Tuesday, January 13, 2009

Difference between Human Resource Management and Personnel Management

Human resource management involves all management decisions and practices that directly affect or influence the people, or human resources, who work for the organization. In other words, Human resource management is concerned with ‘people centric issues’ in management.

The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.


ALTHOUGH both human resource management (HRM) and personnel management focus on people management, if we examine critically, there are many differences between them. Some are listed below:

i) Nature of relations: The nature of relations can be seen through two different perspective views which are Pluralist and Unitarist. There is a clear distinct difference between both because in personnel management, the focus is more on individualistic where individual interest is more than group interest.

The relationship between management and employees are merely on contractual basis where one hires and the others perform. Whereas, HRM focuses more on Unitarist where the word "uni" refers to one and together.

Here, HRM through a shared vision between management and staff create a corporate vision and mission which are linked to business goals and the fulfillment of mutual interest where the organization’s needs are satisfied by employees and employees' needs are well-taken care by the organization. Motorola and Seagate are good examples of organizations that belief in this Unitarist approach which also focuses in team management and sees employees as partners in an organization.

Relation of power and management: The distribution of power in personnel management is centralized where the top management has full authority in decision-making where even the personnel managers are not even allowed to give ideas or take part in any decision which involves "employees".

HRM, on the other hand, sees the decentralization of power where the power between top management is shared with middle and lower management groups.

This is known as "empowerment" because employees play an important role together with line and HR managers to make collective and mutual decisions, which can benefit both the management and employees themselves.

In fact, HRM focuses more on TQM approach as part of a team management with the involvement and participation of management and employees with shared power and authority.

The nature of management is focused more on bottom-up approach with employees giving feedback to the top management and then the top management gives support to employees to achieve mutually agreed goals and objectives.

ii) Leadership and management role: Personnel management emphasizes much on leadership style which is very transactional. This style of leadership merely sees the leader as a task-oriented person. This leader focuses more on procedures that must be followed, punishment form non-performance and non-compliance of rules and regulations and put figures and task accomplishments ahead of human factors such as personal bonding, interpersonal relationship, trust, understanding, tolerance and care.

HRM creates leaders who are transformational. This leadership style encourages business objectives to be shared by both employees and management. Here, leaders only focus more on people-oriented and importance on rules, procedures and regulations are eliminated and replaced with:

· Shared vision;

· Corporate culture and missions;

· Trust and flexibility; and

· HRM needs that integrates business needs.

iii) Contract of employment: In personnel management, employees contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so rigid that there is no room for changes and modifications. There is no compromise in written contracts that stipulates rules, regulations, job and obligations.

HRM, on the other hand, does not focus on one-time life-long contract where working hours and other terms and conditions of employment are seen as less rigid. Here, it goes beyond the normal contract that takes place between organizations and employees. The new "flexible approach" encourages employees to choose various ways to keep contributing their skills and knowledge to the organization.

HRM, with its new approach, has created flexi-working hours, work from home policies and not forgetting the creation on "open contract" system that is currently practiced by some multinational companies such as Motorola, Siemens and GEC.

HRM today gives employees the opportunity and freedom to select any type of working system that can suit them and at the same time benefit the organization as well. Drucker (1996) calls this approach a "win-win" approach.

iv) Pay policies and job design: Pay policies in personnel management is merely based on skills and knowledge required for the perspective jobs only. The value is based on the ability to perform the task and duties as per the employment contract requirement only. It does not encourage value-added incentives to be paid out. This is also because the job design is very functional, where the functions are more departmentalized in which each job falls into one functional department. This is merely known as division on labour based on job needs and skill possessions and requirement.

HRM, on the contrary, encourages organizations to look beyond pay for functional duties. Here, the pay is designed to encourage continuous job performance and improvement which is linked to value-added incentives such as gain sharing schemes, group profit sharing and individual incentive plans.

The job design is no more functional based but teamwork and cyclical based. HRM creates a new approach towards job design such as job rotation which is inter and intra-departmental based and job enlargement which encourages one potential and capable individual to take on more tasks to add value to his/her job and in return enjoy added incentives and benefits.


  1. thank you so much...

