The diagram to follow (Appendix.1) is widely accepted as the basic strategic HRM model.
The way in which the main differences between the two approaches can be summarised is that Human Resource Management combines various functions from Personnel Management. By putting all the functions together, this then produces one whole strategic system, this can then be used to gain a competitive advantage.
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Appendix.1. Strategic HRM or managing the employment relationship? Bob Kane and Ian Palmer. International Journal of Manpower. Vol. 16 No. 5/6, 1885. pp. 6-21.
Beer and Spector (1985) outlined the new assumptions' which underpin policies identified with the HRM transformation' as follows.
New assumptions (HRM) Old assumptions (Personnel Management).
Proactive, system-wide interventions, with emphasis on fit, linking HRM with strategic planning and cultural change. People are social capital, capable of development. Coincidence of interest between stakeholders can be developed. Seeks power equalisation for trust and collaboration. Opens channels of communication to build trust, commitment. Goal orientation. Participation and informed choice. Reactive, piecemeal interventions in response to specific problems. People are a variable cost. Self interest dominates, conflict between stakeholders. Seeks power advantages for bargaining and confrontation. Control of information flow to enhance efficiency, power. Relationship orientation. Control from the top.
Appendix.2. Reference: Handout provided by Pam Cogley, HRM Tutor, HNC Business Course 2003.
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4. HISTORICAL APPROACH AND PROGRESSION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT.
The progression from Personnel to Human Resource Management started to roll during the 1980's. Managerial power was increasing and due to this trade unions were diminishing. The Personnel' function was beginning to change, and the relationship between the employer and their employees was improving.
