Personnel Management UNIT V PERSONNEL MANAGEMENT

Concept: It is the process of acquiring, developing, employing, appraising, remunerating and retaining people, so that right type of people available at right position and at right time in the organization. Definition: The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards the accomplishment of that organizations major goals and objectives Edwin B. Flippo Staffing is the function by which managers build an organization through the recruitment, selection and development of individuals as capable employees __ Mc. Farland Features: 1. It is a specialized branch of general management and therefore act the principles of general management apply to this branch of management also. 2. It defines the relationships between employer & employee and employee & employee. 3. It considers the development of people at work, as an individual and as a member of the group. 4. It is goal oriented as its object is to contribute to the organizational goals. 5. It is not something to be used sparingly. Every manager is required to perform the personnel function on a continuous basis. Scope of Personnel management: The scope of personnel management is extremely wide. The important job of personnel manager is to get the things done through the people and thus he stresses the aspect of management of people. Personnel management in its widest sense is concerned with organizing human resources in such a way as to get the maximum output to the enterprise and to develop the talent of the people at work to the fullest individual capacity securing personnel satisfaction. Functions: 1. Recruitment and maintenance of labour force:- This function includes attracting, screening, testing, hiring and inducting men on the job.

2. Training: - Training is a must to prepare the worker to meet the

challenges of the new jobs or techniques and to maintain and to improve the quality of work so that the employees may earn more for themselves and contribute more to the unit.

3. Job analysis and Job description: It involves the studies of job

requirements of the enterprise and assignment of well defined functions to

SACET- RK

Personnel Management
jobs so that qualified employees may be hired. It forms the basis of wage determination

4. Compensation: It includes, determining wage rates, incentive systems,

rating of employees and performance standards.

5. Keeping personnel records: It includes collection of bio-data of all

employees pertaining to their work, i.e., training, job performance, aptitude, payment records etc...

6. Welfare: - It includes health and safety program, sanitary facilities,

recreational facilities, educational activities etc... The scope of personnel management is wide enough to cover all the organizations, where work is done by men. Objectives: Objectives of an organization are guidelines of its policies procedures and functions and the principles are the tools to accomplish these objectives. The main objective of personnel management is to utilize the available human resources. Objectives are divided in to two categories 1. General Objectives 2. Specific Objectives General Objectives: The statement of general objectives expresses the basic philosophy of top management towards the labour force engaged on the work. 1. Maximum individual development 2. Desirable working relationship between employer and employees. 3. Effective moulding of human resources as contrasted with physical resources. Specific Objectives: It refers to the various activities of the personnel department. 1. Selection of right type and right number of persons 2. Proper orientation and introduction of new employees. 3. Organization of suitable training programmes for better performance. 4. Provision for better working conditions and other facilities. 5. Provision of sound, fair and effective wages and salary administration. 6. Exit interviews 7. Good relations with trade unions 8. Management of grievances

SACET- RK

Personnel Management MANPOWER PLANNING

Concept: Manpower planning is also known as human resource planning (HRP). It is the starting point in staffing function. HRP is basically deals with forecasting personnel needs in future, assessing personnel supply and matching demand supply factors through personnel related programmes. The planning process influenced by overall organizational objectives and the environment of business. Definition: HRP includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what , if anything , must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future ___ Leap and Crino Features: 1. HRP is a process which includes various aspects through which an organization tries to ensure that right people, at right place, and at right time are available. 2. It involves determination of future needs of manpower in the light of organizational planning and structure. 3. It also takes into account the manpower availability at a future period in the organization HRP Process: HR plans need to be based on organizational objectives. In practice it implies that the objectives of the HR plan must be derived from organizational objectives. Specific requirements in terms of number and characteristics of employees should be derived from the organizational objectives. Personnel function is a subsystem of organization. Various subsystems of the organization define its own plans and programmes. Thus, each subsystems plans and programmes are linked to organizational objectives. The following questions are important while deciding the personnel policies Are vacancies to be filled by promotion from within or by hiring from outside? What union constraints are encountered in manpower planning and what policies are needed to handle these constraints? How to enrich employees job? How to downsize the organization? How to ensure continuous availability of adaptive and flexible workforce?

