Personnel management – Aims & Objectives

Personnel management is based on careful handling of relationships among individuals at work

and is the art of acquiring, developing and maintaining competent workforce so that the
organization derives maximum benefit in terms of performance and efficiency.

An ideal relationship between the working groups, between the employer and employee, is
an indispensable part of the personnel management. This branch of management touches all types of
management and is one of the major constituent key in managerial action and success. Thus,
Personnel management is the nut and bolt of every organization.

Today personnel management is attaining more and more importance not only because of
the special nature of the human factor of production but also due to the rapid change in the
management process and other technological advancements. It plays a very vital role in building a
sound structure of any organization.

To sum up basically Personnel management has certain objectives and aim to fulfill:

1. Creating a congenial and healthy environment for employees or workers to function

effectively.

2. To bring about organizational and human resource development through training,

development program or even managerial succession planning.

3. Selection and placement of right number of people and ensuring proper allocation of
duties and responsibilities upon them (Manpower planning)

4. Creating better inter-personal relations, developing a sense of responsibility and

responsiveness amongst workers and employees (Liasoning).

5. Boosting the morale and sense of initiative amongst employees (Motivation).

6. Adopting best techniques or conceivable methods to bring best possible development of

workers on work.

To sum up Personnel management aims at achieving these major steps:

• Analyzing the plan for future action and expansion (Job Analysis).
• Estimating the quantitative and qualititative aspects of labour (Forecasting).
• Assessing the requirement of existing manpower or human resource (Inventory).
• Formulating the plan for effective utilization of manpower, reducing under utilization or mis-
utilization of manpower which is one of the most important resource (Resource
Optimization).
• Finalizes the planning for recruitment, selection, promotion, transfer, training and
development (Allocation).
• Organizational effectiveness and growth (Performance Monitoring & Appraisal).
Role/Function of Personnel/HR Manager

The role of the HR manager must parallel the needs of his or her changing organization.
Successful organizations are becoming more adaptable, resilient, quick to change direction,
and customer-centered.

Within this environment, the HR professional, who is considered necessary by line

managers, is a strategic partner, an employee sponsor or advocate and a change
mentor.

Depending on the size of the organization, the HR manager has responsibility for all of the
functions that deal with the needs and activities of the organization's people including these
areas of responsibility.

• Recruiting.
• Hiring.
• Training
Development and maintenance of training programs and employee
development which are designed to provide facilities for each individual to
achieve the maximum level of self development.
• Organization Development.
• Communication
The development of communication technique that will assure the effective
flow of information between management and the work force are within the
management.
• Performance Management
The constant evaluation and follow up of personnel policies and practices to
assure that such practices conform to the basic intent of the policy.
• Coaching.
• Policy Recommendation
The preparation and recommendation of written policies relating man-power
management which embodies sound principles of employee relations designed
to achieve the overall objectives of the organization.
• Salary and Benefits.
• Team Building.
• Employee Relations
The provision of counsel to management which will further establish and
maintain sound relationship within the organization as well as public and
other groups whose activities effect the organization.
• Leadership.
Concept of Management

Management is an activity process composed of some basic functions, for getting the
objective of any enterprise accomplished through the efforts of its personnel.

Wherever and whenever objectives are to be achieved through organized and co-operative
endeavour, management becomes essential for directing and unifying the group efforts
towards a common purpose.

As human aims and beliefs are mostly realized through the establishment of diverse
associations in our society, management is universally needed for operating all such
organisation. Management, viewed as a functional concept, is of equal necessity to the
educational, religious, charitable and other non-business institutions as it is required for
business Organizations. Furthermore, the greatest and the most comprehensive of our
social organizations, viz., the Government needs all types of management as others require,
perhaps more than all other social organizations. A Government without good
management is a house built on sand. Put in short, management is an essential
accompaniment of all social organizations, and it is to be found everywhere as a distinct,
separate and dominate activity. The nature and significance of the activity do not change
even if it is called administration in some social in situations and management in others.

Principles of Personnel Management

Principles are fundamental rules which guide the executive.

So principles of personnel management are the guiding rules for the personnel
executives in administering and directing the personnel policies on rational basis.

