Researchers state that there is no great difference between personal management and human resource management (HRM). Thus they recognize that personal management is administrative in its nature while HRM deals with the workforce and its relation to the organization. So, the main difference can be found in the philosophy of both disciplines and their approach to staff.
In contrast to personal management, HRM is broader in scope. According to Armstrong (2003): “the concept of HRM could be regarded as a philosophy governing how employees should be treated in the interests of the organization. But this philosophy can be applied in many different ways, and there is no single model which can be used to describe HRM” (23). The current state of the HRM is described as homogeneity, which has obscured the real challenge of managing across cultures in the world.
The socio-technical system is concerned with the interactions between both the psychological and social factors, and the needs and demands of people, and the structural and technical requirements of the organization. The identification of the key skills, knowledge and attitudes of the employees is crucial in determining what they need to learn (Briscoe and Schuler 92).
Personal management deals with employment laws and regulations, codes of ethics and organizational functions. Contemporary developments show that personal management is that part of the process of management that is concerned with the maintenance of human relationships and ensuring the physical well being of employees so that they give the maximum contribution to efficient working (Tyson and York 12). In contrast, HRM has at its disposal ways in which to increase employee motivation and performance, and an effective manager learns how and when to use each approach. “As the need for firm-specific or unit-specific skills increases, personal power of successful employees also increases” (Schuler and Jackson 1999, p. 40).
In the period of globalization, culture is a major factor in the appropriateness of management’s methods of motivation. Personal management can be seen as an independent area, while HRM is an integral part of the organization. In terms of personal management, it is important to use such strategies as rewards and bonuses to motivate employees. In terms of HRM, the organization can improve performance using training and motivation (Tyson and York 12). Today, motivation and a human-centred approach play a major and continuing role in the lives of all employees, especially with the growth of large-scale business organizations (Briscoe and Schuler 53).
So, the core of personal management is an employee, while the core is the primary resources of the company. HRM concerns with managing those resources of an enterprise that are required to produce the goods or services to be sold to consumers or other organizations. The balance of power has undoubtedly shifted to traditional management who now has more choice over how it conducts relationships with its employees and process (Tyson and York 12).
The spirit of personal management is encouraged as the tendency for individuals to compete against each other frequently gives rise to the development of new ideas (Beardwell et al. 11). In the commercial organisation, this means new products and technologies which have a positive impact on the national economy. The idea of HRM incorporates all the functions of HRM applied on the national level but pays more attention to cultural differences and diversity.
Modem HR theories and practices take into account changing economic and social environment which have a great impact on motivation and employees perception of the work. In addition to arrangements for the carrying out of organizational processes, HR management has a responsibility for creating a climate in which people are motivated to work willingly and effectively (Beardwell et al. 10).
The personal approach is extremely important because the decisions and actions of HRM have an increasing impact on individuals and the community. Effective communication and cooperation between all managers of the organization, economic and social conditions of business should be a key part of setting policies and plans of the HR department (Briscoe and Schuler 22).
In sum, an essential part of personal management is that proper attention is given to the personnel function. The effectiveness of any organization is dependent upon the efficient use of its human resources, internal and external environment. Each alternative has a set of consequences. The employer chooses the alternative and consequences that rank highest in terms of the payoff functions, that is, that contribute most to the ultimate goal. In terms of personal management, the employee has goals or objectives and has a payoff, utility, or preference function that permits that person to rank all possible alternative actions by the action’s contribution to the desired goals.
In a rigorous model of rational action, the organization has comprehensive rationality, can accurately rank all alternatives and consequences, and can perceive all alternatives and consequences. The main difference between personal management and HRM is found in their approach to staff: personal management is based on a human-centred approach, while HRM is directed towards organizational performance and the effective use of human resources.
- Armstrong, M. A Handbook of Personnel Management Practice. London: Kogan Page, 2003.
- Beardwell, I. Holden, L., Claydon, T. 2004. Human Resource Management, London Pitman Publishing.
- Briscoe, D.R., Schuler, R.S. International Human Resource Management: Policies & Practices for the Global Enterprise. New York: Routledge, 2004.
- Schuler, R. S., Jackson, S. Strategic Human Resource Management: A Reader. Blackwell Publishing Professional, 1999.
- Tyson, Sh., York, A. Essentials of HRM. Butterworth-Heinemann Ltd, 2000.