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The Roles of Personnel Management for Your Business

Human resources are an essential part of the course of a business. Personnel management is part of the efforts made by companies for the human resource recruitment process. Not only that, but this management also pays attention and assesses the performance of employees who work in the company. When an organization or company controls this management, the organization will be able to carry out the company’s functions properly. In addition, this function is related to workforce recruitment, training, and motivating employees in doing their work to the maximum. In recruiting your employees you can use hr system to simplify the recruitment process in your company, such as CV screening, applicant tracking, test scheduling, and more.


Personnel management is about employee competence and fostering a mutual sense of belonging. As an essential element in the company, personnel has a significant role in realizing the company’s goals. Therefore, the personnel department of a company must choose people with qualified competencies following the company’s goals.

Related article: 4 Proven Tips for HR Managers to Avoid Bad Recruitment

What Is Personnel Management?

Personnel Management Definition | Image
Source: rawpixel.

Personnel management, in general, is a type of management related to the planning, selection, and deployment of employees. In short, personnel is a term used to describe the process of hiring and developing employees. Therefore to better understand it, the following is an understanding of personnel.

1. Edward Francis Leopold Brech

According to Brech, personnel management is essential management for a company. Especially when it comes to human resources, this management is needed to help realize the organization’s goals. To achieve these goals, companies need human resource arrangements in them. 

2. Perfecto S. Sison

Personnel management, according to Sison, is the function of management concerned with promoting and enhancing the development of work effectiveness and advancement of the human resources in the organization. In addition, this function is achieved through proper planning, organizing, directing, coordinating, and controlling employee activities to achieve the enterprise’s goals. 

3. Prof. Edwin B. Flippo 

Flippo stated that personnel is a process of planning, organizing, directing, and controlling the procurement of people. The process doesn’t stop there but also regulates the employees’ development, compensation, integration, maintenance, and termination of employment. As a result, these management functions will help achieve organizational, individual, and societal goals.

Differences in Personnel Management and HR

Personnel management interview | Image
Source: rawpixel.

Most people perceive that the personnel department and the Human Resource Department (HRD) are the same things. Although the two are related in practice, they are different in principle. The most fundamental difference lies in the scope of their work. Personnel covers administrative activities to support HRD functions.

Personnel, in particular, has a close relationship with employee planning and selection. Its main responsibilities relate to the administration, compliance, and retention of employee databases. Not only that, but personnel also includes training and development of human resources to achieve the company’s vision and mission.

Meanwhile, HRD’s job, in general, is to take care of things related to employees in the company. HRD’s daily work includes the recruitment process, job evaluation, employee benefits, to job cuts (layoff). In other words, HRD, in its daily activities, is responsible for handling problems within the scope of employees, managers, and employees at different levels.

In conclusion, personnel and HRD are interconnected to each other. Without personnel management, the HRD function will be challenging to carry out. The two help each other develop human resources within the company to bring it one step closer to its goals. However, some companies combine the personnel department with HRD, where HRD performs personnel tasks. In addition, this can break down the focus level of HRD in carrying out their duties. Manage employee activities and performance more practically and regularly with hris software as a smart solution for all types of businesses from various industries.

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Personnel Management Tasks

Personnel management as an essential part of the company is always related to human resources or employees. The main task of personnel management is the procurement of quality human resources. Other than that, personnel management has other essential and related duties, including the following. 

  • Create a work plan for employees, including an analysis of the position in the job, the job that will be the employee’s responsibility, and the specifications. 
  • Conducting the selection of prospective workers according to the qualifications and number needed by the company and ensuring the recruited workforce has been in the proper position according to their respective specifications. 
  • Draw up a budget plan related to the company’s workforce. 
  • Determine the human resources that the company needs. 
  • Store and manage employee databases. 
  • Educate and develop human resources, including providing guidance and education to build employee skills. 
  • Take care of matters related to retirement and employees’ termination. 
  • Ensure the well-being of employees in the company. 

Personnel Management Function

Personnel management carries out several functions in an organization or company to achieve its goals. Generally, there are two functions of personnel management, namely management functions, and operational functions. 

A. Management functions

According to George R. Terry, management is the act of planning, organizing, implementing, and controlling by utilizing all available resources to achieve goals. Meanwhile, the management function of a company’s human resource management section consists of 4 components. This component is a benchmark of a company’s success in achieving established goals. The four parts of the management function are:

  1. Planning 

Planning is a fundamental function of personnel management that will help the company achieve its goals. In this function, personnel will carry out program planning accordingly to the company’s vision. 

  1. Organizing

After planning and determining each employee’s functions, the personnel manager will form an organization. The organization contains various relationships between positions and serves as a way to achieve the company’s goals, especially through organizing people to the correct job description.

  1. Directing

Furthermore, the personnel manager carries out a briefing on the work. After that planning and organizing, it will be directing employees to follow their respective job descriptions. Therefore, directing the employees to work effectively will help the company in achieving its goals.

  1. Controlling

In carrying out this function, personnel management supervises employee performance, observations, and comparisons between planning and organizing. From here, the personnel manager will find out if the activities in the company have gone according to plan. 

Related article: How to Choose the Right HRM System for Your Organization

B. Operational functions

The next function of personnel management is the operational function. This function covers various aspects of the management of human resources in the company, ranging from recruitment to employee maintenance. The following is an explanation of each of these operational functions. 

  • Set the procurement of employees following the company’s needs to achieve its goals. Of course, this also includes the expertise needed by the company. 
  • The company trains its employees to improve their skills.
  • Give fair and proper compensation and awards to employees. Compensation is provided by the performance of employees in their efforts to help the company achieve its goals. 
  • Integrate the desires of the organization and individuals within the company. So, personnel managers must ensure the integration process runs well. Thus, they can establish cooperation between all parties to achieve common goals. 
  • Maintain and ensure that employees’ physical and psychological condition is fine through various health services. 


In general, personnel management is an area of activity related to the management of human resources in the company. This management ranges from procurement to maintenance of the employees in the company. Furthermore, personnel and HR are two different things but cannot be separated. Their daily activities include many tasks and functions, such as management and operational functions. These functions will support the companies’ goals.

Human resources are an essential part of a company. In other words, the company won’t achieve its goals without good human resources management. Therefore, the company needs personnel management to run its business. Personnel management tasks consisting of many parts such as attendance, payroll, recruitment, etc., will be more manageable when your business uses HashMicro’s complete and automated HRM Software application. You can start HashMicro’s HRM Software demo for free now.


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