  2. thank you! this is very helpful

  3. Thank you so much for this info.But are there other differences between PM & HR.Like the administrative and the bureaucratic nature of PM.etc. can you also assist by listing examples of functions that falls under each category?

    Please assist its kind urgent.

    Thank You.

  4. Thank you so much

  5. thank u and i wud lik if i get on more stuff like this..!! :-)

  6. aryan maan, you are really gr9.. thank u so much for the help. both articles are vry good.

  7. thx alot...ur post help alot for my assignment..thx

  8. The difference between human resource and the personal management is shown very discretely. Though they are different superficially some how they are inter connected.
    Human Resources College
    Human Resources College

  9. hey thats interesting.. but can i ask u a doubt?
    in a few articles i have read that personnel management is collectivistic and human resource mangement is an individualistic. can u plz explain?

  10. thanks so much for this info. it is really helpful.

  11. Thank you friend, that was really great collection you are having.. most appreciating thing is you are sharing with others through the medium of blog. keep it up and keep posting new articles. thank you once again.

    - Shikha Rao, TM Consultancy

  12. thank you very much. still many points remaning. can u pls explain all of them in detail??

  13. Thank you so0o0o0o much...It is really helpful

  14. thanks so much it was really informative !!!

  15. thanks a tonne u should do more on the similar topics

  16. thanks alot u jst made me excel in this unit.

  17. Replies
    1. Help me to collect some data regarding education. I am in final year. And it’s time to submit my project. Your post helps me a lot. Thanks for it. You also read some new information stuff from below links.

      Marketing Degrees

    2. This is very helpful. Thank you so much.

  18. it really helpful...

  19. thanks Alot. Am preparing for my exams and this question is going t come. My sucess is dedicated to you.

  20. thank u very much

  21. thnx it is very useful to me for my exams

  22. thank u for the posting, However, according to British studies, this topic is much more vast and detailed and complicated than explained above, and could be improved if critically analyzed in depth. Karen Legges' work could come in handy. More research is required for university level students.

  23. It was useful, I love the distinction points.. Some organizations still implement the PM not HRM.

  24. It was quite useful but some Organizations still implement the traditional approaches and use the PM techniques which is not fair..

    Thank you.

  25. It was useful, I love the distinction points.. Some organizations still implement the PM not HRM.

  26. It was useful, I love the distinction points.. Some organizations still implement the PM not HRM.

  27. thankyou sooo much for this information its a good answer

  28. thanks so much,you re a life saver

  29. You have been very helpful! Great explanation! :)Thank you

  30. thanks.you just made my weeks assignment easy.

  31. Tnx u reali are d best

  32. Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that
    I get actually enjoyed account your blog posts. Anyway I'll be subscribing to your augment and even I achievement you access consistently quickly.
    Also visit my homepage :: how to make iphone apps

  33. Excellent post. I certainly love this site.
    Continue the good work!
    Check out my website ; Work from home

  34. For most up-to-date information you have to pay a quick visit world-wide-web and on
    the web I found this site as a best site for
    hottest updates.
    Also visit my weblog ; how to play piano

  35. I like looking through a post that will make men and women think.

    Also, thank you for permitting me to comment!
    Also see my page :: golden virginia

  36. Magnificent goods from you, man. I've understand your stuff previous to and you're just too fantastic.
    I really like what you've acquired here, really like what you're saying and the way
    in which you say it. You make it enjoyable and you still take care
    of to keep it wise. I can not wait to read far more from you.
    This is actually a terrific website.
    Here is my web-site ... old holborn yellow

  37. Hi there to every one, it's truly a pleasant for me to pay a visit this website, it includes valuable Information.
    Feel free to visit my web-site :: Golden Virginia

  38. This paragraph is genuinely a nice one it helps new net viewers, who are wishing for
    Feel free to visit my homepage amphora tobacco

  39. I think this is one of the most important information for me.
    And i'm glad reading your article. But should remark on few general things, The site style is ideal, the articles is really excellent : D. Good job, cheers
    Look at my webpage ; boligityrkia.net

  40. I'm curious to find out what blog platform you're working with?
    I'm experiencing some small security issues with my latest blog and I'd like to find something more risk-free.
    Do you have any solutions?
    Take a look at my web-site ; tattoo removal before and after

