HRM Vs Personnel Management - Which is Best ? (Infographics) (2022)

HRM Vs Personnel Management - Which is Best ? (Infographics) (1)

What Is HR and HRM

Human Resource Management, to elaborate further it is nothing but what we call the HR team of a company, or the Human Resource Team of any company. Well, the explanations say that the human resource team or the HRM of any company is a department of an organization that concentrates on recruiting employees, managing them and directing them for the growth of both the employees and the organization. A human resource that is termed as the most important resource for the development of any organization can help the organization grow and develop well. Hence recruiting appropriate staff, maintaining and managing them and then finally guiding them in the right direction is the most important task of the HR team of any organization. Let us try to understand the term HR and HRM first a little better with the help of definitions and their meanings.

Definitions…

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HR

It is not possible to get a precise definition for the term HR and HRM; I have three different definitions for you in order to explain that you can understand HR and its functions, however, cannot explain it precisely, well the meanings are more or less the same.

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  1. Michael J. Jucius explains HR as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components”.

…He means Human Resource consists of a mutually dependent, related and intermingling ethical, physiological, psychological and sociological element.

  1. Sumantra Ghosal believes “human resources of the organization are the human capital. The expert has divided human capital into 3 important sections-intellectual capitals, social capital, and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learning capacity. Social capital is made up of a network of relationships, sociability, and trustworthiness. Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience.”

… Sumantra Ghosal mean and rates the human resource of any company needs to manage the human capital of that company and has also divided this capital into three very important and relevant sections such as intellectual capital, the social capital, and the emotional capital, which has been explained as

  1. Intellectual capital comprises of expertise of different knowledge and skills such as specialized know-how, tactical know-how, various skills, managing complex situations, etc. It also includes a capacity for learning.
  2. Social capital includes trustworthiness, developing a network of relationships and conviviality.
  3. Whereas their emotional capital consists of their ability to bear and manage risk, self-confidence, courage to face and handle situations, and ambitiousness and flexibility.
  4. Leon C. Megginson defined human resource as “From the national point of view human resources are knowledge, skills, creative abilities, talents, and attitudesobtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees”.

… This expert focuses on HR from a nation’s point of view. He says that human resource is a population that has skills, creativity, ability, talent and the attitude obtained by the population; however, from the point of view of an organization, this multi-talented resource of the company inherits gained and learned knowledge, practiced skills in the talents displayed by them, potentials along with the employee’s aptitude.

All the above definitions and experts mean and focus only on one aspect: the qualitative and quantitative abilities of the employees working in any organization or company.

Difference Between HRM andPersonnel Management

HRM

Let us understand HRM as it is a process of making the right effective and efficient use of human resources to achieve organizational goals. With the help of a few definitions given below, you can understand HRM better:

  1. Flippo says, “human resource management is the planning,organizing, directing and controlling of the procurement development compensation integration, maintenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished”.

… Flippo explains the HRM is the development of integrated compensation procurement, occurrences, and disconnection of human resources till the end that the employee, organization, and social objective accomplishments are planned, organized, directed and controlled.

  1. The National Institute of Personnel Management (NIPM) of India defines a human resource as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up an enterprise and having regard for the well-being of the individuals and of working groups, to enable them to make their best contribution to its success”.

… The NIPM or the National Institute of Personnel Management says that HRM is a part of management concerned with the employees of the organization and the relationships they maintain within the company. It also focuses on developing a healthy work atmosphere of men and women working towards making the company along with their well being and the forming groups to make sure they pitch into the organisation’s successful growth.

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  1. Decenzo and Robbins want to say that “HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performanceand ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of organization-government, business, education, health, recreation, or social action”.

… They confirm that Human Resources Management manages the dimension of people working in the organization for every company is made up of people and by people utilizing their expert services, enhancing their skills, inspiring them to perform better and making sure that they maintain their commitment levels towards the company to achieve the objectives of the organization. This applies to all social actions, education, health, recreation, business-government companies.

You can also define HRM in simple words: HRM is a system that very artistically manages people working in a company to perform well and give their best performance to the organization to achieve organizational goals set by the organization.

