The Difference Between Personnel Management and Human Resource Management

 

Since human resource management is frequently referred to as the modern form of people management, it can be challenging to distinguish between the fundamental duties of the human resource department and the personnel department.1 

The primary responsibilities shared by these two management teams include hiring, managing, orienting, and administering benefits and compensation.2 

The way employees are managed and any circumstances that may develop in regard to them are what distinguish human resource management from personnel management. The strategies used by each department to achieve employee engagement vary in their strengths and shortcomings.

 

Having a working knowledge of personnel management and human resource management

Although human resource management and personnel management may have comparable duties, their methods of operation are different. Depending on the needs for people management within an organization, each strategy offers value and has the potential to be successful. The majority of human resource management practices are rule-based, providing uniform benefits and training while compensating employees annually for good performance. It prefers to follow a standard professional practice and takes a reactive approach to issues. Human resource management makes the decision to show appreciation for their staff by offering appealing benefit alternatives and thorough onboarding, as well as benefits like flexible hours and a positive workplace environment. It thrives on being proactive; any situation that can lead to a conflict is avoided by effective management, communication, and training.3

 

Similarities between personnel management and human resource management

Hiring

The employment of new employees, whether from within the firm or from the outside, is the responsibility of both the human resource management team and the personnel management team.4 Both management teams will go through the steps of analyzing CVs, noting the applicant's technical talents and work ethic, and working with other departments as needed if external hiring is being done.5 The management group has a range of options when making internal hires. Depending on the department, this might entail making the job opening visible to all employees, asking managers to suggest high-performing candidates, choosing candidates from a database of knowledge, skills, and abilities (KSA), or using succession planning, in which workers are prepared for promotion roles.6

 

Employee orientation

Both the personnel management team and the human resources management team are expected to acquaint a newly hired employee with the business. This usually entails reporting their pay to the appropriate insurance provider, tax office, and social security office.7

 

Managing employees

Conflict resolution in the workplace is the responsibility of the human management team and the personnel management team.8 Any information relating to worker security or general corporate operations, such as mergers or acquisitions, must be shared by both management teams.9

Compensation and benefits

A critical element in ensuring employees' contentment with the organization is developing the appropriate perks for them. Employee remuneration and benefits are set up with the help of human resource management and personnel management. The two management teams are frequently in charge of processing and managing payroll as well as determining and disbursing any necessary bonuses. The people management team oversees benefit programs, which are typically in the form of pensions and private health insurance.10

 

Differences between personnel management and human resource management

Hiring

Hiring in people management typically entails hiring from several different organizations. One person or a group of persons can carry out this.11 Regardless of the person's skills and personality, candidates are evaluated according to how closely their CVs meet a strict tick list.12 The corporate hiring manager, a relatively new position in human resource management, who is aware with the particular requirements of the firm or organization, is preferred when employing employees according to the human resource management technique.13 This process makes sure that the new person not only has the abilities necessary to function satisfactorily, but also matches the organizational culture.14

Employee orientation

When an employee joins an organization, the main goal of the orientation process for the people management staff is to review and sign the necessary papers with them. This paperwork is organized according to a conventional structure, and it contains an employee handbook that lists all anticipated employment regulations and practices.15

The human resource management team, on the other hand, approaches employee orientation in a more loving manner. The company provides adequate training for new hires and, on occasion, presents them with chances like official mentoring programs and meet-and-greets with other workers.16

Managing employees

Personnel management protocol, which has been in use for many years and favors structure and rhythm, has a tendency to adopt a very traditional approach when managing staff. Employees must adhere strictly to the business code of conduct under this traditional structure.17 From the moment they are hired until, and including, when they are transferred, promoted, or depart the organization, this approach is used.18 Through the employee handbook provided to them during their first week of employment, employees are required to familiarize themselves with these procedures and norms of conduct.19

Human resource management takes a more progressive tack by relying on connections to maintain a constant work flow and flourishing production. To ensure effective communication between managers and employees, the team is present.20 For the benefit of

Compensation and benefits

Personnel management typically abides by company policy blindly. By prohibiting promotions above one wage grade and limiting annual increases within a compensation structure, employee benefits are frequently restricted.22 Through a scheduled pay grade range, which enables the employee to advance in pay grade at a steady pace (often one pay step per year of service), this is done to assure stability and promote employee incentive.

