Professional Documents
Culture Documents
Development of work culture: The need of HRD is felt as it improves the efficiency of employees,
checks monotony at work, better communication, development of mutual cooperation and creativity of
all the members comes into limelight.
Developing potentialities: The focus of HRD manager essentially is on enabling people to self-
actualise through a systematic approach by which their existing talents are further developed.
Growth of employees: HRD is associated with growth of employees. It helps employees to know
their strengths and weaknesses and enable them to improve their performance. The management
should provide adequate opportunity for the development of human resource management for the
development of their talents so that their development will benefits the orgFunctions of HRM
In early centuries, when Human Resource Management (HRM) was not prevalent, then the staffing and
payroll of the employees were taken care of, by the Personnel Management (PM). It is popularly known
as Traditional Personnel Management. Human Resource Management have emerged as an extension
over the Traditional Personnel Management. So, in this article, we are going to throw light on the
meaning and differences between Personnel Management and Human Resource Management.
Comparison Chart
Definition
Key Differences
Conclusion
Comparison Chart
Meaning The aspect of management that is concerned with the work force and their relationship
with the entity is 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 known as Human
Resource Management.
Focus Primarily on mundane activities like employee hiring, remunerating, training, and harmony.
Treat manpower of the organization as valued assets, to be valued, used and preserved.
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. 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, employee welfare, utilization, maintenance and collective bargaining.
Managerial Function: Planning, Organizing, Directing, Motivation, Control, and Coordination are the
basic managerial activities performed by Personnel Management.
From the last two decades, as the development of technology has taken place and the humans are
replaced by machines. Similarly, this branch of management has also been superseded by Human
Resource Management.
Human Resource Management is a continuous process of ensuring the availability of eligible and willing
workforce i.e. putting the right man at the right job. In a nutshell, it is an art of utilizing the human
resources of an organization, in the most efficient and effective way. HRM covers a broad spectrum of
activities which includes:
Employment
Employee Services
Industrial Relations
Education
Working conditions
The part of management that deals with the workforce within the enterprise is known as Personnel
Management. The branch of management, which focuses on the best possible use of the enterprises
manpower is known as Human Resource Management.
Personnel Management treats workers as tools or machines whereas Human Resource Management
treats it as an important asset of the organization.
Decision Making is slow in Personnel Management, but the same is comparatively fast in Human
Resource Management.
In Personnel Management, the basis of job design is the division of work while, in the case of Human
Resource Management, employees are divided into groups or teams for performing any task.
In PM, the negotiations are based on collective bargaining with the union leader. Conversely, in HRM,
there is no need for collective bargaining as individual contracts exist with each employee.
In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is performance evaluation.
Personnel management primarily focuses on ordinary activities, such as employee hiring, remunerating,
training, and harmony. On the contrary, human resource management focuses on treating employees as
valued assets, which are to be valued, used and preserved.
Conclusion
Human Resource Management has come up with an extension over Personnel Management, which
eradicated the shortcomings of the Personnel Management. It is quite essential in this era of intense
competition where every organization have to put their manpower and their needs first.
Nowadays, it is very challenging to retain and maintain good employees for a long time as they are fully
aware of their rights and any organization cannot treat them like machines. So, HRM has been evolved to
unite the organization with their employees for the attainment of a common goal.
Read more: http://keydifferences.com/difference-between-personnel-management-and-human-
resource-management.html#ixzz4o2u3FU7Hnisational growth.