As stated earlier, the personnel management is the branch of general management;

therefore principles of general management more or less reflect the principles of personnel
management.

Principles of personnel management have been developed on the basis of years of

experience which guide the conduct of the personnel administrators. Different authorities on
management have presented the principles or personnel management in different forms.

Meaning & Scope of Personnel Management

In the words of Thomas G. Spates “Personnel administration is a code of the ways of

organizing and treating individuals at work so that they will each get the greatest
possible realization of their intrinsic abilities thus attaining maximum efficiency for
themselves and their group, and thereby giving to the enterprise of which they are a part its
determining competitive advantage and its optimum results”.

An analysis of this definition gives us the following salient features of Personnel

Management -

1. There are certain specific and guiding principles of personnel administration which
gives us a set of techniques of handling men at work and also a point of view.

2. Good personnel administration helps individuals to utilize their capacities to the full
and to attain not only maximum individual satisfaction from their work but also satisfactions
as part of a work group. In other words, personnel development is the aim.

3. If people are skillfully handled both as individuals and as group members, they will
respond by giving their best work to the organization of which they are a part. This means
that democracy is stronger and more effective than authoritarianism and that, where men
and women are free they will be happier and work more effectively than if they are
regimented. One of the greatest rewards of personnel management is in the realization and
demonstration of this.

If follows that personnel management is basic function of management which

means getting effective results with people.

It permeates all levels of management, since each executive must depend upon his
subordinates for good results, and the foremen or first-line supervisors must build an
defective work team of people whose performance will meet or exceed expected standards
personnel Management touches all types of management. Unless these ha to secure
the co-operation of other people whom they have employed to assist them. In short, every
member of the management group, from the top to down, is a “personnel manager”, so to
speak, in the vital sense, as the seeks to get effective long-run results through the efforts of
the people who look to him for direction and leadership. This does not, however, mean that
an organization can dispense with an officially designated personnel manager. In every
organization there should be someone who is primarily concerned with helping to develop in
operating officials the point of view and skill of personnel administration.

Personnel management is not restricted to factories and wage earners. It is equally

important in offices, sales departments, laboratories, and in the ranks of management itself.

Personnel administration is a method of developing the potentialities of employees

so that they will get maximum satisfaction out of their work and give their best efforts to
the organisation.

The functions of the personnel manger are very important. If a personnel manage is to help
solve personnel problems, his position in the organization must be properly determined. It
should also be remembered that the personnel manager cannot by himself, solve
personnel problems; he can help operating on line manager to do so. He is a staff
officer whose function is to provide specialized services to the line officers and
advice and counsel them on personnel problems. He cannot establish policies and
make divisions himself, he has to advise the line manger, the final decision resting
with the later.

This shows the personnel manager in a sound company organization is clearly a staff
official. He should, as already indicated, report directly to the chief executive of the
organization. He has no right to issue orders to members of line organization or to
employees except within his own, i.e., (personnel department), even when personnel
matters are involved. He should just advise the chief and other executives on good
personnel policies on their consistent, uniform application throughout the
organization. He may, of course, initiate the there is a difference of opinion about
personnel matters between him and the line officers an supervisory, he should report the
disagreements to the chief executive. In this way, he will be performing a control or
inspection function for the chief executive, who is obviously concerned with the consistent
observance of company policies and good personnel practices. But, if he is to win the
confidence and co-operation of lower line manger, he must exercise this control function
sparingly. Persuasion is his tool, an his personality should prompt other officials to work
with instead of against him. He should be a source of help and not of threat. His task is t
educate the lower line officials to develop the skills to handle future personnel problems,
and so develop the full responsibility for personnel administration in the line organisation.

The relationship between the personnel department and line organization may be
summarized as follows: the activities of personnel department are directed towards making
line control of the human element stronger and more effective-not towards usurping that
control....IN short, the personnel staff recommends, co-operates and counsels, while line
management actually adopts and applies the policies, techniques ans procedures in its
Operations......No matter how excellent the plan on which the activities of he personnel
staff are based, no matter how capable they are, the personnel programme cannot be
successful unless the line organisation is doing a good personnel job at workbench. Therein
lies the major clue to the proper relationship between the line and staff orgnaisation in the
matter of personnel policy and practice”.

