What Is HR and HRM
Human Resource Management, to elaborate further it is nothing but what we call the HR 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 an organization that concentrates on recruiting employees, managing them and directing them for the growth of both the employees and the organization. A human resource that is termed as the most important resource for the development of any organization can help the organization grow and develop well. Hence recruiting appropriate staff, maintaining and managing them and then finally guiding them in the right direction is the most important task of the HR team of any organization. Let us try to understand the term HR and HRM first a little better with the help of definitions and their meanings.
It is not possible to get a precise definition for the term HR and HRM; I have three different definitions for you in order to explain that you can understand HR and its functions, however, cannot explain it precisely, well the meanings are more or less the same.
- Michael J. Jucius explains HR 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 3 important sections-intellectual capitals, social capital, and emotional capital. Intellectual capital consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learning capacity. Social capital is made up of a network of relationships, sociability, and trustworthiness. Emotional capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience.”
… Sumantra Ghosal mean 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, the social capital, and the emotional capital, which has been explained as
- Intellectual capital comprises of 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.
- Whereas their emotional capital consists of their ability to bear and manage risk, self-confidence, courage to face and handle situations, and ambitiousness and flexibility.
- Leon C. Megginson defined human resource 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 HR 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 mean and focus only on one aspect: the qualitative and quantitative abilities of the employees working in any organization or company.
Difference Between HRM and Personnel Management
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, maintenance, 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, occurrences, and disconnection of human resources till the end that the employee, organization, and social objective accomplishments are planned, organized, directed and controlled.
- The National Institute of Personnel Management (NIPM) of India defines a human resource as “that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together 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 of working groups, to enable them to make their best contribution to its success”.
… The NIPM or the National Institute of Personnel Management says that HRM is a part of management concerned with the employees of the organization 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 along with their well being and the forming groups to make sure they pitch into the organisation’s successful growth.
- Decenzo and Robbins want to say that “HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of 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, business-government companies.
You can also define HRM in simple words: HRM is a system that very artistically manages people working in a company to perform well and give their best performance to the organization to achieve organizational goals set by the organization.
- Terry R George says that “Personnel management is concerned with the obtaining and maintaining of a satisfactory and 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 in order 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 of promoting and stimulating every employee to make the fullest contribution to the purpose of the business.”
… H. N. North Scott says to achieve the employee’s maximum contribution to meet the organizational goals, the company needs to extend general manager to promote and stimulate each and 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 is a way of managing and utilizing labour skills in such a way that it can meet the organisation’s goals effectively.
In short, personnel management is concerned with the employees of the organization, with its personnel policies, a coordinate environment at the workplace, make sure that the good work is maintained and ensures individual, social and economic satisfaction.
HRM vs Personnel Management Infographics
Key Difference between HRM vs Personnel Management
Below are the lists of points, describe the key differences between HRM vs Personnel Management:
With the help of the above definitions and explanations given by experts, I wanted you to understand the concept of HR, HRM, vs Personnel Management better. People feel and believe that HRM vs Personnel Management is 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 vs Personnel Management has two different explanations; in fact, HRM is an advanced form of Personnel Management. Let’s see how HRM vs Personnel Management is different from each other.
- Personnel management is a little old and a more traditional way of handling employees at a workplace, whereas HRM is a more modern and more specific approach to managing human resources in an organization.
- Their focuses are different; for example, Personnel Management focuses on the administration of the organization along with the welfare of employees and maintaining relationships with the labor. However, HRM concentrates on maintaining human resources by acquiring, developing and motivating them.
- Both HRM vs Personnel Management assumptions also differ; personnel management assumes that, unlike other resources, even HR is an input to achieve the desired output for the company; however, as per HRM, human resource is the most important and the most valuable resource to help you achieve the desired organizational goals.
- As per personnel management, employee satisfaction is achieved by personnel functions, and as per HRM organizational goals are achieved by administrative functions.
- In personnel management, job distribution and allocation are done by dividing job amongst labor or amongst the employees; however, as per HRM, the job is designed and distributed amongst groups and amongst 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 of taking decisions alone under the set rules and regulations of the organization; however, HRM believes in taking decisions collectively after considering the employee participation, decentralization, authority and the competitive environment in the organization, etc.
- The aim of personnel management has much refrained; it aims only on increasing their business in terms of production; however, HRM aims and manages collectively the employee participation, increasing its productivity, the work culture of the company or the organization and its effectiveness on both HRM vs Personnel Management employees and the organization.
- Personnel management also has very limited 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.
- Personnel management functions are very routine, whereas the functions of HRM are very strategic as it is based on a number of strategies.
- Personnel management focuses on dealing with the employees within the organization; however, HRM focuses on utilizing the HR of the organization in the best possible way.
- For personnel management, HR is like any other tool of the organization; however, for HRM, employees are the best available asset of the organization 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 the 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 as per their job evaluations; however, in HRM, the company pays the employee 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 unharmed and intact.
There is a very fine line between the two HRM vs Personnel Management. After putting a number of analyses to use and finally developing personnel management into HRM, the fine differences have been taken into consideration. You may also look at the following articles to learn more –