Professional Human Resource management

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.