Discuss about the Personnel management in small organisations and human resource management in large organisations?
Human resource management is defined as the management of a company’s human resources in a way that they add more value to the organisation while achieving their individual career goals (Armstrong, 2006). This report gives an in-depth understanding of the role played by personnel management in small organisations such as Food for Health and the role played by human resource management (HRM) in large organisations such as Google.
Both HRM and personnel management are responsible for handling the growth and development of the most precious assets of the organisations that is their human resources in a manner that they eventually become more valuable for the organisation (Adewale & Anthonia, 2013). Personnel management is a traditional approach to people management and is practiced by small organisations where the number of employees is less. Personnel management is characterised by indirect communication and slow decision making process (Bhatia, 2007). Contrary to this HRM is a modern approach to people management and is practiced by large organisations which view their employees are most precious assets which must be managed in a way to enhance their commitment towards organisation’s vision and values (Armstrong, 2011). HRM is characterised by direct communication and a comparatively quick decision making process.
Different functions of HRM contributes towards organisational purposes in different ways such as, recruitment and selection function ensures right talent is available at right time to fill the positions matching their expertise and skills, training and development functions identify employee training needs and satisfy them in best possible manner, performance appraisal and reward system play a vital role in enhancing employee motivation, commitment and contribution towards the success of the organisation, employee relations functions measure level of job satisfaction and employee engagement to evaluate the strength of employer and employee relationship, Compliance with employment legislations focuses on developing an ethical and fair work environment with implementation of fair workplace policies and procedures (Deb, 2006).
Implementing various HRM policies and procedures such as recruitment and selection, induction, performance appraisal, retention, conflict resolution, handle grievances, termination of employment etc are the primary responsibilities of a Line Manager (Wilson, 2005). A line manager’s role expect the individual to posses good leadership skills, promote sound industrial relations, comply with all employment legislation and encourage employee to actively participate in the process of decision making. Line managers are thus responsible for managing employees and getting the work done so that HR managers can take up more strategic roles and support various business strategies.
The process of human resource planning involves organisational strategies for effective acquisition, utilisation, improvement and retention of human resources in a way that they show high contribution towards the achievement of organisational goals (Cooper & Burke, 2011). Human resource planning process is required to forecast and meet future manpower needs. It ensures recruitment and selection of talented people that can contribute towards the knowledge economy of the organisation. In times of organisational change HR planning process plays an important role in minimising resistance to change and managing change. It also facilitates restructuring of work processes when needed and identifies individual training needs (Crawley, et al., 2013). HR planning process manages redundancy and retirement and is thus responsible for overall development of human resources.
The seven stages that make up the HR planning process are: Analysing organisational objectives by measuring the objectives and targets of different departments and calculating the total amount of work that must be performed (McManus, 2006). Performing an audit of existing workforce their capabilities, skills, potential and overall performance. Forecasting future manpower needs to fill up vacant positions. Forecasting manpower supply and identifying internal and external sources that have matching skills and competencies to meet the demand. Maintaining equilibrium between demand and supply. Formulating a HR action plan based on the outcomes of prior stages (Salaman, et al., 2005). Last stage involves implementing, monitoring, controlling and evaluating the action plan for planning further improvements.
Google being a large organisation has a complex recruitment and selection process with 6-8 rounds which a candidate must pass to be a part of the company recognised worldwide as one of the best places to work (Morrow, 2008). The recruitment process comprises of two attitude and reasoning test, two to three technical interviews with managers at different levels and then two rounds with the HR where the candidate’s basis management and leadership skills are judged. Google has an internal HR recruitment team which are responsible for complete recruitment and selection process starting from creating job description, job posting, short listing, arranging interviews till induction of selected candidates (Morrow, 2008). Having a tough recruitment and selection process help Google hire some of the most competent employees who are future-oriented, vision-minded, innovation-mined, engagement-minded, and passion-mined and strive for excellence.
Food for Health being a small organisation has a simple recruitment and selection process comprising of just 2-3 rounds (Food For Health, 2016). Most of the vacancies are passed to employment agencies as maintaining an internal HR department is not cost effective. A simple recruitment and selection process help the company identify good talent in a cost effective manner.
Google has a complex recruitment and selection process which help the company hire competent employees who strive for excellence and innovation (Morrow, 2008). All most all vacancies are handled by internal recruitment and selection team as they understand the needs of the company better than any external employment agencies. Food for Health being a small organisation does not have enough budgets to maintain an internal recruitment and selection team thus use external employment agencies for meeting their human resource needs (Food For Health, 2016). It looks for candidates with knowledge of health hood industry and good communication skills which can be judged effectively through a simple recruitment and selection process.
