In the present times, the organisations are facing strong competition which is negatively impacting the sustainable growth of the companies. All theorists and researchers are continuously developing strategies which can safeguard the sustainability of the organisations from the threat of this increasing competition. The major emphasis is imposes on the effective use of human resource management practices for achieving competitive advantages. There is a vast and considerable difference between in developing HRM practices and investment in individuals. The use of strategic human resource management practices is widely increasing in the organisations. Companies ranging from small scale to large scale, all are taking potential use of HRM approaches and strategies (Burma, 2014). If the human resource management tactics are perceived as satisfactory, the workforce will have an improved sense of fit within the job and the organisation. HRM poses a direct impact on the organisational effectiveness, job satisfaction and commitment of the employees. Nowadays the HRM practices are more consider as tools for retaining employees in the organisation for a longer rather than just managing human resources. There are several incremental values which are added to the organisational performance through an efficient human resource function (Armstrong and Taylor, 2014).
In the course of managing individuals in an organisation, the human resource (HR) is usually replaced with human resource management (HRM) rather than personnel management (PM). Human resource management is considering as one of the most coherent and strategic approaches for managing the organisation’s highly values asset i.e. human resource (Tooksoon, 2011). In international businesses, the personnel management (PM) approach is continuously replacing with HRM as human resource management is one of the major tools in restructuring employment relationships. The subject of HRM has gained significant importance in last few decades and organisations are continuously implementing the most robust HRM practices for achieving useful results (Lengnick-Hall, et al., 2009).
Earlier there was a group of people which forms an organisation and for attaining shared goals and objectives, they cooperate with each other. It is vital to have effective communication within that group and to manage that group of individuals there develops an approach called personnel management. To handle the issues, conflicts, communications and rewards and recognition of the people the companies highly rely upon this approach. Personnel management was only a tool to manage the workforce but not a strategy to attain the completive benefits in a highly competitive industry. Personnel management is consider as one of traditional approaches for effectively managing the people.
Personnel management adds increasing value to the organisational performance by making the companies highly competitive. The approach of personnel management offers adequate resources and trainings to the employees, so that, the workforces can remain up-to-date. It helps in enhancing the efficiency and productivity of the employees which results into enhanced and improved organisational performance. The key areas of focus in personnel management are recruitment, staffing and selection of the workforce. By valuable personnel management in an organisation, employees use to develop themselves in numerous fields and, as a result, they keep a long-term association with the institution. It results in an upsurge rate of retention of the employees (Klingner, Nalbandian and Llorens, 2015).
Other elements of personnel management which adds value to an organisation includes managerial effectiveness and teamwork. With the support of personnel management, there takes place creation of robust bonds among the organisation’s employees and the company. Therefore, it encourages the sense of teamwork among the employees. Each employee starts respecting and valuing the work of another employee without having any issue or concern. It assists in strengthening of an organisation and its workforce. Personnel management also put in value by increasing the managerial effectiveness. Through efficient personnel management practices employees themselves take much interest in the development aspects; it helps the managers in having more focus upon the other areas of development. Hence, in all the above mentioned ways, personnel management adds value to the organisational performance.
(Source: hrdictionaryblog, 2012)
With the continuous increasing technology and global competitions, there was an increasing demand for a more concerned and apprehensive approach for managing the workforce. Therefore, after the personnel management approach the very next strategy or practice which came into implementation was human resource management. Earlier there was no separate HR department, the executives of other departments such as Accounts or Finance. After that there takes place one-way linkage, in which human resource management come into existence only at the implementation phase. Next was the two-way linkage, where HRM was involved in both implementation as well as business strategy level. The final stage was integrative linkage, where human resource management was completely integrated and has equal engagement in the business development similar to other organisational functions (Kaufman and Miller, 2011).
After the successful implementation ad involvement of human resource management the next phase was linkage of organisational strategy with HRM which results into development of strategic human resource management i.e. SHRM. In present times SHRM is one of the finest approaches used by maximum number of organisation for attaining competitive benefits and long-term sustainability. The SHRM initiates by integrating the HRM approach with the generic business strategies of Porter. The three generic strategies of Porter i.e. quality, innovation and cost-leadership were successfully integrated with the practices and philosophies of human resource including facilitation, utilisation and accumulation. Hence, by combining both the philosophies of HR and strategies of business there can be achieved higher competitive benefits, improved association and faster attainment of organisational goals (Storey, 2014).
