CHAPTER 2

Personnel Policies

Role of Personnel Policies

There are numerous laws and regulations which regulate the nature of the relationship
between an employee (and volunteer, in the case of nonprofits) and his or her
organization. They are intended primarily to ensure that everyone is treated
fairly and equitably regardless of their race, creed, color or sexual orientation.
They are intended to ensure that the treatment of employees and volunteers is
based primarily on their job performance. Common types of activities guided
by the laws and regulations are, for example, hiring and firing, benefits and
compensation, affirmative action, rights of privacy, discrimination and harassment,
and wrongful termination.

One of the fastest growing types of lawsuits brought by employees against their
organizations is wrongful termination of employment. Other common types of lawsuits
are in regard to allegations of discrimination and harassment. It is far better
for organizations first to ensure that these types of improper types of behaviors
do not occur, than to have to defend themselves in courts of law. The best way
to ensure occurrence of proper behaviors is to enact comprehensive guidelines
regarding how employees and volunteers are treated in the workplace. These general
guidelines are called personnel policies. Specific sequences of activities resulting
from the guidelines are often called procedures.

Note the difference between operational policies and personnel policies. Operational
policies are to guide how employees conduct the activities of the organization,
ranging from how a client joins a program to making sure the coffee maker is
unplugged at the end of the day. Operational policies are not about the nature
of the relationship between the employee or volunteer and the organization.
Developing Personnel Policies
Each organization should carefully consider what policies it requires and how
they should be worded. When developing policies, always consult an expert who
is very knowledgeable about federal, state/provincial and local laws regarding
employment practices. For example, in the USA, consider the Civil Rights Act
of 1964, Americans with Disabilities Act of 1992, and Occupational Safety and
Health Acts. In Canada, some major employment laws are Employment Insurance
Act, Canada Pension Plan, Old Age Security Act, Canada Labour Code, etc. Personnel
policies might also be governed by union rules or other contractual agreements.

Many organizations develop their policies first by closely reviewing policies

of organizations with similar programs and services. While that practice is
a good start, you still should have an authority on employment practices review
your policies. Finally, in the case of corporations, the Board should formally
approve the policies and the approval should be documented in Board meeting
minutes.

Sample List of Personnel Policies

The following is a sample list of policies. Consider the following list to
get an impression of some of the major policies in an organization. This list
is by no means definitive for every organization. The policies developed by
an one organization depend on the nature and needs of the organization.

Work Schedule

Work day hours

Lunch periods
Holidays
Vacation
Sick Time
Personal Leave
Leave of Absence
Severe Weather
Jury Duty

Hiring Procedures

Americans With Disabilities Act

Interviewing job candidates
Checking references
Offering employment

New Employee and Internal Orientation

New employee orientation — general information

Agency-wide new employee orientation
Intern orientation
New employee and internal orientation checklist

Compensation
Paydays
Overtime and compensation time
Classifying employees as exempt or non-exempt
Salary ranges
Positioning pay within a salary range
Maintaining competitive salary information
Reclassifying positions
Salary review policy
Promotional increases
Withholding salary increase due to performance
Withholding salary increase due to leave of absence

Payroll Information & Timekeeping Procedures

Payroll information — General

Payroll information — Direct deposit procedures
Payroll information — Required and voluntary payroll deductions
Timekeeping — General discussion of non-exempt and exempt employee classifications

Supervisor’s signature

Benefits

Eligibility and general information

Types of available benefits
Medical insurance
Dental insurance
Disability insurance
Supervisory communication
Life insurance
Confidentiality note
Retirement plan
Social security
Employee advisory resource

Workers’ Compensation Information and Procedures

When there is an injury or accident on the job

What is covered under Workers’ Compensation
Type of injury covered by Worker’s Compensation Insurance
Medical expenses resulting from a work-related injury
Resources available

Performance Assessment Procedures

Performance assessment cycle

Performance assessment process
Dealing with performance issues
Discipline: when the positive approach does not work
Separation from employment checklist
Communications by the supervisor regarding personnel issues
COBRA (Consolidated Budget Reconciliation Act)
Leave-taking procedures

Financial Management

Budget management
Capital expenditures
Supervisor’s responsibilities in maintaining the budget
Operating management
Financial reporting

Supplementary Information

Discrimination or sexual harassment complaints

Complaints regarding programs or staff

Data Practices

Policy
Procedures
Definitions
Security of Records
External releases
Internal releases
Use of data
Legal procedures
Destruction of records
Staff access

Training on Policies
If employees’ or volunteers’ (in the case of nonprofits) behaviors
do not conform to the written personnel policies for your organization, and
if an employee or volunteer sues your organization, then courts will consider
your written policies to be superseded (or replaced) by your employees’
or volunteers’ actual behaviors that you appeared to be permitting to
occur.

