B.Com. (Hons.): Semester-II Paper BCH 2.
4(a): ENTREPRENEURSHIP
(General Elective) Gargi College, University of Delhi
-Nupur Tyagi
Topic: Human Resource Management: Meaning, Objectives, Scope,
Functions and Importance & Personnel Management
HUMAN RESOURE MANAGEMENT- INTRODUCTION
Before we define HRM, it seems pertinent to first define the term
‘human resources’. In common parlance, human resources means
the people. However, different management experts have defined
human resources differently. For example, Michael J. Jucius has
defined human resources as “a whole consisting of inter-related,
inter-dependent and interacting physiological, psychological,
sociological and ethical components”.
According to Leon C. Megginson “From the national point of view
human resources are knowledge, skills, creative abilities, talents, and
attitudes obtained in the population; whereas from the view-point of
the individual enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills as exemplified in the talents
and aptitude of its employees”.
Human Resource management is the most happening function as of
now. This is so because people offer competitive advantage to a firm
and managing people is the domain of HRM. An organization enjoys
competitive advantage when it is the only one which can offer a
product at a price and at quality while its competitors cannot do so.
Fast changes are taking place in the business environment. An
organization must have the ability to absorb these changes at a fast
rate than in the past, not simply to prove its competency alone but
to justify its existence in the dynamic business world as well. All
organizations, whether large or small must ensure themselves that
they have the competent people capable of accepting this challenge.
Human resource management is a relatively modern concept, which
involves arrange of ideas and practices in managing people. Human
resource is the most valuable resource in any organization because it
can function only through people. Human Resource Management
has come to be recognized as an inherent part of management,
which is concerned with the human resources of an organization. Its
objective is the maintenance of better human relations in the
organization by the development, application and evaluation of
policies, procedures and programs relating to human resources to
optimize their contribution towards the realization of organizational
objectives. . In other words, HRM is concerned with getting better
results with the collaboration of people. It is an integral but
distinctive part of management, concerned with people at work and
their relationships within the enterprise. HRM helps in attaining
maximum individual development, desirable working relationship
between employees and employers, employees and employees, and
effective modelling of human resources as contrasted with physical
resources. It is the recruitment, selection, development, utilization,
compensation and motivation of human resources by the
organization
CONCEPT OF HUMAN RESOURCE MANAGEMENT
What exactly is human resource management? Many people find
HRM to be an unclear and strange concept. ‘This is not simply
because of having variety of meanings to this term. This confusion is
mainly due to the different interpretations found in articles and
books about human resource management. HRM is the philosophy
of people management based on the belief that human resources
are extremely important for sustained business success. An
organization acquires competitive advantage by using its people
effectively and utilizing their expertise to meet clearly defined
objectives. HRM is aimed at recruiting capable, flexible and
committed people. Managing and rewarding their performance and
developing key competencies.
Meaning and Definition
Human Resource Management is the process of recruitment,
selection of employee, providing proper orientation and induction,
providing proper training and the developing skills, assessment of
employee (performance of appraisal), providing proper
compensation and benefits, motivating, maintaining proper relations
with labor and with trade unions, maintaining employee’s safety,
welfare and health by complying with labor laws of concern state or
country. Many great scholars had defined human resource
management in different ways and with different words, but the
core meaning of the human resource management deals with how to
manage people or employees in the organization. .
Edwin Flippo defines- HRM as “planning, organizing, directing,
controlling of procurement, development, compensation,
integration, maintenance and separation of human resources to the
end that individual, organizational and social objectives are
achieved.”
The National Institute of Personal Management (NIPM) of India has
defined human resources – personal management as “that part of
management which is concerned with people at work and with their
relationship within an enterprise. Its aim is to bring together and
develop into an effective organization of the men and women who
make up enterprise and having regard for the well – being of the
individuals and of working groups, to enable them to make their best
contribution to its success”.
Thus, HRM can be defined as a process of procuring, developing and
maintaining competent human resources in the organisation so that
the goals of an organisation are achieved in an effective and efficient
manner. In short, HRM is an art of managing people at work in such a
manner that they give their best to the organisation for achieving its
set goals.
