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Human resource management is very challenging work for a manager in today’s world as employees have different assumptions, attitude, psychology and ambitions or aims in life. It is concerned with people in management and is refers to policy, procedure, framework, philosophy and practices followed by company to manage people (Mathias & Jackson, 2010). Every company is made of people and so it is important for company to develop their skills, motivate them and ensure high level of commitment from them to achieve organizational objective. Human resource main job is to empower employees in organization which includes training employees for their relevant positions, sharing vision and common goals with employees and sharing profits and benefits between both management and employees.

In today’s world, due to immense competition, there is a lot of competition to get right person on right job and so company has to maintain their human resource well to meet globalization and industrialization challenges in business. Companies’ might have technology and capital to meet market challenges, but it is the human resource that makes these things successful. Organizations that can acquire, motivate and retain outstanding workers will grow and be effective and efficient and vice versa (Noe, Hollenback, Gerhart & Wright, 2009).

In this assignment, author will discuss human resource management in detail in with different aspects like how it is different from personnel management, way organizational purposes are achieved through functions of human resource management, responsibilities of line manager in HRM and ways in which legal and regulatory framework impact HRM. Author will also discuss employee recruitment in detail with in depth information on reasons as to why Hr planning is done in organization, stages of planning HR requirements, comparing recruitment and selection process in two organizations and evaluating the effectiveness of these processes. Author will include detailed information on rewarding employees as a tool to motivate and retain them, comparing them with various motivational theories, assessing their effectiveness and ways to monitor employees. At the end author will provide a conclusion after discussing methods of cessation of employees, reasons for the same and will discuss procedures and legal framework for cessation. 


Personnel management and human resource management are interlinked with each other. Personnel management is a traditional approach of managing people in organization which mainly includes functions of labor relations, employee welfare and personnel administration. Whereas human resource is an extended and modernized form in which besides personnel management other functions like their recruitment, growth, motivation and retention are included (Durai, 2010).



The main differences between human resource management and personnel management are discussed below.

Ø  Function – personnel management is a routine function where things are pre decided and work is done on that. Whereas human resource management is a strategic function in which strategies are framed, updated and applied continuously depending on company’s requirement.

Ø  Activities – personnel management include routine activities like maintaining employee welfare, personnel administration and maintaining labor relations. Whereas HRM is concerned with development, motivation and retention of employees.

Ø  People – It is assumed that people are input to achieve required output in personnel management. Whereas in HRM, people are assumed to be a very important and valuable resource by management to achieve required output.

Ø  Job design – Division of labor is the basis on which job design is done in personnel management. Team work is the basis on which job design is done for HRM.

Ø  Employee training and development – Such opportunities are not provided much to employees in personnel management but it is provided more in HRM.

Ø  Decision making – Decision making is done as per rules and regulations of company in personnel management whereas in HRM it is done after considering employee participation, external environment and authority.

Ø  Focus – in personnel management, focus is on employee satisfaction and increased production whereas in HRM, focus is on employee participation, work culture and effectiveness.

Ø  Manager level- personnel management is about only personnel manager whereas HRM is about all top to bottom level of managers.


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