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Personnel Management

  1. Terry R George says that “Personnel management is concerned with the obtaining and maintaining of a satisfactory and a satisfied workforce.”

… According to the expert, personal management is focused on attaining and sustaining a group of employees who are happy and content with the organization, its management in order to work well and give the organization their best performance to achieve organizational goals

  1. According to H.N. North Scott,“ Personnel management is an extension of general management that of promoting and stimulating every employee to make the fullest contribution to the purpose of the business.”

… H. N. North Scott says to achieve the employee’s maximum contribution to meet the organizational goals, the company needs to extend general manager to promote and stimulate each and every employee working for the organization.

  1. Paul G. Hastings explains personnel Management is that aspect of management having as its goal the effective utilization of the labor resources of an organization”.

… The above explanation states that personnel management is a way of managing and utilizing labour skills in such a way that it can meet the organisation’s goals effectively.

In short, personnel management is concerned with the employees of the organization, with its personnel policies, a coordinate environment at the workplace, make sure that the good work is maintained and ensures individual, social and economic satisfaction.

HRM vs Personnel Management Infographics

Below are the top 7 infographics on HRM vs Personnel Management, which throws light on major differences between HRM and Personnel Management.

HRM Vs Personnel Management - Which is Best ? (Infographics) (3)

Key Difference between HRM vs Personnel Management

Below are the lists of points, describe the key differences between HRM vs Personnel Management:

With the help of the above definitions and explanations given by experts, I wanted you to understand the concept of HR, HRM, vs Personnel Management better. People feel and believe that HRM vs Personnel Management is the same, just that they are two different words with one single explanation; however, that not true. There is a difference between the two as HRM vs Personnel Management has two different explanations; in fact, HRM is an advanced form of Personnel Management. Let’s see how HRM vs Personnel Management is different from each other.

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  1. Personnel management is a little old and a more traditional way of handling employees at a workplace, whereas HRM is a more modern and more specific approach to managing human resources in an organization.
  2. Their focuses are different; for example, Personnel Management focuses on the administration of the organization along with the welfare of employees and maintaining relationships with the labor. However, HRM concentrates on maintaining human resources by acquiring, developing and motivating them.
  3. Both HRM vs Personnel Management assumptions also differ; personnel management assumes that, unlike other resources, even HR is an input to achieve the desired output for the company; however, as per HRM, human resource is the most important and the most valuable resource to help you achieve the desired organizational goals.
  4. As per personnel management, employee satisfaction is achieved by personnel functions, and as per HRM organizational goals are achieved by administrative functions.
  5. In personnel management, job distribution and allocation are done by dividing job amongst labor or amongst the employees; however, as per HRM, the job is designed and distributed amongst groups and amongst teams as per their skills and expertise.
  6. The two terms have a huge gap in their understandings; for example, personnel management does not provide the employees with great training and development opportunities; they restrict the employees to minimum trainingand development opportunities; whereas HRM believes in giving the employees the opportunity of growing and developing by giving them more and more training and development opportunities to help them and the organization grow and reach the organizational goals.
  7. Personnel management draws a line between the top management and the other employees by giving them the authority of taking decisions alone under the set rules and regulations of the organization; however, HRM believes in taking decisions collectively after considering the employee participation, decentralization, authority and the competitive environment in the organization, etc.
  8. The aim of personnel management has much refrained; it aims only on increasing their business in terms of production; however, HRM aims and manages collectively the employee participation, increasing its productivity, the work culture of the company or the organization and its effectiveness on bothHRM vs Personnel Management employees and the organization.
  9. Personnel management also has very limited concerns as this system is related only to the top management and personnel managers; however, the HRM is concerned with the managers at all levels and all departments.
  10. Personnel management functions are very routine, whereas the functions of HRM are very strategic as it is based on a number of strategies.
  11. Personnel management focuses on dealing with the employees within the organization; however, HRM focuses on utilizing the HR of the organization in the best possible way.
  12. For personnel management, HR is like any other tool of the organization; however, for HRM, employees are the best available asset of the organization to lead the organization towards its goals.
  13. HRM is a revised and more advanced version of Personnel Management.
  14. Personnel Management is very slow in making decisions, whereas the HRM is much faster in making and implementing its decisions.
  15. In Personnel Management, the union leader comes into the picture for the bargaining is done collectively with the union; however, in HRM, the company has separate contracts with the employees; hence union is required.
  16. Personnel Management pays the employees theirsalaries as per their job evaluations; however, in HRM, the company pays the employee basis their performance.
  17. Personnel Management treats the employees like other resources with no feelings and special skills to perform their jobs; however, in HRM, employees are treated sensitively, keeping their ego, emotions, and feelings unharmed and intact.