SCOPE OF HUMAN RESOURCE MANAGEMENT
1. Personnel Aspect
Human Resource Planning – It is the process by which the
organization identifies the number of jobs vacant.
Job Analysis and Job Design – Job analysis is the systematic
process for gathering, documenting, and analyzing data about
the work required for a job. Job analysis is the procedure for
identifying those duties or behavior that defines a job.
Recruitment and Selection – Recruitment is the process of
preparing advertisements on the basis of information collected
from job analysis and publishing it in newspaper. Selection is
the process of choosing the best candidate among the
candidates applied for the job.
Orientation and Induction – Making the selected candidate
informed about the organization’s background, culture, values,
and work ethics.
Training and Development – Training is provided to both new
and existing employees to improve their performance.
Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions,
transfers, incentives, and salary increments are decided on the
basis of employee performance appraisal.
Compensation Planning and Remuneration – It is the job of
Human Resource Management to plan compensation and
remunerate.
Motivation – Human Resource Management tries to keep
employees motivated so that employees put their maximum
efforts in work.
2. Welfare Aspect – Human Resource Management have to
follow certain health and safety regulations for the benefit of
employees. It deals with working conditions, and amenities like
- canteens, crèches, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation
facilities, etc.
3. Industrial Relation Aspect – HRM works to maintain co-ordinal
relation with the union members to avoid strikes or lockouts to
ensure smooth functioning of the organisation. It also covers -
joint consultation, collective bargaining, grievance and
disciplinary procedures, and dispute settlement.
IMPORTANCE OF HUMAN RESOURCE MANAGEMENT
Human Resource Management is related with effective
utilization of human resources. The importance of HRM can be
discussed as:
1. Importance concerned with individual organization
Human Resource Management can help an organization to
achieve to its objective more efficiently and effectively in the
following ways:
(a) Procurement of required talents through recruitment,
selection, placement, inducting, training, compensation and
promotion policies.
(b) Secures co-operation of all employee of the organization for
achieving goals.
(c) Proper utilization of human resources for the success of the
enterprise.
(d) Ensure a future team of efficient and competent workers
required for the organization.
2. Professional Importance
Professional competency among employees can be achieved
through the following ways.
(a) Human resource management provides maximum
opportunities to employees for their personnel development.
(b) Providing healthy relationship among employees
(c) Proper allocation of work among employees.
(d) Providing training facilities for the individual development
of employees.
3. Social Importance
HRM is important in social perspective also. It includes the
following aspects:
(a) Human resource management enhances the dignity of
labour.
(b) Provides suitable job to suitable person and it will help to
satisfy the psychological and social satisfaction of employees.
(c) Helps to provide reasonable compensation to workers,
which leads them to have a good standard of living.
(d) Helps to maintain a balance between jobs and job seekers in
terms of numbers, qualification, aptitude etc.
(e) Takes health and safety measures which ensures physical
and mental health of the employees.
4. National Importance
Effective management of human resources will speed up the
economic growth of nation. This in turn leads to better
standard of living and more job opportunities.
HUMAN RESOURCE MANAGEMENT – IMPORTANCE
Human resources play a crucial role in the development process of
modern economics. Arthur Lewis observed “there are great
differences in development between countries which seem to have
roughly equal resources, so it is necessary to enquire into the
difference in human behaviour.” It is often felt that, though the
exploitation of natural resources, availability of physical and financial
resources and international aid play prominent roles in the growth of
modern economies, none of these factors is more significant than
efficient and committed manpower.
It is, in fact, said that all development comes from the human mind.
For example the per capita GDP of Ghana and South Korea was more
or less the same in 1964, but human resources development of
South Korea made it as an advanced country while the human
resources of Ghana are responsible for the latter backwardness.
1. Human Resource in the Nation’s Well-Being:
A nation with abundance of physical resources will not benefit itself
unless human resources make use of them. In fact, human resources
are solely responsible for making use of national resources and for
the transformation of traditional economies into the modern and
industrial economies.
Lack of organisation of human resources is largely responsible for the
backwardness of the nation. Countries are underdeveloped because
their people are underdeveloped. In essence, “the difference in the
level of economic development of the countries is largely a reflection
of the differences in quality of their human resources….”
