Table of Contents

Introduction .................................................................................................................................................. 2 LO1-1.1: Difference between Personnel Management and Human Resource Management: ..................... 3 LO1-1.2: The function of Human Resource Management in contribution to Organisational Purposes: ..... 3

Introduction
An organization is driven by human capital and the quality and effectiveness of the organisation is determined by the quality of the people that are employed. the resources of men money material and machine are collected and coordinated through people. Without people organisation cannot exist. Success for most organisations depends on finding the employees with the skills to successfully perform the tasks required to attain the companys strategic goals. Management decisions and processes for dealing with employees are critical to ensure that the organisation gets and keeps the right staff.

Personnel management refers to the managerial function of estimating and classifying of human resources requirements for meeting organisational goals. It involves strategies that ensure sufficient staff, a right combination of talent and performance in jobs.

Human resource management (HRM) is the governance of an organizations employees. HRM is sometimes referred to simply as human resources (HR).

A companys human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees. Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).

Areas of HRM oversight include among many others -- employee recruitment and retention, exit interviews, motivation, assignment selection, labor law compliance, performance reviews, training, professional development, mediation, and change management.

LO1-1.1: Difference between Personnel Management and Human Resource Management:

The contrast between personnel management and Human resource management is that personnel management basically deals with the employees. That is, their payroll, recruitment and employment laws. On the other hand, human resource management deals with the management of the work force, training and the general well-being of all employees.

Personnel Management - Personnel Management is thus basically an administrative recordkeeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organisational success. Human Resource Development - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organisation, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals. HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and

development etc. But, the HRM approach performs these functions in a qualitatively DISTINCT way, when compared with Personnel Management.

LO1-1.2: The function of Human Resource Management in contribution to Organisational Purposes: