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Research Work:

In large and complex organizations there are differences between Human Resource Management and Personnel Management. Describe, Clarify and analyse these

differences and use two of the following functional areas to illustrate how they differ in practice.

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Table of ContentsINTRODUCTION:.....................................................................................................................................3

MANAGEMENT:.......................................................................................................................................4

PERSONNEL MANAGEMENT:...................................................................................................................4

FUNCTIONS OF PERSONNEL MANAGEMENT:......................................................................................4

HUMAN RESOURCE MANAGEMENT:.......................................................................................................5

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:..........................................................................7

HRM versus PERSONNEL MANAGEMENT:.......................................................................................7

HRM FUNCTIONS IN DETAIL>>>>......................................................................................................8

RECRUITMENT & SELECTION:............................................................................................................8

RECRUITMENT STRETEGIES:....................................................................................................................8

SELECTION STRATEGIES >>EMPLOYMENT DOCUMENTATION:.............................................................11

SELECTION TESTS:..................................................................................................................................11

SELECTION METHODS:...........................................................................................................................12

CONSEQUENCES OF INEFFECTIVE RECRUITMENT PROCEDURES:....................................15

TRAINING AND DEVELOPMENT In detail>>...............................................................................................16

TRAINING:..............................................................................................................................................16

DEVELOPMENT:.....................................................................................................................................16

DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT:.......................................................................16

TYPES OF TRAINING:..............................................................................................................................16

WORK DESIGN ACCORDING TO DEVELOPMENT NEEDS:........................................................17

THE TRAINING CYCLE:.......................................................................................................................17

TRAINING NEEDS ASSESSMENT:............................................................................................................18

DESIGN TRAINING PROGRAMS:.............................................................................................................18

DEVELOP MATERIAL:.............................................................................................................................19

DELIEVER TRAINING:..............................................................................................................................19

>>TRAINING METHODS:....................................................................................................................19

TRAINING EVALUATION:.................................................................................................................19

IMPORTANCE OF TRAINING AND DEVELOPMENT:....................................................................................19

REFERENCES:.......................................................................................................................................21

BIBLIOGRAPHY:....................................................................................................................................21

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APPENDIX:.................................................................................................................................................22

INTRODUCTION:Following is the mini literature review discussing the differences between HRM and Personnel management. Functions of the HRM are discussed in detail along with the detailed note of two of the major HRM functions which are Recruitment & Selection and the other one is Training and Development. I used academic theories and models where I found it necessary to weigh my own analysis. Conclusion of every major function is at the end of their own description instead of being in the end before the list of references. I changed it just to make it more clear what are the importance or the demerits of these 2 major function.The review is in the report format.

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MANAGEMENT:As the Classical approach given by Fayol. H., (1841-1925), the management constitutes 4 things in it. Which are,

1. Planning2. Organizing3. Co-coordinating4. Controlling

“According to this approach if you divide your work into different components it’s much easier to manage your work and you can work effectively”. Managing work is usually utilizing your labor in maximum way and it is about putting the right people at right tasks.The other good point of management is that it directly deals with the people. Employees are the real possessions of any company and the management is about organizing them.The power of the employees of any organizations could be seen by this statement given

by John Diebold, Chairman of consulting firm Diebold “It would be hard to find a

corporate annual report in my country that does not state "Our most important asset is

our people"- yet our accounting rules make it literary impossible to reflect this on the

balance sheet”.

PERSONNEL MANAGEMENT:Started When: It started in the industrialist era of early 19th century. There was the carrots and sticks system of rewarding the employees.Late 19th Century: In the late 19th century, some welfare officers were recruited in the organizations that look after the employee’s welfare and rewarded them suitably.After World War II: After World War 2 when everything was destroyed and the organizations were facing low labor and many factories were shuttered down, that time UNIONs were formed for the people. It was a good time for employees and for the collective bargaining.

