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Difference Between Personnel Management And

Human Resource Management

Human resource management is the new version of personnel management. There is no any
watertight difference between human resource management and personnel management. However,
there are some differences in the following matters.

1. Personnel management is a traditional approach of managing people in the organization. Human
resource management is a modern approach of managing people and their strengths in the
organization.

2. Personnel management focuses on personnel administration, employee welfare and labor
relation. Human resource management focuses on acquisition, development, motivation and
maintenance of human resources in the organization.

3. Personnel management assumes people as a input for achieving desired output. Human resource
management assumes people as an important and valuable resource for achieving desired output.

4. Under personnel management, personnel function is undertaken for employee's satisfaction.
Under human resource management, administrative function is undertaken for goal achievement.

5. Under personnel management, job design is done on the basis of division of labor. Under human
resource management, job design function is done on the basis of group work/team work.

6. Under personnel management, employees are provided with less training and development
opportunities. Under human resource management, employees are provided with more training and
development opportunities.

7. In personnel management, decisions are made by the top management as per the rules and
regulation of the organization. In human resource management, decisions are made collectively after
considering employee's participation, authority, decentralization, competitive environment etc.

8. Personnel management focuses on increased production and satisfied employees. Human
resource management focuses on effectiveness, culture, productivity and employee's participation.

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9. Personnel management is concerned with personnel manager. Human resource management is
concerned with all level of managers from top to bottom.

10. Personnel management is a routine function. Human resource management is a strategic
function.

Difference between Management and
Administration
Key difference: Administration frames the objectives and policies of an
organization. Management implements these policies and objectives.

Management and administration are at times used interchangeably; however, they are two different levels
of the organization. The administration is the top level of the organization with the decisive functions.
They are responsible for determining the policies and objectives of the organization or the firm.
Management, on the other hand is the middle level executive function. They implement the policies and
objectives as decided by the administration.

The administration includes the people who are either owners or partners of the firm. They usually
contribute to the firms capital and earn profits or returns on their investment. The main administrative
function is handling the business aspects of the firm, such as finance. Other administrative functions
usually include planning, organizing, staffing, directing, controlling and budgeting. Administration must
integrate leadership and vision, to organize the people and resources, in order to achieve common goals
and objectives for the organization.

Management usually incorporates the employees of the firm who use their skills for the firm in return for
remuneration. Management is responsible for carrying out the strategies of the administration. Motivation
is the key factor of a management. Management must motivate and handle the employees. It can be said
that management is directly under the control of administration.

Further comparison between management and administration:

Management Administration
Definition Art of getting things done through
others by directing their efforts
towards achievement of pre-
determined goals.
Formulation of broad objectives,
plans & policies.
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Nature executing function, doing function decision-making function, thinking
function
Scope Decisions within the framework
set by the administration.
Major decisions of an enterprise
as a whole.
Level of authority Middle level activity Top level activity
Status Group of managerial personnel
who use their specialized
knowledge to fulfill the objectives
of an enterprise.
Consists of owners who invest
capital in and receive profits from
an enterprise.
Usage Used in business enterprises. Popular with government, military,
educational, and religious
organizations.
Influence Decisions are influenced by the
values, opinions, beliefs and
decisions of the managers.
Influenced by public opinion,
government policies, customs etc.
Main functions Motivating and controlling Planning and organizing
Abilities Handles the employees. Handles the business aspects
such as finance.


What is the difference between Human Resources and
Administration?
In the works of any entity (company, association, corporation, school, college, hospital, foundation,
etc.), the Administration is in charge of the organizing, decision-making, control, supervision, growth,
and basically the overall performance and well-being of the entity.
Human Resources is only a branch or department of the entity. Its purpose revolves around the
people that work for the entity--employees, laborers, administrators, and so on. These are a type of
resource--human resource--since resources include many other things like land (natural resource),
machinery (capital), etc. Everybody counts because everybody collaborates with something in order
for the entity to function properly; everybody has a task or several tasks. Therefore, this Human
Resources part is in charge of supervising these people, assuring work environment quality
(individual and collective), searching for new and efficient resources (new employees, so to speak),
and everything else related while also remaining in accord with the Adminitration's
requests/preferences/policies and with the law.
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What is the difference between HR
manager and admin manager?
R management is responsible of recruitments, workforce, talent management, training and
rewarding.
Administrative management is responsible of operations performance, support functions, quality and
cost control.
There is a big difference between the mentioned functions.
It depends on the structure of the organization.
The duties of hr and admin manager are generally one and the same.
For example: Hr: Recruitment, interviewing, background checks, offer letters, personnel file creation,
training, facility/supplies mgmt.
Admin: background checks, offer letters, file creation, facility/supplies mgmt.
Hr might outsource duties that are considered administrative, or they are all performed under the
position of hr manager.
There is not a really big difference between Human Resource Management and Personnel
Management, in actual fact "Human Resources" have largely replaced the term "Personnel
Management".
Human Resource Management is basically much broader in scope than Personnel Management.
Human Resource Management could be described in two ways.
Strategic and Proactive.
The reason being that there strategies are ongoing and they constantly work towards managing and
developing an organisations workforce.
It can be seen as Proactive because of their continuous development and functions to improve the
company's workforce.
Human Resource Management is the type of Management where almost everybody in Managing
Position can play a part in Training and Development.
They aim to have many different Managers in various departments with the necessary skills to
handle employee tasks at hand.
Personnel Management can be described as reactive.
The reason why I would say this is because of the way they operate.
An example of this would be that they respond to demands and concerns as they are presented.
Personnel Management could also be seen as a independent way of managing.
It is a sole responsibility of the organisation.
an admin manager deals with general management of the administration,ie from top management
to the lower management, he simply manages the daily operations of the company or organnisation

