Human Resource Management is the process of managing resources in organizations in a structured manner. This covers the areas of staffing, retention of staff, pay and perks setting and management, performance management, change management , financial goals management from HR perspective, relationship management and so on. Human Resource Management also involves creating more holistic approaches to human resource management.
Personnel management is workforce centred whereas human resource management is resource centred. In case of personnel management the approach is more individualistic where as in case of resource management it is more generic. There are major differences in leadership style between the two. HRM needs leaders who are willing to share objectives with other employees where as personnel managers generally follow a transactional style of leadership.
Personnel management approaches job design from the basis of skill and requirements. HRM tries to look beyond the functional duties of a role and tries to link it up to the overall organizational objectives. Jobs designed from an HRM perspective tend to provide more value addition to the organization. Experts point out that HRM processes may be difficult to implement for smaller organizations due to the large initial overhead costs.