Difference Between HRM and Personnel Management

Edited by Diffzy | Updated on: October 06, 2022

       

Difference Between HRM and Personnel Management Difference Between HRM and Personnel Management

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Introduction

In the discipline of information technology, personnel management and human resource management are two distinct fields. Both have unique characteristics and professional capabilities. These two managerial wings are in charge of the difficult task of keeping a relationship with the entity. Human resource management entails collaboration between employees and employers.

Personnel Management and Human Resource Management differ primarily in their scope and orientation. Personnel management has a limited scope and an inverted perspective, in which workers are considered a tool. The worker's behavior can be managed according to the organization's key competencies, and they are replaced as they become worn out. Human resource management, on the other hand, has a broader reach and views personnel as an asset to the company. It encourages mutuality in terms of goals, responsibilities, and rewards, among other things, which will aid in improving economic performance and human resource development.

When Human Resource Management (HRM) was not widely used in the early centuries, Personnel Management was in charge of employee staffing and payroll (PM). Traditional Personnel Management is how it's known. Human Resource Management has grown in popularity as a complement to traditional personnel management. So, in this post, we'll explain the meaning of Personnel Management and Human Resource Management, as well as the contrasts between the two.

HRM vs. Personnel Management

The major distinction between personnel and human resource management is their different fields' breadth. Personnel management has a narrow scope, whereas human resource management has a much broader scope. Employees are viewed as a tool in personnel management. Human resource management views their people as valuable resources. Human resource management promotes the motility of goals and terms, while personal management takes an inverted strategy.

Employee recruiting, hiring, staffing, development, and compensation are all part of the personnel management process. Their primary goal is to preserve a positive relationship between the company and its employees. Operational and management duties are their key responsibilities. Humans have been mostly displaced by technology in recent years.

Operational and managerial functions are the two forms of personnel management. Human resource management is a well-structured industry. Some aspects of human resource management, such as usage, development, and coordination, are taken into account. These are the factors that contribute to the best human resource management enterprise. The systematic function of human resource management is referred to as HRM. Human resource management necessitates compensation, performance, and evaluation.

HRM arose from the need for a more comprehensive approach to personnel management. The goal was to fill in the holes that existed in the previous method. Human resource management is a basic need of every organization in today's highly competitive market since it focuses on enhancing employees' abilities and views them as the company's most valuable asset. Retaining the greatest people in your organization can be difficult in today's world, as companies are using all available tools to attract the best staff. As a result, HRM is critical since it considers the interests of employees and matches them with the organization's goals.

What is HRM?

Human resource management refers to the process of recruiting staff and hiring newcomers. In the organization, they are referred to as human resources (HR). The human resource team is constantly in charge of managing worker policies and the entity's relationships. The word "human resource" is first used in 1900. Simply said, it is used to identify those who work for the organization rather than for the organization.

Human resource management is the management of employees. Employees are viewed as assets in human resource management. They are the organization's human capital. Human resource management aims to increase employee productivity and encourage them to invest their earnings.

Human resources' main purpose is to manage employees so that they can accomplish tasks in the workplace. The human resources department is in charge of bringing in new employees to the company. They must examine the organization's abilities and requirements, as well as the company's objectives. Human resources are also in charge of the company's job market. They decide to hire the staff. They need to be aware of changes in the employment market and the hiring process. Human resource management refers to the process of recruiting staff and hiring newcomers. In the organization, they are also known as human resources.

The human resource team is constantly in charge of managing worker policies and the entity's relationships. The word "human resource" is first used in 1900. Simply said, it is used to identify those who work for the organization rather than for the organization. Human resource management is the management of employees. Employees are viewed as assets in human resource management. They are the organization's human capital. Human resource management aims to increase employee productivity and encourage them to invest their earnings. Human capital management is how modern human resources are defined (HCM). Many HR events or programs at mid-size companies adopt the name HCM.

Human resources' main purpose is to manage employees so that they can accomplish tasks in the workplace. The human resources department is in charge of bringing in new employees to the company. They must examine the organization's abilities and requirements, as well as the company's objectives. Human resources are also in charge of the company's job market. They decide to hire the staff. They need to be aware of changes in the employment market and the hiring process.

It entails guiding people toward reaching organizational goals through training, learning, and development. HR specialists make ensuring that the correct people are hired, that they are properly trained, and that they are fairly compensated. Their performance is also examined regularly.

Human Resource Management is a specialized and organized sector of management that deals with the acquisition, maintenance, development, usage, and coordination of people at work for them to provide their best to the company. To achieve those objectives, it refers to a systematic function of planning for human resource needs and demands, selection, training, remuneration, and performance review.

What is Personnel Management?

The ideal workforce satisfies personnel management. Personnel management is critical in the realm of management. Personnel management is concerned with the entity's connection inside the organization. Personnel management includes planning, coordinating, integrating, and maintaining people. Personnel management encompasses both individual and societal objectives. Human resource management is the most important aspect of people management. Personnel management now includes the functions of hiring, training, and remuneration. These are the primary responsibilities of people management. Personnel management is included under general management. Personnel management considers the contribution to the objective and the consistency of the workforce. The basic function of personnel management is to advise managers on issues and provide stress-free work solutions.

