Difference between Personnel Management and Human Resource Management

Main difference lies in the scope and orientation. HRM has emerged as an extension of Traditional Personnel Management.

Basis for comparison	Personnel management	HRM
Meaning	The aspect of management that is concerned with the workforce and their relationship with the entity.	The branch of management that focuses on the most effective use of the manpower of an entity, to achieve the organizational goals.
Approach	Traditional	Modern
Nature	Reactive	Proactive
Treatment of manpower	Machines or tools	Asset
Type of function	Routine function	Strategic function
Basis of pay	Job evaluation	Performance evaluation
Management role	Transactional	Transformational
Communication	Indirect	Direct
Labor management	Collective bargaining contracts	Individual contracts
Initiatives	Piecemeal	Integrated
Management actions	Procedure	Business needs
Decision making	Slow	Fast
Job design	Division of labor	Groups/Teams
Motivation	Through compensations, rewards, bonuses etc.	Through strategies for facing challenges, work groups, job creativity etc.
Focus	Primarily on activities like hiring, remunerating, training and harmony	Treat manpower of the organization as valued assets, to be valued, used and preserved

Tags:

HRMPersonnel Management