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Personnel Management vs. Hrm

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    Personnel Management (PM) and Human Resources Management (HRM) is not new to most of the organization today. In fact, PM and HRM commonly confused by most of us. People like Armstrong, M even stated that HRM is similar with PM, just a change in the name or it is perceived as ‘old wine in a new bottle’. Let’s explore what are the similarities and differences between PM and HRM, in order to find out whether the statement quoted by Armstrong is true or agreeable. Besides, we are going to look into company case study on the application of HRM In essence, HRM is about managing people.

    It includes all management decisions and actions that affect the relationship between the organization and the employees (Beer et al. , 1984). From Boxell and Purcell (2003: 2-5) sees human RM as covering all workforce group, involving line and specialist managers, incorporating a variety of management styles, involving managing work and people both collectively and individually, and embedded in industries and societies. On the other hand, K. V. Ramani (1995, p24) described Personnel Management as part of the management process which is concerned with human constituents of an organization.

    In a simpler term, this means getting the best out of the people by winning and maintaining their wholehearted collaboration. (1995, p26) Personnel management is most realistically seen as a series of activities enabling working man and his employing organization to reach agreement about the nature and objectives of the employment relationship between them, and then to fulfil those agreements. (Torrington and Chapman 1979, p. 4) This has been a key topic for discussion by numerous of author for quite sometimes, unfortunately there’s no definite answer or clear differences between HRM and Personnel Management.

    Torrington (2009, p18) perceived ‘personnel management has grown through assimilating a number of additional emphases to produce an even richer combination of experience.. HRM is no revolution but a further dimension to a multi-faceted role’ It can be argued that the similarities between personnel management and HRM are as follows: ?Personnel management strategies, like HRM strategies, from the business strategy. ?Personnel Management, like HRM, recognizes that line managers are responsible for managing people. The personnel function provides the necessary advice and support services to enable managers to carry out their responsibilities. The values of Personnel Management and at least the ‘soft’ version of HRM are identical with regard to “respect for the individual’, balancing organizational and individual needs, and developing people to achieve their maximum level of competence both for their own satisfaction and to facilitate the achievement of organizational objectives. ?Both PM and HRM recognize that one of their most essential processes is that of matching people to ever-changing organizational requirements – placing and developing the right people in and for the right jobs.

    The same range of selection, competence analysis, performance management, training, management development and reward management techniques are used both in HRM and PM. ?PM, like the ‘soft’ version of HRM attaches importance to the processes of communication and participation within an employee relations systems. From her review of the literature, Legge (1989) has identified three features that seem to distinguish HRM and Personnnel Management: Personnel management is an activity aimed primarily at non-managers whereas HRM is less clearly focused but is certainly more concerned with managerial staff. HRM is much more of an integrated line management activity whereas personnel management seeks to influence line management. ?HRM emphasizes the importance of senior management being involved in the management of culture whereas personnel management has always been rather suspicious of organization development and related unitarist, social-psychologically-oriented ideas. In short, Human Resource Management (HRM) and Personnel Management (PM) have playing an important role on the management process in today’s highly competitive business world.

    Furthermore it is also getting a significant interest in organization business strategy or management discussions for most organizations today. As far as what we can see, more and more organization aware the importance of HRM and PM which is part of the function that will lead to the organization success. Organizations intensively focus on human resource development by spending numerous company resources on recruiting and training program for its employees

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    Personnel Management vs. Hrm. (2018, Feb 23). Retrieved from

    Frequently Asked Questions

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    What is difference between HRM and personnel management?
    Personnel management focuses on the maintenance of all personnel and administrative systems, whereas human resource management has a more strategic approach, forecasting the organisation's needs and continuously monitoring and adjusting all systems.
    What is the difference between personnel and human resources?
    As the responsibilities of the department have evolved, the term human resources is the term that is used for departments that manage personnel and the resources to develop talent. Personnel refers to the actual human beings, while resources are all the tools to recruit, manage and train people to be better employees.

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