Personnel Management and HRM Comparison (TCM 212)

UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus COURSE TITLE: Personnel Management COURSE CODE: TCM 212 MODULE NO.: 1 TITLE: D...

UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus COURSE TITLE: Personnel Management COURSE CODE: TCM 212 MODULE NO.: 1 TITLE: Difference between Personnel Management and HRM LEARNING RESOURCE(S): https://wperp.com/106102/hrm-and-personnel-management-differences Intended Learning Outcomes (ILOs): 1. Explain the difference between PM and HRM. 2. Discuss important factors that shape the shift from traditional to modern way of handling people in an organization. Do you wonder what the real difference is between HRM and personnel management? Personnel management is mainly about basic administrative tasks like hiring, paying, teaching, and making sure everyone gets along. HRM, on the other hand, focuses on measuring the needs of the company and constantly reviewing and changing all systems to reach a single goal. Even though a lot of people think that Human Resource Management is just a new name for personnel management, the area is more well-known in the business world. On the other hand, many experts think that staff management and human resource management are very different. TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus Today, we’ll briefly discuss human resource management and personnel management. This is so that you can integrate the right system into your business. Comparison chart: HRM vs. Personnel Management Basis For Comparison Personnel Management Human Resource Management Meaning An aspect of management that An essential branch of is concerned with employees at management that deals with work and their relationships making the optimum usage of within the company. organizational human resources to achieve organizational goals. Objective Managing people at work Working for the growth & development of the workforce Approach Traditional Modern Treatment of manpower Machines or Tools Resource & Asset Type of function Routine function Strategic function Basis of Pay Job Evaluation Performance Evaluation Management Role Transactional Transformational Communication Indirect Direct Labor Management Collective Bargaining Contracts Individual Contracts Initiatives Piecemeal Integrated Management Actions Procedure Business needs Decision Making Slow Fast Job Design Division of Labor Groups/Teams Major Functions Employee hiring, remuneration, Recruitment & staffing, Equal training, and harmony. employment opportunity, HR TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus development, Remuneration, Employee relations, Continuous growth, etc. Personnel Management Explained Personnel management is an administrative function that focuses on hiring and developing employees to become more resourceful for the company. It defines the right personnel for the right organizational activity. Furthermore, this is a traditional approach to managing employees. In some organizations, it is considered a sub-category of HR that only focuses on administration. Personnel managers supervise the hiring process and professional development of employees within an organization. They are responsible for recruiting new talent, training new employees, and supporting them as necessary during their careers. People managers are part of the HR team at many companies. However, smaller companies hire their HR pros as individual managers to do all the administrative work. TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus Personnel Management Areas of Interest PM concentrates on particular administrative HR categories. It includes planning, job analyses, paycheck distribution, performance appraisals, and benefit programs. It also deals with recruitment, screening, new employee orientation, and training. Moreover, besides, personnel managers take care of employee remuneration, dispute resolution, and keeping employees’ data secured. Importance of personnel management: Build a team of professionals Ensure smooth work interactions Minimize conflicts among dependents Optimize the onboarding experience Develop an effective employee retention strategy Since the most valuable thing a company has is its employees. However, hiring the wrong people can destroy the structure of your business. According to a study by SHRM, 72% of companies with effective personnel management practices report better employee retention compared to those without formal management structures. The PM also makes sure that well-trained pros are hired. And gives the right conditions for growth. TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus Human Resource Management Explained HRM is an organizational function that deals with the acquisition, development, motivation, and maintenance of human resources in a particular way. So, people can give their best to the company. The core objective is to build an employee-centric workplace through the systematic management of manpower. It all starts with hiring, getting started, and training. By making workers go through performance reviews, managers can figure out how valuable they are. It helps you evaluate your workers better and set the pay scale right, so you don’t take advantage of them. Additionally, this process manages the issues related to employees within a company. Such as compensation, growth, safety, benefits, etc. HRM is a complete package of employee management. This also refers to a systematic function of building team spirit and teamwork. HRM is largely responsible for developing an interactive working environment. So, people can do their tasks with great satisfaction and reach the final goal within the accolated resources. TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus Human Resource Management Areas of Interest HRM involves many different fields of study. It helps with strategic planning and making decisions, and it makes sure that all the parts of human resources work together. It also has to do with hiring people, training and developing them, and keeping the staff in good shape. Also, HRM makes sure that all of the company’s processes, such as marketing, production, finance, legal, and others, work together. Importance of human resource management: Maintain better industrial relations Develop organizational commitments Help to cope with changing environment Work closely with employee welfare Estimate future demand and act accurately So, now