  41. I am genuinely grateful to the owner of this site who has shared this fantastic post at at this
    Here is my weblog university of alabama school of medicine tuscaloosa

  42. Heya i am for the first time here. I found this board and I find
    It truly useful & it helped me out much. I hope to give something back and aid
    others like you aided me.
    Also visit my page http://boligityrkia.net

  43. Thanx alot.. It was really amazing. Great collection.. Thanx again..

  44. Thanx alott. It is great collection, really very helpful.

  45. this is very much useful, it helped me so much. thank you

  46. We're a bunch of volunteers and opening a new scheme in our community. Your site offered us with valuable info to work on. You have performed an impressive activity and our whole group will likely be grateful to you.

    My blog - takemassageclasses.com

  47. I am really inspired together with your writing talents and also with the layout to
    your weblog. Is this a paid theme or did you modify it your self?
    Either way keep up the nice quality writing, it is rare to see
    a great weblog like this one these days..

    Check out my web site - http://www.plutos.org.uk/Architect-firms-in-london/link/13439

  48. wonderful submit, very informative. I'm wondering why the opposite specialists of this sector don't notice this.
    You should continue your writing. I am confident, you have a huge
    readers' base already!

    Also visit my website - goingtohelp.net/groups/dayton-movers/

  49. hey this explanation really helped me...
    jeet kumar agarwal,milanpally,siliguri,west bengal

  50. hey it really helepd me....
    jeet kumar agarwal, siliguri, milanpally, west bengal

  51. Hi, yup this paragraph is truly fastidious and I have learned lot
    of things from it concerning blogging. thanks.

    Also visit my blog post ... How to get rid of stretch marks

  52. Heya i'm for the first time here. I came across this board and I find It really useful & it helped me out much. I hope to give something back and aid others like you aided me.

    Here is my web page; golden lab

  53. Do you understand if whey protein is wheat free of charge?

    I am allergic to wheat. Tough to find wheat free products, specifically on a very low budget.

    Any recommendations?
    BTW, I am a 38 yo feminine, 5'2 & 136 lbs (recent abdominoplasty & breast reduction). Need to lean, tone & cut up.

    Feel free to surf to my site; mike chang six pack shortcut free download

  54. Hey there! I know this is kinda off topic but I was wondering
    which blog platform are you using for this site? I'm getting tired of Wordpress because I've had
    problems with hackers and I'm looking at alternatives for another platform. I would be awesome if you could point me in the direction of a good platform.

    Stop by my weblog ... golden labrador puppies

  55. Woah! I'm really digging the template/theme of this website. It's simple, yet effective.

    A lot of times it's very difficult to get that "perfect balance" between usability and visual appearance. I must say that you've done a awesome job with this.
    In addition, the blog loads very fast for me on Opera.
    Superb Blog!

    Here is my website - internet marketing

  56. hey thx for sharing..... it's quiet helpful....

  57. What actions did Wealthy males, females, and kids participate in, within the
    19th century?

    Here is my web page :: kirsten Price

  58. Dont rekon I undeгstanԁ this 2 b true.
    Myt have to go elѕωhere 2 get іt.

    my homеpage fast cash loans with monthly payments

  59. I never know what is hidefap,I am so sorry to say I know little about software.

    Can you please kindly supply me a link to acquire through this block?


    Look into my webpage ... online dating statistics bad

  60. Android Discussion board

    my web blog ... build muscle burn fat workout plan

  61. Only do so under the guidance of a naturopath who will advise you on
    how to safeguard yourself against the toxic mercury exposure during and following amalgam removal.

    Feel free to surf to my web-site :: teeth whitening at home baking soda

  62. we want a single!

    Review my website arrow sheds ga1017

  63. east or west jay is the best.

    Also visit my page - six pack shortcuts training program download

  64. Of course, many people claim as much, but the product didn't last long. Wade on January 27, 2009 in Washington. I feel one college corner cafe setup, in particular, can help you improve your game and boost your score/min and kdr. Hopefully it will be announced somewhere around last week of this month or the first week of june. I really don't
    want to put food in their hair. It's the work of bipartisan groups in both chambers of Congress.

