Unit 18 Difference between Personnel Management and HRM Assignment

Unit 18 Difference between Personnel Management and HRM Assignment

Unit 18 Difference between Personnel Management and HRM Assignment


Diploma in Business

Unit Number and Title

Unit 18 Diffrance between Personnel Management and HRM

QFC Level

Level 5



Human resource department has different functions and roles in an organization and due to this it plays a major role in the operations of the same. Human resource department is related to the management of human resource and get effective outcome from them. They have responsibilities related to recruitment, appraisal and trainings of manpower. Every organization needs resources to run their operations and human resourceis one of them. Human resource department is essential to fulfil the goal and objectives of the organization. They have the responsibility to train and guide employees in a proper manner. It is necessary for human resource department to maintain a good relationship with the workforce and provide assistance to them in conflict resolution and stress handling. Employees need motivation to work in a more effective way. So, it is the responsibility of human resource department to provide them with rewards and appraisal on their achievements.

Task 1

1.1 Differentiate between personnel management and Human resource management giving examples in two suitable organisations.

Human resource department is necessary for an organization as it has the responsibility to manage people working in the same. It has different roles and responsibilities like recruitment, selection, performance evaluation, stress handling, trainings etc.  Human resource or employees are responsible for the growth of an organization as their efforts can help an organization for the achievement of objectives. Human resource management means the effective utilization of people so that they can achieve individual as well as organizational goals. Human resource management and personnel management are different from each other. Personnel management is a discipline that is related to the hiring and development of human resources.   It acts as a mediator between the management and human resource. It deals with payroll management, employment laws, job analysis etc. Human resource management refers to the management of workforce in relation to their trainings, guidance, stress management etc.

The difference between the two is as follows:


Personnel management

Human resource management


Personnel management means to manage manpower and to maintain their relationship with the organization.(Reese, 2012)

Human resource management means the management activities that focus on the effective use of manpower in order to achieve organizational goals.

Basis of pay

As per job evaluation.

As per performance evaluation.


It has a traditional approach.

It has a modern approach.(Sparrow, 2006)

Manpower treatment

Human resources are treated as a tool.

Human resources are treated as an asset.


It includes an indirect communication.

It includes a direct communication.

Decision making process

There is a slow process in personnel management.

There is a fast process in human resource management.


It consists of routine functions.(Sekhri, 2010)

It consists of strategic function.

In Cadbury, performance evaluation is used to decide the basis of pay of the employees by human resource management. Both qualitative and quantitative methods are used to evaluate the same. In personnel management the basis of pay is decided in accordance to job evaluation. In Tesco, more emphasis has been given to training and development so it can help the employees in stress management. It conducts many programs related to training and development of employees. The training programs are specific in nature as this organization provides specific training for specific job. There are no stress management tools available in case of personnel management as its deals with relationship management.(Luthra, 2015)

Images of HRM

1.2 Assess how human resource management functions help your chosen organisation in achieving its purpose.

There are several functions of human resource department in an organization. It has different organizational as well as administrative functions.  Cadbury is a company that provides chocolates and is involed in the production of confectionary items. It has a human resource department that is responsible for managerial and operational functions.(Edenborough, 2005)

Managerial functions are-

  • Planning-It is related with the preparation of training and recruitment plans.
  • Organizing- It includes the organization of activities in a proper way.
  • Directing- Directing means to assign roles and responsibilities.
  • Controlling- It refers to the control of plans to make them free of errors.

Operative functions are-

  • It has the responsibility for the procurement of human resource.
  • It is responsible for the training and development of employee relations.
  • It is responsible for compensation management.(Luthra, 2015)
  • It promotes a healthy industrial relationship.
  • It has to maintain all the records.
  • It is responsible for planning and evaluation of human resource.

There are different ways of performance evaluation in every organization. Likewise in Cadbury, performance evaluation has been done by human resource department.  They measure the level of accomplishment of the work done by the employees. They understand the importance of training and development and due to this; trainings are provided to their employees in order to increase their knowledge and skills. Training is important for employees to perform the task in the best way. Cadbury is concerned about its employees’ health and safety so it has provided a good working environment to its employees.(Heinrichs et al, 2013)

Human resource department has the responsibility for giving benefits, perquisites, allowance and compensation to employees, if they are entitled for the same.  There should be an equal compensation for the employees working on the same job. Human resource department should ensure that there are no discriminatory practices in the organization. It assists employees in grievance handling and stress management as these two factors affect the employee’s performance.

1.3 Evaluate the roles and responsibilities of line managers in your organisation or familiar organisation and how it supports human resource management functions.

Line managers are the managers who have a direct responsibility for a specific employee and they are responsible to higher authorities for that employee. They have many roles and responsibilities.

