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There are 2 approaches in employee management. They are the Human Resource Management
(HRM) and Personnel Management. Despite the fact that both these approaches seem different,
they do have some similarities also.
2. Both models vest Personnel/ HRM strongly in line management. The personnel function
provides the needed advice and support services to enable managers to handle their
responsibilities.
3. Both emphasise the significance of individuals in fully developing their competencies for their
personal satisfaction to make their best contribution to organisational success.
4. Both models recognize pacing the perfect individuals into the right jobs as a critical way of
integrating personnel/HRM practice with organisational goals.
5. Personnel management strategies, like HRM strategies, flow from the business strategy.
7. Both human resource management and personnel management typically use payroll software
packages and monitor employees’ time worked.
8. Both approaches are meant to resolve employee’s problems. Whenever a staff member has a
problem which requires attention, the HRM/Personnel Management are there to interfere and
solve the problem.
Human Resource Management is defined as an administrative activity that relates with human
resources planning, recruitment, selection, orientation, training, appraisal, motivation, providing
benefits and incentives, etc. Human Resource Management aims at developing people through
work. Although so, there have been many attempts to define what exactly Human Resource
Case application
Short term and long term planning in the UK construction
Between 1992 and 2007, house prices on England rose by a staggering 250 percent. The average
age of a first time buyer (without family or state assistance) was now 37 years of age. Four out of
ten Britons between the ages of 18 and 30 said they would have delayed having children until
after they brought their first property. In 2010 it was reported that UK construction industry was
experiencing its worst slump in 30 years. About 118,000 homes were built in England in 2009,
down from 175,000 in 2007. It was less than half of the 240,000 needed annually to meet the
government’s goal to build 3 million homes from mid-2007 to 2020. The lack of new properties
is affecting both private buyers and those seeking state housing. Nearly 5 million people are on
waiting lists for government-subsidized housing and first-time home buyers are struggling to
enter the market because of prohibitively high prices and more limitations on mortgages.
What is the cause of the housing slump? The global recession certainly played a major part as
construction projects were abandoned resulting in a lower number of new homes. Poor planning
perhaps contributed to the problem as well. The amount of land approved for development has
been decreasing steadily over the last 10 years. Moreover, there was not enough land available to
meet the short-term and long-term demand, according to the , the industry’s main lobby group.
Consequently, citigroup has predicted a possible shortage of 1.2 million homes by 2016. Peter
Redfern, chief executive officer of Taylor Wimpey Plc, the country’s second-largest home
builder, feels that with a scarcity of readily available land a growing population, a radical change
is needed to enable planning to be granted on more site
The previous Labour government set its home building target following a 2004 report that
concluded there was a shortfall of about 450,000 homes (later the decline in building during the
recession had pushed that figure closer to 1 million). Regional governing bodies set their own
housing targets. Local councils that failed to meet both of these goals would potentially lose their
state funding. The government also planned to provide financial incentives to local councils to
encourage them to grant planning permission.
Former Labour Housing Minister John Healey believes that central planning is necessary for
coordinating infra-structure work that helps promote investment, boost economic growth and
deliver homes. From another perspective, the Home Builder Federation argues that the
government needs to reduce the cost, complexity, and uncertainty of regulation that is preventing
the building of more homes. At the same time, the conservations, the opposition party at the
time, argued that more planning authority should be given to local councils. Bearing all this in
mind, market fragility and supply uncertainty in the UK sector is still making planning a
complex task for any government.
Discussion Question (10%)
1) Why have plans failed to achieve the targets in the UK housing industry?
2) What short-term and long-term plan does the UK construction sector need?
3) What is the rationale to build more homes as disputed by Home builders Federation?
4) What “carrot and stick” approach do you observe to be provided for local councils?
Answer
1) Because of:
Global recession
Poor planning
Decreasing of land approved for development
There was not enough land available
2) Short term plan: Building 240,000 homes annually
Long term plan: Building 3million homes from mid2007-2020
3) The rational to build more homes disputed by home builder Federation are:
High cost
Complexity and
Uncertainty of regulation that is presenting the building of more homes