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There is a very fine line between the two HRM vs Personnel Management. After putting a number of analyses to use and finally developing personnel management into HRM, the fine differences have been taken into consideration. You may also look at the following articles to learn more –

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FAQs

Which is better HRM or personnel management? ›

Personnel management focuses on the maintenance of all personnel and administrative systems, whereas human resource management has a more strategic approach, forecasting the organisation's needs and continuously monitoring and adjusting all systems.

Why human resource management is the best? ›

Having a strong HR department backed by solid leadership is one of the best ways for a company to ensure employee satisfaction, productivity, and future growth. A satisfied staff is the foundation of a thriving company, and HR management is the cement that holds it together.

Which model of HRM is best? ›

The Harvard HRM model is considered one of the most influential 'soft HRM' approaches due to its focus on people rather than outcomes. The Harvard HRM model seeks to provide an optimal context for people to do their best work.

How is personnel management different from HRM? ›

Fundamentally, personnel management focuses on primary administrative activities, such as employee hiring, wages, training, and harmony. Whereas HRM concentrates to measure the organization's needs and continuously review and adjust all systems to reach a common goal.

What is an example of personnel management? ›

For example, at the U.S. Office of Personnel Management (OPM), the government department responsible for managing federal employees, key functions include vetting potential new hires, developing human resources policies, and administering benefits such as pensions and health care.

What are the objective of personnel management? ›

The major objective of personnel management is the effective utilisation of manpower working in the organisation so that the organisation may continue to survive and achieve its goals. A business organisation is started with a long term point of view. Its main objective is survival and growth.

Is HR a good career for the future? ›

1. Because HR plays a crucial role in helping companies run smoothly, it's no wonder that it's become one of the fastest-growing fields in the United States. In fact, the Bureau of Labor Statistics (BLS) predicts an additional 70,000 HR jobs will flood the industry by 2030.

Why do you choose HRM course? ›

The subjects you undertake lend themselves to a variety of career paths and job positions in human resource management and beyond. Managing people and client relations is an important skill to acquire in business, and this is just one aspect of HR that you can apply to any job.

Why is human resources most important? ›

Human resources, or HR, is important for every organization that has employees, as HR handles a wide variety of tasks related to business operations. HR can help recruit and retain high-quality employees that make a business more effective. HR also ensures compliance in ways related to company, state and federal rules.

What are the 5 P's of HRM? ›

They include resourcing, learning and development, performance and reward management, employee relations and administration.

What are the 4 major models of HRM? ›

The four HRM models are: (i) The Fombrun, (ii) The Harvard, (iii) The Guest, and (iv) The Warwick.

Why are HRM models important to an organization? ›

The goal of creating HRM models is to help companies manage their workforce in the most efficient and effective manner possible, in order to achieve the established objectives. Human resource management is often defined as a concept that includes two possible approaches, or forms.

What are the similarities between personnel management and HRM? ›

2.2.

One basic similarity between personnel management and HRM is that both regard putting the right people on the right jobs as one of the overall goals of managing people at the workplace (Legge 1989: 26).

Are HRM and personnel management synonymous terms? ›

Human Resource Management is the advanced version of Personnel Management. Decision Making is slow in Personnel Management, but the same is comparatively fast in Human Resource Management. In Personnel Management there is a piecemeal distribution of initiatives.

What are the importance of personnel administration? ›

The three objectives of personnel administration are i) to maintain healthy working culture ii) to enable an employee to achieve his personal goal and iii) to achieve harmonious relationship between the employees and employers by integrating personal goals of the employees with the organizational goals.

