Personnel management encompasses all the tasks that deal with the relationship between the workforce and the company. Any aspect that affects the worker within the company can be included in this concept. In addition, each individual must be treated according to their specific needs to perform at their best. For that reason, human resources and people management go hand in hand.

Personnel Management Functions

Although it is often confused with HR management, they are different issues… although they are inevitably related. It is interesting to know the various functions associated with personnel management to understand the difference between personnel management and human resources management. 

We have three primary tasks: personnel administration and management, people development, and labor relations management.

Administration and Personnel Management

Simplifying the administration of the workforce is one of the main challenges of personnel management. This includes the management of job offers to implement the best digital solutions such as human resources software that allows you to manage tasks, vacations, days off and overtime or time control, etc.

People Development

Another of its functions involves the development of people, professionally and personally. For this reason, it is essential to detect the strengths and weaknesses of the workers and, from there, work to reinforce those weak points, tackle innovative projects or deal with changes in the company’s strategic plans. We have to help them grow in every way.

Management of Labor Relations

Issues such as diversity or the generational barrier can negatively affect relationships between workers, making the work environment difficult. Personnel management is also responsible for promoting employee relations so that internal communication is as fluid as possible. It will be in charge of ending any inequality or discrimination.

People Management Model

People management begins with recruiting and selecting people, and we will continue with performance evaluation. Based on this evaluation’s results, we will emphasize the training of workers without forgetting the remuneration and benefits to which employees are entitled. Good internal communication is critical throughout the process and encourages employee participation.

Recruitment and Selection

It is essential to have a clear organizational chart of the company and a clear and compelling description of the jobs and the skills required. This will also allow us to assess current jobs and know where the selection of new workers is necessary. We cannot ignore the onboarding process through which we will facilitate the adaptation of new workers.

Performance Evaluation

Through performance evaluation, we can boost the potential of the workforce. For this, it is essential to analyze how our employees work and know their strengths to try to make the most of them and their weaknesses to help them improve their weak points without forgetting the analysis of the potential of each worker, which will allow us to identify the most talented collaborators and the leaders of the future.

Employee Thing 

As we said, the performance evaluation also allows us to identify the training needs of our staff. Here we should have a training plan that will enable us to prepare our talent for the future in the short, medium, and long term. It is also interesting to calculate the ROI of training and the management of bonuses for training. Can train employees both in the company and outside of it.


Another aspect that, in part, depends on the performance evaluation results is the payment of our staff. It is essential to design appropriate remuneration policies for proper personnel management for each position, and salary should be commensurate with the responsibilities and requirements of the work. We cannot ignore the variable remuneration and social benefits, which are also part of the remuneration.


Promoting internal communication is the first step to proper people management. Thus, the company should have an internal communication plan where the channels by which said communication would be governed are established. As important is the horizontal as the ascending and descending vertically. Solutions such as the employee portal or a live chat will help us further enhance internal communication.


Finally, we must talk about participation. Promoting a good work environment, a pleasant and inclusive work environment that facilitates engagement between the worker and the company is essential for good personnel management. In this sense, we can always establish high-performance teams, the super elite of our workforce, or participation and improvement teams that help us improve daily.


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