Personnel management methods: what exists and how do they differ

effective personnel management system

Having processes in place to manage personnel is essential for successful business operations. Without the right staff management methods, morale can suffer, productivity can decline, and costly problems, including high employee turnover, can occur. So, understanding what options are available and how they differ is critical if you are a leader looking to create an effective personnel management system.

Economic method

The economical method of personnel management is focused on cost-cutting to maximize efficiency and increase profit. This approach emphasizes skill-based pay plans and reducing staff costs by streamlining processes and looking for ways to reduce labor needs. It also involves offering incentives and bonuses to employees who go above and beyond their job descriptions.

Socio-psychological method

The socio-psychological method is based on the idea that personnel management should be focused not only on costs and productivity but also on creating a workplace environment conducive to employee satisfaction and motivation. This approach uses behavioral science concepts such as the Hawthorne effect and Maslow’s hierarchy of needs to foster positive relationships between staff and management, encouraging team-building and communication. This method also involves using performance appraisals to measure employee efficacy, setting realistic goals for development, and evaluating the effectiveness of personnel management activities.

human resources management method

Human resources development method

The human resources development method is focused on recruiting and retaining the best talent by developing a strong organizational culture and providing employees with growth opportunities. This approach involves developing job descriptions, designing training programs, and using performance management systems to ensure that employees are adequately trained and given the necessary support to reach their full potential. It also allows employers to identify areas of weakness in their operations and use those insights to make improvements in the future.

Strategic human resources management method

The strategic human resources management method is a more comprehensive approach that uses data-driven decision-making to align personnel management with the organization’s overall goals. This method uses metrics and analytics to evaluate performance, establish objectives, and develop strategies for achieving those objectives. Human resource professionals can use this approach to identify areas of opportunity and create plans to address those opportunities. Additionally, this method enables organizations to develop a more efficient and cost-effective personnel management system by considering the company’s long-term strategy.

Ultimately, no one method is better than another when it comes to personnel management. The best approach for an organization will depend on its specific needs, goals, and culture. By exploring the different methods available and weighing their pros and cons, businesses can develop a personnel management system that best fits their organizational objectives.


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