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Diploma in Business
Unit Number and Title
Unit 22 Difference between Personnel Management and HRM
In every organisation, there are different departments that are responsible for handling their tasks related to their department. Like finance department needs to handle all the financial aspects of the organisation, sales department needs to meet with their sales targets. Likewise human resource department needs to handle the activities related to recruitment selection, performance measurement, performance appraisal, payroll management etc. Human resource department plays an important role in an organisation as there is a workforce in every organisation who works for achieving the goals and objectives of the organisation. It is important to handle the human resource in proper way so that they can effectively contribute their skills and efforts to the organisation. They have to maintain a good relationship with the employees and help them in stress management and providing guidance whenever it is needed. Human resource department has to ensure that employee safety has been maintained and employees are provided with a proper environment to work with.
PM is the aspect that works as the link between the management and the workforce working at the workplace. It helps in managing the payrolls and wages of the workforce as well as the legal aspects. Nature of PM is administrative. It basically works to maintain a relationship between employer and employee within the organisation.(Onsongo, 2012) Human resource management refers to manage people within the organization in relation to providing training and guidance etc. (Sparrow, 2006)They are responsible for hiring human resource and develop them so that they can able to work in the organisation. They work for achieving different organisational goals as well as individual goals.
Diff b/w PM and HRM is as follows-
Basis of differentiation
Personnel management includes management activities that are concerned with the relationship between manpower and organisation.
It is an approach of management which is related with the effective use of manpower of an organisation in order to achieve the goals and objectives of that organisation.
Assumed as tools.
Assumed as an asset.
Approach used in this is traditional.
Approach which is used in this is modern
Flow of communication is not direct
It have a direct flow of communication
It works on daily basis
It involves functions that are strategic in nature.
Basis of pay
As per Job evaluation.
As per performance Evaluation.
It includes slow decision process.
It includes fast decision process.
In HSBC, performance evaluation is used as a way for determining the basis of pay by human resource department. To ensure that the performance of the employee is up to the mark, evaluation of the qualitative as well as quantitative aspects is being done. Their basis of pay is totally according to job evaluation. It is necessary that HRM of TESCO should provide proper set of training so that stress of the employees could be managed. On the other hand PM did not provide any kind of training so as to manage the stress of the employees working at the workplace. Assess how human resource management functions help your chosen organisation in achieving its purpose. HRM is responsible for many function and they have different roles and responsibilities that are need to be fulfilled. Audi is a British Company that is involved in manufacturing of cars. There are different managerial and operational functions in Audi.
Managerial functions are as follows-
Operational functions are as follows-
Performance evaluation is an important process for measuring performance of employees in Audi. Evaluation of the work done by the employees is being done so as to gather the information regarding whether the standards that are set for the performance are met or not. They believe in providing proper training and induction to the employees that can help in enhancing their skills.(Grieves, 2003) Training is an important requirement to perform the task in the best way. They are required to ensure that proper working condition should be provided to employees and there should be a safe and secure working environment. Human resource department has the responsibility of providing remunerations and rewards to the employees. Rewards refer to employee benefits that are given in addition to salary for motivating the employees. These benefits are perquisites, bonus, gratuity etc.(Sparrow, 2006) Human resource department works on stress management so that stress cannot affect the performance of the employees.
Responsibilities of line managers are-
In Audi, strategy formulation and performance management system is designed by line managers. They work to cope up with the changing business situations and other high level business activities. They are responsible to develop human resource policies and procedures.(Onsongo, 2012) It works on maintaining a healthy relationship between the employees and managers so that performance of employees and their motivation can increase. Because of all these reasons, managers can change employee’s attitude and behaviour. There are different front line managers in the organisation who are responsible to provide advice and guidance to the employees at the time of requirement. They provide time to time guidance to the employees so that it can control flow of work.(Sparrow, 2006)
Employee legislation is known as the body of law who works for maintain employee -employer relationship and safeguard their interest in relation to workplace. This regulatory and legal framework creates an impact on human resource management as they are responsible for the applicability of the prescribed Acts in the organisation. There are certain legal rules and regulations which are necessary to be followed by the organisations doing business in the market (Lussier and Hendon, 2013). The Acts which are followed by Audi are-
HRP provides a set direction to the management regarding the requirement of human resources at the workplace. It is important to achieve goals. Without planning, nothing can be done in a proper way. Planning of human resources ensures the availability of current human resources as well as their future requirements. It helps in developing the strategic plans and helps HRM to manage the work accordingly. HRP ensures availability of human resources at right time and right place. It helps an organisation to acquire individuals with right skills. Firstly, HR department evaluate the number of candidates available at the workplace then assess the future requirements and take actions accordingly by developing a program so as to fulfil organisational needs.(Jones, 2008)
The main reason that describes the human resource planning are-
Planning can helps a process to be conduct in a proper way. It helps in proper implementation of the plans and can determine the future requirements of human resources.