Functions of Personnel Manager

There are other activities which are at time placed in the personnel department. The
activities and functions tabulated below are frequently under the supervision of the
personnel departments

• Selection-selection of the right man for the right job.

• Guidance and Placement-proper guidance of worker and his placement.
• Induction & Training - Trading and Employee Induction-an adequate
training of the worker, and induction as a part of training.
• Work Environment - Provision and maintenance of proper working
conditions
• (v) Labour Welafere - Protection of workers from disease and
accidents.
(vi) Employee Rating and Promotion, transfer, demotion, discharge an
separation.
(vii) Job Analysis and Evaluation.
(viii) Wage & Salary administration
• Performance appraisal
• Incentive & reward
• (x) Better Industrial relations-provisions of means by which workers'
desires may be given consideration.
(xi) Employee Participation in management to ensure employee-employer
co-operation.
(xii) Labour Union Contracts and Co-operation-negotiation of contracts,
settling grievances, union-management collad in establishing standards,
reducing waste, improving the cases increasing productions.
Qualities of Personnel Executives

It is therefore very difficult to stat the qualities of a successful manager. Some of the
important qualities required in any personnel manger may be summarized below

(i) Sense of Vocation: The responsibilities o the job of personnel manger are so heavy
that they cannot be cared out without some sens of inner urge that is why the possibilities
of disappointment and discouragement are grate in a personnel job. The only safeguard
against discouragement and disappointment is the ability to draw upon the springs of an
unfailing idealism. The personnel manger must have faith in humanity an also in the
possibility in creating a finer social and industrial order.

(ii) Sense of Social responsibility: Industry is a part of society and it is to fulfill needs of
the society from time to time. The success of the industry much depends upon the effective
co-operation of the people working in the industry. It is the duty of the personnel manager
to create facilities for getting better co-operation of the personnel at work. He must
appreciate the working people as social units and social groups and deal with them in social
background.

(iii) Capacity for Leadership: Personnel Manager must have a sense of leadership in
matters affecting the people. He, thus has dual role. Firstly, to advise the top management
on human problems while deciding the policies relating to workers and secondly to exercise
leadership in matters affecting the efficiency of workers in the interest of the plant. He
should be ready to face opposition and to speak fearlessly he should also be in position to
convince others from his point of view.

(iv) Personnel Integrity: Personnel manger must be a man who can trusted by all in the
organisation so that people in the organisation may come to him and put all their
difficulties, worries, anxieties and problems before him. He must be personality who is
trusted not only by his subordinates but also by his fellow mangers and directors.

(v) Capacity for Persuation: This is the intellectual side of leadership. The personnel
manger has to persuade his fellow mangers and top management of the wisdom of the
proposals he makes. Similarly he has to persuade the people in the industry to reconcile
with the objectives of the orgnaisation.

(vi) Personality: A few points of personality may be added to the above mentioned
qualities of character:-

(a) Public Speech: Public speech is very often a necessity in the working life of a
personnel manager. To present his view-point before the management while deciding upon
the problems affecting personnels and to put the organization objectives before the workers
to make them understand the management point of view public, speech is a must.

(b) Facial Expression: Mobility of facial expression is also important for the personnel
manger because it will help him in dealing with the personnel more efficiently.

(c) Spontaneity of Speech: Ability to express oneself in accurate terms avoids

misunderstanding. People are more at ease before one who quickly says the word of
welcome or introduction. Readiness and fluency combined with t good knowledge or words
and their meanings are essential for a personnel manger.

(d)Personal dignity: Personnel manger should maintain his dignity. He should be able to
mix himself with the people and yet not to be of them.

(e) Courtesy and social awareness: Actually, the personnel manger is the human
relation manger. He has to speak to people of all grenades and ranks-leaders of trade
unions, workers representatives in committees an members of t Board of Directors. For all
these occasions he is better equipped if he has a sense of courtesy and social awareness.

