Transformation of People Management mechanism in Organizations
Transformation of
Human Resource Management
In the current working
content, managing employees in an organization is really challenging task.
Because Globalization, new innovations & technology, controlling the cost
and facing for complexity in the workplace are some critical factors which
decide the people behaviors as well as their performance. Therefore, the
managerial mechanisms of employee in organizations have changed drastically
over the last few decades. During these periods of time, movement from
Personnel Management to Human Resources Management being a turning point in the
history of people management. Now most of the organization’s Human resources
are managed with a Human-focused attitude. This paradigm shift has created more
competitive advantages on the organization performance through employee’s
skill, capabilities, knowledge, and expertise. At the same time, this
revolutionary concept has been supported to build an energetic, self-motivated,
and reliable human work force to the organization. Therefore, HR Management has
become strategically required tool in a modern business environment.
Transition
of the Personnel Management mechanism.
Personnel Management has not played a fare enough
role to enhance and empower the
employee’s performance and specially the relationship with the
organization. Therefore, Personnel management concepts gradually moved out from
organizations since there is no such a
strategic advantage or value creation.
From the nature or a behavior of personal Management (PM) mechanism, is just a routine and administrative function. And it deals with more rules and regulations made for the employee working. Also, the focus of this people management style is, achieve the set goals and objectives by giving authority to the management. In this case most critical factor is PM mechanism treat the employee as a replaceable and expandable tool. Due to these behaviors of people management style, most important values of employee like job satisfaction, motivation and creativity has been dropped down. This has been directly impacted on the performance and strategic growth of the organization.
New Era of People Management with HRM.
Based on the organization requirement to keep the employee happy and maintain motivation and moral, the people management mechanism has focused on resource management mechanism. Human resource management (HRM) has wider, and broader scope compare to the personnel management system. HRM mechanism understood the importance of employees for an organization and makes the policies and programs to develop the employees. Then it crafted mind set of the organization to think, make decision, and take actions on employees considering as the most important asset of the firm. HRM more focused on the development of people at work. Under human resource management attempt is made not only to make people efficient but to create proper organizational culture to utilize the efficiency. HRM is a proactive function and is not only concerned with the present organizational needs but anticipates the future challenges as well as opportunities to perform better in a competitive environment.
Literature Reviews on People management .
The activities and the decisions, judgment made by management directly impact on employee relationship. That precisely effect on employee image of the organization. (Henderson, 2011; Aikaterini, 2014)
Also employee skill, talent, expertise and the creativity are key valuable resources for an organization in terms of Success and profitability. (Drucker, 1994; Aikaterini, 2014)
Conclusion.
Managing
employees in the modern world is an exciting activity. Absence of proper
attention and attitude towards employee’s expectations and behaviors, that can ruin
an organization. Therefore, the transformation from Personnel Management to Scientific
way of managing people create huge impact to both employees and organizational
growth.
References.
Aikaterini, G. ( 2014) Personnel Management vs. Human
Resource Management: Evidence from Hellas available at https://core.ac.uk/download/pdf/236120771.pdf
Henderson, I. (2011). People Management: Personnel Management and Human Resource Management. Published by the Chartered Institute Personnel Development (CIPD), [Online] 2-31. Available at: http://www.cipd.co.uk/NR/rdonlyres/29D9D26D-83CE-4E76-96C6- EB7AF02B109E/0/9781843982654_sc.pdf [Accessed 1 July 2014]
Drucker, P. (1994). The theory of the business. Harvard Business Review, [Online] 72 (5), 95-104. Available at: http://www.mindz.com/images/Ronaldvandenhoff/file/the_theory_of_business_dr ucker.pdf [Accessed 2 September 2014]
The evolution from personal management to Human capital has creat a huge different on thinking of HR. So that HR professionals shoul change their mind sets to approach HR in deifferent way that they were doing in decade ago.
ReplyDeleteThanks for sharing your valuable thoughts and insights Oshadha. As you mentioned HR profession has been changed their way of presence for the last few decades and still progressing as well.
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ReplyDeletegood Article Duminda.Transfomation of people management you described very well in this article.An employee management system is a distributed system developed to maintain the employee details and the company workflow process systematically.
ReplyDeleteThanks for your encouragement for the post. As you mentioned the human resource managing mechanism should have a systematic approaches to support the organization progress.
DeleteWell written article with interesting topic.
ReplyDeleteOn the other hand, the increasing importance of technology and digitalization, as a result of globalization, has altered the nature of the contest. In such a competitive environment, firms began to transform their human resource capabilities and functions in that way. It is widely accepted that competitive advantage is primarily determined by the efficient and effective use of human resources. Technology has evolved into the most preferred method of reaching highly qualified human resources as a result of advancements in communication technologies.
Thanks For your valuable insights Umesh. Digitalization is a transformation strategy in all over the areas and that helps to bring some productive solutions as well. It's great area to further concentrate.
DeleteSuccessful HR transformation increases the value of human resources that add to an Organization. On the other hand it promote success by reducing costs, increasing market share, growing global markets, and developing new products or services. Thankyou for sharing this timely article Duminda.
ReplyDeleteThe HR field started to come to fruition in eighteenth century at Europe. It based on a basic thought by Robert Owen (1771-1858) and Charles Babbage (1791-1871) during the Industrial Evolution. These men emphasized that individuals were critical to the achievement of an association. They offered the viewpoint that the prosperity of representatives prompted that without sound laborers, the association would not survive.
ReplyDeleteHR arose as an important field in the mid twentieth century, affected by Frederick Winslow Taylor (1856–1915) as he investigated the theory what he named as "Taylorism", endeavoring to work on financial effectiveness and labor force efficiency.
Organizational transformation is on the minds of many business leaders. Smart leaders are always looking for opportunities to increase their organizational effectiveness and strengthen their company culture. This effort is especially critical in times of change like we have experienced as a result of the pandemic. It’s also where organizational transformation becomes the factor for longevity.
ReplyDeletePeople management is a subset of human resource management, is the act of organizing employees and building teams to optimize business performance. By transformation of people management HRM concept developed with a border vision with makes the policies and programs to develop the employees. Good informative article Duminda………
ReplyDeleteAny entity's growth is directly proportional to how it responds to change. Given the constantly changing and tough business conditions, HR departments must respond to rising demands. To navigate through difficult situations, HR processes must be regularly examined and enhanced. HR departments must be ready to adapt to an increasingly worldwide society.
ReplyDeleteMany senior managers are trying to completely transform their organizations today, changing behavior and skills throughout the company in order to enhance performance. Unfortunately, most leadership companies struggle a tested approach to the situation. Well drafted with propoer informative Duminda, thank you for sharing.
ReplyDeleteIn terms of the ability to direct employees and give inspiration in order to increase work productivity professionally, all firms require people management. Communication, active listening, conflict resolution, teamwork, and adaptability are all soft skills required in people management.
ReplyDeleteThank you so much sharing all this wonderful info. Change management drives the successful adoption and usage of change within the business. It allows employees to understand and commit to the shift and work effectively during it. Without effective organizational change management, company transitions can be rocky and expensive in terms of both time and resources.
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