Updated April 19, 2023
What is HR and HRM?
Human Resource Management, to elaborate further, 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, managing, and directing them for the growth of both the employees and the organization. A human resource that is termed 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 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 terms 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 to explain so that you can understand HR and its functions; however, I cannot explain them 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.”
HR means Human resource consists of mutually dependent, related, and intermingling ethical, physiological, psychological, and sociological elements. Sumantra Ghosal believes “human resources of the organization are the human capital. The expert has divided human capital into 3 important sections: intellectual, social, and emotional. Intellectual capital comprises 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.”
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 that HRM is the development of integrated compensation procurement, occurrences, and disconnection of human resources till the end, that the employee, organization, and objective social accomplishments are planned, organized, directed, and controlled.
HRM vs Personnel Management Infographics
Below are the top 7 infographics on HRM vs Personnel Management, which throws light on major differences between HRM and Personnel Management.
Key Differences between HRM vs Personnel Management
Below are the lists of points that describe the key differences between HRM and Personnel Management:
With the help of the above definitions and explanations given by experts, I wanted you to understand better the concept of HR, HRM, vs. Personnel Management. 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. In contrast, HRM is a more modern and specific approach to managing human resources in an organization.
- Their focuses are different; for example, Personnel Management focuses on the organization’s administration, employees’ welfare, and maintaining relationships with the laborers. However, HRM emphasizes keeping resources human 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 performed by administrative procedures.
- 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 excellent training and development opportunities; they restrict the employees to minimum training and development opportunities, whereas HRM believes in giving the employees the chance 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 employee participation, decentralization, authority and the competitive environment in the organization, etc.
- The aim of personnel management has much refrained; it aims only to increase their business in terms of production; however, HRM aims and manages employee participation collectively, increasing its productivity, the work culture of the company or the organization, and its effects on both HRM vs. Personnel Management employees and the organization.
- Personnel management also has minimal 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 organization’s HR in the best possible way.
- For personnel management, HR is like any other organization tool; however, for HRM, employees are the best available asset to lead the organization toward 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 creating 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 employee basis their performance.
- Personnel Management treats the employees like other resources with no feelings and unique skills to perform their jobs; however, in HRM, employees are treated sensitively, keeping their egos, emotions, and feelings unharmed and intact.
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