difference between human resource management and personnel management
Difference Between Human Resource Management and Personnel Management
Many of us assume that Human Resource Management (HRM) and personnel management are similar terms and can be interchanged. But, the fact is, even though both these terms share some common grounds, they have some diverse aspects.
- Managing the workforce as assets, that are required to develop the organization.
- Aligning and developing the HR policies, according to the corporate strategies and other business management policies.
- Developing the skills of the employees through adequate training and by providing the necessary resources required to develop their knowledge pertaining to their job.
- Creating an efficient Organization Development (OD) system.
- Developing the organizational structure and planning.
- Managing the wage and salary of the employees and provide appraisals.
- Providing employee benefits and services such as insurance plans, pension plans, fringe benefits, Provident Funds (PF), etc.
- Negotiating on labor union activities like collective bargaining, trade union issues, contract agreements, grievance handling, etc.,
- Auditing the employee policies and practices, to ensure the efficiency of those policies.
Point of Difference | Human Resource Management | Personnel Management |
Key Function | To improve organization's efficiency | Employment laws and payroll management |
Key Focus | Build dynamic culture | Administer the workforce |
Job design | Team work | Division of Labor |
Standardization | Low | High |
Pay appraisals | Performance related | Job evaluation |
Intervention | Wide range of strategies | Procedural methods |
Management role | Transformational | Transactional |
Communication Method | Direct | Indirect |
Key Management Skill | Facilitation | Negotiation |
Contract management | Individual contracts | Trade union or collective bargaining contracts |
Managerial Task | Nurturing | Monitoring |
Key Managers | Business/line/general managers | Personnel managers or IR manager |
Nature of Relation | Unitarist | Pluralist |
Management Action | Informal urge for Business-need | Procedures |
Decision-making | Fast | Slow |
Conflict | De-emphasized | Institutionalized |
Key Relation | Customer | Labor |