Unit I - Introduction to Personnel

Management.
Introduction.
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 rational personnel policies.

Unit I - Introduction to Personnel Management. 1

 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 a personnel manager.

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

1. Staffing role - Personnel managers serve an important role in developing a

team of professionals. They help find new talent, train new employees and
support them as necessary during their careers. Successful personnel managers
can work to increase retention as they foster poster work interactions and solve
conflicts.

2. providing 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.

3. 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.

4. He Acts 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.

5. He Acts as a mediator - He is a linking pin between management and workers.

6. 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.

Unit I - Introduction to Personnel Management. 2

 7. welfare role - In most organizations, the personnel manager also acts as the
welfare officer. Therefore, he ensures facilities and services like canteen,
transport, hospitalization, and other employee welfare services are available to
the workers.

8. Research role - He maintains a record of all employees in the organization. He

also researches various personnel areas like absenteeism, alcoholism, labor
turnover, etc. Further, post-analysis, he recommends apt measures to help
eradicate them to the senior management.

9. Operation role - reviewing and approving budgets, implementing new company

policies and maintaining internal HR systems.

10. Strategic role - The strategic role of a human resources manager is to

determine how to identify and resolve workplace issues, as well as how best to
attract a diverse pool of applicants through effective recruitment and selection
processes.

Q. Apart from the managerial and operational functions, what are the roles of a
personnel manager?

Ans. The roles of a personnel manager are:

Policy Initiation

Advisory

Linking-pin

Representative

Decision-making

Mediator

Leadership

Welfare

Research

staffing

housekeeper

welfare

Unit I - Introduction to Personnel Management. 3

 operation

strategic

legal consultant

counsellor

Scope of Personnel Management :

1. Training and development : Training refers to the process of increasing the
knowledge, skills and abilities of employees for doing a work. Development
refers to the overall growth of the employees.

Training and development in Human Resource Management (HRM) refers

to a system of educating employees within a company. It includes various
tools, instructions, and activities designed to improve employee
performance. It's an opportunity for employees to increase their knowledge
and upgrade their skills.

2. Wages and Salary administration : Salary is typically a yearly figure that is

fixed for a period of time, with a pre-determined increment trajectory. Wages are
fixed on an hourly basis and an individual's earnings will be variable, depending
on their work hours.

Wage and salary administration is defined as the process by which wage

and salary levels and structures are determined in organisational settings.
Wages are payments for labour services rendered frequency, expressed in
hourly rates, while a salary is a similar payment, expressed in weekly,
monthly or annual rates.

3. Recruitment and selection : A process of actively searching and hiring

applicants for a job role is known as recruitment. A process of choosing suitable
applicants from the shortlisted candidates is known as selection.

4. Placement and Induction : Placement is a process of assigning a specific job

to each of the selected candidates. It involves assigning a specific rank and
responsibility to an individual.

Induction is concerned with introducing or orienting a new employee to the

organisation. It is the welcoming process to make the new employee feel at

Unit I - Introduction to Personnel Management. 4

 home and generate in him a feeling of belongingness to the organisation.

5. Job analysis and Job specification : Job analysis is primary tool in personnel
management. In this method, a personnel manager tries to gather, synthesize
and implement the information available regarding the workforce in the concern.
A personnel manager has to undertake job analysis so as to put right man on
right job.

Job Specification is a statement which tells us minimum acceptable human

qualities which helps to perform a job. Job specification translates the job
description into human qualifications so that a job can be performed in a
better manner. Job specification helps in hiring an appropriate person for an
appropriate position.

6. Job Evaluation : Job evaluation is a process of determining the relative worth of

a job. It is a process which is helpful even for framing compensation plans by the
personnel manager.

7. Apply legalization : These include issues relating to employee benefits and

compensation, health and safety, leave entitlements, discrimination and
harassment, confidentiality, and employee labor rights.

8. Handling Industrial relations (IR) : Industrial relations play a major role in

human resource management. It is an important function of HRM that focuses
on maintaining good relations between the company, its employees, and its
business partners. It also deals with employee rights and workplace issues like
unionization, etc.

Functions of Personnel Management.

Functions of personnel management are categorized
under :
The Managerial Functions:-
The Managerial functions of a personnel manager involve POSDCORB
(Luther Gullick) i.e., Planning, organisation, staffing, directing, coordinating,
reporting and budgeting of those who actually perform the operative
functions of the Personnel Department.

Unit I - Introduction to Personnel Management. 5

 Following are the managerial functions of personnel management :

1. Personnel Planning :

Planning lays down a pre-determined course to do something such

as what to do, how to do, where to do, who is to do etc.

