Personal VS. HRMMain Differences between Personnel Management and HRMPersonnel management is workforce centered, directed mainly at the organization’s employees;such as finding and training them, arranging for them to be paid, explaining management’sexpectations, justifying management’s actions etc. While on the other hand, HRM is resource–centered, directed mainly at management, in terms of devolving the responsibility of HRM to linemanagement, management development etc.Although indisputably a management function, personnel management has never totallyidentified with management interests, as it becomes ineffective when not able to understandand articulate the aspirations and views of the workforce, just as sales representatives have tounderstand and articulate the aspirations of the customers.Personnel Management is basically an operational function, concerned primarily with carryingout the day-to day people management activities. While on the other hand, HRM is strategic innature, that is, being concerned with directly assisting an organization to gain sustainedcompetitive advantage.HRM is more proactive than Personnel Management. Whereas personnel management is aboutthe maintenance of personnel and administrative systems, HRM is about the forecasting oforganizational needs, the continual monitoring and adjustment of personnel systems to meetcurrent and future requirements, and the management of changeFunctions of HRMMain functions of HRM include procurement, development, compensation, integration andmaintenance. These functions can be described as:1. ProcurementIt means hiring right number of people and right kind of people. Procurement includesfollowing sub activities as job analysis, manpower planning, recruitment, selection,placement, induction, promotion, demotion and separation.2. DevelopmentIt means enhancing knowledge, skills, attitude, abilities of employees in order to attainorganizational objectives. It includes sub activities like performance appraisal, training ofoperations, development, career planning, succession planning, career counseling.
3. CompensationIt means providing fair and equitable remuneration to employees, it includes subactivities as job evaluation and wages and salary administration.4. IntegrationIt means co-ordination, co-operation interaction and unity within teams, betweenemployee, employer, organization and government. In order to maintain harmony andharmonious relationship between them, It includes sub-activities as motivation, jobsatisfaction, grievance redressal, workers participation in management, collectivebargaining and disciplinary procedures.5. MaintenanceHRM is also responsible for maintaining employee welfare like proper canteens, restrooms, and health of the employee, safety of the employee, social security and jobsecurity of the employees.
Importance of HRM:Significance of HRM can be discussed at four levels which are as follows:1. Corporate LevelFor an enterprise effective HRM leads to attainment of its goal efficiently and effectively.HRM helps enterprise in the following ways.a. Hiring required skill set and retaining them through effective human resource planning,recruitment, selection, placement, orientation and promotion policies.b. Development of employees by enhancing necessary skills and right attitude amongemployees through training, development, performance appraisals etc.c. HRM also takes care of optimum utilization of available human resource.d. HRM also ensures that organization has a competent team and dedicated employees infuture.2. Significance at Professional Levela. HRM also leads to improved quality of work life, it enables effective team work amongemployees by providing healthy working environment. It also contributes to professionalgrowth in various ways such asb. By providing opportunities for personal development of an employeeEnabling healthy relationships among teams and allocating work properly to employees aswell as teams.3. Significance at Social Levela. HRM plays important role in the society, it helps labour to live with pride and dignity byproviding employment which in turn gives them social and psychological satisfaction.b. HRM also maintains balance between open jobs and job seekers.4. Significance at National LevelHRM plays a very significant role in the development of nation. Efficient and committed
human resource leads to effective exploitation and utilization of a nations natural,physical and financial resources. Skilled and developed human resource ensures thedevelopment of that country. If people are underdeveloped then that country will beunderdeveloped. Effective HRM enhances economic growth which in turn leads to higherstandard of living and maximum employment.Line and stuff manager’s functions:Line versus Staff Authority1. Line VS Staff Authority – Authority is the right to make decisions, to direct the workof others, and to give orders. Line managers are authorized to direct the work of subordinates. Staffmanagers are authorized to assist and advise line managers in accomplishing their basic goals. HRmanagers are generally staff managers.2. Line Managers’ HRM Responsibilities – Most line managers are responsible forline functions, coordinative functions, and some staff functions.III. Cooperative line and staff hr management:In recruiting and hiring, it’s generally the line manager’s responsibility to specify the qualificationsemployeesneed to fill specific positions. Then the HR staff takes over. They develop sources of qualified applicantsand conduct initial screening interviews. They administer the appropriate test. Then they refer the bestapplicants to the supervisor (line manager), who interviews and selects the ones he/she wants.IV. Line ManagerAuthorized to direct the work of subordinates—they’re always someone’s boss. In addition, linemanagers are in charge of accomplishing the organization’s basic goals.Line Managers’ Human Resource Management Responsibilities1. Placement2. Orientation3. Training4. Improving job performance5. Gaining creative cooperation6. Interpreting policies and procedures7. Controlling labor costs8. Developing employee abilities9. Creating and maintaining departmental morale10. Protecting employees’ health and physical conditionV. Staff ManagerAuthorized to assist and advise line managers in accomplishing these basic goals. HR managers aregenerally staff managers.Responsibilities Of Staff ManagersStaff managers assist and advise line managers in accomplishing these basic goals. They do, however,need to work in partnership with each other to be successful. Some examples of the HR responsibilitiesof staff
managers include assistance in hiring, training, evaluating, rewarding, counseling, promoting, and firingofemployees, and the administering of various benefits programs.Objectives of human resource management:The objectives of HRM may be as follows:1. To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.2. To establish and maintain sound organizational structure and desirable working relationships among allthe members of the organization.3. To secure the integration of individual or groups within the organization by co-ordination of theindividual and group goals with those of the organization.4. To create facilities and opportunities for individual or group development so as to match it with thegrowth of the organization.5. To attain an effective utilization of human resources in the achievement of organizational goals.6. To identify and satisfy individual and group needs by providing adequate and equitable wages,incentives, employee benefits and social security and measures for challenging work, prestige,recognition, security, status.7. To maintain high employees morale and sound human relations by sustaining and improving thevarious conditions and facilities.8. To strengthen and appreciate the human assets continuously by providing training and developmentprograms.9. To consider and contribute to the minimization of socio-economic evils such as unemployment, under-employment, inequalities in the distribution of income and wealth and to improve the welfare of thesociety by providing employment opportunities to women and disadvantaged sections of the society.10. To provide an opportunity for expression and voice management.11. To provide fair, acceptable and efficient leadership.12. To provide facilities and conditions of work and creation of favorable atmosphere for maintainingstability of employment.