Difference between HRM and Personnel Management
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| HRM Vs PM |
Personnel Management
- Personnel management is the management of people employed
- Employee in personnel management is mostly treated as an economic man as his services are exchanged for wage/salary
- Employee is viewed as a commodity or tool or equipment which can be purchased and used
- Employees are treated as cost centre and therefore management controls the cost of labor
- Employees are used mostly for organization benefit
- Personnel function is treated as only an auxiliary
Human resource management
- HRM is the management of employees skills, knowledge, abilities, talents aptitudes creative abilities etc
- Employee in HRM is treated not only as economic man but also as social and psychological man
- Employee is treated as a resource
- Employees are treated as a profit center and therefore, invests capital for human resource development and future utility.
- Employees are used for the multiple mutual benefit of the organization, employees and their family members.
- HRM is strategic management function
Scope of HRM

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