What Is The Difference Between Personnel And Human Resource Management?

Human resources management and personnel management are often used interchangeably. The differences, if any, between the two are very subtle and more philosophical in nature.

Personnel management is a more administrative job in nature. It deals with the payroll of the company. It is that branch of management that must function in compliance with employment laws. The tasks are more of the routine type, in contrast with the broader and more dynamic scope of human resources management.

On the other hand, the human resources management of an organisation is responsible for the overall management of the workforce in the organisation. The efficiency of the human resources management of an organisation in coordinating the activities of the staff is, in fact, one of the primary reasons for the success of the most successful corporate houses in the world. Personnel management, in short, is a function of management that has a narrower scope than human resources management.

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According to P. C. Tripathi (2002), Human Resources Development, Sultan Chand & Sons:
1) PM is traditional, routine, maintenance-oriented, administrative function whereas HRD is continuous, on-going development function aimed at improving human processes.
2) PM is an independent function with independent sub-functions. HRD follows the systems thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.
3) PM is reactive, responding to demands as and when they arise. HRD is proactive, anticipating, planning and advancing continuously.
4) PM is the exclusive responsibility of the personnel department. HRD is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the personnel functions.
5) The scope of PM is relatively narrow with a focus on administering people. The scope of HRD views the organization as a whole and lays emphasis on building a dynamic culture.
6) Important motivators in PM are compensation, rewards, job simplification and so on. HRD considers work groups, challenges and creativity on the job as motivators.
7) In PM improved satisfaction is considered to be the cause for improved performance but in HRD it is the other way round (performance is the cause and satisfaction is the result).

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