Functions of personnel management in an organization

Functions of personnel management in an organization

Employees are the most important factors of production in any company; the overall success of an enterprise is based on their activities. From this article, you will learn the basic functions of the personnel managers in every organization.


What is personnel management?

Personnel management involves all activities used to obtain, control and maintain a satisfied workforce in a company. Its tasks are implemented by specially educated managers.

Personnel management makes it possible to determine the following:

  1. Goals and guidelines for working with staff.
  2. Means, forms, methods of accomplishing the set goals.
  3. Ways to organize work to implement the decisions taken.
  4. Monitoring the implementation of planned activities.
  5. Continuous improvement of the personnel management system.

Basic functions of personnel management in an organization

  • Selection, recruitment, training (if necessary) and control of personnel in order to improve the level of the company's success.
  • Personnel assessment.
  • Development of a favorable moral climate and organizational structure to enhance the creative activities of each employee.
  • The most effective use of the potentials of employees and their remuneration.
  • Providing a guarantee of social responsibility to each employee.
  • Analysis of human resources and planning of its further development.
  • Motivation of staff.
  • Training of personnel.
  • Creation of comfortable social conditions in the team.
  • Answering individual questions regarding the psychological compatibility of employees.

These functions of personnel management are closely related and help to ensure work goes smoothly in every organization.

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personnel management in an organization

Recruitment process

When there is a need for recruitment, the employer must answer the following questions:

  1. How many employees does the organization need?
  2. Where does the organization plan to search for potential employees?
  3. What kind of specialties are required of prospective workers?
  4. Is it necessary to have experience in this field?
  5. How does the organization intend to spread information about recruitment?
  6. By what method does the manager plan to evaluate the effectiveness of new employees?

In order for the approach being employed for selection of personnel to be most effective, the employer should consider each post and candidate separately.

personnel management

Members of the personnel management department have to first find out what goals each candidate pursues before making their decisions; that way, they will be able to give preference to the most reliable and responsible employees. In addition, they also have to consider what each candidate will bring to the company.

  • Personnel assessment
  • This is a necessary event that helps management assess the creativity and performance of their staff.
  • Staff assessment allows management:
  • Check the readiness of the employee to perform his duties.
  • Determine the possibility of promoting the employee.
  • Assess the ability of an employee to achieve the goals set by the management team.
  • An employee's evaluation can be obtained in the following ways:
  • Potential assessment (definitions of professional, psychological qualities, work experience, etc.).
  • Individual assessment ( this is done to determine the qualities of a particular employee and how he performs his tasks according to the position he occupies).
  • Personnel certification (collected as the final result after a certain period of time).

The best way to evaluate both the personal qualities and professional skills of an employee, is to simply observe him at work.

Development of a favorable moral climate

Collective coordinated work is the basis for the successful operation of a company; however, every team consists of people with different temperaments, thoughts and feelings, so a lot of effort needs to be put into creating a favorable moral climate in every organization.

Functions of personnel management

A favorable moral and psychological climate can be achieved by ensuring the following:

  • High regard for each other, combined with trust.
  • Benevolent, business criticism.
  • Full awareness of the members of the team on the tasks at hand, state of affairs and when different decisions are implemented.
  • Free of expression of one’s opinions on issues that affect the whole team.
  • Calm attitude to the opinions expressed by colleagues.
  • Emotional involvement and mutual assistance.
  • Ability of each member of the team to take responsibility for the state of affairs in the organization.

Motivation of staff

This is an extremely important function in personnel management and one of the major factors that determine the company's success. There are several types of motivations such as material, psychological and social.

Motivation is more than just monetary bonuses. In general, there are some steps that can be taken to motivate the staff of a company; they include:

  • The subordinates should realize their importance to the company and see the results of their activities. When a worker participates in important negotiations, goes on business trips, has a status in the company, this affects his performance favorably.
  • Unexpected promotion. It may seem strange but unexpected encouragements and promotions affects the employee's performance much better than regular, predictable incentives.
  • The immediate response of the administration to the actions of the employees is invaluable in increasing productivity. If an employee sees that his actions are not only noticed by superiors but also rewarded at once, he becomes highly motivated.


Training is one of the main functions of personnel management; the need for staff training could be caused by any of the following factors:

  • The growth of communication opportunities or the introduction of new/upgraded technologies.
  • The world has become very similar to a market; the leading countries are those with more advanced technologies, continuing education programs and a working engineering system.
  • The best option for any company is to promote the available staff rather than selecting new workers - this is an excellent motivation for employees that also saves the company a lot of money.

There are 3 types of training:

  1. Staff training - this involves enlightening employees on the general activities of the company and all other relevant fields.
  2. Advanced training - this is to help employees improve their work, and therefore, increase the company’s profits.
  3. Retraining of personnel - these trainings are carried out to help employees master new information.

The subjects of each training session must cover basic knowledge (theoretical, practical and methodological info that an employee needs in his or her position), skills (the ability to perform assignments of the certain profession) and mode of operation in the company.

Creation of comfortable social conditions in the team

If a newcomer is not warmly accepted in a team, it will be unreasonable to expect excellent results from him no matter what professional skills he possesses. The general working environment has a very strong influence on employees.

The following factors can guide you in determining how comfortable the social condition in a team is:

  • The level of staff turnover
  • Labor productivity
  • Product quality
  • The number of delays and absenteeism
  • The number of claims and complaints that come from employees or clients
  • How much time it takes to complete tasks
  • Excessive caution or negligence in handling equipment
  • The frequency of breaks at work
Functions of personnel management in an organization

As you can see, the roles of personnel management in an organization are quite important and need to be taken seriously in order to ensure a smooth and harmonious work flow in a company. We wish you good luck in your business activities!

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