Human resource-management book @ bec doms bagalkot mba

1. 1
Human-Resource-Management
BSPATIL

2. 2
HUMAN RESOURCE MANAGEMENT
Unit – I
Human Resource Management – Definition – Objects and functions – Role and structure of personnel
function in organizations – Personnel principles and policies.
Unit – II
Human Resource Planning – Characteristics – Need for planning – HRP Process – Job analysis – Job design –
Job description – Job specification
Unit – III
The Selection Process – Placement and induction – ‘Training and development – Promotion – Demotions –
Transfers – Separation
Unit - IV
Wage and Salary Administration – Factors – Principles – Compensation plan – Individual – Group –
Incentives – Bonus – Fringe benefits – Job evaluation – Wage and salary administration in relation to personal
taxation.
Unit – V
Employee Maintenance and Integration – Welfare and safety – Accident prevention – Administration of
discipline – Employee motivation – Need and measures
Unit – VI
Personnel Records/Reports – Personnel research and personnel audit – Objectives – Scope and importance.
BSPATIL

3. 3
UNIT – I
HUMAN RESOURCES MANAGEMENT – AN INTRODUCTION
Management of Men is a Challenging job.
In any organisation, “The management of Man” is a very important and challenging job; It is important
because it is getting a job done, not of managing but of administering a social system. The management of men is a
challenging task because of the dynamic nature of the people. People are responsive; hey feel, think, and act,
therefore, they cannot be like a machine or shifted and altered like a template in a room layout. They, therefore, need
a tactful handling by management personnel. If manpower is properly utilized, it may prove a dynamic motive force
for running an enterprise at its optimum results and also work as an excellence output for maximum individual and
group satisfaction in relation to the work performed.
Manpower management is a most crucial job because “managing people is the heart and essence of being a
manager.” It is concerned with any activity relation to human elements or relations in organisatoin. Material elements,
however, are beyond its domain. This view has been rightly summed up by J.M. Deitz (of Chicago). He observes: “A
business or an industry can be thought of as an inter-weaving of human elements and material elements, with the
human elements as the warp; while inter-locking and inter-weaving with this element are the material elements – the
woof of the fabric. The wrap of the fabric is the human element appearing and reappearing, strength giving element
holding the entire fabric together, and giving it life and a character of continuity.” A business cannot succeed if this
human element is neglected.
Importance of Human Resources Management
Yodder, Heneman had discussed about the importance of human resource management from three
standpoints, viz, social, professional and individual enterprise.
(A) Social Significance: Proper management of personnels, enhances their dignity by satisfying their social
needs, this it does by: (a) maintain a balance between the jobs available and the jobseekers. According to
the qualifications and needs; (b) providing suitable and most productive employment, which might bring
them psychological satisfaction; (c) making maximum utilization of the resource in an effective manner
and paying the employee a reasonable compensation in pro portion to the contribution made by him; (d)
eliminating waste or improper use of human resources, through conservation of their normal energy and
health; and (e) by helping people make their won decisions, that are in their interests.
(B) Professional Significance: By providing healthy working environment it promotes team work in the
employees. This it does by: (a) maintaining the dignity of the employee as a ‘human-beings’ (b)
providing maximum opportunities for personnel development; (c) providing healthy relationship between
different work groups so that work is effectively performed (d) improving the employee’s working skill
and capacity; (e) correcting the errors of wrong postings and proper reallocation work.
(C) Significance for Individual Enterprise: It can help the organisatoin in accomplishing its goals by; (a)
creating right attitude among the employees through effective motivation; (b) utilizing effectively the
avail able human resources; and (c) securing willing co of the employees for achieving goals of the
enterprise and fulfilling their own social and other psychological needs of recognition, love, affection,
belongingness, esteem and self-actualization.
HUMAN RESOURCES MANAGEMENT – DEFINITIONS
BSPATIL

