CHAPTER FOUR
HUMAN RESOURCE (PERSONNEL) MANAGEMENT
Introduction
The most important resource in an organization are its human resources that is, the people supply
the organization with their work talent, creativity and drive. Thus among the most critical tasks
of a manager are the selection, training and development of people who will best help the
organization meet its objectives.
4.1 The concept of Human Resource management
4.1.1 Definition:
Human Resource Management (HRM) is the management function that deals with the recruitment,
placement (positioning), training and development of organizational members.
4.1.2 The current trends in Human Resource Management
Human resource is changing its structure almost every day in accordance with the changes in technology
and to be on top, the HR industry has to bring out a working model into practice that maximizes
productivity and increase flexibility and efficiency simultaneously.
Managers and HR professionals should be aware of the current trends (drift or shift) in HRM and adapt
them quickly to ensure the company is at the forefront of innovation. As a result, it helps the business to
be in line with upcoming changes and quickly embrace the new technology.
From this perspective, some of the latest trend in HRM includes;
i. Shift to employee’s experience: Due to technological changes, most businesses are shifting from
employee’s engagement to employee’s experiences. It done by improving employee’s career
among others.
ii. Data security: Human resource automation allows employees’ to use software that can backup
data and protect critical company data and to also reduce errors that may occur during manual
processes.
iii. Mobile Access: This is where employees across all divisions and sectors access different
applications via mobile app. HR application in a given company can now be accessed through
mobile gadgets thus making work easier.
iv. Rise of intelligent self-service tools: The existence of intelligence self -service tools has helped
the HR department to conduct time training and ease of reporting.
In a nut shell, the HR world is changing daily and new trends keep coming up.
4.1.3 Differences between personnel and human resource management
Although both Human Resource management and personnel management focuses on people
management, if we examine critically, we realized many differences between them.
a) The nature of relationship: Personnel management focuses on more on individual interest
than group interest. HRM focuses on the fulfillment both individuals and organizational
goals. Here the organization’s need are well satisfies and that of the members are also
well taken care of.
b) Relationship of power and management: The distribution of power in personnel
management is centralized where top managers has full authority in decision making
where even the personnel managers are not even allowed to give ideas or take in any
decision which involves employees. Meanwhile, in HRM there is decentralization of
power where the power between top management is shared between middle and lower
management groups. This is known as Empowerment because employees play very vital
role with Line and HR managers’ beneficial decision for the organization.
c) Leadership and management role: Personnel managers’ emphasis on leadership style
which is very transactional. This style of leadership merely sees the leader as a task
oriented person. On the other hand, HRM create leaders who are transformational. This
leadership style encourages business objectives to be shared by both employees and
management.
d) Contract of employment: In personnel management, employees’ contract of employment
is clearly written and employees must observe strictly the agreed employment contract.
This contract is so rigid that there will be no room for changes and modifications.
HRM does not on one- time life- long contract where working hour and other terms and
conditions of employment are seen as less rigid. HRM today gives employees the
opportunity and freedom to select any type of working system that can suit them and at
the same time benefit the organization as well.