(f) Foresightedness: Being a human relation manger, he must guess the pros and cons of
the action of management and any complexity which may arise out of the decision. He
should strongly and advisably defend his view point in the meetings o the committee or
board of directors.

Qualities of Personnel Executives

Personnel Executive, Personal Manager or Personnel or Personnel director is the top

executive in the department of personnel management. The main function of such
executive is to direct man at work and to get the work done through them to meet
the general objective of the organisation. It is therefore a very important function of
top executive to appoint such a person to such important office who may motivate the
workers to work.

He should possess apart from his professional qualifications, the human element and
exemplary character or in other words he should possess all qualities of leadership so that
he may lead the team of workers. Generally the possession of qualities of character and
personality is more important than knowledge. A manager deficient in the necessary
qualities shall waste his time in undergoing training.

Importance of Personnel Officer

Managers create authorities, make decisions and establish patterns for delegation,
identifying superiors and subordinated. They mould personnel careers and facilitate or
handicap the attainment of personnel goals.

Edward Cross as provided an excellent view of manger at that “the leader defines and
clarifies both established goals and also the means by which goals are to be
achieved. He holds major responsibility for task assignment and co-ordination. He finds
ways to link personnel and organizational goals and integrate personal support for the total
mission. Finally, he has a spark function, in getting action at the correct time and place.
These dimensions of leadership are exemplified in operational management or
administration in the working organisation”.

The every day job of the Personnel Manager is administration of getting things done,
holding the organisation together, keeping the firm or agency on course of making progress
towards objectives or goals. Managers are planners and organisers, they are also
administrators who seek to carry out plans to operate within the frame work of rules,
policies and procedures establish for the going organisation.

The managers are both organisers and administrators. These dual roles are closely
associated with them.

The manger develops or copies management styles and techniques to implement his
management theories. As a practitioner, he needs to know about and understand changing
theory so he can evaluate and improve existing programmes, practices and tactics. The
manager can tailor his approach to manage values. He can carefully and critically appraise
the image he has created an take steps to create an improved image.

Decision making the mangers major functions activity. The manager make decisions and
see that decisions are made. Decision making is recognized as a central element in
administration. So also is the process in which the manager delegates authority to make
decisions an assigns related responsibilities. These twin techniques of decision making and
delegation are apparent influential in all the tactics of administration.

Delegation is the process in which a superior allocates a portion of his authority to his
subordinates, entrusting them with the assignment.

There are potential hazards in the delegation process. For example K-line and Martin note
that the smile delegation of authority creates a relationship in which subordinates must
maintain the favour and support of bosses and are likely to do so by initiating their bosses.

Managers operating within the constraints of organisational and public policy, make their
choices among various style of administration. Some opt for authoritarian, cold,
manipulative high-pressure strategies. Others favour a permissive, friendly, helpful,
supportive, causal style. Most person select “mixed positions at various points along the
ranges outlined in reference to authority, goals, manipulation, social relations, pressure,
focus of concern and flexibility.
Objectives of Personnel Policy

Written polices maybe given a wide circulation among the workers to that they may know
the organizational objectives and may help the management in achieving them.

The major objectives of Personnel Policy are:

(i) To Achieve the objectives of the organization: Polices are guide to action towards
the objectives of the organization so they must be known to ever concerned person in order
to concentrate their efforts towards the objectives.

(ii) Uniformity in decisions: Personnel polices furnish the general standard or basis on
which decisions are reached. Decisions in one organization are taken by the various line
authorities keeping in view the personnel policies and thus uniformity of action is
maintained similar cases. There is the least possibility of workers' exploitation through base
decisions.

(iii) Delegation of authority possible: Delegation of authority means assigning work to

others and give them authority to do it. Personnel policies help the executives at various
levels of decision centers to act with confidence without consulting the superiors every time.
They give a manger liberty to choose the alternatives provided and to decide upon the
action.

(iv) Better control: As personnel policies specify relationship among organization,

management and workers, so each group works for the achievement of the large objectives
of the organization without any policy conflicts. Thus it provides better control.

