Article 2 -Personal Management vs HRM

 1. Introduction

Most businesses or organizations employ people as a core resource. The impact of globalization has changed how the labor market both locally and abroad can be utilized to meet specific demands. Developing technology has created greater access to the ways people work and are employed. The availability and demands of today's workforce can vary greatly and are likely to continue to change, impacting how the workforce is sourced, therefore the need to better leverage people in organizations has never been more necessary.In summary, HRM will only continue to grow and evolve, and organizations need to find ways to develop or only to align their people with the practices of HRM then the organizations that do not view people as workplace resources and uniquely human resource functionality with start to experience and develop organizational cultures that may not demonstrate value as an employer should.



2. What is Personnel Management?

  • Methods of personnel management follow a traditional approach
  • Payroll, employment records, and compliance with labor laws are administrative responsibilities
  • Transactions are made and reactive rather than proactive.
  • Employment contracts and rules of conduct in the workplace are the only ones governed.

3. What is Human Resource Management (HRM)?

  • An organized and systematic way of management for individuals.
  • Centered on employee engagement, motivation, and performance.
  • Integrates talent management, education, and career development
  • Focuses on organizational culture and leadership while developing the organization.

4. Key Differences Between Personnel Management & HRM


  • Personnel management utilizes an administrative method that emphasizes personnel data, salaries, and compliance. HRM uses a strategic technique that aligns workforce management with business objectives and employee development
  • Employee Perspective - Personnel management views employees as laborers who accomplish a task, while HRM views employees as valuable assets who constructively contribute to the organization.
  • Decision-Making and Communication - Personnel management employs a top-down style in which management makes the decisions. Human Resource Management encourages open communication, along with employee contributions to the decision-making process.
  • Next difference is that in addition to training the workforce in job-specific skills (tasks), HRM stresses ongoing learning, cultivating leadership, and professional growth. Motivation and Work Culture - In personnel management

5. Why the Shift Happened

  • Economic changes: Globalization has posed a demand for a skilled and flexible workforce
  • Technological changes include automation and software-powered human resources solutions.
  • Employee expectations involve work-life balance, continuous learning, and workplace experience.
  • Organizational objectives include a focus on innovation, agility and people-first oriented manner.

6. Benefits of HRM Over Personnel Management


  • Better staff engagement and retention
  • Better alignment of personnel to the corporate strategy.
  • Better productivity and innovation.
  • Better employer branding and workplace culture

7. Conclusion


  • The evolution of people management to human resource management reflects the changing nature of work and business
  • Organizations utilizing human resource management in an evolving world do so in ways that will create more competitive and adaptable organizations
  • Making investments in human resource management is critical to long-term success with an emphasis on people as the driving force behind the growth of business.

8.References

1.Armstrong, M. (2020). Armstrong’s Handbook of Human Resource Management Practice (15th ed.). Kogan Page.
  • A comprehensive guide covering HRM principles, practices, and strategic applications.
2.Dessler, G. (2023). Human Resource Management (17th ed.). Pearson.
  • Provides a detailed comparison between traditional Personnel Management and modern HRM strategies.
3.Storey, J. (2007). Human Resource Management: A Critical Text (3rd ed.). Cengage Learning.

  • Discusses the evolution of HRM and its strategic importance.








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