Difference Between Similar Terms and Objects

Difference Between HRM and Personnel Management

Both HRM and personnel management play crucial roles in managing an organization’s workforce. HRM is more strategic in nature, aligning the management of human resources with the overall strategic goals of the organization. Personnel management, on the other hand, tends to focus more on administrative and routine tasks.

The terms HRM and personnel management are sometimes used interchangeably in the modern workspace setting. But, there are subtle differences between them. Stick around, and we’ll break them down in simple terms.

What is HRM?

HRM (human resource management) is a smart and thorough way of taking care of a company’s most important thing—its people. It means figuring out what the employees need to make the company work better. HRM makes sure that how the company deals with its people matches the big goals of the whole organization. It’s like making sure everyone is on the same page

HRM is like making sure you get the right folks for different jobs in your company. This means planning how many people you need, figuring out what each job requires, and finding good ways to bring in new team members.

Here are some important things HRM does:

  • Helps employees learn and get better at their jobs through training and other learning opportunities.
  • Sets up ways to understand how well employees are doing, gives feedback, and helps them improve.
  • Handles problems and makes sure everyone is treated fairly, and encourages everyone to talk openly.
  • Plans and manages how employees get paid and what other benefits they get.
  • Makes sure the company follows the rules about how the employees should be treated, like labor laws and ethical standards.

What is personnel management?

Personnel management is more about the everyday tasks of taking care of an organization’s workforce. This includes keeping track of their records, making sure they get paid correctly, and handling any issues that come up. It’s like taking care of the basics without worrying too much about the big picture of the whole company.

Key features of personnel management include:

  • Handling paperwork and records for employees, making sure everyone gets paid correctly.
  • Handling workplace issues by listening to both sides, finding solutions, and ensuring everyone follows company rules.
  • Ensuring the company complies with labor laws, regulations, and internal policies.
  • Onboarding, handling leave requests, and managing employee databases.

Difference between HRM and Personnel Management

Focus

HRM takes a strategic and proactive approach, aligning human resource practices with the overall strategic goals of the organization. Personnel management, on the other hand, deals with day-to-day tasks and immediate personnel needs without necessarily aligning closely with broader organizational strategy.

Employee Development

HRM helps employees grow in their careers through development and training programs, aiming to boost their skills for the organization’s long-term success. On the other hand, personnel management usually deals with day-to-day tasks like paperwork, employee benefits, and routine personnel transactions.

Approach

HRM takes a holistic approach to managing people, considering the entire employee lifecycle, from recruitment to retirement or exit. Personnel management, however, takes a conventional approach and focuses on immediate personnel needs and administrative tasks without necessarily contributing to long-term strategic planning.

Employee Relations and Engagement

HRM works to create a positive work environment by promoting open communication. The goal is to make work a happy place, keeping everyone satisfied and talking openly. While personnel management deals with employee relations too, it might lean towards the traditional side, focusing on keeping good relations and sorting out conflicts.

HRM vs. Personnel Management: Comparison Chart

Summary

It’s important to note that the terms “personnel management” and “human resource management” were historically used to distinguish between administrative and strategic approaches. However, in modern practice, these terms are often used interchangeably. Most companies, though, are smart enough to blend both strategic and administrative approaches when handling their workforce.

FAQs

What is the difference between HR management and people management?

HR management encompasses strategic functions like:

  • Talent acquisition and retention
  • Policy development and compliance
  • Employee relations
  • Training and development

People management involves:

  • Motivating and engaging employees
  • Delegating tasks and managing performance
  • Supporting individual growth and performance
  • Maintaining positive team dynamics

What is the difference between human resource management and HRM?

HRM is often used as a shortened form of “Human Resource Management.” There’s no significant difference in meaning.

What is the difference between HRM and personnel management Quora?

Personnel management was seen as a more transactional and administrative approach, emphasizing tasks like record-keeping, payroll, and compliance.

On the flip side, HRM takes a people-centric approach. It sees employees as valuable assets and focuses on engagement, development, and creating a positive work environment.

What do personnel management and HRM have in common?

  • Both deal with managing an organization’s workforce. 
  • Both handle tasks like recruitment, payroll, and record-keeping. 
  • Both aim to ensure compliance with labor laws and regulations.

What is personnel management in HRM?

Personnel management functions still exist within HRM but are often integrated into a broader framework with a greater emphasis on employee well-being, development, and strategic alignment.

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References :


[0]Image credit: https://www.canva.com/photos/MADF9lTqJ-M-hrm/

[1]Image credit: https://www.canva.com/photos/MAFQz3I6cTs-a-group-of-people-attracts-people-around-to-join-collaboration-and-cooperation-growth-of-a-critical-mass-of-citizens-business-personnel-management-and-outsourcing-involvement-in-a-project/

[2]Köster, Marco. Human Resource Management Versus Personnel Management. GRIN Verlag, 2007.

[3]Bach, Stepehen. Managing Human Resources: Personnel Management in Transition. John Wiley & Sons, 2009.

[4]Barney, Nick. “Human Resource Management (HRM).” TechTarget, www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM. Accessed 28 Jan. 2024.

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