Difference between HRM and Personnel management
Introduction:
Human resources management (HRM) and personnel management are two management approaches that focus on the administration of human resources in an organisation. These two fields share similarities and differences, and understanding them is important for any business aiming to manage its workforce efficiently.
Personnel Management
Personnel management is an administrative function that focuses on the management of the employee-employer relationship. The aim of personnel management is to ensure that employees are performing their jobs effectively and efficiently. Personnel management focuses on the hiring, compensation, training and development, and retention of employees.
Personnel management is based on the traditional concept of management that views employees as a resource to be managed, controlled and directed. It is primarily concerned with the administration of employee benefits and the enforcement of organisational policies and procedures.
Human Resource Management
Human Resource Management is a strategic approach that focuses on the management of the organisation’s most valuable resources – its people. HRM is an interdisciplinary approach that combines theory and practice from several disciplines, including psychology, sociology, economics, and management.
HRM operates through various functional areas such as recruitment and selection, performance management, learning and development, reward and recognition, and employee relations. The aim of HRM is to create a high-performance work environment that promotes employee engagement, productivity, and satisfaction.
Unlike personnel management, HRM is concerned with managing the strategic aspect of the workforce. It is focused on creating an organisational culture that supports the achievement of business objectives while providing a positive work environment for employees.
The Key Differences between HRM and Personnel Management
The difference between HRM and personnel management is significant. Personnel management is more administrative and focuses on the transactional aspects of managing the workforce. HRM, on the other hand, is more strategic and focuses on creating a positive workplace culture that promotes employee engagement and productivity.
Here are some key differences:
1. Focus: Personnel management is concerned with the administration of employees within an organisation, while HRM is focused on strategic planning and developing a productive work environment.
2. Scope: Personnel management is primarily concerned with hiring, compensation, and benefits, while HRM covers recruitment and selection, performance management, learning and development, and employee relations.
3. Decision-making: Personnel management decentralises decision-making, while HRM is centralised, emphasising strategic planning.
4. Employee Relationship: Personnel management sees employees as a resource to be controlled and directed; HRM views them as a valuable asset to the organisation and works towards maximising their potential while creating a positive work environment.
Conclusion:
In conclusion, both personnel management and HRM have similarities and differences. Personnel management is an administrative function that focuses on the administration of employees, while HRM takes a broader and more strategic approach to managing human resources. While personnel management is transactional, HRM is transformational. As such, the transition from personnel management to HRM can be significant for an organisation seeking to maximise its human resources potential.
Table difference between hrm and personnel management
| HRM | Personnel Management |
|---|---|
| Focuses on the development of employees and their skills to meet the needs of the organization. | Focuses on recruitment, hiring, and maintaining personnel records. |
| Emphasizes communication and collaboration between employees and management. | Emphasizes hierarchal structure and top-down management. |
| Promotes employee engagement and satisfaction through benefits and incentive programs. | Fosters compliance with regulations and company policies. |
| Views employees as assets and a source of competitive advantage. | Views employees as a necessary expense and liability. |
| Encourages continuous learning and development for employees. | Focuses on compliance training and mandatory requirements. |