Unit 2

HRM and Personnel Management

Syllabus

• HRM and Personnel Management Introduction, Concept of Personnel

Management, Personnel Management in India, Difference Between Personnel
Management and HRM.
 Introduction
Human Resource and
personnel management
Proactive vs. Reactive HR
management
Reactive management:
Problem occurs >> respond to make decision

Proactive management:
Problems are anticipated and
corrective action starts before
problem arise
 Personnel manager
A staff or man with functional authority employed for the
purpose of giving advice to other operating managers on
Personnel matters is called a personnel manager.
 Personnel manager
Functions of personnel manager:
>>Managerial function: The managerial function is divided
into five parts such as planning, organizing, staffing,
leading, controlling
>>Operative functions: It includes various tasks such as:
Procurement/ Recruitment, Development, compensation,
Integration, Separation, Maintaining
 Personnel manager functions
Recruitment is the process of finding and attracting capable
applicants for the employment.
There are two types of recruitment:
(a) Internal recruitment: If one person is already in the
organization and then he sets promotion or transferred to
another job, then it is called internal recruitment,
(b) External recruitment: when vacancy can’t be fulfilled
internally then the organization must look for applicants. This
type of recruitment is called external recruitment.
 Personnel manager functions
# Development:A personnel manager should give
wages, salaries, bonuses pay for the work.
# Integration: A Personnel manager should integrate
the
employees into main tasks.
 Personnel manager
# functions
Separation: After finishing working period of worker, all
necessary procedure for recruitment or resignation are taken by
personnel manager.
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 Comparison Between Personnel Management
and Human Resources Management
FACTO PERSONNE HUMAN
RS L RESOURCES
1. Scope : MANAGEME
mostly rank and all people working for and
MANAGEMENT
people file NT with the organization
involved including the Board, top
management consultants
or resource persons,
middle management,
2. Hours of full-time rank and part-time,
full-time, file flex
work
3.Place of work
formal setting: time
formal and informal
work office, factory / settings
plant
 FACTORS PERSONNE HUMAN
L RESOURCES
4.Types of service MANAGEME
few and Varied and complex: job
MANAGEMENT
simple:
/ function personnel
NT organization and information: job
information, analysis, job design and job
recruitment and evaluation; acquisition of human
screening social resources: human resources
activities, planning, recruitment, screening,
management-lab selection and placement,
or relationship maintenance: orientation,
motivation, assessment and
evaluation, compensation
administration, movement analysis,
benefits, participation and services
5.Department administrative Separate
programs,Human Resources
management- labor
head or officer or chief Department
relations. manned by
officer-in executive human resources specialist
charge officer
 FACTORS PERSONNE HUMAN
L RESOURCES
6.Department MANAGEME
lawyer, records behavioral scientist,
MANAGEMENT
staff: clerk
NT social science
qualifications
7.Level lower level of line higher level of general
researcher
reporting of managers manager or chief
executive officer
8.Goal accomplishment of accomplishment of
s organization goals organization and
being emphasized individual goals
9.Technolo mechanistic: reactive, Developmental:
gy structural, inflexible, proactive,
technical, control socio-technical
oriented and orientation, flexible,
organization-oriented participatory, creative
and innovative
 FACTORS PERSONNE HUMAN
L RESOURCES
10. Personally
MANAGEME subjective Objective and scientific
MANAGEMENT
Strategies based
NT on based on individual and
management’ needs organization culture, total
and values: systems approach
compartmentalized
11.Philosoph Traditional
approach Human with emphasis
y work on respect for
orientation
priorities on organizationindividual andwell-being:
society’s
and management
people:
with an investment and a
welfare mainly for resource
profit people: an
expense and a factor
or production
 Summar
y
• A personnel has a strong functional focus. It is concerned with
the administration of specific employee-related functions such
a hiring, training and disciplinary actions which are not viewed
as interrelated.
•Human resources management views all personnel functions as
interrelated and takes an encompassing view. It is development
flexible and participatory in the sense that it is more concerned
with the growth and development of the individual employee;
provides more opportunities and innovations in all personnel
functions.
• HRM seeks to develop the competencies of the
employees on a sustained basis while PM is a regular,
status quo–based administrative function.

