Personnel management vs human resource management

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People in an organization carry out the entire task, from setting strategies and goals to allocating financial resources and from producing goods and services to marketing them. Therefore, the human beings are considered to be ‘human resource’ or ‘human capital’ in an organization (Bratton and Gold, 2001). And managing this resource is crucial and the idea and practice of managing have come through several changes.

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The ever rising intense competition in the global business and spreading responsibilities brought dramatic changes in the way approaches were made towards people management. The time business crossed the national boundaries and spread throughout different continents and different time zones it faced new challenges and difficulties in meeting the demands from the people of different cultures. Idea sharing and participation in decision making, therefore, became important as these can give the organizations competitive edge in the changed environment. As a consequence the traits like aptitudes; commitment, ability to learn and tacit knowledge have become obligatory in order to have continuous development (Bratton and Gold, 2001). Thus, the demands of the specialists as well as the formation of new strategies to fit to the changed environment increased along with the growth of business boundary.

Human Resource Management:

‘Human resource management is a distinctive approach to employment management which seeksto obtain competitive advantage through the strategic deployment ofa highly committed and skilled workforce, using an array of cultural, structural and personnel techniques.’ (Storey, 1995).

Thus, HRM is mainly a set of policies that are created aiming to obtain the organizational goal through the successful implementation of corporate strategy considering the human resource of the company as the driving force that can make the difference or in other words give the company its most needed competitive advantage. Company needs to balance the aspirations of its people as well as its strategic demands towards making HRM policies.

There have been many models to explain the concept Human Resource Management. One of the important models is Harvard model. The Harvard Framework preferred to see the whole process of HRM from the General Managers point of view (Armstrong, 2003). How they want to see the consequences of every step recognizing the importance of trade-offs between owners, employees and various interest groups (Armstrong, 2003). Here, the HR gets some outcomes as the direct affect of its policy choices and those outcomes brings the consequences that meet the stakeholder’s interests. It suggests that the general managers should develop a viewpoint, as they provide the strategic vision, of how they wish to see the employee involvement in achieving the goals.

Another important model is Warwick model. As Harvard model is developed in the American context it reflects the American style and way of managing HR but Warwick model reflects the European style (Loosemore et al.,

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