Introduction to HRM and Personnel Management
Human Resource Management, to elaborate further, is nothing but what we call the H.R. 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 any organization that concentrates on recruiting employees, managing them, and directing them for the growth of the employees and the organization. Therefore, human resources are termed the most important resource for the development of any organization and can help the organization grow and develop well.
Hence, recruiting appropriate staff, maintaining and managing them, and finally guiding them in the right direction is the most important task of the H.R. team of any organization. So let us try to understand the terms H.R. and HRM first a little better with the help of definitions and their meanings.
Definition of H.R.
It is impossible to get a precise definition for the term H.R. and HRM; I have three different definitions for you to explain that you can understand H.R. and its functions; however, I cannot explain them precisely; well, the meanings are more or less the same.
- Michael J. Jucius explains H.R. as “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components.”
…He means Human Resource consists of a mutually dependent, related, and intermingling ethical, physiological, psychological, and sociological element.
- Sumantra Ghosal believes “human resources of the organization are the human capital. The expert has divided human capital into three important sections: intellectual, social, and emotional. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learning capacity. Social capital comprises a network of relationships, sociability, and trustworthiness. Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience.”
… Sumantra Ghosal means and rates the human resource of any company needs to manage the human capital of that company and has also divided this capital into three very important and relevant sections such as intellectual capital, social capital, and emotional capital, which has been explained as
- Intellectual capital comprises expertise of different knowledge and skills such as specialized know-how, tactical know-how, various skills, managing complex situations, etc. It also includes a capacity for learning.
- Social capital includes trustworthiness, developing a network of relationships, and conviviality.
- Their emotional capital consists of their ability to bear and manage risk, self-confidence, courage to face and handle a situation, and ambition and flexibility.
- Leon C. Megginson defined human resources as “From the national point of view human resources are knowledge, skills, creative abilities, talents, and attitudes obtained in the population; whereas from the viewpoint of the individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees.”
… This expert focuses on H.R. from a nation’s point of view. He says that human resource is a population that has skills, creativity, ability, talent, and the attitude obtained by the population; however, from the point of view of an organization, this multi-talented resource of the company inherits gained and learned knowledge, practiced skills in the talents displayed by them, potentials along with the employee’s aptitude.
All the above definitions and experts focus only on one aspect: the qualitative and quantitative abilities of the employees working in any organization or company.
Definition of HRM
Let us understand HRM as it is a process of making the right effective and efficient use of human resources to achieve organizational goals. With the help of a few definitions given below, you can understand HRM better:
- Flippo says, “human resource management is the planning, organizing, directing and controlling of the procurement development compensation integration, 4intenance, and separation of human resources to the end that individual, organizational and social objectives are accomplished”.
… Flippo explains the HRM is the development of integrated compensation procurement, 4occurrences, and disconnection of human resources till the end that the employee, organization, and objective social accomplishments are planned, organized, directed, and controlled.
- The National Institute of Personnel Management (NIPM) of India defines human resources as “that part of management concerned with people at work and their relationship within an enterprise. It aims to unite and develop into an effective organization of the men and women who make up an enterprise and having regard for the well-being of the individuals and working groups, to enable them to make their best contribution to its success”.
… The NIPM or the National Institute of Personal management says that HRM is a part of management that is concerned with the organization’s employees and the relationships they maintain within the company. It also focuses on developing a healthy work atmosphere of men and women working towards making the company and their well-being and forming groups to ensure they pitch into the organization’s successful growth.
- Decenzo and Robbins want to say, “HRM is concerned with the people dimension in management. Since every organization comprises people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the organization-government, business, education, health, recreation, or social action”.
… They confirm that Human Resources Management manages the dimension of people working in the organization for every company is made up of people and by people utilizing their expert services, enhancing their skills, inspiring them to perform better and making sure that they maintain their commitment levels towards the company to achieve the objectives of the organization. This applies to all social actions, education, health, recreation, and business government companies.
You can also define HRM in simple words: HRM is a system that very artistically manages people working in a company so that they perform well and give their best performance to the organization to achieve its goals.
- Terry R George says, “Personnel management is concerned with obtaining and maintaining a satisfied workforce.”
