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Key Differences

Know the Differences & Comparisons

Difference Between Personnel Management and Human Resource Management

Last updated on February 12, 2022 by Surbhi S

personnel management vs human resource managementThe main difference between Personnel Management and Human Resource Management lies in their scope and orientation. While the scope of personnel management is limited and has an inverted approach, wherein workers are viewed as tool. Here the behavior of the worker can be manipulated as per the core competencies of the organization and are replaced when they are worn-out.

On the other hand, human resource management has a wider scope and considers employees as the asset to the organization. It promotes mutuality in terms of goals, responsibility, reward etc. that will help in enhancing the economic performance and high level of human resource development.

In early centuries, when Human Resource Management (HRM) was not prevalent, then the staffing and payroll of the employees were taken care of, by the Personnel Management (PM). It is popularly known as Traditional Personnel Management. Human Resource Management have emerged as an extension over the Traditional Personnel Management. So, in this article, we are going to throw light on the meaning and differences between Personnel Management and Human Resource Management.

Content: Personnel Management Vs Human Resource Management

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Conclusion

Comparison Chart

Basis for ComparisonPersonnel ManagementHuman Resource Management
MeaningThe aspect of management that is concerned with the work force and their relationship with the entity is known as Personnel Management.The branch of management that focuses on the most effective use of the manpower of an entity, to achieve the organizational goals is known as Human Resource Management.
ApproachTraditionalModern
Treatment of manpowerMachines or ToolsAsset
Type of functionRoutine functionStrategic function
Basis of PayJob EvaluationPerformance Evaluation
Management RoleTransactionalTransformational
CommunicationIndirectDirect
Labor ManagementCollective Bargaining ContractsIndividual Contracts
InitiativesPiecemealIntegrated
Management ActionsProcedureBusiness needs
Decision MakingSlowFast
Job DesignDivision of LaborGroups/Teams
FocusPrimarily on mundane activities like employee hiring, remunerating, training, and harmony.Treat manpower of the organization as valued assets, to be valued, used and preserved.

Definition of Personnel Management

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 the personnel management are divided  into two categories:

  • Operative Functions: The activities that are concerned with procurement, development, compensation, job evaluation, employee welfare, utilization, maintenance and collective bargaining.
  • Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are the basic managerial activities performed by Personnel Management.

From 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.

Definition of Human Resource Management

Human Resource Management is that 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.

HRM Functions

Functions of HRM

Human Resource Management is a continuous process of ensuring the availability of 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:

  • Employment
  • Recruitment and Selection
  • Training and Development
  • Employee Services
  • Salary and Wages
  • Industrial Relations
  • Health and safety
  • Education
  • Working conditions
  • Appraisal and Assessment

Video: Human Resource Management

Key Differences Between Personnel Management and Human Resource Management

The following are the major differences between Personnel Management and Human Resource Management:

  1. The part of management that deals with the workforce within the enterprise is known as Personnel Management. The branch of management, which focuses on the best possible use of the enterprise’s manpower is known as Human Resource Management.
  2. Personnel Management treats workers as tools or machines whereas Human Resource Management treats it as an important asset of the organization.
  3. Human Resource Management is the advanced version of Personnel Management.
  4. Decision Making is slow in Personnel Management, but the same is comparatively fast in Human Resource Management.
  5. In Personnel Management there is a piecemeal distribution of initiatives. However, integrated distribution of initiatives is there in Human Resource Management.
  6. In Personnel Management, the basis of job design is the division of work while, in the case of Human Resource Management, employees are divided into groups or teams for performing any task.
  7. In PM, the negotiations are based on collective bargaining with the union leader. Conversely, in HRM, there is no need for collective bargaining as individual contracts exist with each employee.
  8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is performance evaluation.
  9. Personnel management primarily focuses on ordinary activities, such as employee hiring, remunerating, training, and harmony. On the contrary, human resource management focuses on treating employees as valued assets, which are to be valued, used and preserved.

Conclusion

Human 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.

Nowadays, it is very challenging to retain and maintain good employees for a long time as they are fully aware of their rights and any organization cannot treat them like machines. So, HRM has been evolved to unite the organization with their employees for the attainment of a common goal.

