MEANING OF HRM AND PERSONNEL MANAGEMENT

Personnel management can be defined as obtaining, using and

maintaining a satisfied workforce. It is a significant part of management
concerned with employees at work and with their relationship within the
organization.

According to Flippo, “Personnel management is the planning, organizing,

compensation, integration and maintenance of people for the purpose of
contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily

concerned with human resource of organization.”
Human Resource Management could be described in two
ways :

1-Strategic
2-Proactive
The reason being that there strategies are ongoing and they
constantly work towards managing and developing an organizations workforce. It
can be seen as Proactive because of their continuous development and functions to
improve the company's workforce.

Human Resource Management is the type of Management where almost everybody

in Managing Position can play a part in Training and Development. They aim to
have many different Managers in various departments with the necessary skills to
handle employee tasks at hand.
HUMAN RESOURCE MANAGEMENT V/s PERSONNEL MANAGEMENT

HRM PM

•HRM is proactive in nature. It is •PM is mainly reactive in nature.

not only concerned with the present It satisfies itself by ensuring
organizational conditions but peaceful measure management
foresees future necessities and then relations in the present.
acts appropriately.
•HRM as a resource centered •PM which is employee centred ,
activity focuses more on the aims at hiring, training,
managerial aspects in terms of compensating, and maintaining the
delegating the responsibility of existing force of the organization.
HRM to line authority and
management development.
 HRM PM
•HRM emphasizes open minded •PM emphasizes the strict
contracts, which can be modified observance of defined rules,
depending upon the demand of the procedures, and contracts that
business. Management assumes the govern the relationships between the
responsibility to motivate the workforce and the management; for
employees and constantly inspires example collective bargaining and
performance based upon team spirit. employment contracts.

•HRM is based on the principle that •PM considers job satisfaction and
better performance itself is a cause of morale as a source of better
job satisfaction and morale. performance. It works on the
foundation that a contended
worker is a productive worker.
The following points will bring out the nature of personnel
management…

•Personnel management includes the function of employment,

development and compensation- These functions are performed primarily by the
personnel management in consultation with other departments.
•Personnel management is an extension to general management. It is
concerned with promoting and stimulating competent work force to make their
fullest contribution to the concern.
•Personnel management exist to advice and assist the line managers in
personnel matters. Therefore, personnel department is a staff department of an
organization.
•Personnel management lays emphasize on action rather than making
lengthy schedules, plans, work methods. The problems and grievances of people at
work can be solved more effectively through rationale personnel policies.
•It is based on human orientation. It tries to help the workers to develop their
potential fully to the concern.
•It also motivates the employees through it’s effective incentive plans so that the
employees provide fullest co-operation.
•Personnel management deals with human resources of a concern. In
context to human resources, it manages both individual as well as blue- collar
workers.
Personnel manager is the head of personnel department. He
performs both managerial and operative functions of
management. His role can be summarized as :

•Personnel manager provides assistance to top

management- The top management are the people who decide and frame the
primary policies of the concern. All kinds of policies related to personnel or
workforce can be framed out effectively by the personnel manager.
He advices the line manager as a staff specialist- Personnel manager acts like a
staff advisor and assists the line managers in dealing with various personnel
matters.
•As a counsellor,- As a counsellor, personnel manager attends problems and
grievances of employees and guides them. He tries to solve them in best of his
capacity.
•Personnel manager acts as a mediator- He is a linking pin between
management and workers.
•He acts as a spokesman- Since he is in direct contact with the
employees, he is required to act as representative of organization in committees
appointed by government. He represents company in training programmes.
The objectives of an organization are guidelines of policies,
procedures and functions and principles are the tools to
accomplish these objectives. The main objectives of an
organization to are to get maximum satisfaction out of its
available resources. The objectives of personnel
management may be classified in to 2
(A) General Objectives:-
The statement of general objectives expresses the basic philosophy of top
management towards the labour force engaged on the work and its deep underlying
conviction as to the importance of the people in the organization and it include the
following as the most important objectives:-
(1) Maximum individual development.
(2) Desirable working relationship between employer and employee.
(3) Effective moulding of human resources as contrasted with Physical resources.
(1) Maximum Individual development:-The employer should always
be careful in developing the personality of each individual. They should be regarded
as co-owners or partners of the organization and given a due importance in the
organization. Each individual differs in nature and management should recognise
his or her individual ability and make use of such ability in an effective manner.

(2) Desirable working relationship between employer and

employee:-So that they may co-operate the management and it is possible when
there is complete mental revolution. The personnel administrator should get it
realized to the top management that labour is human being and humanly treatment
should be given on the other hand management should get it realized to workers
that they co-operate the management in accomplishing the goals of the management.

(3) Effective moulding of human resources as contrasted

with Physical resources:-Man is the only active factor of Production
which engages the other factors of Production to work. Therefore, management
should emphasize the effective utilization of human resources as contrasted with
other physical resources so that maximum production at minimum cost is possible.
(B) Specific Objectives:-

(i) Selection of right type and number of persons.

(ii) Proper orientation and introduction of new employees to the organization to
their jobs.
(iii) Organization of suitable training facilities for better job performance & to
prepare the man to accept the challenge of higher job.
(iv) Provision of better working conditions & other etc. so as to help to hold
competent and qualifier personnel in the organization.
(v) Provision of sound, fair and effective wages and salary administration and
other incentives which will result in highest possible productivity of workers.
(vi) A full & fair consideration should be given to an employee when his services
are terminated or he leaves the organization.
(vii) Good relations should be maintained with representative trade unions.
(viii) Personnel research which keeps the management equipped with recent
development and trends essential to take sound decisions without any further delay
as regards personnel matters