17
Personnel Management:-
• Personnel management is defined as an administrative specialization
that focuses on hiring and developing employees to become more
valuable to the company.

• It is sometimes considered to be a sub-category of human resources

that only focuses on administration
Evolvement of Personnel management:-
a) Mechanical Approach towards Personnel

• The reasoning here is that if machines can be made more productive by extreme
specialisation, so can men. This approach has also been called the 'factor-of-production
concept’.

• It implies that labor must be classified with capital and raw material as a factor of
production to be procured as cheaply as possible and utilised to the fullest.

• The fact that human beings are involved in this is of human the mechanical approach
usually results in the creation of various management problems-personnel problems.
 Evolvement of Personnel management:-
b) Paternalism:-

• In this approach management must assume- a fatherly and protective attitude towards employees. By merely
supplying benefits, eg. housing, transport, recreation and pensions, managements are not necessarily
paternalistic. It is the attitude and the manner of implementation that determine whether or not a management is
paternal in its dealings with employees, To be paternalistic two characteristics are necessary.

• Firstly, the profit motive should not be prominent in management's decision to provide such employee services.

• Secondly, the decision concerning what services to provide and how to provide them belongs solely to
management. The father makes the decision that he feels is best for the child. Paternalism died largely during
the depression of the 1930's, though certain managements still use this approach in their dealings with
employees. How many managements consult their black employees
 Evolvement of Personnel management:-
b) Social System Approach :-
• In this approach the organisation is perceived as
the control agency operating in an open system.
Employees are perceived as power sources whose
development can be alligned with basic
organisational goals. As the diagram besides indicates, the
employee group is only one of many groups to which
the manager must relate

• This is more mature approach also explains the various

roles a person has to play. From this flows role
expectations, role conflicts, etc., and the influence this has
on human behaviour.
Evolvement of Personnel
D) Newer Approaches to Personnel Management
management:-
• The basic mission of personnel is conceived by BiICKER (1965) to be a huge balancing act.

• Personnel is responsible for balancing the demand for and supply of people, of balancing the organisation's need
for certain experience and skills with the labour markets supply of these skills and experience.

• Everything the personnel man does has an effect on one side of the balance or the other.

• (i) "A company's productivity and resulting profitability are directly proportional to the quantity and quality of
its human resources."
(ii) "The efficiency and effectiveness of employers' productivity results from the recognition of, and
enhancement of, the human dignity of each individual employee."
(iii) "The supply and calibre of the human resource can be effectively enhanced through education, training and
personal development.
Function of Personnel management:-
Major functions and
objectives are given
hereunder: Personnel
Management functions are
generally divided into
planning, organising,
staffing, motivating and
controlling aspects. Major
functions and objectives are
given in the table besides
Principles of Personnel management:-
The Process of Personnel Management
The following are the steps involved in the process of personnel management:
a) Human resource planning and forecasting,
b) Recruitment,
c) Selection,
d) Training and development,
e) Performance appraisal and
f) Promotion and demotion
 Role of Personnel Manager
• Personnel manager is the head of personnel department. S/he performs both managerial and operative functions of management. The
role can be summarized as:

• 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.

• S/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.

• 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.

• Personnel manager acts as a mediator- He is a linking pin between management and workers.

• S/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
 Role of personal management In India
• For any organization one of the important assets nowadays is its employee base. Having
everything, good employees will affect the overall working of the organization.

• Personal management is a simple art of maintaining and retaining the employees in the
organization, channelizing them according to the requirement and providing adequate training
which aids them to perform properly and in the expected way.

• Managing people is a crucial task as inefficient handling would result in losing people or high
employee turnover rate.

