Personnel Management

Personnel Management is concerned with people at work and their relationships with each other. It may be defined as a set of programs functions and activities designed to maximize both personal and competent people. It involves the establishment of various policies to deal with employees and to retain them. To this end, it lays the rules regarding working conditions, designs, appropriate compensation plans and strengthens employer employees’ relations. According to the national Institute of Personnel Management (NIPM) the three important dimensions of personnel management include:

Three dimensions of Personnel Management

Personal Management >>

1) Personnel Aspects: Recruitment selection, placement, training, appraisals, compensation, productivity.
2) Welfare aspect: Working conditions, amenities, facilities, benefits.
3) Industrial Relations Aspects: Union management relations, disputes settlement, grievances handling discipline, collective bargaining.


1) Personnel management is concerned with employees both as individuals and as a group in attaining goals. It is also concerned with behavioral, emotional and social aspects of personnel.
2) It is concerned with the development of human resources. It optimizes knowledge capability, skill, and potentialities towards attaining both employees and organizational goals.
3) Personnel management covers all levels (lower, middle, and top) and categories (unskilled, skilled, technical, professional, clerical, and managerial) of employees. It covers both organized and unorganized employees.
4) It applies to the employees in all types of organizations in the world (industry, trade, service, commerce, economic. social religious, political and government departments)
5) Personnel management is a continuous process constant reviewing, up-gradation and integration.
6) It aims at attaining the goals of an organization individuals working therein and society in an integrated way. Organizational goals may include survival, growth and development in addition to profitability, productivity, innovation, and excellence. Individual employee goals may consist of job satisfaction, job security, high salary, attractive fringe benefits, challenging work, pride, status recognition and opportunity or development. Societal goals include equal employment opportunity, protecting the disadvantaged and physically handicapped wage differentials and undertaking developmental activities.
7) Personnel management is a responsibility of all line managers and a function performed by staff managers across the organization.
8) It is concerned mostly with managing human resources at work.
9) Personnel management is the central sub system of an organization and it permeates all types of functional management viz., production management, marketing management and financial management.
10) Personnel management aims at securing unreserved cooperation from all employees in order to attain predetermined goals.

Looking at the comprehensive nature of the function, most writers prefer to use the term in a broad way. In this article the terms Personnel Management and HRM have been used synonymously signifying a set of activities in all organizations intended to influence the effectiveness of human resources and organizations. Of all, the most comprehensive definition has been advanced by a renowned scholar Michael, Jucius who defined personnel management as a field of management which has to do with planning and controlling various operative functions of procuring, developing, maintaining and utilizing a labor force, such that the: (1) objectives for which the company is established are attained economically and effectively ; (2) objectives of all levels of management are served to the highest possible degree; (3) objectives of the community are duly considered and served.

Personal Management – Functions

This function deals with the determination of the future course of action to achieve desired results. Planning of personnel today prevents crisis tomorrow. The personnel manager is expected to determine the personnel program regarding recruitment , selection , and training of employees.

Organizing: This function is primarily concerned with proper grouping of personnel activities, assigning of different groups of activities to different individuals and delegation of authority.

Directing: This involves supervising and guiding the personnel. The personal manager must be an effective leader who can create winning teams. While achieving results, the personnel managers must, invariably take care of the concerns and expectations of employees at all levels.

Controlling function of personnel management comprise measuring the employee’s performance, correcting negative deviations and industrial assuring an efficient accomplishment of plans. It ensures that the activities are being carried out in accordance with stated plans.

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