Premium Essay

Difference Between Personnel Management and Human Resource Management

In:

Submitted By dedd
Words 1019
Pages 5
DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT

HRM has progressed since Henry Ford and the industrial revolution where employees were considered just able bodies to perform task. In the 1950’s Peter Drucker one of the founding fathers of HRM wrote that an effective system must direct the vision and effort of managers towards a common goal which is elemental to HRM. The principle of HRM was further bolstered with the passage of such legislature as the Equal Pay Act of 1963 and the Occupational and Safety Act of 1970 in the USA. Colleges introduced the discipline of HRM into their programs further cementing this principle. HRM as a function evolved out of PM during the 1980’s due to slow domestic growth and increased unionism; international competition and technological and commercial advances in the Japanese market; and in an attempt to stay competitive the USA and UK developed the process of HRM.

PM as outlined by Torrington & Hall (1987) refers to the set of activities concerning the workforce including payroll, staffing, mediating between staff and management, complying employee law and other administrative task. It is concerned mainly with managing the workforce not resources. Conversely HRM as defined by Storey 1995 is the distinctive approach to management which seeks to achieve competitive advantage through strategic development of a highly committed and capable workforce using an array of cultural, structural and personnel techniques. It is concerned with fulfilling management objectives and at the same time ensuring that the needs of the resources are met. Although PM can be considered archaic and HRM modern, both concern the management of people. Differences existing between PM and HRM can be characterised as fundamentally philosophical. PM practitioners hold the pluralist view that employees are an economic

Similar Documents

Premium Essay

Efewret5E4U

...Difference between Personnel and Human Resources What is the difference between Personnel and Human Resource? Many critics argue that there is no, clear, difference between Personnel Management (PM) and Human Resource Management (HRM). That Human Resource is just a more modernised term of reference to the traditional, Personnel. However, when examined closely, there are minor yet, crucial differences between the two. The terms of both, Human Resource and Personnel management, refer to the same function of managing workers within the work force. Personnel management was more of an operational, administrative, record-keeping function. Whereas, Human Resource is more strategically functioned and described as the newer version of Personnel. The term Personnel Management was originally put in place as a way of referring to activities in conjunction with the workforce. These activities consisted of Administrative tasks, payroll, staffing and contractual obligations. In regards to this, Personnel were very workforce orientated. It was described as playing the role of mediators between employers and employee's. Focusing on employees and their satisfaction, rather than concentrating heavily on management, highlighting the fact that, Personnel was less focused on the objectives of the management. Personnel's job design was the division of labour, less training of workers and evolving particularly around the welfare of employee's and employer-employee relations. Human Resource Management...

Words: 408 - Pages: 2

Premium Essay

Hrm in Context

... monitoring and control aspects of resources whereas Personnel Management was mainly about refereeing between the management and employees. Many scholars view Personnel Management as being workforce whereas HRM is resource. The differences between these two terms have to be viewed from many perspectives through the times and in context of the industry that is being studied. Keywords: Human resource management, Personnel management, SHRM Introduction Many researchers have been arguing recently the difficulty of distinguishing clear differences between Personnel management and Human resource management. Some authors believe that the difference is just a change of label as Torrington (1989cited in Koster 2007) said and there is no different in the content of Human resource management. On the other hand, there are researchers such as Guest (1987 cited in Arsmtrong, 1999) who argued that Human resource management is differentiated from traditional Personnel management. However, HRM is concerned with performing the same functional activities traditionally carried out by personnel function, but HRM approach performs these functions in a qualitatively distinct way when compared with personnel management (Storey, 1989). 161 European Scientific Journal June edition vol. 8, No.13 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 In this article, the differences between Human resource management and Traditional personnel management are...

Words: 3022 - Pages: 13

Premium Essay

Human Resources

...recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization. When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce. Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically...

Words: 3537 - Pages: 15

Premium Essay

Personnel Management vs Hrm

...According to Armstrong (1997) personnel management is a traditional approach to managing people at the workplace .It is more rigid and inflexible in nature .On the other hand, Human Resources management is a new approach to people management at the workplace .It takes a more humane aspect in considering employee desires. Personnel and Human Resource Management rely heavily upon each other to make them both succeed. Personnel Management focuses on the recruitment and management of work that an employee has to do, whereas Human Resources Management focuses on the general well being of all employees and any safety issues that employees may have in the workplace. Organisation and industrial management of employees is also included within Human As such these two have similarities and differences which the paper shall discuss in the following discussion. There are two approaches in employee management. They are the Human Resource Management (HRM) and Personnel Management. Although these two approaches seem different at a glance and on the surface, they are somewhat similar to one another in quite a few ways. Armstrong mentioned in his book “The key to improved business performance” it can be argued that the similarities between Personnel Management and HRM are Personnel management strategies, like HRM strategies, flow from the business strategy. Personnel management, like HRM, recognizes that line managers are responsible for managing people. The personnel function provides the necessary...