Their roles include-

  • Responsibilities related to performance appraisal of employees.
  • Responsibility to provide training and guidance to employees.
  • Help employees to maintain their work- life balance.
  • To maintain discipline standards in the organization.(Marie Ryan and Derous, 2016)
  • Grievance handling of employees.
  • To handle recruitment and selection activities.
  • Their responsibilities include-
  • They have to resolve and manage the difficulties of the staff in an appropriate manner.(Guerin and DelPo, 2009)
  • To take measures for improving employee’s performance.
  • To ensure that the staff has a proper understanding of the work allotted to them.
  • To set a time period for improvement of the performance.
  • To conduct regular review meetings.
  • Provide support, guidance and supervision to the employees so that they can achieve the goals.
  • Setting the standards of performance.
  • Try to identify problems for bad performance.

Sainsbury has its line managers that perform the functions related to developing strategies and designing performance management system.  They are responsible to cope up with the changing business requirements and other business priorities of higher level. They implement HR policies and procedure in the organization. It is necessary to maintain a good relationship between employees and managers as it enhances employee’s performance. Line managers have the capacity to change the behaviour and attitude of employees. Front line managers provide guidance to employees in order to control the flow of work in correct direction.(Marie Ryan and Derous, 2016)

1.4 Analyse how legal and regulatory framework impact on human resource management.

The body of law that deals with employer-employee relationship is called as employment legislation. Motive behind the creation of this legislation is to safeguard the rights of employer and employee in relation to workplace. It has some legal and regulatory framework that creates an impact on human resource management as it is applicable on the whole organization. There are many Acts that have some rules and regulations and the same are necessary for an organization. These Acts are-(Sekhri, 2010)

  • The Sex Discrimination Act-It is related with the removal of all discriminatory practices from an organization that is based concerning the sex of an individual. Some organizations discriminate employees in relation to trainings, promotions, appraisals etc. on the basis of their sex. They prioritize employees as per their gender.(Piskurich, 2009)
  • The Employment Rights Act- It is concerned with the rights of employer and employee. An employee has several rights in the organization like he is entitled for remuneration as per National Minimum Wage. There should be a written statement in which all the terms and condition related to employment is mentioned. This Act safeguards employee and employer from unfair practices.
  • The Disability Discrimination Act, 1995- This Act can be applied to the organisation that has more than 20 employees. It is necessary for an organization to treat its disabled employees in an equal way in terms of transport, trainings, education etc.
  • The Equal Pay Act, 1970-According to this Act, there should be an equal pay for the employees who are working on the same profile.
  • The Race Relations Act, 1976- There should not be any discrimination practices according to the race of the employees. Employees belong to different race should be treated in an equal way.(Dessler, 2008)

Task 2

2.1 Analyse the reasons for human resource planning.

Meaning of human resource planning is to analyse the present human resource and calculate future requirements of an organization to fulfil the goals and objectives. Planning is necessary before any action. Human resource planning is concerned with the business strategies that can ensure the supply and availability of manpower. It acts as a link between the human resource management and strategic plans of an organization. Human resource planning helps in hiring manpower with the right skills at the right time that can contribute their efforts in achieving organizational goals. It helps in cost cutting and defines the future human resource requirements. It assists in succession planning and create reservoir of talent. Firstly, there is an analysis related to the present human resource, and then the calculation of the future requirements has been done to meet the requirements of organization.(Piskurich, 2009)

Reasons for human resource planning are-

  • It helps in conducting business activities in a more effective way.
  • It helps in cope up with the modifications to the required skills.
  • It helps in decreasing cost of labour.
  • It minimizes the issues related to turnover of employees.
  • It ensures adequate supply of manpower in requirements.
  • It helps in efficient use of manpower.
  • It helps in controlling the effects of technology on jobs and human resource requirements.(Luthra, 2015)

2.2 Outline the stages involved in planning human resource requirements.

There are many stages in planning process of human resource requirements as it includes many factors that are essential in proper planning.

Planning of HRM

Know objectives of the organization-Every organization and its employees should know about the objectives and goals of the organization as they need to perform to fulfil the goals and objectives in the best effective way. An organization has been divided into various departments according to the tasks and there is a different goal for every department. Objectives give an idea to the employees regarding the work, to achieve goals of the organization.

Calculate present human resource-To determine the future needs, it is essential to know the present condition of human resource available to the organization. It is important to judge their capacity, potential and performance. Both internal and external sources should be considered to fill the vacancies.(Marie Ryan and Derous, 2016)

Forecasting demand and supply- It is necessary to create an estimation of the required human resource in an organization as per different job profiles. It is important to match job specification and job description related to a specific task, to acquire right candidate for a particular profile.(Armstrong and Armstrong, 2009)

Estimating manpower requirement-Surplus and deficit of human resource can be calculated by forecasting demand and supply. Deficit shows the requirement of manpower in the organization and surplus shows terminations. Training and development should be provided to the candidates to enhance their skills.

