Difference between Personnel Management & HRM
Personnel Management
Traditionally the term personnel management was used to
refer to the set of activities concerning the workforce which included
staffing, payroll, contractual obligations and other administrative tasks. In
this respect, personnel management encompasses the range of activities that are
to do with managing the workforce rather than resources.
Personnel Management is more administrative in nature and
the Personnel Manager’s main job is to ensure that the needs of the workforce
as they pertain to their immediate concerns are taken care of. Further,
personnel managers typically played the role of mediators between the
management and the employees and hence there was always the feeling that
personnel management was not in tune with the objectives of the management.
Human Resource Management
With the advent of resource centric organizations in recent
decades, it has become imperative to put “people first” as well as secure
management objectives of maximizing the ROI (Return on Investment) on the
resources. This has led to the development of the modern HRM function which is
primarily concerned with ensuring the fulfillment of management objectives and
at the same time ensuring that the needs of the resources are taken care of. In
this way, HRM differs from personnel management not only in its broader scope
but also in the way in which its mission is defined.
HRM goes beyond the administrative tasks of personnel
management and encompasses a broad vision of how management would like the
resources to contribute to the success of the organization.
Personnel Management and HRM: A Paradigm Shift ?
Cynics might point to the fact that whatever term we use, it
is finally “about managing people”. The answer to this would be that the way in
which people are managed says a lot about the approach that the firm is taking.
For instance, traditional manufacturing units had personnel managers whereas
the services firms have HR managers.
While it is tempting to view Personnel Management as archaic
and HRM as modern, we have to recognize the fact that each serves or served the
purpose for which they were instituted. Personnel Management was effective in
the “smokestack” era and HRM is effective in the 21st century and this
definitely reflects a paradigm shift in the practice of managing people.
Conclusion
It is clear from the above paragraphs that HRM denotes a
shift in focus and strategy and is in tune with the needs of the modern
organization. HRM concentrates on the planning, monitoring and control aspects
of resources whereas Personnel Management was largely about mediating between
the management and employees.
Many experts view Personnel Management as being workforce
centered whereas HRM is resource centered. In conclusion, the differences
between these two terms have to be viewed through the prism of people
management through the times and in context of the industry that is being
studied.
References
https://study.com/academy/lesson/human-resource-management-vs-personnel-management.html
References
https://study.com/academy/lesson/human-resource-management-vs-personnel-management.html
https://www.managementstudyguide.com/personnel-management.html
https://keydifferences.com/difference-between-personnel-management-and-human-resource-management.html
https://keydifferences.com/difference-between-personnel-management-and-human-resource-management.html
It lies in their scope and orientation. PM limited and HRM has a wider scope.
ReplyDeleteYes Mr. Malanga.. Agree with you. But in this modern world HRM is a system that very artistically manages people working in a company so that they perform well and give their best performance to the organization in order to achieve organizational goals set by the organization.
DeleteHuman Resource Management has come up with an extension over Personnel Management, which eradicated the shortcomings of the Personnel Management. It is quite essential in this era of intense competition where every organization have to put their manpower and their needs first.
ReplyDeleteYes Mr. Ravi. Human resource management is wider subject than personal management. But there are many similarities between these two. 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.
Delete1. Both models focus on the significance of integrating personnel/HRM techniques with organizational objectives.
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.
6. The same type of selection, performance management, competence analysis, training management development and reward management methods are utilized in both HRM and Personnel Management.
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.
Dear Ayesha
ReplyDeletePersonal Management is having focus over the business links that are broader and it is believed that it concentrates more on the activities of the personnel professionals and also on the operational techniques within the organisation. This is interpreted differently in HRM is considered to concentrate more on the business linkages and also in comparison to personnel management it is usually called as an established and good people management practice
Agree with you Mr.Ruwan. The normative perspective of human resource management bases itself on the concepts of “hard HRM"(Personnel Management) and “soft HRM," on which the foundations of human resource management rest.
DeleteThe concept of “Hard HRM" is the basis for the traditional approach toward human resource management. This concept traces its origins to the Harvard model that links workforce management to organisational strategy. Hard HRM stresses the linkage of functional areas such as manpower planning, job analysis, recruitment, compensation and benefits, performance evaluations, contract negotiations, and labour legislations to corporate strategy. This enforces organisation interests over the employees’ conflicting ambitions and interests. It views the workforce as passive resources that the organisation can use and dispose at will.
Soft HRM is synonymous with the Michigan model of human resources and is the bedrock of the modern approach to strategic human resource management. This model considers human capital as “assets" rather than “resources" and lays stress on organisational development, conflict management, leadership development, organisational culture, and relationship building as a means of increasing trust and ensuring performance through collaboration. This approach works under the assumption that what is good for the organisation is also good for the employee.