the key responsibility of the HR department is to improve the efficiency of the employees by prioritizing ergonomics. As the HR manager performs such important activities, he/she is very precious to your business enterprise. Detailed Comparison between Personnel Management and Human Resource Management When we talk about the difference between HRM and Personnel Management, HRM is considered much broader in scope than personnel management. Let’s look at the comparison between these two key management functions in brief detail below: TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus 01. Nature of function HRM is about making sure that people in an organization are managed as well as possible so that they can all work together to meet the company’s goal. So, the main goal of HR is to give staff the tools they need to do their best work. On the other hand, project management is a part of general management. Furthermore, the working process is traditional and routine. Therefore, it encourages every employee to give their fullest contributions to the purpose of the business. 02. Employee treatment HRM focuses on tasks that have to do with resources. So, it treats workers as resources or assets most of the time. People who work here are seen as economic, social, and mental guys. It thinks that the money spent on workers turns into money. Inside the PM, workers are treated as the same way machines, equipment, and other parts are. Also, wages, bonuses, and other rewards are counted as part of the cost of work. 03. Reactive and proactive function People who work in HRM are smart. So, they are always working to manage and create a workforce that works well together. HRM is proactive because it is made up of functions that are constantly checked and updated. It cares not only about how the company is doing right now but also about what it will need in the future. By contrast, project management is reactive. It responds according to the demands of the organization. PM performs to ensure peaceful measure management relations in the present. 04. Significant strategies HRM emphasized flexible contracts. So, the admin can modify the rules and conditions depending on the business needs. Moreover, it works hard to inspire the employees for their continuous growth. So, it helps a new employee become a good member of the team. PM is different from the case because it has rules, procedures, and contracts that must be followed. The relationship between managers and employees is based on these things. For example, union contracts and collective agreements. 05. Basic principles HRM is based on the principle that job satisfaction and good morale result in better performance. That’s why it supports its employees in every aspect. HR managers take good care of their employees’ mental health as well. Great HR leaders, for example, changed the way the office works to deal with the situation after the pandemic. As they always want to protect the health of their team and the business as a whole. PM, on the other hand, is based on the idea that a happy worker is a busy worker. 06. Dependency factor PM is an independent function. It’s not integrated with organizational strategies and processes. In this system, the job role is allocated to an individual employee. The HR department, on the other hand, tends to be an integral part of the overall company function. Here, the job roles are designated among teams so that everybody can work together towards a common goal. 07. Employee management TCM 212 | DTCM | CITC | USTP – CDO Campus  UNIVERSITY OF SCIENCE AND TECHNOLOGY of SOUTHERN PHILIPPINES Cagayan de Oro Campus PM thinks that an employee should work for the money he is paid. Employees don’t have the right to say what they think and be involved in making decisions. PM managers only check to see if the method works the way the law says it should. But they don’t pay much attention to how workers feel. Rather than understanding the situation, they are more concerned about extracting work from an employee. So, as per HRM, employee satisfaction is the highest priority. It considers employees to be the most valuable resource for the organization. That’s why the core duty of an HR manager is to provide all essential facilities to an employee for extracting the desired work. 08. Scope for Collaboration Distinguish between hrm and personnel management PM backs a different way of doing things, and the scale is very small. Inside the PM, workers are thought of as tools. This means that they are given the tools they need to do their best work for the company. And once their job is done, they could even be kicked out. Alternatively, the overall scope of HRM is comparatively wide. Considering an employee as an asset, HRM acts in the employee’s best interests ensuring mutual collaboration, sharing responsibility, rewards, etc. 09. Motivation tools Personnel management follows traditional methods to motivate its employees through economic rewards. It encourages and inspires skilled employees to provide their maximum potential to the company. In contrast, HRM is tailored toward development, where people are given opportunities to perform and improve. 10. Role of line management An organization’s personnel department is known as a staff department. It gives guidance and support to line managers on personnel issues. Instead of making plans, long timetables, and setting strategies, personnel management focuses on action. On the other hand, HRM oversees and manages employees to fulfill business goals. Moreover, it builds a connection between the management and the staff. This system also provides instruction, inspiration, and feedback to the employees on a day-to-day basis. HRM vs personnel management: In a nutshell Personnel management is a traditional way of managing employees whereas HRM is comparatively a new approach and more strategic. There are some similarities between these two ways of managing employees, but there are also some big differences. If you look at the goal of HRM, you’ll see that it strengthens the bonds between employees in a company by putting self-motivation strategies into place. In a nutshell, we can say that both HRM and PM work with employee management within a company. However, their working functions and focus points are different. To survive in today’s competitive business world, you must have a strong HR department to manage your employees. TCM 212 | DTCM | CITC | USTP – CDO Campus