Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and

providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.

The administrative discipline of hiring and developingemployees so that they become more valuable to theorganization. Human Resource management includes (1) conducting jobanalyses, (2) planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting andtraining, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraisingperformance, (8) resolving disputes, (9) communicating with all employees at all levels. Formerly called personnel management.
Difference between hrm, hrd, personnel management

The earlier version is personnel mgt. In ancient days

people/labourers/employees are treated as commodities who used to make products. The entire industry is focused or the spot light is on products & productions. man treated as the means to produce these. Earlier it is only salary/wages distribution, so welfare, canteen etc. comes under PM. Main duty is to recuit and terminate, in b/w look thru various labour legislations, esi, other forms etc. During those days the PM manager is doing all these. In HRM which actually started after Hawthrone expts by Elton Mayo. In HRM employee is the focus. First give importance to HR, and the theory is that by keepng an employee satisfied we can achieve the desired product or production or the goal can be met. HR managers are focused on Trg& Dvpt, Employee Development /HRD etc. HRD is nothing but a part of HRM.

2-

Personnel management can be simply explained as "Play by rules". There would be some pre-determined laws, rules and regulations which are supposed to be followed by the workers. If not followed reprimands and punishments would follow. This type of management is best suited for manufacturing industries where the employee education level is low and they are in need of personnel to manage them. On the other hand, HRM is a type of management where the employees are considered as on of the assets of the company. They are not just considered as means of producing something but they are considered as the key role in the organization's operation. More importance is given to the people than

to the rules and regulations here. This set up works well in service based industries where creativity, customer service, knowledge, ideas are employed.
Some experts assert that there is no difference between human resources and personnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions. For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying with employment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization. When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and

develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company's workforce. Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically the sole responsibility of an organization's personnel department. With human resources, all of an organization's managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel related tasks. As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work

responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators. Read more: http://wiki.answers.com/Q/Difference_betw een_human_resource_management_and_personne l_management#ixzz1Pq7orKjQ

Difference between Human Resource Management and Personnel Management

resource management is concerned with people centric issues in management. The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities approach also to include employee employee managing benefits records your and and

compensation,

personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out

these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. DIFFERENCES ALTHOUGH management we examine BETWEEN both (HRM) critically, human and there HRM AND

PERSONNEL MANAGEMENT resource personnel are many

management focus on people management, if differences between them. Some are listed below:

i)

Nature

of

relations: The nature of

relations can be seen through two different perspective views which are Pluralist and Unitarist. difference There is a both clear distinct in between because

personnel management, the focus is more on individualistic where individual interest is more than group interest. The relationship between management and employees are merely on contractual basis where one hires and the others perform. Whereas, HRM focuses more on Unitarist where the word "uni" refers to one and together. Here, HRM through a shared vision between management and staff create a corporate

vision and mission which are linked to business goals and the fulfillment of mutual interest where the organizations needs are satisfied by employees and employees' needs are well-taken care by the organization. Motorola and Seagate are good examples of organizations that belief in this Unitarist approach which also focuses in team management and sees employees as partners in an organization. Relation of power and management: The distribution of power in personnel management is centralized where the top management has full authority in decisionmaking where even the personnel managers are not even allowed to give ideas or take part in any decision which involves "employees".

HRM,

on

the

other

hand,

sees

the

decentralization of power where the power between top management is shared with middle and lower management groups. This is known as "empowerment" because employees play an important role together with line and HR managers to make collective and mutual decisions, which can benefit both the management and employees themselves. In the fact, HRM focuses and more on TQM of approach as part of a team management with involvement participation management and employees with shared power and authority. The nature of management is focused more on bottom-up approach with employees giving feedback to the top management and then the top management gives support to

employees to achieve mutually agreed goals and objectives.

ii)

Leadership

and

management emphasizes

role: Personnel

management

much on leadership style which is very transactional. This style of leadership merely sees the leader as a task-oriented person. This leader focuses more on procedures that must be followed, punishment form nonperformance and non-compliance of rules and regulations such as and personal put figures and task accomplishments ahead of human factors bonding, interpersonal relationship, trust, understanding, tolerance and care.

