Human resource management understands the value of an employee who is recognised for their performance, whether that be in the form of a pay raise or even an impressive benefits package. Thorough employee management is essential for any company. Human resource management is far more proactive than personnel management. Filed under: Career advice Talent management. Career advice Future of work Talent management.
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Understanding personnel management and human resource management Human resource management and personnel management may share similar responsibilities, but the ways in which they operate differ. Click here to view sources. Retrieved from Business Dictionary. Accessed 20 May 2 Leonard, K. Oct, Retrieved from Chron. Jan, Retrieved from Digital HR Tech. Nov, Retrieved from Legit. Jul, Retrieved from Deloitte. Retrieved from Ionos. In this respect, personnel management encompasses the range of activities that are to do with managing the workforce rather than resources.
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. 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. 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.
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. 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.
These experts say that the two terms — HRM and Personnel management — have no difference in their meaning, and can be used interchangeably. Well, there are many experts who have come up with many differences between the two. Personnel management is regarded to be more administrative in nature.
Personnel management basically deals with the employees, their payroll and employment laws. Human Resources Management is spoken about in a much broader sense than Personnel Management.
It has been said that HRM incorporates and develops personnel management skills. It is Human Resources Management that develops a team of employees for an organization. Personnel management can be considered as reactive, in the sense that it provides concerns and demands as they are presented. Whereas personnel management is independent from an organization, the Human Resources Management is an integral part of a company or an organization.
One can also come across differences in motivational aspects. While Personnel management tends to motivate the employees with compensations, rewards and bonuses, Human Resources Management tends to provide motivation through human resources, effective strategies for facing challenges, work groups, and job creativity.
Personnel management focuses on administrating people. On the contrary, the prime focus of Human Resources Development is to build a dynamic culture. Personnel management deals with employees, their payroll and employment laws. HRM basically deals with developing personnel management skills. While Personnel management is considered to be reactive, Human Resources Management is stated to be proactive.
There is no any watertight difference between human resource management and personnel management. However, there are some differences in the following matters. Personnel management is a traditional approach of managing people in the organization.
Human resource management is a modern approach of managing people and their strengths in the organization. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output.
Under personnel management, personnel function is undertaken for employee's satisfaction. Under human resource management, administrative function is undertaken for goal achievement. Under personnel management, job design is done on the basis of division of labor. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.
In personnel management, decisions are made by the top management as per the rules and regulation of the organization.
In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc. Personnel management focuses on increased production and satisfied employees.
Human resource management focuses on effectiveness, culture, productivity and employee's participation. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom.
Personnel management is a routine function. Human resource management is a strategic function. You may be scratching your head at this point and asking yourself just what the heck the difference is between personnel management and human resource management? Both seem to be involved in the exact activities, although some of the terminology might be a little bit different.
You may be surprised to find out that some commentators and critics ask the same question.
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