(keydifferences, 2015)
Personnel management has supported the growth and development of the organisation in an extended manner but with extensive technological development and globalisation, organisations are taking use of innovative concepts. Personnel management was basically a traditional approach which has its focus only on the workforce and association with the organisation. There were few loopholes in personnel management which restricts organisation in achieving greater competitive benefits and thus, there was development of HRM approach. With the development of technologies, effects of globalisation and changing market trends, the organisations started using the concepts of HRM instead of personnel management for being competitive in the market (DeCenzo, Robbins and Verhulst, 2010).
It was realised that personnel management is just restricted to the management of the people working in the companies i.e. the employees. But the human resource management is a much wider concept which comprises of personnel management as well as several other aspects of an organisation. The personnel management was worked over the contracts and agreements which were written in nature and was developed by the companies with no major focus upon the employee development. There were set rules, customs and procedures for everything taking place in a company. The employees used to work under a strict monitoring and controlling by the senior managers and executives. They were not allowed to have their participation and engagement in the organisational decisions. Pluralist form of relations exists between the employees and the employers which gives rise to workplace conflicts due to restricted communication channels. Even the performances of the employees were evaluated with fixed grades with no additional incentives and performance appraisals. All the organisations take use of a similar approach for managing the employees. Therefore, it restricts personal development of the workforces as well as there were very less opportunities with the employees to switch to other companies (Bratton and Gold, 2012).
Later to stage of personnel management, there was development of human resource management approach. Both of these approaches have several diverse factors. But due to introduction of human resource management with a new and revised structure, organisations started implementing HRM in their businesses. The HRM approach works going beyond the contracts. It was not restricted to set guidelines, the HR professionals take use of new and innovative strategies for motivating the employees and providing them increased opportunities for their professional development. Instead of taking use of strict evaluation and monitoring, the employees were managed with a nurturing aspect. There were providing constructive feedbacks to the employees in a well-designed and improved manner so that they can work upon the loopholes with a positive approach. HRM also results into development of a unitarist nature of relations among the employees and the employers which provide opportunities to the workforce to have an open discussion with the senior managers. The discussion can be related to organizational policies, rules, and reward programmes, issues and grievances. There were no communication barricades in the approach of human resource management (Storey, 2014).
Thus, with all such differences and potential values of HRM, the organisations started implementing HRM in their companies and at the workplaces. Because of the higher demand for the talented and the competent employees in the companies, the organisations started using the HRM practices and strategies for retaining the employees. And with all these changing aspects, slowly and gradually human resource management overlapped the personnel management in all the organisations, workplaces, strategies and theories.
In specific, the main aim of human resource management is to enhance the employees’ contributions in the organisations. These contributions are in the form of success, working productivity and innovative ideas. HRM must be accountable for collective and social objectives. It means that HR managers must maintain equity towards the various social ethical values, as well as, the managers must reduce the negative forces on the organisations. It is the chief aim of human resource management to establish higher and equity based standards at working place for each and every employee (Lievens and Chapman, 2010).
There are several ways by which HR function adds value in an organisation. The primary way of adding enhanced significance is through hiring and recruiting the best talent in the company. Recruiting an employee is the key to the success of any business as the employees help the companies in running the business, as well as, representing the business to the customers. When it comes to increasing the organisational value, effective recruitment plays a major role. There is enhanced public image of the company; improved workforce relations and better organisational performance as a result of the effective recruitment practice of HRM (Huselid andBecker, 2010). On the other hand, absence of valuable recruitment process results into increased employee turnover, upsurge overhead costs and reduced employees’ morale. The HRM theories focus on the techniques of selection and recruitment and draw the advantages of employee selection process, assessments, interviews, etc. In CIPD i.e. Chartered Institute of Personnel and Development, there are number of HRM professionals who have their extensive contributions in uplifting the organisations and the organisational productivity. It is the platform which helps the companies in building a strong association with their employees and attains increased employee engagement through effectual HRM practices and policies. Efficient human resource management ensures an organisation that there will be employment of potential and competent employees who can serve the organisation in the utmost efficient manner. Retention and talent acquisition are the two major way6s through which HRM adds value to an organisation. HR function helps in retaining the potential talent by providing an appropriate job design and workplace environment to the employees (Rich, Lepine and Crawford, 2010).
