New Approach of Human Resource Management (Task 1)
Personnel Management and Human Resources Management approaches
Human Resources Management (HRM) has evolved from personnel management (PM). But the discipline of HRM is not just about a change of name. HRM is a strategic discipline because organizations recognise that people are the most strategic resources of an organization. The development of a true personnel function can be traced back to the 1930’s. There are four stages of development in PM: the welfare tradition (to manage the welfare of employees), the industrial relations tradition (to manage the relationship with the trade unions), the control of labour tradition (to control labour and manage recruitment and the discharge of labour) and the professional tradition (the more professional and structured approach to managing employees in work was needed). Mergers and acquisitions were a trigger for enhanced personnel functions. Complex organizational structures with different standards and policies needed to be brought under central control- to ensure real effectiveness of the emerging company. HRM today involves managing people just as you would any other resource. People are considered as intangible assets of an organization. The HRM process covers five main areas: planning, staffing, development and evaluation, compensation and maintaining effective workforce relations. More recent development is Strategic HRM. It looks at the processed by which people are managed, at how create a high-performance culture through appropriate leadership styles, and at how the workforce can collaborate and interact with one another to work as a team to win in the marketplace.
PM involves devising and monitoring rules whereas HRM helps encourage people to go beyond contract. PM focus on labour with marginal strategy whereas HRM focus on customers with central strategy. The management has indirect relationship with its people under PM whereas it communicates directly...