SACET- RK

Personnel Management
Manpower planning process chart: Organizational Objectives & Plans Manpower Planning Forecasting manpower ManpowerRequirements Preparing

Inventory

Identification of Manpower gap

Surplus

Shortage

Action plan for bridging the gap

Forecasting manpower requirements: Demand forecasting is the process of estimating the future quality and quantity of people required. The forecasting must be based on annual budge and long term corporate plan, translated into activity levels for each function and department. Forecasting of human resources requirement serves the following purposes Quantity of jobs required to produce a given number of goods. To determine what staff-mix is desirable in the future. To assess appropriate staffing levels in different posts of the organization so as to avoid unnecessary cost. To prevent shortages of people where and when they are needed most. To monitor compliance with legal requirements with regard to reservation of jobs. Preparing manpower inventory: After estimating the demand for HR requirement, the next step is to determine whether it will be able to procure the required number of personnel and the sources for such procurement.

SACET- RK

Personnel Management

Supply forecasting measures the number of people likely to available from within and outside of an organization, after making allowance for absenteeism, internal movements and promotions etc The supply analysis include Existing human resources Internal sources of supply External sources of supply Existing Resources: - Analysis of present employees is greatly facilitated by HR audit. HR audit summarizes each employees skills and abilities. The audit of non managery called skill inventory and those of the management are management inventory. Internal supply: - Based on skills and management inventories, planners can proceed with the analysis of internal supply. The following are the techniques to identify internal supply Inflow and outflow methods Turnover rate Conditions of work and absenteeism Productivity level Movement among jobs

External supply: - In addition to internal supply, the organization needs to lookout for prospective employees from external sources. External sources vary from company to company and industry to industry. Identification of manpower gap: - It is difference between the demand and supply of manpower. This gap may be of two types viz., surplus of manpower and shortage of manpower. Action plans: - Based on the analysis of this gap action plans must be developed to overcome this gap. Surplus will be separated by various ways like VRS, layoffs, reduced work hours etc shortage will be adjusted with promotions, recruitments, increased working hours etc

SACET- RK

Personnel Management
JOB ANALYSIS

Concept: -

An organization needs personnel of different types so that different jobs are performed effectively. HRP is related to match the personnel demand with personnel supply. For achieving this matching, detailed knowledge of the nature and the requirements of different jobs is essential. Job analysis provides this knowledge. Definition: Job analysis is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job description and job specifications Job analysis involves the process of identifying the nature of a job and the qualities of the likely job holder. Job analysis is the process of collecting job related data. The data, thus collected, will be useful for preparing job descriptions and job specifications. Job description lists job title, duties, machine and equipment involved, working conditions, etc job specification list the qualities and qualifications necessary to do a job. Process of job analysis: Job analysis is a process involving different steps to be undertaken in a sequential manner. In includes the following stages. 1. 2. 3. 4. 5. strategic choices (defining uses of job analysis) gather information information processing job description job specification

Strategic choices: It is the first step in total bon analysis process. An organization is required to make at least four choices.

The level of employee involvement in job analysis The level of details of the analysis Timing and frequency of analysis Past oriented vs. future oriented job analysis

The first choice is related to decide what extent an employee to be involved in job analysis. Job analysis means collection of information relating to job not incumbent, employees has familiarity with jobs. To what extent employee need to be involved is a debatable concept. Too much involvement may result in bias in favor of jobs. On the other hand, if they are not involved may lead to inaccurate and incomplete information. It depends upon the needs of organization and employees.

