--- title: "Personnel management and its functions" subject: "Organization and Management" chapter: 7 key: "semester_7/organization_and_management:personnel-mgmt-functions" source: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-mgmt-functions site: BCT Engineering --- # Personnel management and its functions Organization and Management · Chapter 7: Personal Management - Asked in: 2072 Kartik; 2070 Asar, 8 marks; 2070 Chaitra, 3+5 marks; year not given (asked 3 times) - Video: [Personnel Management, Role Of Personnel Manager, Meaning, Concept, Function,Importance Hindi English](https://www.youtube.com/watch?v=oXvWAakSWI8) — Online Form Wallah - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-mgmt-functions - Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7 ## Question Define personnel management and explain its functions. ## Short answer Personnel management covers recruiting, developing, motivating, compensating and maintaining people to achieve organizational goals. Its managerial functions are planning, organizing, directing and controlling; operative functions include job analysis, manpower planning, recruitment, selection, training, appraisal, compensation, motivation, welfare, industrial relations, separation and record keeping. ## Answer #### 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. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. Personnel management is concerned with... A. Only machines B. Recruitment, development, motivation, compensation and maintenance of people C. Only marketing D. Only finance Answer: B. It aims to achieve individual and organizational goals through people. (Key point: Definition) 2. Which are the managerial functions of personnel management? A. Planning, organizing, directing, controlling B. Recruitment, selection, training, appraisal C. Marketing, selling D. Welfare, safety, pay Answer: A. Operative functions include recruitment and the others. (Key point: Managerial functions) 3. Which operative function screens by tests and interviews and appoints the best? A. Compensation B. Recruitment C. Selection D. Separation Answer: C. Selection chooses the best; recruitment attracts candidates. (Key point: Recruitment vs selection) 4. What is performance appraisal used for? A. Paying taxes B. Evaluating work and deciding promotion or transfer C. Recruiting D. Advertising Answer: B. It evaluates work and informs promotion or transfer. 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