What are the differences between personnel management and HRM?
We often come across a lot of misconceptions and confusion between the terms Human Resource Management and Personnel Management. Some management experts consider it as the “same wine in the new bottle”, however other veterans go with different scopes and orientations. Show
The term Personnel Management has been used a long time before they coined the term Human Resource Management. It is most commonly referred to as the practice of managing staffing and payroll in an organisation. However, Human Resource is an extension of it with enhanced roles and responsibilities. Let’s dive in.
What Is Personnel Management?Personnel Management is a branch of management that is concerned with employees and their relationship with the entity. It includes workforce-related activities such as staffing, payroll, contract management, and administrative decisions. It includes all the tasks that are required to run an organisation smoothly. A personnel manager’s job is administrative in nature. These managers work towards fulfilling the needs of a workforce and immediately resolving their concerns. They ensure that the organisational responsibilities are assigned to the right personnel and no compromises are made. Personnel Managers act as a mediator between employees and senior management. They work towards meeting the organisational goals along with maintaining the rules and regulations of an organisation. Suggested Read: Functions of Human Capital Management (HCM) Software Predominant Functions of Personnel Management
For the last two decades, technology is getting advanced and machines are replacing humans. Similarly, Personnel Management has also evolved and been replaced by Human Resource Management. What Is Human Resource Management?Human Resource Management is a branch of management that ensures the effective use of manpower in an entity. HRM includes several activities like acquiring, maintaining, developing, and coordinating between employees and motivating them to work at their best potential and deliver results. It involves training, learning and development to usher employees towards achieving organizational goals. HR professionals ensure that the right resources are recruited, they undergo training, and receive fair remuneration. Also, their performance is evaluated from time to time. A Human Resource Manager’s job is persistent in nature. They continuously need to fill the skill gap in the organisation. Human resource is nothing less than the art of utilising the skills of the resources at different levels of the organisation. Their roles and responsibilities include the following:
HRM has now evolved. New age organisations focus on the “people-first” approach while attaining the organisational goal and achieving the highest returns. This signifies that HRM has a much wider horizon than Personnel Management. Suggested Read: List of 20 Best HR Software In India – HRMS Software Companies Importance of Personnel Management and Human Resource ManagementPersonnel Management holds the following importance in shaping an organisation:
Importance of Personnel Management and Human Resource ManagementHuman Resource Management is directly related to the welfare of the company. It holds the following significance:
Suggested Read: Key Roles and Responsibilities of HR Managers in Post Pandemic World Personnel Management Vs Human Resource Management: Comparison ChartThe following is the tabular representation of the difference between Personnel Management and Human Resource Management.
Conclusion HRM was developed as an extended form of personnel management. The objective was to fulfil the gaps present in the traditional approach. In today’s highly competitive world, human resource management is a basic need of every organisation because it focuses on strengthening the skills of the employees and considers them as the most important asset of the company. With modern-day organisations adopting all possible means to attract the top skillforce, retaining the best talent in your organisation becomes challenging. Therefore, HRM is crucial as it takes into account the interest of employees and aligns them towards achieving organisational objectives. FAQs
Related Categories: HR Software | Payroll Management Software | Leave Management Software | Workforce Management Software | Recruitment Management Software What's the difference between HR and personnel?As the responsibilities of the department have evolved, the term human resources is the term that is used for departments that manage personnel and the resources to develop talent. Personnel refers to the actual human beings, while resources are all the tools to recruit, manage and train people to be better employees.
What are the similarities between personnel management and HRM?One significant similarity between personnel management and HRM is that both work in order to recruit the right people for the right job considering organizational objectives. Plus, both approaches use the same functions from recruitment and selection to remuneration and performance management.
What is the difference between personnel management and personnel administration?3) personnel administration is a top level function whereas personnel management is middle and lower level function. 4) personnel administration is a thinking function whereas personnel management is a doing function.
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