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  • 1. Personnel ManagementDefined as the management function that helps managers in theprocurement, development, compensation, integration, maintenance andseperation of human resources so as to accomplish individual, functional,organisational and societal objectives.Objectives Primary- Ensuring the availability of competent and willing workforce tothe organisation Secondary-1. Personal2. Functional3. Organisational4. Societal
  • 2. 1. Personal Objectives- Assisting employees in achieving their personal goals- Done by retaining and motivating employeesSupporting functions Training & Development Performance Appraisal Compensation Placement2. Functional Objectives- Assisting each department to contribute at the level appropriate to theorganisation needsSupporting functions Performance Appraisal Placement
  • 3. 3. Organisational Objectives- To recognise the role of HR department in bringing about Organisational efffectivenessSupporting functions Human Resource Planning Employee Relations Selection Training & Development Performance Appraisal4. Societal Objectives- To meet the needs and challenges of the society while minimising the negativeimpact upon the organisationSupporting functions Maintain legality in every action Giving proper benefits Maintain good Union-Management relation
  • 4. Personnel Management Vs Human Resource ManagementSl No. Charateristics PM HRM1 Employee Contract Careful practice of Go beyond Contractwritten contract2 Management Action Based on procedures Based on business needs3 Managerial Task Monitoring Nurturing4 Management Skill Negotiation Facilitation5 Respect for employees Low Greater(treated as tools/m/cs) (treated as assets)6 Key Relations Labour Management Customer
  • 5. Personnel Management Vs Human Resource Management Cont..Sl No. Charateristics PM HRM7 Job Design Division of Labour Teamwork8 Job Categories Many Few9 Pay Based on Grades/ Based on PerformanceExperience10 Communication Indirect Direct11 Speed of Decision Slow Fast12 Management Role Transactional Transformational13 Conflict Handling Try to reach temporary Manage Climate &truce Culture
  • 6. Human Resource Management FunctionsCategorised as1. Managerial2. Operative3. AdvisoryManagerial functions include: Planning - refers to the determination of short to long range plans to accomplishorganisational goals and objectives and formulation of policies to achieve them Organising – Determination and development of organisational structure and allocationof jobs according to predetermined plans Staffing – Process by which managers select, train, promote and retire theirsubordinates Directing – Process of activating group efforts to achieve desired goals Controlling – Process of setting standards of performance, checking to see how actualperformance compares with set standards
  • 7. Operative FunctionsProcurement Development Compensation Integration MaintenanceJob AnalysisHRPRecruitmentSelectionPlacementInductionTransferPromotionSeperationPerformanceAppraisalTrainingCareerPlanning &DevelopmentExecutiveDevelopmentJob EvaluationWage & SalaryAdministrationBonus &IncentivesPayrollMotivationJobSatisfactionGrievanceRedressalCollectiveBargainingConflictManagementDisciplineSafetySocial SecurityWelfareSchemesPersonnelRecordPersonnelResearchPersonnelAuditHealth
  • 8. Advisory FunctionsInclude:1. Giving advise to top Management2. Giving advise to functional heads
  • 9. Human Resource PrinciplesPrinciple refers to the fundamental truth established by research, investigation andanalysisHR principles helps HR managers in formulating policies, programmes,proceduresand practices of Human ResourcesInclude:1. Principle of individual Development- Offering equal opportunities to every employee to realise his /her fullpotential2. Principle of Scientific Selection- Selection of right person for the right job3. Principle of free flow of Communication- HR dpt should maintain/keep all channels of communication includingopen, upward, downward, horizontal, formal and informal ways
  • 10. Human Resource Principles Cont…4. Principle of Participation- Include employee representatives at every level of decision making5. Principle of fair remuneration- refers to the fair and equitable wages and salaries commensurating with jobs6. Principle of Incentive- Recognise and reward for good performance7. Principle of Dignity of Labour- Treating every job and every job holder with dignity and respect
  • 11. Human Resource PoliciesPolicies refers to a plan of action that guides managerial decisions. Should be specific and commits management to a definite course of actionInclude:1. Policy of hiring people with due respect to factors like reservation, maritalstatus and gender2. Policy on terms and conditions of employment including compensation, hours ofwork, overtime, promotion, transfer, layoff3. Policy with regard to medical assistance like sickness benefits, ESI, companymedical benefits4. Policy regarding housing, transport, uniform5. Policy regarding training and development which explains its need, methods andfrequency6. Policy regarding industrial relations which include trade union recognition,collective bargaining, grievance procedure, participative management andcommunication with workers
  • 12. Human Resource Policies- Advantages Ensure consistent treatment to all personnel discretion like favouritism anddiscrimination in the company Serve as standard of Performance Help to build employee, motivation and loyalty Helps to resolve interpersonal, intrapersonal and intergroup conflicts Continuity of action is assured even though there is a change in topmanagement
  • 13. Factors to be considered in framing HR Policies Past practice in the Organisation Prevailing practice in the competitor/ rival companies Attitudes and Philosophy of the founders of the company and the topmanagement Knowledge and experience gained through handling personnel problems inthe company
  • 14. Changing Role of Personnel Management in IndiaPersonnel Management has been changing dramatically over the last centuryEnd of 19thCentury - 1920 Personnel Management concept was not thereRoutine Organisational HR activities werehandled by welfare officers/welfare secretariesConcentrates mainly on the welfare of Women & Children
  • 15. Changing Role of Personnel Management in India Cont…Period Development Stage Feature Emphasis Status1920s-1930s Beginning stage Capitalistic Statutory, Clericalmentality Welfare1940s-1960s Growing stage/ Technical, Introduction AdministrativeStruggling for recognition Legal ofnew techniques1970s- 1980s Achieving Sophistication Professional, Regulatory, ManagerialLegal Imposition ofstandards onother function1990s- Promising Philosophical Human values, ExecutiveProductivitythrough people
  • 16. HR Managers Function Provide individual development to the Organisation with skilled workforcefor all levels Devising suitable training programmes for transference and development ofindividual skills to suit changes in working patterns Structuring procedures for recruitment, training, placement, promotions andmovements with in the industry Provide employee services for matters concerning health, work relatedfacilities, welfare services etcTransformation of HR Managers functionManagement of HR Development and Maintenance ofOrganisational Effectiveness
  • 17. HR Managers RolePrimary - Interpreting the progressive needs of the organisation anddirect potential towards a common goalSecondary1. Collective Bargaining Role –Centered around dealing with trade unions which might be added to thedevelopment of strategies for handling Industrial relations2. Implementation of legislation Role-Implying, understanding and implementing the growing amount oflegislation
  • 18. HR Managers Role Cont…3. Bureaucratic Role-Implementating a series of rules about behaviour at work, dealing withrecruitment, managing absenteeism4. Social conscience of the business Role –Refers to welfare functions with regard to society5. Performance Improvement Role-About integrating personal function with businesss needs
  • 19. Competencies needed for an HR Manager Should be a master in the decision science of HRShould have good knowledge about Constitution, Govt’s labour policy,General economic condition prevailing in the country Capability to understand and manage peopleShould be sympathetic and have concern towards employees demandsShould be fair in the matters of promotions, demotions, transfer, layoffShould be firm in enforcing discipline Capability to create and adapt with new culture/mindsetShould be tactful & resourceful Responsive to social expectationShould be socially committed by undertaking activities that comes under socialresponsibility Ability to express himself or herself