What is the main differences betweent HR Management & Personnel Managent. Kindly guide me to know more about the cited topic. Regards.. Sekhar
From India, Madras
1From India, Madras
To understand the difference between Personnel Management and Human Resource Management in the Indian context, we have to first understand the four stages of evolution of a Business organization in India.
Many firms in India especially those involving the services of unorganized labor in unorganized private sector treat HR as a luxury that they cannot afford to maintain. In the first stage of evolution of a Business organization, a Personnel Manager of a firm/company is merely a tool that helps Management to deal with statutory requirements like following labor laws related to working conditions, EPF, ESI etc.
They don’t even want a qualified HR professional to deal with this work. They want a personnel manager to maintain payroll records, salaries & wages paid to employees and workers and to deal with statutory authorities and to file statutory returns with government authorities.
In the second stage of evolution of a firm/company, the firm/company realizes the importance of a qualified man, to get rid of the back-office work and concentrate more on Line functions or activities. They feel, if they have someone looking after the needs of personnel and office administration and statutory work related to personnel and government departments (like submission of returns), they can concentrate better on their businesses. So they employ Personnel Managers.
During the first two stages they are only Personnel Managers, the firm/company has not yet realized the importance of Organization Development, Training, Human Resource Development etc.
In the third stage of Evolution, they have enough profits to totally comply with all statutory obligations relating to wages, social security measures of employees, workers etc., like PF, Pension, Gratuity etc., which they tend to overlook during first two stages of evolution. That means even in the second stage of evolution of a firm/company, the firm/company has no money or interest to comply with all labor laws, they only want one Personnel Manager who can “somehow manage” the government authorities if they don’t fulfill their lawful obligations.
In the third stage of evolution the firm/company does not find any need to escape its lawful obligations because it has enough money to comply with all lawful obligations related to social security measures of employees, workers etc. In this stage, the company realizes the importance of employing qualified personnel for all its departments viz., Marketing, Finance, Human Resources and Technology related departments. It realizes the importance of retaining the qualified personnel apart from abiding by their lawful obligations towards social security measures related to employees, workers etc.
In the third stage of evolution we find Manager – HRD to provide training and develop skills of the personnel. Till this stage the firm/company viewed personnel as “liabilities” to the firm/company, now it treats them as “assets”. In the first and second stages of evolution the so-called Thekedaars (proprietors of firms) pay wages, salaries unwillingly as if to suggest the employees are eating away their profits. During the first two stages the firms/companies view employees, workers as merely “personnel”. During the third stage they view employees, workers as “human resources”. “Human resources” means skills.
In the third stage a full fledged Human Resources Department is evolved by the firm wherein it employs three to four Managers in HRD to look after various functions. Manager – ER deals with Industrial or Employee relations. Manager – Administration deals with salaries, wages, maintenance of records pertaining to payroll and he also deals with submission of statutory returns. Manager – HRD deals with Organization development and Training. Manager – Welfare deals with providing all safety measures and other employee services like providing good working conditions, recreation etc. The company develops its own DA regulations and Conduct rules for the employees in this stage. Some companies also take Manager – Recruitment to deal with the aspects of recruitment, interviews, selection, induction etc.
In the fourth or final stage of evolution, the Management looks beyond merely complying with statutory obligations relating to personnel and retaining the employees. They may pay double or triple than what the law requires them to pay to personnel, because better pay to personnel and giving them a ‘good social status’ is a matter of pride for the Management of a Company. They realize that if they can keep the personnel happy, satisfied the personnel themselves will act as Brand Ambassadors of the Company Image.
Companies in this stage of evolution, in the name of welfare of personnel, in fact want to push their own images into public domain, through their personnel by paying them better salaries, wages and by providing world class working conditions. If you are an employee of Tata or Godrej, then you belong to the creamy layer of Indian society. In this stage we find a big hierarchy for HR department, headed by President - HR or General Manager – HR.
They want HR Managers of the company to truly motivate by spending as much as they want to retain and absorb the best talents available in the Industry.
HR Manager/Personnel Manager is a luxury for firms in first stage. It is a compulsion & necessity in second and third stages. It is a status symbol in fourth stage. It is a matter of competition and pride for the Big companies to offer best compensation packages to their employees than their competitors can. Employees take the image, pride and social status of their Employer into society through their social status, lifestyle & standard of living. By doing so they not only act as Brand Ambassadors of the Company but also they act as Ambassadors of the “social status” of the Promoters of the Company.
As companies grow in size, they realize the importance of Human resources development. Till then they merely view employees as Personnel only who take salaries. When they grow in size they realize that employees are not merely the tools to get things done & eat away their profits, they have certain skills, they have ambitions, aspirations., hence they need motivation to perform and identify themselves with the activities of the company and the social status of the promoters. With this realization the concept of managing the affairs of employees and workers, changes from “Personnel management” to “Human resources management”.
From India, Hyderabad
Many firms in India especially those involving the services of unorganized labor in unorganized private sector treat HR as a luxury that they cannot afford to maintain. In the first stage of evolution of a Business organization, a Personnel Manager of a firm/company is merely a tool that helps Management to deal with statutory requirements like following labor laws related to working conditions, EPF, ESI etc.
They don’t even want a qualified HR professional to deal with this work. They want a personnel manager to maintain payroll records, salaries & wages paid to employees and workers and to deal with statutory authorities and to file statutory returns with government authorities.
