Human resources are the main drivers for today’s organization in managing employees as strategic plan as company’s objective (Haslinda 2009). Variety notion related with theory, perceptivity and understanding of human resource evolution from Industrial Relations (IR) tradition to Human Resource Management (HRM) has transpired to the present day. IR was considerably have two main division: labor management and mutual negotiation including the method of employment management (Kaufman 2001). The terminology from personnel management, or personnel administration and labor relations has been used by most writers represent IR or employment relations era. The evolving terms of both subject fields has initially started in 19th century by the emergence of HRM terminology as modern or an updated version of personnel management (PM) which still linked within the same environment (Ackroyd et al. 2005). Furthermore, HRM content more about employment relations management and contract determination (Ackroyd et al. 2005).
There were many critical views or artificial debate concerns of the role of HRM and its predecessor, PM (Storey 2001). One of article, Legge (1989) was try to prescribe the distinction between them based on its content. Therefore, the point of departure of this report is to provide some overview to specified substantial outline between IR (in case of PM) and HRM, particularly their distinction and commonality.
PM and HRM Overview
As the name suggests, the scope of work of PM has focuses on the employers objectives, training or efforts to strengthen effective working method and emphasizes individuals workers, employers-employee relations (Kaufman 2001). In corporate environment, it conceived as policy of management in organizational performance (Oxford 2007). The conceptualization of the term PM is difference from HRM as recruitment process, performance indicator, payroll system, training and development (Legge 1989). Moreover, HRM can be defined as strategical process in coherent way within organization (Armstrong 2006) which carry on their manpower, commitment to perform as its function (Brewster 1995). As a subject field, HRM encompass PM on diversity aspect of human resource: staffing (workers and IR); shift management (compensation); administration purposes; performance (training and development) including outsource and subcontract network (Brewster 1995). Boxall (1992) defined the scope of work of HRM is more principal and strategic line of duty than IR in terms of PM.
Disparity of both subject area
Guest (1987) pointed out on several difference among both as particular form. First, regarding to time, planning view and contract, PM generally conducted for short-time program in specific case, on the basis of compliance, whereas HRM for long-term period, responsiveness, and strategic management. Within labor relationship, PM can be seen as customary notion (pluralist), simultaneous bargaining, yet low commitment or trust,...