Difference between Personnel Management and Human Resource Management

 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” (Surbhi, 2022).

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, worker welfare, utilization, maintenance and collective bargaining.

Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are the simple managerial activities performed by Personnel Management.

From the most recent two decades, as the development of technology has taken place and the humans are replaced by machines. Similarly, this branch of management has been superseded by Human Resource Management.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” (Surbhi, 2022).

According to Sampras, (2019). Human Resource Management is that specialized and organized branch of management which is concerned with the acquisition, maintenance, development, utilization and coordination of persons at work, in such a manner that they can 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 come across those requirements.

Difference between Personnel Management and Human Resource Management (Surbhi, 2022).

The significant 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 employees are viewed as tool. Here the behavior of the worker will be manipulated as per the core competencies of the organization and are replaced when they are worn-out.

Instead of 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 can 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 workers were taken care of, by the Personnel Management (PM). It is popularly aware as Traditional Personnel Management. Human Resource Management have arisen as an extension over the Traditional Personnel Management. Hence, in this article, we are going to throw light on the meaning and differences between Personnel Management and Human Resource Management.

Comparison Charts (Sampras,2019).

BASIS FOR COMPARISON	PERSONNEL MANAGEMENT	HUMAN RESOURCE MANAGEMENT
Meaning	The aspect of management that is concerned with the work force and their relationship with the entity is well-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 well-known as Human Resource Management.
Approach	Traditional	Modern
Treatment of manpower	Machines or Tools	Asset
Type of function	Routine function	Strategic function
Basis of Pay	Job Evaluation	Performance Evaluation
Management Role	Transactional	Transformational
Communication	Indirect	Direct
Labor Management	Collective Bargaining Contracts	Individual Contracts
Initiatives	Piecemeal	Integrated
Management Actions	Procedure	Business needs
Decision Making	Slow	Fast
Job Design	Division of Labor	Groups/Teams

Conclusion – personnel management vs human resource management (Breezy, 2019)

Human resource management developed as an extension of personnel management, with the objective of fulfilling the gaps present in the traditional approach. It is very important for organizations to incorporate human resource management as there is very high competition in the present times, and it is imperative for every organization to give priority to workers and their needs.

Companies today find it very difficult to retain hard-working and efficient workers because they are fully aware of their rights within the organization. Therefore, human resource management is vital as it makes sure that the rights and requirements of employees are taken into account and aligned with the objectives of the organization.

References

Surbhi, S. (2022) Difference between Personnel Management and Human Resource Management [Online] Available at: https://keydifferences.com/difference-between-personnel-management-and-human-resource-management.html#Definition [Accessed on 20^th April, 2022]

Sampras, A. (2019) Difference Between Personnel Management and Human Resource Management [Online] Available at: https://www.hrmexam.com/2019/05/17/difference-between-personnel-management-and-human-resource-management/ [Accessed on 20th April, 2022]

Shethna, J. (2022) HRM Vs Personnel Management Which is best? (Infographics) [Online] Available at: https://www.educba.com/hrm-vs-personnel-management/ [Accessed on 20th April, 2022]

Breezy, (2019) Personnel management vs human resource management [Online] Available at: https://www.termscompared.com/difference-between-personnel-management-and-human-resource-management/ [Accessed on 20th April, 2022]