Difference between HRM and Personnel management

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January 27, 2018
Changing focus of human resource management
January 27, 2018

Difference between HRM and Personnel management

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Difference between Human Resource

Management and Personal Management

Many students who have little knowledge about human resource management use these two as synonyms. But the fact is human resource management is an extension of personal management and has replaced traditional personal management completely in modern times. In earlier centuries, when human resource management was not widespread, recruitment and payments of the employees were accomplished by personal management team in the company. With the growing need of employee management, human resource management emerged as an alternative over the traditional personal management.

Some experts claim there is no significant difference between these two concepts. They can be used interchangeably. On the other hand, a group of experts pointed few differences between them.

Comparison Chart between Human resource management and personnel management

  Human Resource Management Personnel Management
Explanation of the term It is regarded as the branch of management that puts emphasis on the most effective utilization of work force as an entity in order to attain organizational goals It is regarded as the aspect of management; this is related to the manpower and its relations with the organization
Approach Modern Traditional
Type of role Routine Management Strategic Management
Treatment of Manpower Asset Machines and tools
Pay Basis Performance Evaluation Job Evaluation
Managerial Function Transformational Transactional
Managing Labor Keeping contracts between employer and one or more unions Keeping individual contract signed between employees and employer
Mode of Communication Direct Indirect
Initiative Integrated Piecemeal
Management actions Business needs Procedure
Work Design Groups/Teams Division of Labor
Decision Making Procedure Fast Slow

Key Differences between Personal Management and Human Resource Management

The main differences of these two management concepts are as follows:

Personal management is more concerned about administrative work such as dealing with employees, payrolls and maintaining employee laws. On the contrary, human resource management regulates work force to contribute to organizational success.

Personal management is more reactive in nature. It only attends to concerns and fulfills the demands of the employees. But human resource management works as a proactive element in an organization because it contributes to continuous development of functions and policies to strengthen the workforce of the organization.

Personal management team can be considered as an autonomous entity, but human resource management is an inseparable part of the organization. Personal management stimulates the workforce to better with bonus, compensation and rewards. But human resource management strategy to motivate the workforce of the company is distinctive. This department tends to provide motivation through effective use of human resources, strategies to deal with workplace challenges, creating jobs for groups and job creativity.

The primitive function of personal management is considered as satisfying the employees of the organization. On the other hand, human resource management concentrates on achieving organizational goals and objectives by extending the abilities of the workforce.

Challenges Faced by Human Resource Management

Our HR Assignment Help professionals have laid down some basic points regarding the challenges that are faced by HR department:

Employee management: Most efficient employees are the assets for any company. So retaining them for as long as possible is a tough challenge for the HR department. So to ensure employee satisfaction along with the upgradation of their skills and aptitude is a must for HR department.

Compensation and benefits: There is always a competition among different companies in terms of compensation and benefits which are given to the employees. Our Human Resource Assignment Help professionals describe that the HR department along with finance department has to come with the plans to determine the wages and budget.

Talent management: The HR department faces a regular labour shortage to maintain the competitive potential vis-a-vis other players in the business. So they have to manage the selection and performance to sustain the workforce.

Diversity management: The diversity in any organization now includes work style, generation, language along with the traditional view of race, colour, sex, creed etc. So according to our HR assignment help tutors, HR department must understand the need of maintaining the diversity so as to maintain the work efficiency.

Human Resource Management Vs Human Capital Management

There are noticeable dissimilarities between human resource management (HRM) and human capital management (HCM) recorded by experts, but at the same time, they cannot deny how indifferent these two management concepts are. The most important is they both deal with human resources (manpower) of the organization.

Is Human Capital Management the new name of Human Resource Management?

In earlier days, there was not much competition or workload. Employers need not focus their attention on the employees’ well-being, safety and development. In the later centuries, many Statutes and Acts came into action to protect the employees’ values and rights. Therefore, the need of human resource became undeniable. Consequently, employers turned their focus on building skilled manpower and fulfilling their professional need in an organization. Employers gathered personnel who would be responsible for treating the workforce as capital or asset of the organization. The function of human resource department became more sensitive with days. Hence, it is now more popularly known as human capital management.

In general, human resource management and human capital management possess many similarities. But it also has some basic differences which are described below:

  Similarities   Dissimilarities
Both the terms are responsible for accomplishing various functions related to individual employee working in a group Basic Difference:
These both components are essential to a growing organization and have a reciprocal relationship between two individual entities. To implement human capital strategies, an organization needs to have strong human resource management infrastructure Definition:
HRM refers to the process of maximizing the utilization of available human resource in the organization.
HCM is regarded as an approach that considers employees as assets (human capital) whose current value can be measured and whose future value can be improved through proper investment
HCM takes the idea of strategic HRM one step further to integrate workforce strategy with the over organizational strategy in terms of making strategies more focused on the human side compared to traditional HRM Approach:
As it is clear from its definition HRM treats workforce as costs
As mentioned earlier in the definition, HCM treats manpower as assets
HCM does not really replace the concept of the HRM, but complements it in many ways. Each of these focuses on the adopting integrated and strategic approach on handling employees, which is the concern of all stakeholders Functions:
The role and responsibility of HRM is bounded by the law and company directives
HCM performs work related to all employee issues and other elements such as employment, utilization, development and compensation
  Techniques in Use:
Employs simple benchmarking techniques
Employs complicated evaluation techniques
Regulated only by HR team
Can only be driven under some special case of organization performance.

Although there are few similarities and dissimilarities between HRM and HCM, from the above stated points it can be concluded that both concepts hold their significance in the organization.

An Ideal Model of Human Resource Management

The human resource management model involves all the responsibilities the HRM department has to fulfill. If the responsibilities are fulfilled effectively, it enables the organization to create a willing workforce that works towards achieving organizational goals and objectives. Many forces like technology, economy, politics, law, organizational conditions influence the environment. Here is a graphical representation of the human resource management model developed by the Harvard School:

If you are asked to develop an ideal HRM model for certain company, you can use the above reference and create an HRM model on your own. Our human resource management service is at your disposal to assist you with the coursework needs. Any problem arising with HRM assignment writing or in understanding the fundamental of HRM or even gathering research material from the sources, our HRM assignment experts will be glad to help you out.

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