DIFFERENCE BETWEEN PERSONNEL MANAGEMENT(PM) & HUMAN RESOURCE MANAGEMENT(HRM)- HUMAN RESOURCE MANAGEMENT THEORY



DIFFERENCE BETWEEN PERSONNEL MANAGEMENT & HUMAN RESOURCE MANAGEMENT
BY
SMART LEARNING WAY

Contents 

Introduction to Personnel Management
Introduction to Human Resource Management
Meaning of Personnel Management
Meaning of Human Resource Management
Difference between PM & HRM
Conclusion 

Introduction to Personnel Management

PM is a part of the Management. This part is concerned with people and their relationship within an Organization.

PM is a continuous and never ending process.

PM is a responsibility of all line managers and it is a function of all Staff managers in an organization.

PM is concerned mostly with managing Human Resources at work.

PM is also variously known as Labour relation, Labour welfare Management, Manpower Management, etc.

Introduction to HRM

HRM is relatively new and developed as a part of Management, concerned with the Management of Human Resource.

HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements.

HRM is the central sub – system of an Organization.

HRM permeates all type of functional Management. Such as :-
                    
- Production Management,
                   
 - Marketing Management, &
                  
  - Financial Management

Meaning of Personnel Management

PM is a responsibility of those who manage people as well as being a description of the work of those who are employed as specialists.

PM is that part of Management which is concerned with people at work and their relationship within an enterprise.

PM applies not only to industries and commercial organization but to all fields of  employment.

Meaning of HRM

HRM is the recruitment, selection, development, utilization and accommodation of HR by an Organization.
The HR of an Organization consist of all individual regardless of their role who are enjoyed and engaged in any of an Organizational activities.

HRM is a Management which manages the human resources of an enterprise such as knowledge, skills, creative abilities, talent & aptitudes by training, development, procurement, recruitment, selection, etc. With the objective of achieving goals of the enterprise.

Difference between Personnel Management & Human Resource Management

PM
1) Personnel Management is the Management of the employed people.
2)In PM, communication is indirect.

HRM
1)HRM is the Management of employees’ skills, knowledge, abilities, talents, aptitudes, creative abilities, etc.
2)In HRM, communication is direct.

PM
3) Employee in PM is mostly treated as an economic man as his services are exchanged for wage and salary.

HRM
3) Employee in HRM is treated not only as economic man but also as social & psychological man. Thus the complete man is used under this approach.

PM
4) In PM, employee is treated as a commodity or tool or equipment which can be purchased and used.
5) In PM, there are careful delineation of written contracts.

HRM
4) In HRM, employee is treated as a resource.
5) In HRM, they aim to go beyond the contracts.

PM
6) In PM, employees are treated as cost centre and therefore Management controls the cost of labour.

HRM
6) In HRM, employees are treated as profit centre and therefore Management invests capital for human resource development and future utility.

PM
7) In PM, employees are used mostly for the organizational benefit.

HRM
7) In HRM, employees are used for the multiple mutual benefit of the organization, employees and their family members.

PM
8) PM is treated as only an auxiliary function.
9) PM, gives importance of devising clear rules.
10) PM, guides to Management action through procedures.

HRM
8) HRM is a strategic Management function.
9) HRM, can do outlook, impatience with rules.
10) HRM, guides to Management action according to business needs.

PM
11) In PM, norms, customs and practices are considered as behavior referent.
12) In PM, monitoring is considered as managerial task.

HRM
11) In HRM, values and missions are considered as behavior referent.
12) In HRM, nurturing is considered as managerial task.

PM
13) PM, keeps key relations with labour Management.
14) In PM, the initiatives are piecemeal.
15) In PM, speed of decision is slow.

HRM
13) HRM, keeps key relations  with customers.
14) In HRM, the initiatives are integrated.
15) In HRM, speed of decision is fast.

PM
16) In PM, Management role is in transactional form.
17) In PM, negotiation is considered as prized Management skill.

HRM
16) In HRM, Management role is in transformational form
17) In HRM, facilitation is considered as prized Management skill.

PM
18) In PM, selection is done separately & by marginal task.
19) In PM, pay is done by job evaluation i.e. on fixed grades.
20) In PM, conditions are separately negotiated.

HRM
18) In HRM, selection is integrated & it is done by key task.
19) In HRM, pay is done related to performance.
20) In HRM, conditions are harmonization.

PM
21) In PM, labour Management is done by collective bargaining contracts.
22) In PM, there are many job categories & grades.

HRM
21) In HRM, labour Management is done by  individual contracts.
22) In HRM, there are few job categories & grades.

PM
23) In PM, job design is done by division of labour.
24) In PM, conflict is done by reach temporary truce.
25) In PM, interest of the organization are uppermost.

HRM
23) In HRM, job design is done by team work.
24) In HRM, conflict is done by managed climate and culture.
25) In HRM, there is mutuality of interest.

PM
26) In PM, training & development are done for controlled access to courses.
27) In PM, there are personnel procedures for interventions.

HRM
26) In HRM, training & development are done for learning of the companies.
27) In HRM, there are wide ranging cultural, structural & personnel strategies for interventions.

PM
28) In PM, labour is treated as a tool which are expendable and replaceable.
29) In PM, locus of the control is external.
30) PM is a narrow concept.

HRM
28) In HRM, people are treated as an asset to be used for the benefit of an organization
29) In HRM, locus of the control is internal.
30) HRM is a wide/ broad concept.

PM
31) In PM, organizing principles are mechanistic, top-down & centralized.
32) PM is now onwards consider as a sub part  of the HRM.

HRM
31) In HRM, organizing principles are organic, bottom-up, & decentralized.
32) HRM is now onwards consider as main part.

PM
33) PM, is never considered as a part of the strategic Management of business.
34) PM is an old orthodoxy.

HRM
33) HRM is always considered as a part of the strategic Management of business.
34) HRM is a new orthodoxy.

PM
35) PM includes salary & wage administration, time keeping system, attendance, canteen, labour welfare, statutory requirements, badlee workers, etc.

HRM
35) HRM includes HRP, recruitment, selection, training, job analysis, job design, HRD, placement, induction, performance appraisal, goal setting, goal appraisal, PM, etc.

Conclusion

PM & HRM are two different concepts.

In ancient times in India there was nothing like HRM, there was only PM concept.

HRM came into consideration from 19th century. where as PM was taken into consideration since ancient times.

Thus, PM is considered as an old orthodoxy & HRM is considered as new orthodoxy.

Now HRM is consider as main part & Personnel Management is consider as a part there of. Being a new concept also, HRM is consider wider and broad compare to PM.

Thus PM is now consider as narrow concept.

After the existence of HRM, people came to know the difference between PM & HRM.

Bibliography
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