Human Resource Development & Personnel Management

Updated: 5 months ago
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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

S. No.

Dimension

Personnel Management

Human Resource Development

Beliefs & Assumptions

Contract

Careful delineation of written contracts

Aim to go ‘beyond contracts’

Rules

Importance of devising clear rules/mutuality

Can-do’ outlook; impatience with ‘rule’

Guide to management Action

Procedures

Business – need’

Behavior Referent

Norms/custom & practice

Values/Mission

Managerial Task vis-à-visLabour

Monitoring

Nurturing

Nature of Relations

Pluralist

Unitarist

Conflict

Institutionalized

De-emphasized

STRATEGIC ASPECTS





Key Relations

Labour Management

Customer

Initiatives

Piecemeal

Integrated

Corporate Plan

Marginal to

Central to

Speed of Decision

Slow

Fast






LINE MANAGEMENT

Management Role

Transactional

Transformational leadership

Key Managers

Personnel/IR Specialists

General/business/line managers

Communication

Indirect

Direct

Standardization

High (e.g. ‘parity’ an issue)

Low (e.g. ‘parity’ not seen as relevant)

Prized management skills

Negotiation

Facilitation

KEY LEVERS

Selection

Separate, marginal task

The integrated, key task

Pay

Job Evaluation (fixed grades)

Performance-related

Conditions

Separately negotiated

Harmonization

Labour Management

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

Many

Few

Communication

Restricted flow

Increased flow

Job Design

Division of Labour

Teamwork

Conflict Handling

Reach temporary truces

Manage climate & culture

Training & Development

Controlled access to courses

Learning companies

Foci of attention of interventions

Personnel procedures

Wide-ranging cultural, structural & personnel strategies

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