Personnel Management: What Does It Mean?
Personnel management (also referred to as human resources or HR management) is a major business function in organisations and encompasses all matters related to personnel and work. It is therefore part of strategic management. The Human Resources department is responsible for all strategies, measures, and areas of action that significantly contribute to a company’s development. However, it is not only the HR department that should be involved in personnel management processes – managers across the organisation should also play an active role. The original definition, according to the Gabler Business Dictionary, is as follows:
"The sum of all personnel-related areas of design and individual measures to support current and future business development and the associated processes of organisational change. Comparable terms include personnel administration and personnel economics."
In personnel management, many tasks and objectives must be implemented in the best interest of the organisation. The following points are essential for business success – and often present HR professionals with major challenges. To carry out these core tasks effectively, sustainable and strategic planning is essential – and a positive corporate culture should not be neglected.
Key Responsibilities of Personnel Management
- Selecting the right personnel – in alignment with the company’s goals
- Assigning employees to the right positions
- Targeted development and promotion of staff
Goals of Personnel Management
- A complex task: balancing the needs and expectations of employees with the strategic goals of the organisation. This requires sensitivity on the part of the HR department.
- Maintaining or improving employee satisfaction is essential. Why? Because satisfied employees and good working conditions mean fewer absences due to illness, greater motivation, productivity, and creativity.
- When employees are retained over the long term, turnover rates remain low, and satisfaction is preserved. It is crucial to make use of opportunities to promote employee retention.
- Retaining talent is essential, particularly in a tight labour market where finding replacements is difficult. Recruitment and onboarding of new employees require time and financial investment. Long-term, this increases competitiveness and reduces personnel costs.
Sub-Areas and Functions of Personnel Management
Personnel management is divided into several sub-areas. The HR department often acts as a key interface, but managers, team leads, and staff are also involved in each area.
Personnel Planning
Personnel planning is one of the core tasks of personnel management. This involves determining and analysing future staffing needs – in the short, medium, and long term. The more proactive the planning, the better for the organisation. Additionally, the qualifications of potential candidates are carefully assessed.
Personnel Procurement
This refers to the optimal filling of vacancies within the company – whether internally or externally via the appropriate channels. When a position becomes vacant, it may first be filled internally. If this is not possible, a tailored job profile, an attractive job advert, effective applicant management, and a sensitive selection process are essential.
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