For example, if policies specified that employees should not discriminate on

the basis of race, creed or color, yet there was a history of your employees
clearly discriminating against other employees on that basis, then courts will
conclude that your policies are to permit discrimination. Therefore, it is critical
that employees and volunteers have clear understanding of each personnel policy
and that their behaviors conform to those policies. The best way to accomplish
that understanding if for employees and volunteers to be trained on the policies
and for their supervisors to always be sure that policies are followed. Training
about policies can be carried out by ensuring that:

 All employees and volunteers receive an orientation that includes overview of the policies and procedures.
 All employees and volunteers sign a document that indicates that they have reviewed the policies and will act
in accordance with them.
 Supervisors regularly issue reminders to employees and volunteers about key policies.
 All supervisors themselves act in accordance with the policies.
 Any violation of terms of the policies is immediately addressed with reprimand or termination of the employee
or volunteer, depending on the nature of the violation.
CHAPTER 3

Corporate Culture
What Is Corporate Culture?
Corporate culture refers to the beliefs and behaviors that determine how a company's employees and management
interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and
develops organically over time from the cumulative traits of the people the company hires.

A company's culture will be reflected in its dress code, business hours, office setup,  employee benefits, turnover,
hiring decisions, treatment of clients, client satisfaction, and every other aspect of operations.

KEY TAKEAWAYS

 Corporate culture refers to the beliefs and behaviors that determine how a company's employees and
management interact.
 Corporate culture is also influenced by national cultures and traditions, economic trends, international trade,
company size, and products.
 Corporate cultures, whether shaped intentionally or grown organically, reach to the core of a company’s
ideology and practice, and affect every aspect of a business.
Understanding Corporate Culture
Alphabet (GOOGL), the parent of Google, is well known for its employee-friendly corporate culture. It explicitly
defines itself as unconventional and offers perks such as telecommuting, flextime, tuition reimbursement, free
employee lunches, and on-site doctors. At its corporate headquarters in Mountain View, Calif., the company offers
on-site services such as oil changes, car washes, massages, fitness classes, and a hairstylist. Its corporate culture
helped it to consistently earn a high ranking on Fortune magazine's list of "100 Best Companies to Work For."

History of Corporate Culture

Awareness of corporate or organizational culture in businesses and other organizations such as universities
emerged in the 1960s. The term corporate culture developed in the early 1980s and became widely known by the
1990s. Corporate culture was used during those periods by managers, sociologists, and other academics to
describe the character of a company.

This included generalized beliefs and behaviors, company-wide value systems, management strategies, employee
communication, and relations, work environment, and attitude. Corporate culture would go on to include company
origin myths via charismatic chief executive officers (CEOs), as well as visual symbols such as logos and
trademarks.

By 2015, corporate culture was not only created by the founders, management, and employees of a company, but
was also influenced by national cultures and traditions, economic trends, international trade, company size, and
products.

There are a variety of terms that relate to companies affected by multiple cultures, especially in the wake
of globalization and the increased international interaction of today's business environment. As such, the
term cross-culture refers to “the interaction of people from different backgrounds in the business world”; culture
shock refers to the confusion or anxiety people experience when conducting business in a society other than their
own; and reverse culture shock is often experienced by people who spend lengthy times abroad for business and
have difficulty readjusting upon their return.
To create positive cross-culture experiences and facilitate a more cohesive and productive corporate culture,
companies often devote in-depth resources, including specialized training, that improves cross-culture business
interactions.

Examples of Contemporary Corporate Cultures

Just as national cultures can influence and shape corporate culture, so can a company’s management strategy. In
top companies of the 21st century, such as Google, Apple Inc. (AAPL), and Netflix Inc. (NFLX), less traditional
management strategies such as fostering creativity, collective problem solving, and greater employee freedom have
been the norm and thought to contribute to their business success.