• Initially employees were not given so much attention in India because of their lower sought
after need but now things have changed with revolution in thought process. Now employees
get equal weight as they play a vital role in shaping the organization’s future.
 Role of personal management In India
• In India this practice is now being taken very seriously as now the industry is aware that employees
are no more just ‘cost to company’ but rather if properly taken care of, they are the real back bone of
the organization

• Main focus is now given to developing self-belief into the employees with the help of various
activities which help them to reconnect with their own self and develop a unique way of doing
routine things.

• In a way they can indirectly help themselves by helping their employees in finding a proper and
efficient way of working.

• Many issues which are also being seen by India Inc. is that employees do not have a proper growth
plan because of which they end up performing below their actual capacity and ability.
 Role of personal management In India
• Personnel management is a helping aid as it helps to identify and handle in the most scientific way to get
the optimum results out of the employees.

• The main problem which is a basic issue in any organization is that an employee always thinks that a company
is always paying him less and not remunerating him as per his skills and abilities. On the other hand, what the
organization thinks is that the employees benefit much more than their actual compensation.

• New ways of handling personnel which is being seen nowadays is that employees are given a chance to
liberate themselves with the help of the passion which they have.

• Modern management also focuses on involving employees into decision making, which can also be termed as
participative management.

• In India this is not a wide spread but this is the way the individuals feel united with the organization as
they have been given a due importance while making a decision.
 Role of personal management In India
• Personnel management is a helping aid as it helps to identify and handle in the most scientific way to get
the optimum results out of the employees.

• The main problem which is a basic issue in any organization is that an employee always thinks that a company
is always paying him less and not remunerating him as per his skills and abilities. On the other hand, what the
organization thinks is that the employees benefit much more than their actual compensation.

• New ways of handling personnel which is being seen nowadays is that employees are given a chance to
liberate themselves with the help of the passion which they have.

• Modern management also focuses on involving employees into decision making, which can also be termed as
participative management.

• In India this is not a wide spread but this is the way the individuals feel united with the organization as
they have been given a due importance while making a decision.
Personnel management In India
• The term “Human resource management”
has been commonly used for about the last
ten to fifteen years. Prior to that, the field
was generally known as “Personnel
administration” or personnel management.
 ORIGIN OF Personnel management In India

• Its origin is dated back to 1800 B.C., when wage and incentive
plans were included in the Babylonian code of Hammurabi.
• The world’s first management book, titled “Arthasastra”
written by Kautilya, during Chaldeans in 400 B.C., codified
many aspects of human resource practices in Ancient India.
 EARLY PHASE
• HRM in India could be traced back in the
period after 1920, when emphasis was on
worker welfare.
• In 1931, the royal commission on labour
suggested the appointment of labour officer to
protect workers interests
 FIRST PHASE
• Immediately after independence the focus was on four reasons:
Maintain discipline
Prevent their information of and break-up the leadership of
trade unionism
Handle recruitment and termination
Keep some form of attendance and personnel records.
 SECOND PHASE
• In 1960s, Indian industrialization got a fillip with the rise of
the public sector. Hence 3 more functions were added
Labour welfare
Participative management
Industrial harmony
• In this period, the human relations movement of the west also
had its impact on Indian organizations
 THIRD PHASE
• In 1970, the people management function was neatly
divided into two:
Personnel officers
Establishment officers
FOURTH PHASE
• In 1976, birth of worker training institute and
attitudinal development.
FIFTH PHASE
• In 1985, organisation shifted towards making HR
department separately
• HRD and personnel function were clubbed together
 SIXTH PHASE
• Early 1990s:
HRM was seen as strategy
Motivation and stress were considered to bring
change in HRM
Focus on organisation objectives
SEVENTH PHASE
• In the mid of 1990s, sub specifications like:
Industrial relations
Training and development
Information system
 EIGHTH PHASE
• In 1999:
HRM was not a selective management anymore
It became the part of corporate strategy
formulation and strategy implementation team
1920 –
1990s
Difference in HRM and Personnel management