This
difference can be described as philosophical. Personnel management is more
administrative in nature, dealing with payroll, complying with employment law,
and handling related tasks. Human resources, on the other hand, is responsible
for managing a workforce as one of the primary resources that contributes to
the success of an organization
People
Management
In nineteenth century People Management Originated in the UK amongst the
first Industrial Revolution. Factory acts of 1840 which gave factory owners to
consider the well-being of their employees. This enlightened capitalists such
as Rowntree and Cadbury to appoint ‘welfare officers’ to monitor and improve
the conditions of their employees.
Another part of people management has evolved with the rise of industrial
trade unionism in the twentieth century that of negotiating and communicating
with the representatives of the workforce.
By the 1970 a fairly consistent set of activities and roles had developed
for people management. Such as recruitment and selection, training and
development and employee retirement.
Peter Drucker (1955) said that,
‘Personnel
administration’ as he called it was just a set of unrelated, albeit individual
important, activities.
The Development of Human Resource
Management
Term HRM
originated in manufacturing industry in the USA during late 1970 and early
19080s.
A
number of factors led to this new management thinking, principally loss of
faith in the traditional approach to mass production, the example of Japanese
work organization and manufacturing processes, and the realization of the
impact of new technology on work practices (Gallie et al, 1998).
Technology
also played a part in shifting managerial concern towards human resource
management from people management. Rapidly increasing technologies in the
market meant organizations has to imply the need of continues learning by
employees. And the organization has to provide the necessary investment in
changing and upgrading skills. With this advancing technology competitive
advantage came from human resources and not from capital investment. And it was
not enough to manage people reactively so therefore managers has to approach
strategically and proactively if the organization to be successful.
Why
HRM regarded as superior to peoples management
- · HRM act as a proactive way rather than reactive ways in peoples management
- · HRM strategy would be intimately linked to, and consciously supportive of overall business and corporate strategies
Following is a comparison between personnel
management and HRM against different traits used by Surbhi (2015)
BASIS FOR COMPARISON
|
PERSONNEL MANAGEMENT
|
HUMAN RESOURCE MANAGEMENT
|
Definition
|
The aspect of management that is
concerned with the work force and their relationship with the entity is known
as Personnel Management.
|
The branch of management that focuses on
the most effective use of the manpower of an entity, to achieve the
organizational goals is known as Human Resource Management.
|
Approach
|
Traditional
|
Modern
|
Treatment of manpower
|
Machines or Tools
|
Asset
|
Type of function
|
Routine function
|
Strategic function
|
Basis of Pay
|
Job Evaluation
|
Performance Evaluation
|
Management Role
|
Transactional
|
Transformational
|
Communication
|
Indirect
|
Direct
|
Labor Management
|
Collective Bargaining Contracts
|
Individual Contracts
|
Management Actions
|
Procedure
|
Business needs
|
Decision Making
|
Slow
|
Fast
|
Job Design
|
Division of Labor
|
Groups/Teams
|
Focus
|
Primarily on mundane activities like
employee hiring, remunerating, training, and harmony.
|
Treat manpower of the organization as
valued assets, to be valued, used and preserved.
|
Table: Comparison Chart (Surbhi, 2015)
Conclusion:
During this study it can be said that the HRM is an improved version of personal management which eradicate the shortcoming of personal management. As mentioned earlier to gain competitive advantage organization has to manage its human resources carefully to attain the common goal.
References
Franklyn, C. (2019). The
development of human resource management from a historical perspective and its
implications for the human resource manager”, in Strategic Human Resource
Management at Tertiary Level. [ebook] pp.87-101. Available at:
https://www.researchgate.net/publication/234017585_THE_DEVELOPMENT_OF_HUMAN_RESOURCE_MANAGEMENT_FROM_A_HISTORICAL_PERSPECTIVE_AND_ITS_IMPLICATIONS_FOR_THE_HUMAN_RESOURCE_MANAGER
[Accessed 14 Jun. 2019].
Henderson, I.,2011. Human
Resource Management for MBA Students 2nd Edition. Human Resource Management for MBA Students 2nd
Edition.
S, S. (2019). Difference
Between Personnel Management and Human Resource Management (with Comparison
Chart) - Key Differences. [online] Key Differences. Available at:
https://keydifferences.com/difference-between-personnel-management-and-human-resource-management.html
[Accessed 14 Jun. 2019].
Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization. 3. Personnel management assumes people as a input for achieving desired output.
ReplyDeletePersonnel management assumes people as a tool where Human resource management treat them as assets.
DeletePersonnel management vs human resource management. The main difference between Personnel Management and Human Resource Management lies in their scope and orientation. While the scope of personnel management is limited and has an inverted approach, wherein workers are viewed as tool.
ReplyDeleteAgree with you it is one of the main differences between the two styles.
DeleteThe main difference between Personnel Management and Human Resource Management lies in their scope and orientation. While the scope of personnel management is limited and has an inverted approach, wherein workers are viewed as tool. Here the behavior of the worker can be manipulated as per the core competencies of the organization and are replaced when they are worn-out.
ReplyDeleteHuman 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.
ReplyDeletePersonnel are those who are employed in the workplace. Personnel management is an administrative function which exists in an organization to ensure right personnel at right organizational activity. It is a traditional approach of managing employees which focuses on adherence to policies and rules of organization. Personnel management is concerned with planning, job analysis, recruitment and performance appraisal along with training and compensation management. Personnel management also focuses on managing labor relationship by handling employee grievances.
ReplyDeleteThe primary distinction between Personnel Management and Human Resource Management lies in their degree and direction. While the extent of faculty the executives is restricted and has a rearranged methodology, wherein laborers are seen as apparatus. Here the conduct of the specialist can be controlled according profoundly skills of the association and are supplanted when they are exhausted.
ReplyDeleteAgreed
DeletePersonnel 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. ... However, HRM concentrates on maintaining human resources by acquiring, developing and motivating them
ReplyDeleteIn the modern world well equipped Human resource is the most vital asset for a organization to have because it is harder to imitate for competitors.
DeleteThe personnel management approach also concerns itself with establishing rules, policies, procedures, and contracts, and strives to monitor and enforce compliance to such regulations, with careful delineation of written contract.
ReplyDeleteThe human resource management approach remains impatient with rules and regulations. HR managers tend to relax rules based on business needs and exigencies, and aim to go by the spirit of the contract rather than the letter of the contract. 😊
The aspect of management that is concerned with the workforce and their relationship with the organization is also known as personnel management, and the management aspect that focuses on the effective use of manpower in achieving organizational goals is known as human resource management.
ReplyDeleteHuman resource management can be simply defined as an extension to traditional personnel management concepts.
ReplyDeletePersonnel management mainly focuses on managing relationships with employees by maintaining employee complaints.
HRM refers to managing human assets by developing, training and caring for them in all kinds of HRM activities.
HRM plays a bigger role than personnel management. It is all about managing people.
ReplyDeletePersonnel 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
ReplyDeleteis it useful for current situation?
ReplyDelete