A personnel manager plans in advance the trend in wages, labour

market, union demands etc. Through planning, most of the future
problems can be anticipated.

2. Organizing :

According to J.C. Massic, “An organisation is a structure, a

framework and a process by which a co-operative group of human
being allocates its task among its members, identifies relationships
and integrates its activities towards common objectives.”

The personnel manager has to design the structure of relationships

among jobs, personnel and physical factors so that the objectives of
the enterprise are achieved.

3. Directing :

This function relates to guidance and stimulation of the subordinates

at all levels.

The personnel manager directs and motivates the employees of his

department so that they work willingly and effectively for the
achievement of organisational goals.

4. Co-Ordinating and Controlling :

A personnel manager has to constantly watch whether there is any

deviation from the planned path. Controlling is concerned with
remedial actions. Continuous monitoring of the personnel policies
relating to training, labour turnover, wage payments, interviewing
new and separated employees etc., is the backbone of controlling.

If deviations are unavoidable, corrective action can be planned in

advance. Controlling helps the personnel manager to evaluate the
performance of employees of the personnel department so far as the
operating functions are concerned.

Unit I - Introduction to Personnel Management. 6

 The Operative Functions:-
The operative functions of the Personnel Department are also called service
functions. These include.

1. Procurement :

Recruitment i.e., tapping the possible sources from where prospective

labour supply will come.

Getting information regarding prevailing wage rates and job

requirements.

Selecting the best candidate by following a systematic selection

procedure.

Maintaining the records of employees.

Introducing the new employee to the officers of the other departments

such as Security Officer, Time Keeper, and Cashier etc.

2. Training & Development :

The training of the new employees and also of those who are being
promoted is the crucial function of Personnel Department. A training
programme is devised for this purpose. The training increases the
skills and abilities of the employees.

The various aspects of training are:

Training to new employees, instructors and supervisors.

Training in safety equipments and various policies of companies.

Training through improvement of education such as evening

classes, films, Entertainment programmes etc.

Encouraging employees to give suggestions.

3. Promotion, Transfer and termination :

The performance of the employees is evaluated for the purpose of

taking decisions concerning the employment. Merit rating is
undertaken for evaluation of the performance of the employees.

Unit I - Introduction to Personnel Management. 7

 The functions of the Personnel Department in this regard are
given below:

To lay down a promotion policy.

To formulate policies regarding transfer and termination.

To formulate policies regarding transfer and termination.

Analysis of voluntary separations and knowing the possible

causes of such separations.

4. Compensation :

The employees should get adequate and equitable remuneration for

the work being done by them.

The functions of the Personnel Department concerned with

fixation of fair wages are:

To evaluate jobs and determine their worth in terms of money.

To collaborate with those who formulate wage plans.

To assist in formulation of policies regarding pension plans, profit

sharing programmes, non-monetary benefits, etc.

To compare the wages of the enterprise with the industry and

remove inconsistencies, if any.

5. Welfare Activities :

These activities relate to physical and social well-being of the

employees and include:

Provision of medical facilities such as first aid, dispensaries, etc.

Suggesting ways and means by which accidents can be

eliminated or minimized.

To make provisions for restaurants and other recreational

facilities.

To apply the labour laws effectively.

To publish a plant magazine.

Unit I - Introduction to Personnel Management. 8

 6. Collective Bargaining :

To assist in the negotiations which are held with the union leaders.

To know the grievances of employees and following their problems

properly.

7. Miscellaneous :

To advise the line managers regarding administration of personnel

policies.

To secure co-ordination of all personnel activities.

To have an effective communication system.

To provide good working conditions.

Personnel Policies.
Q. What do you mean by Personnel Policy?

Policies are broad guidelines as to how the objectives of a business are to be

achieved. While objectives provide the ends which a manager should try to
achieve, policies provide the guidelines which he should keep in view while
achieving the ends.

Human resource or Personnel policies lay down the decision making criteria in
line with the overall purpose of the organisation in the area of Human Resource
Management. They are developed by the HR Manager in consultation with the
top management to assist the managers at various levels to deal with the people
at work.

Thus, personnel policies can be interpreted as the recognized intentions of top

management with respect to efficient management of workforce.

Examples of Personnel policies :

1. The employees will not accept any gift from any supplier except for token
gifts of purely nominal or advertising value.

2. Each employee will proceed on at least one week vacation each year.

3. The employees will not accept any outside assignment.

Unit I - Introduction to Personnel Management. 9

 HR policies cover the principles and rules of conduct governing the dealings of
the organisation with its employees, and set the tone for the administration of
personnel programs in a manner conducive to the attainment of the objectives of
the organisation.

