To do this, all employee policies and operating procedures should be developed and negotiated with great care. Some employees may not perform satisfactorily simply because their firm offers competitive compensation, benefits, and working conditions. In addition to these financial or physical compensations, they want responsibility, the opportunity to develop, and recognition of accomplishment in their jobs. The law have established requirements for pension and other benefit plans, and also bar mandatory retirement at age 65. Complying with such changes presents real challenges.
Personnel management works to achieve practical solutions to such problems.
In large firms, it generally provides support to line management. In this staff capacity, the personnel department has the responsibility to develop and implement policies, procedures, and programs for recruitment, selection, training, placement, safety, employee benefits and services, compensation, labor relations, organization planning, and employee development. Often, the owner-manager of a firm also has to be the personnel manager. In such a case it is necessary to have an overview of current trends and practices in personnel management. All small businesses must staff their operations.