Words: 1738 - Pages: 7

Premium Essay

Hr in Management

...describing a personnel manager...” In this assignment the main functions of human resource management will be discussed along with the key concepts and practices associated within the role. The ways in which human resource management contributes to organizational performance will be evaluated as well as an evaluation of the two components of HRM; soft and hard. Finally, the ways in which human resource management differs from personnel management will be examined outlining the main differences between them and discussing the views that a management theorist, John Storey, has about the two management types. Human resource management (HRM) “includes all the activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of an organization’s goals.” (Jones, George & Hill, 2000, p.349) However, defining the term ‘human resource management’ isn’t always easy which has been part of an ongoing debate over the years. Although human resource management is a popular term within management, “there is still no universally agreed definition of it’s meaning.” (Beardwell & Claydon, 2010, p.4) The reasons for this is because HRM is a very broad topic with it being used in many different ways within organisations and the fact that HRM can be referred to as a more modern form of personnel management. The main functions of human resource management will now be discussed. In human resource management...

Words: 1709 - Pages: 7

Premium Essay

Hrm vs Pm

...Topic: How far and for what reason would you agree that there is little substantive difference between Personnel Management and Human Resources Management? There are many conflicting views on whether or not there is a substantive difference between Personnel Management and Human Resources Management. I hope by the end of my analysis on these two concepts that I would have clearly evaluate the questioned asked and gave an adequate response on whether there is in fact a difference. To that end, the concept of Personnel Management as defined by Bratton and Gold (2007) states that it is a function of management that coordinates the Human Resources need of an organisation including the designation of work, employee selection, training and development, rewards, performance assessment and union management relations. Armstrong (1977) also agrees with the definition of PM as he states that personnel management is concerned with obtaining, organizing and motivating the human resource required by the enterprise. This concept can be traced back to the industrial revolution that occurred in the late 18th century and is sometime referred to as the generic approach to management. On the other hand, David Ulrich (1998) states that the Human Resources Management should not be defined by what it does but by what it delivers – results that enrich the organisation’s values to customers, investor and employees. Thus it looks beyond the employees to the organisation, it terms of putting...

Words: 766 - Pages: 4

Premium Essay

Cost Accounting in the Bankinhg Sector

...*     |              | * Marketing              |              | * People Management * * * * * * * * * * * * * * * * * * * * * * * * Operations * * * * * * * * * * * * * * * * * * * * * * * * Finance * * * * Economics Personnel Management | HRM | HRD | Compensation | Job Analysis | Performance Management | Competency Based Assessment | Training & Development | Participative Management | Employee Relationship Management | Career Development | Talent Management | Employee Engagement | Knowledge Management | Employee Retention | Social Entrepreneurship | | Human Resource Management | *   * H R Management - Introduction * Importance of HRM * Scope of HRM * Various Processes in HRM * Management of Contractors * Performance Management * Hiring Strategies * Retention Strategies * Strategic HRM * Global HRM * Personnel Management vs HRM * Managing Employee Performance * Performance Appraisal Process * Performance Appraisal Interview * Managing Employee Relations * Employee Rewards and Recognition...

Words: 1612 - Pages: 7

Premium Essay

Hrm T

...Julius Asmontas HRM assessment task 1 1 Define human resource management. Human Resource Management is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. 2 Describe how human resource management differs from personal management. Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions. For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with...

Words: 1764 - Pages: 8

Premium Essay

Hrm in Work Life Balance

...Personnel management Personnel management refers to the managerial function of estimating and classifying of human resources requirements for meeting organisational goals. It involves strategies that ensure sufficient staff, a right combination of talent and performance in jobs. Human resource management Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers. Difference Between Personnel Management And Human Resource Management The difference between Human Resource Management and personnel management is that Personnel management deals with employees, their payroll and employment laws while Human Resources Management deals with the management of the work force, and contributes to an organization’s success. Personnel Management Personnel management is a traditional approach of managing people in the organization. Personnel management focuses on personnel administration, employee welfare and labor relation. Personnel management assumes people as a input for achieving desired output. Under personnel management, personnel function is undertaken for employee's satisfaction. Under personnel management, job design is done on the basis of division of labor. Under personnel management, employees are provided with less training and development opportunities. In personnel management, decisions are made by the top management...

Words: 435 - Pages: 2

Premium Essay

Human Resources

...term human resource management was being used by Peter Drucker and others in North America as early as the 1950s. The people management policies and practices which are usually termed ‘HRM’ originated in manufacturing industry in the USA during the late 1970s and early 1980s. These represented a significant break with the personnel management paradigm. A number of factors led to this new management thinking, principally loss of faith in the traditional approach to mass production, the example of Japanese work organization and manufacturing processes, and the realisation of the impact of new technology on work practices (Gallie et al, 1998). The remarkable success of Japanese manufacturers in the 1970s and 1980s in capturing Western markets for sophisticated products, such as electronics and cars, brought to a head long-standing concerns about traditional Taylorist/ Fordist models of work organisation. These models were characterised by low-or semi-skilled work, close supervision, pay being linked to quantity of output, and – at least in mass-production industries – assembly-line technologies in which the pace of work was controlled by machine. By the 1980, HRM had come to mean a radically different philosophy and approach to the management of people at work( Storey, 1989) with an emphasis on performance, workers commitment, and rewards based on individual or team contribution, differing significantly in all of these from the corresponding aspects of traditional personnel management...

