Personnel Management and Human Resource Management

Task 1

A).Personnel Management and Human Resource Management What are the main differences?

Personnel management and Human resource Management can be argued as almost same, since it both has almost same motives and functions inside an organization. The main differences which can be identified is in its administrative nature of the two. Since inside an organization, Personnel management is responsible for the important aspects like managing the payrolls, complying with employment law and handling the related tasks as a operational way. But Human resource management is mostly concerned with dealing with the work force that really are the important resources for the success of the organization in the long run.

And Personnel management is considered as almost an independent function of an organization. They work from outside perspective of the organization, but is a part of it. Whereas, Human resource management can be said as the integral part of the organization.

In short Personnel management and HRM can be said as same since both of them are well linked to run the organization.

Advantages

As it is obvious, Personnel Management and Human resource management play a great role in the company's outcome. They have to work according to organizations mission and objectives and carry forward the whole system.

Personnel Management

a. Their work are more Traditional and routine- They deal with day to day issues or they are more concerned with status quo giving responses to demands and concerns as they are presented.
b. From their view, employee satisfaction is said to providing the needed motivation for the staffs to provide excellent customer service, so they try to motivate employees with compensations, bonuses, rewards and simplifications of work and activities.
c. Efficiency Improvement by all round development and usage of full potential of staff creativity.
d. To keep on motivating employees through different incentives and personal stimulation.

Human Resource Management

a. Is proactive in nature. So more ready when the situation arises.
b. Integral in employee management- By recruiting the right staffs and training them in the right way.
c. Effective in solving general queries occurring in the organizations, personal disputes or employee problems professionally.
d. Active involvement in business and marketing decisions. They devise new and efficient plans in order to sustain and compete with their peers.
e. Better public relations by arranging seminars, business meetings and official gatherings for maximum exposure.

Disadvantages

Personnel Management

a. Their main function is monitoring the performance, whereas HRM does the nurturing.
b. Decision making is a slow process.
c. Personal management is reactive, facing problems as they arise. Some problems need planning beforehand which is a drawback.
d. Personnel management activities are narrower than HRM- mainly administering people.

Human Resource Management

a. May not be economically feasible.
b. Ever increasing Stress due to high competition.
c. Should be able to forecast the opportunities and threats and plan accordingly.

1.b) M&S

As seen in today's market, increase in competition in every aspect has lead every organization to think about their existence and position in the market. They started to think about the importance of Human resource management and need of investing in human resource in order to gain competitive edge. Since the employees play a very crucial role in the organizations long term success, its important that every organizations should give importance to rapid organizational transformation.

M&S is my chosen organization and the case is not different. The process has been taken place in a hierarchical fashion- from top management (CEO) to operational core (staffs) which influences the whole organization to change attitudes and behaviors.

If you think about M&S as a customer, first think which comes in your mind is the quality and their excellent customer service. The HRM in M&S understands that only through a happy and motivated employee comes a happy and friendly service, only then the customers can be happy. By understanding this, the prime motive for them is to provide a happy and friendly environment to the employees and staffs to work in, and thus reinventing themselves more as a service oriented organization or customer oriented organization than a product or profit oriented organization.

Thus HRM plays a very important role in shaping up a successful organization, by motivating and bringing out the full potential out of staffs in order to work for a common goal and achieve success.

Task 2
HR PLANNING PROCESS IN M&S

In my opinion its more of a strategic approach that plays a major role in M&S in achieving its overall objectives. HR Strategy will also support other specific strategic objectives undertaken by the marketing, financial, operational and technology departments.

As described above, M&S has redefined itself as a customer oriented organization and they had to take many rapid changes in their organization structure to achieve it. For that it was important that all the staffs and employees are well aware of their importance in shaping up the organization. A constant communication and understanding among top level management and bottom level staffs had to be reinstated. The strategic change brought upon in attitude and behavior towards the customers were well greeted by the staffs which made life easier and pleasant for both the employees and the ultimate customers.

Since customer service is the core of M&S, its important that each and every process should be customer driven. In HRM, recruiting employees has to be specific. M&S has always given importance in recruiting the right person for the right place, and helping them to develop the skills and right attitudes and behaviors by proper training and guidance.

Each staff is well informed of the organization mission, which communicates the vision, objectives and aims of the organization and prompts them all to work as a team for achieving that common goal.

To become more flexible M&S decided to apply a more horizontal management organization style.

The role of centralization was decreased by appointed heads for each business units, which prompted staff coordination and job enrichment. In a situation of excellence, a company has to be able not only to adapt in an outstanding way to its market conditions, but also to develop internal practices that clearly set it aside from the competition. Every changes in organizations are costly, not only financially but also in terms of management times. Main aim of M&S should be to build a future where the strategies and the performance of the company are transformed by stretching the full potential of staff capabilities of the organization better than the peers.

2. B) Recruitment and Selection Process

In this case I have taken M&S and TFL as two different organizations inorder to compare their recruitment and selection procedures.