… According to the expert, personal management is focused on attaining and sustaining a group of employees who are happy and content with the organization, its management to work well and give the organization their best performance to achieve organizational goals
- According to H.N. North Scott, “Personnel management is an extension of general management that promotes and stimulates every employee to make the fullest contribution to the purpose of the business.”
… H. N. North Scott says to achieve the maximum contribution of the employee to meet the organizational goals,, the company needs to extend general management to promote and stimulate every employee working for the organization.
- Paul G. Hastings explains Personnel Management is that aspect of management having as its goal the effective utilization of the labor resources of an organization”.
… The above explanation states that personnel management effectively manages and utilizes labor skills to meet the organization’s goals.
In short,, personnel management is concerned with the organization’s employees, its personnel policies, coordinating the workplace environment, ensuring that good work is maintained,, and ensuring individual, social and economic satisfaction.
Difference between HRM and Personnel Management
With the help of the above definitions and explanations given by experts, I wanted you to understand the concept of H.R., HRM, and Personnel Management better. People feel and believe that HRM and Personnel Management are the same, just that they are two different words with one single explanation; however, that not true. There is a difference between the two as HRM and Personnel Management have two different explanations; in fact, HRM is an advanced form of Personnel Management. Let’s see how the two are different from each other.
- Personnel management is a little old and a more traditional way of handling employees at the workplace. In contrast, HRM is a more modern and specific approach to managing an organization’s human resources.
- Their focuses are different. For example,, Personnel Management focuses on the organization’s administration, the welfare of employees, and maintaining relationships with the labor. However, HRM emphasizes maintaining human resources by acquiring, developing, and motivating them.
- Both their assumptions also differ; personnel management assumes that, unlike other resources, even H.R. is an input to achieve the desired output for the company; however, as per HRM, human resource is the most important and valuable resource to help you achieve the desired organizational goals.
- As per personnel management, employee satisfaction is achieved by personnel functions, and administrative functions achieve HRM organizational goals.
- In personnel management, job distribution and allocation are done by dividing jobs amongst labor or employees; however, as per HRM, the job is designed and distributed amongst groups and teams as per their skills and expertise.
- The two terms have a huge gap in their understandings. For example,, personnel management does not provide the employees with great training and development opportunities; they restrict the employees to minimum training and development opportunities; whereas HRM believes in giving the employees the opportunity of growing and developing by giving them more and more training and development opportunities to help them and the organization grow and reach the organizational goals.
- Personnel management draws a line between the top management and the other employees by giving them the authority to make decisions alone under the set rules and regulations of the organization; however,, HRM believes in making decisions collectively after considering the employee participation, decentralization, authority,, and the competitive environment in the organization, etc.
- The aim of personnel management largely refrains; it aims only to increase their business in terms of production; however, HRM aims and manages employee participation, increasing productivity, the work culture of the company or the organization, and its effects on both the employees and the organization collectively.
- Personnel management also has very few concerns as this system is related only to the top management and personnel managers;; however, the HRM is concerned with the managers at all levels and all departments.
- The functions of personnel management are very routine, whereas the functions of HRM are very strategic as it is based on several strategies.
- Personnel management focuses on dealing with the employees within the organization; however,, HRM focuses on utilizing the H.R. of the organization in the best possible way.
- For personnel management, H.R. is like any other organization tool; however, for HRM, employees are the best available asset to lead the organization towards its goals.
- HRM is a revised and more advanced version of Personnel Management.
- Personnel Management is very slow in making decisions, whereas HRM is much faster in making and implementing its decisions.
- In Personnel Management, the union leader comes into the picture, for the bargaining is done collectively with the union; however, in HRM, the company has separate contracts with the employees; hence union is required.
- Personnel Management pays the employees their salaries per their job evaluations; however, in HRM, the company pays the employees basis their performance.
- Personnel Management treats the employees like other resources with no feelings and special skills to perform their jobs; however, in HRM, employees are treated sensitively, keeping their ego, emotions, and feelings undamaged and intact.
There is a very fine line between the two HRM and Personnel Management. After putting several analyses to use and developing personnel management in HRM, the subtle differences have been considered.
This is a guide to HRM and Personnel Management. Here we discuss the definitions, meanings, and differences between both terms. You may also have a look at the following articles to learn more –