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Comparison Between Human Resource Management And Personnel Management Commerce Essay

Our group had decided to take the subject related to the phrase “ the same vino, different bottles ” for our research paper. It ‘s a comparing between Human Resource Management and Personnel Management since there is rather a batch of confusion in understanding these two footings. Hence, in this research paper we will seek to explicate clearly what is meant by the term Human Resource Management ( HRM ) and Personnel direction ( PM ) and clear up the differences and similarities between both of them.

At the beginning of our research paper, general definitions sing to related footings in this field will be brought up as followers: Management, HRM, PM. Subsequent to those definitions will be our critical ratings of the difference and besides the similarities between HRM and PM so that it will run into the research paper ‘s demands. Our statement in favour to one of the attack to pull offing employees will be brought frontward right before traveling to the decision. On top of that we have clear and simple illustrations to strongly endorse up and warrant our position along our research paper.


Human resource or work force is undeniably an organisation ‘s most of import plus. It is the factor of production that can find the success of a corporation. However, how human resource could be managed in a proper and efficient manner in order to keep and better its quality is besides a critical key for the corporation. Therefore, we would wish to do some basic constructs by giving out the definitions on the topic of pull offing people in organisation:

What is Management?

It is hard to give any general definitions of direction, as its range is rather big and assorted within forces, occupations and organisations. Management can be looked from the simple position that is to acquire things done through others ( resources ) or besides refer to the planning, commanding, and decision-making maps within organisations. However, the term Management will be ideally embraced if we divide direction maps into forces or people maps, undertaking maps and system maps.

Personnel/people maps

Choice and enlisting

Training and development

Reding and advice

Disciplinary actions

Performance assessment and appraisal

Pay and fillip appraisal

Undertaking maps

Supervision and deputation

The definition of work functions and undertakings

Merchandise development

New concern

Selling and merchandising

Quality control

System maps

Communicating and informing

Budgeting and bing


Goal scene

Evaluation and reappraisal

No affair what sort of maps in which the directors are involved, they are all designed for the intent of accomplishing a certain ends if they are applied efficaciously.

Personnel Management

PM is considered as an independent map of an organisation. It is defined to hold the duties of administrative concerns. PM is a construct that can be handily related to the old theoretical account of organisation – bureaucratic. It is run with less flexibleness, and higher grade of centralisation and formalisation. Sing to administrative concerns, their chief maps are deciding struggles and pass oning with employees, puting forces demands, enlisting, orientation, preparation, carry oning occupation analysis, trade with the rewards and wages, provided the public assistance and inducements for all employees every bit good. However, the chief function of PM somehow is said merely about “ hire and fire ” to stop up with suited employees instead than paying and developing issues, hence it becomes deficiency of support and credibleness to the employees, “ It is non surprising so that forces direction has an digesting job of set uping credibleness. In the decennary of the endeavor civilization and into 1990s HRM is being presented as a theoretical account of pull offing people at work that is more believable than Personnel Management. ” ( Legge, K, 1995, p28 )

Human Resource Management

Back to the late of 1980s when HRM was bit by bit replacing PM, this development had raised a batch of attendings since an impressive figure of companies were seemingly taking HRM as the attack to pull offing employees. The same as Management term, HRM has assortment of definitions:

“ Human resource direction involves all direction determination and patterns that straight affects or act upon the people, or human resources, who work for the organisation. Human resources direction is a important strategic lever and the beginnings of sustained competitory advantage. ” ( Barney, 1995 )

In HRM, human resource is greatly emphasized as valuable assets of the organisation and the director must hold strategic programs to non merely maintain up the quality and productiveness but besides to better the conditions and working environment, do them as incentives to make the rating standards “ maximal use ” .

Furthermore, to do sense of the significance of HRM, there are two dimensions of HRM that we can see. The first is a “ soft-hard ” dimension depending on if the cardinal point is on human resource and single endowment use or on direction with the schemes and quantification, “ Human Resource Management has its difficult and soft dimensions. What is striking is that the same term is capable of signaling diametrically opposite set of message. The difficult face of Human Resource Management emphasizes the quantitative, calculating and concern strategic facets of pull offing the human resources in as rational a manner as for other factor while the soft face emphasizes communicating, motive and leading. “ ( Storey, J, 1987 cited by Storey, J and Sisson, K, 1996, p8 ) . The 2nd is a “ loose-tight ” dimension depending on whether the definition is general or precise.





