Difference between HRM and Personnel Management

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 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.

2. 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 Personal management says that HRM is a part of management that
is concerned with the employees of the organization and the relationshi ps that they maintain within the
company. It also focuses on together 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 successful growth of the organization.

3. 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 performance and 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 the y 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 so that they perform well and give their best performance to the organization in order to achieve
organizational goals set by the organization.
 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

2. 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 maximum contribution of the employee to meet the organizational
goals the company needs to extend general manager in order to promote and stimulate each and every
employee working for the organization.

3. 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 the skills of
labor in such a way that can meet the goals of the organization effectively.

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

HRM vs. Personnel Management Info-graphics

Below are the top 7 info- graphics on HRM vs. Personnel Management, throws light on major points of
differences between HRM vs. Personnel Management.
 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 the 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 .

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 a 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 assume 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 is 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 grate training and development opportunities, they restrict the employees to minimum
training and development opportunities; whereas HRM believes in giving the e mployees 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 a nd 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 both HRM 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. The functions of personnel management 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 emplo yees are
the best available asset of the organization to lead the organization towards its goals.
13. HRM is a revised and a 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 their salaries 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 that have no feelings and special skills to
perform their jobs however in HRM employees are treated sensitively keeping their ego, their emotions and
their feelings unharmed and intact.