Personnel Management

Defined as the management function that helps managers in the procurement, development, compensation, integration, maintenance and seperation of human resources so as to accomplish individual, functional, organisational and societal objectives.

Objectives Primary- Ensuring the availability of competent and willing workforce to the organisation Secondary-1. Personal 2. Functional3. Organisational4. Societal

1. Personal Objectives - Assisting employees in achieving their personal goals - Done by retaining and motivating employees

Supporting functions Training & Development Performance Appraisal Compensation Placement

2. Functional Objectives- Assisting each department to contribute at the level appropriate to the

organisation needs

Supporting functions Performance Appraisal Placement

3. Organisational Objectives - To recognise the role of HR department in bringing about Organisational efffectiveness

Supporting functions Human Resource Planning Employee Relations Selection Training & Development Performance Appraisal

4. Societal Objectives- To meet the needs and challenges of the society while minimising the negative

impact upon the organisation

Supporting functions Maintain legality in every action Giving proper benefits Maintain good Union-Management relation

Personnel Management Vs Human Resource Management

Sl No. Charateristics PM HRM

1 Employee Contract Careful practice of Go beyond Contract

written contract

2 Management Action Based on procedures Based on business needs

3 Managerial Task Monitoring Nurturing

4 Management Skill Negotiation Facilitation

5 Respect for employees Low Greater

(treated as tools/m/cs) (treated as assets)

6 Key Relations Labour Management Customer

Personnel Management Vs Human Resource Management Cont..

Sl No. Charateristics PM HRM

7 Job Design Division of Labour Teamwork

8 Job Categories Many Few

9 Pay Based on Grades/ Based on Performance

Experience

10 Communication Indirect Direct

11 Speed of Decision Slow Fast

12 Management Role Transactional Transformational

13 Conflict Handling Try to reach temporary Manage Climate &

truce Culture

Human Resource Management Functions

Categorised as 1. Managerial2. Operative3. Advisory

Managerial functions include: Planning - refers to the determination of short to long range plans to accomplish

organisational goals and objectives and formulation of policies to achieve them

Organising – Determination and development of organisational structure and allocation of jobs according to predetermined plans

Staffing – Process by which managers select, train, promote and retire their subordinates

Directing – Process of activating group efforts to achieve desired goals

Controlling – Process of setting standards of performance, checking to see how actual performance compares with set standards

Operative Functions

Procurement Development Compensation Integration Maintenance

Job Analysis

HRP

Recruitment

Selection

Placement

Induction

Transfer

Promotion

Seperation

PerformanceAppraisal

Training

Career Planning &

Development

Executive Development

Job Evaluation

Wage & SalaryAdministration

Bonus & Incentives

Payroll

Motivation

Job Satisfaction

GrievanceRedressal

CollectiveBargaining

ConflictManagement

Discipline

Safety

Social Security

Welfare Schemes

Personnel Record

PersonnelResearch

PersonnelAudit

Health

Advisory Functions

Include:

1. Giving advise to top Management

2. Giving advise to functional heads

Human Resource Principles

Principle refers to the fundamental truth established by research, investigation and analysis

HR principles helps HR managers in formulating policies, programmes, procedures

and practices of Human Resources

Include:1. Principle of individual Development

- Offering equal opportunities to every employee to realise his /her full potential

2. Principle of Scientific Selection- Selection of right person for the right job

3. Principle of free flow of Communication- HR dpt should maintain/keep all channels of communication including open, upward, downward, horizontal, formal and informal ways

Human Resource Principles Cont…

4. Principle of Participation

- Include employee representatives at every level of decision making

5. Principle of fair remuneration

- refers to the fair and equitable wages and salaries commensurating with jobs

6. Principle of Incentive

- Recognise and reward for good performance

7. Principle of Dignity of Labour

- Treating every job and every job holder with dignity and respect

Human Resource PoliciesPolicies refers to a plan of action that guides managerial decisions.

Should be specific and commits management to a definite course of actionInclude:1. Policy of hiring people with due respect to factors like reservation, marital status and gender

2. Policy on terms and conditions of employment including compensation, hours of work, overtime, promotion, transfer, layoff

3. Policy with regard to medical assistance like sickness benefits, ESI, company medical benefits

4. Policy regarding housing, transport, uniform

5. Policy regarding training and development which explains its need, methods and frequency

6. Policy regarding industrial relations which include trade union recognition, collective bargaining, grievance procedure, participative management and communication with workers

Human Resource Policies- Advantages

Ensure consistent treatment to all personnel discretion like favouritism and discrimination in the company

Serve as standard of Performance

Help to build employee, motivation and loyalty

Helps to resolve interpersonal, intrapersonal and intergroup conflicts

Continuity of action is assured even though there is a change in top management

Factors to be considered in framing HR Policies

Past practice in the Organisation

Prevailing practice in the competitor/ rival companies

Attitudes and Philosophy of the founders of the company and the top management

Knowledge and experience gained through handling personnel problems in the company

Changing Role of Personnel Management in India

Personnel Management has been changing dramatically over the last century

End of 19th Century - 1920 Personnel Management concept was not there

Routine Organisational HR activities were handled by welfare officers/welfare secretaries

Concentrates mainly on the welfare of Women & Children

Changing Role of Personnel Management in India Cont…

Period Development Stage Feature Emphasis Status

1920s-1930s Beginning stage Capitalistic Statutory, Clerical

mentality Welfare

1940s-1960s Growing stage/ Technical, Introduction Administrative

Struggling for recognition Legal of

new techniques

1970s- 1980s Achieving Sophistication Professional, Regulatory, Managerial

Legal Imposition of

standards on

other function

1990s- Promising Philosophical Human values, Executive

Productivity

through people

HR Managers Function

Provide individual development to the Organisation with skilled workforce for all levels

Devising suitable training programmes for transference and development of individual skills to suit changes in working patterns

Structuring procedures for recruitment, training, placement, promotions and movements with in the industry

Provide employee services for matters concerning health, work related facilities, welfare services etc

Transformation of HR Managers function

Management of HR Development and Maintenance of

Organisational Effectiveness

HR Managers Role

Primary - Interpreting the progressive needs of the organisation and

direct potential towards a common goal

Secondary

1. Collective Bargaining Role –

Centered around dealing with trade unions which might be added to the development of strategies for handling Industrial relations

2. Implementation of legislation Role-

Implying, understanding and implementing the growing amount of legislation

HR Managers Role Cont…

3. Bureaucratic Role-

Implementating a series of rules about behaviour at work, dealing with recruitment, managing absenteeism

4. Social conscience of the business Role –

Refers to welfare functions with regard to society

5. Performance Improvement Role-

About integrating personal function with businesss needs

Competencies needed for an HR Manager

Should be a master in the decision science of HRShould have good knowledge about Constitution, Govt’s labour policy,

General economic condition prevailing in the country

Capability to understand and manage peopleShould be sympathetic and have concern towards employees demandsShould be fair in the matters of promotions, demotions, transfer, layoffShould be firm in enforcing discipline

Capability to create and adapt with new culture/mindsetShould be tactful & resourceful

Responsive to social expectationShould be socially committed by undertaking activities that comes under social responsibility

Ability to express himself or herself