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Performance Management vs Performance
Appraisal
The terms 'performance management' and 'performance appraisal' are sometimes used synonymously,
but they are different. Performance management is a comprehensive, continuous and flexible approach to
the management of organisations, teams and individuals which involves the maximum amount of
dialogue between those concerned. Performance appraisal is a more limited approach which involves
managers making top-down assessments and rating the performance of their subordinates at an annual
performance appraisal meeting.


Performance appraisal Performance management
Top-down assessment Joint process through dialogue
Annual appraisal meeting Continuous review with one or
more formal reviews
Use of ratings Ratings less common
Monolithic system Flexible process
Focus on quantified objectives Focus on values and behaviours as
well as objectives
Often linked to pay Less likely to be directly linked to
pay
Bureaucratic - complex
paperwork
Documentation kept to a minimum
Owned by the HR department Owned by line managers


We have worked with some of the most advanced organizations in terms of Performance Management

Most organizations have some type of employee appraisal or review system and are experiencing the
shortcomings of manual Appraisal systems. In talking about Employee Performance Management, the
question we are asked most often is what is the difference between Appraisal systems and Performance
Management

Following is a process diagram that provides a graphical view of the major differences between the two
processes:

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Performance Management systems typically are:
1. A definition of what you want an employee to do for the next performance period (normally the
next quarter, half year or full year). The definition includes specific objectives for the period,
backed up by a job description which includes the normal expectations for that position
2. A review of remuneration/bonuses if these objectives are met
3. A review of the personal development objectives
4. Formally Performed quarterly, half yearly or annually but with input all year round
5. Typically fully automated where the information is accessible to all participants at any time
6. Content rich if the automated Performance Management system has features such as a
Performance Diary






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Evolution of Human
Resource Management
Human Resource Management
Human Resource Management in its simplest definition means management of organizations manpower
or workforce or human resources.
Evolution of HRM
The evolution of the concept of Human Resource Management is presented below
Period before industrial revolution The society was primarily an agriculture economy with limited
production. Number of specialized crafts was limited and was usually carried out within a village or
community with apprentices assisting the master craftsmen. Communication channel were limited.
Period of industrial revolution (1750 to 1850) Industrial revolution marked the conversion of economy
from agriculture based to industry based. Modernization and increased means if communication gave
way to industrial setup. A department was set up to look into workers wages, welfare and other related
issues. This led to emergence of personnel management with the major task as
- Workers wages and salaries
- Workers record maintenance
- Workers housing facilities and health care
An important event in industrial revolution was growth of Labour Union (1790) The works working in the
industries or factories were subjected to long working hours and very less wages. With growing unrest ,
workers across the world started protest and this led to the establishment of Labour unions. To deal with
labour issues at one end and management at the other Personnel Management department had to be
capable of politics and diplomacy , thus the industrial relation department emerged.
Post Industrial revolution The term Human resource Management saw a major evolution after 1850.
Various studies were released and many experiments were conducted during this period which gave
HRM altogether a new meaning and importance.
A brief overview of major theories release during this period is presented below
Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the evolution of
scientific human resource management approach which was involved in
- Workers training
- Maintaining wage uniformity
- Focus on attaining better productivity.
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Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). Observations and
findings of Hawthrone experiment shifted the focus of Human resource from increasing workers
productivity to increasing workers efficiency through greater work satisfaction.
Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslows Hierarchy of needs ( 1954)
These studies and observations led to the transition from the administrative and passive Personnel
Management approach to a more dynamic Human Resource Management approach which
considered workers as a valuable resource.
As a result of these principles and studies , Human resource management became increasingly line
management function , linked to core business operations. Some of the major activities of HR department
are listed as-
1. Recruitment and selection of skilled workforce.
2. Motivation and employee benefits
3. Training and development of workforce
4. Performance related salaries and appraisals.
Strategic Human Resource Management Approach
With increase in technology and knowledge base industries and as a result of global competition , Human
Resource Management is assuming more critical role today . Its major accomplishment is aligning
individual goals and objectives with corporate goals and objectives. Strategic HRM focuses on actions
that differentiate the organization from its competitors and aims to make long term impact on the success
of organization.

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The history of
Human Resources