FUNCTIONS OF PERSONNEL MANAGEMENT:Following is the sample structure of personnel function in which the personnel manager is the one who is looking after most of the administrative work in the organization. He is the head of the training and development department as well as he looks after administrative block too. The health, welfare and safety is on his head too. This is the drawback of personnel management as

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Personal Manager

Personal officer personnel officer personnel officer personnel assistant(training and (Health, safety & (administration)development) welfare)

Personnel assistant

(Rumenaration)

Personnel office

Figure 01: Torrington. D., (1987) “Sample structure of the personnel function in an autonomous establishment”

HUMAN RESOURCE MANAGEMENT:As is evident by the name HRM is bit like personnel management but is totally different on the other hand as well. According to Noe,et al., (2003) “human resource Management (HRM) refers to the politics, practices and systems that influence employees’ behavior, attitudes, and performance…HRM practices include analyzing and designing work, determining human resource needs, attracting potential employees, choosing employees, teaching employees…,rewarding employees, evaluating their performance and creating a positive work environment. ”

HRM is solely about Personnel and Human resource management and train

them as per needed. As said by Thomas A., (1948) “Companies...have a hard

time distinguishing between the cost of paying people and the value of investing

in them.”

Human resource management is vast in its nature. It deals with everything that

could possibly happen in the organization and according to the HR departments

of the HR management it solely deal with the related persons. From absenteeism

to disciplinary procedures accounts to workplace culture to contracts. Everything

comes under the heading of HR management.

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Figure 02: “Human Resource Management” adapted from: http://www.citehr.com/members/178089-blessenrajan10-albums-human-resource-management-picture402-chart.gif (accessed on 26th November, 2009)

As shown in the following example of the strategic HR management the performance of the company is totally dependent on the recruitment and the selection if the selection is done properly and effectively it directly effects the performance of the employees and the company. Performance in turn leads to the career path and shows the new horizons of career planning for the employees.If the Results are more than good, this ends up in the rewards for the potential employees.

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Figure 00: “Strategic HRM” Adapted from: http://www.ace-alliedconsultants.com/assets/files/content-images/human-resource-management.png (accessed on 26th November, 2009)

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:Functions of the HR Management are as follows:

RECRUITMENT & SELECTION: It deals with the recruitment and selection of the employees. The basic formalities for the recruitment are followed and then they are shortlisted or employed according to the organization rules.TRAINING AND DEVELOPMENT: It deals with the employees training and developing some particular skill in them. It could be on the job or off the job which is totally dependent on the nature of the task.EMPLOYEE REWARDS: Employees are rewarded suitably if they add up their efforts in the organization. This could be in the form of promotion bonuses and what not. It is really helpful in motivating people.EMPLOYEE RELATIONS: another function of the HRM is that it build up good relationship with their employees to retain them and to stimulate them.PERFORMANCE: HRM gives the appraisal to the performance of the employees.

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HRM versus PERSONNEL MANAGEMENT:

1. Personnel management is classic in its nature as it is an old view to deal within the organization whereas the HRM is more vast. It deals with the people and is the new way according to the needs of the 21st century.

2. Personnel management is short term as in contrast to HRM which is based upon long term strategies. HRM in result is much more effective in the reference of making profits, dealing with the organization personnel and as for the customer satisfaction.

3. Personnel management dealt with the employees collectively which resulted in the non satisfaction of the employees and made it hard for the personnel manager to understand the employees needs and wants whereas HRM deals individually be it the employees or the customers and it makes it more efficient as an HRM manager understands every need of his employees and the best part is that being too much in contact with his employees he could recognize very well what task to assign to what person according to his level.

4. There is no concept of team work in the personnel management as it focus in the individual performance whereas HRM appreciates team works

5. Personnel managements is rigid in a way that it is bureaucratic as in the term of authority. There is just one person usually at the top who is looking after everything and is solely responsible for the decision making inside the organization and this leads to the misuse of power too sometimes. As for HRM it is organic and is democratic in its nature. There are different functions of HRM and there is usually one highly official at every functional department who has the authority and the power of decision where no one bothers him.

6. Personal management is more administrative as it focused on the administrative blocks as in payrolls, salaries, working all on the law and other related jobs. Human resource management on the other hand are responsible for managing the workforce as dealing with the human resourcing part of the management.