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Comments

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    • Surbhi S says

      May 25, 2017 at 2:09 pm

      Thanks to all the readers for constantly appreciating the articles, we are really glad to know that it helped you in some way. Keep sharing.. 🙂

      Reply
  7. Suma says

    January 21, 2018 at 4:20 pm

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    Reply
  8. Martin Kweitsu says

    February 21, 2018 at 4:05 am

    I’m an HRM level 4 student and very Happy to come across this site. Very useful. It has helped me to understand the difference between HRM and PM. Thank you Mam.

    Reply
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    April 15, 2018 at 5:30 pm

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    July 16, 2018 at 12:13 pm

    So useful to me. Thanks

    Reply
  12. Katusiime Edith says

    July 26, 2018 at 2:49 pm

    Thanks for such educative information on HRM and PM.
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    Once again thanks.

    Reply
  13. Henry Drewery says

    September 14, 2018 at 1:11 am

    Useful. Resourceful. Educative

    Reply
  14. Opoku Morgan Isaac says

    September 17, 2018 at 3:01 am

    Thanks for helping me know the distinction between the two… It is very useful and educative… Thank you….

    Reply
  15. Morrison says

    October 3, 2018 at 11:48 am

    I have been able to do my assignment without any misunderstanding.. thank you for this article.

    Reply
  16. ADAMS BANGURA says

    December 13, 2018 at 7:31 pm

    This article helps me out to complete my assignment. Thanks a lot

    Reply
  17. Abubakar Mohammed says

    December 31, 2018 at 4:38 pm

    This article has helped me to overcome my difficulty with the difference between HRM and personnel management. Thanks so much

    Reply
  18. angella mukoki says

    April 13, 2019 at 1:40 pm

    thank you for the well illustrated differences helped for my assignment.

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  19. chad says

    April 16, 2019 at 6:18 pm

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    Reply
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    May 30, 2019 at 4:55 pm

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    July 30, 2019 at 4:05 pm

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  22. Charmaine says

    September 3, 2019 at 7:11 pm

    This information is very helpful however can we please get the names of the authors for the purpose of referencing.

    Reply
    • Surbhi S says

      September 4, 2019 at 9:40 am

      The author’s name is Surbhi S.

      Reply
  23. Aabad says

    September 30, 2019 at 8:44 pm

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    October 4, 2019 at 9:43 am

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  25. ANANDAKUMAR says

    January 27, 2020 at 7:52 pm

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  26. Jo Narh says

    February 25, 2020 at 8:25 am

    Was impressed to chance on the educative and informative research as I read and added to my assignment. Thank you

    Reply
  27. DR. ROSEMARIE S. GUIRRE says

    April 12, 2020 at 4:47 pm

    very informative and detailed, it really help me to understand the difference between PM and HRM. Thank you so much to the author Surbhi S.

    Reply
  28. Mr. Sergeon says

    February 20, 2021 at 2:39 pm

    Very informative, really helpful to me as a trainer

    Reply
  29. Agnes Kabanda Kyambadde says

    February 28, 2021 at 7:47 pm

    Human resource management moves hand in hand with Personnel management. It has been so informative, i always thought that one meant the other.

    Reply
  30. Anastasia says

    March 3, 2021 at 4:15 pm

    It is a good read.

    Reply
  31. DIALLO Lanceny says

    March 10, 2021 at 4:40 pm

    I find it very interesting. The differences were very clear

    Reply
  32. QAISER says

    September 22, 2021 at 1:04 pm

    Valuable data

    Reply
  33. SILAS G ILIYA says

    October 16, 2021 at 7:46 pm

    Thanks for enlightenment on the distinction between Personnel Management and Human Resource Management. Now I can do my assignment with ease.

    Reply
  34. Grace Nyarango says

    October 17, 2021 at 1:39 pm

    I find this very useful. It was very interesting to read

    Reply
  35. Arun Chakravarty says

    December 2, 2021 at 2:13 pm

    I would like to formally and sincerely express my gratitude for the amazing work you accomplished in this new article. My best wishes

    Reply
  36. AKANDE OLANREWAJU RAPH says

    April 27, 2022 at 2:47 pm

    Very interesting, encouraging and educative

    Reply
  37. CHARLES MUSONDA says

    October 11, 2022 at 12:08 am

    VERY EDUCATING

    Reply
  38. Vikas says

    October 13, 2022 at 3:55 am

    Very Short and Clear Explanation. Keep Uploading quality articles.

    Reply

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