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Human Resource Management QUESTION #6423
Question 1

Which of the following best describes the fundamental difference between Personnel Management and Human Resource Management?

  • Personnel Management is reactive and administrative; HRM is proactive and strategic✔️
  • Personnel Management focuses on employee welfare; HRM focuses on cost reduction
  • Personnel Management is used in manufacturing; HRM is used in services
  • Personnel Management is centralized; HRM is decentralized
Correct Answer Explanation

The key distinction is that Personnel Management was primarily reactive and administrative (handling records, payroll, compliance), while HRM is proactive and strategic - aligning human resources with organizational goals, focusing on development, and treating people as valuable assets rather than costs.