7. Personal management is reactive in a way that there is no already devised way if some problem come up and the management have to deal with it on the intuition base. HRM whereas is proactive, they think of the strategies first. If some problem come up they know what to do or at least they have the way to check out the consequences.

8. Personnel management as in the motivation term, give employees the bonuses or the other rewards to motivate them so it means that personnel management provides the motivation which is necessary to the job performance. HRM holds that the improved performance of the employees leads to the employee satisfaction.

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HRM FUNCTIONS IN DETAIL>>>>

RECRUITMENT & SELECTION:Bratton and Gold., ( 2003) explained recruitment as “the process of generating a pool of capable people to apply for employment with an organization” and selection as “the process by which managers and other use specific instruments to choose from a pool of applicants.”

Every person has different attributes and different living styles and so does the mental approach People are recruited and selected according to their personality traits. Seven point plan given by Rodger (1952) states the same. His seven point plan included

Physical characteristics as: (1): Eye sight, general health (2): Height, general appearance, build and voiceAttainments: (3) Qualification (4) ExperienceIntelligence: (5) general level (6) Power of reasoning (7) Analytical AbilityKeeping almost these points in minds people are recruited and selected in any organization. And Hr departments of any company look out for these attributes in persons and devise the selection methods accordingly

.

RECRUITMENT STRETEGIES:Recruitment strategies are as follows:

DETERMINING THE VACANCY: Determining the vacancy is the 1st step on which all of the recruitment and selection process is based. Potential vacancies occur when some person from the organization leaves the job So the question which arises here is that the gap is to be filled by some person from the organization or to recruit some other person out the organization. Torrington. D., (2002) explained the important notes which should be kept under consideration while determining the vacancy as “1. What does the job consists of?2. In what way is it to be different from the job done by the previous incumbent?3. What are the aspects of the job that specify the type of candidate? ”

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RECRUITMENT ADVERTISING: The outlines of different types of advertising which could be used for recruitment given by Torrington. D., (2002) are as follows:

ADVERTISING MEDIA: To think of the advertising media is the next thing to do. There are many levels of person’s living standards that access different kind of advertising resources. This is even dependent on the circulation of the news.

Different Advertising media’s as stated by Torrington. D., (2002) are following:

Figure No 03: ‘Advertising Media’

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Internal advertisement :as in intranet which is in the organization so people from the org. could apply

Vacancy lists outside premises: Economical way of advertising but is less likely seen by people

Advertising in National press: Accepted medium for those who are seeking for information

Advertising in local press: Best for those who seeking local employment

advertising in technical press: good for specific population with very minimum waste of money

Advertising Media

News papers

Journals & magazines Billboards T.V Radio

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DRAFTING THE ADVERTISEMENT: For drafting the advertisement, following points should be noted as stated by Torrington. D., (2002):

Figure No 04: Drafting the advertisement as given by Torrington. D., (2002)

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Name and brief details of the employing organization

Job and Duties (at particular post)

key points of personal specifications(which age

group+ How much qualified)

Salary (of the post)

What to do next (how to apply)

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SELECTION STRATEGIES >>EMPLOYMENT DOCUMENTATION:For the selection strategies following points should be taken care of:

SIFTING APPLICATION: Sifting applications is the way of recording applications. Following three types are included in this process:

Figure 05: 3 ‘Types of sifting application’

SHORTLISTING FOR INTERVIEWS: Next step in selection is short listing the applicants. Members of the personal department often shortlist applicants for interview in conjunction with the line manager. On some occasions this shortlist may be compiled by organization personnel alone.

RESERVE APPLICATIONS: As discussed in the class, the instructor stated that “Organizations keeps CV banks”. This is not the part of selection actually but it is good for future as if any opportunity arises in the future, you could check those person who were in the CV banks. This saves the cost of advertising.

