What is the Difference Between Human Resource Management and Personnel Management?

🆚 Go to Comparative Table 🆚

The main difference between human resource management (HRM) and personnel management lies in their scope and approach. Here are the key differences between the two:

  1. Scope: Personnel management focuses on basic administrative tasks such as hiring, paying, training, and maintaining employee relationships. HRM, on the other hand, has a broader scope that includes employee development, wellbeing, and maintaining good working conditions. HRM also aims to establish a rewarding company culture and build strong connections between management and staff.
  2. Employee Focus: Personnel management treats workers as tools or machines, whereas HRM views employees as valuable assets to the organization. HRM emphasizes mutuality in terms of goals, responsibility, and rewards.
  3. Decision-making: Decision-making in personnel management is often slower, while HRM tends to be faster in making decisions.
  4. Strategic Approach: HRM is more strategic and involves the strategic employment of individuals, viewing employees as resources to the company. Personnel management is a traditional way of managing employees, focusing on action rather than planning, long timetables, and setting strategies.

In summary, personnel management is a more traditional approach to managing employees, focusing on basic administrative tasks. HRM, on the other hand, is a more strategic and comprehensive approach that aims to develop and retain employees, fostering a positive work environment and promoting mutual goals and responsibilities.

Comparative Table: Human Resource Management vs Personnel Management

Here is a table comparing the differences between Human Resource Management (HRM) and Personnel Management:

Feature Personnel Management Human Resource Management (HRM)
Focus Administrative tasks, hiring, paying, training, and ensuring employee harmony Strategic management of employees, alignment with organizational goals, and long-term implications of HR decisions
Objective Ensuring the organization has the right number of people with the required skills Ensuring the organization has a pool of talent and skills to thrive in the long term
Scope Limited to managing the employees of an organization Holistic approach that considers the whole person and includes all aspects related to managing an organization's human resources
Major Functions Employee hiring, remuneration, training, and harmony Recruitment & staffing, Equal employment opportunity, HR development, Remuneration, Employee relations, Continuous improvement
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Initiatives Piecemeal Integrated
Collective Bargaining Contracts Individual Contracts

In summary, Personnel Management focuses on administrative tasks and hiring, while HRM is a more strategic approach that aligns with an organization's goals and considers the long-term implications of HR decisions. Personnel Management is limited to managing employees, whereas HRM takes a holistic view of the organization's human capital.