HRP is a lengthy process in which there are many steps. All steps have their own importance. These steps includes-
Human resource planning policy plays an important role in recruitment process, as current recruitment process has some deficiencies that can be fulfilled by proper planning. Candidates appeared in telephonic interview first. The questions that were asked are irrelevant and they are not matching the requirements. These are the questions that should not be asked in telephonic interview because of irrelevant nature.
Process used to recruit and select the people by HRM is:
Screening interview- HRM conducts screening interview of the candidates. Certain direct questions are asked by the interviewer in a telephonic interview. Candidates who are unqualified or do not have effective communication skills are eliminated in this round.
Selection Tests- Selection tests are the tests which are undertaken to know about basic capabilities of an individual as per the requirements of the job. These are of different types like aptitude, psychometric test, general knowledge etc.(Jones, 2008)
Interview- Interview is a process in which direct questions are asked to an individual based on his education, experiences, trainings etc. This involves more time as recruiters analyses a candidate in a very deep manner so that they can ensure the authenticity of candidate.
Background verification check- It involves overall verification of background of the candidates, his past experiences etc. This is important and adopted by most of the organisations because usually candidates lie about their experiences and education.
Recruitment and selection process involves the overall procedure of hiring an employee.It shows the criteria and skills of an individual that are required by an organisation. Every organisation plans their recruitment and selection process according to the job specification and what qualifications they need in their employee. Improper recruitment and selection leads to more employee turnover.It is very important to identify the skills and qualities of an individual because it is necessary to hire right candidate for right profile. Recruitment practices should not be very complex because it can create difficulties for the organization as it is not able to find out the suitable candidate because of the crucial recruitment process.
Cadbury has a proper recruitment and selection techniques. It is important to consider both internal and external candidates for recruitment. Internal recruitment is more effective as there is no induction and training cost involved the employee that is hired from an internal recruitment is known to the organisation and it helps him to understand things quickly.In internal recruitments, an organization can easily rely upon a candidate because of the reference already exist in the organization. It becomes less costly as well as less time consuming for an organization behaviour. Selection techniques are based on interviews and other test in those candidates are judged on different basis. As Cadbury believes that it is essential for an organization to test the different capabilities of the candidate, it conducts different tests and It decides the selection by evaluation of the tests. With the help of various selection techniques, an organisation can find out the best suitable candidate for the organisation.(Onsongo, 2012)
Virgin Media was formed at the time of NTL merger. It is an international cable company. Employees are treated as an important asset in virgin media and it uses many techniques for the motivation of employees. Motivation is an important part of an organisation as it influences the performance of employees in an organisation. It can make an employee more comfortable with the organisation and create a sense of belongingness within them. By adopting motivational practices at work, an employee can ensures that organisation have employees who are dedicated to achieve goals and objectives of the organisation. Employees who are motivated can easily accept challenges and can take responsibilities. They always provide helps and guidance to their juniors and colleagues. Negatively motivated employee shows dullness and is unable to provide an effective outcome.(Jones, 2008)
Virgin Media believes in providing many rewards to employees for motivating them. It uses motivational schemes like ASPIRE field pay and reward system and different benefits that includes health benefits, pensions etc. There were certain researches that were done by Fredrick Herzberg in which he evaluated that there are two aspects that are important for every organisation they are motivational factors and hygiene factors. This theory is also known as two factor theory of motivation. Maslow provided a hierarchy in which information related with the needs of the employees is given which helps them to remain motivated at the workplace-
Job evaluation has been done by a predefined procedure. It includes meetings in that employee’s performance and their review has been discussed in relation to the objectives. They make plans according to employee’s performance so that they can determine the progress of the organisation. It results in more fairness and consistency as it offers chances in increase salaries of employees. Virgin media has adopted an approach that is concerned with “doing right things’ so it can make people happier and increase efficiency of their performance (Obeidat, 2012). It uses corporate social responsibility initiatives that ensure that workers could move on the path which is full of opportunities and could motivate themselves. Job evaluation consists of this following procedure-
Rewards are considered as one of the most effective way for motivating employees. Virgin Media has adopted different ways by that it can motivate its employees. It has adopted a bonus scheme that affects performance of the employees. This scheme is known as ASPIRE field pay and reward system.(Grieves, 2003)
It is important to monitor the employee’s performance as it shows the contribution of employee’s efforts towards the goal. The ways of monitoring employee’s performance are-
The Chicken Master was run by Bob in whom Faisal was employed to manage the work. It is claimed by Bob that Faisal was running his home business in the working hours and was also using the assets of the company for personal use. According to the claim made by Bob, Faisal has violated the policies of the company (Grieves, 2003. There were several warnings given by Bob to Faisal but he continuingly indulged in the practices of breaching the policies of the company. By not seeing any kind of change in Faisal, Bob decided to terminate him from the job.