Progressive policies such as comprehensive employee benefits and alternatives to hierarchical leadership—even
doing away with closed offices and cubicles—are a trend that reflects a more tech-conscious, modern generation.
This trend marks a change from aggressive, individualistic, and high-risk corporate cultures such as that of former
energy company Enron.

High-profile examples of alternative management strategies that significantly affect corporate culture
include holacracy, which has been put to use at shoe company Zappos (AMZN), and agile management techniques
applied at music streaming company Spotify.

Holacracy is an open management philosophy that, among other traits, eliminates job titles and other such
traditional hierarchies. Employees have flexible roles and self-organization, and collaboration is highly valued.
Zappos instituted this new program in 2014 and has met the challenge of the transition with varying success and
criticism.

Similarly, Spotify, a music-streaming service, uses the principles of agile management as part of its unique
corporate culture. Agile management, in essence, focuses on deliverables with a flexible, trial-and-error strategy
that often groups employees in a start-up environment approach to creatively tackle the company’s issues at hand.

Characteristics of Successful Corporate Cultures

Corporate cultures, whether shaped intentionally or grown organically, reach the core of a company’s ideology and
practice, and affect every aspect of a business, from each employee to customer to public image. The current
awareness of corporate culture is more acute than ever.

The Harvard Business Review identified six important characteristics of successful corporate cultures in 2015. 1  First
and foremost is "vision": from a simple mission statement to a corporate manifesto, a company’s vision is a powerful
tool. For example, Google’s modern and infamous slogan: “Don’t Be Evil” is a compelling corporate vision.
Secondly, "values," while a broad concept, embody the mentalities and perspectives necessary to achieve a
company’s vision.

Similarly, "practices" are the tangible methods, guided by ethics, through which a company implements its values.
For example, Netflix emphasizes the importance of knowledge-based, high-achieving employees and, as such,
Netflix pays its employees at the top of their market salary range, rather than through an earn-your-way-to-the-top
philosophy. "People" come next, with companies employing and recruiting in a way that reflects and enhances their
overall culture.

Lastly, "narrative" and "place" are perhaps the most modern characteristics of corporate culture. Having a powerful
narrative or origin story, such as that of Steve Jobs and Apple, is important for growth and public image. The "place"
of business, such as the city of choice and also office design and architecture, is one of the most cutting-edge
advents in contemporary corporate culture.
What Is Corporate Culture?
The term “corporate culture” refers to the beliefs and practices associated with a particular corporation. For
instance, corporate culture might be reflected in the way a corporation hires and promotes employees, or in its
corporate mission statement. Some companies seek to associate themselves with a specific set of values, such as
by defining themselves as an “innovative” or “environmentally-conscious” organization.

What Are Some Examples of Corporate Culture?

There are many examples of companies with well-defined corporate cultures. Alphabet Inc. (GOOGL), for example,
is known for its employee-centric culture and its emphasis on working in a creative and flexible environment,
whereas Amazon (AMZN) is known for its relentless pursuit of customer service and operational efficiencies. Often,
national cultures will play a role in determining the kind of corporate culture that is prevalent in society. For example,
Japanese corporations are known for having markedly different corporate cultures as compared to those of
American or European companies.

Why Is Corporate Culture Important?

Corporate culture is important because it can support important business objectives. Employees, for example, might
be attracted to companies whose cultures they identify with, which in turn can drive employee retention and new
talent acquisition. For companies focused on innovation, fostering a culture of innovation can be critical to
maintaining a competitive edge with respect to patents or other forms of intellectual property. Similarly, corporate
culture can also play a role in marketing the company to customers and to society at large, thereby doubling as a
form of public relations.
CHAPTER 4

Personnel Management

can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management
concerned with employees at work and with their relationship within the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration and
maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human resource of
organization.”

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 its 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
programs.