SELECTION TESTS:Following are the different kind of tests which possibly could be used in the selection processes:

Intelligence tests: Every person living in different kinds of groups have different approaches in solving something. The way you think and solve your problems is totally dependent on the intelligence level. Other factors which could affect anyone’s intelligence are health, age, gender, race etc.“According to Dr. C. George Boeree of Shippensburg University, intelligence is a person's capacity to (1) acquire knowledge (i.e. learn and understand), (2) apply knowledge (solve problems), and (3) engage in abstract reasoning.” So to cover this aspect of human nature different IQ check tests are evolved to know the person’s mental stage which could be helpful in the future in any organization.

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Those applicants who meet minimum criteria

Those who meet criteria fully

Those who exceed criteria

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Aptitude tests: For staffing and assessment purposes, tests like the Personality and Preference Inventory (PAPI), Rust Alpha, Situational Judgment Test, GTIOS Psychometric Test, PSL and Watson Glaser critical thinking test are the popular ones.

Personality tests: According to Searlie. R., (2003) the approaches which are commonly used for personality assessment are following:

1. The psycho dynamic approach: This approach explains human behavior in terms of unconscious motives and hidden intentions.

2. The biological approach: These approaches emphasized on the role of heredity and biology in personality formation and development.

3. The behavioral approach: “The behaviorist perspective challenged the term ‘personality’.” Searlie. R., (2003)So to check some one’s personality behavioral point are checked first to know his habits, habitual responses, conditioning and shaping of behavior.

4. The social-cognitive approach: These approaches emphasize much on the cognitive and social approaches. The learning approaches in accordance with the personality are the focus of these approaches.

5. Trait-based approach: This kind of approaches dominates the today’s world, specially the recruitment and selection part of the organizations.

Applying Personality Tools:Two terms known as “Traits” and “Types” are the key distinction to the personality check approaches. Type theories which have been used in the past and now are the oldest in nature. These type theories classify an individual of what kind of person he/she is? What are his capabilities? How he could fit into an organization? Basically these theories classify “individuals into a particular group who show the same preferred behaviours.” Searlie.R.,(2003)POPULAR TESTS for “Type” personality check are Myers-Briggs Type Indicator and Belbin’s Team types Tests.

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FIGURE NO : Myers & Briggs Typology Adapted from: http://images.google.co.uk/images?sourceid=navclient&rlz=1T4ADFA_enGB350GB350&q=myers-briggs%20typology&um=1&ie=UTF-8&sa=N&hl=en&tab=wi (Accessed on 22 november,2009)

In contrast to the type theories, the trait approaches are concerned with the differences between person’s traits. “Examples of trait-based models of personality include Eysenck’s EPQ model, Cattell’s 16PF or Saville and Holdsworth’s occupational personality Questionnaire (OQP).” Searlie.R., (2003)

SELECTION METHODS: 1. Application Forms: These are used to know about person’s particulars and

preferences.2. Telephone Screening: This could be used instead of application forms if speed

is particularly important. 3. Testing of integrity: This is used to measure the potential employees honesty

and integrity.Approaches which are used in the testing of integrity are as follows:

Use of written test: Story telling: Corroboration of references:

4. Interviewing: This could be face to face, on the phone or taken by some other person outside the organization for the particular comp-any. The strategies involved in the interviewing process are as follows.

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5. Group Selection methods and assessment centers : The assessment centre is not some place, but a process which is designed to measure multiple criteria’s. The techniques which are used in it are as follows:

Individual exercises One to one exercises Group exercises Self assessment exercises

6. References: These are the factual information’s about the candidate periods of

previous employment in any other organization. These are usually consists of the opinions of them about the candidate personal character and way of behaving with others.

SELECTION PROCESS IN DIAGRAM:

Here are the basics of the selection process as discussed earlier.

