Difference between personnel management and HRM.
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Personnel Management is a part of management that deals with the recruitment, hiring, staffing, development, and compensation of the workforce and their relation with the organization to achieve the organizational objectives. The primary functions of personnel management are divided into two categories:
In the last two decades, as the development of technology has taken place and the humans are replaced by machines. Similarly, this branch of management has also been superseded by Human Resource Management.
Human Resource Management is a specialized and organized branch of management which is concerned with the acquisition, maintenance, development, utilization, and coordination of people at work, in such a manner that they will give their best to the enterprise. It refers to a systematic function of planning for the human resource needs and demands, selection, training, compensation, and performance appraisal, to meet those requirements.
Functions of HRM: Human Resource Management is a continuous process of ensuring the availability of an eligible and willing workforce i.e. putting the right man at the right job. In a nutshell, it is an art of utilizing the human resources of an organization, in the most efficient and effective way. HRM covers a broad spectrum of activities which includes:
| Personnel Management | BASIS | Human Resource Management |
| Personnel Management is The aspect of management that concerned with the workforce and their relationship with the entity. | Meaning | HRM(Human Resource Management) is The branch of management that focuses on the most effective and efficient use of the manpower to achieve the organizational goals. |
| It is Traditional Concept | Traditional/Modern Concept | It is a Modern Concept |
| Consider only 8 hours | Consideration of hours | Consider 24 hours |
| Consider workforce as Machines or Tools | Consideration of workforce | Consider workforce as resources |
| More administrative in nature | Nature | Strategic in Nature |
| Immediate concerns are taken care of | Perspective | Long term Consideration |
| Job Evaluation | Basis of Pay | Performance Evaluation |
| Management Role is Transactional | Management Role | Management Role is Transformational |
| Way of Communication is Indirect | Way of Communication | Way of Communication is Direct |
| Collective Bargaining Contracts | Labor Management | Individual Contracts |
| Type of Initiatives is Piecemeal. | Type of Initiatives | Type of Initiatives is Integrated. |
| Management Actions are taken as per Procedure. | Management Actions | Management Actions are taken as per Business needs. |
| The decision-Making process is Slow. | Decision Making | The decision-Making process is Fast. |
| Job Designed usually made based on the Division of Labor. | Job Design | Job Designed usually made based on Groups/Teams. |
| Primarily on mundane activities like employee hiring, remunerating, training, and harmony. | Focus | Treat manpower of the organization as valued assets, to be valued, used, and preserved. |
| Mediators: management and employees. | ROI | Secure ROI and growth. |
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