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Some people claim that there no differences between personnel management and human resource management and both the words are used interchangeably. However, some experts still argue that there are a couple of differences between the two.
Personnel management involves planning for a short time period while human resource management is concerned with long term planning.
Personnel management is operational in nature i.e. to manage the day to day activities of personnel in the organization whereas human resource management is strategic in nature. (Human resource management ensures that the organization has the appropriate staff in place to achieve its long term objectives)
Personnel management is reactive whereas human resource management is considered as being proactive in nature.
The traditional approach towards managing people in an organization is known as personnel management whereas the modern approach is known as human resource management.
Under personnel management, employees are motivated via reward and bonus schemes (such as performance related pay) whereas in human resource management employees are motivated by formulating strategies such as team work and creativity.
The HRM function at Tesco is simply miraculous. It has considered all those aspects that would keep the employees motivated, as a consequence they would work in the best interest of the organization. The current reward system which offers a flexible working environment, competitive salaries, company share options etc would stimulate the employees to work efficiently and effectively. Moreover, the HRM function at Tesco has set targets which are realistic and has also provided their employees with an interesting work environment. This would increase the motivation and morale level of employees which would enhance their performance and ultimately benefit the organization. Not only this, the reward system at Tesco is a mixture of financial and non financial factors which would again keep the employees committed to Tesco. It offers financial reward packages to its employees with various non financial benefits which are tailored according to the lifestyle of employee availing the benefit. Lastly, the viewpoint survey gives the right to employees to express their feelings about each and every attribute of their job. This improves the coordination between the employees and the HRM function which would ultimately contribute in achieving the long term strategic objectives of the organization.
The roles and responsibilities of HRM managers at Tesco could include the following:
At the initial stage, HRM managers would be required to predict the workforce that would be required so that the organization can operate successfully. This could be in terms of how many employees are required and what skills they should possess.
Once the employees are hired, HRM managers should make sure that they become familiar with the operations of the organization (known as induction) and providing them the necessary training if there is a gap between actual performance and required level of performance.
HRM managers are also required to appraise the performance of employees on a regular basis. This involves evaluating the actual performance of employees against targets/goals set and giving them appropriate feedback which would enable the employees to overcome their flaws in the future.
HRM managers are also required to design reward packages to ensure that employees are motivated and working in the best interest of the organization. This could involve introducing bonus schemes linked to share price, performance related pay etc.
HRM managers also have a duty to manage complaints made against the employees. This could involve suspending/terminating employees from the organization.
The legal and regulatory requirements with regards to HRM could include the following:
Employees should not be discriminated on any basis (race, ethnicity, religion and gender) and should be given equal opportunity.
Providing employees with a safe, healthy and clean working environment.
Devising an appropriate policy to prevent sexual harassment within the premises of the organization.
Ensuring that both men and women are paid equally (if they are doing the same job).
Compliance with child labor laws (i.e. not hiring under age employees who are not allowed by the government to work)
Protecting the investment of the employees in the form of pension schemes.
Allowing trade unions to operate in the organization and establishing their operating procedures.
Preventing forced retirements.
Ensuring that no employee in the organization is dismissed on unfair grounds.
Ensuring that the privacy of employees is not invaded unless there is a serious suspicion against the employee.
Protecting the jobs of female workers in the organization when they are on maternity leaves.
Human resource planning in an organization is essential for a number of reasons. Firstly, employees are the key drivers of the business; therefore it is vital that appropriate planning is done to have the right number of employees with the required skills and experience. Secondly, good human resource planning can help a business to achieve its operational objectives which ultimately take part in accomplishing the corporate goals of the business. Also, through succession planning, the human resource department identifies key personnel who are competent and have the ability to take key positions in the future. This stabilizes the future of the business. In addition, human resource planning also helps in designing an effective performance management system which ensures that the performances of employees are up to the mark. In the absence of such a system, poor performances cannot be measured and the employer would continue their payroll which could lead to wastage of resources. Lastly, in the modern business environment, businesses want to be known as â€œemployer of choiceâ€. Human resource planning can contribute to achieve this milestone by recruiting and retaining the most qualified, suitable and talented employees in an organization.