The growth of Japan, Singapore, China and India is mostly due to
their knowledgeable and competitive human resources. The key
element in this proposition is that the values attitudes, general
orientation and quality of the people of a country determine its
economic development. The shift from manufacturing to service and
service to knowledge economies are making human resources the
core ingredient to the nation’s well-being and global
competitiveness.
2. Man Vis-A-Vis Machine:
Most of the problems in corporate sector are human and cultural
rather than physical, technical or economic. No industry can be
rendered efficient as long as the basic fact remains unrecognised
that it is principally human. It is not & mass of machines and
technical processes but a body of men. Its body is not an intricate
maze of mechanical devices but a magnified nervous system.
3. HRM and General Management:
Management of an organisation in modern economies is not only
complex and sophisticated but it is also vital, and influences the
economic growth of a country. Its efficiency determines the property
and well-being of the people of the nation. “Perhaps today there is
no other latest activity which is as important and dynamic as
management — the oldest of arts and newest of profession.”
One of the fundamental areas of management is the management of
human resources. Thus, “in the management of four Ms. — Money,
Materials, Machines and Men — it is needless to be labour the
obvious point that, considering the nature of man, the management
of men….” is not only fundamental but also dynamic and challenging.
One of the fundamental tasks of management is to manage human
resources, in the service of the economic objectives of the
enterprise. Successful management depends not solely, but
significantly upon the ability to predict and control human
behaviour. Among other things, if a company is economically
successful, it means, the management has been able to manage
human resources effectively. The human resources are “the active
force of industrialisation and strategies for development should
concentrate particularly on their enhancement.”
Earnest Dale views management as the process of getting things
done through people. In fact, it is said that all management is human
resource management as it deals with human beings.
Thus, all executives must unavoidably be human resource managers.
In short, all managers are human resource managers and all
management is essentially human resource management.
4. People First:
You Take care of your employees!
They take care of customers!
Customers take care of Business!
Business takes care of Your Profits/ mission.
Some of the modern managers particularly of highly successful
companies realize that people/ human resource should be the first as
their ideas, innovations, decisions and actions drive the business into
a dynamic and responsible organization. In contrast, people/ human
resources can basically mar a business, if they are not properly
managed. Thus, people can make or mar an organization.
5. Human Resources System is a Central Sub-System:
Human resources system in an organisation is not only a unique
subsystem but a principal and central sub-system and it operates
upon and controls all other sub-systems. Thus, in the words of
Wendell L. French, “Human resource management is a major
pervasive sub-system of all organisations.”
Peter F. Drucker has rightly observed the significance of human
resources as; managers are fond of repeating the truism that the
only real difference between one organisation and the other is the
performance of people. In essence, the survival, development and
performance of an organisation – although not solely but heavily –
depend on the quality of human resources.
6. Human Resources Accounting:
One important development arising out of the recognition of crucial
importance of human resources in organisations is the Human
Resources Accounting. During the early 1960s, behavioural scientists
attacked conventional accounting practice for its failure to value the
human resources of an organisation along with its money and
material- resources.
The potential and promise of human resources accounting have been
thus recognised by the accountants. Human Resources are identified
as the value of the production capacity of a firm’s human
organisation, and the value of its customer’s goodwill. Eric Flanholtz
defines human resources accounting as, “accounting for people as
organisational resources. Human Resources accounting is the
measurement of the cost and value of people for organisation.”
It is clear from this definition that, human resources accounting is
useful to both general managers and human resource managers
since human resources information influences the planning and
controlling functions of management and various operative functions
of human resource management.
It helps the management to utilise human resources most
economically and efficiently. It also helps the managers in making
sound decisions in human resource matters by providing required
information. Thus, it is a very useful control technique.
7. Human Resource and Market Economy:
The three important areas of human resources are skill, ability and
knowledge. Knowledge plays most vital role in the modern industry
as rail road played its role during the 19th century business and as
assembly line played its role during the 20th Century. According to
P.F. Drucker, “knowledge is the only meaningful resource today.” All
other resources flow freely across borders.
8. Knowledge and Competitive Advantage:
Modern business has been undergoing changes at a fast rate due to
changes in technology, liberalisation of economies, etc. The changes
in the business resulted in severe competition. The business should
have knowledgeable employees to have competitive advantage over
the competitors.
