Personnel Management vs. HRM Approaches

This assignment delves into the contrast between personnel management and human resource management (HRM), highlighting their distinct functions, goals, and impacts on organizational success. It examines how HRM, with its focus on employee development, strategic alignment, and a broader scope of activities, provides a more effective approach for managing human capital in contemporary business environments.

COMPARE AND
CONTRAST THE
CONCEPTS AND
PRACTICES OF
TRADITIONAL
PERSONNEL

MANAGEMENT
WITH
CONTEMPORAR
2

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
ESSAY ............................................................................................................................................3
CONCLUSION AND RECOMMENDATION...............................................................................7
3

INTRODUCTION
Personnel management and Human resource management are two different approaches
that are used by organizations for managing the manpower inventory of the firm. Present essay is
based on Tesco which is a leading retailer firm of UK that offers superior quality products for its
business consumers. The essay describes about difference in both the approaches and outcomes
that are received after implementing the approaches are also mentioned. In addition to that
benefits associated with both the techniques and weaknesses associated with them also have been
mentioned.
ESSAY
Personnel management is defined as an approach used by organizations for managing the
relationship that exist between staff members and employers of the firm. It is an administrative
function that is being performed in the company and it aids in carrying out the functional
activities in enterprise (Berman and et.al., 2015). It is an traditional approach that is used for
managing the business activities. Tesco is a leading retail organization that offers superior
quality products to the business consumers. Initially company used personnel management for
managing the business activities. There are four major functions that are performed in personnel
management and it aids for handling the operational activities of the enterprise in successful
manner.
Main functions that are performed in personnel management are manpower planning,
recruitment, selection and training and development. There are vast differences between
personnel management and Human resource management and different organization uses
different approaches for managing the functions that are performed by them. In personnel
management head of department is personnel manager and he is made accountable for
performing administrative and managerial function. In addition to that operative functions are
also performed by the personnel manager and it supports for carrying out the required business
activities in successful manner.
Different types of roles are performed by personnel managers and they are responsible
for handling the functional activities that are performed in the business. Personnel manager is
responsible for providing assistance to top management and supporting them in policy formation
4

process. Necessary data and information that is required for making strategies are also provided
by personnel managers. It helps in making effective policies and procedures that are required for
carrying out the business functions in effective manner (Holsapple, 2013).
Personnel managers gives advice to line managers so that he can take actions for
delegating work responsibilities to the employees. In addition to that personnel manager also
works as a counsellor and take initiatives for resolving the issues that are faced by the staff
members. There are two different types of functions that are performed under the personnel
management. Procurement is the main function in which capable and talented staff members are
identified and placed at the vacant job positions in the company. Development is the second
stage in which skills and capabilities are imparted to the employees so that they can perform their
assigned work and job responsibilities in better and effective manner.
Compensation is the next function in which focus is given for developing the skills and
capabilities of the staff members. Wage and payment policy is formed in the company and salary
is given on due time. Utilization is next function in which workers are assigned job and tasks that
are needed to be completed by them on particular time. Personnel manager is made responsible
for allocating specific job duties and responsibilities to the employees (Armstrong and Taylor,
2014). Maintenance is last managerial function that is being performed for retaining the existing
staff members in the company.
Rewards and motivational schemes are used under which emphasis is given for making
improvements in the morale and motivational level of staff members. Other than managerial
functions operative functions are also performed in the company in which production and
operations related activities are completed. Managerial and operative both the type of activities
are performed under the guidance of personnel manager and it helps for accomplishing the
required goals and objectives of the organization in successful manner (Buller and McEvoy,
2012). Manpower planning is done so that every employee should be assigned specific job
responsibilities which they need to accomplish in a specific period. In addition to that
recruitment are done in Tesco so that capable and potential candidates can be hired for carrying
out the required functional activities.
Selection of the candidates is done through a tough recruitment process and it helps for
placing right candidate on the right job positions. Training and development activities are also
5

performed in which emphasis is given for making improvements in the competence and
capabilities of the employees. Personnel manager also works as a mediator who takes initiatives
for resolving the issues that are faced by staff members. Role of linking pin between managers
and staff members is played by the personnel managers and it aids for resolving the issues that
are faced by them. In addition to that there are some specific elements of personnel management
and it includes organization, job and people (Kehoe and Wright, 2013). Organization provides
framework for different activities that are required to be perform for achieving the overall goal of
the company. Different activities that are needed to be performed while carrying out the job is
included under this element. In addition to that different types of jobs that are performed in the
company includes physical jobs, creative jobs, proficiency jobs and consultancy jobs. Different
type of people are also involved in the job and it aids in making organization structure effective.
It also helps for accomplishing the goals and objectives of the company and gives life to
the physical organization. In personnel management approach managers is accountable for
understanding the relationship between organization and job and different people that are
associated with the job. Tesco organization uses personnel management as a traditional approach
for managing the business activities. There are some differences that exist between personnel
management and human resource management. HRM is modern approach that is used by the
company for carrying out the business approach. In this approach people are considered as
significant assets of the company and they are given more importance for maximizing the profits
and revenues. Human resource management function gives emphasis on fulfilling the
management objectives by utilizing full potential and capability of the human resource. Strategic
approach is used in personnel management for managing the staff members in the firm.
Moreover, HRM is a resource centered approach whereas personnel management is a
workforce centred approach. In the Modern Era it has become critical for business organizations
to make use of innovative and strategic practices so that competitive advantage can be gained for
the business. Moreover, it is ensured under HRM that organization has right number of people at
the right place and at the right time so that goals of the venture can be achieved (Dipboye and
Colella, 2013). In traditional model personnel management practices are used by the company
and in this major focus was given for managing the workforce.
6

