Today a good personnel management is the most important competitive factor for any business organization. Personnel management is an extension to the general management and is concerned with manpower planning, acquisition of competent workforce, their performance appraisal, training and development and compensating them and have good relations with them to make their fullest contribution to the organization. In a highly competitive environment of today‟s business, ignoring cultural and religious issues in people management is committing corporative suicidal. The purpose of this research thesis is to explore the nature and contents of personnel management in Islamic perspective. Present research thesis is designed to answer questions such as; do Islamic teachings offer relevant perspectives on personnel management issues? Are the treatments of personnel management issues in Islam compatible with evolving organizational concepts? The present research is aimed at developing a conceptual framework of personnel management based on the Islamic principles, not only to ensure success in the running of the business but at the same time making sure that the moral and ethical values of Islam are observed. It addresses the modern issues of personnel management in line with early Islamic instructions. The research work is conceptual and theoretical in nature. A qualitative approach based on extensive review of relevant literature and the employment of examples from Islamic history has been used in this research thesis. It should be mentioned that this research does not intend to show any empirical findings but it endeavours to look into the original sources of Islam while extracting other sources of the modern approach of management. It is tried to survey Islamic texts and treaties then compare Islamic instructions to what is prevailing in business organizations today. As a result the fundamental functions of personnel management are discussed according to the socio-economic fabrics of Islam whose suitability is relevant for modern day business operations. This research promises to open new avenues to understanding personnel management issues in Islamic societies and organizations working under the influence of Islamic instructions.