Functions of Personnel Management

Following are the four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development

Elements of Personnel Management

Following are the elements of Personnel Management:

1. Organization- Organization is said to be the framework of many activities taking place in view of goals
available in a concern. An organization can be called as a physical framework of various interrelated
activities. Right from manpower planning to employees’ maintainance, all activities take place within this
framework. The nature of the organization is dependent upon it’s goal. The business concern goal being
profit- making. Clubs, hospitals, schools, etc. their goal being service. The objective of consultancy being
providing sound advice. Therefore, it is organizational structure on which the achievement of goals of an
enterprise depends upon. In personnel management, a manager has therefore to understand the importance
of organizational structure.
2. Job- The second element, i.e., jobs tell us the activities to be performed in the organization. It is said that the
goals of an enterprise can be achieved only through the functional department in it. Therefore, seeing the size
of organization today, the nature of activities is changing. In addition to the three primary departments,
personnel and research department are new additions. Various types of jobs available are:
a. Physical jobs
b. Creative jobs
c. Proficiency jobs
d. Intellectual jobs
e. Consultancy jobs
 f. Technical jobs
3. People- The last and foremost element in personnel management is people. In an organizational structure,
where the main aim is to achieve the goals, the presence of manpower becomes vital. Therefore, in order to
achieve departmental goals, different kinds of people with different skills are appointed. People form the most
important element because:
a. The organizational structure is meaningless without it.
b. It helps to achieve the goals of the enterprise.
c. It helps in manning the functional areas.
d. It helps in achieving the functional departmental goals.
e. They make a concern operational.
f. They give life to a physical organization.

The different types of people which are generally required in a concern are:

g. Physically fit people

h. Creative people
i. Intellectuals
j. Technical people
k. Proficient and skilled people

In personnel management, a personnel manager has to understand the relationship of the three elements and their
importance in organization. He has to understand basically three relationships:

i. Relationship between organization and job

ii. Relationship between job and people
iii. Relationship between people and organization.

Relationship between organization and job helps making a job effective and significant. Relationship between job and
people makes the job itself important. Relationship between people and organization gives due importance to
organizational structure and the role of people in it.
 CHAPTER 5

Rice. 1 Model of management using socio-psychological methods

It should be noted that this scheme is rather arbitrary, since the result is influenced by many factors other than
human. It is logical to consider the behavior of an employee as a result of his activities in the organization, which is
an integral part of the feedback.

The work of a leader is to manage people in a constantly changing situation in order to achieve predetermined goals,
motivate employees and other factors on which the activity is based. Personnel management presupposes sufficient
knowledge of each subordinate, both employee and personality. Its purpose is to rally people into a team, to make
the most of their strengths, and to make their weaknesses insignificant.

The leader exercises management, assuming power, distributing responsibilities and controlling the actions of
subordinates. Knowledge of the laws governing the mechanism of social and psychological management makes it
possible to choose appropriate methods, to design a system of social and psychological relations in an organization.

1. Improvement of social and psychological management methods

Socio-psychological management methods are based on moral values. They are developed in relation to the
conditions of a particular culture, reflect its system of values and norms of behavior: individual and group interests,
interpersonal and intergroup relationships, motivation and management of human behavior. As a result, transferring
them to other conditions is ineffective and often impossible. Reward methods that stimulate individual productivity will
not work well in a collectivist society; methods of increasing the efficiency of the enterprise, based on confrontation,
cannot be used where harmony and the absence of conflicts are among the basic values; problem solving methods
based on demographic principles are difficult to apply in a traditionally autocratic culture; the matrix system of the
organization cannot work effectively in conditions when people highly value one-man management and prefer to
receive orders from one representative of authority.

There are management methods developed in relation to the nature and complexity of the production process or the
number of registered and analyzed information, that is, concerning the technological, economic and financial aspects
of the organization. Such methods are usually neutral in relation to human values, and they are easier to transfer
from one system to another. However, even in this case, their use creates a new situation in which moral provisions
will be involved. For example, the production control or maintenance scheduling method required by the technology
may conflict with workers' beliefs and habits regarding punctuality, work organization and discipline, reasonable
absence from work, accuracy and reliability of records, etc.

Working with people is one of the most complex and multifaceted forms of human activity. Effective management
requires a system of motives and incentives that encourage employees to reveal their abilities, work fruitfully and
efficiently use production resources, the creation of which is impossible without taking into account the psychology of
the individual and the socio-psychological laws of the development of the team.

