Personnel Management Study Notes: Check PR Full Form, Definition

By BYJU'S Exam Prep

Updated on: September 11th, 2023

Study Notes: Personnel Management

Definition: Personnel management compact with the managerial function of estimating and tabulating human resources needs for meeting organizational goals through people at work and their relationships with each other.

Edwin B. Flippo states“Personnel Management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration and maintenance and separation of personnel to the end that individual, organizational and societal objectives are accomplished.”

The scope of personnel management is very wide and it is as follows:


BBA Important Exams

Let’s Understand the Scope of Personnel Management

1) Organizational Planning and Development:

Organizational planning is associated with the division of all the works to be performed at various positions, departments, and divisions in a way that they become manageable and efficient units. In the various departments, integration and coordination are essential. For preset objectives, differentiation and integration are requisite for the fulfillment of the organization.

The main purpose of an organizations’ set long-term and short-term objectives, development of technology  of production, conclusive about the nature of the product, keeping in mind the external environment

2) Staffing and Employment:

The staffing process is a sequence that leads to a continuous filling of positions at all levels in the organization. The staffing and employment include:

  • Manpower planning
  • Recruitment
  • Selection
  • Placement
  • Induction and Orientation
  • Promotion, Upgradation, Transfer, Demotion
  • Separations.

    Let’s understand the process of Staffing and Employment

  • Recruitment: Recruitment contains the process of identifying, attracting, interviewing, selecting, hiring employees. 
  • Placement: According to the job description it refers to providing the position his/her job specification and personality needs.
  • Transfer: It is a process that include the transferring of an employee from one position to another in which his ability can be best utilized. From developing transfer policy, counseling employees and line management on transfers, and evaluating transfer policies and procedures.
  • Promotion: It is concerned with rewarding competent employees by giving them a higher position, responsibility, and high pay scale. On a merit basis or performance basis, they will provide promotion. 
  • Separation: The process is concerned with a few important points as resignation; lay-off, disability, discharge, or retirement. 
  • Induction-Orientation: It means the introduction of an employee to the organization and the job by giving him all the possible information about the organization’s history, philosophy, objectives, policies, and procedures, types of production, future development guidance, goodwill of the company in the market, authority, and responsibility as well as superior and subordinates of that particular employee.
  • Selection Process: Selection is the process of choosing the most appropriate candidates for the right job. It is a process of offering jobs to the required candidates.
  • Manpower Planning: It is a process of analyzing the present and future vacancies that happen, maybe due to sick leave, leave of absence, discharge, retirement, promotion, transfer.

3) Training and Development:

Training and development related to educational activities within a company are designed to magnify the knowledge and skills of employees while providing information and instruction on the exercise to better perform specific tasks.

4) Compensation, Wage and Salary Administration:

  • It is related to the remuneration to the employees for services rendered and motivating them to attain the performance.
  • Job evaluation is the systematic process of determining the relative value of different jobs in an organization. Job evaluation aims to compare jobs with each other to create a pay structure that is fair, equitable, and consistent for everyone.

5) Employee Services and Benefits:

These aspects are disturbed with the process of sustaining and maintaining the workforce in an organization. Safety provision inside the factory. For this purpose, policies, techniques, procedures for the health and safety of the employees are developed, the line management is advised on the implementation of safety programmes, and training has to be given to workers in safety practices, the causes of accidents have to be investigated and the effectiveness of the safety programmes evaluated periodically. Employee counseling and communicating are the process through which employees are given counsel in solving their work-related problems, mental problems, and personal problems. The line management has to be advised on the problems that may occur regularly.

6) Employee Records:

Complete and up-to-date information is maintained about employees so that these records may be utilized at the time of transfer, promotion, demotion, giving merit pay, or sanctioning leave at the time of termination of service/retirement. Such records include things like education and qualification, the performance of psychological tests and interviews, job performance, leave, present, absence, number of hours worked, promotions, rewards, and punishments.

7) Labour Relations:

Labour relations are related to the maintenance of healthy and peaceful labor-management relations to run a smooth and uninterrupted flow of work/production.

8) Personnel Research and Personnel Audit:

These points are related to the following areas:

(i) A systematic question into any feature as to how to increase an organization’s personnel programs containing recruitment, selection, placement, training and development, wages and salary, etc.

(ii) Few important things that are monitored and supplied to the top managements data affiliated to quality, productivity, labor turnover, grievances, absenteeism, strike, lockout, wages, accidents, etc

(iii) Policy, procedures, findings, and feedback submitted to the top executives so that it may alter or improve existing personnel policies and procedures.

(iv) Morale, attitude, and interest surveys.


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