---
title: "Personnel management vs HRM"
subject: "Organization and Management"
chapter: 7
key: "semester_7/organization_and_management:personnel-motive-hrm"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-motive-hrm
site: BCT Engineering
---

# Personnel management vs HRM

Organization and Management · Chapter 7: Personal Management

- Asked in: 2071 Chaitra, 2+4+2 marks
- Video: [Personnel Management vs HRM](https://www.youtube.com/watch?v=BBBBq-FG-xE) — Dr Amit Lal
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-motive-hrm
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7

## Question

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

## 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.

## Answer

#### 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
| Basis | Personnel management | Human resource management |
|---|---|---|
| View of people | Cost to be controlled | Valuable asset to develop |
| Approach | Reactive, administrative | Proactive, strategic |
| Role | Support function | Part of top-level strategy |
| Focus | Rules, procedures, payroll | Commitment, development, culture |
| Relations | Collective, union-based | Individual, team-based |
| Time | Short term | Long term |
| Managers | Staff of personnel department | All line managers share responsibility |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What is the basic motive behind personnel management?
   A. Cut all staff cost
   B. Get the best contribution from people while ensuring their satisfaction and development
   C. Avoid all labour laws
   D. Maximise supervision
   Answer: B. The aim is the best contribution from people together with their satisfaction and development. (Key point: Motive of personnel management)

2. Which is a function of personnel management?
   A. Product design
   B. Plant layout
   C. Advertising of products
   D. Performance appraisal for promotion and transfer
   Answer: D. Appraisal is a personnel function, along with planning, recruitment, training, compensation and industrial relations. (Key point: Functions)

3. How do the two approaches view people?
   A. Personnel mgmt: valuable asset; HRM: cost
   B. Personnel mgmt: cost to control; HRM: valuable asset to develop
   C. Both see people as cost
   D. Both see people as asset
   Answer: B. Personnel management sees people as a cost; HRM sees them as an asset. (Key point: View of people)

4. Which describes HRM compared to personnel management?
   A. Reactive and a support function
   B. Short term, focused on payroll
   C. Proactive and strategic, part of top-level strategy
   D. Responsibility only of the personnel department
   Answer: C. HRM is proactive, strategic and shared by all line managers. (Key point: Approach and role)

## Related in Organization and Management

- [Personnel management and its functions](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-mgmt-functions) — Organization and Management, chapter 7, asked 3×
- [Appropriate vs inappropriate human resources](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Ahuman-resources-appropriate) — Organization and Management, chapter 7
- [Define management; functions of management](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amanagement-functions) — Organization and Management, chapter 2, asked 3×
- [Importance and functions of management](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amanagement-importance-functions) — Organization and Management, chapter 2
- [Personnel policy / employee handbook](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-handbook) — Organization and Management, chapter 7
- [Personnel policy; referral recruitment](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-referral) — Organization and Management, chapter 7

## Related in other subjects

- [Personnel management and selection steps](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Apersonnel-management-selection-steps) — Construction Management, chapter 10, asked 3×
- [Human-vehicle-environment system; driver characteristics](https://www.bctengineer.com/question.md?key=semester_7%2Ftransportation_engineering_ii%3Ahve-system-driver-physical-characteristics) — Transportation Engineering II, chapter 1
- [Event management system summary and class diagram](https://www.bctengineer.com/question.md?key=semester_6%2Fobject_oriented_analysis_and_design%3Aoems-executive-summary-class-diagram) — Object Oriented Analysis and Design, chapter 2
- [Spectrum management and regulatory functions](https://www.bctengineer.com/question.md?key=semester_7%2Fwireless_communication%3Aspectrum-management-regulatory) — Wireless Communication, chapter 1, asked 2×