M&S Recruitment

M&S is committed to an active equal oppurtunity Policy from recruitment and selection, through training and development, appraisal and promotion to retirement. They make it sure that they provide a peaceful environment free from discrimination, harassment and victimisation and thus treating everyone equally.
a. Promote a work environment where everyone is treated equally without any discrimination regarding age, colour, religion, sex, race, ethnicity,disability,sexual orientation, marital status, national origin etc
b. Make a workforce which reflects the diverse community which we serve and maximise personal and commercial activities.
c. Provide excellent training for staffs to raise awareness.
d. Comply with law
e. Review changes in attitude and application of internal policy.
f. Bring out maximum potential out of each and every employee.

TFL (TRANSPORT FOR LONDON)

Tfl is a vast organization. My reason for choosing Tfl cannot be more specific. By looking at the whole process you will find an excellent and robust procedures are being followed by the HRM in ensuring they serve the public in the right way.

The main advantage of Tfl recruitment is that it is very systematic. First they establish the selection criteria, and always specifies the job description very precisely and also have excellent interview process which ultimately is to recruit the right person to right place.

a. TfL is an organisation which puts equal opportunities into practice.
b. Equality of oppurtunities irrespective of any discriminations.
c. Basing all employment and business decisions on merit.
d. Valuing and respecting diversity and benefiting from our differences.
e. They provide a safer environment for the staffs to serve the community.

In my opinion both these organizations, even if they are completely in two different fields, concentrate on customer service and thus are customer oriented. The recruitment process which they have been following also looks similair.

Both organizations have strict recruitment process. Steps from specifying the need of the job to issuing the offer letter, they all follow the structure. This structure really helps them to find the right employee and then by training them irrespective of any discrimination, the management can bring out the maximum potential from each and every employee.

Task 3
Measuring Employee Performance In M&S

The attitude of Marks & Spencer towards their employees can be identified from the following phrase which was promoted during the economic recession time.
“In 2008/09 we introduced new development programmes tailor-made for growing tomorrow's leaders. We also reinforced lines of communication between management and colleagues at every level of the business, so we could provide reassurance through this difficult period. All of which underpin our strategy of being an employer of choice, since we know that great people make a great business”. (http://annualreport.marksandspencer.com/operating-financial/our-people/our-people.aspx)

Marks & Spencer is known for their exemplary Customer Service and Quality care. So Performance management provides important information on each employees and helps to review them. Performance Appraisal process is really helping the management to understand who is working to his full potential and who needs more training.

This eventually helps the organization in 2 ways
1. Improve the service provided by the organization
2. Improve employee morale- understanding his position in the organization and work on the feedback provided by the employer.

In M&S the main procedure in measuring the employee performance is from their attitude towards work and the customers. Since it's the 100s of customers who walk in the shop helps the business sustain, the main focus is always customers and their satisfaction. Another evaluation is through their work outcomes, in what way has he/she helped or benefitted the organizations shared vision. Since an ideal environment is provided for every employee working, its their responsibility to learn quickly and play a significant part in the organizations growth. All In all the main aspect which provides the information on employees are by evaluating whether the main tasks provided to the employee has been done, and how the staff is performing in a given time period.

3 b)
M&S Way Of Rewarding Employees

As I have mentioned above, an employee is the biggest asset to an organization. The right employee who enjoys the work and challenges coming with it will help to grow the organizations image. But for an employee to enjoy his or her work, motivation is a big factor. “Why Should I Work(give my 100%) If I don't have any benefits out of it?” this kind of questions will demotivate the employee and you can bet it will affect the organisation. The main aspect for the employees to work or perform to their complete potential is that, the employer should provide an ideal platform for him/her. In M&S, an appraisal system is carried out every 1 year, in which the manager discusses with the staffs confidentally about the major strengths and drawbacks and way of improving them and how. After the meeting a review plan is devised according to the report made by the manager. This will refer to each and every employee and their pattern of work. If the targets are not met, the management can take action for more training and development.

Different Ways to motivate Employees:

1. Performance related Pay : M&S provides increase in pay according to the effort put in by the employees. And the mangement has promised to provide incentives and extra bonuses such as M&S vouchers and Gift cards and also 20 % staff discounts on products etc to each and every employee if they perform well according to company objectives. This is a great way to bring out the maximum potential from employees and make them work harder but the same time feel happy about it.

2. In M&S,its not only the money that provides the needed motivation to the employees. Its more about fulfillment of ones basic needs. According to Maslow, “A person is motivated by his or her own needs”. And only by providing the satisfier aspects can you keep the employee motivated in the long run.
a. Achievement
b. Recognition
c. Responsibility
d. Advancement
e. Personal Growth
f. Actual Work itself
(Frederick Herzberg - Two Factor theory) (http://www.123helpme.com/view.asp?id=150520)

Task 4
a) Circumstances Under Which Employee can Leave the Organization

As an employee there are 3 main ways you can leave the job.
1. Retire
2. Quit
3. Sack

First two, Retirement and Quiting can be from self decision, but not sacking. This self decision can be made of positive or negetive reasons.

Positive Reasons

a. Voluntary Retirement
b. Happy and being self sufficient
c. Got a new job with higher salary.

Negetive Reasons

a. Mismatch between Job and person
b. Too little coaching & feedback.
c. Too few Oppurtunities to grow within the organization.
d. No Bonus and incentives.
e. Feeling Devalued & unrecognized.
f. Stress and tension from work.
This reasons prove that there are more negetive reasons than positive prompting employees to leave the job

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