Tuesday 26 October 2021

Distinction between Personnel Management and Human Resources Management

The history of Human Resources Management traces its roots to the erstwhile Personnel Management that was prevalent in the companies of a few decades ago. Though the two terms 'Personnel Management and Human Resources Management' are interchangeably used by most of the authors, there are key differentiators that makes Personnel Management(PM) different from Human Resource Management(HRM).

HRM is clearly based on foundation of behavioural science knowledge relating to the handling of employees to motivate organisational goals. The focus is more proactive approach and pays attention to employee satisfaction and delight. Business goals and objectives and the strategies that will enable this to happen are the foundation for HRM. The basic philosophy is driven by the Theory Y approach where the belief is that people like to work and do not prefer to supervised and made to perform. The employee becomes a champion for the organisation and its product/service.

Personnel Management is that management style that deals with the control and reactive problem solving approach to resolve employee issues in an organisations. The philosophy for the PM approach relied on the Theory X approach that believe that people do not naturally like to work and need to be coerced to work and often need to be driven to work. It is more the 'stick' approach rather than 'carrot' approach. Rigid rules of do's and dont's exist and these provide the framework for employee's behaviour at the workplace. Employee welfare and formal grievance systems play a significant role here and there by managing industrial relations with high amount of trade union activity are highlighted.

Very few organisations today practice the system style to people management, as the benefits and the long-term gains from a HRM approach, impact business results far more. HRM emphasizes on training, as an important area of people management, which covers the following aspects:
  1. Increasing productivity
  2. Improving quality
  3. Improving organisational climate
  4. Ensuring personal growth etc.

Courtesy ~ SMUDE B1132
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