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

Basis for comparisonPersonnel managementHRM
MeaningThe 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.
Treatment of manpowerMachines or toolsAsset
Type of functionRoutine functionStrategic function
Basis of payJob evaluationPerformance evaluation
Management roleTransactionalTransformational
Labor managementCollective bargaining contractsIndividual contracts
Management actionsProcedureBusiness needs
Decision makingSlowFast
Job designDivision of laborGroups/Teams
MotivationThrough compensations, rewards, bonuses etc. Through strategies for facing challenges, work groups, job creativity etc. 
FocusPrimarily on activities like hiring, remunerating, training and harmonyTreat manpower of the organization as valued assets, to be valued, used and preserved


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