In the words of Thyagarajan, Managing Director, Glaxo,
“organisations that have world class ambitions will need to nurture
knowledge workers.” As Adi B. Godrej, Chief Executive Officer,
Godrej Soaps puts it, “all corporate strengths are dependent on
people.”
9. Products and Human Resources:
Many companies compete based on the strength of their products.
These companies have to use people as the source spring for winning
concepts. In fact, product improvements are generated by people;
creative and innovative products and services can be developed and
modified only through intensive and planned human efforts. A
successful product is developed by using knowledge as a core
competence of the company.
10. Production and Human Resources:
The high technology industry dominates the shop floor. The role of
the people in today’s production process is crucial. Production
practices in today’s industry are assigning the total work to teams of
workers and empowering them. The empowered teams produce the
qualitative products. The knowledgeable workers with the help of
advanced technology improve the productivity beyond the normal
levels. According to Aspi Balsara, CEO of Balsara Hygiene, “easy
access to technology has made people the differentiating factor in
today’s environment.”
11. Marketing and Human Resources:
Companies are forced to improve the quality of products, quality of
pre-sales and post-sales service, customer-producer interface and
the like. Added to this, service sector has been enlarging its scope in
the global economy. As Mike Khanna, CEO, Hindustan Thompson
Associates puts forward as, “it is the rising demand from customers
that is making people increasingly important.”
12. HR- As Distinctive Competitive Advantage:
The 21st century business houses realise that their distinctive
competencies lie not in particularly products or technologies but in
distinctive talent, competency, expertise and knowledge pool and
skills of their people. Reengineered processes will not bring
improvements unless the top managements ensure that their
people’s attitudes and mindsets are also reengineered. Therefore,
successful management techniques are focusing directly on people.
Findings of a joint research study by USA Today and Deloitte and
Touche indicate that importance of HRM has grown substantially
during the last ten years and the HR expenditures are now treated as
strategic investment. HR has become more significant as skills,
knowledge and abilities tire the most distinctive and renewable
resources. Companies design strategies upon these resources.
13. Organisational Structure and Human Resources:
The modern structure is a pattern for deployment of people. The
objective of structuring of modern organisations is to make the best
possible use not only of technology, finance, or systems but also of
people. Companies, in order to concentrate on the customer, are
dismantling vertically functional departments and replacing them
with horizontal cross functional and process-centric empowered
teams. The emphasis is on resourcefulness, initiative autonomy and
responsibility of the process-owners.
This analysis indicates that human resources are crucial in all
operations. To reach the innovative frontiers of business, human
resources of superior calibre and understanding are necessary. Such
human resources are essentially, an important asset of the top
management.
HUMAN RESOURCE MANAGEMENT: OBJECTIVES
• To help the organization reach its goals.
• To ensure effective utilization and maximum development of
human resources.
• To ensure respect for human beings. To identify and satisfy
the needs of individuals.
• To ensure reconciliation of individual goals with those of the
organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-
motivated employees.
• To increase to the fullest the employee’s job satisfaction and
self-actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
• To develop overall personality of each employee in its
multidimensional aspect.
• To enhance employee’s capabilities to perform the present
job.
• To equip the employees with precision and clarity in
transactions of business.
• To inculcate the sense of team spirit, team work and inter-
team collaboration.
FUNCTIONS
Human Resource Management Functions:
Managerial, Operative and Advisory Function
Some of the major functions of human resource management
are as follows: 1. Managerial Functions
2. Operative Functions 3. Advisory Functions.
Human Resource or Personnel Department is established in
most of the organizations, under the charge of an executive
known as Human Resource/Personnel Manager. This
department plays an important role in the efficient
management of human resources.
The personnel department gives assistance and provides
service to all other departments on personnel matters. Though
personnel or human resource manager is a staff officer in
relation to other departments of the enterprise, he has a line
authority to get orders executed within his department.
(i) Managerial,
(ii) Operative and
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational
management. So he must perform the basic managerial
functions of planning, organising, directing and controlling in
relation to his department.
