HRM vs.

Personnel Management

Dr. D. Sreenivasa Reddy
Teaching Personnel
Dept. of R.D & Social Work
SK University, Anantapuramu

Module I
Objectives:

to Introduce the concept of human resources
management (HRM);
to learn the various schools of management;
to review the key names in management theories; and
to compare and contrast HRM with personnel
management in terms of these features: scope, hours of
work, place of work, types of services/function, goals,
technology, strategies and philosophy
Definition of HRM vs. Personnel
Management
HRM
HRM is a broad concept from employee selection,
training and development programs, career
development, promotion, performance review and
union management interface and other activities.
Peterson and Tracy (1981) emphasized that HRM is an
emerging dynamic field in terms of both the staff
functional and day-to-day utilization of human
resources throughout the organization.
Stressing the processes involved in managing human
resources in an organization, Concepcion (1988)
explain that -
HRM is an art and science of acquiring,
motivating, maintaining and developing people in
their jobs in light of their personal, professional
and technical knowledge, skills, potentialities,
needs and values and in synchronization with the
organization philosophy, resources and culture for
the maximum achievement of individuals,
organization and societys goals.


W. French (1990) refers to HRM as that
which embodies the philosophy, policies,
procedures, and practices related to the
management at people within the
organization.
It implies
HRM can be viewed from a process-system perspective. From a
process point of view, the concept includes all those process
affecting and involving all employees o the organization
including human resources planning, job design and
information, staffing, training and development performance
appraisal, compensation, and organization development.
However, these processes have to be interrelated with each
other through systems. Thus, the study of HRM involves a
network of interrelated processes through systems which have
to be planned, developed, and implemented by all levels of
management and the rank and files. These are directed
towards the achievement of organizational goals and objectives
Planning
Development
Management
Strategic
Tactical
Work Attitudes
Relationship
POSDECoRB
Techniques of leadership
& Coordination or
cooperation
These processes have to be interrelated with each other through systems. Thus, the study of
HRM involves a network of interrelated processes through systems which have to be planned,
developed, and implemented by all levels of management and the rank and files. These are
directed towards the achievement of organizational goals and objectives
S Specific
M Measurable
A Achievable
R Realistic
T Time-Bound
E Emotionally Intelligent
R Resources Specific


Source: Shobhit Tayal:2009 Slideshare
GOAL should be SMARTER than others:



Time is something that we can never
take back. Why is time
management so important? Time
never rewinds like videotape. We
can get more money but we
cannot get more time!

Time is rare.
Time cannot be stored.
Time is required for everything.
Time Management reduces effort.

Source: Shobhit Tayal, Slideshare
History of Various Schools of Management
Perspective
I
Structural
system
Perspective
II
Information
System
Perspective
III
Human
System
Each perspective of
management grew
out of hospitable
cultural context,
what appear to be a
nave procedure
may at another
time have been
useful solution to a
perceived problem.
Source: UP ISSI:2006
Perspective I
Structural System
Perspective II
Information System
Perspective III
Human System
1900 Weber
Taylor
Gilbreth
Roelthlisberger
1940 Blackett
Cock and French
Churchman and Ackoff
Coch and French
(Univ of Michigan Group)
1950 Woodward March & Simon (Ohio State Group)
McGregor
Argyris, Maier
Herzberg, Likert
1960 Etzioni
Seiler
Forrester
Emshoff
Vroom
Blake And Mouton
Reddin
Fiedler
1970 Integrated Systems
Approach
Key Names in Management Theory
Perspective I: The Structural Design View of
Management
Three Schools
Universal
Principles of
management
School
(Fayols 14
Principles)
Structuralist
School
(Webers 7
characteristics of
bureaucratic
structure)
Scientific
Management
School
(Taylor the
application of
Science and the
search for one
best way)
1. Operations Research
mathematically
quantifiable
parameters
(Churchman - 6
phases, and
Forresters system
Dynamics - )
Perspective II: Information flow
2. Output and Input model (Emshoff)

Elderly tend to
die before the
young
Is it blacks, whites
and orientals die
earlier
OUTPUT
MODEL
Input data:
Diet
Sanitation
Work habits