(v) Evaluating Efficiency: Policy provides standards the execution of work. Efficiency of
each group may be evaluated by performance in the light of the policy. It may be assessed
whether organisation has achieved the desired results set in the policy. Policy maybe
amended or a new policy may be formulated in the light of the actual performance.

(vi) Confidence: Policy provides the workers a security against exploitation. It creates
confidence in the in the employees. They may know where they stand in relation to the
organisation.

(vii) Motivation of workers: Policy makes the employee aware of the objectives of the
organisation and guides the workers in achieving them. So they work enthusiastically and
with loyalty to gt those objectives.

(viii) Guide to management: Policy provides guidance to management in relation to the

personnel problems they resolve how to get work done by the people at work or how to
behave them.
Job Description and Job Specification Distinguished

Job Specification Job Description

Product of job analysis Product of job analysis

Job specification is a statement of equalities Job description is the summary of the duties,
of the person who handles the job. It is a responsibilities and other characteristics of
statement of acceptable human the job.
qualities necessary to perform the job.

to measure the job to measure the person handling the job

Job specification assists the management in
selecting a match for the job.
The applicant are assessed on the basis of
qualities mentioned in the job specification
statement.
The job description assists the candidate to
understand the requirements of the job
which are to be fulfilled by him.
It also helps the management in appraising
the performance of the employee and in
making self appraisal by comparing the job
description with the actual performance.

Recruitment

The success of an organization largely depends upon the team of workers put to work in an
industry and therefore skilled and qualified workers should be recruited.

Recruitment is -

• the first in the employment process with aims at developing and maintaining the
adequate man power resources upon whom the Organization can depend when it
needs additional employees.

• a process of searching for the prospective employees and stimulating them to apply
for jobs in organization.

• the development & maintenance of adequate manpower resources. It involves the

creation of a pool of available labour upon whom the organization can depend when
it needs additional employees.
Principles of Preparing Job Description

It should be kept up to date i.e., necessary amendments and adjustments should be made
from time to time.

1. Job title should be short, definite and suggestive as to indicate the nature of the
work.
2. Primary, secondary and other duties should clearly be defined.
3. Job specifications should clearly be mentioned.
4. It should be descriptive but short.

Include option of Job specification

1. Physical characteristics as height, weight, sight, physical structure, health, etc.

2. Psychological characteristics as decision-making ability, analytical view, mental
ability etc.
3. Personnel characteristics as behaviour, mental stability, enthusiasm, leadership
qualities etc.
4. Responsibility, i.e., the sense of responsibility in a person to be appointed on the
job.
5. Qualification, i.e., academic qualification, experience, training etc.

Promotion

Advancement within an organization is ordinarily labeled as 'Promotion'. Promotion involves

movement of a person to a position carrying higher status, more pay, increased
benefits and privileges in the same organization.

All the three elements must be present in promotion i.e., promotion places employee in a
position which carries greater prestige and status, increased responsibilities as well as
higher earnings.

When the salary of an employee is increased without corresponding change in job grade, it
is upgrading and not promotion. Ordinarily the change to higher job is accompanied
by increased pay and privileges, but not always.

If there is increase in responsibility without an increase in pay may be called 'Dry Portion'.

If an employee is placed to a job involving similar responsibilities, it is called transfer and

not promotion, no matter there is an increase in his earnings.

Demotion

Demotion is a particular type of transfer involving a cut in pay, status or

responsibilities. It is just opposite to promotion where the person is changed to a job
lower in status, grade and responsibilities.
Grievance

It is basically any disagreement between two parties. A grievance may be a dispute

between employer & employee. Difference of opinion is a common subject in such a
scenario.

Anybody working in an organization may, at some time, have problems or concerns about
their work, working conditions or relationships with colleagues that they wish to talk about
with management. They want the grievance to be addressed, and if possible, resolved. It is
also clearly in management's interests to resolve problems before they can develop into
major difficulties for all concerned.

“Grievance is any discontent or dissatisfaction, whether expressed or not, whether

valid or not, arising out of anything connected with the company which an employee thinks,
believes and even feels to be unfair, unjust or inequitable.”