There functions are briefly discussed below:
1. Planning:
To get things done through the subordinates, a manager must
plan ahead. Planning is necessary to determine the goals of the
organisation and lay down policies and procedures to reach the
goals. For a human resource manager, planning means the
determination of personnel programs that will contribute to
the goals of the enterprise, i.e., anticipating vacancies, planning
job requirements, job descriptions and determination of the
sources of recruitment.
The process of personnel planning involves three essential
steps.
Firstly, a supply and demand forecast for each job category is
made. This step requires knowledge to both labour market
conditions and the strategic posture and goals of the
organisation.
Secondly, net shortage and excess of personnel by job category
are projected for a specific time horizon.
Finally, plans are developed to eliminate the forecast shortages
and excess of particular categories of human resources.
2. Organizing:
Once the human resource manager has established objectives
and developed plans and programs to reach them, he must
design and develop organisation structure to carry out the
various operations.
The organization structure basically includes the following:
(i) Grouping of personnel activity logically into functions or
positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and
responsibilities involved;
(iv) Co-ordination of activities of different individuals
3. Directing:
The plans are to be pure into effect by people. But how
smoothly the plans are implemented depends on the
motivation of people. The direction function of the personnel
manager involves encouraging people to work willingly and
effectively for the goals of the enterprise.
In other words, the direction function is meant to guide and
motivate the people to accomplish the personnel programs.
The personnel manager can motivate the employees in an
organisation through career planning, salary administration,
ensuring employee morale, developing cordial relationships
and provision of safety requirements and welfare of
employees.
The motivational function poses a great challenge for any
manager. The personnel manager must have the ability to
identify the needs of employees and the means and methods of
satisfy those needs.
Motivation is a continuous process as new needs and
expectations emerge among employees when old ones are
satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in
accordance with the plans, which in turn have been formulated
on the basis of the objectives of the organisation. Thus,
controlling completes the cycle and leads back to planning. It
involves the observation and comparison of results with the
standards and correction of deviations that may occur.
Controlling helps the personnel manager to evaluate the
control the performance of the personnel department in terms
of various operative functions. It involves performance
appraisal, critical examination of personnel records and
statistics and personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are
specifically entrusted to the human resource or personnel
department. These are concerned with employment,
development, compensation, integration and maintenance of
personnel of the organisation.
The operative functions of human resource or personnel
department are discussed below:
1. Employment:
The first operative function of the human resource of personnel
department is the employment of proper kind and number of
persons necessary to achieve the objectives of the
organisation. This involves recruitment, selection, placement,
etc. of the personnel.
Before these processes are performed, it is better to determine
the manpower requirements both in terms of number and
quality of the personnel. Recruitment and selection cover the
sources of supply of labour and the devices designed to select
the right type of people for various jobs. Induction and
placement of personnel for their better performance also come
under the employment or procurement function.
2. Development:
Training and development of personnel is a follow up of the
employment function. It is a duty of management to train each
employee property to develop technical skills for the job for
which he has been employed and also to develop him for the
higher jobs in the organisation. Proper development of
personnel is necessary to increase their skills in doing their jobs
and in satisfying their growth need. For this purpose, the
personnel departments will device appropriate training
programs. There are several on- the-job and off-the-job
methods available for training purposes. A good training
program should include a mixture of both types of methods. It
is important to point out that personnel department arranges
for training not only of new employees but also of old
employees to update their knowledge in the use of latest
techniques.
3. Compensation:
This function is concerned with the determination of adequate
and equitable remuneration of the employees in the
organisation of their contribution to the organisational goals.
The personnel can be compensated both in terms of monetary
as well as non-monetary rewards.
Factors which must be borne in mind while fixing the
remuneration of personnel are their basic needs, requirements
of jobs, legal provisions regarding minimum wages, capacity of
the organisation to pay, wage level afforded by competitors
etc. For fixing the wage levels, the personnel department can
make use of certain techniques like job evaluation and
performance appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient;
they must be provided with good working, conditions so that
they may like their work and workplace and maintain their
efficiency.
Working conditions certainly influence the motivation and
morale of the employees.
