Difference between Personnel Management and HRM

Difference between Personnel Management and HRM

In the realm of organizational management, it is important to discern the difference between Personnel Management and HRM.

Definition of Personnel Management

Personnel management can be defined as a set of programs and actions which are aimed at the achievement of organizational as well as personal goals. It deals with the people and their interpersonal relationships in the organization.

According to E.F.L. Breach, “Personnel management is that part of the management process which is primarily concerned with the human constituents of an organization”.

According to Richard Calhoon, “Personnel management involves the task of handling the human problems of an organization and is devoted to acquiring, developing, utilizing, and maintaining an efficient workforce”.

According to R.G. Gokhle, “Personnel management is the specialized intelligent handling of the human factor by a separate department that could devote its full time for research along the line of improvement in industrial relations”.

Definition of Human Resource Management

Human resource management is the planning, organising, coordinating, directing, and controlling of maintenance, procurement, compensation, integration, development, and separation of human resources to the end that individual, organizational, and social objectives are achieved”.

Difference between Personnel Management and HRM

According to some experts, human resource management and personnel management are the same and hence two terms can be used interchangeably. If a person gets a job in human resources, he may be required to perform duties similar to that of the personnel manager. In some organizations, a distinction is made, but there is a very nominal difference.

Basis of Difference between HRM and Personnel Management

1) Scope

HRM: It is broader in scope and also incorporates the tasks of personnel management.

Personnel Management: It has a limited scope and is considered to be a part of HRM.

2) Respect for Employees’ development of an organization

HRM: It views employees as an important asset for the development of an organization.

Personnel Management: It views employees as labour and utilizes them for the benefit of the organization.

3) Nature of Duties

HRM: More strategic in nature and is responsible for managing the workforce as one of the primary resources that contribute to the success of an organization.

Personnel Management: It includes administrative tasks that are both traditional and routine, dealing with payroll, complying with employment laws, and handling related tasks.

4) Organisation Function

HRM: It is taken as an integral part of the overall company function.

Personnel Management: It is an independent function of an organization.

5) Responsibility

HRM: The responsibility lies with all the organization’s managers and its objective is to develop managers from various departments who are trained to take care of personnel-related tasks.

Personnel Management: The sole responsibility lies only with the organization’s personnel department.

6) Key Motivators

HRM: It views the improved performance which results in acts as employee satisfaction. Thus, they emphasize ways to improve job performance through workgroups, effective strategies for meeting challenges, and job creation.

Personnel Management: lt views, employee satisfaction and acts as a motivator to improve job performance. The tools used to motivate employees are compensation, bonus, rewards, and simplifying work responsibilities.

7) Management Role

HRM: The management style is transformational in nature which consists of setting goals and incentives to take the organization and the employees to the next level of performance and success.

Personnel Management: The management style is transactional in nature and focuses on maintaining normal operations in an organization. The employees are motivated by exchanging rewards for performance.

 8) Rules

HRM: Adopts a can-do attitude and is not controlled by rules and procedures.

Personnel Management: A lot of importance is being given to devising and procedures. rules and procedures.

9) Guide to Management

HRM: The management takes decisions that are governed by business needs.

Personnel Management: The management takes decisions that are directed by the need to fulfil procedures.

10) Job Design

HRM: While designing jobs, emphasis is laid on teamwork and cooperation among the employees.

Personnel Management: Job design emphasizes the division of labour which leads to the specialization of tasks that each worker needs to do.

11) Training and Development

HRM: Training and development modules constantly encourage employees to acquire knowledge and innovate quickly. This helps the companies to survive in a fast-changing business environment and creates a learning organization.

Personnel Management: Training and development modules are difficult to access for all employees. Due to the limited access to courses the organization is not learning-oriented and may find it difficult to cope with dynamic changes.

12) Speed of Decision

HRM: Quick decisions are taken under HRM.

Personnel Management: Decision making is slow under personnel management.

13) Evolution

HRM: HRM is a recent concept that is the latest in the evolution of the subject.

Personnel Management: Personnel management existed before the concept of HRM evolved.

14) Behaviour Referent

HRM: HRM behaviour is concerned with the values and mission of the organization.

Personnel Management: The behaviour under personnel management is concerned with customs and practices.

15) Managerial Task vis a vis Labour

HRM: It has a nurturing approach towards labour.

Personnel Management: It aims to monitor the day-to-day activities of labour.

16) Key Relations

HRM: Manages the relationship with customers.

Personnel Management: Manages the relationship with labour.

17) Communication

HRM: Maintains direct communication.

Personnel Management: Maintains indirect communication.

18) Management skills

HRM: The most important management skill under HRM is facilitation.

Personnel Management: The most important management skill under personnel management is negotiation.

19) Pay

HRM: They receive payment according to their performance.

Personnel Management: They receive payment according to fixed grades.

20) Labour Management

HRM: The management enters into individual contracts to manage labour.

Personnel Management: The management enters into collective bargaining contracts to manage labour.

21) Job Categories and Grades

HRM: There are fewer job categories and grades.

Personnel Management: There are many job categories and grades.

22) Conflict Handling

HRM: Conflicts within the organization are managed by making long-term changes in the internal climate and culture.

Personnel Management: Conflicts within the organization are managed by making short-term agreements to restore peace.

23) Focus of Attention on Interventions

HRM: Interventions taken by the management are related to overall cultural, structural and personnel strategies.

Personnel Management: Interventions taken by the management are related to personnel procedures.

24) Shared Interests

HRM: It focuses on the mutual interests of the organization as well as the employees.

Personnel Management: It focuses on the interests of the organization.

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