Motivational theories form the foundation for the development of reward management systems. Maslow’s need hierarchy theory and the two-factor theory also called motivators-hygiene model are the two most commonly used motivation theories which identify recognisation, money, work culture, incentives, work itself, security, safety, roles and responsibilities and interpersonal relationships as the factors that lead to high employee motivation (Snell & Bohlander, 2012). While designing reward management systems organisations must ensure that these needs of the employees are satisfied in order to enhance motivation to deliver high performance and commitment towards the achievement of organisational goals.
The process of determining the value or worth of a job in comparison to other jobs within the organisation is defined as job evaluation (Miller, 2007). Skills, competencies, knowledge, qualification, responsibility, level in hierarchy, environmental conditions, occupational hazards, productivity, cost of living, government regulations, employee perception of wages, trade union, company’s financial condition and supply and demand of labour in the market are some of the common factors that determine pay within an organisation.
Rewards systems within an organisation are designed to evaluate employee performance and reward them based on the level of their performance (Bhatia, 2007)
Its primary purpose is to motivate employees to deliver high performance when performing individually or within groups. An organisation’s size, age, profitability, nature of sector in which it operated, demand and supply of human resources, employee expectations, nature of job, internal and external economic conditions, type of employment and environmental stability are some of the factors that influence effectiveness of rewards systems in different contexts.
Methods which are commonly use for monitoring employee performance are; performance appraisal, sales report, error report, accuracy report, feedback from team members, supervisors and observation, use of self-monitoring tools like checklists and activity logs and 360 degree feedback techniques (Armstrong, 2011).
Medical situations, death, family obligations, unfair treatment, inappropriate management style, retirement age, unsatisfactory working conditions, insecurity of employment and secured a more attractive opportunity in some other organisation are some common reasons for cessation of employment within an organisation (Armstrong, 2006).
Like its hiring process Google has a bit lengthy exist procedure with starts with submitting the resignation to the supervisor or manager, face to face discussion for negotiation and retention, acceptance of resignation, serving a notice period of 3 months or compensating with amount mentioned in employment terms, completing the exit documents and forms, and finally the exit interview to record employee experience and suggestions. However in case of Food for Health exists procedure is short and simple and ends with submitting the resignation to director, discussion for retention and experience with the company, and notice period of one month or as agreed.
HRM and employment cessation arrangements are affected by some of the regulatory and legal frameworks such as Health and Safety Act, Anti-Discrimination Act, Diversity, Equal Opportunity, Equal pay and Equal work etc (Armstrong, 2006). Legal acts such as the Employment Right Act (1996) oblige both employee and employer to adhere to the terms and conditions of employment contract or as stated in law of employment (Deb, 2006). As per employment rights any employee who is absent from work owing to any form of injury or sickness must is eligible for full paid leave day.
Conclusion
Personnel management in small organisations and human resource management in large organisations play almost similar role of managing and developing the human resources of an organisation in a way that they add more value to the organisation and show high commitment and contribution towards the achievement of desired organisational goals.
References
Adewale, O. O. & Anthonia, A. A., (2013) Impact of Organizational Culture on Human Resource Practices: A Study of Selected Nigerian Private Universities. Journal of Competitiveness, 5(4), pp. 115-133.
Armstrong, M., (2006) A Handbook of Human Resource Management Practice. London: Kogan Page Publishers.
Armstrong, M., (2011) Armstrong’s Handbook of Strategic Human Resource Management. London: Kogan Page Publishers.
Bhatia, S., (2007) Strategic Human Resource Management : Winning Through People. New Delhi: Deep and Deep Publications.
Cooper, C. L. & Burke, R. J., (2011) Human Resource Management in Small Business: Achieving Peak Performance. Cheltenham: Edward Elgar Publishing.
Crawley, E., Swailes, S. & Walsh, D., (2013) Introduction to International Human Resource Managemen. Oxford: Oxford University Press.
Deb, T., (2006) Strategic Approach to Human Resource Management. New Delhi: Atlantic Publishers & Dist.
Food For Health, (2016) About Food For Health. [Online]
Available at: https://www.foodforhealth.com.au/#about
[Accessed 2016].
McManus, J., (2006) Leadership: Project and Human Capital Management. Burlington: Butterworth-Heinemann.
Miller, A. P., (2007) How to Manage Human Resource in Organizations. Maitland: Xulon Press.
Morrow, B., (2008) Internal Analysis of Google Inc.. [Online]
Available at: https://benmorrow.info/blog/internal-analysis-of-google-inc
[Accessed 2015].
Salaman, G., Storey, J. & Billsberry, J., (2005) Strategic Human Resource Management: Theory and Practice. London: Sage.
Snell, S. & Bohlander, G., (2012) Managing Human Resources. New York: Cengage Learning.
Wilson, J. P., (2005) Human Resource Development: Learning & Training for Individuals & Organizations. London: Kogan Page Publishers.
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