Preparation of final plan-Final plan has been prepared according to the surplus or deficit in the organization. So the plan is either related to the recruitment of manpower or termination of the same.(Edenborough, 2005)

Monitoring, Controlling and Feedback-It consists of the implementation of final plan. Human resource is allocated to various jobs according to the requirement. It is necessary to monitor the plan so that the errors can be minimized. Afterwards, comparison between the human resource plan and its implementation has been done in order to take an appropriate action.

2.3 Compare the current recruitment and selection process in the organization with another organization you recommending.

As per the case, there is no HR planning policy and systematic procedure in the current recruitment process of the organization. Their interview process starts with a telephonic round. The questions asked in the telephonic round are irrelevant and not suitable for an interview process. After qualifying telephonic interview, candidate has to appear for face- to- face interview in which many questions are asked related to educational qualifications, professional experiences etc. (Heinrichs et al, 2013)

The process of recruitment and selection of Cadbury is as follows-

Screening interview- It is a process that consists of a telephonic round in which direct questions are asked to the candidates. Unsuitable candidates have been eliminated from this round. It is conducted only by some of the organizations.

  • Selection tests-Selection tests are conducted to check various skills of the candidates. There are different types of selection tests like aptitude test, general english test, psychometric test etc. By conducting these tests, an organization can identify the suitability of a candidate in the organization. Some of the selection tests are-(Sparrow, 2006)
  • Work sample test-It identifies the suitability of a candidate at workplace.
  • Job knowledge test- It determines the level of knowledge related to a job that is required by an organization in the employees.
  • Personality test- It defines the personal characteristics of an individual.
  • Vocational test- It identifies the interest area of a candidate.
  • Interview- In an interview, an organization tries to find out the problem solving capacities and skills of the candidate by asking open ended questions. Questions are according to the qualification, practices and experiences of the candidate. Interview takes a long time in recruitment process.
  • Background verification and reference checks- It is necessary to know about the authentication of the documents provided by the candidates. Usually candidates lie about their work experiences and education.(Norrbom, 2016)

2.4 Evaluate the effectiveness of the organization recruitment and selection techniques with another organization you recommending.

Techniques of recruitment and selection of an organization varies from any other organization because their requirements are different. They conduct different tests to judge skills and capabilities of candidates according to the needs. Recruitment and selection procedure shows the quality of manpower in an organization. There should be a proper planning related to recruitments in order to decrease employee turnover. Cadbury has a proper recruitment and selection procedure. They consider internal as well as external candidates for the vacancies available in the organisation. Internal recruitments help an organization in cost cutting as an existing candidate does not require trainings and induction. It is important to provide encouragement to employees in relation to internal recruitments. There are two effective ways for recruitment-

  • Internet-With the help of internet, an organization can easily approach the candidates and then call them for interview.
  • Employee referral-It means to recruit a candidate by the suggestion of an existing candidate. (Sekhri, 2010)

Selection refers to select a candidate on the basis of interview and selection tests. It is important for a recruiter to judge a candidate in the right way. It assists an organization to find out a good candidate from large population.

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Task 3

3.1 Assess the link between motivational theory and reward at Virgin Media or your chosen organisation. Your answer must show if you think there is a link, what connects the two.

Virgin media has been formed by the merger of NTL. It is a big player in the cable industry. It considers motivation as an important part that affects the behaviour and work of an employee. It helps employees to perform their task in the best way and achieve goals. Understanding of motivational forces ensures an organization that it has employees that possess skills, knowledge and talent to perform a job as well as their dedication towards the organization. Motivation aids them in achieving high standards of a job. Positive motivation makes an employee more responsible. They are always ready to help their colleagues and juniors. Employees that are negatively motivated have not been able to perform well and it results in irresponsible behaviour, absenteeism, low level performance etc. All these things create a negative impact on business environment.

Virgin media consider rewards as an important factor that motivates employees in an effective way. There are bonus schemes for employees like ASPIRE field pay and reward system and many other benefits like pension, gratuity etc. A research on motivational theories and job satisfaction was asserted by Fredrick Herzberg in 1950’s that defines the importance of motivation at workplace. According to him, there are two factors of motivation that can improve performance of employees. It is known as two factor theory of motivation.

The two factors are-

  • Hygiene factor-It includes basic pay and working environment.
  • Motivators-It includes promotions, incentives, bonus etc.(Reese, 2012)

Maslow’s needs theory has five factors that affect an individual performance-

  • Biological and physiological needs- It concerns with the basic needs of an individual like shelter, water, food etc.
  • Safety needs-It refers to the needs that safeguard the job of an individual.
  • Social needs-It is related with the love and affection of family and friends.
  • Esteem needs- It concerns with the status and achievements of an individual.
  • Self-Actualization needs It refers to self- realization and achievement of personal goals.