HRM

creates

leaders This

who

are style

transformational.

leadership

encourages business objectives to be shared by both employees and management. Here, leaders only focus more on people-oriented and importance on rules, procedures and regulations are eliminated and replaced with: Shared vision; Corporate culture and missions; Trust and flexibility; and HRM needs that integrates business needs.

iii) Contract of employment: In personnel management, employees contract of employment is clearly written and employees must observe strictly the agreed employment contract. The contract is so rigid that there

is no room for changes and modifications. There is no compromise in written contracts that stipulates rules, regulations, job and obligations. HRM, on the other hand, does not focus on one-time life-long contract where working hours and other terms and conditions of employment are seen as less rigid. Here, it goes beyond the normal contract that takes place between organizations and employees. The new "flexible approach" encourages employees to choose various ways to keep contributing their skills and knowledge to the organization. HRM, with its new approach, has created flexi-working hours, work from home policies and not forgetting the creation on "open contract" system that is currently practiced

by some multinational companies such as Motorola, Siemens and GEC. HRM today gives employees the opportunity and freedom to select any type of working system that can suit them and at the same time benefit the organization as well. Drucker (1996) calls this approach a "winwin" approach.

iv) Pay policies and job design: Pay policies in personnel management is merely based on skills and knowledge required for the perspective jobs only. The value is based on the ability to perform the task and duties as per the employment contract requirement only. It does not encourage value-added incentives to be paid out. This is also because

the job design is very functional, where the functions are more departmentalized in which each job falls into one functional department. This is merely known as division on labour based on job needs and skill possessions and requirement. HRM, on the to contrary, look beyond encourages pay for organizations

functional duties. Here, the pay is designed to encourage continuous job performance and improvement which is linked to value-added incentives such as gain sharing schemes, group profit sharing and individual incentive plans. The job design is no more functional based but teamwork and cyclical based. HRM creates a new approach towards job design such as job rotation which is inter and intra-

departmental based and job enlargement which encourages one potential and capable individual to take on more tasks to add value to his/her job and in return enjoy added incentives and benefits.
There is not a really big difference between Human Resource Management and Personnel Management, in actual fact "Human Resources" have largely replaced the term "Personnel Management". Human Resource Management is basically much broader in scope than Personnel Management.

Human Resource Management could be described in two ways. Strategic and Proactive. The reason being that there strategies are ongoing and they constantly work towards managing and developing an organisations workforce. It can be seen as Proactive because of their continuous development and functions to improve the company's workforce.
Human Resource Management is the type of Management where almost everybody in Managing Position can play a part in Training and Development. They aim to have many different Managers in various departments with the necessary skills to handle employee tasks at hand.

Personnel Management can be described as reactive. The reason why I would say this is because of the way they operate. An example of this would be that they respond to demands and concerns as they are presented.

Personnel Management could also be seen as a independent way of managing. It is a sole responsibility of the organisation.

Quoted: "When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency. Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and

policies for the purposes of improving a company's workforce. Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically the sole responsibility of an organization's personnel department. With human resources, all of an organization's managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks. As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for

meeting challenges, and job creativity are seen as the primary motivators

objective

Societal objective. To be socially responsible to the needs and challenges of society while minimizing the negative impact of such demands upon the organization. The failure of organizations to use their resources for society's benefit may result in restrictions. For example, societies may pass laws that limit human resource decisions. Organizational objective. To recognize that HRM exists to contribute to organizational effectiveness. HRM is not an end in itself; it is only a means to assist the organization with its primary objectives. Simply stated, the department exists to serve the rest of the organization. Functional objective. To maintain the department's contribution at a level appropriate to the organisation's needs. Resources are wasted when HRM is more or less sophisticated than the organisation demands. A department's level of

service must be appropriate for the organisation it serves. Personal objective. To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual's contribution to the organisation. Personal objectives of employees must be met if workers are to be maintained, retained and motivated. Otherwise, employee performance and satisfaction may decline, and employees may leave the organisation.