Personnel Management And Human Resource Management Commerce Essay


As per the senior managements comment in the meeting: Our Company is suffering in the marketplace, as we take a personal management approach rather than a HRM approach.

Report to answer Manager's query: This report has been designed in order to enable the line manager to address the issue raised in the management meeting. What we understand from the management's comments is that our new store of TESCO Company is facing lot of issues and competition at the new market place.

Similarities and differences between HRM and personal management?

Why senior management of TESCO feels that our new store should take a HRM approach instead of a personal management approach?

Personnel management expands into human resource management. In general terms, Personnel management is considered to be an administrative function of an organization. Personnel management is supposed to be organized in such a way that any changes in the organisation stimulate response from personnel management.

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In an organisation, a person or a team of individuals are believed to be engaged in the process of Personnel management, when they become in charge of considering programs and making sure setting policies are appropriately set so that it can have an impact on every individual associated with the company and its performance.

Objective of personnel Management: By this we mean that the focus point through which personnel management is helping in development of the people in the organisation. These objectives can be divided in 4 types:





What is an excellent personnel management: Characteristics of personnel management when it is considered to be excellent has been listed below:

Personnel management is expected to bring stability

Personnel management should be adaptable and capable to encounter any issue

Employee relation management

Should have a set objective for the department or the organization

Functions of Personnel Management: Following are some of the functions of Personnel Management:

Assessing employee's requirement

Hiring employees

Screening of the applicants

Selecting the applicants

Orientation of the new hired employees towards business

1. 1 Definition of Human Resource Management (HRM)?

As per Human resource management, employees are considered the most valuable assets of an organisation. HRM is considered as a development function of an organization.

Objectives of Human resource management: Management of the manpower in any company or organisation is human resource management. The main objective of HRM is to increase the efficiency and performance of the employees, staff and other department by identifying the job requirements and hiring the appropriate candidate for that post. This has both development and implementation of strategy.

What is good human resource management: HRM is considered to be resource centered. The main functions of HRM are listed below,

Recruiting employees

Development of training programs

Implementation of trusted appraisal system

Provide growth opportunity in organisation

Performance management

HR planning

Employee retention

Implementation of new resources to increase efficiency of employee etc

1.3 Similarities and differences between HRM and personnel management

In this part we will cover some of the similarities and differences between Personnel management and Human resource management.

Similarity between HRM and Personnel Management: Even though most of the people try to evaluate the difference between HRM and Personnel management, there are lots of the similarities between these two management systems:

Both work on business based strategies

Both HRM and Personnel management understands the responsibility of a manager

Both believe is getting right candidate for right job

Both understand that interaction with employees is the key for the success of management

Differences between HRM and personnel management: Stephen and Keith in their works mention Storey J's (1992 twenty seven points of difference between Personnel management and HRM, of which some key differences are:

27 points of difference



Strategic aspects

Key relations

Labor management



Speed of excision


Line Management



Key managers

Personnel/ IR specialists



Key levers


Separate, marginal task

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Job evaluation


Restricted flow

Conflict handling

Reach temporary truces

HRM is more proactive when compared to personnel management

Personnel management is in general operational whereas HRM is strategy based

Personnel management focuses in workforce whereas Human resource on resource.

As per personnel management employee is supposed to be utilized for company's benefits but in human resource management, not only the company but also the employee, their family should be given the benefits.

In personnel management, employee is considered to be the cost center, whereas in human resource management, they are considered as profit centers


Personnel Management






Targets the current needs

Targets the trainability and retention


Need based

Skill based

Performance Review

Supervisor oriented

Pre defined targets and goals. Aims for transparency


Based on performance and need

Pre developed career path

1.4 Why Senior management TESCO feels that our new store should take a HRM approach instead of a personal management approach?

Comments say: "…that our company is suffering in the marketplace, as we take a personal management approach rather than a HRM approach."

At first when we go through the senior management's comments, we don't see any details regarding the reason which has provoked the management to pass this comment. Even though we can clear understand that there is a serious issue that our new store or company is facing in the marketplace.

As mentioned earlier reason for the poor performance has not been highlighted in the comment. Based on our assumption we can consider the problems related to staff turnover, customer handling, job satisfaction, etc. The other reason can be that the customers coming to the store are getting poor service and minimal attention to their needs. So based on this we can consider the issue to be the employee management.

