HRM vs PM

Khan Sarfaraz Ali*

It is evident from the enclosed reference and available literatures; Human

Resource Management (HRM) is more wide and vast rather than Personnel
Management (PM) in terms of their nature and application. HRM is more
pro-active and encompasses all functions of PM. Whereas PM is mostly
concerned with administrative affairs and procedure based. With a view to
attaining the millennium development goals (MDG) and chasing the race of
the competitive world in an integrated approach it is wise to address HRM
instead of PM.

Reference:

1. Khan Sarfaraz Ali and Dr.Nasima Khatun. A Handbook on HR Solution

(2009). pp: 7-9 (ISBN: 978-984-33-0505-3). Dhaka.

Personnel Management and HRM

Early employee specialists were called Personnel managers (or Personnel
administrators), and this term is still in use. Personnel management (PM) refers to a
set of functions or activities (e.g. recruitment, selection, training, salary
administration, industrial relations) often performed effectively but with little
relationship between the various activities or with overall organization objectives.
On the other hand, HRM has existed in one form or another since the beginning of
time. Certain HR functions, even though informal in nature, were performed
whenever people came together for a common purpose. In recent decades,
however, the processes of managing people have become more formalized and
specialized. As a result, a growing body of knowledge about these processes has
been accumulated by practitioners and scholars.

∗
Associate Management Counselor, Bangladesh Institute of Management (BIM)
Cell: 00-88-01817528067, e-mail: sarfarazbim@gmail.com
Distinction between PM and HRM
Literally there is several similarities between PM and HRM. But in reality there are some
differences between these two concepts. Distinction between PM and HRM are shown
below:

Dimension PM HRM
Perspective Short-term perspective Long-term perspective
Point of View Compliance The psychological contract based on
commitment
Control External control Self-control
Perception Pluralist perspective A utilitarian perspective
Role Specialist role Strategic role
Outlook Cost-minimization Maximum utilization
Employment contract Careful delineation of Aim to go beyond contract
written contracts
Rules Importance of devising Can do outlook, impatience with
clear rules rule
Guide to management Procedures Business need
action
Behavior referent Norms/customs and Values/mission
practices
Managerial task vis-à-vis Monitoring Nurturing
labor
Initiatives Piecemeal Integrated
Job design Division of labor Team work
Conflict handling Reach temporary truce Manage climate and culture
Training and development Controlled access to Learning organizations
courses
Respect for employees Labor is treated as a tool People are treated as assets to be
which is expendable and used for the benefit of an
replaceable organization
Shared interests Interests of the Mutuality of interests
organization are uppermost
Evolution Employee advocate Member of the management team

∗
Associate Management Counselor, Bangladesh Institute of Management (BIM)
Cell: 00-88-01817528067, e-mail: sarfarazbim@gmail.com