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The importance of personnel management is related to its relevance in the organization of an effective workforce. A personnel management department of any organization is responsible for human resources and human capital related issues, such as the identification of the manpower needs in the organization, the recruitment of the necessary employees to fill the identified manpower requirements, and exercises aimed at fitting the selected manpower into positions that match their capabilities. The importance of personnel management can also be seen in its efforts toward the improvement of the human capital.
When it comes to manpower planning, the importance of personnel management includes carrying out an analysis of the present and future manpower requirements of the company. A knowledge of the specific manpower needs will help the personnel department know the exact number of employees needed to fill open vacancies and also to make projections regarding the possible future manpower requirement of the company. This knowledge is also necessary for planning the different types of orientation and training for the different types of employees.
Another role of personnel management is the recruitment of the needed manpower utilizing the information gained during the process of manpower planning. The process of recruiting employees may be from within or external, which involves the use of employment agencies to supply both temporary and permanent employees as well as other forms of employee recruitment drives. For instance, a company could place adverts in different sources like newspapers, magazines and on the radio. It may also engage in direct college recruitments, where representatives of the company would organize job fairs on campuses for the recruitment of recent college graduates. Internal sources of employee recruitment include such processes as the promotion of employees within the organization, the transfer of employees from one division or department to another, and the reabsorption of ex-employees who may have been laid off during periods of downturns in the economy.
After the selection of the appropriate employees through interviews and various tests, the personnel department will proceed to conduct orientations for the new employees. This also includes an investment in the human capital of the employees through training and further personal development programs aimed at improving the performance of the various individuals. As such, another importance of personnel management is the increase in productivity and output of the workforce through training. Some of these training methods include workshops, training on the job, and other resources like conferences and seminars.