Grievance definition – In employment law, a grievance is a formal, itemized complaint

to management that it has treated one or more employees unfairly or has violated the
contract or collective bargaining agreement.
Use of the grievance system is a protected activity. Restraint, interference, coercion,
discrimination, or reprisal against an employee or an employee's designated representative
because of the filing of a grievance is legally prohibited. Employees who provide information
concerning matters related to grievances are similarly protected.

Key points:

• Grievances are concerns, problems or complaints that employees raise with their
employers
• Where possible employees should aim to settle grievances informally with their line
manager
• Grievance procedures are used by employers to deal formally with employees'
grievances
• Grievance procedures allow employers to deal with grievances fairly, consistently and
speedily
• Employers must have procedures available to employees so that their grievances can
be properly considered
• The compensation given by employment tribunals can be adjusted by usually
between 10-50 per cent if the employer or employee fails to follow the statutory
grievance procedure

Issues that may cause grievances include:

• terms and conditions of employment

• health and safety
• work relations
• bullying and harassment
• new working practices
• working environment
• organizational change
• equal opportunities
 Grievances may occur at all levels, and the Code, and associated good practice, applies
equally to management and employees.

Employees should aim to settle most grievances informally with their line manager. This
has advantages for all workplaces, particularly where there might be a close personal
relationship between a manager and an employee. It also allows for problems to be
settled quickly.

In some cases it may be helpful to use a neutral mediator to help sort out a grievance
and maintain working relationships. Mediation is often most effective if used early on but
may not be suitable if you want to enforce a legal right or want someone to decide the
rights and wrongs of an issue for you.

If there is grievances applying to more than one person consider whether it should be
resolved with any recognized trade union(s).

Why have a procedure?

If a grievance cannot be settled informally or a formal approach is preferable, the employee

should raise it formally with management.

Employees must complete step 1 of the statutory procedure if they wish subsequently to
use the grievance as the basis of an application to an employment tribunal.

Step 1
The employee informs the employer of their grievance in writing.

Step 2
The employer invites the employee to a meeting to discuss the grievance where the right to
be accompanied will apply. The employer notifies the employee in writing of the decision
and notifies of the right to appeal.

Step 3
The employee informs the employer if they wish to appeal. The employer must invite them
to a meeting and following the meeting inform the employee of the final decision.
(Employees must take all reasonable steps to attend meetings.)

Employment tribunals may adjust any award of compensation by usually between 10 and 50
per cent for failure by either party to follow relevant steps of the statutory procedure where
it applies.

A written procedure can help clarify the process and help to ensure that employees are
given their rights such as to be accompanied at grievance meetings.

Employers should be aware that their employees might raise issues about matters not
entirely within the control of the organization, such as client or customer relationships or
equal opportunity issues (for instance where an employee is working on another employer's
site). These should be treated in the same way as within the organization, with the
employer/manager investigating as far as possible and taking action if required. The
organization should make it very clear to any third party that grievances are taken seriously
and action will be taken to protect their employees.
Model Grievance Procedure

Work with Grievance

U
N Written
S Referring
A Immediate Superior
T
I Time limit for
S answering 48 hrs
F
I Department Head Time limit for
E answering
D 3days

Grievance Committee Time limit for

answering 7
days

Higher Management for Revision

W
O
Union may ask
R
for voluntary
K
arbitration
E Voluntary Arbitration
R

Decision binding on both parties

Principles and procedure which constitute the grievance model:

• An aggravated employee shall just present his grievance in written to the officer
designated and the answer should be given within 48hrs.
• If the worker is not satisfied with the answer, he along with one department
representative will present the grievance to the departmental head. He will give his
judgment in 3 days or state the reason for delay.
• If he is not satisfied yet, then he may be requested to refer the case to the grievance
committee. The grievance committee will make recommendation within seven days.
Management has to implement it.
• If even then he remains unsatisfied, he can report to the higher tier of the
management for revision.
• If the worker is still not satisfied with the decision then the union may ask for
voluntary arbitration and the decision of which will be binding on both the parties.
Diagrammatic representation of model Grievance Procedure:

Voluntary Arbitration

Higher Management

Grievance Committee

Department Head

Officer Designated