Personnel management is evolved from staffing. It is a traditional approach. Its focus is on personnel administration, compensation and welfare and labor relation. It is discipline and control-oriented staff function.

Whereas, HRM is evolves from personnel management. It is an integrated approach to management of human energy and capabilities. Its focus is on development and utilization of human potential.

Difference between Personnel Management and Human resources Management:

Personnel Management

Human Resource Management

1. Personnel management has a short term focus and therefore reacts to the specific personnel problems by providing piece meal (work happens slowly and in stages that are not regular and planned) solution. Whenever there is a problem it makes plans to solve it.

1. HRM is proactive and make system-wide intervention before any problem or change takes place through the integration of HRM activities with business strategy. It follows a long–term approach to work on a problem or change.

2. Personnel specialist use communication and information, mainly as a source of power and control

2. Information and communication in HRM are important sources of developing trust and commitment among organizational employees.

3. Personnel management considers people as only an input of an organization.

3. HRM considers people as a valuable asset of an organization.

4. Personnel management is concerned with the job satisfaction of employees.

4. HRM is concerned with the development of organizational climate and culture, which is more important to motivate employees towards achieving their goals and need satisfaction.

5. Personnel management is an independent function.

5. HRM function is an integrated function.

6.   Personal    system    and    procedure    are designed to achieve maximum efficiency.

6. HR system and procedure are designed on the basis of process values to reduce human wastage.

7. Personnel management lacks clear and integrated HR strategy.

7. HRM always interlinked with business strategy. It is always aligned with the overall business vision, mission, strategy and policy.

8. The role of individual employee was taken as an important criterion for selection, training performance appraisal and for making compensation decision of personnel management.

8. Under HRM, importance is give to the role of effective team or group performance. It is generally expected that people in organization have to work with a view to achieve effective group performance.