Friday, February 5, 2016

HRM Unit -1

Unit – I
Personal Management –meaning, nature, scope and objective – functions of personnel department – The role of personnel manager – Organisation of personnel department- Personnel Policies and Procedures
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 maintainance 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 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.

Objectives of Personnel Management:

These are classified into two:
(а) General Objectives:
These reveal the basic philosophy of top management towards the labour force engaged on the work and its deep underlying conviction as to the importance of the people in the organisation. The following are the most important objectives.

(i) Maximum individual development:
The employer should always be careful in developing the personality of each individual. Each individual differs in nature and therefore management should recognise their individual ability and make use of such ability in an effective and make use of such ability in an effective manner.
(ii) Desirable working relationship between employer and employees:
It is the main objective of personnel management to have a desirable working relationship between employee and employees so that they may co-operate the management.
(iii) Effective molding of human resources as contrasted with physical resources: Man is the only active factor of production, which engages the other factors of production to work.
(b) Specific objectives: Following are some of the important activities:
(i) Selection of right type and number of persons required to the organisation.
(ii) Proper orientation and introduction of new employees to the organisation and their jobs.
(iii) Suitable training facilities for better job performance and to prepare the man to accept the challenge of higher job.
(iv)  Provision of better working conditions and other facilities such as medical facilities.
(v) To give a good impression to the man who is leaving the organisation.
(vi)  Maintaining good relations with the employees.

Scope of Personnel Management:

Personnel management covers four types of functions:
1. Advisory function: Establish good relations between management and employees.
2. Management function: Recruitment, training, education, etc. of personnel.
3. Administrative function: Covers major administrative matters.
4. Workers Welfare: Pay attention to workers' physical and mental health, and their social and economic conditions.
Functions of Personnel Management
Functions of Personnel Management: 1. Managerial Functions 2. Operative Functions!

1. 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.
The following are the managerial functions (viz. planning, organising, directing and controlling) performed by a personnel department: 

A. 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.

B. Organising:

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.

C .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,

D. 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.

2. Operative Functions:

The operative functions of the Personnel Department are also called service functions. These include.
(a) Procurement function
(b) Development
(c) Promotion, transfer and termination function
(d) Compensation function
(e) Welfare function
(f) Collective bargaining function
(g) Miscellaneous functions.
These functions of the personnel Department are discussed below: 

(1) Procurement:

It includes:
(a) Recruitment i.e., tapping the possible sources from where prospective labour supply will come.
(b) Getting information regarding prevailing wage rates and job requirements.
(c) Selecting the best candidate by following a systematic selection procedure.
(d) Maintaining the records of employees.
(e) Introducing the new employee to the officers of the other departments such as Security Officer, Time Keeper, and Cashier etc.

(2) Training or Development Function:

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:
(a) Training to new employees, instructors and supervisors.
(b) Training in safety equipments and various policies of companies.
(c) Training through improvement of education such as evening classes, films, Entertainment programmes etc.
(d) 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.
The functions of the Personnel Department in this regard are given below:
(a) To lay down a promotion policy.
(b) To formulate policies regarding transfer and termination.
(c) 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:
(a) To evaluate jobs and determine their worth in terms of money.
(b) To collaborate with those who formulate wage plans.
(c) To assist in formulation of policies regarding pension plans, profit sharing programmes, non-monetary benefits, etc.
(d) 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:
(a) Provision of medical facilities such as first aid, dispensaries, etc.
(b) Suggesting ways and means by which accidents can be eliminated or minimised.
(c) To make provisions for restaurants and other recreational facilities.
(d) To apply the labour laws effectively.
(e) To publish a plant magazine.

(6) Collective Bargaining:

It includes:
(a) To assist in the negotiations which are held with the union leaders?
(b) To know the grievances of employees and following their problems properly.

