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A Guide to Personnel Management

4 min read
Last Updated on 01 February, 2021
A Guide to Personnel Management

We have seen how human resource management has changed in the last few decades. Employees are now regarded as the most important asset of an organization. Indeed human resources have evolved from personnel management.

Three decades back these concepts might not have made much sense. The number of organization which existed back then was considerably less. That makes the concept of personnel management a bit redundant. But in today’s competitive market, both personnel management and human resources management are an important part of general management. People now don’t necessarily look at the paycheck to judge the quality of a job. The focus has now shifted to the company culture and working conditions.

Before going any further let's look at what personnel management is.

What is Personnel Management?

Personnel management refers to attracting, recruiting and maintaining satisfied employees. It is all about the proper use of human factors. It is considered as a subdivision of human resources and also an important part of management.

Personnel management is all about keeping a happy and satisfied workforce. Keeping happy and satisfied serves two purposes. It keeps your employees happy and also improves productivity.

The Operative Functions of Personnel Management

1. Planning

Seems like this is the first step everything, right? It’s because it is the most important. You don’t plan a trip without planning so why take on such an important task without planning?

On the surface, it is simply the estimate of the number of people required. But if only if it were this simple, right? We have seen countless incidents of recruitment done without any plan. It leads to the overstuffing of employees.

The first step, do you actually need 5 more people? If that’s how you go about your plan, then it's likely to fail. You should consult the management and workers regarding the workload and if you actually need more people.

2. Procurement Development

You can’t select a good coder for the marketing department, right? That might sound too obvious but it's not. We have seen countless examples of misfits.

It's also important to conduct the perfect test for the perfect department. You don’t want to conduct an aptitude test for a graphic designer.

Procuring the perfect fit not only improves the efficiency of the group but also improves the overall atmosphere of the office. A right fit is more likely to be positive and energetic. People at work are more likely to connect with someone who is positive and energetic.

3. Development And Training

We have seen countless examples of how new employees fail to meet expectations. The blame is to be more on the employer side. Not only did you screw up your selection process but also failed to provide adequate training.

Probably the most neglected aspect of management includes training and development. So often it is seen that training is done for the sake of it. Your training program should be properly structured and planned. Make sure the initial load on your new guy is low. Setting the bar high is important but you don’t want to bombard your new employee with unachievable targets.

A good indicator of efficient management is the planning or ability to plan. A gradual training process which intensifies as time goes has proven to be most effective.

But this not where the learning ends. It is equally important to conduct frequent development programs for your employees.

Every dollar invested in development returns $30 in productivity. Another key reason for high attrition rates is that employees realize the lack of development opportunities.

Proper training not only keeps your employees up to date and satisfied but also makes your business futureproof. Employing frequent development programs gives your employees a sense of satisfaction that they are advancing in their respective careers.

It is important for top management to get a hold of things for the development of employees.

4. Maintenance , Engagement And Motivation

Maintaining your employees is an important part of personnel administration. The job of maintaining and engaging employees falls in the hands of line managers or middle managers.

You need your employees to enjoy working in your organization. They need to feel that their individual and societal goals align. This makes the purpose of contributing to the organization more fulfilling and enriching.

This can only happen when you have an engaged workforce. You need to have the options of periodic rewards and recognition for your employees. Rewards and recognitions motivate your employees to deal with their work and with their relationships with the organization.

And of course, a fat paycheck is the ultimate motivator. Make sure your compensation is at least at par at the industry standards. If you outdo the industry-standard than great!


In the last few decades personnel management separated from human resource management. As time went by the functions associated with personnel management like benefits, procurement, salary, took more precedent.

It is important for the personnel managers and line managers to act accordingly and put more focus on training, development, engagement.

Earlier personnel management used to deal with functions of record keeping and disparities in trade. Now the greatest asset of a company has changed from its inventory to its employees. Personnel management has taken the same steps.

This article is written by Iftekar Ahmed. He works as a Content Creator and Digital Marketer at Vantage Circle. When he is not playing guitar or solving puzzles, he is often seen fussing over foods he can't eat because he is on a perennial dieting spree. For any related queries, contact