Words: 996 - Pages: 4

Premium Essay

Hrm Hard and Soft Styles

...different approaches to Human Resource Management. Namely the “hard” and “soft” HRM practices identified by Storey (1989). One of the aspects from which the HRM practices will be valued is employer’s attitude towards employees. As those practices are completely different in nature, the way how management treats their workers distinguishes a lot. Therefore, comparative analysis will identify the contrast between the styles. Another aspect from which the HRM practices are going to be assessed is a pay scheme followed in each type of management. Introduction Human Research Management as a practice and tool to manage employees in the organization evolved quite recently. The predecessor of HRM is personnel management, which came into formation due to industrial development around the world. Since the beginning of 20th century many organizations opened personnel departments, which had many responsibilities such as managing payroll, hiring and firing employees. Further tasks of this department in the organizations were to introduce new law requirements, implementation of different social and workplace safety rules. According to Guest (1998) transformation of PM into human resource management began in the end of 20th century. The main reason for development of HRM was shift of western economies towards the services economy. Therefore, quality of services became the competitive advantage for many organizations. As Storey (1995) states, human resource management remains highly controversial...

Words: 1831 - Pages: 8

Premium Essay

Hr Outcome 1 Report

...1-Definitions of: A- Human Resource Management: Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. These human resources responsibilities are generally divided into three major areas of management: staffing, employee compensation, and defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world. As Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change." B- Personnel Management: The part of management that is concerned with people and their relationships at work. Personnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. Personnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. There are various models of personnel management, of which human resource management is the most recent. 2-Evolution of HRM 1) Social justice. The root of personnel department...

Words: 1982 - Pages: 8

Premium Essay

The Guest Model

...assumption that the human resource management is in its own world in terms of people management. David guest developed four aspects of human resource management which are strategic integration, flexibility, high commitment and quality. This model is a fusion of aspects that resemble both a hard and a soft approach of HRM. The purpose of this model was to try and distinguish human resource management from personnel management. In his quest to distinguish the 2, Guest suggested that human resource management is unitaristic, individualistic and mutual while personnel management is advisory, compliance oriented, pluralist and collective. Tempting as it may be, human resource seems to promise unrealistic goals. Firstly, Armstrong defines human resources as strategic, intergrated and coherent approach to the management of the organisations most valued asset working there (2009). Rama Rao (2010) defines personnel management as a set of programs functions and activities designed to maximize both personal and competent people. According to Bratton et al 2007 personnel management only focuses on cost minimisation rather than quality of workforce. On the other hand human resource management is manipulative. Wilmo (1993) quoted in Armstrong (2005) that human resources management operates as a form of insidious control. It preaches mutuality but the reality is that it exploits workers whereas human resources in this case is seen as manipulative. More so, human resource management is in the world...

Words: 834 - Pages: 4

Premium Essay

Human Resource Managem

...THE DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT FROM A HISTORICAL PERSPECTIVE AND ITS IMPLICATIONS FOR THE HUMAN RESOURCE MANAGER CHUKWUNONSO Franklyn, franconicostelo@yahoo.com +234 8038765452, 8052829700 Department of Information Technology, Federal University of Technology, Yola ABSTRACT This paper introduces the development of Human Resource Management (HRM) from a historical perspective and explains the debate between HRM and personnel management. Thus, the paper identifies the historical developments and their impacts on HRM, outlines the development and functions of HRM, explains the differences between HRM and Personnel Management, evaluates ‘hard’ and ‘soft’ approaches to HRM, illustrates how diversity is an issue in Human Relations (HR) practice and finally considers HRM as an international issue. It concludes with a discussion about ‘hard’ and ‘soft’ models of HRM and its implications for the human resource manager. INTRODUCTION The term "human resource management" has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as "personnel administration." The name change is not merely cosmetics. Personnel administration, which emerged as a clearly defined field by the 1920s (at least in the US), was largely concerned the technical aspects of hiring, evaluating, training, and compensating employees and was very much of "staff" function in most organizations. The field did not normally focus on the relationship...

Words: 4678 - Pages: 19

Premium Essay

Human Resource Management

...TP024344 Module Name: People Management Module Code: BM014-3--PM Lecturer Name: Halmin Bin Yusoff Intake Number: UC1F1101BM Submission Date: 26th September 2011 TABLE OF CONTENTS 1. Introduction........................................................................pg 3 2. Differences between human resource department and personnel department.........................................................................pg 4 3. Benefits of human resource management..........................pg 5-6 4. Conclusion..........................................................................pg 7 5. References...........................................................................pg 8 HUMAN RESOURCE MANAGEMENT INTRODUCTION By definition, human resource management can be defined as the process to which the management manages the employees in a company or in an organisation in a thorough and a very structured manner. Personnel management can be explained as the process of planning, compensating, organizing, maintaining and integration of the employees in an organisation or in a company mainly for the purpose of contributing to the individual and organizational goals. In many cases, personnel management is said to be almost the same as the human resource management, it is explained further that the personnel management is like the old or the early version of the human resource management. For some reasons many...

Words: 1677 - Pages: 7