(7) Miscellaneous:

(a) To advise the line managers regarding administration of personnel policies.
(b) To secure co-ordination of all personnel activities.
(c) To have an effective communication system.
(d) To provide good working conditions.
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.
ORGANISATION OF PERSONNEL DEPARTMENT:-
Organization process:- The organisation process is the forming of structural interpersonal relationship. 
The need for organization of personnel department :
1.To determine organizational goals or objectives.
2.To determine  the task requirements.
3. For Division of tasks into different jobs to find out how many personnel will be needed for the complete tasks.
4. For Integration of jobs into departments or other work groups to take advantage of the specialization and efficiency.
5.For selection of personnel to fill jobs.
6. For the assignment of work position to the individuals.
7. For granting the authority to the people to carry out the duties of their jobs and
8.For the determination of superior subordinate relationship.
Personnel policies and procedure:-
    A policy means plan of action.  So that planning and policymaking are same.  A personnel policy” formulate, redefine break into details and decide a number of actions “ that govern the relationship with employees in attainment of the organization objective.
Personnel policies are (i) The key stone in the arch of management and the life-blood for the successful functioning of the personnel management without which there is no improvement.
(ii)It is statements of intension indicating specifically what the organization proposes to do.
(iii)A positive declaration and a command to an organization.  They translate the goals of an organization into selected routes and provide general guidelines.
AIMS AND OBJECTIVES OF PERSONNEL POLICIES:-  The aims of personnel policies should be
(i)To enable an organization to fulfill or carry out the main objectives.
To ensure that its employees are informed of these items of policy and to secure their co-operation for their attainment.
(ii)To ensure that is its employees are informed of these items of policy and to secure their co-operation for their attainment.
(iii)To provide procedures to employees to develop a sincere sense of unity with the enterprise.
(iv)To provide, adequate competent and trained personnel for all levels.
(v)To protect common interest of all the parties.
(vi)To provide for a consultative participation by employees in the management of an organization and the framing of conditions for this participation.
(vii)To provide an efficient consultative service which aims at creating mutual faith among these who work in the enterprise.
(viii)To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers.
(ix)To provide security of employment to workers so that they may not be distracted by the uncertainties of their future.
(x)To provide an opportunity for growth within organization.
(xi)To provide for the payment of fair and adequate wages and salary so that their healthy-co-operation may be ensured.
(xii)To recognize the work and accomplishments of the employees by offering non-monetary incentives.
NEED FOR PERSONNEL POLICY:-
(i)The basic need and requirements of both an organization and its employees require deep through.  The management is required to examine its basic convictions as well as give full consideration to practices in other organization.
(ii)Established policies ensure consistent treatment of all personnel throughout an organization.
(iii)A certainty of action is assured even though the top management personnel may change.
(iv)As they specify routes towards selected goals, policies serve as standards or measuring yards for evaluating performance.
(v)Sound policies help to build enthusiasm and loyalty.
(vi)They set patterns of behaviour and permit participants of plans with a grater degree of confidence.
(vii)Policies ensure consistency and uniformity in decisions on problems that recur frequently ad under similar but not identical circumstances.
Principles of personnel policies:-
(i)                 Place right man in fight place.
(ii)               Train everyone for the job to be done
(iii)             Make the whole organization a co-ordinate team.
(iv)             Supply the fight tools and the right conditions of work.
(v)               Give security with opportunity, incentive, recognition.
(vi)             Look a head, plan a head for more and better things.
ESSSENTIAL CHARACTERISTICS OR TESTS OF A SOUND PERSONNEL POLICY:-
(i)                 It should be definite, positive, clear and easily understood by everyone in the organization.
(ii)               It should be written in order to preserve it against informal oral orders.
(iii)             It must be reasonably stable but not rigid and should be periodically reviewed.
(iv)             It must be supplementary it the over-all policy of an organization to avoid conflict between organization policy and departmental policy.
(v)               It should indicate that the management knows that workers preferred to deal with the management knows that workers preferred to deal with management on individual base.
