Difference between Personnel Management and Human Resource Management
The fact that both human resource management and personnel management focus on hiring the best candidates for open positions while taking organizational objectives into account is a key area of overlap. Additionally, both strategies employ the same processes for hiring and selecting employees as well as paying them and managing their performance. Human resource management takes a more strategic approach, predicting the demands of the organization and constantly monitoring and optimizing all systems. Personnel management is concerned with maintaining all administrative and personnel systems.
When human resource management (HRM) was less common in earlier
centuries, personnel management was responsible for handling employee staffing
and payroll (PM). Popularly, it is referred to as traditional personnel
management. A development above traditional personnel management is human
resource management
What is Personnel Management?
Simply said, managing human connections inside an organization is
the responsibility of personnel management, labour management, or staff
management.
“Academically, the three aspects of Personnel Management are- (i)
the welfare aspect concerned with working conditions and amenities such as
canteens, creches, housing, personal problems of workers, schools, and
recreation; (ii) the labour or personnel aspect concerned with recruitment,
placement of employees, remuneration, promotion, incentives, productivity, etc.
(iii) the industrial relations aspects concerned with trade union negotiation,
settlement of industrial disputes, joint consultation and collective
bargaining. All these aspects are concerned with the human element in the industry as
distinct from the mechanical”
Figure 2: Function of personnel management; Source: Analysis Project
What is Human
Resource Management?
Human resource management (HRM) is the process of hiring
individuals, providing them with the necessary training and compensation,
creating policies pertaining to them, and creating retention plans. Over the
past 20 years, HRM has undergone a great deal of development as a field, making
it even more crucial in today's enterprises. HRM used to be more of an
administrative function than a strategic one that was essential to the
organization's performance. It involved processing payroll, sending birthday
gifts to employees, planning company outings, and ensuring certain forms were
accurately filled out. The former General Electric CEO and management guru Jack
Welch summarize the new function of HRM: “Get out of the parties and
birthdays and enrollment forms.… Remember, HR is important in good times, HR is
defined in hard times” (Frasch, et. al., 2010),
Conclusion
An improvement over personnel management developed by human
resource management has all but eliminated the latter's flaws. It is very
important in this era of fierce competition when every firm must prioritize its
workforce and its requirements. Currently, it is quite difficult to keep good
employees around for an extended period of time because they are completely
conscious of their rights and any company cannot manage them like machines.
Therefore, HRM has developed to bring together the organization and its
employees in order to achieve a common goal.
Reference
OpenLibrary, n.d. Open Library. [Online]
Available at: https://ecampusontario.pressbooks.pub/busi1600/chapter/human-resources/#:~:text=Human%20resource%20management%20(HRM)%20is,important%20role%20in%20today's%20organizations.
[Accessed 3 12 2022].
Sampras, A.,
2019. HRM Exam. [Online]
Available at: https://www.hrmexam.com/2019/05/17/difference-between-personnel-management-and-human-resource-management/
[Accessed 3 12 2022].
The National
Institute of Personnel Management, n.d. Economics Discussion. [Online]
Available at: https://www.economicsdiscussion.net/personnel-management/personnel-management/31803
[Accessed 3 12 2022].
What are the fundamental distinctions between human resource management and personnel management,Payroll, observing employment laws, and other administrative duties fall within the purview of personnel management. On the other side, HR is in charge of managing the workforce, which is one of the key resources that contributes to an organization's success.
ReplyDeleteHi Rifky,
ReplyDeleteGreat article! It's really helpful to understand the key differences between Personnel Management and Human Resource Management. It's clear that HRM is a much more comprehensive approach that encompasses the entire employee cycle, while Personnel Management is more focused on administrative tasks such as hiring and payroll. Thanks for sharing!
While human resource management takes a more strategic approach and forecasts the needs of the organization while continuously monitoring and changing all systems, personnel management focuses on maintaining all administrative and personnel systems.
ReplyDeleteGood to have more comparison between two titles. Better its in table format.
ReplyDeletePersonnel management focuses on the maintenance of all personnel and administrative systems, whereas human resource management has a more strategic approach. A good read
ReplyDelete