Aiman Saleem Published Mar 30, 2015 Definition Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result
ultimately in achieving organizational success. Aiman Saleem
HR Professional
Human Resource Management - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.
HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively DISTICNT way, when compared with Personnel Management.
Main Differences between Personnel Management and HRM
- Personnel management is workforce centered, directed mainly at the organization’s employees; such as finding and training them, arranging for them to be paid, explaining management’s expectations, justifying management’s actions etc. While on the other hand, HRM is resource –centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc.
- Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.
- Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.
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Traditional human resources management reacts to employees; when workers make requests or cause problems, HR steps in and takes care of it. Strategic HR involves planning. A strategic HR department looks ahead and heads off problems. These HR pros also look at the company's needs for the future and develop strategies to meet them.
Tip
Traditional HR departments focus on managing labor relations, solving employees' problems and generally keeping the staff happy. Strategic HR has plans for helping the organization - recruiting more workers, developing talent and training employees in company standards and principles.
Scope of Responsibilities
Traditional HR has a narrow focus on issues like basic personnel management and labor relations. Their goal is to take care of employees and keep them happy and satisfied. The HR team doesn't educate workers about responsibilities or how things are done. That's something they assume employees will pick up on the job or from their managers.
Strategic HR departments have a much broader mission:
- Employee recruitment
- Training and developing employees
- Drafting an employee handbook that tells them what's allowed, what's expected, and the disciplinary process for when employees fall short
- Finding ways to steer employees so the company can meet its productivity and profit goals
Human Resource Forecasting
Traditional HR focuses on current employees. Strategic HR thinks about what a company will need in the future. How many more staff will they need to hire? What skills or education will they need them to have? Then HR draws up a strategic plan to meet the future needs.
Strategic HR's mission doesn't end there. The department works actively to recruit individuals who can provide the skills the company needs, and then recommends which of them would make the best hire. Strategic HR also works to develop and promote talent among the existing workforce.
Heading Off Problems
It's tempting to ignore potential problems until they happen, but it's a mistake, particularly with people. Traditional HR steps in when employees have discipline problems or stir up trouble. It does nothing to prevent the problems from developing.
Strategic HR is proactive rather than reactive. If a company wants a zero-tolerance policy on sexual harassment or discrimination, traditional HR would make that known when an employee crossed the line. Strategic HR lets employees know from the start what behavior is unacceptable; the employee handbook and training seminars fill staff in on how to behave, or not behave. In the long run, that can save the company money on lawsuits and complaints.
Constant Updating in Strategic HR
Traditional HR sees itself doing the same thing, year in and year out, with the same tools. Only the faces of the employees change.
Strategic HR tries to stay on top of the game. They keep track of new ideas in the field and new technology that can make it easier to manage employees. They also watch the industry for innovative methods that the competition might use to motivate employees better.