Difference Between Personnel Management and Human Resource Management

When differentiating the basic responsibilities of the human resource department and the personnel department, it’s easy to get confused, since human resource management is commonly referred to as the modern version of personnel management. The main duties these two management groups have in common are: hiring, managing employees, employee orientation, and handling compensation and benefits. The defining difference between human resource management and personnel management lies in the way in which they manage employees and any situations that may arise in relation to them. Each department approaches employee engagement with methodologies that have varying strengths and weaknesses.

Understanding personnel management and human resource management

Human resource management and personnel management may share similar responsibilities, but the ways in which they operate differ. Each method has merit and can function effectively, depending on the people management requirements within an organisation. Personnel management tends to follow a rule-based system, offering standard benefits and training, and rewarding employees annually provided that their performance is satisfactory. It approaches problems reactively, preferring to stick to a professional guideline. Human resource management chooses to honour their employees with attractive benefits options and thorough onboarding, providing perks such as flexible schedules and company culture. It thrives on proactivity: any circumstance that could result in a dispute is prevented through proper training, communication and management.

Similarities between personnel management and human resource management

Both the human resource management team and the Personnel Department team are responsible for hiring new employees from either within the company, or externally. If hiring externally, both management teams will go through the steps of reviewing CVs, taking note of the applicant’s technical skills and work ethic, collaborating with other departments if necessary. When hiring internally, the management team can take a variety of approaches. Depending on the department, this may include posting the job vacancy for all employees to see, asking managers to nominate high-performing individuals, selecting individuals from a knowledge, skills and abilities (KSA) database, or making use of succession planning, in which employees are prepped for promotional roles.

Employee orientation

Once an employee has been hired, both the human resource management team and the personnel management team are expected to introduce the employee to the company. This would typically involve registering their pay with the tax office, social security office and applicable insurance company.

Managing employees

The human management team and the personnel management team are responsible for handling any conflicting situations that may arise in the office. Both management teams are in charge of sharing any information that pertains to employee safety or overall business operations, such as mergers or an acquisition.

Compensation and benefits

Creating the right benefits for employees is a crucial step in ensuring their satisfaction in the company. Human resource management and personnel management ensures that employees are set up with the right compensation and benefits. The two management teams are often responsible for administering and running payroll, and calculating and paying any applicable bonuses. Benefit schemes, usually in the form of private medical insurance and pensions, are administered by both the human resource and the personnel management team.