What is another name for personnel manager? ›

personnel management > synonyms

»people management exp. »staff management exp. »human resources management exp. »management of human resources exp.

What is personnel management in simple words? ›

According to Flippo, “Personnel management is the planning, organizing, compensation, integration and maintainance of people for the purpose of contributing to organizational, individual and societal goals.”

What are the three types of personnel management? ›

Three types of personnel management
  • Strategic personnel management. Strategic personnel management primarily focuses on current and future staffing needs. ...
  • Tactical personnel management. ...
  • Operational personnel management.
31 Mar 2021

What is scope of personnel management? ›

Scope of personnel management: (1) Employment Function (2) Training Function or Development Function (3) Formulation of Promotion Policy (4) Job Analysis (5) Merit Rating (6) Job Evaluation (7) Compensation and (8) Providing Service and Benefits.

What are the characteristics of personnel management? ›

Characteristics:
  • (a) It is concerned With Employees:
  • (b) It is concerned With Personnel Policies:
  • (c) Creation of Cordial Environment:
  • (d) It is of a Continuous Nature:
  • (e) It Ensures Economic, Social and Individual Satisfaction:

Can HR become CEO? ›

In reality they are trained to become a CEO as they work very closely with their CEOs on various job issues and good HR professionals help a CEO succeed as they help solve a variety of issues,” says Puri. Here's another reason why the HR boss may be a good CEO candidate.

How do I know if HR is right for me? ›

To build a satisfying career in human resources, you should first determine if you have the passion, skills and characteristics you need to succeed. Learning about human resources professions and reflecting on your professional goals can help you decide whether or not to look for a job in HR.

Is HR a stressful job? ›

According to a Perkbox survey of over 16,000 people across 50 cities, a whopping 79% of Human Resource employees reported unhealthy levels of job stress, making them the most stressed out profession. If you're involved in the field, this may not surprise you.

Should I study HRM? ›

A course in HRM can help you develop a strategic approach to recruitment, training, analysis, and every other intricacy of HR. Moreover, you'll gain exposure to the design, process, and execution of such strategies in a global scenario, so that's another one of the benefits of studying human resource management.

Is HR difficult to study? ›

Is a Human Resources Degree Hard? HR degrees can challenge students with their blend of business and human relations training. However, learners with proper preparation and study habits should find this program no more difficult than other business disciplines.

What do HRM students do? ›

Core HRM functions include: the hiring and development of employees through training, incentives and benefits, and performance evaluation. administrative services, mediating in disputes and communicating with staff at all levels.

Why HRM is important to small businesses? ›

The importance of human resource management is key to small business growth. HR must adhere to employment laws, create and implement effective employee management procedures, and handle payroll and tax remittance—all while ensuring your company is a great place to work.

Why did you choose HR as your career answer? ›

Some of the major reasons why people choose a career in HR is the opportunity to influence innumerable aspects of the organisation, to assist in the development of its employees, and to play a part in influencing strategic business decisions.

Is HRM becoming more strategic? ›

Previously considered a support function, HRM is now becoming a strategic partner in helping a global company achieve its goals. The strategic approach to HRM—strategic human resources management (SHRM) —means going beyond administrative tasks such as payroll processing.

What is Harvard model of HRM? ›

The Harvard model for HRM is an HR strategy model comprised of five components: ‍ 1. The model starts, on the left, with stakeholder interest. These stakeholders include shareholders, management, employee groups, government, and more.

What are the strategic HRM tools? ›

5 Tools For Strategic Human Resource Management
  • Customized onboarding for new hires.
  • Ongoing training opportunities for all employees.
  • Ongoing meetings to review the HR strategy.
  • Formal and informal employee surveys.
26 May 2020

What is strategic HRM model? ›

Introduction. Strategic human resource management (strategic HRM) provides a framework linking people management and development practices to long-term business goals and outcomes. It focuses on longer-term resourcing issues within the context of an organisation's goals and the evolving nature of work.

What is job design in HRM? ›

Job design is the process of establishing employees' roles and responsibilities and the systems and procedures that they should use or follow. The main purpose of job design, or redesign, is to coordinate and optimise work processes to create value and maximise performance.

