Human Resource Management
Terms of Reference2
Personnel Management (PM)4
Human Resource Management (HRM) 5
Differences between Personnel Management
and Human Resource Management6
Monitoring and Rewarding Employees8
Terms of Reference
The purpose of this repost is to identify through research and observation the main differences between the traditional view of Personnel Management (PM) and the newer method of Human Resource Management (HRM). It also aims to clarify the principles and procedures for monitoring employees and how Recognise and Reward schemes can operate. The report will then identify the rights and procedures relating to the exit of an employee from an organisation. The report will focus on the specific areas above in practice at the organisation NRAM and will support the evidence found with academic and theoretical research.
As mentioned in the terms of reference the report will focus on the organisation of NRAM. This is newly developed organisation which was created from the old Northern Rock plc. by the government, to repay the government loan given to Northern Rock plc. in 2008. NRAM is an organisation which is ‘winding down’ as more of the government loan is repaid. It is able to do this by having a large proportion of the company set up as a collections department with a strong focus on reclaiming mortgage arrears, mortgage redemptions and repossessions. At present it has a staffing level of approx. 4000 FTE from the CEO down to the frontline staff.
Personnel Management (PM)
Scientific/classical school of management theory can be clearly seen in practice as far back as 2500 years ago when Sun Tzu stated; ‘If words of command are not clear and distinct, if orders are not thoroughly understood, then the general is to blame.’ (Sun Tzu, 1983) Since then many have tried to play a part in the evolution of management theory and it is fair to say that Fredrick Taylor and Peter Druker had a major influence on Personnel Management theory. Personnel Management can be defined at an operational level as and administrative record keeping function and performs indirectly in relation to employees. Personnel Management put an emphasis on the necessity for managers to manage, rationality, clear objectives and fair terms and conditions of employment attempts to maintain fair terms and conditions of employment. PM theory assumes that by providing justice and achieving efficiency in the management of personnel activities would result in achieving organisational success eventually (Gupta, 2008).
Human Resource Management (HRM)
The latter decades of the 20th century saw an emergence of theories based on the new behavioural perspective towards people management after Taylors scientific approach was debunked by Elton Mayo’s Hawthorne studies which identified non-monetary factors as the main stimuli of productivity and motivation (Nayab, 2011) Human resource management focuses directly on the development and implementation of people strategies; these are then integrated with corporate strategies to assist in maintaining an organisation where the culture, structure of the organisation, quality of work, motivation and commitment of the employees contribute fully to the achievement of the organisational objectives. HRM is also focused on performing the more administrative tasks of personnel management such as human resource planning, recruitment and selection, employee relations, performance management, employee appraisals, training and development but now performs these functions with a direct, qualitatively alternative approach when compared to PM.
Differences between Personnel Management and Human Resource Management...