Nature of Personnel Management

1. Personnel management includes the function of employment, development and compensation- These functions are performed
primarily by the personnel management in consultation with other departments.
2. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work
force to make their fullest contribution to the concern.
3. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a
staff department of an organization.
4. Personnel management lays emphasize on action rather than making lengthy schedules, plans, work methods. The problems and
grievances of people at work can be solved more effectively through rationale personnel policies.
5. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern.
6. It also motivates the employees through it’s effective incentive plans so that the employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as
well as blue- collar workers.

Role of Personnel Manager

Personnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can
be summarized as :

1. Personnel manager provides assistance to top management- The top management are the people who decide and frame the
primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the
personnel manager.
2. He advices the line manager as a staff specialist- Personnel manager acts like a staff advisor and assists the line managers in
dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries
to solve them in best of his capacity.
4. Personnel manager acts as a mediator- He is a linking pin between management and workers.
5. He acts as a spokesman- Since he is in direct contact with the employees, he is required to act as representative of organization
in committees appointed by government. He represents company in training programmes.

Functions of Personnel Management

Follwoing are the four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development
5. Functions of Personnel Managers

The functions of a personnel manager can be broadly classified into two

categories :-

1. Managerial functions
2. Operative functions

Managerial functions

The managerial functions of a personnel manager have an impact on the

operative functions as well. They are enumerated below :-

Planning – this involves formulating the future course of action. Planning

includes determining in advance the personnel programs and changes
required that would contribute to the achievement of organizational goals.

Organising – it involves establishing an intentional structure of roles for

people in an organization. Structural considerations such as the chain of
command, division of labour, and assignment of responsibility are party of
the organizing function. The organizing function establishes relationships
among employees so that they can contribute collectively towards the
attainment of an organisation's goals.

Staffing – This is the process of obtaining and maintaining capable and

competent personnel in various positions at all levels. It broadly
encompasses manpower planning, recruitment, placement, induction and
orientation, transfer, career progression, promotion and separation.

Directing – it involves directing all the available resources towards the

common organizational goals. Thus, direction is a vital management
function, which ensures maximum employee contribution and also helps in
establishing sound industrial and human relations. It also involves
coordination between different departments.

Controlling – it invoves the measurement of performance against goals and

plans, identifies deviations and by placing the process back on track, helps
in the accomplishment of plans.

Operative functions

These can be classified into four broad areas, employment, development,

compensation and employee relations.

Employment – it involves procuring and employing individuals with

suitable knowledge, skills, experience and aptitude necessary to perform
various jobs. It includes functions such as job analysis, human resource
planning, recruitment, selection, placement and induction.

1. Job analysis involves preparing job description, job specification, job

requirements and employee specification and providing the guides, plans
and basis for job design and redesign.
2. Human resource planning involves forecasting the human resource
requirements of an organization and the future supply of human resources.
It also involves assessing the possibility of developing the human
resources to match the requirements.
3. Recruitment is the process of seeking and attracting prospective
candidates against a vacancy in an organization.
4. Selection is the process of identifying and establishing the credentials of
a candidate for a job to ensure success.
5. Placement is decided based on the needs of the organization.
6. Introducing a new employee to the organization, its business, the
organization culture, its values and beliefs, practices and procedures is
termed as induction.

Training and development

This process aims to train and develop employees to improve and update
their knowledge and skills, so as to help them perform their jobs better.
The process also includes developing the attitudes, beliefs and values of
the employees to match the organizational needs. This comprises of
performance appraisal, training, management / executive development,
career planning and development.

1. Performance appraisal is the process of evaluating the performance of

an employee on the job and developing a plan for improvement.
2. Training is the systematic development of the knowledge, skills and
attitudes required to perform a job.
3. Development is the concept of developing the employees in an
organization to meet future changes and challenges.
4. Career planning and development refers to identifying one's career goals
and formulating plans of reaching them. It attempt to harmonize an
individuals career aspirations with organizational needs.

Compensation

It is governed by the principle of rewarding an employee extrinsically

during and after the course of his job for his contributions to the
organization adequately, equitably and in a fair manner. It encompasses
salaries, incentives, bonus and fringe benefits. This function comprises of
Job evaluation, wage and salary administration, incentives, bonus and
fringe benefits.

1. Job evaluation is the systematic determination of the value of each job in

relation to other jobs in the organization.
2. The process of formulating and operating a suitable wage and salary
program is known as wage and salary administration.
3. Incentives are the rewards an employee earns in addition to regular
salary based on his performance or of the collective performance.
4. Bonus is primarily a share in the surpluses and is often directly related
to the organization performance.
5. Fringe benefits are monetary and non-monetary benefits including
 disablement benefits, housing facilities, canteen facilities, conveyance
facilities, educational facilities, recreational facilities, medical and welfare
facilities, post retirement benefits, etc.