Although consistency is important in human resource management as well, this strategy puts more emphasis on employee growth than business policy. Human resource management is aware of the value of rewarding employees for their work, whether it takes the form of a pay increase or a competitive benefits package.23

 

Conclusion

An improvement over personnel management developed by human resource management has all but eliminated the latter's flaws. It is very important in this era of fierce competition when every firm must prioritize its workforce and its requirements.

Any business must manage its employees effectively. Compared to personnel management, human resource management is far more proactive. Human resource management takes a more strategic approach, predicting the demands of the organization and continuously monitoring and changing all systems. Personnel management is concerned with maintaining all administrative and personnel systems.

Nowadays, it is quite difficult to keep good employees around for an extended period of time because they are completely aware of their rights and any company cannot treat them like machines. Therefore, HRM has developed to bring together the organization and its employees in order to achieve a shared objective.

 

References

https://www.getsmarter.com/blog/career-advice/the-difference-between-personnel-management-and-human-resource-management/

·        ¹ (Nd) ‘Human resource management’. Retrieved from Business Dictionary. 

·        ² Leonard, K. (Oct, 2018). ‘Personnel vs. human resources’. Retrieved from Chron.

·        ³ Leonard, K. (Oct, 2018). ‘Personnel vs. human resources’. Retrieved from Chron.

·        ⁴ Van Vulpen, E. (Jan, 2019). ‘15 key human resources roles’. Retrieved from Digital HR Tech.

·        ⁵ Ikande, M. (Nov, 2017). ‘Functions of personnel management in an organization’. Retrieved from Legit.

·        ⁶ Erickson, R, Moulton, D, and Cleary, B. (Jul, 2018). ‘Are you overlooking your greatest source of talent?’. Retrieved from Deloitte.

·        ⁷ (Mar, 2019). ‘Personnel management – tasks, functions and goals’. Retrieved from Ionos.

·        ⁸ Leonard, K. (Oct, 2018). ‘Personnel vs. human resources’. Retrieved from Chron.

·        ⁹ Van Vulpen, E. (Jan, 2019). ‘15 key human resources roles’. Retrieved from Digital HR Tech.

·        ¹⁰ (Apr, 2019). ‘Will technology help your human resource management process?’. Retrieved from Kissflow.

·        ¹¹ Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.

·        ¹² Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.

·        ¹³ Heathfield, S. (Jun, 2019). ‘What does a hiring manager do?’. Retrieved from The Balance Careers.

·        ¹⁴ Vavruska, D. (Feb, 2019). ‘Why Determining “Culture Fit” Is So Important in the Hiring Process’. Retrieved from Impact.

·        ¹⁵ Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.

·        ¹⁶ (May, 2019). ‘Onboarding new hires is the key to retention’. Retrieved from Human Resources Today.

·        ¹⁷ Leonard, K. (Oct, 2018). ‘Personnel vs. human resources’. Retrieved from Chron.

·        ¹⁸ (Mar, 2019). ‘Personnel management – tasks, functions and goals’. Retrieved from Ionos.

·        ¹⁹ Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.

·        ²⁰ (Mar, 2019). ‘11 human resources myths your HR department wants to dispel’. Retrieved from Forbes.

·        ²¹ Mayhew, R. (Mar, 2019). ‘Responsibilities of the line managers in HR’. Retrieved from Chron.

·        ²² Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.

·        ²³ Heathfield, S. (Jan, 2019). ‘Personnel management: the difference between personnel management and human resources’. Retrieved from The Balance Careers.