Many students of management and laypeople often hear the term HRM or Human Resource Management and wonder about the difference between HRM and the traditional term Personnel Management In earlier times, the Personnel Manager of a factory or firm was the person in charge of ensuring employee welfare and interceding between the management and the employees.In recent times,the term has been replaced with HR manager. This article looks at the differences in usage and scope of functions as well as the underlying theory behind these nomenclatures.In the section on introducing HRM, we briefly looked at the main differences.We shall look into them in more detail here.
Traditionally the term personnel management was used to refer to the set of activities concerning the workforce which included staffing, payroll, contractual obligations and other administrative tasks. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources. Personnel Management is more administrative in nature and the Personnel Manager’s main job is to ensure that the needs of the workforce as they pertain to their immediate concerns are taken care of. Further, personnel managers typically played the role of mediators between the management and the employees and hence there was always the feeling that personnel management was not in tune with the objectives of the management.
Human Resource Management
With the advent of resource centric organizations in recent decades, it has become imperative to put “people first” as well as secure management objectives of maximizing the ROI (Return on Investment) on the resources. This has led to the development of the modern HRM function which is primarily concerned with ensuring the fulfillment of management objectives and at the same time ensuring that the needs of the resources are taken care of.In this way, HRM differs from personnel management not only in its broader scope but also in the way in which its mission is defined. HRM goes beyond the administrative tasks of personnel management and encompasses a broad vision of how management would like the resources to contribute to the success of the organization.
Personnel Management and HRM: A Paradigm Shift?
Cynics might point to the fact that whatever term we use, it is finally “about managing people”.The answer to this would be that the way in which people are managed says a lot about the approach that the firm is taking. For instance, traditional manufacturing units had personnel managers whereas the services firms have HR managers. While it is tempting to view Personnel Management as archaic and HRM as modern, we have to recognize the fact that each serves or served the purpose for which they were instituted. Personnel Management was effective in the “smokestack” era and HRM is effective in the 21st century and this definitely reflects a paradigm shift in the practice of managing people.
Industrial Relations Changes has brought lot of changes in
The management has a significant role to play in maintaining smooth industrial relations. For a positive improvement in their relations with employees and maintaining sound human relations in the organization, the management must treat employees with dignity and respect. Employees should be given ‘say’ in the affairs of the organization generally and wherever possible, in the decision-making process as well. A participative and permissive altitude on the part of management tends to give an employee a feeling that he is an important member of the organization – a feeling that encourages a spirit of cooperativeness and dedication to work.
There must be a well-planned communication system in the organization to pass on information and to get feedback from the employees
The trade unions have a crucial role to play in maintaining smooth industrial relations. It is true that the unions have to protect and safeguard the interests of the workers through collective bargaining. But at the same time they have equal responsibility to see that the organization does not suffer on account of their direct actions such as strikes, even for trivial reasons. They must be able to understand and appreciate the problems of managements and must adopt a policy of ‘give and take’while bargaining with the managements. Trade unions must understand that both management and workers depend on each other and any sort of problem on either side will do harm to both sides. Besides public are also affected, particularly when the institutions involved are public utility organizations.
Industrial relations and productivity:
One basic element that distinguishes the world of human beings from the animal world is the necessity to work. Work is one of the basic conditions necessary for the existence of man.The animal world does not have to work in order to live, but man cannot live without work.It has been said that earth is the mother and labour is the father of all wealth in this world. The primitive man used a part of his labour to produce the crude tools which in the present day terminology could be called his capital. The man owned his own tools and was the owner of whatever he could produce with those tools. These tools could not be said to be independent of the man and could not be termed as an independent factor of production. Thus, there were basically, and continued to be even toda.Only two factors of production, that is, human labour and nature.In the course of time as the tools became more and more complex they came to be owned by individuals separate from the producers and they are today called an independent factor of production. So is the land.With further specialization in labour and the concentration of ownership of land and capital into fewer and fewer hands, we have come to identify four factors of production: land labour, capital and organization.Thus,when a factory is established to produce something we say that four factors of production have combined to work together to produce a result.In this process of production we utilize them and, therefore, they are called the inputs. The four inputs that we mentioned earlier can be further classified under two heads:
Improving productivity, therefore, means to secure a higher output out of a given input, more so in terms of input of human labour.
Generally speaking, all other inputs are assisting labour to make it more effective and productive. It has been said so far that given the technological and material inputs and a given capacity of the worker,the will to work materially affects the productivity of the workers and, therefore, of the enterprise.Apart from the other influences on the morale of the workers, the quality of industrial relations has a direct bearing on the workers” will to work. The term ‘industrial relations’ here, covers:
When it is said that the quality of industrial relations has an important bearing on productivity,it is to be realized that it is not so much the role of strikes and lock outs that I have in mind while emphasizing the importance of industrial relations to productivity. Apart from the fact of the open stoppages of production or even the announced ‘go slow’ or ‘work to rule’ practices which directly reduce production even under normal conditions when the work processes are supposed to function smoothly, the quality of industrial relations continues to influence the worker's behaviour and his attitude to work. And while stressing the responsibility of the management for the quality of industrial relations,the limitations of individual management, in this respect, have also to be born in mind. There are many factors influencing the quality of industrial relations that are beyond the control of any individual management.Factors like political climate of the country, multiplicity of trade unions, trade union rivalry, intra-union factionalism and economic factors like inflation and depression, market fluctuations and technological changes cannot be controlled by any one management. They constitute the political and economic environment within which the enterprise has to function.
In a way increase in productivity expenditure on sees that Industrial Relations is stable input is reduced capital investment also may be reduced hence general economy improves with heightened productivity we see.
Following actions of management may affect labour relations.
The productivity can be increased along with better industrial relations and allied activities like.
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Industrial Relations Management Tutorial
Introduction Of Industrial Relation Management
Concept And Determinants Of Industrial Relations And Its Position In India
Managing Industrial Relations Changes, Industrial Relations And Productivity
Changing Technology, Effective Communication And I.r Management Structure
Indian Culture, Industrial Relation International Labour Organization
Trade Union Legislation
Multiplicity Of Trade Unions
Industrial Relation Management And Management Of Trade Union
Ir Strategies - A Discussion
Worker Development And Worker’s Participation
Grievance Handling Machinery
Collective Bargaining – An Overview
Collective Bargaining In India
Collective Agreements In India
International Labour Organisation And Labour Council &constitutional Provisions
Labour Administration Machinery Of The Central Government
Industrial Relations And Its Contemporary Trends
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