4. 4
Walton (1985), have attempted to define the Human Resource Management as, it is process of stresses
mutually between employers and employees in following ways:
Mutual goals, mutual influence, mutual respect, mutual rewards, mutual responsibility. The theory is that policies of
mutuality will elicit commitment which in turn will yield both better economic performance and greater human
development.
Beer and Spector (1985) emphasized a new set of assumptions in shaping their meaning of HRM.
• Proactive system wide interventions, with emphasis of ‘fit; linking HRM with strategic planning and cultural
change.
• People are social capital capable of development.
• Coincidence of interest between stakeholders can be developed.
• Seek power equalization for trust and collaboration.
• Open channel of communication to build trust and commitment
• Goal orientation
• Participation and informed choice.
Objectives of Human Resources Management
One of the basic principles of management is that: all the work performed in an organisatoin should, in some
way, directly or indirectly contribute to the objectives of that organisation. This means that the determination of
objectives, purposes or goals is of prime importance and is a prerequisite to the solution of most management
problems. Objectives are pre determined ends or goals at which individual or group activity in an organisatoin is
aimed. The formations of the objectives of an organisation is necessary for the following reasons:
i) Human beings are goal-directed. People must have a purpose to do some work. Announced organizational
goals invest work with meaning.
ii) Objectives serve as standards, against which performance is measured.
iii) The setting of goals and their acceptance by employees promotes voluntary co-operation and co-ordination,
self-regulated behavior is achieved.
iv) The objectives stand out as guidelines for organsiational performance . They help in setting the pace for
action by participants. They also help in establishing the “character” of an organisatoin. Ralph C, Davis has
divided the objectives of an organisatoin into two categories: (a) Primary objectives, and (b) Secondary
objectives.
a. Primary objectives, in the first instance, relate to the creation – and distribution of some goods or ser ices.
The Personnel Department assists those who are engaged in production, in sals, in distribution and in
finance. The goal of personnel function is the creating of a work force with the ability and motivation to
accomplish the basic organizational goals. Secondly, they relate to the satisfaction of the personal
objectives of the members of an organisatoin through monetary and non-monetary devices. Monetary
objectives include profits for owners; salaries and other compensation for executives; wages and other
compensation for employees; rent for the landowners and interest for share/stock-holders. Non-monetary
objectives include prestige, recognition, security, status, or some other psychic income. Thirdly, they
relate to the satisfaction-of community and social objectives, such as serving the customers honesty
promoting a higher standard of living in the community, bringing comfort and happiness to society,
protecting women and children, and providing for aged personnel.
BSPATIL

5. 5
b. The secondary objectives aim at achieving the primary objectives economically, efficiently and
effectively.
The fulfillment of the primary objectives is contingent upon:
(i) The economic need for, or usefulness of, the goods and services required by the community/society.
(ii) Conditions of employment for all the members of an organisatoin which provide for satisfaction in
relation to their needs, so that they may be motivated to work for the success of the enterprise.
(iii) The effective utilization of people and materials in productive work.
(iv) The continuity of the enterprise.
According to the American Management Association, the objectives of personnel administration may be laid down
as follows:
(i) To achieve an effective utilization of human resources in the achievement of organisation goals.
(ii) To establish and maintain an adequate organizational structure and a desirable working relationship
among all the members of an organisatoin by dividing of organisatoin tasks into functions, positions,
jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation
with other jobs/personnel in the organisatoin.
(iii) To secure the integration of the individuals and groups with an organisatoin, by reconciling
individual/group with those of an organisation in such a manner that the employees feel a sense of
involvement,m commitment and loyalty towards it. In the absence of an integration, friction may
develop in an organisation. Which may lead to its total failure. Friction produces inefficiency.
Friction may result from political aspirations, from difficulties in communication, and from faults
inherent in a particular organizational structure. The behaviour of individuals and groups in any
organisation also involved frictions- personal jealousies and prejudices and idiosyncrasies,
personality conflicts cliques and factions favoritism and nepotism.
(iv) To generate maximum individual / group development within an organisatoin by offering
opportunities for advancement to employees through training and job education or by effecting or by
offering retraining facilities.
(v) To recognize and satisfy individual needs and group goals by offering an adequate and equitable
remuneration, economic and social security in the form of monetary compensation, and protection
against such hazards of life as illness, old age, disability, death, unemployment etc., so that the
employees may work willingly and co-operate to achieve an organization’s goals.
(vi) To maintain a high morale and better human relations inside an organisation by sustaining and
improving the conditions which have been established so that employees may stick to their jobs for a
longer period.
Pre-requisites for the Achievements of the Objectives
Setting up the objectives of an organisation may be the fullest contribution of human resources management
for the achievement of the organisatoin of long and short term plans and of the operations of the organisation in an
environment of high morale and vitality consistent with profit ability and social milieu with the ethical values of
society and with the policies and regulations established by the country’s legislature.
To achieve these objectives, the following pre-requisites must be satisfied:
BSPATIL

