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The term personnel management is more traditional, and was used in the earlier times to signify
the different activities related to the workforce, such as payroll, staffing, contractual duties and
other administrative responsibilities. This suggests that personnel management includes all those
tasks that pertain to the management of workforce.
Human resource management involves all management decisions and action that affect the
nature of the relationship between the organization and its employees – its human resources.
(Beer et al, 1984)
Human Resource Management is an organized and distinct part of management that pertains to
acquiring, developing, maintaining, using and coordinating the workforce in a way that they
perform to their highest potential in the organization. It involves a systematic process in which
planning is carried out for the needs and requirements of human resources, as well as their
recruitment, training, remuneration and performance evaluation.
1. Hiring
Hiring within personnel management usually involves hiring across a variety of organisations.
This can be done by either a group of people, or one person. Candidates are judged by how well
their CV matches a rigorous checkbox list, regardless of the individual’s talents and personality
while in human resource management, the method prefers to hire employees by partnering with
the company hiring manager – a relatively new role in human resource management – who
understands the specific needs of the company or organisation. This process ensures that the
employee hired not only possesses the skills needed to perform adequately, but also fits the
culture of the organisation.
2. Employee orientation
The key objective of the orientation process for the personnel management team is to review and
sign required paperwork with the employee upon them joining an organisation. This paperwork
follows a traditional framework and includes an employee handbook that documents all intended
employment policies and procedures while the human resource management team takes a more
nurturing approach to employee orientation. New employees are welcomed into the organisation
with sufficient training and are, on occasion, offered opportunities such as formal mentoring
programs and meet-and-greets with other employees.
3. Managing employees
Personnel management tends to follow company policy without question. Employee benefits are
often limited by preventing promotions above one salary grade and restricting annual increases
within a compensation system. This is done to ensure consistency and encourage employee
motivation through a scheduled pay grade range, which allows the employee to move up in pay
grade at a consistent pace – usually one pay step up per year of service while consistency is also
key within human resource management, this approach focuses on employee development rather
than company policy. Human resource management understands the value of an employee who
is recognised for their performance, whether that be in the form of a pay raise or even an
impressive benefits package.
5. Personnel management is more administrative in nature, dealing with payroll, complying with
employment law and handling related tasks. While HR on the other hand, is responsible for
managing a workforce as one of the primary resource that contributes to the success of an
organization.
7. Personnel management can include administrative task that are both traditional and routine. It
can be described as reactive, providing a response to demand and concerns as they are presented,
while by contrast, HRM involves on-going strategies to manage and develop and organisation’s
work force. It is proactive as it involves the continuous development of functions and policies for
the purpose of improving a company’s work force.
9. In personnel management, training and development are controlled and limited, while in
HRM, it is always, improving-learning.
11. In personnel management, labour is treated as a tool which is expendable and replicable
while, HRM people are treated as assets to be used for the benefit of organization. Its employees
and the society at large.
12. Personnel management focus on division of labour, while HRM focus on team work.
13. As far as conflict handling is concerned, personnel management reach temporary solutions,
while HRM manage climate, culture, and everlasting solutions.
14. In personnel management, fixed grades of pay are to be given, while in HRM, performance
related pay are to be given.
15. Personnel management’s role is transactional, and HRM role is transformational leadership.
16. In case of personnel management, managerial task and labour tasks are monitoring while in
case of HRM, managerial task and labour tasks are nurturing.
Human resource management was developed as an extension of personnel management, with the
objective of fulfilling the gaps present in the traditional approach. It is very important for
organizations to incorporate human resource management because there is very high competition
in the present times, and it is imperative for every organization to give priority to employees and
their needs.
Companies today find it very difficult to retain hard-working and efficient employees because
they are fully aware of their rights within the organization. Hence, human resource management
is vital as it makes sure that the rights and requirements of employees are taken into account and
aligned with the objectives of the organization.
Reference:
May 17, 2019 Aline Sampras and Ghada Eweda-Registered student MBA-marketing