We know that if the staff performance is not up to the mark, it has a direct impact on the status of the TESCO Company and their other stores as well. The senior management might having the opinion that since this a new store with lots of challenging situation, it required development work. As per the management's comment, we can understand that if we want our store to be successful in the marketplace, we need to start working based on Human resource management.

Task 2. Recruitment, selection and retention (L01)

We all know that TESCO has both food and non-food store across United Kingdom, and they keep on recruiting staff members on regular basis for these stores as per the requirement. Use of appropriate hiring and selection process not only saves valuable amount of time as well as cash of the company. Any job position becomes available in a company:

Opening of new stores


Sudden requirement at some store

2.1.1 Recruitment and Selection Procedures

Usually we will see people getting confused with the terms recruitment and selection. In this section we will clearly explain the difference between Recruitment and Selection process. The HR process has two stages:

Recruitment: The process of finding the correct candidates and encouraging them to apply for jobs vacancies in the company is called Recruitment process. Recruitment process involves seven steps:

Job vacancies identification

Preparing and consolidating specific job requirement

Job advertisement

Managing the responses received through the advertisement

Short-listing the candidates

Arranging interviews for the short-listed candidates

Conducting interview and deciding on the right applicant

There are two methods through which recruitment of an employee can be done:

Internal recruitment: Internal recruitment is nothing but Transfers, promotions and Re-employment of ex-employee. This is performed internally in a company

External recruitment: In this people are invited to fill in the job application and attend interview. This is outside the company means all the appropriate candidates can apply for the job posting.

Recruitment mainly helps company in 4 different ways:

Opting for highly qualified people for the job

Making sure candidate stick for long time with the company

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Selection: Selection is the process of selecting the right candidate out of all the picked candidates. This process involves lot of phases through which an applicant goes through before selection. This is a critical step as in this process the right applicants is selected as per the job opening available in the company.

There are four likely out comes of Selection process:

Selection of the right applicant (positive for company)

Rejection of unsuitable applicant (positive for company)

Selection of reject-able applicant (negative for company)

Rejection of appropriate candidate (negative for company)

Selection process takes place in the following order:

Initial interview

Application filling

Verbal and written test

Interview with HR manager

Handover of Appointment letter

2.1.2 Tesco's Recruitment and selection process

TESCO- The biggest private sector employer in United Kingdom

There are lot of people who are part of these stores and they are Checkout staffs, Stock handlers, Supervisors and specialist like bakers, pharmacist etc.

The Recruitment process in TESCO can be summarized as follows:

As Tesco recruitment is mainly done through there website or through job advertisement regarding the vacancies available at the store.

This site contains all the information about the company and the requirements for the particular job vacancy.

Usually TESCO site is uploaded with all the job vacancies and the candidates just need to search the appropriate job by using search option.

One the application is filled, the candidate is called for interview based on screening.

Any company first checks on the list of the current employees at different stores and there past work experience at store.

As per qualification, education and previous job experiences, initially the candidates will be filtered.

Line manager will make sure suitable candidate is selected for our new store.

2.2.3 Sample interview questionnaire: Below are some of the questions asked in interviews;

Why do you want to join TESCO?

What are reasons for you to leave your previous job?

Tell us something about your strengths?

What do you consider as your weakness?

Are you good at handling work related pressure and stress?

What salary expectation you have?

Tell us something about yourself?

What is your qualification?

Tell us something about your previous experiences?

What are your expectations from Managers and Team leaders?

2.2 Retention

Employees or the staff members are like the back bone for company. No company can work without staff skillful staff members. Commonly employee dissatisfaction leads to resignation, hence as far as employee satisfaction is concerned; being manager of a new store, the responsibility is to achieve not only customer satisfaction but also as employee's satisfaction.

Employee Retention is created by Effective Managers. As recruiting a skillful staff member is difficult same way retaining them is lot more challenging. Employesses in any company expect compensation, good working environment, career growth and good working relationship. Employees tend to leave managers who can't:

Clarify issues

Assist in career growth

Give regular performance based feedback

One way of keeping your cost down will be to make sure that staff turnover is low.

