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To what extent is the human resources function important to a business
Importance of human resources
The importance of human resources
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Both Human Resource Management and Personnel Management can be broadly described as the management of people or “people management”. This is because both functions fit the definition “all the management decisions and actions that directly affect or influence people as members of the organization rather than ‘job holders’”
To many people “HRM” is simply seen as a fancy or pretentious re-labelling of what used to be known as “personnel management”. However, to many managers and management theorists, it is vital to the success of organizations in the 21st century. There are actually many differences between HRM and PM.
The people management policies and practices which are now known as “HRM” began and evolved in the USA’s manufacturing industry during the late 1970’s/early 1980’s. A number of factors led to this new way of management thinking.
The main difference between HRM and PM is that personnel management tends to deal with employees, their payroll and employment laws. Meanwhile, HRM deals with the management of the work force as a whole and contributes to an organization’s success.
With personnel management being more “work force” centered, it means HRM concentrates more and focuses on the resources/resourcefulness of a business.
The functions of personnel management can be split into two different categories. The first is “management functions” and the second is “operative functions”.
Management functions include things such as planning, organisation, directing and controlling. While operative functions include procurement, development, compensation, integration and maintenance.
Personnel Management responsibilities also include the function of employment and development. PM is an extension to general management, concerned...
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...ffer on opinion about. PM believes in the importance of devising clear rules/mutuality, however HRM take the “can do” outlook; and have impatience with rules.
There are other strategic aspects which also differ between the two. For example, the speed of decisions. PM being slow and HRM is fast. One more important difference is the two side’s opinions on pay. Personnel management prefers pay to be decided by job evaluation and therefore fixed grades, while Human Resource Management work on performance related pay.
In conclusion, Personnel management can be seen to have a focus on the personnel and employees as individuals within a company, providing a monitoring and largely service based function. While on the other hand, Human Resource Management considers people/employees a strategic asset which can impact upon the bottom line and grow in value at the same time.
HRM – Staff have access to executives and CEO – a culture/ philosophy of treating employees well and a reputation as a great place to work. Company profit sharing, high productivity of people and rapid advancements
Human resources management is defined as, the [process of evaluating the needs of a business or organization with regards to employees, especially in hiring, recruiting, motivating and compensating employees.1 One of the major roles of this function involves
In general definition, personnel management is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The human resources of an organization consist of all individuals regardless of their role, who are engaged in any of the organizations activities. A change based on a reason, changes personnel management into human resource management takes time and stages. From time to time, the term human resource management is increasingly replacing personnel management positions. This occurs because of changes in personnel management is seen as old-fashioned way to manage people, and to give priority to the development needs of the organization rather than the individual. In every change has the distinction of various aspects such as the process changes, characteristic, function and roles.
Human Resource Management is the utilization of human resources to achieve organizational objectives. Various studies have concluded that an organization?s human resources is its people. It can be a significant source of competitive advantage. Achieving competitive success through people requires a fundamental change in how managers think about an organization workforce and how they view the work relationship.
Human Resource Management is the management process of an organization's workforce, or human resources. It is responsible for the assessment, attraction, rewarding, selection, and training of employees, while also overseeing organizational culture and leadership and ensuring compliance with employment and labor laws ("Human resource management," 2014). Human Resources is the set of individuals who make up the workforce of a business sector, economy or an organization. There are five items on the strategic plan that are the responsibility of Human Resource Management:
Industry characteristics: Industry characteristics also influence HRM practices in various ways. Manufacturing, retail, food and health and construction sectors create their own HRM policies as per the requirement. Many sectors are quite sensitive to needs of human resource and few may not require it at all, considering the skills and abilities of their human resource. The companies need to follow and consider competitive practices in order to retain human talent in their
It seems that HRM is so crucial to the organization, for what it does has nearly covered all aspects of the business – from strategic planning to the training and development, but unfortunately, its importance has not been accepted by everyone. As proposed by Morton, C, Newall, A. & Sparkes, J. (2001) there are three different views of HR function within the...
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
However you define the activities of management, and whatever the organisational processes are, an essential part of the process of management is that proper attention be given to the Human Resource function. The human element provides a major part in the overall success of the organisation. Therefore there must be an effective human resource function. In the past, most organisations viewed Human Resource Management (HRM) as an element function, that is an activity that is supportive of the task functions and does not normally have any accountability for the performance of a specific end task. Because of the emphasis on analysis and precision there is a tendency for strategists to concentrate on economic data and ignore the way in which human elements and values can influence the implementation of a strategy. 'Economic analysis of strategy fails to recognise the complex role which people play in the evolution of strategy - strategy is also a product of what people want an organisation to do or what they feel the organisation should be like.?(1).
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
Human Resource Management (HRM) can be defined as “the set of programs, functions, and activities designed and performed in order to capitalize on both employee as well as organizational effectiveness. It is a management function that helps organization in recruiting, selecting, and training, developing and managing
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
Personnel management encompasses a deep interest in the well-being of an organization’s personnel as well as their execution of tasks assigned to them. Its main aim is ensuring that employees have a sense of satisfaction. Personnel management tasks include training, selection and hiring, motivation, rewards, compensation among others. Personnel managers, in collaboration with other sections in the organization are mainly involved in execution of these tasks (Ingram, 2008, p.160).