Employee cessation can be done for several reasons they are:
Employment exit procedures refer to the professional termination of an employee from an organisation. It consists of the employees that are terminated from the organisation or that have resigned.The exit procedures used by Chicken Master are as follows-
Dismissal- Dismissal is a situation when an employer ends the employment contract due to a genuine reason. Types of dismissal are as follows-
Fair Dismissal-It means when an employee has dismissed due to a fair reason. It can be-
Unfair Dismissal-It is a situation where there is no fair and authentic reason for the dismissal of an employee. Reasons may include race, colour, caste, unfair compensation etc. There are different penalties for the organisation that uses this practice. (Shepherd, 2006)
Constructive Dismissal- In this employer breaches the laws of contract due to which employee resigns from the workplace. Employee has the right to claim the dismissal in some circumstances like-
Wrongful Dismissal-Decisions made by the employer to terminated the employee without providing proper reason or terminating the employees for non performance of any illegal activity.
Own will Resignation- It is a situation when employee doesn’t want to continue to work with an organisation because of any reason. He requires serving notice period and fulfilling all the requirements that are prescribed.
Employment exit procedure used by Tesco are-
It is important for the management to give a proper reason before dismissing the employee from the organisation. It is necessary that employee should follow all the ethical aspects and behave in a proper way at the workplace. There certain legal processes set by the advisory which are necessary to be followed by the employees. Employees should have the proper set of information regarding the employment right act and should work accordingly at the workplace (Armstrong, 2003).
The rules for dismissal and redundancy-
Dispute resolution- To lay down the organisation’s requirements to adopt a proper procedure in relation to grievances and discipline. Provides employee’s right related to employment disputes.
ACAS code of practice- It shows that the fairness of dismissal is sufficient or not. It is important to guide employees regarding ACAS code of practice. For ACS code of practice on Disciplinary and Grievance procedures, there is not any specific law. So, if an organisation fails to apply it, then it is not assumed as an unfair dismissal.(Lussier and Hendon, 2013)
Human resource department has its own importance in an organisation as it is responsible for handling many tasks includes selection, training and development, grievance handling etc. It is important for an organisation to use its resources in an effective and efficient way so that it leads to achievement of goals and objectives. Human resources are the employees or the workforce of an organisation that contributes their efforts, skills and knowledge in fulfilment of objectives. Employees should be provided with safe and healthy working conditions so that they can remain motivated and feel comfortable. It is important to provide them rewards for their achievements and make them feel proud. Organisations also provide monetary as well as non-monetary benefits to employees for motivating them.
Armstrong, M. (2003). Job evaluation. London: Kogan Page
Grieves, J. (2003). Strategichuman resource development. London: Sage Publications.
Lussier, R. and Hendon, J. (2013). Human resource management. Thousand Oaks: SAGE Publications
Onsongo, E. (2012). Role of a developed Reward system on employee Retention. Saarbrucken: LAP LAMBERT Academic Publishing
Sekhri, A. (2010). Human resource planning and audit. Mumbai [India]: Himalaya Pub. House
Shields, J. (2007). Managing employee performance and reward. Cambridge: Cambridge University Press.
Sparrow, P. (2006). International recruitment, selection, and assessment. London: Chartered Institute of Personal and profesional and Development.
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