Shrm Personnel Management

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Amity Business School

SHRMInvolves aligning initiatives involving how

people are managed with organizational

mission & objectives


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A linear strategic HRM model


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Strategic Human Resource Management

Involves development of consistent, aligned collection of

practices, programs, and policies to facilitate achievement of

strategic objectives

Integration of all HR programs within larger framework,

facilitating mission and objectives

Writing down strategy facilitates involvement and buy-in of senior

executives and other employees


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Linking Strategic Planning and Human Resources


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COMPONENTS OF SHRM

1. It focuses on organizations human resources (people) as primary

source of competitive advantage

2. The activities highlight HR programmes, policies and practices as

the means through which the people of the organization can bedeployed to gain competitive advantage

3. The pattern and plan imply that there is a fit between the HR

Strategy and organizations Business strategy (vertical fit) and

between all HR activities( Horizontal Fit)

4. The people, practices and planned pattern are all purposeful thatis directed towards the achievement of the goals of the

organization


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Outcomes of Strategic HR


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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.


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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 exchangedfor 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.


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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. PMs 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.


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Differences between Human Resource Management

(HRM) and Human Resource Development (HRD)1. HRM is a subset of the entire management processes of an

organization. HRD is a subset of HRM.

2. Scope of HRM is wider. Scope of HRD as compared to HRM is

narrower.

3. HRM manages and develops the human elements of an organization

in its entirety on longer term basis. HRD focuses on those learning

experiences which are organized for a specific period to bring about

the desired behavioral changes.

4. HRM emphasizes that employees, their abilities and their attitudes

constitute an important organizational resource that should be used

effectively and efficiently to achieve organizational as well as

employees' goals. HRD emphasizes mainly on training and

development of employees.


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5. HRM takes decisions on HRD plans. HRD thus depends on the decisions of

HRM.

6. HRM at its center has HRD. HRD's cooperation is important for overall

success of HRM. HRD has to work within the realm of HRM and therefore,it's objectives should be in tandem with the broader objectives of HRM.

Thus, HRM and HRD are interdependent.

7. HRM takes care of all the human needs and tries to satisfy these needs so

that the employees are motivated from all the angles to contribute their best

to achieve organizational goals. HRD focuses on upgrading the skills and

competencies of the employees in order to improve the performance of the

employees on the job.


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Traditional HR Versus StrategicHR

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Shrm Personnel Management