Administrative discipline of hiring and developing employees so that they become more valuable to

the organization. It includes (1) conducting job analyses, (2) planning personnel needs, and recruitment, (3)
selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries,
(6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with
all employees at all levels.

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HR Development Versus Personnel Management: What's the difference?


Definitions
Personnel Management - Personnel Management is thus basically an administrative recordkeeping 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 organisational 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 organisation, 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 organisations employees; such as finding and
training them, arranging for them to be paid, explaining managements expectations, justifying managements actions etc.
While on the other hand, HRM is resourcecentered, 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 organisation 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 organisational
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
No. Dimension Personnel Management Human Resource Development
Beliefs & Assumptions
1 Contract Careful delineation of written contracts Aim to go beyond contracts
2 Rules
Importance of devising clear
rules/mutuality Can-do outlook; impatience with rule
3 Guide to management Action Procedures Business need
4 Behaviour Referent Norms/custom & practice Values/Mission
5
Managerial Task vis--vis
Labour Monitoring Nurturing
6 Nature of Relations Pluralist Unitarist
7 Conflict Institutionalised De-emphasised
STRATEGIC ASPECTS
8 Key Relations Labour Management Customer
9 Initiatives Piecemeal Integrated
10 Corporate Plan Marginal to Central to
11 Speed of Decision Slow Fast
LINE MANAGEMENT
12 Management Role Transactional Transformational leadership
13 Key Managers Personnel/IR Specialists General/business/line managers
14 Communication Indirect Direct
15 Standardisation High (e.g. parity an issue) Low (e.g. parity not seen as relevant)
16 Prized management skills Negotiation Facilitation
KEY LEVERS
17 Selection Separate, marginal task Integrated, key task
18 Pay Job Evaluation (fixed grades) Performance related
19 Conditions Separately negotiated Harmonisation
20 Labour Management Collective bargaining contracts Towards individual contracts
21 Thrust of relations
Regularised through facilities &
training
Marginalised (with exception of some bargaining for change
models)
22 Job categories & grades Many Few
23 Communication Restricted flow Increased flow
24 Job Design Division of Labour Teamwork
25 Conflict Handling Reach temporary truces Manage climate & culture
26 Training & Development Controlled access to courses Learning companies
27
Foci of attention of
interventions Personnel procedures Wide ranging cultural, structural & personnel strategies

Personnel management is the specialist branch of management which is responsible for matters
related to the employment and regulation of employees and workers . According to the
Institute of Personnel Management, personnel management is "that part of management
concerned with people at work and with their relationships within an enterprise." Personnel
management involves three distinct activities: employee resourcing, employee development and
employee relations. Taking these in turn, employee resourcing is concerned with how people are
recruited and then used by the employing organisation, and thus involves activities such as
recruitment and selection , drawing up contracts of employment , arranging or advising on
working patterns, including flexible working patterns , job analysis, health and safety, equal
opportunities and the termination of the employment contract. Resourcing thus involves
knowledge of employment legislation, as well as the staffing needs of the organisation.
Employee development is principally concerned with the training of employees, including
managers; such training programmes may be run in-house - employee induction, for example -
or externally. Performance appraisal and assessment are also part of the employee development
function. Finally, employee relations is concerned with consultation and negotiation with
employees and their representatives, principally trade unions where these are recognised.
Personnel management in large organisations is now considered to be a highly professional
activity, and would generally be carried out by a specialist personnel manager or department. In
smaller companies in the private sector, however, these activities may be left to line
management. Many personnel managers, especially in large companies, tend to have
professional qualifications, for example, membership of the Institute of Personnel Management;
however, it is not known what proportion of personnel managers in Ireland have this or
equivalent qualifications.
In some organisations, the task of personnel management has become known as human
resource management (HRM); there is considerable debate about the extent of any difference
between HRM and personnel management.