DIFFERENCE BETWEEN PM AND

HRM
As per the Indian institute of Personnel Management (National Institute
of Personnel Management). Personnel Management or Labor
Management or Staff Management means quite simply the task of
dealing with human relationships within an organisation. The term
Human Resource at the macro level indicates the sum of all components
of human characteristics possessed by all the people. Here
characteristics refers to skills creative ability, mental and physical
stability and other psychological aspects. Human elements refers to all
the people employed, self-employed, unemployed, employers and
owners. HR at the organisational level includes the resources of all the
people who contribute their services to the attainment of organisational
goals.

The differences between HRM & PM are :-

• Nature :-

HRM is concerned with the continuous emphasis on the development of

people at work whereas PM is a routine and administrative function.
HRM is the expression of the unshakeable belief of the management of
an organisation in improving human processes on continuous basis.

• Scope :-

PM is narrow in scope whereas HRM is wider in scope. This is because

PM deals with rules and regulations made for the personnel working in
the organisation. This helps the superior to deal with their subordinate
so as to achieve its objectives whereas HRM recognises the importance
of the employees and makes the policies and programmes for the
development of the employees so as to make them the assets of the
firm.

• Focus :-
HRM has its main focus on the coordination and development of the
personnel of the organisation whereas PM focuses on the achievement
of the objectives by giving more powers and authority to the managers.

• Reactive/Proactive :-

HRM is a proactive function and is not only concerned with the present
organisational needs but anticipates future needs and acts accordingly
whereas PM functions is mainly reactive and respond to the demands of
an organisation whenever they arise.

• Objective :-

Under HRM attempt is made not only to make people efficient but to
create proper organisational culture to utilise the efficiency whereas PM
concentrates mainly on improving the efficiency of personnel in isolation
without emphasising the relevance of efficiency in the organisational
strategies and processes.

• Dependency :-

HRM is viewed as a sub system of the organisation and takes into

account its linkages and interfaces with all other parts of the
organisation. On the other hand the PM is seen as independent function
and sub functions without giving clue regard to organisational strategies
and processes.

• Job and Salary :-

In case of HRM the salary structure is related with the performance of

employees on the other hand under the PM wage and salary is given on
the job basis.

• Position of Employees :-

HRM treats the people as an asset who are to be used and developed
for the organisation. However, PM treats the workers as a tool that is
expandable and replaceable.

• Basis of Communication :-
HRM constitutes and deals with the help of direct and systematic
communication whereas PM deals with the indirect communication.

Personnel function is headed by personnel manager who is

supposed to know rules and regulations of personnel practices and he
advises top management on personnel policies. PM is considered a
separate function like other functions. HRM is apart of every line function
which is based on the assumption that primary job of every manager is
to activating the workforce.