The need for sound personnel policies stems from the fact that in order to
achieve the overall objectives of the enterprise, an atmosphere has to be
created in which optimum and spontaneous co-operation of the employees can
be achieved.

HR Policies are continuing guidelines of the organization which are intended for
adoption in managing its people. It represents specific guidelines to HR
managers various matters concerning employments. It states the intent of the
organization about different aspects of Human Resource management such as
recruitment, promotion, compensation, training, selections etc.

HR Policies define the conception and value of the organization on how people
and things should be treated. Therefore, it serves as a reference point when
human resources management practices are being developed or when
decisions are being made about people.

A good HR policy could provide generalized guidance on the approach adopted

by the organization, and therefore its employees, concerning various aspects of
employments. However, each company has a different set of circumstances, and
so each develops an individual set of human resource policies.

Types of Personnel Policies.

1. Originated Policy : These are the policies usually established by the senior
managers in order to guide their subordinates. These are set-up by top
management intentionally with a view to guiding executive pondering over
various levels.

2. Appealed Policy : Appealed policies arise because the particular case is not
covered by the earlier policies. Usually, such requests came from
subordinates who fail to handle the cases on the basis of the guidance
offered by the existing policies.

3. External/ Imposed Policy : Policies imposed on the business by external

agencies such as government, trade association, trade union.

Unit I - Introduction to Personnel Management. 10

 4. General Policy : These policies do not relate to any specific issue in
particular. General policies are formulated by an organization's leadership
team. General policies are the the policies which are generalized for
everyone in the organization.

5. Specific Policies - These policies are related to specific issues

like staffing, compensation, collective bargaining etc. Specific policies must
confirm to the pattern laid down by the general policies.

6. Implied and Written Policy : Implied policies as evident from the behavior
of members like dress code, gentle tone while interacting with to customers,
not getting angry while at work, etc. On the other hand written policies, spell
out managerial thinking on paper so that there is very little room for loose
interpretation.

Need for Personnel policies

The formulation of HR policies can help an organization demonstrate, both
internally and externally, that it meets requirements for diversity, ethics and
training as well as its commitments in relation to regulation and corporate
governance of its employees.

For example, in order to dismiss an employee in accordance with

employment law requirements, amongst other considerations, it will normally
be necessary to meet provisions within employment contracts and collective
bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behavior and document disciplinary procedures, is
now the standard approach to meeting these obligations.

They provide frameworks within which consistent decisions are made and
promote equity in the way in which people are treated. HR policies can also
be very effective at supporting and building the desired organizational
culture.

The need can be highlighted by way of following points:

1. They provide clear communication between the organization and their

employees regarding their condition of employment.

Unit I - Introduction to Personnel Management. 11

 2. They form a basis for treating all employees fairly and equally.

3. Policies are a set of guidelines for supervisors and managers.

4. They create a basis for developing the employee’s handbook.

5. They establish a basis for regularly reviewing possible changes affecting

employees.

6. Policies form a context for supervisor training programs and employee

orientation program.

https://www.economicsdiscussion.net/human-resource-management/hr-po
licies/hr-policies/32441

More on HR Policies….

Line-staff relationship, Authority,

Responsibility and Accountability.
Line-Staff Relationship.
In personnel management, the line-staff relationship refers to the working
dynamics between line managers and staff personnel within an organization.
This relationship is based on a division of labor and responsibilities, where line
managers are responsible for the core operational activities, while staff personnel
provide specialized support and expertise.

Here are some key points about the line-staff relationship:

1. Line Managers: Line managers are directly responsible for achieving the
organization's objectives and executing day-to-day operations. They have
authority over the line employees who are directly involved in production,
sales, or service delivery. Line managers make decisions, give instructions,
and are accountable for the performance of their teams.

2. Staff Personnel: Staff personnel are individuals or departments that provide

specialized support, advice, and services to line managers and other

Unit I - Introduction to Personnel Management. 12

 employees. They typically have expertise in areas such as human resources,
finance, legal, marketing, IT, or quality assurance. Staff personnel do not
have direct authority over line employees but play a crucial role in assisting
line managers in their decision-making and operational processes.

a. Support and Expertise: The staff personnel assist line managers by

providing advice, information, analysis, and specialized services. For
example, the HR department may assist line managers in recruitment,
training, and performance evaluation. The finance department may
provide financial analysis and support for budgeting and cost control.
The marketing department may offer market research and promotional
strategies.

b. Advisory Role: Staff personnel act in an advisory capacity, offering their

expertise to line managers. They provide recommendations and
alternatives based on their specialized knowledge. However, line
managers ultimately make decisions based on their understanding of the
overall objectives and operational constraints.

c. Collaborative Relationship: The line-staff relationship should be

collaborative and based on mutual respect. Line managers rely on staff
personnel for support and expertise, while staff personnel depend on line
managers for implementing their recommendations. Effective
communication, coordination, and cooperation are essential for a
productive line-staff relationship.

