Personnel management focusing on administrative and legal processes associated with employment of people. This includes things such as managing payroll, providing health care benefits, and handling the administrative and legal details associated with establishing and terminating employment contracts. I like to refer to this as the basic care and feeding of employees.
Business execution focusing on talent management processes associated with aligning the workforce to deliver business results. Business execution is often described as “getting the right people in the right jobs doing the right things.” You might also add “in a way that supports the right development for what we want people to do tomorrow.” I refer to this as maximizing and sustaining workforce productivity.
Personnel management is critical to organizational performance but it is not seen as strategic. For example, while it is difficult to motivate employees if their paychecks don’t show up, paying people on time is not going to give a company competitive advantage.
In this sense, personnel management is similar to other crucial support services such as processing expense reports, maintaining e-mail systems, or managing building facilities. The personnel management side of HR typically gets little attention from line of business leaders unless it fails to work.
Business execution represents the strategic side of HR. HR’s ability to increase business execution is the primary reason why HR matters to operations leaders.
Line leaders rarely ask personnel management questions such as “how do I ensure people get paid on time?” They often ask business execution questions such as “how do I get people aligned around the company’s strategic goals?” If HR leaders want greater influence with the CEO and his/her direct