Directorate of distance education master of business administration

Personnel Management and Human Resource Management-
Differences
1. 
Personnel Management (PM) concepts emphasize clearly defined 
rules, procedures and courses.  These rules and customs govern 
the actions of the management.  The relationship between the work 
force and the management is governed by employment contracts and 
collective bargaining.  Collective bargaining becomes significant 
because employees and management see and treat each other as 
having divergent interests.  In PM, pluralism, that is men having 
different views is respected as a social value and the role of the union 
is legitimate.  On the other hand in HRM, open ended contracts, the 
terms of which are linked to the exigencies of business, and conflict 
is viewed as the result of negative inter-personal relations rather than 
structural contradictions.
2. 
PM does not focus on strategic management.  Its main goal is peaceful 
or good labour-management relations.  Its function is mainly reactive.  
On the other hand, HRM is a proactive function. HRM is not only 
concerned with the present organizational needs but anticipates 
future needs and seeks to release the inner potential and creativity 
of people.
3. 
The temple of PM is built on collective agreement between the 
employees and management.  Employees get standardized rewards 
based on job evaluation.  But HRM leads to individualization of 
collective relations.   Pay is linked with contribution made by the 
employee to the relation of organizational goal.  HRM seeks to develop 
the competencies of the employees so as to derive benefit from 
this development for the organization, and to integrate individual 
and organizational goals.  Skill formation and developments are 
recognized as the main hallmarks of HRD.
4. 
PM is a routine maintenance oriented administrative function;  HRM 
places emphasis on a continuous development of people at work.
5. 
PM is seen as independent function and sub-functions without 
giving due regard to organizational strategies and processes.  But 
HRM is viewed as a sub-system of the organization.  Therefore, it 
takes into account its linkages and interfaces with all other parts of 
the organization.

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6. 
PM takes a narrow view of its scope and objectives.  It concentrates 
mainly on improving the efficiency of personnel in isolation of the 
organizations.  But HRM takes a systems view and attempts not only 
in making people efficient but also in creating proper organizational 
culture.
7. 
PM emphasizes on economic rewards and traditional design of job 
simplification for motivating people for better performance.  HRM 
emphasizes on the satisfaction of higher needs of motivating people, 
autonomous work group, challenging jobs and creativity.
8. 
PM considers job satisfaction and morale as cause of improved 
performance.  It works on the basis that a happy worker is a productive 
worker.  The emphasis of HRM is the other way round.  It is based on 
the premise that better performance itself is a source of satisfaction 
and high morale.