Personnel management and its functions

Personnel management

Personnel management is the part of management concerned with the recruitment, development, motivation, compensation and maintenance of the people in an organization so that individual and organizational goals are achieved. It is also called human resource management in its modern form.

Functions of personnel management

A. Managerial functions

1. Planning: Forecasting manpower needs and framing personnel policies and programmes.
2. Organizing: Designing jobs, departments and relationships.
3. Directing: Motivating, guiding and leading employees.
4. Controlling: Comparing actual performance with standards and correcting deviation.

B. Operative functions

1. Job analysis and design: Defining duties, skills and conditions of a job (job description and specification).
2. Manpower planning: Estimating the number and kinds of employees needed.
3. Recruitment: Attracting qualified candidates through advertisement, campus drives, referral.
4. Selection: Screening by tests and interviews, and appointing the best.
5. Placement and induction: Putting the person in a suitable job and introducing the organization.
6. Training and development: Improving skills and knowledge.
7. Performance appraisal: Evaluating work and deciding promotion or transfer.
8. Compensation: Fixing wages, salary, allowances and incentives, in line with the Labour Act, 2074.
9. Motivation and morale building.
10. Employee welfare and safety: Health, safety, provident fund, social security (SSF).
11. Industrial relations: Dealing with trade unions, grievances and discipline.
12. Separation: Retirement, resignation, dismissal, with gratuity as per law.
13. Record keeping and research.

These functions together make sure the right people with the right skills are working, satisfied and productive.