However employees are given more importance under the Human resource management
and focus is given on developing the man power inventory so that their proper utilization can be
taken for completing all the required functional activities of the firm. There is a significant
difference between personnel management and HRM approach and major function of personnel
management is to ensure that sufficient number of people are hired, utilized and paid so that goal
of the company could be achieved. HRM is a modern concept that has been adopted by Tesco for
making significant improvements in practices and procedures that are performed in the company.
Major features of HRM includes various attributes and features of this approach. HRM is a
continuous and dynamic process and in this management of people and their capabilities is done.
It is required that changes should be done in the existing practices so that improvements
can be made and goals and objectives of the company should be accomplished. HRM is an
ongoing process and thus it supports for enhancing the performance of the business (Marler and
Fisher, 2013). It is a dynamic approach in which flexibility is given for making changes in
various practices and procedures that are performed by them. It is a universal function that is
applicable for all the departments that are working in Tesco.
Major departments that are operating in the enterprise includes finance department,
human resource department, marketing and operations department. All the policies, strategies
and action plans that are formed by management of the firm becomes applicable to all the
departments that are operating in the company. For example if training program is organized for
making improvements in communication skills than all the staff members that are working in
different departments are instructed for joining the program. It reflects that HRM is an universal
approach and all the functions of HRM gets apply to different departments that are working in
the company.
It is a strategic approach that is being used by the company and it aids in meeting the long
term and short term goals of the firm. It is an approach that is used for organizational
development and it aids for enhancing efficiency in overall practices that are performed by the
firm. There are five major functions that are performed under the HRM and it includes planning
in which action plans and strategies are made for achieving the goals and objectives of the
company. Data and information is collected from different sources so that planning can be done
7

in effective manner. Prominent role is played by top management and middle level management
people in planning process.
Second function is organizing in which all the required activities that needs to be
performed are schedules and allocation of resources is done so that required task and activities
should be performed on due time. Third function that is performed in the company is
coordinating in which relationship is developed among staff members so that they can be
motivated for achieving the long term and short term goals of the company. Controlling is
procedure for ensuring that all the tasks and activities should be schedules and performed in
proper manner. HRM is a modern approach that is being performed by the company and it is an
effective technique that is being performed in the company.
By making use of this approach company focuses on acquisition, development, utilization
and maintenance of the human resources. It is a practice which aids in ensuring that right number
of people should be placed at right job at the right time (Armstrong and Taylor, 2014). This
method is concerned with different functions of management and it includes planning, job
analysis, recruitment and selection, training and development of individual, reward and
performance appraisal and compensation management. All the functions are performed for
accomplishing the goals and objectives of the firm. Tesco has moved from personnel
management to HRM approach and it has supported for gaining the goals and objectives of the
firm. HRM is a strategic function and human values and individual needs of people are given
more importance under this method. Jobs are designed in this method on the basis of teamwork
and it is a development oriented approach which gives opportunity to the staff members for
growth, performance and career development. Communication channel is more broad and
involvement of staff members is taken in the decision making process of the company.
CONCLUSION AND RECOMMENDATION
Summing up the project it can be concluded that Personnel management is an traditional
approach where as HRM is a modern approach. There are some minute difference between both
the approaches however Human resource management provides effective medium for managing
the operational activities in effective medium. HRM is a development function which focuses on
providing growth and development opportunities to the staff members. This approach has
supported for accomplishment of organizational goal is achieved. Long term benefits have been
8

reaped by the company and it has also supported for enhancing financial revenues and
profitability of the business.
9

REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Berman, E.M., and et.al., 2015. Human resource management in public service: Paradoxes,
processes, and problems. Sage Publications.
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Dipboye, R.L. and Colella, A., 2013. Discrimination at work: The psychological and
organizational bases. Psychology Press.
Holsapple, C., 2013. Handbook on knowledge management 1: Knowledge matters. Springer
Science & Business Media.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices
on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-391.
Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic human
resource management. Human Resource Management Review. 23(1). pp.18-36.
10