A theory of HRM

Strategic HRM

( Human resources )

( Management )

Re-titling of forces section

The ends of HRM are to the full integrated into strategic planning, which are committedness ( brings the employee through the end of organisation and to derive behavioural committed ) , flexibleness ( on the point of adaptative and receptive ) , and quality ( high quality of services, staff, goods ) . HRM counts people as the most of import plus of the organisation and concentrate on carry throughing their demands to better the organisation public presentation, “ The impression of human resource direction is used in this book to mention to all those activities associated with the direction of the employment relationship in the house. The term “ employee dealingss ” will be used as an tantamount term as will the term “ labour direction ” . ( Boxall and Purcell 2003 )


In general, even professional directors in direction field have their ain different perceptual experiences in the function between HRM and PM. Many of them have the sentiments that those two types of direction are really the “ same vino, merely different bottle ” as they are both concerned with the same map of “ obtaining, forming, and actuating human resources required by organisation ” ( Haslinda, A. , 2009 ) , but there are besides some who believe that HRM is wholly a new term comparison to PM, therefore these two footings should non be used interchangeably. As a consequence, HRM and PM are defined in many different ways harmonizing to authors ( Beer and Spector, 1985 ) . We are traveling to analyse each attitude in the undermentioned paragraphs.

The differences between Human Resource Management and Personnel Management

It is said that the difference between Human Resource Management and PM is fundamentally on doctrine. Human Resource Management is more concerned with how people ( employees ) should be managed to achieve the organisation ‘s ends, non merely limited to certain specific responsibilities. In contrast, PM focuses more on administrative subject, duties and conformity from the employees.

Organic signifier is Human Resource Management ‘s preferable construction. It is flexible, adaptable and single in a level construction with lone one or two degrees of direction whereas the PM ‘s preferable signifier of organisation as bureaucratic/mechanistic which emphasize on formalisation and “ characterized by rational, purposive hierarchy, impersonal decision-making, subdivision into managerial places and specialisation of labour ” ( Minh, D. , 2007 ) .

Focus merely on administrating people, the scope of PM is comparatively narrow comparison to the scope of Human Resource Management since it outlooks the organisation as a whole and put the cardinal point in organizing a positive and active environment.

A human resource director should be able to expect and place the possible jobs that might originate in the bring forthing and be aftering procedure, promote high employee engagement in determinations in order to quickly react to alterations in the concern environment and the clients ‘ demands. He/She focuses on conformance and looks for committedness alternatively of conformity and control. More than probably, the human resource director has the inclination to hold a more personal relationship with his or her employees in order to carry on a high productiveness. At the same point, PM is by and large depicted as reactive by merely supplying the necessary responses one time jobs come up. It does non work with specific strategic programs to forestall the jobs from go oning but more of a waiting for and work out them out. In this mode, PM consequences in somehow making confusion, defeat for the employees and as a effect, an unseeable hurdle between employees and direction squad will be made as good. And it besides relates to the control system called self-denial of Human Resource Management. They get themselves involved ; interact straight with employees to come up their ain determinations alternatively of seeking “ external control ” that exists in PM.

The human resource director is considered as accelerator by making the environment that can actuate the employees by acknowledgment and challenging. By contrast, PM is perceived as seting a brake on employees ‘ inventions and creativeness because it motivates the employees with wages, occupation simplification and so on ( Tripathi, P. C. , 2002 ) .

In PM, the rating standard is to minimise your cost and disbursals. By contrast, HRM aims to maximise every bit much as possible the use of employees

Personnel Management is considered non to be influenced by the organisation, in other word it is run as an independent portion from organisation map while HRM is taken into history as a constitutional portion. PM responsibilities are the lone district of Personnel Department. Nevertheless, HRM involves all the key directors ( senior ) with different activities to develop the capablenesss of all line directors to transport out the forces maps.

