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Human Resource Management and Personnel Management

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To: Phoenix Tannoy Ltd From: Hannah Moore, B...Right Subject: Human Resource Management and Personnel Management Date: 03/11/04 Introduction 1. This report discusses the historical development of Human Resource Management (HRM), identifies the role and purposes of HRM, and also to distinguish between personnel management and HRM. The Chartered Institute of Personnel and Development (CIPD) defines personnel management as "the part of management concerned with people at work and with their relationships within an enterprise. It aims to bring together, and develop into an effective organisation, the people within an business, having regard for the welfare of the individual and of working groups, to enable them to make their best contribution to its success." HRM may be defined as "a strategic and coherent approach to the management of an organisation's most valued assets: the people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage". The Nature and Development of Personnel management 2. HRM obtained acknowledgment in the late 1970's in the USA, as a label for the way companies such as IBM were managing their people. These companies applied the principles outlined by David Guest (1989) to gain a competitive edge over their competitors. These four principles are listed below. a) Strategic integration -"the ability of organisations to integrate HRM issues into their strategic plans, to ensure that the various aspects of HRM cohere and for line managers to incorporate a HRM perspective into their decision making". b) High commitment - "people must be managed in a way that ensures both their genuine 'behavioural' commitment to pursuing the goals of the organisation and their 'attitudinal' commitment, reflected in strong identification with the organisation". ...read more.


This is when the HRM approach began to appear, being backed by Maslow, Herzberg, and McGregor who shifted their attention to the higher order needs, as shown above on Maslow's hierarchy of needs. The new key to motivation of the workforce involved 'job satisfaction', which it was then believed, could not be achieved just from 'maintenance' factors like pay and working conditions. The governments influence on industrial relations, and the workforces continued until the mid 1970's in conjunction with social reforms in health and education. After this time the UK government did not interfere in collaborated relationships between the employer and employee, with the exception of trade union reform. In spite of that the latter half of the twentieth century saw extreme legislation in all sectors of employment. It was during this era that the industrial relations tradition suggests that the work and the responsibility of the personnel officer was to mediate and even arbitrate between the sides in industrial disputes, to facilitate collective bargaining, negotiation and compliance with the current industrial relations laws. As a response to the escalating speed of organisational expansion and alterations, the control of labour tradition suggests that the work and responsibility of the personnel officer is to support management by regulating the range of workplace activity. This includes job allocation, performance, absenteeism, pay, communication, training, and so on. The CIPD have endeavoured to establish personnel management as a career, by providing a programme of learning resulting in a qualification. However, many personnel managers do not posses this qualification and this is rarely seen as an obstruction within the career. ...read more.


were still accident that occur to labourers working in primary industries, but this became more shocking, as with the development of technology it was publicised by the media and made safer by improvements, as a company realised that its image was very important. A political and economic change is also evident through out history, for example in the 1970's when the government would no longer interfere with some matters between employer and employee relations, this is because it was realised that full employment was not as important as controlling inflation and other economic factors. Also HRM has become common through out the business world and is thoroughly integrated into the organisational structure of a business. This is because it has been found that companies use this approach in different strengths to achieve a competitive edge over their rivals. Today companies like Marks & Spencer, McDonalds, and even public sector businesses like British Gas are using various strengths of HRM. Recommendations 5. To draw conclusion, it is my recommendation that Phoenix Tannoy Ltd. consider establishing a HR department as it is shown in history that the use of HRM does give a competitive edge over rivals, by motivating employees. The reality is that by moving to a HR department Phoenix Tannoy will motivate its workforce by implementing policies and procedures that benefit all the staff. Motivated staff are then more committed to the organisation, and motivated into doing the best they can to help the business achieve its goals. Moreover, a HR department would remove the depersonalised face of the personnel department and make the company less bureaucratic. ...read more.

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