Employee relations & services

This function deals with employees as a social group that contributes to

the organization, it includes –

1. Maintaining employee records, analyzing them and developing

information needed for managerial decision making.
2. Increasing employee productivity
3. Keeping the employees satisfied and motivated
4. Maintainig a healthy and effective human organization.
5. Counselling services and developing employees into complete
individuals and responsible citizens.
6. Developing policies, rules, guidelines and procedures relating to
employee behaviour and ensuring their implementation and observance.
7. Developing team building, team management and leadership skills in
employees.
8. Developing a fast and suitable grievance management system to redress
grievances.
9. Compliance with labour laws.
10. Personnel research.
11. Enhancing the quality of worklife and personal life of the employees.
6. Reply
7.

8. kushagrakul - Member Since: Dec 2009

9. India Dehra Dun
10.
Subject - Re: Functions of Personnel Managers
11. Fair content.Really helpful.

Regards

Kushagra

Functions of Personnel Managers

The functions of a personnel manager can be broadly classified into two

categories :-
1. Managerial functions
2. Operative functions

Managerial functions

The managerial functions of a personnel manager have an impact on the operative

functions as well. They are enumerated below :-

Planning – this involves formulating the future course of action. Planning includes
determining in advance the personnel programs and changes required that would
contribute to the achievement of organizational goals.

Organising – it involves establishing an intentional structure of roles for people in

an organization. Structural considerations such as the chain of command,
division of labour, and assignment of responsibility are party of the organizing
function. The organizing function establishes relationships among employees so
that they can contribute collectively towards the attainment of an organisation's
goals.

Staffing – This is the process of obtaining and maintaining capable and competent
personnel in various positions at all levels. It broadly encompasses manpower
planning, recruitment, placement, induction and orientation, transfer, career
progression, promotion and separation.

Directing – it involves directing all the available resources towards the common
organizational goals. Thus, direction is a vital management function, which
ensures maximum employee contribution and also helps in establishing sound
industrial and human relations. It also involves coordination between different
departments.

Controlling – it invoves the measurement of performance against goals and plans,

identifies deviations and by placing the process back on track, helps in the
accomplishment of plans.

Operative functions

These can be classified into four broad areas, employment, development,

compensation and employee relations.

Employment – it involves procuring and employing individuals with suitable

knowledge, skills, experience and aptitude necessary to perform various jobs. It
includes functions such as job analysis, human resource planning, recruitment,
selection, placement and induction.
1. Job analysis involves preparing job description, job specification, job
requirements and employee specification and providing the guides, plans and
basis for job design and redesign.
2. Human resource planning involves forecasting the human resource
requirements of an organization and the future supply of human resources. It also
involves assessing the possibility of developing the human resources to match
the requirements.
3. Recruitment is the process of seeking and attracting prospective candidates
against a vacancy in an organization.
4. Selection is the process of identifying and establishing the credentials of a
candidate for a job to ensure success.
5. Placement is decided based on the needs of the organization.
6. Introducing a new employee to the organization, its business, the organization
culture, its values and beliefs, practices and procedures is termed as induction.

Training and development

This process aims to train and develop employees to improve and update their
knowledge and skills, so as to help them perform their jobs better. The process
also includes developing the attitudes, beliefs and values of the employees to
match the organizational needs. This comprises of performance appraisal,
training, management / executive development, career planning and development.

1. Performance appraisal is the process of evaluating the performance of an

employee on the job and developing a plan for improvement.
2. Training is the systematic development of the knowledge, skills and attitudes
required to perform a job.
3. Development is the concept of developing the employees in an organization to
meet future changes and challenges.
4. Career planning and development refers to identifying one's career goals and
formulating plans of reaching them. It attempt to harmonize an individuals career
aspirations with organizational needs.

Compensation

It is governed by the principle of rewarding an employee extrinsically during and

after the course of his job for his contributions to the organization adequately,
equitably and in a fair manner. It encompasses salaries, incentives, bonus and
fringe benefits. This function comprises of Job evaluation, wage and salary
administration, incentives, bonus and fringe benefits.

1. Job evaluation is the systematic determination of the value of each job in

relation to other jobs in the organization.
 2. The process of formulating and operating a suitable wage and salary program is
known as wage and salary administration.
3. Incentives are the rewards an employee earns in addition to regular salary
based on his performance or of the collective performance.
4. Bonus is primarily a share in the surpluses and is often directly related to the
organization performance.
5. Fringe benefits are monetary and non-monetary benefits including disablement
benefits, housing facilities, canteen facilities, conveyance facilities, educational
facilities, recreational facilities, medical and welfare facilities, post retirement
benefits, etc.

Employee relations & services

This function deals with employees as a social group that contributes to the
organization, it includes –

1. Maintaining employee records, analyzing them and developing information

needed for managerial decision making.
2. Increasing employee productivity
3. Keeping the employees satisfied and motivated
4. Maintainig a healthy and effective human organization.
5. Counselling services and developing employees into complete individuals and
responsible citizens.
6. Developing policies, rules, guidelines and procedures relating to employee
behaviour and ensuring their implementation and observance.
7. Developing team building, team management and leadership skills in
employees.
8. Developing a fast and suitable grievance management system to redress
grievances.
9. Compliance with labour laws.
10. Personnel research.
11. Enhancing the quality of worklife and personal life of the employees.
[/QUOTE]
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