Understanding the Real Differences Between Personnel Management and Human Resource Management: What Sets Them Apart?

Differentiating Personnel Management and Human Resource Management

To differentiate between personnel management and human resource management based on their nature of work, it is essential to understand the focus and functions of each approach.

Personnel Management

Personnel management traditionally refers to the administrative tasks associated with managing employees, such as handling payroll, benefits, and employee relations. It often has a more reactive and administrative focus, with an emphasis on day-to-day tasks and ensuring compliance with labor laws.

Human Resource Management (HRM)

On the other hand, human resource management (HRM) takes a more strategic approach to managing people within an organization. HRM emphasizes the development of a company's most valuable asset – its employees. This approach focuses on aligning HR practices with the overall business strategy, fostering employee development and engagement, and contributing to the organization's long-term success.

Summary

In summary, while personnel management tends to focus on administrative tasks and compliance, human resource management takes a more strategic and proactive approach to managing and developing employees to drive organizational success.

In personnel management, the emphasis is on control and getting things done without having any concern for the development of the individual. On the other hand, in HIM, we take a holistic outlook. Not only are we interested in getting the best, but at the same time, we would like to invest in developing the resource as well.

While personnel management looks at employees as a cost center, HRM treats them as an asset.

The difference has been very rightly brought out by Mr. Reddy. My experience is that the HRD chief and personnel down the line in the HRD function are unable to see the line of demarcation as brought out by Mr. Reddy above. The whole function acts as a personnel department only. Even their behavior is centered on 'controlling' the workforce, enforcing the so-called policies and 'rules' of the management without any significant concern for the development of human resources.

Training: A Crucial Requirement

'Training' is a crucial requirement and activity of the HRD. Most of the time, it is not done or is sparingly done, and that too as an eye-wash. The effectiveness of the training, if imparted at all, is hardly gauged. Though this feature is emphatically included in the provisions of all standard specifications, e.g., ISO 9001, it is done halfheartedly just for the sake of records.

I wish the persons at the helm of affairs in all HRD functions take this seriously.

Regards,
Lalit Thakkar

The contrast between personnel management and human resource management is that personnel management basically deals with the employees, specifically their payroll, recruitment, and employment laws.

On the other hand, human resource management deals with the management of the workforce, training, and the general well-being of all employees.

Thanks,
Rajesh Kantubhukta

Personnel Management

Personnel Management is essentially an administrative record-keeping function at the operational level. It attempts to maintain fair terms and conditions of employment while efficiently managing personnel activities for individual departments. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will ultimately result in achieving organizational success.

Human Resource Management (HRM)

Human Resource Management is concerned with the development and implementation of people strategies integrated with corporate strategies. It ensures that the culture, values, and structure of the organization, as well as the quality, motivation, and commitment of its members, contribute fully to the achievement of its goals. HRM is concerned with carrying out the same functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training, and development. However, the HRM approach performs these functions in a qualitatively distinct way compared with Personnel Management.

Please keep sharing...

Thanks,

Rajesh Kantubhukta HR

Understanding Human Resources and Personnel Management

Human resources is said to incorporate and develop personnel management tasks while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work at a maximum level of efficiency.

Personnel Management

Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce.

Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of the overall company function.

Regards,
Rajesh Kantubhukta
Human Resources

I have never been to Kenya, so I don't know your labor laws or past happenings. But below is what could have happened in India.

Right from the 1960s, the activities coming under the purview of the HR Domain have been carried out albeit under different names. Way back then, there used to be a Time Office, which later became Labor Office and had a Labor Officer, who in today's world is typically like a Supervisor of a Contractor doing timekeeping, leave, and OT calculations, etc. Then came the Welfare Officer, who became responsible for employee welfare. In the 1980s came the concept of Personnel Management and had people like Personnel Officer/Personnel Manager. In the late 1990s came a newer concept of "HR".

With time, and with an increase in awareness/knowledge/advancements, new issues came to the fore. In line was the development in the field. As rightly said by Mr. Rajesh Kantubhukta, PM is more administrative (mundane) while HR is more on the development side. So while you have Policy, Leave, OT, Timekeeping, Compliances coming under PM... T&D, ISO compliances, Competency Mapping, BSC, Assessment Centers, EE, R&R, etc. fall in the HR domain.

Today, we have progressed a step ahead. In line with people's aspirations, there is a separate "Head" for Talent Acquisition, Talent Management, Employee Engagement, PMS, Employee Relations, Statutory Compliances, CSR... eventually all reporting to the real Head HR.

Regards