The use of socio-psychological methods of management can be effective only when there is complete and reliable
information about the processes taking place in the team. It is important to know the composition of the body's
collective, the interests, inclinations and actions of employees, the reasons for many phenomena, the motives of
behavior, positive and negative trends in the development of the collective.
An efficient close-knit team does not appear immediately - this is preceded by a long process of formation and
development, the success of which is determined by a number of circumstances that little depend on whether the
team is formed spontaneously or is formed consciously, purposefully.

First of all, we are talking about clear, understandable goals of the forthcoming activity of the collective,
corresponding to the internal aspirations, for the achievement of which they are ready to completely or partially
abandon the freedom of decisions and actions and submit to group power. Another important condition for the
successful formation of a team is the presence of certain, even if insignificant, achievements in the process of joint
activity, which clearly demonstrate its clear advantages over the individual.

A close-knit team cannot exist without the compatibility of the people who make it and the correct distribution of
responsibilities between them in accordance with the abilities and desires of each, which allows them to cooperate
and successfully solve emerging problems.

For success, the official team needs a strong leader, to whom people are ready to obey and to whom they are ready
to go towards the goal, despite the difficulties and hardships. For effective team building, some factors should be
taken into account:

Team size- research has found that a team of 5 to 11 people usually makes more accurate decisions than those that
go beyond this number. In smaller teams, workers may be concerned that their personal responsibility for the
decisions they make is too obvious. As the size of the team increases, communication between its members
becomes more complicated, it becomes more difficult to reach agreement on the issues of activities and the
implementation of their tasks. Great difficulty when working with the team in the store retail makes up what the
collective is officially divided into groups, i.e. shifts and their communication is rather difficult
The composition of the team - the degree of similarity of personalities and points of view, the approaches that
employees use when solving the problem. It is recommended to use different approaches to find the optimal solution,
so it is good when the team consists of dissimilar personalities. A multitude of points of view will pay off. In the
organization, a person who is not qualified is engaged in the selection of personnel, he undoubtedly knows a lot in
the field of retail, but in the field of personnel management and personnel policy he has neither education nor
experience. The selection and placement of personnel should be dealt with by a specialist. I propose to introduce the
post of a psychologist into the staffing table, whose responsibilities will include joint selection and placement of
personnel.
Group norms- the norms existing in labor collectives have a strong influence on the behavior of the individual and the
direction in which the collective will work. The norms are designed to prompt team members. They exert such a
strong influence because only when correlating their actions with the norms can a person count on the recognition of
the collective, its support.
Group like-mindedness- this is a tendency for a person to suppress his views on some phenomenon, so as not to
violate the harmony of the team. In this case, disagreement is considered to undermine the sense of community. In
an atmosphere of group like-mindedness, the primary task for an individual is to adhere to a common line of conduct
in discussing a problem, even if there is other information or beliefs. Since no one expresses opinions different from
others, and does not offer a different point of view, everyone believes that everyone else thinks the same way. As a
result, the problem is solved less efficiently. the required information is not discussed or evaluated. In order to avoid
group like-mindedness, it is necessary to more skillfully think over the placement of personnel, selecting people in
one department who have different points of view and who are not shy to argue and speak out.
Conflictness- differences of opinion usually lead to effective work of the team, but it also increases the likelihood of
conflict, although an active exchange of opinions is useful, it can lead to intra-group disputes, manifestations of open
conflict, which are always harmful.
Team member status- the status of a person in an organization or team can be determined by a number of factors,
including such as seniority in the job hierarchy, job title, social talents, awareness and accumulated experience.
Generally, group members whose status is high enough are able to influence the decisions of the collective more
than members of a group with low status. However, this does not always lead to an increase in efficiency. A person
who has worked for a company for a short time may have more valuable ideas and experience about a problem than
a person with a high status. For the effective functioning of the collective, efforts should be made to ensure that the
views of members with a higher status do not dominate.

Team member roles- the critical factor that determines the efficiency of the team is the behavior of each of its
members. The team functions effectively when employees try to contribute to the achievement of its goals and social
interaction. There are two main areas of workforce roles. Target roles are distributed in such a way as to be able to
select collective tasks and perform them. Supportive roles are behaviors that help maintain and revitalize the life and
activities of the community.
A person interacts with an organization not as a mechanism that performs specific work and operations, but as a
person with aspirations, desires, emotions, mood, imagination, following certain traditions and morals.

