Last Updated 10 Aug 2020

Difference between personnel management and HRM

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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 (HARM) 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 he 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. Both human resource management (HARM) and personnel management focus on people management, if we examine critically, there are many differences between them.

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Some are listed below:

I) Nature of relations: The nature of relations can be seen through two different perspective views which are Pluralist and Unitarian. 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 twine management and employees are merely on contractual basis where one hires and the others perform. Whereas, HARM focuses more on Unitarian where the word "nun" refers to one and together.

Here, HARM 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 Unitarian approach which also focuses in team management and sees employees s 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 calicles wanly Involves "employees". H 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 HER managers to make collective and mutual decisions, which can benefit both the management and employees themselves.

In fact, HARM focuses more on TTS 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. It)

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. HARM 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: Koshered vision; Corporate culture and missions; trust and flexibility; and ROOM 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.

HARM, 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 sakes 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. HARM, 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 GEE.

HARM 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. Trucker (1996) calls this approach a "win-win" approach. Lb) Pay polices Ana Joy eagles: Pay polices 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 departmentally in which each Job falls into one functional department. This is merely known as division on labor based on Job needs and skill possessions and acquirement. HARM, 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.

HARM 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. Human resource management is the new version of personnel management. There is no any watertight difference between human resource management and personnel management. However, there are some differences in the following matters.

1 . Personnel management is a traditional approach of managing people in the organization.

Human resource management is a modern approach of managing people and their strengths in the organization.

2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, velveteen, motivation and maintenance of human resources in the organization.

3. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output.

4. Under personnel management, personnel function is undertaken for employee's satisfaction.

Under human resource management, administrative function is undertaken for goal achievement. Unaware personnel management, Joy eagles Is cone on ten Dash AT Loves AT loader. Under human resource management, Job design function is done on the basis of roof work/team work.

6. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.

7. In personnel management, decisions are made by the top management as per the rules and regulation of the organization.

In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc. 8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee's participation.

9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom.

10. Personnel management is a routine function. Human resource management is a strategic function.

Human resource management past and present Human resource management has changed a lot in the past 100 years. Previously, HARM was called personnel administration or personnel management, that is, it had to do with the staff or workers of an organization. It was mainly concerned with the administrative tasks that have to do with organizing or managing an organization, such as record keeping and dealing with employee wages, salaries and benefits. The personnel officer (the person in charge of personnel management) also dealt with labor relations. Such as problems with trade unions or difficulties between employers (those who employ workers) and their employees. Before we look at the role of HARM in organizations today, we will examine the way people were managed in organizations in the past. Definition Personnel Management - Personnel Management is thus basically an administrative scored-keeping function, at the operational level. Personnel Management attempts to malting Tall terms Ana controls AT employment, Wendell at ten same time, inclemently managing personnel activities for individual departments etc. Read about Evolution of Job Design

It is assumed that the outcomes from providing Justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success. Facts The U. S. Office of Personnel Management (PM) is the world's largest HER department. PM provides HER services for the federal governments workforce of nearly 2. 8 million workers. It's staff carry out the tasks to recruit, interview, and promote employees; oversee merit pay, benefits and retirement programs; and ensure that all employees and applicants are treated fairly and according to the law.

To set the COLA [cost-of-living allowances] rates, the Office of Personnel Management (PM) surveys the prices of over 300 items, including goods and services, housing, transportation, and miscellaneous expenses. PM conducts these surveys in each of the COLA areas and in the Washington, DC, area. Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

HARM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HER planning, Job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HARM approach reforms these functions in a qualitatively DISTINCT way, when compared with Personnel Management.

Main Differences between Personnel Management and HARM

HARM has a long history of growing from a simple welfare and maintenance function to that of a board level activity of the companies.

In recent years, the focus on people management from human capital/intellectual capital perspective is also shaping firmly. However, the hard fact is that this growth can be generally witnessed in management literature and rarely in practice. Peripheral observation of people management in organization can mislead the observers since, hardly there could be NY organization that is yet to rename its old fashioned title of industrial relations/ personnel/welfare/administration department into HARM department.

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Difference between personnel management and HRM. (2018, Feb 25). Retrieved from https://phdessay.com/difference-between-personnel-management-and-hrm/

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