HRM images

3.2  Evaluate the process of job evaluation and other factors determining pay at Virgin Media or your chosen organisation.

Job evaluation is a systematic procedure in an organization. Meetings are organized to discuss employee’s performance and their reviews in relation to the objectives. Plans are prepared in reference to the performance of the employees in order to determine the organisation’s progress. It is a method that promotes fairness and consistency in the organization. Virgin media believes in “doing right things”. This concept by Virgin Media makes employees more satisfied and in turn enhances their performance. It has adopted initiatives like corporate social responsibility that helps the workers to avail many opportunities that can satisfy their self- motivation needs. Job evaluation procedure is as follows-(Guerin and DelPo, 2009)

  • Job analysis-It means to assess all aspects included in a job. It describes different roles and responsibilities that are essential to perform a job. It consists of finding out necessary skills, knowledge and talent of an individual.
  • Job rating- It has the same features of job analysis that includes job description and job specification.
  • Allocation of money- It is important to allocate money according to the pay structure of each job.
  • Job classification- It refers to the categorization of job that has done as per the pay structure.(Armstrong and Armstrong, 2009)

3.3 Assess in different contexts (for e.g. attracting talent, retention, and motivation) how effective is the reward systems at Virgin Media or your chosen organisation.

Virgin Media has used various methods thatmotivates its employees and reward system is one of them. According to this organization, reward plays an important role in employee’s motivation. It uses a bonus scheme to enhance employee’s performance. This scheme is called as ASPIRE field pay and reward system. The scheme rewards each Net Promoter score (NPS) of 9 or 10 with £10. Virgin media considers the value of reward system at workplace. It benefits its employees with pensions, gratuity and other benefits. It provides certificates, promotions etc. to motivate employees. There are different strategies that are used by Virgin media for improving the performance of its workforce.

They are-

  • There is a scheme called NPS Hero championship. According to this scheme, an organization provides personal appreciation letter to its employees when they score 10.(Heinrichs et al, 2013)
  • SHOUT is also a strategy, under which an organization provides appreciation to its employees for maintaining organizational values and culture.

3.4 Examine the methods Virgin Media or your chosen organisation use to monitor employee performance.

It is necessary to monitor performance of employees so that an organization can determine the need of improvements and trainings in order to achieve organizational goal. There are some methods for monitoring employee’s performance-

  • Performance reviews- Performance reviews are done in order to track the performance and growth of employees. It calculates the progression towards achievement of goal. Performance review sheet is used for this process that contains all necessary information like interpersonal skills, time management, complaints handling etc. It is subjective in nature but it plays a vital role in assessing employee’s performance.(Armstrong and Armstrong, 2009)
  • Peer reviews- Peer reviews has been done to know the opinion of other employees. Reviews are recorded on a sheet that provides feedback for employees. It is considered as an important source of feedback for managers. Performance of employees can be tracked for different time periods that shows the positive and negative behaviour of the employees.(Edenborough, 2005)
  • Customer reviews- Customer reviews are important for an organization as customer is an important stakeholder for the same. Organization considers customer’s complaints and reviews to judge the quality of employee’s performance. An excel sheet has been prepared to know the status of product or service in the market. It is necessary for an organization to track customer’s complaints that can help in satisfying customer needs and demands.(Dessler, 2008)
  • Dashboards-Dashboards are used to track and determine employees’ performance. A matrixis prepared that is based on critical success factor of an organization. It is an objective way that is used by many organizations.

Norrbom, M. (2016). 2016/26 Dismissal of an employee with a disabled child was not discriminatory by association (DK). European Employment Law Cases, 1(2), pp.104-105.

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It is known that human resource department has the responsibility to handle the human resources by providing them trainings, guidance, assistance etc. They need to perform tasks like; performance appraisal, conflict handling, maintaining work life balance etc. Every organization has its own goals and it operates or works to achieve those goals. Human resource helps an organization to achieve the goals by putting their efforts and performing in the best way. Employees require motivation that makes them happy and inspires them to perform effectively. Motivation can be provided in monetary as well as in non-monetary terms. It can be in terms of certificates, appraisals, rewards, promotions, incentives etc. Proper training facilities should be provided, so that employees can convert their theoretical knowledge into practical work tasks. There should be a healt and safety, safe and comfortable environment for an employee that enhances their performance.



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  • Norrbom, M. (2016). 2016/26 Dismissal of an employee with a disabled child was not discriminatory by association (DK). European Employment Law Cases, 1(2), pp.104-105.


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  • Accessed on: 12th August 2016
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