Page 30 - IC90 Human Resource Management

3. Personnel Management vs. Human Resource Management

a) Personnel Management

Traditionally personnel management used to deal with ways of recruitment,

placement, leave, salary administration, perquisites, promotions and transfers,

retirement benefits, disciplinary matters, etc. The approach was to ensure

uniformity while dealing with people. The rules would be applied without

discrimination. Individual problems did not matter.

b) Human Resource Management (HRM)

Human Resource Management (HRM) is based on the understanding that

every individual is complex, endowed with the potential to enhance skills and

become a more valuable asset as well as having, at the same time, the capacity

to withdraw his skills from work and become a liability. No person can be

looked upon as having standard specifications, like other resources have. They

cannot be treated in the same manner uniformly. Each person needs to be

handled according to his unique personality