Employees are the main assets of the company. Protecting
them and keeping them well treated is a responsibility of the company.
As an HR manager, I have done research on personnel management
and human resource to use the best strategy for the success of the company. In our
company from the start, we have implemented the personal management approach.
And in this research, we have encountered many issues with a traditional system that
aroused in the increasing number of employees. To reduce loss and increase ROA
and profit to the company I suggest modern Professional HR management which is an advanced
version of a personal management system.
Personal management is the traditional way to handle
employees in a workplace and focus on the company success and manage the company
assets.
Personal management handles function such as hiring,
recruiting, training new employees, performance tracking and compensation.
Personal management is about recruit and maintains a satisfied workforce in the
company. In Personal management, general management promotes each and every
employee to help them to success the business.
Personal management hired people by a single person or
sometimes by a group of people. They match candidates resumes with a checkbox
list they have. When giving promotion they limit annual increases to maximum
10 percent and force strict rules on pay grade. When a new employee comes to the company they will be shown the office premises and hand out employee handbook
and focus them on filling required forms.
On the other hand, human resource management which is new a version of personal management manage employee as below.
Human resource department responsible for recruiting appropriate
employees and make sure they are up to company standards and culture and guide
them to enhance the performance of their own and the company.
In fact, Human resource management is the next level of
personnel management. There are major differences between HRM and PM approaches.
Human resource management focuses on team interest and treat
employees as their partners in business and lead employees to fulfill company
goals. Job design in personal management
divides the work where human resource management employees are working on
divided group on any task. Where in personal management focus on individual
interest rather than team interest. Considering this working as a team and
getting team ideas and their skills, knowledge is beneficial to the company in
taking the best decisions. Leading all the
team towards a common goal is identified as a major advantage that the company
has. I suggest our company need this change to power up sales and employee satisfaction.
Power management - in personnel management, top management
has all powers to take decision and power is centralized on the top. Low level
staff are not encouraging to comment on decisions making process but just to
follow the orders from top management. In human resource management power
decentralized between top, middle and lower management levels which are called
as empowerment. Employees from bottom level comments and giving feedback to top
management so the top management support employees to complete the goals and tasks.
Leadership – Human resource management encourages a
leadership that is transformational that focus on shared vision and objectives
shared with both management and employees. Human resource management create
leaders to develop trust and compatibility between team members also work
together to accomplish missions while following company culture and values.
Personal management create leaders who are transactional and
human resource management has leaders who are a task oriented person. Leaders
tends to follow rules, procedures and regulations rather than interpersonal
relationship and trust between team members
Employment: in personal management employee contract is
rigid and strict, written clearly each rule, responsibility, regulations. And
there is no space to modify or change the written employment contract which
must be followed by employees till they resign. In HRM they have an open
contract.
Recruitment – when a position is being vacant HR team and
line managers involved in selecting the right person for the job. It is important
to company management to select the best one for the job and human resource
management team prepare process from job posting to negotiating salaries with
the candidates by investing a big amount. Right candidate can raise the company
profile as well as increase profits and productivity of the organization.
Job rules and regulation are very functional and strict in
personnel management. Human resource management encourages flexible approach when
creating contracts for employees. It enforces terms and rules; the condition is
less rigid. HRM encourages employees to contribute the company with their
knowledge and abilities. HRM promote flexible working hours to increase employees’
effectiveness. Allowing employees to work from home is a popular method introduced
by the new approach by human resource management. Lots of major companies
provide this benefit to their employees to give more freedom to employees and
get back more benefits to the company.
In Personal management payment policies based on skills and
duties according to the employment contract. This will not encourage incentive to be paid
other than the standard payment procedure. Pay policies in personal management
depend on job evaluation and human resource management pay based on performance
evaluation. Pay policies in Human resource management encourage payment and
incentives for employees based on their job performance and skills. It allows
incentives such as group profit, sharing gain, etc. Employees tend to work on a
target if they are paid based on the performance and add bonus and incentives
to basic salary encourage the customer to work on targets to bring profits to the company.
In personnel management focus is on the goals of the company
as consider employees as input to achieve desired goals. Human resource
management system consider the employee as a valuable and important resource to accomplish
desired goals.
Professional development in human resource management allows
workforce to grow their talents and skills, provide leadership training,
carrier advancement seminars, social gatherings so that employees feel that
they are worthy and talented. This increase confidence of the employees and
background and mood of the employee affects the company and happy employees
bring the company more profits and prosperity.