By creating schedules and strategies, personnel management aims to limit the amount of time spent on unproductive activities. They develop work strategies and problem-solving techniques to improve employee satisfaction. Personnel policies will assist employees in resolving personnel issues in the workplace.

Personnel management is a type of job that is based on a human-centered approach to providing answers. They aid in the development of workers' potential and the induction of inner abilities. They also use a variety of programs to motivate their employees.

Personnel management is a branch of management concerned with the recruiting, hiring, staffing, development, and remuneration of employees as well as their interactions with the business to fulfill organizational goals. Personnel management's key functions are grouped into two categories: Procurement, development, remuneration, job evaluation, employee welfare, utilization, maintenance, and collective bargaining are all examples of operational functions. Personnel Management performs the following managerial functions: planning, organizing, directing, motivating, controlling, and coordinating.

As technology has progressed over the previous two decades, humans have been increasingly displaced by machines. Similarly, Human Resource Management has supplanted this discipline of management.

Main Differences Between HRM and Personnel Management in Points

  • Human resource management specifies the achievement of an organizational entity, while personnel management defines the interaction between the entities.
  • Personnel management is the old method of approach, whereas human resource management is the modern method.
  • Employees in personnel management are viewed as machines, while employees in human resources are treated as assets.
  • Personnel management follows the routine function, while human resource management follows the strategic function.
  • In personnel management, payments are made based on job evaluations, while in human resource management, payments are made based on performance evaluations.
  • Personnel Management is the department of management that deals with the company's workers. Human Resource Management is a field of management that focuses on making the greatest possible use of an organization's people.
  • Personnel Management views employees as tools or machines, but Human Resource Management views them as a valuable resources.
  • Personnel Management has evolved into Human Resource Management.
  • In Personnel Management, decision-making is slow, while in Human Resource Management, it is quite quick.
  • In Personnel Management, initiatives are distributed piecemeal. Human Resource Management, on the other hand, has an integrated distribution of projects.
  • The division of work is the foundation of job design in Personnel Management, but in Human Resource Management, employees are organized into groups or teams to complete any activity.
  • Negotiations with the union leader are based on collective bargaining in PM. In HRM, on the other hand, there is no need for collective bargaining because each employee has an individual contract.
  • Pay in PM is determined on job evaluation. In contrast to HRM, where remuneration is based on performance evaluation.
  • Personnel management is generally concerned with routine tasks such as hiring, remunerating, training, and maintaining workplace harmony. Human resource management, on the other hand, focuses on considering personnel as valuable assets that must be appreciated, used, and conserved.
  • Personnel Management is the department of management that deals with the company's workers. Human Resource Management is a field of management that focuses on making the greatest possible use of an organization's people.
  • Personnel Management views employees as tools or machines, but Human Resource Management views them as a valuable resources.
  • Personnel Management has evolved into Human Resource Management.
  • In Personnel Management, decision-making is slow, while in Human Resource Management, it is quite quick.
  • In Personnel Management, initiatives are distributed piecemeal. Human Resource Management, on the other hand, has an integrated distribution of projects.
  • In Personnel Management, initiatives are distributed piecemeal. Human Resource Management, on the other hand, has an integrated distribution of projects.
  • The division of work is the foundation of job design in Personnel Management, but in Human Resource Management, employees are organized into groups or teams to complete any activity.
  • Negotiations with the union leader are based on collective bargaining in PM. In HRM, on the other hand, there is no need for collective bargaining because each employee has an individual contract.
  • Pay in PM is determined on job evaluation. In contrast to HRM, where remuneration is based on performance evaluation.
  • Personnel management is generally concerned with routine tasks such as hiring, remunerating, training, and maintaining workplace harmony. Human resource management, on the other hand, focuses on considering personnel as valuable assets that must be appreciated, used, and conserved.

Conclusion

Personnel Management has been extended by Human Resource Management, which has eliminated the weaknesses of Personnel Management. It is critical in this period of fierce competition when every firm must prioritize its workforce and needs. Nowadays, it is extremely difficult to keep good employees for an extended period since they are completely aware of their rights, and no firm can treat them like machines. As a result, HRM has evolved to bring the organization and its people together to achieve a single purpose. Based on their processes, personnel management and human resource management are two distinct professions. The personnel manager serves as a providence, thinker, guide, speaker, and therapist in personnel management. Human resources serve as a recruiter, coordinator, specialist, manager, and business partner in human resource management. Personnel management focuses on management-based initiatives, whereas human resource management focuses on business needs. Human resource management has direct management, whereas personnel management has indirect communication. The basic purpose of both management teams is to keep the entity's connection with the organization intact. Personnel management and human resource management are both important aspects of management.

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"Difference Between HRM and Personnel Management." Diffzy.com, 2022. Fri. 09 Dec. 2022. <https://www.diffzy.com/article/difference-between-hrm-and-personnel-management-421>.



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