These include measures taken for health, safety, and comfort
of the workforce. The personnel department also provides for
various welfare services which relate to the physical and social
well- being of the employees. These may include provision of
cafeteria, rest rooms, counselling, group insurance, education
for children of employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their
needs. In many of the cases, it is found that they do not
contribute towards the organisational goals as much as they
can. This happens because employees are not adequately
motivated. The human resource manager helps the various
departmental managers to design a system of financial and
non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the
records of the employees working in the enterprise. It keeps
full records of their training, achievements, transfer,
promotion, etc. It also preserves many other records relating to
the behaviour of personnel like absenteeism and labour
turnover and the personnel programs and policies of the
organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial
relations is mainly discharged by the human resource manager.
The human resource manager can help in collective bargaining,
joint consultation and settlement of disputes, if the need arises.
This is because of the fact that he is in possession of full
information relating to personnel and has the working
knowledge of various labour enactments.
The human resource manager can do a great deal in
maintaining industrial peace in the organisation as he is deeply
associated with various committees on discipline, labour
welfare, safety, grievance, etc. He helps in laying down the
grievance procedure to redress the grievances of the
employees. He also gives authentic information to the trade
union leaders and conveys their views on various labour
problems to the top management.
8. Separation:
Since the first function of human resource management is to
procure the employees, it is logical that the last should be the
separation and return of that person to society. Most people
do not die on the job. The organisation is responsible for
meeting certain requirements of due process in separation, as
well as assuring that the returned person is in as good shape as
possible. The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.
3. Advisory Functions:
Human resource manager has specialized education and
training in managing human resources. He is an expert in his
area and so can give advice on matters relating to human
resources of the organization.
He offers his advice to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation
and evaluation of personnel programs, policies and procedures.
He also gives advice for achieving and maintaining good human
relations and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various
departments on matters such as manpower planning, job
analysis and design, recruitment and selection, placement,
training, performance appraisal, etc.
PERSONNEL MANAGEMENT VS. HUMAN RESOURCE
MANAGEMENT
Both the terms refer to the one and the same function of
the management and that is managing the people at
work. However, Human Resource Management is mainly
focused on best utilizing the man power by
understanding their strength and weaknesses and
engaging them in different occupations so that their
productivity can be increased.
Therefore, training and development and employee
engagements are part of it. Personnel Management, on
the other hand, is mainly concerned with maintaining
good employee- employer relationship and activities
connected with it. Therefore, Personnel Management
mainly works around Industrial/ Employee/ Labour
Relations and activities connected with grievance
handling, negotiations, enforcement of labour statute,
looking after welfare of employees and so on. Personnel
Management is thus basically an administrative record-
keeping function, at the operational level.
Personnel Management attempts to maintain fair terms
and conditions of employment, while at the same time,
efficiently managing personnel activities for individual
departments etc. It is assumed that the outcomes from
providing justice and achieving efficiency in the
management of personnel activities will result ultimately
in achieving organizational success.
Human resource management is the new version of personnel
management. There is no any watertight difference between human
resource management and personnel management. However, there
are some differences in the following matters.
1. Personnel management is a traditional approach of managing
people in the organization. Human resource management is a
modern approach of managing people and their strengths in the
organization.
2. Personnel management focuses on personnel administration,
employee welfare and labour relation. Human resource management
focuses on acquisition, development, motivation and maintenance of
human resources in the organization.
3. Personnel management assumes people as a input for achieving
desired output. Human resource management assumes people as an
important and valuable resource for achieving desired output.
4. Under personnel management, personnel function is undertaken
for employee's satisfaction. Under human resource management,
administrative function is undertaken for goal achievement.
5. Under personnel management, job design is done on the basis of
division of labour. Under human resource management, job design
function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with less
training and development opportunities. Under human resource
management, employees are provided with more training and
development opportunities.
7. In personnel management, decisions are made by the top
management as per the rules and regulation of the organization. In
human resource management, decisions are made collectively after
considering employee's participation, authority, decentralization,
competitive environment etc.
8. Personnel management focuses on increased production and
satisfied employees. Human resource management focuses on
effectiveness, culture, productivity and employee's participation.
9. Personnel management is concerned with personnel manager.
Human resource management is concerned with all level of
managers from top to bottom.
10. Personnel management is a routine function. Human resource
management is a strategic function.