In personal management employees are trained poorly,
employees are training less while in the work but in human resource management,
employees are trained more and develop employee’s skills for the benefits of
the company as well as for the employees themselves.
Decision making in the company under personal management,
done by top management according to the rules & regulation of the company. Decision
making is a slow process in personnel management and in human resource
management making a decision is a fast process. With so many experts commenting
and sharing their expertise on the matter, increase the accuracy of the decision
and speed of taking a correct decision is improved.
Communication is restricted and limited from bottom to the top
level of job hierarchy in personnel management. They will not encourage to
comment or share ideas on business ideas. While human resource management team
request to share their new ideas, opinions and new angles to solve problems at
hand and contribute to the success of the company. This Human resource
management system definitely helps us solving our decision making issues and
with this approach we will be taking accurate decision smoothly.
Under human resource management, the business decision is formed
by considering employee’s decentralization and authority and their
participation etc.
Personal management targets to increase production while
human resource management target on productivity and effectiveness culture.
Human resource management give s training form newcomers
and for the existing workers to increase productivity.
Performance appraisal in human resource management is the
process review the employee performance on a given task and discuss the
support they need on their role.
In earlier days’ personal management name was used and it was changed to human resource management (HRM) due to various social and
economic changes in history. With the introduction of HRM considerable change
of growth caused in business organizations with the new technologies.
In a business organization, they have practiced human
resource management so that they can produce more profits in their business by
managing human resources correctly. Human resource management mainly considers employee side management. It has
steps and activities to deal with employees effectively to help the
organization. For thus the success of the company employees must be handled smoothly. And human resource management is the field that manages employees in
the company.
From hiring state to resigning phase of an employee in
company human resource management goes through activities to communicate with the employees.
Human resource management has come as an extension over personal management and
that indicate personal management has shortcoming.
Company needs satisfied, talented, active employees in a
organization to increase productivity, and profitability. by investing on
employees more will not go to waste. Company has trust on the employees and
respect them and employee does the same to their working place. This trust and
bond is strong and employees is not forced to do so but they decided to work
true to the company.
There are five skills a great Human resource professional
have,
1)
Curious – finds out how business works, daily
income, whether customers are satisfied, whether employees are working smoothly
and in proper mindset to work.
2)
Decisive Thinker – Human resource professional
have important decision to take and to take correct and fair decision
professional do research by gathering required data and process them using
necessary tools and come to a conclusion.
3)
Skilled influencer- Human resource professional
should have ability to people from top to bottom management level in the
company as well as outside clients and customers.
4)
Ethical Integrity – Must be able to talk against
unethical decisions taken by any parties in the organization.
5)
Problem Solver – with a stable mind and
dedication work through a problem and solve it.
Forming human resource management team can be expensive, but
in other hand it brings company nothing but profits if right people are
assigned in the team. HRM will balance the employee, top management,
shareholders, providers and customer problem by communicating and work though
their strategies and selecting best solution to arising problems.
Personal managers used act as mediator between company and
employee and main job was to take care of the needs of the workplace and
managing the company workplace according rules and regulation and as a result
of that employees wasn’t much close to the company and worked from nine to five
as mentioned in contract. Human resources management follows the ‘people first’
theme and take care of the needs of the resources. Employees as main assets and
valuable resources that the company has, human resource must provide and supply
necessary requirements for the resource to each employee feels their worthy.
As human resource works as separate business form today and
they handle big company’s human resource activities. Practicing human resource
activities is the best decision a company can make.
Employees are the main resource that brings income to the
company. And without skilled employees company won’t attract customers for
their services and products. Employees have different skills set and can
contribute their knowledge on decision making process. Also allowing employees
think creatively will help to stand out the company among their competitors.
Management may have start the business but employees are the people works on
the services and products in the company. And skilled employee always thinks
outside the box will provide new ideas and improvement to the product and
services in the company.
As a company with hundreds of employees I encourage to
change our traditional personal management system to the modern and profitable
human resource management system. Recruiting correct person for the job and
training new employee for the job and keeping track on employee is big
responsibility human resource team has. But it’s worth the effort to implement
this modern approach. With education and social development people tends to
work in more peaceful location with less burden and with friendly top
management. To get ahead with competitors we have to adopt to modern
technologies and approaches.
Employees interest to work in more welcoming organizations
which are peaceful and be respected. Human management treats employees machines
and tools won’t be an advantage to the company as now a day’s people are more
aware of their rights. Human resource management is developed to for the better
future success of both employees and organization.