In the second stage of evolution of a firm/company, the firm/company realizes the importance of a qualified man, to get rid of the back-office work and concentrate more on Line functions or activities. They feel, if they have someone looking after the needs of personnel and office administration and statutory work related to personnel and government departments (like submission of returns), they can concentrate better on their businesses. So they employ Personnel Managers.
During the first two stages they are only Personnel Managers, the firm/company has not yet realized the importance of Organization Development, Training, Human Resource Development etc.
In the third stage of Evolution, they have enough profits to totally comply with all statutory obligations relating to wages, social security measures of employees, workers etc., like PF, Pension, Gratuity etc., which they tend to overlook during first two stages of evolution. That means even in the second stage of evolution of a firm/company, the firm/company has no money or interest to comply with all labor laws, they only want one Personnel Manager who can “somehow manage” the government authorities if they don’t fulfill their lawful obligations.
In the third stage of evolution the firm/company does not find any need to escape its lawful obligations because it has enough money to comply with all lawful obligations related to social security measures of employees, workers etc. In this stage, the company realizes the importance of employing qualified personnel for all its departments viz., Marketing, Finance, Human Resources and Technology related departments. It realizes the importance of retaining the qualified personnel apart from abiding by their lawful obligations towards social security measures related to employees, workers etc.
In the third stage of evolution we find Manager – HRD to provide training and develop skills of the personnel. Till this stage the firm/company viewed personnel as “liabilities” to the firm/company, now it treats them as “assets”. In the first and second stages of evolution the so-called Thekedaars (proprietors of firms) pay wages, salaries unwillingly as if to suggest the employees are eating away their profits. During the first two stages the firms/companies view employees, workers as merely “personnel”. During the third stage they view employees, workers as “human resources”. “Human resources” means skills.
In the third stage a full fledged Human Resources Department is evolved by the firm wherein it employs three to four Managers in HRD to look after various functions. Manager – ER deals with Industrial or Employee relations. Manager – Administration deals with salaries, wages, maintenance of records pertaining to payroll and he also deals with submission of statutory returns. Manager – HRD deals with Organization development and Training. Manager – Welfare deals with providing all safety measures and other employee services like providing good working conditions, recreation etc. The company develops its own DA regulations and Conduct rules for the employees in this stage. Some companies also take Manager – Recruitment to deal with the aspects of recruitment, interviews, selection, induction etc.
In the fourth or final stage of evolution, the Management looks beyond merely complying with statutory obligations relating to personnel and retaining the employees. They may pay double or triple than what the law requires them to pay to personnel, because better pay to personnel and giving them a ‘good social status’ is a matter of pride for the Management of a Company. They realize that if they can keep the personnel happy, satisfied the personnel themselves will act as Brand Ambassadors of the Company Image.
Companies in this stage of evolution, in the name of welfare of personnel, in fact want to push their own images into public domain, through their personnel by paying them better salaries, wages and by providing world class working conditions. If you are an employee of Tata or Godrej, then you belong to the creamy layer of Indian society. In this stage we find a big hierarchy for HR department, headed by President - HR or General Manager – HR.
They want HR Managers of the company to truly motivate by spending as much as they want to retain and absorb the best talents available in the Industry.
HR Manager/Personnel Manager is a luxury for firms in first stage. It is a compulsion & necessity in second and third stages. It is a status symbol in fourth stage. It is a matter of competition and pride for the Big companies to offer best compensation packages to their employees than their competitors can. Employees take the image, pride and social status of their Employer into society through their social status, lifestyle & standard of living. By doing so they not only act as Brand Ambassadors of the Company but also they act as Ambassadors of the “social status” of the Promoters of the Company.
As companies grow in size, they realize the importance of Human resources development. Till then they merely view employees as Personnel only who take salaries. When they grow in size they realize that employees are not merely the tools to get things done & eat away their profits, they have certain skills, they have ambitions, aspirations., hence they need motivation to perform and identify themselves with the activities of the company and the social status of the promoters. With this realization the concept of managing the affairs of employees and workers, changes from “Personnel management” to “Human resources management”.
From India, Hyderabad
hi sekar,
i provide u information regarding the difference between HR and personnel management which i got from our respected CITEHR community.have a look and give ur feedback.
Difference between HUMAN RESOURCE DEVELOPMENT
&
Traditional PERSONNEL MANAGEMENT
Definition
Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success.
Human Resource Development - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.
HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively DISTICNT way, when compared with Personnel Management.
Main Differences between Personnel Management and HRM
• Personnel 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’s expectations, 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 line management, management development etc.
• Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.
• Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.
with thanks & regards,
stephen rosario.v
0091-9943917839
tamilnadu.
From India, Coimbatore
i provide u information regarding the difference between HR and personnel management which i got from our respected CITEHR community.have a look and give ur feedback.
Difference between HUMAN RESOURCE DEVELOPMENT
&
Traditional PERSONNEL MANAGEMENT
Definition
Personnel Management - Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success.
Human Resource Development - Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.
HRM is concerned with carrying out the SAME functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively DISTICNT way, when compared with Personnel Management.
Main Differences between Personnel Management and HRM
• Personnel 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’s expectations, 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 line management, management development etc.
• Although indisputably a management function, personnel management has never totally identified with management interests, as it becomes ineffective when not able to understand and articulate the aspirations and views of the workforce, just as sales representatives have to understand and articulate the aspirations of the customers.
• Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.
HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.
with thanks & regards,
stephen rosario.v
0091-9943917839
tamilnadu.
From India, Coimbatore
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