6. 6
i. Capable people should be picked upon the basis of the qualifications fixed.
ii. Individual and group efforts/potentialities must be effectively utilized by providing suitable work
opportunities, tools and raw materials, by showing an appreciation of work well done, and by offering better
chances for future advancement and training.
iii. Willing co-operation of the people to achieve the objectives must be available by creating such feelings as
“people work with us” rather than saying that “people work for us”
iv. The tasks of an organisatoin should be properly divided in accordance with a sound plan into functions and
positions, each indicating clear-cut authority, responsibility and duties, as also the relationship of the position
with another.
v. The goals to be achieved should be specially made known to all concerned in the language best understood by
them. Specificity and clarity are both important in defining the objectives. The objectives should also be
comprehensive.
vi. Since objectives have to be shared by many senior persons in an organisation, a wide-scale enquiry and
consolation should be undertaken before their formulation and efforts should subsequently be made to
develop a common understanding of the objectives among managers at various levels.
vii. The objectives should be clearly defined, failing which a great deal of confusion may-arise. Without clear-cut
objectives, the management of organizational records cannot be kept in balance, and the management of one
section may interfere with that of another. Moreover, without clear-cut objective, there can be – not standards
by which to evaluate the performance of an individual or that of the whole organisation. Again, an absence of
objectives often leads to organizational disaster. On the other hand, the refining or revising of objectives is
the most fundamental task of all managers at all levels.
viii. Suitable monetary and non-monetary incentives, in the form of adequate and reasonable pay-packets, service
benefits and security against hazards of life and of employment and against the arbitrary actions of
supervisors should be to employees. A properly prepared grievance handling procedure and disciplinary plan
should also be available.
PERSONNEL FUNCTION IN ORGANISATION
Function of personnel management is the process of management of human resources in an organisation and
is concerned with the creation of harmonious working relationships among its participants and bringing about their
utmost individual development. Such management is concerned with leadership in both groups and ‘individual
relationship’ and ‘labour relations’ and ‘personnel management’. It effectively describes the process of planning and
directing the application, development and utilization of human resource in employment. In fact, personnel
management undertakes all those activities which are concerned with human elements or relations as well as with
material elements in an organisation. Whatever functions are listed therein, the main objectives of these function is to
bring together expertise in a scientific way and to create attitudes that motivate a group to achieve its goals
economically, effectively and speedily.
CLASSIFICATION OF FUNCTIONS
Various philosophers and experts have generally classified the functions into two major categories, viz.,
managerial functions and operative functions. Others have classified functions as general and specific functions, and
yet others as ‘personnel administration functions’ and ‘Industrial Relation Functions’. Functions have also been
classified on the basis of the capacities, or on the basis of authority.
This types of classification of functions has been discussed as below:
(a) The General and Specific Functions
BSPATIL

7. 7
The ‘General’ type of functions, in the personnel management is required the following steps: (i) to conduct
personnel research, (ii) to assist in the programmes of personnel administration (iii) to develop a competent work
force, and (vi) to establish and administer varies personnel services delegated to personnel department’
(b) Personnel Administration & Industrial Relations Functions
Personnel administration functions relate to the functions of managing people from the lower to the upper
level of the organisatoin and embraces policy determination as well as implementation of policies by the personnel at
the lower levels. Accordingly, “personnel administration” refers to “creating, developing and utilizing a ‘work group’
involves all types of inter of inter-personnel relationships between superiors sub-ordinates”.
The ‘Industrial Relations’ functions, on the other, are “not dire related to the function of ‘managing people’,
but refer to interactions between the management and the representatives of the unions”. Such functions involve all
activities of employer-employee relationship, such as organisation of the union members, negotiation of contracts,
collect bargaining, grievance handling, disciplinary action, arbitration, etc., the purpose of all these being to prevent
conflict between the particulars.
(c) Functions Classified on the Basis of Capacities
Saltonstall suggests two approaches for the development of Line officiates, viz., (a) the “reductive” or “threat
approach”; and
(b) the “augmentative” or “source of help” approach. The latter approach is more close to “behavioral approach to
management.”
Thus, according to him:
 The typical staff function are indirectly related to action and characterized by development, consultation,
planning, interpretation, evaluation, diagnosis, research, investigation and recommendation and
 The typical line functions are related to command action and characterized by direction, control, decisions,
enforcement, application, performance and instruction.
(d) Functions According to the Degree of Authority
Dale Henning and French made an interesting observation that “The personnel man is described in the text
books and journals is like ‘Abominable Snowman’ much talked bout but seldom seen.” They have classified his
functions in to three categories thus:
(a) Area of maximum authority, e.g., direction of payroll calculations, orientation procedure,
transfer rules, etc.
(b) Area of combined use of authority and persuasion, e.g., establishment of disciplinary
procedure, inter-departmental data gathering, determining the number of participants in a
training programmes, etc; and
(c) Area of maximum persuasion, e.g., salary changes under the rules of the plant, employment of
individuals recommended by the personnel department in other departments, initiating
disciplinary action, etc.
The functions generally classified as
(1) Managerial functions, and
(2) Operative functions.
1. Managerial Functions
BSPATIL

