How to Structure the Personnel Department

Question: Discuss about the How to Structure the Personnel Department. Answer: Conducting survey to determine that whether an organization can achieve its business goals through a hard or soft approach to HRM most appropriately: From the survey it has been recognised that the human resource management (HRM) is involved with managing the people through the employee-employer relationship. This is the crucial activity which helps an organisation for the achievement of the objective for the organization. Considering the view of Armstrong (2010), there is the instrumental or hard approach to the HRM which stresses on the close integration about the human resource systems, policies and activities with the business strategy. The hard approach also views human resource as vital factor of the production like capital and land. Therefore, it can be inferred that the hard approach is entirely focused on the HRM. The hard approach often becomes the reason to obtain competitive advantage by the organisations. On the other hand, Fowler (2012) addressed that there is the humanistic or soft approach for HRM which still emphasizes on the significance of integrating an HR strategy and organizational strategy. The soft approach suggests that best outcome can be obtained in those circumstances where the human resources are considered to be valued assets and crucial source of the competitive advantage as stated by (Guest, 2009). Thus, the focus is on the development and improvement of the asset and producing commitment through ensuring that employee needs have been satisfied. Thus the vital focus of soft approach is also on the human resource management. Thus to achieve the business goal for an organization, it is required to incorporate both the perspectives the hard and soft approach to HRM. Gunnigle et al. (2013) stated that while the hard aspect would be responsible for the human resource planning, strategy formulation, the soft feature would help to conduct consultation and communication wit h employees, leadership and motivation. Thus, it has been found from survey that the peers highly believe that the combination of both hard and soft approach to HRM is aimed to ensure the meeting of the organizational goals. Reflect on findings: Result of the survey findings: From the survey, it has been found that the best approach for HRM is to maintain the balance between both the humanistic and the instrumental approach. Thus, the balancing act between soft and hard approach would be helpful to effectively produce the efficient organisation. On the other hand, there is the limitation of considering the soft approach. It is when all employee benefits are summed up, the workforce cost makes the business at the competitive disadvantage position as cited by (Marchington Wilkinson, 2011). How HRM evolved over time: Initially, the human resource management was known to be the personnel management approach for maximum of 20th century (McGovern et al. 2010). Then the nature was mainly administrative. It had concerned itself through employee record keeping, implementing functions like training, recruitment, welfare oriented activities and others to meet the statutory compliance. In later decades, the personnel management approach had been evolved towards the traditional human resource approach. Such new approach had been considered to be valuable resources for the workers due its more dynamic nature. Gradually this human resource management turned to be the line management function being linked with the core business activities (Sisson Storey, 2012). Thus few crucial activities which have been found in HR department are recruitment and selection, training and development, motivation and the employee benefits and the appraisal and performance related salaries. Thus, the final evolution of HRM is th e strategic approach of human resource management. Role of HRM in contributing to realization of business goals: HRM is the strategic activity by which the managers establish the long-term direction of the organization, develop the strategies to achieve business goal and also set particular performance objectives. Thus, it has been found that HRM plays key role in reflecting strategic objectives and also values within organization. Considering the view of Marchington Wilkinson (2011), it also recognises the competencies of the organization and matches the people with those. HRM is crucial for supporting the climate, culture and the organizational processes for attracting and retaining the effective employees. Thus, the HRM plays vital role to build and sustain the organizational commitment. Factor or circumstances may change preferred approach to HRM: The circumstances which require improvement in the organisational performance level and need to generate competitive advantage then the preferred approach of HRM shifts from soft to hard. On the other hand, when there is the need to integrate all HR related practices and policies with the strategic business objectives, the HRM approach is shifted from the hard to the soft (Fowler, 2012). References: Armstrong, M. (2010). A Handbook of Personnel Management Practice, London: Kogan Page. Fowler, A. (2012). How to Structure the Personnel Department, Personnel Management Plus, 3(1), 22- 3 Guest, D. (2009). 'Human Resource Management and Industrial Relations', Journal of Management, 24(5), 503-521. Gunnigle, P., Heraty, N. Morley, M. (2013). Personnel and Human Resource Management Theory and Practice in Ireland, Dublin: Gill and Macmillan Marchington, M. Wilkinson, A. (2011). Core Personnel and Development, London: IPD. McGovern, P., Gratton, L., Stiles, P., Hope-Hailey, V. Truss, C. (2010). Human Resource Management on the Line?, Human Resource Management Journal, 7(4), 12-29. Sisson, K. Storey, J. (2012) Managing Human Resource and Relations, Great Britain.