Human resource management is the new version of personnel management. The aspect of management that is concerned with the workforce and their relationship with the entity is known as Personnel Management. Human Resource Management is broader in scope than Personnel Management. There is no any watertight difference between human resource management and personnel management. The main difference between Personnel Management and HR Management lies in their scope and orientation.
However, there are some differences in the following matters.
(1) Personnel management is a traditional approach to managing people in the organization. Human resource management is a modern approach to managing people and their strengths in the organization.
(2) Personnel management efficient management is given priority. In HR Management human values and individual needs are given priority.
(3) Personnel management assumes people as input for achieving the desired output. Human resource management assumes people as an important and valuable resource for achieving the desired output.
(4) Personnel administration, labor relation, and employee welfare are major functions of personnel management. Acquisition, development, utilization, and maintenance of human resource are major functions of human resource management.
(5) Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/teamwork.
(6) Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.
(7) In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee’s participation, authority, decentralization, competitive environment etc.
(8) Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee’s participation.
(9) Personnel management is concerned with the personnel manager. Human resource management is concerned with all level of managers from top to bottom.
(10) Personnel management is a routine function. Human resource management is a strategic function.
(11) Under personnel management, personnel function is undertaken for employee’s satisfaction. Under human resource management, administrative function is undertaken for goal achievement.
(12) Personnel management focuses on personnel administration, employee welfare, and labor relation. Human resource management focuses on acquisition, development, motivation, and maintenance of human resources in the organization.
(13) In Personnel Management organizational goal is achieved and employers are satisfied. In HR Management organizational goal is achieved and both employers and employees are satisfied.