In today’s increasingly complex and rapidly changing business landscape, human resources management is constantly challenged to achieve business success.

Two terms that often come up in this context are ‘people management’ and ‘HR management‘. Although there are many commonalities between the two types, there are distinct nuances that delineate the functions of each within the company.

Follow us in this article to explore in detail what People Management is and – above all – the differences that distinguish it from HR management.

People Management and HR management

People Management focuses on people as a key corporate resource. It goes beyond simple human resources management and emphasises building strong relationships, talent management, staff development and creating a positive and inclusive working environment.

HR management, on the other hand, focuses on the administrative aspects of personnel management. This includes the organisation of recruitment, remuneration, benefits, company policies and the implementation of regulations.

The differences between the two types of management

The main difference between people management and HR management lies in the human approach. The former embraces a more empathetic approach that recognises employees as individuals with unique needs, aspirations and challenges. It is based on trust, open communication and creating an environment where employees feel valued and inspired to give their best within the team.

The second, it is essential to ensure legal compliance and consistency in company policies. It is precisely these particularities that can make it more easily formal, bureaucratic and unempathetic. The risk is that by implementing only this type of management, one can focus only on documentation and compliance as opposed to the human aspect of working relationships between individuals.

A people-based approach can bring numerous benefits. First of all, it fosters a positive office atmosphere, increasing employee satisfaction and improving productivity. Furthermore, it encourages innovation and creative thinking, because employees feel comfortable expressing themselves in total transparency. 

An environment in which employees feel valued and understood is more likely to engage in long and fruitful collaborations over time and – most importantly – to attract more new talent to the team.

In short, while HR management is essential for ensuring organisational and regulatory compliance, people management goes further, embracing the human side of the corporate environment. By combining the administrative structure of HR management with the empathetic approach of people management, companies can create an environment that promotes personal and professional growth, thus contributing to a successful future for all stakeholders involved.

One must always remember that behind every professional there is a person who must be treated with respect, empathy and understanding. This is the only way to build a strong and sustainable company.

What is the best management?

There is no real answer to this question because people management and HR management could potentially be the same thing.

To be precise, we could say that people management is an evolution of HR management. After all, a lot has changed since the 1970s in the approach taken to organising and leading teams to success and this has also made it necessary to re-evaluate the HR approach by making it more compatible with the needs of today’s employees and professionals.

The best way to ensure that the company thrives and the team grows stronger over time is to implement the method proposed by people management in the human resources department that is currently present in your company: in essence, it is a matter of bringing these professionals up to date and allowing them to integrate more empathic and emotional skills to go hand in hand with technical and bureaucratic ones.

The importance of people management within a company

People management is the backbone of any business that wishes to thrive. It goes beyond mere personnel administration, incorporating key elements such as leadership, communication and empathy to create a positive and productive work environment.

That is why people management is so crucial within a company:

• It encourages the creation of a positive working environment where employees feel valued, listened to and respected. This helps to reduce stress and improve emotional well-being.
• It allows building strong relationships between colleagues and between employees and managers. Trust and mutual respect are fundamental to a healthy corporate culture.
• A human approach to management increases employee commitment. When they feel valued, they are more motivated to work hard and contribute to the success of the company.
• Employees who feel valued are more likely to stay with the company for the long term, thus reducing turnover and the costs of frequent hiring.
• It fosters the development of employees’ skills through training and learning opportunities. More skilled employees improve overall company performance.
• Careful people management can resolve conflicts peacefully and effectively, maintaining a collaborative and fruitful working climate.
• An environment where employees feel encouraged to express their ideas freely promotes innovation and creativity.
• Effective people management creates a positive reputation for the company, not only among current and future employees, but also among customers, business partners and investors.

The figure of the people manager

The people manager represents the professional capable of creating a healthy, productive and sustainable working environment. In addition to administrative management, this professional embodies the empathy, understanding and guidance needed to make people successful and build a corporate culture that inspires, motivates and brings tangible results for both employees and the company.

What does the people manager do?

• He adopts an empathetic understanding of employees’ needs, challenges and ambitions. This enables him to make thoughtful and responsible decisions. 
• It identifies and develops talent within the organisation through the creation of training and development programmes to help employees improve their skills and grow professionally.
• It provides individual support and mentorship to help employees overcome professional challenges and achieve their career goals.
• It manages change within the company, helping employees to adapt.
• It communicates organisational changes clearly and transparently, reducing anxiety and resistance to change.
• It uses data and analysis to understand trends in employee behaviour and adapts human resources management strategies accordingly.

In an era where competition is fierce and corporate stability is constantly changing, people management emerges as a key success factor.

Companies that invest in their human resources, listen to them and treat them with respect are bound to prosper. A happy, committed and motivated staff not only improves company performance, but also automatically creates a working atmosphere that reflects positively on every aspect of the business.

People management today is not just an option, it is a necessity for any company that wants to build a sustainable and successful future. 

At Kilpatrick, we know how important it is to have dedicated, motivated and fulfilled employees. That is why we are ready to work alongside you every day to implement the best people management that will allow you to manage your entire company organigramme more effectively: contact us and discover all that we can achieve together.