Personnel Management is that part of the management function which is primarily concerned with the human relationships within an organization.

Its objective is essentially the maintenance of those relationships, which enable all those engaged in the undertaking to make their maximum personal contribution to the effective working of that undertaking.

Therefore personnel management is concerned with managing people at work.

It is essentially one of development of efficient, loyal and hard working employees.

Personnel management is concerned with helping the employees to develop their potentialities and capacities to the maximum possible extent.

The functional areas of Personnel Management along with the scope of human resources management are indicated below:

(i) Organization review and analysis: Continuous review and analysis of an organization’s operation may be necessary in order to determine and develop appropriate work structure, roles and responsibilities, inter and intra-department relationships, and levels of authority.

(ii) Manpower, planning, recruitment and selection: Forecasting and planning is essential to needs an organization for a sufficient number of qualified personnel for manning its operations.

(iii) Manpower training and development: Appropriate methods and techniques of training and development may be adopted. Proper facilities and opportunities are to be provided for personnel to enable them to acquire necessary skills and knowledge to perform the jobs for which they are employed.

(iv) Performance appraisal: There should be proper measuring, rating and evaluation of performance of personnel, guiding employee development and promoting motivation, communication and equity.

(v) Employee remuneration: This function includes developing and administering appropriate system of remuneration including job evaluation, wage and salary structure, incentive payments, fringe benefits and non-financial rewards.

(vi) Employee services: There should be satisfactory services relating to the safety, health and welfare of all employees, including social security plans and community development programmes.

(vii) Administration and records: This includes designing, implementing and controlling of adequate records and administrative procedures to provide useful and pertinent information for planning purposes and for the documentation for all personnel in service.

(viii) Industrial relations: It includes establishing appropriate procedures for the resolution for personnel and institutional differences by means of appropriate measures and machinery, e.g. standing orders, grievance procedures, conciliation, collective bargaining, and joint consultation.

(ix) Auditing and research in manpower management: These are the responsibilities of personnel management, which call for the attention of a management auditor.