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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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Personnel Management and Human Resource Management-Differences:<br />

1. Personnel Management (PM) concepts emphasize clearly defined rules, procedures<br />

and courses. These rules and customs govern the actions <strong>of</strong> the management. The<br />

relationship between the work force and the management is governed by employment<br />

contracts and collective bargaining. Collective bargaining becomes significant<br />

because employees and management see and treat each other as having divergent<br />

interests. In PM, plularism, that is men having different views is respected as a social<br />

value and the role <strong>of</strong> the union is legitimate. On the other hand in <strong>HRM</strong>, open ended<br />

contracts, the terms <strong>of</strong> which are linked to the exigencies <strong>of</strong> business, and conflict is<br />

viewed as the result <strong>of</strong> negative inter-personal relations rather than structural<br />

contradictions.<br />

2. PM does not focus on strategic management. Its main goal is peaceful or good labourmanagement<br />

relations. Its function is mainly reactive. On the other hand, <strong>HRM</strong> is a<br />

proactive function. <strong>HRM</strong> is not only concerned with the present organizational needs<br />

but anticipates future needs and seeks to release the inner potential and creativity <strong>of</strong><br />

people.<br />

3. The temple <strong>of</strong> PM is built on collective agreement between the employees and<br />

management. Employees get standardized rewards based on job evaluation. But<br />

<strong>HRM</strong> leads to individualization <strong>of</strong> collective relations. Pay is linked with contribution<br />

made by the employee to the relation <strong>of</strong> organizational goal. <strong>HRM</strong> seeks to develop<br />

the competencies <strong>of</strong> the employees so as to derive benefit from this development for<br />

the organization, and to integrate individual and organizational goals. Skill formation<br />

and developments are recognized as the main hallmarks <strong>of</strong> HRD.<br />

4. PM is a routine maintenance oriented administrative function; <strong>HRM</strong> places emphasis<br />

on a continuous development <strong>of</strong> people at work.<br />

5. PM is seen as independent function and sub-functions without giving due regard to<br />

organizational strategies and processes. But <strong>HRM</strong> is viewed as a sub-system <strong>of</strong> the<br />

organization. Therefore, it takes into account its linkages and interfaces with all other<br />

parts <strong>of</strong> the organization.<br />

6. PM takes a narrow view <strong>of</strong> its scope and objectives. It concentrates mainly on<br />

improving the efficiency <strong>of</strong> personnel in isolation <strong>of</strong> the organizations. But <strong>HRM</strong><br />

takes a systems view and attempts not only in making people efficient but also in<br />

creating proper organizational culture.

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