Difference Between Personnel Management And HRM

Difference Between Personnel Management And HRM

The major dissimilarities or difference between personnel management and HRM (human resource management) can be highlighted as follows:

1. Introduction

Personnel Management: An administrative function related to administration of manpower in the organization.

HRM: Management process which is related to effective and efficient use of human resources in order to obtain predetermined goals and objectives of the organization.

2. Concerned With

Personnel Management: Administration of employees

HRM: Proper management and utilization of human resources

3. Scope

Personnel Management: It has a limited scope than HRM

HRM: It has wider scope than personnel management

4. Type Of Approach

Personnel Management: Rigid, unscientific, traditional and inappropriate approach to handle manpower

HRM: Modern, scientific and appropriate approach to utilize human resources

5. Communication

Personnel Management: There is restricted and indirect communication between superiors and subordinates.

HRM: Open and direct communication between superiors and subordinates

6. Focus/Centered

Personnel Management: It gives focus on work. So, it is work-centered process

HRM: It gives focus on utilization of resources. So, it is resource-oriented process

7. Nature

Personnel Management: It functions are operational in nature

HRM: Its functions are strategic in nature

8. Employees Treatment

Personnel Management: It treats employees as tools

HRM: It treats employees as valuable assets

9. Decision Making Style

Personnel Management: All decisions are taken by higher level authority or personnel manager

HRM: It uses collective decision making style

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Difference Between HRM And HRD

10. Training And Development Opportunities

Personnel Management: Less

HRM: More

11. Basis Of Pay

Personnel Management: Employees are paid on the basis of job evaluation

HRM: Employees are paid on the basis of performance evaluation

12. Advantage/Benefit

Personnel Management: Proper discipline and higher productivity

HRM: Quality of work life, higher productivity and higher profit.

Personnel Management Vs HRM (Comparison Chart)

Basis	Personnel Management	HRM
Introduction	Administrative function of hiring and administering manpower	Process related to efficient employment of human resources
Concerned With	Manpower administration	Proper utilization of human resource
Scope	Limited	Wider
Approach Type	Rigid and unscientific	Modern and scientific
Communication	Indirect	Direct
Centered/Focus	Work-centered	Resource-centered
Nature	Operational	Strategic
Employees Treated As	Tools	Valuable Assets
Decision Making	By top level management	Collective decision making
Development Opportunities	Less	More
Basis Of Pay	Job Evaluation	Performance Evaluation
Benefits	Proper discipline and higher productivity	Quality of work life and higher profit

I hope this post is helpful to understand the difference between personnel management and HRM and to make comparison between them.