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What Is the Importance of Personnel Management

Written by hema

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Every organization considers its work force as an important asset, hence it has look after them very carefully. Today many company look into personnel management as very vital for the survival of its business. Organizations have understood the importance of personnel management by putting proper resources into developing a personnel management policy in place.


Personnel management covers a wide range of topics; it includes acquiring, training and maintaining a contented workforce. It is based on the human point of reference while helping the staff to develop their potential to the maximum. Hence personnel management has gained importance in the last two decades. Let’s see the importance of personnel management.

To Stay in Competition: the main factor for any organization is to stay in competition. For this the firm needs to train its employees and to provide resources they need to keep them updated from time to time. Personnel management helps the employees to be in line with the latest technology and helps the work force to quickly adapt to changes.

Retention of Employees: personnel management focuses on its work force right from the first interview through the rest of the employee’s tenure in the company. Hence the personnel management should plan its retention policies such that the employees stick to the company for a long period. This can include attractive pay packages, employee career development programs, proper channel for feedback etc. If personnel management is efficient for each employee from the foundation then it results in higher rate of retention.

Creates Team Work: personnel management creates a bond between firm and its employees. In turn it also encourages them to build up a sense of team work. With this kind of bonding the employees understand their role and there by learn to respect the role of others. This helps the company to have a proper channel for decisions to be followed and the composition of the organization is strengthened.

Management Effectiveness: once the employee and company bonding happen, a sense of belonging occurs in the mind of work force. This helps the management to focus on core issues like departmental procedures and employee development. The organization need not worry about other administration issues like employee dispute and employee turnover. Thus personnel management helps in managerial effectiveness.

Hence personnel management is very important for any organization to run smoothly. Manpower planning is a very vital role of any personnel department. Personnel manager is a person who the entire company depends on he or she is acts as a liaison officer for all the business activities of an organization and its human wealth. 

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