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Personnel management vs HRM

Short answer

Personnel management aims to secure the right people, raise efficiency, and maintain industrial peace. Its functions include planning, recruitment, training, appraisal, and compensation. HRM treats people as assets and is proactive and strategic, unlike the reactive administrative personnel approach.

Explain the motive behind personnel management. Describe various functions of personnel management. How does Human Resources Management system differ from personnel management?

Motive behind personnel management

The motive is to get the best contribution from people while ensuring their satisfaction and development. Specifically:

  1. Obtain right people for the right job at the right time.
  2. Raise efficiency and productivity of employees.
  3. Maintain good human relations and industrial peace.
  4. Satisfy employees' needs and improve morale.
  5. Develop skills and prepare future leaders.
  6. Comply with laws (Labour Act, 2074).

Functions of personnel management

  1. Manpower planning and job analysis.
  2. Recruitment and selection of staff.
  3. Placement and induction.
  4. Training and development.
  5. Performance appraisal for promotion and transfer.
  6. Compensation: wages, salary, incentives, benefits.
  7. Motivation and morale.
  8. Welfare, health and safety.
  9. Industrial relations: union and grievance handling, discipline.
  10. Records and research.

HRM vs personnel management

BasisPersonnel managementHuman resource management
View of peopleCost to be controlledValuable asset to develop
ApproachReactive, administrativeProactive, strategic
RoleSupport functionPart of top-level strategy
FocusRules, procedures, payrollCommitment, development, culture
RelationsCollective, union-basedIndividual, team-based
TimeShort termLong term
ManagersStaff of personnel departmentAll line managers share responsibility

✓ Answer checked by Claude Opus 5.5 (high effort)

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