Updated: Jul 8
Personnel management and human resource management are two distinct approaches to managing employees within organisations.
While they share some common responsibilities, the two have notable differences.
While personnel management considers employees as a tool, HRM specialists encourage organisations to view them as assets that should be invested in, which are to be valued, used and preserved.
Here is a comparison of personnel management and human resource management, along with examples from two suitable organisations:
Personnel management primarily focuses on the administrative aspects of managing employees.
It involves recruitment, maintaining employee records, determining compensation, administering benefits, training and development, employee orientation, and enforcing rules and policies.
Personnel management is usually focused on or concerned with satisfied employees as well as increased production of the company, but it has a limited scope than human resource management.
Personnel managers are crucial in addressing workplace conflicts, establishing employee guidelines, and aligning hiring practices with employment laws and regulations.
Example Organisation 1: ABC Manufacturing Company
In ABC Manufacturing Company, the personnel management department is responsible for recruiting new employees, maintaining their records, handling employee benefits, and ensuring compliance with employment laws.
They conduct orientation programs for new hires, process payroll, and administer performance reviews.
Personnel managers in this organisation are actively involved in resolving conflicts and ensuring that company policies are implemented effectively.
Human Resource Management
It is considered to be a modern approach towards the management of human resources within organisations.
Human resource management takes a strategic approach to employee management.
HR managers work closely with company executives and various functional departments to align hiring and employee goals with the organisation's objectives.
They focus on creating a positive work environment, promoting employee satisfaction, fostering diversity and collaboration, and enhancing employee skills through training and development programs.
Example Organization 2: XYZ Tech Solutions
In XYZ Tech Solutions, the human resource management department is crucial in developing strategies to attract and retain top talent.
HR managers work closely with department heads and executives to ensure the company's hiring practices align with its business goals.
They design comprehensive onboarding programs, provide attractive benefits options, and promote positive company culture.
HR managers also emphasise training programs that align with technological advancements and industry trends, enabling employees to contribute effectively to the company's success.
Personnel Management v Human Resource Management
While both personnel management and human resource management share responsibilities such as hiring, employee orientation, managing employees, and administering compensation and benefits, their approaches differ.
Personnel management follows a rule-based system, focusing on administrative tasks and reactive problem-solving.
On the other hand, human resource management takes a proactive approach, prioritising employee development, engagement, and strategic alignment with the organisation's goals.
Note: The examples provided for the organisations (ABC Manufacturing Company and XYZ Tech Solutions) are fictional and used for illustrative purposes only.
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