigned duties.

EEO complains: EEO complains should be considered by HR managers as reflect to the US federal agencies uniform guidelines on employee selection. For example, employers must be able to prove that the selection criteria and job performance are actually related.