Personnel Management vs Hrm
chapter 1
People management: personnel management and human resource management
i n tro d u c t i o n
Good managers are not only effective in their use of economic and technical resources, but when they manage people they remember that these particular resources are special, and are ultimately the most important assets. People are the only real source of continuing competitive advantage. Good managers also remember that these particular assets are human beings.
le a r n i ng ou tco m e s
On completion of this chapter you should:
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have a good appreciation of what the ‘people management’ function in contemporary organisations comprises know what we mean by the term ‘human resource management’ (HRM) and how this differs from the earlier ‘personnel management’ (PM) concept of the function have some appreciation of the theoretical development of HRM understand the relationship between HRM and business strategy have an appreciation of the practical application of HRM understand the impact of new working methods on HRM recognise some of the key themes of HRM in the twenty-first century.
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A free sample chapter from Human Resource Management for MBA Students 2nd Edition By Iain Henderson Published by the CIPD. Copyright © CIPD 2011 All rights reserved; no part of this excerpt may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency. If you would like to purchase this book please visit www.cipd.co.uk/bookstore.
2
Human Resource Management for MBA Students
The definition of terms such as ‘personnel management’ and ‘human resource management’ is one area of particular confusion and irritation to general managers, and we will discuss later the differences between what
People management: personnel management and human resource management
i n tro d u c t i o n
Good managers are not only effective in their use of economic and technical resources, but when they manage people they remember that these particular resources are special, and are ultimately the most important assets. People are the only real source of continuing competitive advantage. Good managers also remember that these particular assets are human beings.
le a r n i ng ou tco m e s
On completion of this chapter you should:
●●
have a good appreciation of what the ‘people management’ function in contemporary organisations comprises know what we mean by the term ‘human resource management’ (HRM) and how this differs from the earlier ‘personnel management’ (PM) concept of the function have some appreciation of the theoretical development of HRM understand the relationship between HRM and business strategy have an appreciation of the practical application of HRM understand the impact of new working methods on HRM recognise some of the key themes of HRM in the twenty-first century.
●●
●● ●● ●● ●● ●●
A free sample chapter from Human Resource Management for MBA Students 2nd Edition By Iain Henderson Published by the CIPD. Copyright © CIPD 2011 All rights reserved; no part of this excerpt may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency. If you would like to purchase this book please visit www.cipd.co.uk/bookstore.
2
Human Resource Management for MBA Students
The definition of terms such as ‘personnel management’ and ‘human resource management’ is one area of particular confusion and irritation to general managers, and we will discuss later the differences between what