Causal and
antecedent factors

Emshoff states that input oriented research is needed for behavioral systems
rather than output oriented
The fact that Emshoff and Forrester are concerned with the human variables
clearly manifests that the newer perspective theorists are aware of the human
component.
Hawthorne Plant of Western Electric Co.
HAWTHORNE EFFETC (by behavioral scientists: Elton Mayo,
and Fritz Roethlisberger of Harvard Business School

Perspective III: Human Perspective

Levels of Illumination
Bright sunlight Darker Full Moon
A group of female relay assemblers was set apart and observed closely. Each
time the intensity of light was changed, the production rate went up until it
was physically impossible to see.
The workers knew that the researchers were interested in their performance
but did not really think about the implications of differing level of illuminations
Gold fish bowl
Increase performance resulting from
the workers knowledge that they were
being observed with interest, treated
as important and that their inputs
were taken into consideration
Workers attitudes, morale, group
effects
People oriented supervisory styles
nice guys coming from the HR
training (warm feeling training) or
charm school consists primarily of
company picnics, getting the wives
together, and company sponsored
athletics
The post World War II studies done at the
University of Michigan and Ohio state
University indicated that people oriented
leadership. From this school emanated
human relations training which was designed
to make nice guys coming from the HR
training (warm feeling training) or charm
school consists primarily of company picnics,
getting the wives together, and company
sponsored athletics
Organizational and Development School
OD Overcoming
resistance to Change
Coch and French
Leadership Styles
Authoritarian,
democratic and
Laissez-Faire to
leave alone Lippitt
and WHITE (1939)
Sensitivity Trainings
of T-Groups
Herzberg satisfaction
nor dissatisfaction
Maslow Higher
/Lower Order Needs
have been partially
satisfied
Managerial Grid by
Robert Blake Concern
for people or Concern
with production
Multi Dimensional Theorists Motivation
Theories)
A third multi-dimensional theorists is Fred Fiedler.
His leadership style theory, based on over 20
studies, identifies three dimensions:
a. Position power of leader (strong or weak)
b. Leader-member relationships (favorable &
unfavorable)
c. Definition of job ( clearly and vaguely
defined)
Multi Dimensional Theorists -
Finally Lawrence and Lorsch
Certain organizational functions e.g. marketing, production, R &
D should be more or less tied with one another. However, the
relative independence of these operations should vary,
depending on the nature of the industry and environment

Multi-dimensional are here to stay.
Coupled with situational approach to
organizational design, leadership styles
and OD appear to be the current
directions for the study of organizations.
Examine each situation to determine the
most appropriate directions allows
much more flexibility in the study and
development of organizations
Personal goals
and objectives
of the
employees
Organizational
goals, needs,
interests and
perceptions
Both
influence
each other
to promote
their needs
and well
being
Stressing the processes involved in managing human
resources in an organization, Concepcion (1988)
explain that
HRM is an art and science of acquiring,
motivating, maintaining and developing people in
their jobs in light of their personal, professional
and technical knowledge, skills, potentialities,
needs and values and in synchronization with the
organization philosophy, resources and culture for
the maximum achievement of individuals,
organization and societys goals.

Sugiharto, SH.MM (2009) outlined the management of Human Resource
in an Organization
Human Resource Managements Outline
Acquisition
Development
Motivation
Maintenance
Source: Sugiharto, SH.MM 2009
HRM Roles
Administrative
Functions
1
Recruitment-Selections
2
Compensation Analysis
3
Benefits Administration
4
Training & Development
5
General Employee
Administration
Source: Sugiharto, SH.MM 2009
HRM Activities
Recruitment &
Staffing
Equal Employment
Opportunity
Planning- Analysis of
the HR
Employee Relations
Equal Employment
Opportunity
Remuneration
HR Development
Source: Sugiharto, SH.MM 2009
Without the active involvement and
participation of the employees, the
organization cannot grow and develop to
meet its goals. All these are critical in
understanding HRM.