SACET- RK

Personnel Management

Second choice related to level of details to be collected about the job. Generally it is based on the duties performed by the selected job. In other words the nature of job being analysed determines the level of details in job analysis. Ex: crane operator ---------- personnel manager The level of details required in job analysis also depends on the purpose for which job-related details are being collected. Ex. Mass training ----------- to add a clarification Another strategic choice relates to the timing and frequency of conducting job analysis. It is conducted generally An organization is newly established and the job analysis initiated for the first time. A new job is created in a established company. A job is changed due to environment, technology, taste, process etc The organization is contemplating a new remuneration plan. Managers feel that there exist certain inequalities between job demands and remuneration it carries.

Finally, if an organization is changing rapidly due to fast growth or technological change, a more future oriented approach to job analysis may desire. It enables the organization to hire and train the future job prior to actual change. Information Gathering: This step involves decision on three issues. What type data is to be collected What methods are to be employed for data collection Who should collect the data

The type of data to be collected is concerned with what type of details about jobs, need to be gathered. It depends upon the end use of information, as also on the time and budget constraints. Ex: work activities, tools, machinery etc For second question there are different methods are available. Some methods are as follows -- Observation Interview Questionnaire Checklists Diary method Technical conference. The selection of a particular method of collecting job analysis information and the persons to be involved depend upon two factors: What is the purpose of job analysis What is the status of current job analysis programme?

SACET- RK

Personnel Management
For third question, we may use three different types of individuals. They are -- Supervisors Employees / Job incumbents Trained analyst Information processing: Once the job information has been collected, it needs to be processed. So that it would be useful in various personnel functions specifically, job related issues of job description and job specification. Job Description: It is an important document, which is basically descriptive in nature and contains a statement of job analysis. It provides both functional information and organizational information. Job description includes job title, job summary, job duties and responsibilities, relation with other jobs, the no. of persons to be supervised, machine, tools to be used and working conditions. Job Specifications: Job specifications translate the job description into terms of the human qualifications which are required for a successful programme of a job. They are intended to serve as a guide in hiring and job evaluation. It includes physical characteristics, psychological characteristics, traits of temperament, responsibilities and other features +++++++ X +++++++

PERFORMANCE APPRAISAL

SACET- RK

Personnel Management

INTRODUCTION: Performance appraisal means the assessment of an individuals performance in a systematic way, the performance being measured against such factors such as job knowledge, quality and quantity of output , initiative , leadership abilities, dependability, supervision, go-operation, versatility, judgment, health and the like. Definition: Performance appraisal is a formal, structured system of measuring and evaluating an employees job, related behaviour5s and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization and society all benefit Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and his potential for development -Beach Objectives: 1. To effect promotions based on competence and performance 2. To confirm the services of probationary employees 3. To assess training and development needs of the employees 4. To decide upon a pry raise when regular pay scales have not been fixed. 5. To let the employees know where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improve communication between rater and ratee. 7. Finally, Performance appraisal can be used to determine whether human resource programmes such as selection, training & development, and transfers have been effective or not. Process of performance appraisal: Objectives of Appraisal: - Objectives of appraisal, includes effective promotions, transfers, assessing training needs, awarding pay increases etc In other words, it is a process of deciding for what purpose the programme is initiated. Establish Job Expectations: - It includes informing the employee what is expected of him on the job. Normally a discussion is held with his superior to review the major duties contained in the job description. Individuals should not be expected to begin the job until they understand, what is expected of them.

SACET- RK

Personnel Management

Objectives of Performance Appraisal

Establish Job Expectations

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use appraisal data

Design an appraisal programme:- It is the major and very important step in total performance appraisal process. It poses several questions which need answers-- Formal Vs Informal appraisal? Whose performance to be assessed? Who are the raters? What problems are encountered? How to solve the problem? What should be evaluated? When to evaluate? What methods of appraisal are to be used?

