Exact error message:
HSCLA296 The Dynamic Partitioning Resource Manager (DRM) capability bits for partition LPAR1 are null. The management console requires the DRM capability bits in order to determine if partition mobility functions are supported on the partition.


I have seen this error generated when RSCT and RMC on the LPAR are not communicating correctly with the HMC.

Things to check:

Check you have valid routes to the HMCs from your LPAR
Confirm your LPAR can communicate on port 657 to the HMC (telnet hmcip 657)

Stop and restart RSCT and RSCT_RM on the LPAR.
stopsrc -g rsct_rm; stopsrc -g rsct; sleep 2; startsrc -g rsct

Check the output from lsrsrc shows correct HMC details.
For HMC v7 - lsrsrc IBM.MCP
For HMC v6 - lsrsrc IBM.ManagementServer