Strategic Role:

HRM should be strategic business partner of an organization

Should support business strategies.

In addition to internally representing the employees (people dimension), should also have external focus

Forward thinking and proactive.

Assist the organization in creating and maintaining competitive edge.

Should try to work as profit center and economise its operations.

Should add value to the organization.



Functions of HRM

1. Staffing

Manpower or human resource planning

- Job analysis: competency matrix

- Job description/Position description

- Job evaluation

- Determination of actual number of employees needed for various jobs



2. Training and Development

Induction

- Acclimatization process for new employees



Training

- Competency mapping and gap analysis

- Appraisal

- Training need assessment

- Training process



Development

- Potential assessment

- Development process



Career planning

- Fast track (talent management)

- Normal career path management



3. Motivation

Appraisal

- Appropriate appraisal system

- Appraisal process



Compensation and benefits

- Determination of salary and benefit packages



Rewards

- Recognition motivation

- Monetary motivation



4. Maintenance

Communication

- Installing and maintaining two way communication Health

- Design/Selection and implementation of health schemes Safety

- Awareness creation

- System for safe working conditions



Employee relations

- Establishing fairness

- Designing and implementing employee relations policies and procedures



Legalities

- Dispute

- Grievances

- Unions

- Employment related legalities

- Health and safety related legalities



Differences between Personnel Management (PM) and Human Resources Management (HRM)



1. Personnel mean employed persons of an organization. Management of these people is personnel management (PM). Human resource management (HRM) is the management of employees’ knowledge, aptitudes, abilities, talents, creative abilities and skills/competencies.



2. PM is traditional, routine, maintenance-oriented, administrative function whereas HRM is continuous, on-going development function aimed at improving human processes.



3. PM is an independent function with independent sub-functions. HRM follows the systems thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.



4. PM is treated like a less important auxiliary function whereas HRM is considered a strategic management function.



5. PM is reactive, responding to demands as and when they arise. HRM is proactive, anticipating, planning and advancing continuously.



6. PM is the exclusive responsibility of the personnel department. HRM is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions.



7. The scope of PM is relatively narrow with a focus on administering people. The scope of HRM views the organization as a whole and lays emphasis on building a dynamic culture.



8. PM is primarily concerned with recruitment, selection and administration of manpower. HRM takes efforts to satisfy the human needs of the people at work that helps to motivate people to make their best contribution.



9. Important motivators in PM are compensation, rewards, job simplification and so on. HRM considers work groups, challenges and creativity on the job as motivators.



10. In PM improved satisfaction is considered to be the cause for improved performance but in HRM it is the other way round (performance is the cause and satisfaction is the result).



11. In PM, employee is treated as an economic unit as his services are exchanged for wages/salary. Employee in HRM is treated not only as economic unit but also a social and psychological entity.



12. PM treats employee as a commodity or a tool or like equipment that can be bought and used. Employee is treated as a resource and as a human being.



13. In PM employees are considered as cost centers and therefore, management controls the cost of labor. HRM treats employees as profit centers and therefore, the management invests in this capital through their development and better future utility.



14. PM’s angle is that employees should be used mostly for organizational benefits and profits. HRM angle emphasizes on the mutual benefits, both of employees and their families and also the company.



15. PM preserves information and maintains its secrecy. In HRM communication is one of its main tasks which take into account vertical, lateral and feedback type communication.