Human Resource Management

v/s
Personnel Management

Prepared By:
Sachin Gupta
1D - 48
What PM is?

 Administrative record-keeping function, at the operational level.

 Attempts to maintain fair terms and conditions of employment,

while at the same time, efficiently managing personnel activities
for individual departments etc.

 Assumption in a personnel dept: outcomes from providing

justice and achieving efficiency in the management of personnel
activities results in achieving organizational success.
What HRM is?
 Concerned with the development and implementation of people
strategies, which are integrated with corporate strategies

 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.

 Carries out the same functional activities traditionally performed

by the personnel - 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.
HRM v/s PM main differences
 PM: workforce centered , directed mainly at the organization’s
employees (finding and training them, arranging for them to be
paid, explaining management’s expectations, justifying
management’s actions )
HRM: resource –centered, directed mainly at management (relegate
the responsibility of HRM to line management, management
development) 

 PM: Never totally identified with management interests, unable to

understand and articulate the aspirations and views of the workforce
HRM: More inclined towards development of employees.
HRM v/s PM main differences
 PM: maintenance of personnel and administrative systems
HRM: forecasting of organizational needs, the continual
monitoring and adjustment of personnel systems to meet
current and future requirements, and the management of
change

 PM: An operational function, concerned primarily with carrying

out the day-to day people management activities.
HRM : strategic in nature, being concerned with directly
assisting an organization to gain sustained competitive
advantage.
HRM v/s PM general differences
 PM: Careful delineation of written contracts
HRM: Aim to go ‘beyond contracts’

 PM: Importance of devising clear rules/mutuality

HRM: ‘Can-do’ outlook; impatience with ‘rule’

 PM: Task- Monitoring

HRM: Task-Nurturing

 PM: Key relations: Labour Management

HRM: Key relations: Customer

 PM: Slow decision

HRM: Fast decision.
HRM v/s PM general differences
 PM: Personnel/IR Specialists
HRM: General/business/line managers

 PM: indirect communication

HRM: direct Communication

 PM: Prized management skills-Negotiation

HRM: Prized management skills-Facilitation

 PM: Labour Management-Collective bargaining contracts

HRM: Towards individual contracts

 PM: Division of Labour

HRM: Teamwork.