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FRANK AND FRIENDLY STRATEGY

PROBLEM SOLVING STRATEGY

STRESS STRATEGY

SWEET & SOUR STRATEGY

SCREENING INTERVIEW

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FIGURE 06: Selection process as given by Cole (2000)

CONSEQUENCES OF INEFFECTIVE RECRUITMENT PROCEDURES:The consequences of the ineffective recruitment procedures does not play good role in overall productivity of the company. Schultze. H., (1994) CEO of coffee chain Starbucks stated once “I believe in the adage: Hire people smarter than you and get out of their way”. And so is true for the recruitment procedures. As I explained earlier that all of the HR functions though they are different in nature but they depend much on the recruitment and selection process so if you make a single mistake in the start may be you have to stick to the same mistake for many of the years because once you hire people it’s really hard to get rid of them at times. Secondly, wrong person recruited, will make the managers do that work or to think of that work more than their own’s. So it’s hard for them too to focus on their own jobs as well. Another bad image which could be created in an outsider’s mind is that they will think of the organization as wrong just because of some employee. A constant turnover of staff can bring about a low morale in the remaining staff; The work standard will diminish with the passage of time and higher absenteeism could occur too in the organization.

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References

Selection decision

InterviewsSifting or short listing process

ApplicationApplication forms,c.V’s, letters

Selection testsIntellectual, ability, Aptitudes, Personality

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TRAINING AND DEVELOPMENT In detail>>

TRAINING: Training refers to the new specific methods which are used to give the new employees or existing employees the skills to perform some particular function. For example giving computer education to some managerial person for some particular purpose.

DEVELOPMENT: Development as in the view of pepper.,(1984) is “ the objective is to acquire a set of capabilities which will equip a person to do a job sometime in the predictable future, which is not within his present ability.” Development is bit different from training in this as it focus on the employee in much broader sense and make them ready for some job which could happen in the future and they could use it readily.

DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT: Training is:

About learning some specific skills It is short term Training is usually some enhanced ability to perform specific task It deals with the current situation

Development is: It is vast in its nature. Not specific in learning some new skills and capabilities. It is long term. It is enhanced ability to perform several tasks. It is futuristic.

TYPES OF TRAINING:Types of training according to the needs are as follows:

1. Skills training:2. Retraining:3. Cross-functional:4. Team training:

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5. Creativity training:6. Literacy training:7. Diversity training:8. Customer Service:

WORK DESIGN ACCORDING TO DEVELOPMENT NEEDS: Before training, the work design should be made according to the development needs this could be seen in the following flow sheet:

FIGURE 07: Noe. R. ,(2003) “Developing a work-unit analysis”

Before developing any training these points stated above should be analyzed? What equipment is needed for the training? What actual skills you need to be in your employees? What raw information is needed for the training methods? How are you going to access the output when training is finished?

THE TRAINING CYCLE:The 5 steps included in training cycle are as follows:

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Raw InputsWhat materials data, and information are needed?

EquipmentWhat special equipment, facilities, and systems are needed?

Out putWhat product information, or service is provided?How is the output measured?

Human resourcesWhat knowledge, skills, and abilities are needed by those performing the tasks?

ActivityWhat tasks are required in the production of the output?

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FIGURE 08: The training cycle/ process.

This cycle in detail is following:

TRAINING NEEDS ASSESSMENT:The Gap which is in between the current skills of the employees and the required skills for the employees is assessed through the training. Assessment need could be done at organizational level or at the Job level or at the individual level.

DESIGN TRAINING PROGRAMS:Training programs are designed according to the skills and needs of the company. Different persons have different style of learning. 4 styles of learning according to Honey and Mumford (1982) are following:

Activist: who act immediately on the base of previous knowledge without thinking.

Reflectors: These are the ones who keeping their previous and new experiences in account and then work on it.

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Training needs assessment

Design training program

Develop material

Deliever training

Evaluate

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Theorists: These types develop a theoretical understanding first and then act on it

Pragmatists: These are much innovative types. They usually evolve a new way of doing things.

So the training programs are designed keeping these four types in mind to gain the effective results.

DEVELOP MATERIAL: Training programs are developed according to the skills and needs of the company.

DELIEVER TRAINING:Training is delivered through these following methods.

