Research object: the process of personnel management; the purpose of the work: theoretical and methodological position, methods and tools for performance management personnel management engineering enterprises by managing transaction costs; research methods and instruments: the dialectical method, the method of extremal grouping of parameters, statistical, cluster and discriminant analysis, canonical correlation analysis, system and process approaches, the method of expert evaluations, cognitive modeling; theoretical and practical results: the interdependence between the level of personnel management efficiency and volume of transaction costs on the studied mechanical engineering enterprises, which allowed to establish the following: an increase in total transaction costs, contributes to higher personnel management efficiency; the procedure of determining the level of personnel management efficiency by classification of enterprises, that lies in the allocation of factors, which generalize partial indicators of the personnel management efficiency, such as: economic, social, psychological, industrial-organizational, personnel costs and intangible assets; methodical approach to performance management personnel management, which based on: building a matrix of functional processes, identifying strategies and objectives of management personnel, the justification of private indicators of functional processes, performance management of staff and their targets, developing budgets, the proposed process and the formation of a complex of measures to improve the latter; organizational support of improving personnel management of enterprises, that allows to form the necessary competence of personnel, scientific-theoretical interpretation of the economic substance of category «personnel management efficiency» in the system of economic categories of enterprise management, which regarded as the degree of impact of costs incurred on staff, a measure of achievement goals, the company's ability to grow by providing high quality products and quality of life of personnel; classification of transaction costs, the distinctive feature of which is the allocation of transaction costs, which are formed in the operation of the system of personnel management at enterprises in conjunction with the transformation and management costs; procedure of formation and selection of scenarios to improve the personnel management efficiency; subject and degree of introduction: developments are put in practical activity of practice JSC Plant «Pivdenkabel», JSC «Turboatom», KNUE in Teaching «National Economy» for the bachelor's degrees of speciality «Human Resource Management and Labour Economics», sphere of the use: personnel management in engineering enterprises, educational process.