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Differnces Between

PM and HRM

Personnel Managemnt and


Human Resource Management
Agenda
• Introduction to international HRM
• HRM in international business: case China
• MNC staffing and expatriates
• Conclusions
Why study HRM?

It is them who are capable of deciding, implementing, and controlling


activities. Organizations are established not by gods, but by human
beings. No computer can substitute human brain, no machine can run
without human intervention, and no organization has the mandate to
exist if it cannot serve people's needs

"You can get capital and erect buildings, but


it takes people to build a business"
- Thomas J. Watson (founder of IBM)
Cont…

• It is people who possess skills, abilities and aptitudes


that offer competitive advantage to a firm
Core competencies - integrated knowledge sets within an
organization that distinguish it from its competitors and
deliver value to customers (e.g. McDonald's - mgt
efficiency & training; FedEx - package routing, delivery,
and employee relations).
• Sustainable Competitive Advantage through people
The resources must be of value
The resources must be rare
The resources must be difficult to imitate
The resources must be organized
The History of HRM

 The Personnel Management perspective:


Late 18th century industrial revolution in England
Development from the post-World War II until the 60’s

 Human resource management (HRM) phenomenon from


the 70’s to 90’s

 Next development: Human capital management (HCM) in


the 21st century
Differences between PM and HRM
Cont. . .
Cont. . .
HR and ‘management’
A Model of the Shift to HRM
The Context of HRM
Cont . . .
Line Vs Staff Managers

Line manager: he/she is authorized to direct


the work of subordinates and responsible
for accomplishing the organization’s goals.

Staff manager: he/she assists and advises


line managers
Types of HR manager

1. A line function
2. A coordinative function
3. Staff function
HR Manager – Functions and Skills
HR Functions

HRM means “planning, organizing, directing, and


controlling of the procurement, development,
compensation, integration, maintenance, and
separation of human resources o the end that
individual, organizational, and societal objectives are
accomplished”
Cont. . .
HR Functions

1. Managerial Functions
2. Operative Functions
Managerial Functions

Planning :
Effective manager realize that a substantial portion of their time should
be devoted to planning. For the HR Manager, planning means the
determination in advance of a personnel programmes that will contribute to
goals established for the event organization

Organizing:
After a course of action has been determined, an event organization must
be established to carry it out. An organization is a means to an end. Once
it has been determined that certain personnel functions contribute
toward the firm's objectives, the personnel manager must form an
organization by designing the structure of relationships among jobs,
personnel, and physical factors. One must be aware of the complex
relationships that exist.
Cont…
Directing:
• On paper, we now have a plan and an organization to execute that
plan. The next logical function would be that of operation, doing the
job. It may be also called by other names, such as motivation,
actuation, or command, or directing. At any rate, a considerable
number of difficulties are involved in getting people to go to work
willingly and effectively.

Controlling:
• Now, at last, the personnel functions are being performed, Control
is the managerial function concerned with regulating activities in
accordance with the personnel plan, which in turn was formulated on
the basis of an analysis of fundamental organizational goals.
Operative Functions
• Staffing:
• Process through which organization ensures it always has proper number of
employees with appropriate skills in right jobs at right time to achieve
organizational objectives
• Job analysis:
• Systematic process of determining skills, duties, and knowledge required for
performing jobs in organization
• Human resource planning:
• Systematic process of matching the internal and external supply of people with
job openings anticipated in the organization over a specified period of time .
• Recruitment:
• Process of attracting individuals on a timely basis, in sufficient numbers, and
with appropriate qualifications, to apply for jobs with an organization
• Selection:
• Process of choosing from a group of applicants the individual best suited for a
particular position and the organization
Cont…
• Training :
• Designed to provide learners with knowledge and skills needed for their present
jobs
• Development:
• Involves learning that goes beyond today's job; it has more long-term focus
• Career development:
• Formal approach used by organization to ensure that people with proper
qualifications and experiences are available when needed
• Organization development:
• Planned process of improving organization by developing its structures,
systems, and processes to improve effectiveness and achieving desired goals
• Performance management:
• Goal-oriented process directed toward ensuring organizational processes are in
place to maximize productivity of employees, teams, and ultimately, the
organization
• Performance appraisal:
• Formal system of review and evaluation of individual or team task performance
HRM and Employment Relationship
HR Department

President
and CEO

Vice President,
Vice President, Vice President, Vice President,
Human
Marketing Operations Finance
Resources

Manager, Manager, Manager,


Manager, Manager,
Training and Safety and Labor
Compensation Staffing
Development Health Relations
Cont…

Vice President, Vice President,


Human Industrial
Resources Relations

Manager,
Manager, Manager,
Training and
Compensation Staffing
Development

Benefits
Analyst
END

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