The similarities between Human Resource Management and Personnel Management

Since it comes to the phrase of “ The same vino ” , HRM and Personnel Management are considered as “ Human Resource Management is merely a re-titling of the forces section. As old vino in new bottles, this may function the utile map of giving a slightly wearied forces section a new and more modern-day image. “ ( Guest, Personnel and HRM: can you state the difference? , 1989 ) . With this point, it is said that HRM it merely new name of PM which means HRM is version on PM with some other betterments. This happened in USA during the clip of alteration from bluish neckband to white neckband during 1980s. In simple account, HRM is “ good ” PM and described in a “ stylish manner ” .

The inquiry is: Are they truly similar? “ HRM is regarded by some forces director as merely a set of initials or old vino in new bottles. It could so be no more and no less than another name for forces direction. “ ( Amstrong, 1987 ) .

The list of similarity between HRM and PM:

HRM schemes have the same thing as PM schemes, such as flow the concern scheme.

PM and HRM has same undertaking on pull offing people, giving advice and support to director to transporting their occupation.

The soft version of HRM and the values of Personnel holding the same values, such as regard, equilibrating single and organisational demands, developing people, achieve satisfaction of organisational and single, and to accomplish organisational aim.

They are both holding the same map on fiting people into organisational or covering with “ puting and developing right people for the right occupations as an indispensable procedure. ” ( Legge, 1995 ) .

They have the same scope of choice, analysis, preparation, rewarding, public presentation direction, and direction development

PM and soft version of HRM have the same position of holding of import communicating within an employee dealingss system.

“ The same vino, merely different bottles ” and statement in favour of one attack to pull offing employees

Take the differences and similarities between PM and HRM into history, we have agreed that PM and HRM really have got the same nucleus content, which refer to “ the same vino ” . However, this vino is put in different bottles for a ground. The ground is that it has got different gustatory sensations from different “ vintage twelvemonth ” and “ agitation procedure ” . Nowadays HRM has its ain images, HRM can be deccribed as a “ position on forces direction and non personnel direction itself. ” ( Henry and Pettigrew, 1990 ) . HRM has efficaciously fit the demands and brought up new thoughts and pratices on utilizing people to achievie the ends which PM could non. As “ HRM is to be taken earnestly, forces director must give it away ” A ( Guest, 1989 ) and during 1970s, people believe “ forces directors are still hapless at pull offing alteration ” A ( Guest, 1989 ) , HRM was taking over, easy but necessarily. In the HRM maps, as reference above, there are three indispensable constituents to brings HRM better than PM, which are supported from cardinal leading, a strong civilization ( formed by the establishing male parent / female parent or present leading ) , conscious/ cognizant scheme to prosecute success and effectual use of human resource. With these three constituents, HRM was readily available for the companies to use. Apparently, the gustatory sensation of the consumer has changed and so does the vino. With all its key characteristics presented in a more utile and suited manner, we strongly put our belief in HRM that it is the better signifier to command the people within the organzization and company.


There is no uncertainty about using HRM is more valuable and powerful manner for the director to direct the whole organisation through employees compared with PM. HRM presents a new position on set uping a scope of organisational aims in a strategic manner to escalate the public presentation of employees in the accomplishment of every ends.

In general, HRM is a broader extent of PM, which covers all the breaches and sustains the basic points that existed in PM. In world, nowadays the term PM was no longer used in any companies and organisations due to its out-of-date characteristics. HRM has come and conquered.

However harmonizing to David Lewin, ( 2003 ) presents since globalisation occurred, there have been many states where high-involvement HRM patterns seemingly do n’t suit because they encounter the troubles of cultural values, usage, history and legal restraints. HRM has had its old life every bit PM as it is for certain that another transmutation procedure is taking topographic point. Human resource sections are excessively internal to the organisation and excessively unconnected to marketplace regulations to run their activities as profitable concerns. And whatever might be the following signifier of direction in footings of people or forces map, it is likely jointing the additions to be made by leveraging the similarities.

“ Fully prosecuting of the twenty-first century work force is the lone manner leaders can drive their organisations to their ends and missions ” ( Hank McKinnell, Chairman and CEO, Pfizer Inc. )


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