| Basis of Difference | HRM | Personal Management |
| Scope | It is broader in scope and also incorporates the tasks of personnel management. | It has a limited scope and is considered to be a part of HRM. |
| Respect for Employees | It views employees as important asset for the development of organisation. | It views employees as a labour and utilises them for the benefit of the organisation. |
| Nature of Duties | More strategic in nature and is responsible for managing workforce as one of the primary resources that contributes to the success of an organisation. | Personnel management includes administrative tasks that are both traditional and routine, dealing with payroll, complying with employment laws, and handling related tasks. |
| Organisation Function | It is taken as an integral part of the overall company function. | It is an independent function of an organisation. |
| Responsibility | The responsibility lies with all the organisation’s managers and its objective is to develop managers from various departments who are trained to take care of personnel-related tasks. | The sole responsibility lies only with the organisation’s personnel department. |
| Key Motivators | It views improved performance which results into employee satisfaction. Thus, it emphasise on ways to improve performance through work groups, effective strategies for meeting challenges, and job creativity. | It views, employee satisfaction and acts as a motivator to improve job performance. The tools used to motivate employees are compensation, bonuses, rewards, and simplifying the work responsibilities. |
| Management Role | The management style is transformational in nature which consists of setting goals and incentives to take the organisation and the employees to next level of performance and success. | The management style is transactional in nature which focuses on maintaining the normal flow of operations in an organisation. The employees are motivated by exchanging rewards for performance. |
| Rules | Adopts a can-do attitude and is not controlled by rules and procedures. | A lot of importance being given to devising rules and procedures. |
| Guide to Management Action | The management takes decisions which are governed by business needs. | The management takes decisions which are directed by need to fulfil procedures. |
| Job Design | While designing jobs, emphasis is laid on team work and cooperation among the employees. | Job designing emphasises on the division of labour which leads to specialisation of tasks which each worker needs to do. |
| Training and Development | Training and development modules constantly encourage the employees to acquire knowledge and innovate quickly. This helps the companies to survive in fast changing business environment and creates a learning organisation. | Training and development modules are difficult to access by all employees. Due to the limited access to courses the organisation is not learning oriented and may find it difficult to cope with dynamic changes. |
| Speed of Decision | Quick decisions are taken under HRM | While decision making is slow under personnel management. |
| Evolution | HRM is a recent concept which is latest in the evolution of the subject. | Personnel management existed befòre the concept of HRM evolved. |
| Behaviour Referent | The HRM behaviour is concerned with values and mission of the organisation. | The behaviour under personnel management is concerned with the customs and practices. |
| Managerial Task vis a vis Labour | It has a nurturing approach towards labour. | It aims to monitor the day to day activities of labour. |
| Key Relations | Manages the relationship with customers. | Manages the relationship with labour. |
| Communication | Maintains direct communication. | Maintains indirect communication. |
| Management Skills | The most important management skill under HRM is facilitation, | The most important management skill under personnel management is negotiation. |
| Pay | They receive payment according to their performance. | They receive payment according to fixed grades. |
| Labour Management | The management enters into individual contracts to manage labour. | The management enters into collective-bargaining contracts to manage labour. |
| Job Categories and Grades | There are less job categories and grades. | There are many job categories and grades. |
| Conflict Handling | Conflicts within the organisation are managed by making long term changes in the internal climate and culture. | Conflicts within the organisation are managed by making short term agreements to restore peace. |
| Focus of Attention for Interventions | Interventions taken by the management are related to overall cultural, structural and personnel strategies. | Interventions taken by the management are related to personnel procedures. |
| Shared Interests | It focuses on the mutual interests of the organisation as well as the employees, | It focuses on the interests of the organisation. |
