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Human Resource Management [HRM] can be defined as managing [planning,

organizing, directing and controlling] the functions of employing, developing and
compensating human resources resulting in the creating and development of human
relations with a view to contribute proportionately to the organizational, individual
and social goals.

Personnel management is the responsibility of all line managers in an

organization that is general manager, production manager, marketing manager,
finance manager etc. and it is a staff function that is it is a function of personnel
manager who is appointed as a specialist. Thus all managers in an organization are
concerned with personnel management.
It is a part of management which is concerned with people and their
relationships within an organization.

Differences between HRM and personnel management


1 Personnel means persons employed, HRM is the management of employees
personnel management is the skills, knowledge, abilities, talents,
management of people employed aptitudes, creative abilities etc.
2 Employee in personnel management Employee in HRM is treated not only as
is treated as an economic man as his an economic man but also as social and
services are exchanged for psychological man. Thus the complete
wages/salary man is viewed under this approach
3 Employee is viewed as commodity Employee is treated as a resource
or tool or equipment which can be
purchased and used.
4 Employees are treated as cost Employees are treated as profit centres
centres and therefore management and therefore invests capital for human
controls the cost of labour resource development and future utility.
5 Employees are mostly used for Here employees are used for the benefit
organizational benefit. of organization, employees and their
family members.
6 Personnel function is treated as only HRM is a strategic management
an auxiliary function.

Nature and scope of HRM

People in any organization manifest themselves not only through individual
sections but also through group interactions. When individuals come to work place
they come with not only technical skills, knowledge but also with their personal
feelings, perception, desires, motives, attitudes, values etc. therefore employee
management in an organization does mean management of not only technical skills
but also other factors of the human resources.

Complex dynamism
A close observation of employees reveals that they are a complex being that is
psychological, physiological, sociological and ethical beings. The proportions or
intensities of these dimensions of the human factor of employment may differ from
one situation to another but the fact remains that these are basic things of human
factor in an organization. Undoubtedly the physical and mental attributes are highly
pertinent to organizational performance and productivity. Therefore if the human
resources are properly utilized, it becomes a dynamic motive force for running an
organization, otherwise it becomes passive and destructive force.

A social system
HRM is relatively new and developed as a part of management