(vi)             It should recognize the desire of may workers for recognition as groups in many of their relationship.
(vii)           IT should be formulated with due regard for the interest of all concerned parties i.e., the employer, employee and the public community.
(viii)         It should be the result of careful analysis of all the available facts.
(ix)             It must provide a two-way communication system between the management and the employees.
(x)               It should be consistent with the public policy.
(xi)             It should be generally know to all interested parties.
(xii)           It must have support of the management and the co-operation of employees.
(xiii)         Trade unions must be consulted in matter of industrial relations before evolving the policy.
(xiv)         Policy should be progressive and enlightened.
(xv)           It must make measurable impact especially in 3R’s of personnel management
(i)                 Recruitment
(ii)               Retainment
(iii)             Retirement
(xvi)         It should be uniform throughout the organization, though in the case of local conditions slight changes can be made.
(xvii)       It should have a sound base in appropriate theory and should be translated into practice.
ORIGIN AND SOURCE OF POLICIES:-
1.    The past practices of an organization.
2.    The prevailing practices among sister concern in neighbor hood.
3.                                                        3.  The attitude, ideas and philosophy of the board of directors, top management ,middle  and lower mgt.
4.    The knowledge and experience that is gained from day to day problem.
5.    Employee suggestion and complaints.
6.    Collective bargaining programmes.
7.    State and national legislation.
8.    Change in country’s economy.
9.    The culture of planed and its technology.  Its business environment, its social and political
10.   Environment.
11.   The extent of unionism.
12.   The attitude and social value of labour.
13.   The goals of the organization.
TYPES OF PERSONNEL POLICIES:-
     According to juices there are two types of personnel policies
1.      Functional or organizational policies
2.      Centralized policies
Functional policies are those, which are concerned with different categories of people.
Centralized policies are framed for companies with several locations.  They are formulated at the head office and apply through out the organization.
Policies may be divided into major or minor policies.
Major policies are concerned with overall objective of the organization, procedure and control that affect the whole organization.
Minor policies cover relationship in a segment of an organization with the considerable emphasis of details and procedure.
  The classification of personnel policies may be based on source of description
i.                    Originated policies.
ii.                  Implied policies
iii.                Externally imposed policies.
The government decides that no one should work below a specific minimum.
2.Classification o basis of description
  • This may be general or specific.
  • General policies are those which describe the philosophy of top management.
  • Specific policies on the other hand relate to specific issues.  There may be separate specific policies on staffing, compensation , collective bargaining etc.,
Mechanism or process of formulating personnel policy:-
  1. Identification of a problem area or situation in which decisions of a similar repetitive nature are involved and a draft should be prepared called as policy draft.
  2. Circulate its copies among all those who may be expected to operate under it after obtaining  criticism and suggestion based upon it second draft is framed.
  3. To undertake a periodic, review, evaluation and revision of policies.
The steps necessary in framing policy are
(i)                 Initiating a policy
(ii)               Uncovering of facts by personnel department
(iii)             Recommending a policy to top management of obtaining the view of all concerned.
(iv)             Putting down a policy in writing
(v)               Explaining and discussing the proposed policy with the members of the organization.(vi)Adopting and launching it.(vii)Communicating to employees at all lever(viii)Administering it (ix)Evaluating it   & Restating or reformulating policy.
     Personnel policies should be in writing to make uniformity in application, minimize partiality and discrimination, earn the loyalty  of employees and limits the freedom of action on the part of management.  They also form concrete base of appeal in case of dispute.
PROCEDURE AND PROGRAMME:-
    A policy indicates what and why. Procedure indicates how to do the particular work.

  1. It gives in detail the methods processes movements and specific rules and regulations.  It also indicates the steps, time place and personnel responsible for it.
  2. It helps to clarify what is to be done in particular circumstances.
  3. IT is less general than policies and more specific.
  4. It enables an organization to maintain control since they assign specific obligation to staff for their performance.

No comments:

Post a Comment