>>TRAINING METHODS:>>>>>>>Some of the types of training methods are as follows Audio-visual techniques:

1. Computer based training:2. The case study methods:3. Management games:4. Outside seminars:

>>>>>>>Other types of trainings are:1. On the job training: You do the job and someone is assigned to guide you, this

is on the job training and it is considered best.2. Job rotation and Traineeship and field training: Job rotation helps the

employees to do different jobs in the company and they understand other jobs better then. Field training is something where you do the things practically.

3. Simulation: The most familiar example of simulation is the one of training pilots. The trainee is actually allowed to fly the plane and they are equipped with the simulation equipment which lessens the effect of fatal mistakes made by trainees on themselves and on the instructors.

4. Lectures: Lectures usually contains all the theoretical and the practical work altogether made be the lecturer. This is good too as it allows the trainees to satisfy their theoretical experiences.

5. Group Methods: Group methods are effective in a way that different people having different experience when put together it makes other learn from that.

6. Behavior Modeling: This training is based on the social learning theory. It demonstrates the right way of behaving and is good for HR people.

7. Self-paced learning: It is usually said : self done is well done. So keeping your own pace with self learning is the key of this method.

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8. Job Instruction training: It is the way of listing of each jobs basic tasks with the key points to make the new internees understand what is it all about.

9. Programmed learning: this is the learning in which the trainees are bestowed with the basic and theoretical knowledge and then their answered are checked along with checking their accuracy.

TRAINING EVALUATION:Every organization has to evaluate the results of their training in different areas whether it worked or not. Is it the proper knowledge what they have gained?Is it good for their future use?How effective was the training?Is the organization going good on the training?Whether the methods were good enough for the trainees?How to measure the knowledge they have gained?

Training is the kind of an investment for an organization. You invest in it now and get the results when you are in need of it. So a manager has to decide all the questions stated above. And have to evolve the way to check out the results and effectiveness of the training.

IMPORTANCE OF TRAINING AND DEVELOPMENT:The importance of training and development is as follows:

1. It is important if you want to sustain in the business world which is really competitive in its nature.

2. As the technology changes, the job requirements change too with the passage of the time. So there training is necessary to understand those changed things.

3. For the diversity of the work force, training is necessary so they have more know how about things and they could compete better.

4. The trainees or the internees who are new in the organization, with training, know things better and it helps in their career development and show them the new horizons of jobs.

5. Employees who work in the organization and are the potential ones. Would always like to grow. So for the employees growth training is necessary.

6. It is good to develop the confidence of the employees. They work with much more intensity if they know how certain things work.

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CONCLUSIONS:Management is the basic of any organization. And HRM is the vast field which is now the most researchable topic of the world. The world is at the revolutionizing spot as it had been ever. And the same is happening in the organization. Personnel management seems long forgotten and the various functions of HRM are being followed. Recruitment and selection which is the step ladder of the HRM is of much importance here and the same is with the training and development. There are various methods to develop and implement the training needs and are discussed in this literature review.

REFERENCES:1. Fayol, H. , 1917(in French), Administration industrielle et générale; prévoyance,

organisation, commandement, coordination, controle, Paris, H. Dunod et E. Pinat, OCLC 40224931

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2. Torrington. D., Hall. L., (2002), A new approach Personnel Management,London: Prentice-hall International (UK) Ltd

3. Noe. R. ,Hollenbeck. J. ,Gerhart. B., Wright. B. ,(2003), Human Resource Management, 4th ed. New York: McGraw-Hill Companies,Inc.

4. Bratton. J. , Gold. J. , ( 2003), Human resource Management: theory and practice, 3rd ed, Palgrave Macmillan

5. Searlie. H. R.,(2003), Selection & Recruitment: a critical text, United Kingdom: The Open University.

6. Honey, P., Mumford, A. (1982), Manual of Learning Styles, London: P Honey7. Rodger, A. (1952), The Seven Point Plan, London: NIIP.

BIBLIOGRAPHY:1. Honey, P., Mumford, A. (1982), Manual of Learning Styles, London: P Honey2. Fayol, H. , 1917(in French), Administration industrielle et générale; prévoyance,

organisation, commandement, coordination, controle, Paris, H. Dunod et E. Pinat, OCLC 40224931

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