2.2.1 Why Staff leaves the job?

In this section we will take a look at some of the reasons that provoke an employee to leave their current job:

New job: Every person looks out for better opportunity if they are not finding one their current job.

Higher Salaries: This is most common reason for any staff member to leave the job

Poor management

Human Resources department response to employees


Work environment

Job satisfaction

No growth


2.2.2 Method to retain the Staff members

Following are some of the suggestion to increase Staff retention:

Recruit people who have talent, ability and ready to work in any position

Provide benefits like life insurance, permanent or temporary disability insurance and flexible hours.

Regular feedback session based on performance

Growth opportunity

Celebration at workplace

Proper appraisal system

Regular appreciation

Good work environment

Should provide work and life balance opportunity

Regularly address is staff issues

2.3 Legal and Ethical Issues in Recruitment

Recruitment process is not simple as it sounds. Lot of legal and ethical issues needs to be kept in mind during this process. To meet legal requirement company needs to make sure that Job postings, inspecting references, interview questionnaire, and job offers all need to be done in appropriate way. As per BC Human Rights Code (Discrimination in employment advertisements), a job should not be published if it gives preference to the following:




Place of origin

Religious conviction

Marital category

Belief involving politics

Family status


Psychological disability


Religious conviction

Any applicant can take legal action against the company if the question is in appropriate. In order to keep the staff members aware of the legal and ethical issue pertaining to company, the store manager can provide a handbook once the candidate is selected.

An employer should always be ready with the appropriate documents supporting that the job requirements are legal and not against the ethics of the company.

3. Disciplinary Procedures

3.1 Introduction

The main focus of implementation of disciplinary process is to bring out improvement in an employee or staff member.

Implementation of Disciplinary procedure is very important in any work place. A staff member needs to be aware that when ever there is something going wrong, it was an end result. Whenever any employee breaks policies of the company or doesn't work to their expectation, disciplinary procedures is administered. Usually disciplinary procedure is applied when a staff members performance is below expectation or not up to the mark. Before an appropriate action can be taken disciplinary procedure demands an explanation of the issue from both the sides. There are two ways of handling these situations Informal and formal. An informal step involves talking to the staff personally and internally but a formal step involves other departments like HRM. There are different methods in application of discipline like Warning (verbal or written), Probation, Suspension/ transfer, Demotion, Discharge

Below mentioned the issues that have been observed recently in the Store will give a clear understanding about disciplinary procedure:

3.2 Paul Wilkinson - Coming late and leaving early

Issue: 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.

In this case,

Supervisor is expected to be extremely punctual as they act as role models for the new staff.

As this is a repeated offence from Paul's side, initially he was given verbal warning but as the situation has not improved, he will be given a written warning.

Try to speak to him and offer him some other shift in which he can work with commitment without compromising on the time.

Putting him on probation can also a an option.

Transferring him another store is just waste of time and cash. It will only hamper other store's performance and reputation as well.

Depending on seriousness of the offense, next time can lead in his demotion or removal from the job.

To better understand Paul's recent activity, we need to know if

He is facing any family or personal issue pertaining to time of work.

Is he no longer happy working at the store

Reason for his dissatisfaction if any

3.3 Sheena Johnson - Stealing in the Store

Issue: 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.

In this case;

In Sheena's case, legal action is necessary to be taken to handle this issue.

In any industry or organization stealing is against the ethics of the store and legal action can be taken depending on the seriousness of the offence.

Being a manager, I need to make sure that this offence is not repeated either by Sheena or anyone else.

If this information becomes public, customer will not come into the store as they won't find their articles safe.

Before taking legal actions, immediate terminate Sheena from her post and clear the accounts. Order her to return back all the articles stolen from the shop or pay compensation.

Other information needed to understand Sheena's activity is

From when she has started stealing

Possible reason behind this act

4. Summary

Management is getting all different kinds of people together and work as a team. We know that the management of personnel and human resource has been changing periodically. Stability in business is important and human resource management and personnel management has an important role to play.

Through the above task we have got a clear understanding of how personnel management differs from human resource management as well as similar to each other. Through the report development, we will help the line manager to address the issue pertaining to the new store at the market place. We have discussed how Tesco has been of selecting right candidate through appropriate recruitment and selection process. We discussed about the reasons for the staff members to leave the job and the retention methods that are implemented to retain the skillful employees.