10

SACET- RK

Personnel Management

SELECTION Selection may be defined as , choosing the fit candidates, or rejecting the unfit candidates or a combination of both. Selection involves both, because it picks up fit and rejects unfit A selection process involves a no. of steps. The basic idea is to solicit maximum information about the candidates to ascertain their suitability for employment. Since the type of information vary from position to position, it is possible that selection process may have different steps for various positions. The selection procedures must take in to consideration the public policy and operate within the frame work of the provision of the state or central statutory controls. Public policy may prohibit any kind of discrimination against any person on grounds such as age, color, race , sex , creed or caste. Within the framework of public policy and company policy, proper selection standards must be prescribed with a view to placing the right person on the right job. Selection procedure includes the following steps.

Receipt of Applications Scrutiny of applications Preliminary Interview Reference letters Group Discussions Selection Test Employment Interview Placement and Orientation R E J E C T I O N

11

SACET- RK

Personnel Management

1. Receipt of applications: Application forms are widely used everywhere and constitute one of the fundamental media through information is gathered about the applicant and assists the interviewer in formulating the questions to obtain more information about the candidate. Most of the companies design different types of applications for different positions managers, supervisors, workers etc.. And while some application forms are simple, general and easily answerable, some other may require elaborate, complex and detailed information about the applicant. 2. Scrutiny of applications: All those who have applied for the job in an organization may not be suitable for it. So we should reject those applicants who do not possess the required qualifications and experience. While scrutinizing the applications one should take care about good, loyal and enduring applications. 3. Preliminary Interview: It provides first opportunity for the candidate to know about the company and the job and whether he is suitable or not, the personnel executive must create a good impression of the company about the candidate. It should be precise, courteous, kind and informal. Rudeness and discourtesy will make you to lose not only a potential employee, but a potential customer too. 4. Reference Letter: Generally the applicant will be asked for two or three references from former employees, friends or professors or famous persons those who may speak well of him 5. Group Discussion: The group discussion is a method where group of the job applicants are brought around a conference table and they are given either a case study or a subject for discussion. The group members are to be observed by a selection panel. Generally the following activities will be observed by the selection panel. Initiating the discussion Explaining the problem Providing information Clarifying issues Influencing others Summarizing Speaking effectively Mediating arguments among the participant. 6. Selection Test: Selection test helps to measure the abilities and skills of a candidate in terms of job specifications. Selection tests are broadly classified into proficiency tests and aptitude tests. Proficiency tests are conducted to measure skills and abilities of the candidate. Aptitude tests are conducted to measure the potential skills and abilities of a candidate. 7. Employment Interview: -

12

SACET- RK

Personnel Management
Interviewing is the most universally used tool in any selection procedure and interviews are designed to serve in the most important areas of employment, training, human relations and labour relations. In many companies interview may be the only tool used. Interview may be for a period of five minutes or for sixty minutes. They may be informal and oral or they may be highly planned and carefully conducted.

8. Medical Examination: -

Medical examination is given to the selected candidates to find their fitness for the job. Although medical examination is an essential criterion for final selection, it should not be used as a tool for rejecting the candidate.

9. Placement and Orientation: -

When the formalities are over, the candidate will be hired and posted in the position. Orientation involves making the new employee acquainted with the new organization. During the period of orientation, the employee is educated about the company and its products.

----------------0000-----------

13

SACET- RK

Personnel Management TRAINING AND DEVELOPMENT Training and development are essential for achieving organisational goals. Training and development always go hand in hand. Training leads to human development, that is, better skills, motivation, and personality development. Training is a short-term process of utilizing systematic and organized procedures by which the staff acquires specific technical knowledge and functional skills for a definite purpose. The focus of training is the job or task. The role of training in the organisation is governed by the overall purpose of the organisation. In a fast moving consumer goods company, training will be geared strongly to achieve larger sales than of competitors. In a high technology manufacturing company, training will be geared to product quality and innovation. In a hospital, training will be geared to provide a reliable standard of health care.

14

SACET- RK