Personnel Management

What is Personnel Management?

‘Personnel Management’ refers to the policies and steps taken to manage the staff of an organization. It includes all management of all aspects of the HR department right from the moment a new employee joins the organization to the time the employee exits the company.

English economist Sir William Petty coined the term in the 17th century when he was asked to find a way to place an economic value on the labourers and get an estimated value to showcase the power of the working class of England.

Although the terms ‘Human Resource Management’ and ‘Personnel Management’ are used interchangeably, they are essentially different. Human resource management is more focussed on the basic administrative functions of the HR related to the employees. However, personnel management is more concerned with the broader HR functions such as performance analysis, training, etc.

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