In my opinion, people management is very important because it will help increase employee performance by setting them up the right way for their job (right people for the job), solving employee problems, and creating a positive workplace culture, thus improving employee morale.
For example, when I do an internship in POLYTRON (electronics company in Indonesia), I was put in a team with other intern led by a supervisor. The supervisor will direct and give us tasks and project for our internship that suits our proficiency and job description. If we encounter problem, the supervisor will also help us to solve it.
The example above is one of the people management that is done in POLYTRON where I was assigned to a job that suits my skills and proficiency.