Topics: Human resource management, Human resources, Management Pages: 11 (3659 words) Published: January 11, 2015
Lectures setting assessment: David Hall/Dr. Rajendra Kumar

Table of Contents
I-Definition of People Management4
1.What is Personnel Management (PM)?4
2.What is Human Resource Management (HRM)4
3.The differences between PM and HRM7
IIStrategic Human Resource Management (SHRM)8
1What is Strategic Human Resource Management?8
2How does Human Resource’s function add incremental value to performance of Business as business transition from Personnel Management to SHRM?9 CONCLUSION16


Jeff Alef (2007) stated, “ Capital used to be a competitive advantages, but today, huge capital mobilization is easier than the past. Sometimes, technology creates business competitive advantages, even this is easy to target currently with globalization trend. For example: in financial industry and services, when product life circle is long, you can not keep long term advantages based on kind of products or services which you provides. The best advantage is human.” Therefore, there is no doubt that fast changing technology and globalization increases competition in business environment. That enforces companies have to effort to make persistent competitive advantages based on core value, vision and mission for long term; not just competition in short term. Human resource is a vital part of business’ success. An organization even it has modern technology systems, quality service, solid and nice building and place but lack of human resources, it has to face a lot of challenges, be difficult to maintain and creates competitive advantages in the market. This points out that “ Human is people who creates differences between businesses”. However, if manager just focuses on developing Human resources without connecting to value, vision, compulsory, objectives, strategies of operations, all of efforts aimed developing will be wasted. As a result, to achieve success in people management, organizations have to find out the best people management solution - one of heart of the business. To more understand about people management and how important and value is it, the following of this essay bring a deep research and detail about definition, history, transition of people management and how strategic human resource management add incremental value to organization performance. LITERATURE REVIEWS

I-Definition of People Management
1. What is Personnel Management (PM)?

First of things, it should understand meaning of each word in Personnel management in organization. Personnel means organization’s employed person so personnel management is managing company’s employed people. In word of Flippo (1985), “Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals.” Brech (2000), “Personnel Management is that part which is primarily concerned with human resource of organization.” Personnel management is a traditional way management. It manages people by utilizing and organizing regular, maintenance-oriented and administrative procedures. It is a main part of organization, which creates organization’s culture, or environment by promoting and helping all employees cooperate effective and trust among each other. Besides, it also takes responsibility to make sure all staff and organization meet government’s legal, policies and social responsibility. Consequently, the personnel management’s general purpose is organizing staff effectively and creating environment and conditions to help staff communicate and cooperate convenient and quickly. 2. What is Human Resource Management (HRM)?

Early 1950s in North America, Peter Drucker and others started use words human resource management. They used just simple thinking that there is no meaning different to personnel management. Until by 1980s, HRM was thought about a...

References: Becker, B. E., and Huselid, M. A. “High performance work systems and firm performance: A synthesis of research and managerial implications.” Research In Personnel and Human Resources Management. 1998, 16, 53-101.
Beer, M., Spector, B., Lawrence, P.R., Quinn Mills, D. and Walton, R.E. (1984) Managing Human Assets. New York, NY: The Free Press
Brech (2000)
Guest, D.E. (1987) ‘Human resource management and industrial relations’, Journal of Management Studies 24(5), pp. 503–521.
Guest, D.E. (1997) ‘Human resource management and performance: a review and research agenda’, International Journal of Human Resource Management 8(3), June, pp. 263–276.
Hunt, J. (1999) ‘The shifting focus of the personnel function’, Personal Management 16(2), February, pp. 14–19.
Flippo, E. B. (1985). Principle of Personnel Management. New York: McGraw-Hill
Jackson, S
Lawler, E. E., Mohrman, S. A. Creating a Strategic Human Resources Organization: An Assessment of Trends and New Directions. Palo Alto, CA. Stanford University Press, 2003.
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Wright, P., Dyer, L., and Takla, M. State-of-the-Art and Practice Council Report. New York: Human Resource Planning Society, 1999.
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