Personnel management vs human resource management: the difference for companies
How personnel management and HRM differ in scope, time horizon and role, plus the goals of HRM and its part in company culture and digitisation.
In short
- Personnel management focuses on employees' pay, daily tasks and administrative processes.
- Human resource management covers skills development, strategic planning and aligning employee performance with company goals.
- Technical skills development and process automation support digital transformation, alongside company culture and communication.
Employees are the core that lets a company grow and reach its goals. That is why companies have personnel management and human resource management, which look after every aspect of the employee's working life. But is personnel management the same as human resource management?
This article explains what each one means and sets out clearly how they differ.
It also covers the goals of human resource management, how it strengthens company culture, and how it supports digital transformation.
Finally, it shows how Dawmt saves time and effort on human resources (HR) tasks.
What are personnel management and human resource management?
Personnel management and human resource management are both essential in companies, but they are not the same thing. Each has its own meaning and role, and they complement each other. Here is what each one means:
Personnel management
Personnel management is a narrower function that does not cover a great deal. It deals only with matters concerning individuals in the company, such as their pay, their work in the company and their day-to-day tasks, rather than the long term.
It also assigns employees to the tasks that suit them and help the company reach its goal. In short, personnel management handles the administrative processes concerning employees, in a specialised way, without extending to any wider processes.
Human resource management
Human resource management (HRM) is a much broader concept than personnel management. It covers not only the administrative side of employment but wider areas such as developing employees' skills and long-term strategic planning. It also includes tracking performance, improving the workplace and working professionally towards the company's goals.
Read more: How to calculate annual leave pay in Saudi Arabia
The difference between personnel management and human resource management
As mentioned above, the difference between the two is large. Each has its own role and scope in helping the company reach its goals, and together they give the company a complete administrative structure. The table below sets out the difference simply and clearly:
Personnel management | Human resource management |
|---|---|
Focuses on the administrative side of each individual in the company, such as hiring, pay and tasks, in a more specialised way. - Helps the company keep its internal organisation and its people's day-to-day performance accurate. - Works in the short or medium term: it aims to improve day-to-day or, at most, monthly transactions and to follow them up. - An executive function that reports to the company's general management. | Responsible for broader areas such as strategic planning, talent management, employee development, and using people well to reach the company's goals. - Aims to achieve the company's long-term goals, keep employees with the company and build their abilities. - Works in the long term, delivering the strategies and steps that help the company meet its future needs and long-term goals. - A partner in the company's decisions and expansion. |
The main goals of human resource management in companies
Now that you know how the two differ, here is why human resource management matters to organisations and companies, and the goals it works towards:
- Training and development: HRM trains and develops employees, sets complete plans to build their skills and follows them up to get the best results and the highest productivity.
- A better workplace: HRM aims to make the workplace healthier, with an atmosphere that builds cooperation and encourages innovation and creativity.
- Performance management: one of HRM's most important goals is to track and manage employees' performance accurately and regularly, to identify strengths and weaknesses and work on them. This brings the company better results and keeps employees growing.
- Applying laws and regulations: an important part of HRM's work is applying laws and regulations in the company and making sure every process complies with Saudi labour laws and regulations.
- Employee loyalty: HRM follows everything to do with the company's people and sets complete plans to earn employees' loyalty and keep them with the company.
- Aligning employees' work with company goals: HRM aligns employees' tasks and performance with the goals the company wants to reach.
- Planning: HRM sets the strategic plans that help the company get the best results and meet its long-term needs and goals.
Read more: Barcode and QR code attendance with the Dawmt Kiosk app
How human resource management strengthens company culture
HRM has a strong influence on companies, including strengthening company culture and helping it grow. It does this in several ways:
- Defining values and goals
HRM defines the values the company applies and that every employee must follow, and the goals that keep the company developing. This gives the company a distinct, innovative culture.
- Investing in employees
HRM provides the tools and technology that keep employees developing. This is an investment in the employee that benefits the company, and a profitable, useful culture in its own right.
- Better communication
HRM helps employees communicate with each other more, and in a positive way, so that the company moves forward and tasks are done more professionally. Building cooperation is one of the things that does most to help a company progress.
- Using technology
Using technology for tasks and processes, including modern software such as Dawmt's HR software, does a great deal to strengthen a company's culture. Software of this kind makes the company more advanced and more professional.
See also: HR reports: types, why they matter and how Dawmt helps
How human resource management supports digital transformation
HRM supports digital transformation by setting plans to build employees' technical skills and their ability to use advanced tools. As mentioned above, companies can also use modern software to automate processes and complete tasks quickly and accurately, with training for employees on how to use it. This moves the company from traditional, manual processes to modern technology.
How Dawmt saves your company time and effort on HR tasks
Dawmt helps companies run HR administration and human resources quickly and electronically. Its tools organise processes such as payroll, attendance, hiring and employee records, and it produces accurate, regular reports with every detail of any process your company needs. Dawmt automates these tasks so they do not need manual work every time, which saves the company and its employees a lot of time and effort.
Sign up for Dawmt's HR system to run your company's human resources professionally and complete every process accurately and quickly, without wasting time and effort.
Frequently asked questions
Why is human resource management considered broader?
Because it covers every aspect of the company, not only administration. It is also concerned with the company's plans and goals and how to put them into practice and reach them as effectively and as quickly as possible, and it covers the employee's whole working life.
Does personnel management include training and development?
No. Training and development are part of human resource management. Personnel management deals with the administrative side, such as payroll and hiring.
How does human resource management raise employee productivity?
By setting development plans continuously, monitoring and managing performance, identifying strengths and weaknesses and working on them, and providing a healthy workplace that helps employees be productive and builds cooperation between colleagues.