The interaction of a person with an organization is always broader than just the performance of certain work, since a
person cannot be reduced to the state of a machine, and the organizational environment cannot be reduced to a
workplace. Personality is a person as a carrier of consciousness.

You cannot find two people completely identical in psychological and personal characteristics. At the same time, in
every person there are rudiments of common personality traits, which makes him somewhat similar to others. The
individuality of a person is made up of three components: each is somewhat identical to the rest; each in some way is
similar to some, each in some way is not like anyone else. Depending on how these components are combined, the
individuality of a particular person is manifested.

The individuality of a person is formed under the influence of three groups of factors: heredity and physiological
characteristics; factors arising from the environment; traits and characteristics of character. Such psychological
properties of personality as temperament, character, peculiarities of worldview, abilities allow a person to preserve
individuality. "Temperament is the most general characteristic of each individual person, the most general
characteristic of his nervous system, and this latter puts one or another stamp on the entire activity of a given
individual" (I.P. Pavlov). Determination of temperament is important for successful vocational guidance and must be
taken into account when placing personnel.

Tab. 1. Characteristics of personality traits depending on temperament

Features of nervous processes

Temperament
type equilibrium mobility

Unbalanced Rampant
 Phlegmatic
person Balanced Inert Retarded

Sanguine Balanced Mobile Calm

Melancholic Unbalanced Mobile Painful

In order to understand what a particular person is, communication with him, conversations are necessary.

In order to dock the expectations of a person and an organization in relation to each other and thereby eliminate
them or minimize the problems that arise between a person and the environment, it is important to clearly understand
what place in the organization a person claims, what roles he can and is ready to perform and what kind of the role is
supposed to be offered to him. Often the discrepancy between the role that the organization offers to the person and
his claims becomes the basis of the conflict.

There are two approaches to solving this problem. The first is that the role is fundamental. In the second approach,
the starting point is the place for which the person claims and his potential. In the first case, a person is selected to
perform a job, a function, that is, to perform a certain role in an organization. In the second case, the job is selected
for a person in such a way that it optimally matches his capabilities and claims for a place in the organization.

Tab. 2. Methods of interaction between a person and an organization

A person is selected to perform a Work function is matched to the
specific job, function person

Exploring the capabilities and

Study of work aspirations of a person

Assigning a person to a certain place

Work description in the organization

Determination of qualification Selection of work that best suits a

requirements person's capabilities

Selection of candidates
for qualification requirements
 Inclusion in the group and
consolidation of work in accordance
Job assignment with the tasks of the group

The first approach is traditional and the most widespread in modern practice. The second approach is also found in
practice, mainly within the framework of the Japanese type of management. At the same time, despite the complexity
of implementation, in the world management practice, there is a tendency to expand the use of this approach.

There are methodological techniques for studying personality. One of them is the study of the external appearance of
a person. Details of appearance, clothing, demeanor allow us to make some assumptions about character,
profession and habits.

For social psychology, the main reference point is the relationship between the individual and the group; identifying
the patterns that govern the behavior and activities of an individual included in a particular social group.

The structure reflecting the service relationship in the team was called the official one. The official structure is
impersonal: rights and duties, prescribing a certain set of actions and a style of behavior, are endowed not with a
specific person, but with anyone occupying a given place or position. Any formal group, along with the official
structure fixed by the staffing table, necessarily has an unofficial structure, which arises spontaneously,
spontaneously, but often it is this structure that turns out to be the most effective. It is important for the leader to
know what this structure is (who is the informal leader of the group). This can be diagnosed using the sociometry
method, which allows you to accurately determine the relationship in the team (it comes down to interviewing group
members according to criteria that are significant for evaluating any side interpersonal relationships). The survey is
conducted non-impersonally, it is possible to obtain a fairly large amount of additional information.
CHAPTER 6

Planning and forecasting in personnel management.

What is HR Forecasting?

Forecasting—whether it’s business forecasting, human resources forecasting, or financial forecasting—is the
process of using data, insights, analytics, and experience to make predictions and preparations to meet a specific
business need. According to the Institute of Business Forecasting and Planning, “whether you realize it or not,
virtually every business decision and process is based on a forecast.” 

