Submitted by:

Kyle Boquilon Golindang

Written Review/ Synthesis on Comparison of Personnel Management and Human Resource

Management

It has been said that 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 (Leonard, K. (Oct, 2018). I

strongly believed that Human Resource Management is the most effective way of managing

people than Personnel Management.

Firstly, let us talk about two approaches in employee management. They are the Human

Resource Management (HRM) and Personnel Management. Although these two approaches

seem different at a glance and on the surface, they are somewhat similar to one another in

quite a few ways.

Similarities between Human Resource Management & Personnel Management are:

a) Both models emphasize the importance of integrating personnel/HRM

b) Both models emphasize the importance of individual fully developing their abilities for their

own personal satisfaction to make their best contribution to organizational success

c) Both models identify placing the right people into the right jobs as an important means of

integrating personnel/HRM practice with organizational goals

Human Resource management is often referred to as Personnel management. It is a part of

management process which develops and manages human elements of the enterprise. Personnel

management can be defined as a phase of management which deals with the effective control and

use of manpower or human resources.

 Although HRM and Personnel Management are two separate approaches with different

names, some of the basic responsibilities remain the same. Both approaches are of equal

importance and effectiveness if they are implemented and adopted in the proper way.

However, even if they are similar in many ways, I am firmly convinced that Human Resource

management is far more effective than Personnel Management for the following reasons;

Firstly, according to Leonard, K. (Oct, 2018) 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 while 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. Furthermore, as stated by Heathfield, S. (Jan, 2019) Human resource

management understands the value of an employee who is recognized for their performance,

whether that be in the form of a pay raise or even an impressive benefits package. It is known
that the basis of pay of Personnel Management is through job evaluation while Human

Resource Management gives incentives through performance based. Moreover, as delivered

by Commissioner Nieves L. Osorio during the 2014 HR Symposium held April 24, 2014 at

Cebu Waterfront Hotel, she emphasizes that HR processes are integrated and form part of the

agency strategy. It is strategic when individual performance is linked to the achievement of

organizational goals. Most importantly, it is strategic when there is a results-based

performance monitoring system. In the Philippine context, we have this in the form of the

Performance-Based Incentive Scheme or the Performance-Based Bonus, also widely known

as the PBB which is a HR fucntion. Moreover, according to Ahhamad(2017) the main

problem with the personnel management view is that it leaves strategic component of the

possible HRM role. It must include responsibility for training and organization development.

On the other hand, these are not included in personnel management. Nor is the performance

management system approach to developing employees and their careers.

Lastly, Human resource management is far more proactive than personnel management.

Personnel management focuses on the maintenance of all personnel and administrative

systems, whereas human resource management has a more strategic approach, forecasting the

organization’s needs and continuously monitoring and adjusting all systems.

In conclusion, Human Resource Management is the most effective way of managing people

than Personnel Management for Human resource management was developed as an extension

of personnel management, with the objective of fulfilling the gaps present in the traditional

approach. It is very important for organizations to incorporate human resource management

because there is very high competition in the present times, and it is imperative for every

organization to give priority to employees and their needs. Hence, human resource
management is vital as it makes sure that the rights and requirements of employees are

considered and aligned with the objectives of the organization.

References:

(Nd) ‘Human resource management’. Retrieved from Business Dictionary. Accessed 20

May 2019

Leonard, K. (Oct, 2018). ‘Personnel vs. human resources’. Retrieved from Chron.

Ahammad, Taslim. (2017). Personnel Management to Human Resource Management

(HRM): How HRM Functions?. Journal of Modern Accounting and Auditing. 13.

10.17265/1548-6583/2017.09.004.

http://www.csc.gov.ph/speech/283-strategic-hr-the-philippine-government-perspective.html

https://www.researchgate.net/publication/321651611_Personnel_Management_to_Human_R

esource_Management_HRM_How_HRM_Functions

http://www.management-papers.com/discuss-the-similarities-between-hr-management-and-

personnel-management.html
https://www.termscompared.com/difference-between-personnel-management-and-human-

resource-management/