The line-staff relationship in personnel management involves a collaboration

between line managers responsible for operational activities and staff personnel
providing specialized support and expertise. This relationship is crucial for
achieving organizational objectives and ensuring effective decision-making and
operational execution.

Authority, Responsibility and Accountability.

1. Authority: Authority refers to the legitimate power granted to individuals or
positions within an organization to make decisions, give instructions, and
take actions that influence others. It represents the formal right to exercise
control, direct subordinates, allocate resources, and enforce policies.
Authority can be hierarchical, with higher-level positions having more

Unit I - Introduction to Personnel Management. 13

 authority than lower-level positions, or it can be based on expertise or
specialized knowledge.

2. Responsibility: Responsibility is the obligation or duty assigned to

individuals or positions to perform specific tasks, achieve objectives, or carry
out certain functions. It involves being answerable for the outcomes of one's
actions or decisions. Responsibilities are typically defined in job descriptions,
outlining the tasks, goals, and deliverables that individuals are expected to
fulfill. Responsibility can vary depending on the level and scope of one's role
within the organization.

3. Accountability: Accountability refers to the answerability and liability for the

outcomes of one's actions, decisions, and performance. It involves accepting
the consequences, whether positive or negative, for the results achieved.
Individuals or positions are held accountable for meeting established goals,
complying with policies and procedures, and utilizing resources effectively.
Accountability ensures that individuals take ownership of their responsibilities
and are transparent in their actions.

These three concepts are interrelated and form the basis for establishing clear
roles, decision-making processes, and organizational structure. Here's how they
relate to each other:

Authority and Responsibility: Authority and responsibility go hand in hand.

When individuals or positions are granted authority, they are also assigned
corresponding responsibilities. Authority enables individuals to make
decisions and take actions, while responsibility ensures that they are
accountable for the outcomes of those decisions and actions. The level of
authority assigned to an individual or position should align with the
corresponding level of responsibility to maintain balance and effectiveness.

Accountability and Responsibility: Accountability arises from the

responsibilities assigned to individuals or positions. When individuals are
responsible for specific tasks or objectives, they are held accountable for the
successful completion or performance of those responsibilities.
Accountability reinforces the notion that individuals are answerable for their
actions and are expected to deliver the desired results.

Unit I - Introduction to Personnel Management. 14

 Accountability and Authority: Accountability serves as a check and
balance to authority. While authority grants individuals the power to make
decisions and take actions, accountability ensures that those decisions and
actions are scrutinized and evaluated for their effectiveness and alignment
with organizational goals. Accountability helps prevent the misuse or abuse
of authority and promotes responsible behavior.

In personnel management, establishing clear lines of authority, defining

responsibilities, and promoting accountability are crucial for effective
organizational functioning. By clarifying these concepts, organizations can create
a framework for decision-making, task allocation, and performance evaluation
that supports their objectives and fosters a culture of responsibility and
accountability.

Organization structure of Personnel

department.

Unit I - Introduction to Personnel Management. 15

 1. Employment Manager : The employment manager in the personnel department
is responsible for attracting and hiring qualified candidates. They oversee the
recruitment process, including job analysis, sourcing, candidate evaluation, and
compliance with regulations. Their role is to ensure the organization acquires
skilled and suitable talent.

2. HRD Manager : The function of an HRD (Human Resource Development)

manager in the personnel department is to oversee and facilitate the
development and training of employees within the organization.

3. Compensation Manager : The compensation manager in the personnel

department is responsible for designing and managing employee compensation
programs and ensuring equitable and competitive pay structures.

4. Industrial Relations Manager : The function of the Industrial Relations

Manager in the personnel department is to manage and maintain positive
relationships between the organization and its employees, unions, and other
labor organizations.

5. Employee Welfare : The function of an Employee Welfare Manager in the

personnel department is to oversee and manage employee welfare programs
and initiatives within the organization like counselling and community
development, etc.

6. Manager of Common Services : The functions manager of common services in

the personnel department oversees the coordination and management of shared
services such as payroll, employee benefits, and administrative support.

Unit I - Introduction to Personnel Management. 16