HR functions also add value in a company by managing the line managers in an efficient manner. This is performed by several activities undertaken by the HR professionals comprises of supporting employees in personal development, offer learning solutions, work over the issues related to workplace engagement and motivation, offering professional advices and administrating services. With all the above mentioned functions, the HR function effectively helps in developing a better working place with increased pro-activeness and efficiency in working. The HR professionals work with a collective perception for maintaining equity in an organisation. There are number of workplace issues which lead to negative environment at the workplaces. But with sound and equity based HR practices, these issues are resolved in a constructive manner. HR function provides legal protection to both the employees and the organisation. There are several wrongful and discrimination based termination laws which impact the position of the company in the market (Farndale, Scullion and Sparrow, 2010). The HR professional keeps on speeding up the new employment and labour laws by providing knowledge of these laws to the managers and the executives. They support in building equity based and fair promotional systems in the organisations o that any employee do not leave the organisation due to discrimination. As well as this function of the HR department saves a company from getting involved in legal issues related to employee grievances and inequity.
In the planning process of the organisational policies and principles the role of HR professional is significantly vital. The HR function plays a key role in identifying and analysis the threats, strengths, opportunities and weaknesses of the organisation, as well as, the employees. Thus, to plan an appropriate strategy it is essential to have understanding of these factors. Therefore, HR supports in framing of policies which funds the organizational development and success. The key area where HR functions serves is the engagement and retention of the employees. There are several motivational theories which have been developed by renowned theorists; the main emphasis is over having employee satisfaction and motivation (Gupta, 2016). These theories were developed so that the employees can motivate and retain in the company for a longer time period. As per the Maslow’s hierarchy theory, Herzberg theory, McGregor’s theory etc. the enhanced employee motivation is must for the organization to achieve success and have an elevated retention rate. Derived from the aspects of these motivational theories, there has been developed several HR concepts which explain that the main function of the HR department is to enhance employees’ motivation and morale (Thite, Kavanagh and JOHNSON, 2012). There are several initiatives taken by the HR professionals for achieving increased employee engagement such as the HR function makes assure that the employees feel that they are the most valuable assets for the organization. By offering them such value, they try to enhance the morale of the workforce which ultimately results into increased productivity. The HR professional also asks the workforce for their inputs, it means that they offer a chance and open platform to the employees where they can share their ideas and view-points. It helps in rapid involvement of the employees in the organization and mainly the newly recruited employees. These kinds of activities build the confidence of the employees and motivate them to associate with the organization and serve with utmost efficiency (Allen, Bryant and Vardaman, 2010).
Another key function which acts as the most vital for enhancing the organizational performance is the retention of the employees. In present scenario, companies take use of enormous measures and strategies for retaining their competent and talented workforce with them. But due to high competition, the employees easily switch to other competitive companies. Therefore, the organization lays down pressure on the HRM department to retain their skilled and talented employees in any manner. The HR professionals provide several benefits and incentives to the employees. These benefits ate in terms of rewards and recognitions. As per the theorists, humans are motivated mainly with recognitions (Sullivan, 2015). Therefore, by offering rewards and recognitions, healthy workplace environment, opportunities for personal and professional development and performance appraisal, the employees retain in an organisation for extensive period. Few such examples are Google which offers the employees with great employee benefit programs, another companies such as Microsoft, General Electric, IBM etc. are those organizations which implements knowledge and talent management practices in their companies (Sullivan, 2005). All these initiatives result into increased organisational productivity mad performance. For such welfare programs and initiatives, all these companies rely upon their HR departments which are highly efficient and competent. Therefore, it can be analysed and evaluate that the HR functions plays a vital and major roles in adding continuous and extensive value to the organisational performance with their great efforts and effectuality (Morgan and Jardin, 2010).
Conclusion
Human resource management is one of the fastest growing aspects in all the business organisations. The primary and key aim of employing this approach is to have a better employee-employer relationship in the companies. The reported concludes that both personnel management and human resource management have provided several benefits and values to the organisation in their respective manner. But with the change in time, the HRM approach started overlapping the personnel management approach. It was the result of the rapidly globalising economies, introduction of new technologies and the tough market competition. Thus, as a result of all these factors, the companies started implementing HRM function. The report has critically analysed as well as evaluated all they major values which the HR functions adds in an organisation. The HR function supports an organisation in having a long-term association with the employees, increasing organisation productivity by motivating the employees through rewards, recognitions, talent management and several trainings and development sessions. The HR function also plays a major role in eliminating the workplace issues and conflicts and developing a friendly working environment which results into development of friendly association of the employees. Therefore, from an overall analysis it can be conclude that for attaining higher competitive advantages, upsurge retention arte and higher sustainability the organisation should have an effective HR function in place.
References
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Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice.Kogan Page Publishers.
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