To What Extent Does the Human Resource Management Differ From Past Management Practices - Essay Example

Student’s Name: Professor’s Name: Subject: The extent to which НRМ differ from раst mаnаgеmеnt рrасtiсеs Date: То what ехtеnt dоеs НRМ differ from раst mаnаgеmеnt рrасtiсеs? Introduction Human Resource Management (HRM) has become the dominant approach to people management across the world. HRM is defined as an encapsulated employer-formulated policies and practices that take into consideration the utilization and management of employees who are viewed as business resources within the context of an organization’s overall strategy to improve the productivity and competiveness level of the organization (Trebilcock 2011). For centuries, practitioners and academics have created theories and practices to provide a detailed explanation of the influence of human behavior at workplaces. As a result, HRM has developed into a practice that includes ideas and techniques from different aspects of these theories and practical tools. It is important to note that HRM is a detailed view of themes and concepts developed from the long history of work as well as the more recent theories of management and social science research. A number of concepts integrated into broader management approaches have contributed to the modern management thinking, and thus the development of HRM. Therefore, it is worthwhile to note that the history of people management-of HRM deeply lie in the past (Alan 2007). Today, HRM is differentiated from past management practices such as industrial relations and personnel management because it emphasizes more on work organization techniques, recruitment and selection, employee performance appraisal and training as well as upgrading of employees’ skills and career development together with direct employee participation and communication (Trebilcock 2011). The study focuses on the key differences between Personnel Management and Human Resource Management practices, Industrial Relations and Human Resources Management and Hard vs. Soft Human Resource Management The difference between Personnel Management and Human Resource Management approaches By considering the difference between personnel management as one of the past management practices and human resource management as the modern approach toward people management within an enterprise, it is notable that personnel management basically entails administrative record-keeping function that focus on establishing and ensuring equitable terms and conditions of working. On the other hand, human resource management integrates the traditional functions of personnel management to include, corporate goals and strategies as well as executes extra people-centered developmental activities of an organization. A part from the functional activities such as man-power planning and recruitment, job evaluation and performance appraisals, payroll and training administration as well as labor compliance which are performed under the scope of personnel management, HRM also includes other organizational developmental functions such as leadership and motivation, creating culture for organization and enhancing communication of shared values. This implies that HRM is a modern approach to management that is often integrated to an organization’s core strategy and vision as a way of optimizing the role played by human resource in fulfilling the organizational goals. Due to its strategic and philosophical context, therefore, HRM can be considered as more purposeful and effective than the traditional personnel management approach (Nayab 2013). In the past, the personnel manager of a given firm was delegated with the task of ensuring employee welfare as well as interceding for both management and employees. However, in the recent times the personnel manager has been replaced with HR manager. Due to the recent emergence of resource centric organizations, it has become crucial to put “people first” and secure management objectives which include the capability of maximizing the Return on Investment (ROI) specifically on the resources. As a result, modern HRM function has been created through which to ensure the fulfillment of management’s objectives in collaboration with the ability to take care of the needs of resources. Based on this function, it becomes relevant to mention that HRM is different from personnel management not only because of its broader scope but even in the manner in which its mission is stated. It is apparent that human resources management goes extra level of the administrative role of personnel management to include a broad vision of determining and assessing how management would value resources in relation to the performance and success of the organization. Generally, HRM indicates a shift in focus and strategy based on the needs of contemporary organizations, while personnel management was basically about mediating management as well as employees’ needs. Furthermore, a number of experts perceive personnel management as being workforce focused, and HRM, on the other hand, as resource centered (Management Study Guide 2015). Personnel management commonly focused on the operational aspect of an organization, promoting technical skills as well as day-to-day functions the organizations such as recruitment and selection, training and development, employee relations and salary administration. However, HRM was developed as being proactive-to view people in the organization based on economic terms as assets or simply costs which need to be actively managed. This implies that HRM emerged strategically as a distinctive way to tie the people management function to business objectives of an organization. It is different from personnel management because it emphasizes on the need for organizations to manage people and not necessarily employees so as to ensure sustainable interests of the business. Whereas in the personnel management required the personnel manager to adopt piecemeal and sophisticated techniques to select the right people, it is worthy mentioning that HRM integrates these in a more meaningful and organized working framework. Human resource management