According to the National Institute of Personnel Management, “Personnel Management, Labour Management or Staff Management means quite simply the task of dealing with human RELATIONSHIPS within an organisation. Academically, the three aspects of Personnel Management are :

1. The welfare aspect concerned with WORKING conditions and amenities such as canteens, crèches, housing, personal problems of workers, schools and recreation;
2. The labour or personnel aspect concerned with recruitment, placement of employees, remuneration, promotion, incentives, productivity, ETC.
3. The industrial relations aspects concerned with trade union negotiation, settlement of industrial disputes, joint consultation and collective bargaining. All these aspects are concerned with the human ELEMENT in INDUSTRY as distinct from the mechanical.”

Personnel Management:

1. Personnel management is the management of people.
2. Personnel management views man as economic person.
3. Employee is treated as cost centre and hence controls cost of “Personnel” in the organisation.
4. Employee is viewed as a tool or equipment, which can be purchased and used.

Human Resource Management:

1. HRM is the management of employees’ skills, knowledge, abilities, talents, aptitude, and creative abilities.
2. HRM views man not only as economic person but looks at him as a full person-taking social and psychological factors in views.
3. Employees are treated as profit centre and hence they invest in Human Resource Development – and future accrues from this resource.
4. Employee is treated as a resource.

According to the National Institute of Personnel Management, “Personnel Management, Labour Management or Staff Management means quite simply the task of dealing with human relationships within an organisation. Academically, the three aspects of Personnel Management are :

Personnel Management:

Human Resource Management: