Personnel management is something that many companies focus on, while other companies tend to spread out personnel management responsibilities to various executives and managers. The New York State Department of Civil Service website defines personnel management as the activities required to attract employees, retain employees and help them to develop as individuals and as a group. Organizations that understand the importance of personnel management put the proper resources into developing personnel policies.

Staying Competitive

Part of personnel management is developing training for employees and providing the resources they need to stay up-to-date on their jobs. Some of those resources include an on-site library of industry information, encouraging employees to continue their education by subsidizing tuition costs and notifying employees of seminars and classes that would assist in the development of their job skills. When used in this manner, personnel management keeps your workforce current on the changes in the industry. It allows your company to adapt quicker to changes and keeps you ahead of the competition.


Human resources professionals focus on personnel management from the employee's first interview through the rest of employee's tenure. A competitive pay plan and benefits package entice employees to work for your company. Ongoing administration of benefits, employee career advancement and an interactive review process by departmental managers help the employee to develop to her maximum potential. When personnel management is effective for each employee from the beginning of employment, it results in a higher retention rate.


Effective personnel management creates strong bonds between the company and the employee, and it also encourages employees to develop a sense of teamwork, according to the Free MBA website. Team-building exercises help employees learn to work together, and that works together with the focus on the individual to create a stronger personnel framework. Employees understand their role within the company, and they learn to respect the roles of others. Company decisions follow their proper channels, and the structure of the organization is strengthened.

Managerial Effectiveness

One of the more important relationships for any company is the one between a manager and an employee. By developing the employee and the team, the staff understands how its actions affect the productivity of the entire department, according to the Management Study Guide website. When employees take a personal interest in the productivity of their department, this helps managers to focus more on departmental procedures and employee development while having to focus less on administrative responsibilities such as dispute resolution and employee turnover.