Difference between personnel management and HRM – Why you must know

Did you know that organizations that implement strategic human resource management (HRM) practices are more likely to become high-performing entities in the market? This finding underscores the growing importance of understanding the difference between personnel management and HRM.

Though both fields aim to manage the workforce within a firm effectively, they have different approaches and objectives. In this article, we shall look into some of the primary differences between these two models of managing employees.

What is personnel management?

Personnel Management refers to the traditional method that is used when either recruiting or engaging workers in an organization. It usually involves handling things like legal compliance, recruitment and employee grievances. The following are the main goals behind personnel management:

1. Administrative focus: Day-to-day operations such as hiring new staff and wage calculation.

2. Reactive approach: Responding to problems after they occur as opposed to knowing them in advance.

3. Compliance management: Keeping legal standards in labor laws and regulations.

4. Employee relations: Harmonizing employees with the organization.

5. Discipline enforcement: Maintaining order through ensuring that workers comply with set regulations.

It views workers as part of the tools that contribute to production in terms of controlling each stage and following some procedures.

Also read: Career opportunities with Human Resource Management

What is Human Resource Management (HRM)?

Human resource management (HRM) is a contemporary strategic approach to managing an important organization’s asset, its people. It goes beyond just administrative work to ensure that the workforce is aligned to the firm’s objectives, and employee development is promoted. The main aspects of HRM include:

1. Strategic integration, which entails aligning HR policy and practice with an organization’s long-term objectives.

2. Anticipating and preparing for future human resource needs and challenges for the organization.

3. Developing staff skills through training programs.

4. Employee performance management.

5. Ensuring employees are motivated at work.

According to HRM theory, employees are valuable assets that need development, satisfaction, and direction to achieve organizational goals.

However, personnel management does not concern itself with improving employee performance and relations, as compared to HRM.

Key differences between personnel management and HRM

Acquainting yourself with the differences between HRM and personnel management is essential for people. They include:

Aspect	Personnel Management	Human Resource Management
Approach	Traditional and administrative	Modern and strategic
Focus	Employee welfare and labor relations	Alignment of HR strategies with business goals
Treatment of employees	Viewed as tools or machines	Considered valuable assets
Decision-making	Centralized and slow	Decentralized and rapid
Communication	Indirect, through hierarchy	Direct, encouraging open dialogue
Motivation	Relies on external controls and monetary rewards	Emphasizes intrinsic rewards and employee engagement
Job design	Based on division of labor	Encourages teamwork and collaboration

Why understanding the difference is essential

Grasping the difference between personnel management and HRM is vital for several reasons, some of which we can list out:

1. HRM ensures that human resource policies are in sync with the organization’s mission and objectives, leading to cohesive progress

2. A strategic HRM approach improves productivity levels & job satisfaction by focusing on development and engagement.

3. This can prepare an organization for rapid responses to changes in human resource requirements due to market changes.

4. Some benefits of implementing HRM practices are that firms are able to hire and retain the best talents in the field compared to their competitors.

In today’s dynamic business environment, transitioning from traditional personnel management to strategic HRM is beneficial and necessary for sustained success.

You may also like: Top 12 objectives of HRM (Human Resource Management

Online Manipal’s programs in human resource management

In the field of human resource management, there are several degree programs one can pursue via Online Manipal’s platform. For professionals in Human Resource Management, Online Manipal provides online Master of Business Administration programs from prestigious universities that suit various needs:

Online MBA in Human Resource Management – Manipal Academy of Higher Education (MAHE): 

This UGC-entitled course enhances current HR practice areas including performance management, HR analytics and talent acquisition, among others. It is designed for those already working within the industry who require flexibility in their studies or access to more extensive resources.

Online MBA in Human Resource Management – Manipal University Jaipur (MUJ)

This program gives its students strategic HR management skills including organizational behavior and employee relations. The course applies to those looking forward to enhancing their careers through total transformation in these fields.

Both of these programs are structured to provide sufficient knowledge and practical know-how in preparation for taking leadership positions throughout the divisions of the HRM sector.

The bottom line

Conclusively, it is essential for modern professionals who seek to cut across the complex organization structures today to comprehend the differences between personnel management and HRM. Personnel management oversees basic administration functions, whereas HRM integrates them with more advanced strategies that are consistent with corporate goals at a broader level. 

For those aspiring to deepen their expertise in HRM, exploring the online MBA programs offered through Online Manipal can be a significant step toward achieving career excellence in human resource management.

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