Table of Contents Introduction 2 LO1-1.1: Difference between Personnel Management and Human Resource Management: 3 LO1-1.2: The function of Human Resource Management in contribution to Organisational Purposes: 3

Introduction

An organization is driven by human capital and the quality and effectiveness of the organisation is determined by the quality of the people that are employed. the resources of men money material and machine are collected and coordinated through people. Without people organisation cannot exist. Success for most organisations depends on finding the employees with the skills to successfully perform the tasks required to attain the company’s strategic goals. Management decisions and processes for dealing with employees are critical to ensure that the organisation gets and keeps the right staff.

Personnel management refers to the managerial function of estimating and classifying of human resources requirements for meeting organisational goals. It involves strategies that ensure sufficient staff, a right combination of talent and performance in jobs.

Human resource management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as human resources (HR).

A company’s human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees.
Human resources are the people who work for the organization; human resource management is really employee management with an emphasis on those employees as assets of the business. In this context, employees are sometimes referred to as human capital. As with other business assets, the goal is to make effective use of employees, reducing risk and maximizing return on investment (ROI).

Areas of HRM oversight include – among many others -- employee