What are the 5 steps of strategic HR management? ›

Your Strategic HR Plan will be built upon the foundation of this strategic business plan.
  1. Step 1: Identify Future HR Needs. ...
  2. Step 2: Consider Present HR Capabilities. ...
  3. Step 3: Identify Gaps Between Future Needs & Present Capability. ...
  4. Step 4: Formulate Gap Strategies. ...
  5. Step 5: Share & Monitor The Plan.
18 Apr 2018

When did personnel become human resources? ›

Most believe that the first human resources department was established by The National Cash Register Company in 1901 following several strikes and employee lockouts. Although it was referred to then as “personnel,” the new department's role, as established by NCR leader John H.

What is the difference between human relations and human resources? ›

A Human Relations manager strives to make employees happier in order to receive a higher productivity from them; while a Human Resources' manager would see employees as resources that contribute to the functioning of an organization and needs of an individual.

What is a personnel manager? ›

a person who is in charge of the department that deals with the employment, training, support, records, etc. of a company's employees: The function of a personnel manager usually begins with the staffing process.

What are the similarities between personnel management and HRM? ›

2.2.

One basic similarity between personnel management and HRM is that both regard putting the right people on the right jobs as one of the overall goals of managing people at the workplace (Legge 1989: 26).

What is the difference between personnel HRM and HRD? ›

The main difference between HRM and HRD is that HRM is a management department, whereas HRD is a development department. The functions and goals of these two departments are different. The management of all the activities comes under HRM, whereas HRD only concentrates on an employee's training and development.

What is the difference between HRM vs PMIR? ›

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.

What are the importance of personnel administration? ›

The three objectives of personnel administration are i) to maintain healthy working culture ii) to enable an employee to achieve his personal goal and iii) to achieve harmonious relationship between the employees and employers by integrating personal goals of the employees with the organizational goals.

When did personnel become human resources? ›

Most believe that the first human resources department was established by The National Cash Register Company in 1901 following several strikes and employee lockouts. Although it was referred to then as “personnel,” the new department's role, as established by NCR leader John H.

What is personal management? ›

Personal management or self-management skills involve your ability to control your feelings, thoughts, and actions. With this skill, you can set independent goals, and take action to realize them. In the long run, personal management skills help direct your career trajectory.

What is the future of HRM? ›

By 2025, we can expect HR professionals to take on the role of championship coaches, guiding businesses through expected disruptions and becoming an essential part of HR strategy and planning. Also, HR departments would become more agile, achieving faster decision-making through improved collaboration.

What is HRM in simple words? ›

Human resource management, HRM, is the department of a business organization that looks after the hiring, management and firing of staff. HRM focuses on the function of people within the business, ensuring best work practices are in place at all times.

Which HR function is most important? ›

Recruitment is a key responsibility of the HR department.

Which is wider HRM and HRD? ›

HRM is a narrower concept which aims at developing and administering people only. HRD is a wider concept aims at developing not only its people but its whole organization.

What is scope of human resource management? ›

The scope of HRM is very wide: Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

What is the role of a human resource manager? ›

Human resources managers plan, coordinate, and direct the administrative functions of an organization. They oversee the recruiting, interviewing, and hiring of new staff; consult with top executives on strategic planning; and serve as a link between an organization's management and its employees.

Are HRM and personnel management synonymous terms? ›

Human Resource Management is the advanced version of Personnel Management. Decision Making is slow in Personnel Management, but the same is comparatively fast in Human Resource Management. In Personnel Management there is a piecemeal distribution of initiatives.

What is job design in HRM? ›

Job design is the process of establishing employees' roles and responsibilities and the systems and procedures that they should use or follow. The main purpose of job design, or redesign, is to coordinate and optimise work processes to create value and maximise performance.

Why do you say managing human resource is tough when compared to other resources? ›

Increasing concerns of Job Security, Benefits and Services

The risky jobholders need high benefits and services. The employees demand for salaries, benefits, services, less risky job, reduced workloads etc are having challenging to the human resource managers.

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