looks at each element needed to align it well in a manner that ultimately meets the business needs of the organization (Alan 2007). The crucial role of HRM is reflected in the shift of the personnel management function from merely focusing on employee welfare to managing people in a manner which creates a balance between organization-individual goals and offering intrinsic and extrinsic rewards to employees. Therefore, rather than being marginalized, HRM functions are recognized as key business concerns where its performance and significance are integrated into line management. Human resource management is distinguished from the traditional personnel function in the sense that HRM is integrated into strategic management to make use of human resource to reach the intended strategic management objectives. It is relevant to mention that HRM aims at eliminating the reconciliation role to practicing a generally unitary approach. The distinctive aspect in HRM is the emphasis put on strategy and planning as opposed to problem solving and mediation focused on personnel management and industrial relations. Human resource management promotes employee cooperation that is delivered through programmes such as corporate culture, team building and remuneration packaging as well as career development for core employees, while keeping incompetent employees at arm’s length (Silva 1997). From the management thinking point of view, research indicates that management ideas are like fashions often come and go. This clearly shows that while best-selling management concept may seem to work well in one year, is soon overtaken by the succeeding big idea. Therefore, HRM has emerged different from past management practices such as industrial relations and personnel management to show how the most successful organizations currently value their people or their human resources. It is apparent that the emergence of HRM approach is one of the major shifts towards understanding the nature and modern meaning of people management. Research shows that HRM is distinguished from the past management practices because it is a significant approach towards enhancing major developments within the structure and intensity of global completion. Therefore, the need to adopt strategic human resource management principles has forced companies to involve in radical changes to improve their working practices and compete sustainably in the global markets (Alan 2007). Armstrong (2006, p.19) examines that although differences exist between HRM and personnel management, also there are similarities between the two. He notes that the values of personnel management and the soft version of human resource management are similar. This is particularly the case with regard to respect for individuals in the organization, the need to balance organizational and individual needs as well as developing people to improve their competence not only to enable the achievement of organizational objectives but also to increase the satisfaction level of individuals. Additionally, both personnel management and HRM share the most essential function of matching people to the dynamic or ever-changing organizational needs-the capability of placing and developing the most competent or right people in and for the right tasks. Armstrong also claims that like the soft version of HRM, personnel management recognizes the significant role of the processes of communication and participation in an employee relation system. However, unlike personnel management human resources management emphasizes more on strategic fit and integration in managing people in the organization. In regard to the impact of Human Resource (HR) on organizational performance, Armstrong recognizes that the practice of HRM sees people as the organization’s key resources, and thus organizational performance to a larger extent depends on them. In his view, therefore, appropriate and different HR policies and processes need to be developed and implemented effectively to enable HR make substantial impact on organizational performance (Armstrong 2006). Industrial Relations and Human Resources Management The implications of HRM for industrial relations practices are increasingly become a source of controversy in the management of people in an organization. By considering the case for employees or workers’ participation schemes that are viewed by trade unions as threats, it can be noted that in some circumstances HRM strategies implemented together with collective bargaining. In other cases, however, HRM approach aim to replace or discourage the independent activities of organization of workers as protection of their interests. It should be noted that proponents of HRM have often argued that since the 1970’s, the past management practices in particular, the personnel management aspect of human resources management has developed from a mere maintenance function, after the industrial relations function, to emerge as a critical and significant function that determines the effectiveness of an organization. Therefore, HRM has become a tool for management to use as part of their personnel policy rather than taking it as a relationship between an organization or employer and the workers’ selected representatives (Trebilcock 2011). Research indicates that industrial relations focus more on a collective bargaining system of management which mostly aim at reconciling the differing interests between management and employees. In contrary, HRM has emerged as a management philosophy to replace the collective relationship with individualized relationship in which management denies or discourages the existence of independent employee interests and subordinate them to the ones of management. The fundamental idea is that industrial relations and human resources management are to some extent, inimical or mutually exclusive. However, the impact of HRM on industrial relations remains the subject matter that deserves considerable comment because in some instances, HRM is perceived as a threat to industrial relation, while in other circumstances it has become difficult to consider HRM practices as industrial relations without unions (Brewster 1995). Today, policy makers and unions are required to address the issue of industrial relations within the context of competitiveness. Therefore, HRM becomes the most relevant means through which employers or organizations can sustainably achieve their corporate objectives. It is relevant to point out that industrial relations did not emerge because of the need to formulate competitive strategies. However, this has been the main objective and impetus to support the development of HRM. Due to the declining significance of collective industrial relations, the increasing impetus to management of workplace relations as well as the weakening of unions in different industrialized countries. It means that industrial relations will be required to include employment relations in non-union sector to promote the individual employment relationship practiced in HRM (Silva 1997). Hard vs. Soft Human Resource Management A unifying aspect of all HRM practices is the perception on the significance of human resource utilization particularly in determining the performance of an organization. Therefore, in deciding how best such resources can be utilized, two distinct approaches of HRM-hard and soft becomes important (Dessler 2004). It should be noted that the hard approach regards people as mere resources like any other resources of an organization with the main aim of maximizing benefits, while minimizing their costs to an organization. In contrast, soft approach towards HRM, stresses more on the human factor than the resource. The assumption in this approach is that different people or individuals in the organization have enormous potential to improve their contribution to the organization provided the working conditions are set up to enhance this potential. This clearly means that HRM is different from past management practices because it sees people as qualitatively different the existing resources. Thus, it becomes a requirement for contemporary organizations to harness the reserves of creativity among their employees, enhance their commitment as well as maximize their skills to achieve sustainable competitive advantage. To a larger extent, therefore, it can be noted that proponents of soft HRM seems to emphasize more on approaches of enhancing employee motivation and capability, for instance, through reward management as well as training and developing employees. However, the hard approach to HRM tend to be still in the past management practices because it yet to see the value of employees as different resources in the organization (Keenam 2011). The significance of HRM is increasingly being recognized even as new management theories and fashions emerge. The greater contemporary view of people or employees in the organization as a source of competitive advantage continues to be reflected in the corporate literature of different organizations across diverse industries. Such organizations seek to position or brand themselves as reputable organizations admirable to work with (Wilton). Conclusion Based on the above discussions, it can be concluded that to a larger extent, Human Resources Management (HRM) differs from past management practices such as personnel management and industrial relations. HRM is a modern approach to management that is often integrated to an organization’s core strategy and vision as a way of optimizing the role played by human resource in fulfilling the organizational goals. By considering its strategic and philosophical context, therefore, it is relevant to point out that HRM is more purposeful and effective than the traditional personnel management approach. It is apparent that the emergence of HRM approach is one of the major shifts towards understanding the nature and modern meaning of people management. It should be noted that human resources management goes extra level of the administrative role of personnel management and calls for a broad vision of determining and assessing how management can value resources to enhance the performance and success of the organization. The main aim of HRM is to eliminate the reconciliation role to encourage the management of modern organizations practice a generally unitary approach. Soft approach towards HRM, stresses more on the human factor than the resource. It is important for policy makers and unions to address the issue of industrial relations within the context of competitiveness. Although differences exist between HRM and personnel management, there are similarities between the two. It is apparent that the values of personnel management and the soft version of human resource management are similar. The key similarities between personnel management and human resource management include, respect for individuals in the organization, the need to balance organizational and individual needs as well as developing people to improve their competence. This is required not only to enable the achievement of organizational objectives but also to increase the satisfaction level of individuals. List of references Armstrong, M., 2006, A Handbook of Human Resource Management Practice: Armstrong's Handbook of Human Resource Management Series, Kogan Page Publishers. Alan, P., 2007, Human Resource Management in a Business Context, 3rd edition, Jennifer Pegg, Thomson. Brewster, C., 1995, ‘Industrial Relations and Human Resource Management’, Journal of Industrial Relations, Vol.2, No.4, pp.395-410. Dessler, G., 2004, Human Resource Management. 10th ed., NJ: Pearson/Prentice-Hall, Englewood Cliffs. Keenan, T., 2011, Human Resource Management, Edinburgh, Herriot-Watt University Management Study Guide, 2015, “Difference between Personnel Management & HRM”, Retrieved April 27, 2015 from, Nayab, N., 2013, Are You an HR Manager or a Personnel Manager? Retrieved April 27, 2015 from, Silva, S., 1997, The changing focus of the Industrial Relations and HRM, International Labor Office, Turin. Trebilcock, A., 2011, Labor Relations and Human Resources Management, Part III Management and Policy, Fourth Edition, International Labor Office. Wilton, N., 2013, What is Human Resource Management? SAGE Publications Ltd, Retrieved April 27, 2015 from, Read More