Human resources or HR forecasting is an important activity for growing businesses. To be successful, growth-
oriented businesses should periodically assess short- and long-term staffing needs based on projected sales, new
product launches, market expansion, as well as other factors that might affect labor needs. An HR forecast should
include the number of workers needed, the type of skills required to fill any gaps, and any costs or administrative
tasks that will be required to increase or downsize your workforce. 

Find out what growth-oriented businesses need to know about HR forecasting and practical steps you can take to
ensure your business is ready to scale the size of its workforce to meet changing market conditions.

The basics of human resource forecasting

Just as a business plans for financial growth, it’s also important to plan for the growth of a workforce. HR forecasting
is the process of predicting demand and supply—whether it’s the number of employees or types of skills that are
needed and available to get the job done. Basic forecasting techniques include:

 Yearly sales or production projections.

 Quantitative assessments, using mathematical calculations, that examine how many employees are needed
and when.
 Qualitative assessments, based on judgment, that determine culture-fit and skill qualifications or desired
personal and professional qualities.

Existing businesses that have been operating for several years can also conduct a trend analysis to create a staffing
plan for the future. A trend analysis allows business leaders to examine the relationship between past and future
staffing needs using an operational index metric. Newer businesses are advised to use a ratio analysis to forecast
staffing needs. Using this technique, business leaders examine causal factors such as sales volume to predict
staffing needs.
Why you need to evaluate labor supply and demand

The most successful businesses utilize human resource forecasting to minimize risk. It’s especially important for
growth-oriented businesses to “limit exposure to surpluses or shortages in labor.” Entrepreneurs, owners, and
business leaders can use strategic human resource forecasting and planning to better understand workforce needs.
As you evaluate labor demand, your workforce may already have skills you can tap into as the business grows or you
may find a need to augment or renew technology skills. Your business can meet labor demand from within, or use
outside labor supply sources. As you build your HR forecast, it’s important to thoroughly review talent supply and
factors impacting the availability of that talent. As Investopedia points out, it’s often more costly to recruit new hires
than to upskill or train existing employees to increase productivity.

Some businesses need or want to invest all of its time and energy on growth. That’s why many businesses rely on
HR services to help forecast labor demand and supply. HR services can create organization and replacement charts
that help identify important roles and functional needs across your business. Supply forecasting includes a review of
the current labor market and employment law to ensure your business is both competitive and compliant.

Other benefits of HR forecasting

To drive business growth and success, you need the right talent behind you. HR forecasting enables your business
to determine skill requirements, evaluate demand, assess labor supply, understand workforce needs, and develop a
strategy to meet your goals and growth objectives. In addition to effectively balancing labor demand and supply, HR
forecasting emboldens your business to:
Develop effective budgets - By determining your workforce requirements, you also put your business in a better
position to forecast costs. To meet your business goals, you may need to hire seasonal workers or increase salary
levels to retain top talent. Benefits costs may increase as well. HR forecasting provides insight into those predicted
workforce expenses so you can accurately plan for overall human capital costs.

Make more detailed workforce predictions - Beyond helping your business meet evolving needs for new skills,
production, and productivity, HR forecasting also emboldens you to gain deeper insight into your workforce. HR
forecasting and analysis helps you predict turnover related to retirement or market competition. It can also help you
analyze how business strategy changes will impact your workforce including production of a new product, change in
target audience, or the introduction of new employment or manufacturing regulations.  

Forecast HR needs regularly - Business conditions are constantly changing, which means your workforce is too. To
effectively meet your HR needs, it’s important to review talent requirements on an ongoing basis. For example:

If your business manufactures a product, labor needs will change as sales rise and fall. Your business may see
seasonal demand for that product, or other changes in consumer demand. In this case, HR and sales forecasting
should work together to identify sales spikes or declines that will affect production and labor needs. Analyzing these
forecasts regularly can minimize the risk your business might fall behind on production and order fulfillment, produce
too much inventory, or pay a bloated workforce. 

Get help with HR needs and strategy

Growth-oriented businesses can bring in fully certified HR professionals to help with strategic HR planning and
forecasting. Fully outsourced HR is built for growing companies that haven’t yet built an in-house HR team or instead
want to focus time and money on the core business. HR services provide services and support for the entire
employee lifecycle. With a team of HR experts on your side, you’ll have access to tools, resources, and manpower
needed to complete essential HR projects including HR forecasting, salary benchmarks, job descriptions, and
training programs.