Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments, etc. 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.
Human Resource Development - 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.
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, etc. But, the HRM approach performs these functions in a qualitatively DISTINCT way, when compared with Personnel Management.
Main Differences between Personnel Management and HRM
Personnel management is workforce-centered, directed mainly at the organization’s employees; such as finding and training them, arranging for them to be paid, explaining management’s expectations, justifying management’s actions etc. While on the other hand, HRM is resource–centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc.
Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.
Personnel Management is basically an operational function, concerned primarily with carrying out the day-to-day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.
27 Points of Difference between Personnel Management & HRD
Human Resource Development
Beliefs & Assumptions
Careful delineation of written contracts
Aim to go ‘beyond contracts’
Importance of devising clear rules/mutuality
Can-do’ outlook; impatience with ‘rule’
Guide to management Action
Business – need’
Norms/custom & practice
Managerial Task vis-à-visLabour
Nature of Relations
Speed of Decision
High (e.g. ‘parity’ an issue)
Low (e.g. ‘parity’ not seen as relevant)
Prized management skills
Separate, marginal task
The integrated, key task
Job Evaluation (fixed grades)
Collective bargaining contracts
Towards individual contracts
Thrust of relations
Regularized through facilities & training
Marginalized (with exception of some bargaining for change models)
Job categories & grades
Division of Labour
Reach temporary truces
Manage climate & culture
Training & Development
Controlled access to courses
Foci of attention of interventions
Wide-ranging cultural, structural & personnel strategies