Personnel
Management
HRM
HRM differs in terms of perspective
French (1990) stresses that personnel
management has a strong functional focus in
that it is concerned with the administration
of specific employee-related functions such
as hiring, training, compensation, and
disciplinary action. It does not view these
functions as interrelated
it views all personnel functions as interrelated and
emphasizes a more dynamic, action-oriented perspective of
organization / personnel processes.
In other words, HRM which combines individual and
organization goal takes on a more developmental, flexible and
participatory stance. Because of its concern for the growth
and development of the individual.
It provides opportunities and mechanisms for things to
happen. It is proactive in the sense that the involvement
and participation of the employees in all management
processes is harnessed and developed.
It is innovative in the sense that it does not stop at making
changes and introducing innovations in all personnel
functions to facilitate and promote change and
development for both organization and employees.

Comparison Between Personnel Management
and Human Resources Management

FACTORS PERSONNEL
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
1. Scope : people
involved
mostly rank and file all people working for and
with the organization
including the Board, top
management consultants or
resource persons, middle
management, rank and file
2. Hours of work full-time work full-time, part-time, flex time
3.Place of work formal setting: office,
factory / plant
formal and informal settings
FACTORS PERSONNEL
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
4.Types of service
/ function
few and simple:
personnel
information,
recruitment and
screening social
activities,
management-labor
relationship
Varied and complex: job organization
and information: job analysis, job
design and job evaluation; acquisition
of human resources: human resources
planning, recruitment, screening,
selection and placement, maintenance:
orientation, motivation, assessment
and evaluation, compensation
administration, movement analysis,
benefits, participation and services
programs, management- labor
relations.
5.Department
head or officer-in
charge
administrative
officer or chief
executive officer
Separate Human Resources
Department manned by human
resources specialist
FACTORS PERSONNEL
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
6.Department
staff: qualifications
lawyer, records clerk behavioral scientist, social
science researcher
7.Level reporting lower level of line of
managers
higher level of general
manager or chief executive
officer
8.Goals accomplishment of
organization goals being
emphasized
accomplishment of
organization and individual
goals
9.Technology mechanistic: reactive,
structural, inflexible,
technical, control oriented
and organization-oriented
Developmental: proactive,
socio-technical orientation,
flexible, participatory,
creative and innovative
FACTORS PERSONNEL
MANAGEMENT
HUMAN RESOURCES
MANAGEMENT
10. Strategies Personally subjective
based on management
needs and values:
compartmentalized
approach
Objective and scientific based
on individual and organization
culture, total systems
approach
11.Philosophy Traditional work
orientation with
priorities on organization
and management
welfare mainly for profit
people: an expense and
a factor or production
Human with emphasis on
respect for individual and
societys well-being: people: an
investment and a resource
Summary
A personnel has a strong functional focus. It is concerned with the
administration of specific employee-related functions such a hiring,
training and disciplinary actions which are not viewed as interrelated.
Human resources management views all personnel functions as
interrelated and takes an encompassing view. It is development flexible
and participatory in the sense that it is more concerned with the growth
and development of the individual employee; provides more
opportunities and innovations in all personnel functions.

Integrating Theory and practices

A number of government agencies do not have
HRM plans and programs based on the needs and
expectations of individual employees. In fact , some
agencies have strategic plans which do not spell out
approaches to the development of human resources
of the organization. Identified strategies have
focused more on achieving the goals of the
organization rather than on attaining both the goals
of the organization and employees. In this regard,
employees are not seen as an investment and a
resource for the organizations productivity and
efficiency.

Reference:
Perla Legaspi- Human Resource Development
Open University, University of the Philippines 2002
Wendell French. (1990). Human Resources Management. 2
nd

edition, New Jersey: Houghton Mifflin Co., 1990, Chapter 1,
pp.5-25.
Richard Peterson and lane Tracy. Systematic management of
Human Resources. Massachusetts: Addition-Wesley
Publishing Co., 1981 . Chapter1, pp. 3-18.
Conception Martires. (1988), Human Resource Management
Principles and Practices. Quezon City Kalayaan Press
Marketing, Inc. Chapter 1, pp. 3-9.
UP ISSI Managers Course 2006
Shobhit Tayal et al: 2009 Personal Success Strategies.
Slideshare