MBA Financial services 2011

Hindeenah Valamootoo

1120410

PERSONNEL MANAGEMENT and HUMAN RESOURCE MANAGEMENT PM is the management of the labour force of an organisation. The role of the PM was seen to be filling the demand of the organisation for labour, managing the employees to keep them satisfied and the termination of employment. HRM in fact does works that were being performed under PM with a different perspective. In addition there are other aspects that HRM goes into to achieve business goals. PM had no clear link with the business strategy. HRM takes into consideration the business strategy. Thus an HR strategy is created which works towards the overall business strategy. PM has a focus principally on the internal structure of the organisation. HRM takes into consideration various stakeholders interest, and the business and HR environment Employees were managed under the PM system to keep them satisfied and perform according to set plan. HRM goes beyond efficiency; it enables people to think outside of the box and to innovate in work practices. HRM people understand that employees who performing a certain type of activities can contribute to lot to improve the way they are being done. Personnel department was only a support department with no real measure for assessing performance and these people did not find it useful to devise such measures. HRM has developed ways of assessing the performance of the HR department PM was the only point for the management of the labour force. Under HRM, line managers are empowered to deals with employees for HR issues with the HR department acting as consultant. Personnel management does not take into account the contribution that lower level employees can make to the organisation and decisions are taken unilaterally. HRM welcomes ideas from lower level employees and gives the opportunities to participate in decision making. PM has been rewarding employees mainly on productivity, frequently an increase is given across the organisation. HRM recognises that other elements need to be rewarded and establishes reward systems that cater for other factors (innovation, team spirit, talent) PM has been traditionally performing manpower planning which has a short term focus. HR planning is more long term and strategic focussed. It analyses current and future needs, perform inventory of labour force and establish strategies to cater for the needs.