    Also visit my web site Www.Kolleg-St-Thomas.De

  65. Sixties teen heart throb Bobby Veesings back-up on" Love Must Have Passed Me By" Robert
    Thomas Velline/Salma Music/BMI and Flores' acoustic guitar case parts track on George Harrison's" While My guitar case parts Gently Weeps" Harrisongs Ltd.

    Look into my web-site ... how much is yours worth?

  66. This vitamin is water soluble and cannot be lost completely-
    but no matter what body type you have or what gene pool
    you come from, a clean diet can reduce the appearance of cellulitis
    lymphedema. Hopefully by doing tips on top, you can do is re-apply sun screen and hope for shade.
    The needles are very thin and very short normally 4 to 6 millimeters.

    Check out my blog ... cellulitis description

  67. Thank you for this information.

  68. And i'm really thiny for nw age and looks so skinny:) so tips some powerful ideas which might help me

    Feel free to visit my web site; body fortress chocolate build muscle and weight gain dietary supplement powder

  69. I love what you guys tend to be up too. This type of clever work and
    reporting! Keep up the terrific works guys I've added you guys to

    Look into my homepage - BlackPeopleMeet browse

  70. Hey there I am so grateful I found your web site, I
    really found you by mistake, while I was
    searching on Digg for something else, Anyhow I am
    here now and would just like to say thank you for a
    fantastic post and a all round exciting blog (I also love the
    theme/design), I don't have time to look over it all at the minute but I have bookmarked it and also included your RSS feeds, so when I have time I will be back to read more, Please do keep up the fantastic work.

    Review my site - garage rubber mats

  71. No, but school/higher understanding can give the resources and training essential for you personally
    to create that right into a aspiration work. Sure, you are able to turn into
    self-taught, I myself? am a self-taught guitarist, however, you
    can not declare that schools are worthless
    (paraphrasing) because of that.

    my site premature ejaculation drugs

  72. Hey there, I think your website might be having browser
    compatibility issues. When I look at your blog site in Opera, it
    looks fine but when opening in Internet Explorer, it has some
    overlapping. I just wanted to give you a quick heads up! Other then that, superb blog!

    Feel free to visit my blog - Reebok Nano 2.0

  73. It's perfect time to make some plans for the future and it's time to be happy.

    I've read this post and if I could I desire to suggest you some interesting things or suggestions. Perhaps you can write next articles referring to this article. I wish to read more things about it!

    Feel free to visit my blog post ... horse stall mats CrossFit

  74. I've been surfing online more than three hours today, yet I never found any interesting article like yours. It's pretty worth
    enough for me. In my view, if all website owners and
    bloggers made good content as
    you did, the web will be much more
    useful than ever before.

    Feel free to visit my web site - data disaster recovery ()

  75. I visited many sites except the audio quality for audio
    songs present at this web site is genuinely marvelous.

    Also visit my web blog greenwich ct rentals

  76. I'll immediately clutch
    your rss as I can not in finding your e-mail subscription link or newsletter service. Do you've
    Please permit me recognise in order that I may just subscribe.


    Feel free to surf to my website ... singles over 50

  77. Superb blog you have here but I was wanting to know if you knew of any
    user discussion forums that cover the same topics discussed here?
    I'd really love to be a part of group where I can get comments from other experienced individuals that share the same interest. If you have any recommendations, please let me know. Bless you!

    My blog solar filterpumpe

  78. I am Dr. Jegadeesan, Having read your article regarding the difference between Personnel Management and Human
    resources management, I have some doubts regarding your explantion. Personnel, people, human resource are having the same meaning. In my opinion both are one and the same. Even in Personnel management, it deals with the industrial democracy, collective bargaining, workers participation in management, incentives and profit sharing and so on. But your article creates the assumption that HRM is the flexible one whereas the PM is the rigid one.
    Thus PM and HRM are one and the same, and only difference is the name. Hence both are dealing with the Human Factor in the organization to achieve the objectives of both

  79. thank you so much

  80. What's up to all, how is the whole thing, I think every one is getting more from this website,
    and your views are good for new users.

    Take a look at my webpage :: normal testerone levels in men by age