8. 8
“Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel
managing a business: ‘managing managers and managing workers and the work S Lawrence Appley says that
“Management is the accomplishment of results through the efforts of other people”. In the opinion of Harold
Koontz, “It is the art of getting things done through people and with informally organized groups.
In their view, management may be thought of as the process of allocating an organisatoins inputs
(human and economic resources) by planning, organizing, directing and controlling for the purpose of
producing outputs (goods and services) desired by its customers so that organisation job objectives are
accomplished in the process, work is performed with and through organisatoin personnel in an ever changing
business environment.
(a) Planning is a pre-determined course of action. According to Allen, “it is a trap laid to capture the future”
Terry is of the View that “planning is the foundation of most successful actions of any enterprise.” Planning
is the determination of the plans, strategies, programmes, policies, procedures, and standards needs to
accomplish the desired organisatoin objectives in fact, “planning today avoids crisis tomorrow.”
(b) Organizing: After a course of action has been determined, an organisation should be established to carry it
out. According to J.c. Massie, “An organisation is a structure, a framework and a process by which a
cooperative group of human beings allocates its tasks among its members, identifies relationships and
integrates its activities towards common objectives.” In the words of Drucker: “The right organizational
structure is the necessary foundation; without it, the best performance in all other areas of management will
be ineffectual and frustrated.”
(c) Directing (motivating, actuating or commanding) the subordinates at any level is a basic function of the
managerial personnel. According to McGregor, “many managers would agree that the effectiveness of their
organisatoin would be at least doubled if they could discover how to tap the unrealized potential present in
their human resources”
(d) Coordinating and Controlling. Coordinating refers to balancing timing and integrating activities in an
organisation, so that a unity of action in pursuit of a common purpose is achieved. In the words of Terry, “Co-
ordination deals with the task of blending efforts in order to ensure a successful attainment of an objective.”
(e) Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the
plan that has been adopted, the instructions issued and the principles established. It is greatly concerned with
actions and remedial actions. “it is not just score-keeping. It is not just plotting the course and getting location
reports; but rather it is steering the ship.”
2. Operative Functions
The operative functions of personnel management are concerned with the activities specifically dealing with
procuring, developing, compensating, and maintaining an efficient work force. These functions are at known as
service functions.
(a) The procurement function is concerned with the obtaining of a proper knd and number of personnel
necessary to accomplish an organisation’s goals. It deals with specifically with such subjects as the
determination of manpower requirements, their recruitment, selection and placement (comprising activities to
screen and hire personnel, including application forms psychological tests, interviews, medical check-up,
reference calling), induction, follow-up, transfers, lay-offs, discharge and separation, etc.
(b) The development function is concerned with the personnel development of employees by increasing their
skill through training so that job performance is properly achieved. Drafting and directing training
programmes for all levels of employees, arranging for their on-the-job, office and vestibule-training, holding
seminars and conferences, providing for educational and vocational counselling and appraising employee
potential and performance are undertaken under this function.
(c) The compensation function is concerned with securing adequate and equitable remuneration to personnel
BSPATIL

9. 9
for their contribution to the attainment of organizational objectives. Functions related to wage surveys,
establishment of job classifications, job descriptions and job analyses, merit ratings, the establishment of
wage rates and wage structure, wage pans and policies, wage systems, incentives and profit-sharing plans etc.,
fall under this category.
(d) Integration function After the employee has been procured, his skill and ability developed and monetary
compensation determined, the most important, yet difficult of the personnel management is to bring about an
“integration” of human resources with organisatoin, and to cope with inevitable conflicts that ensue.
“Integration” is concerned with the attempt to effect a reasonable reconciliation of individual, societal, and
organisation interests.
(e) The maintenance function deals with sustaining and improving the conditions that have been established.
Specific problems of maintaining the physical conditions or employees (health and safety measures) and
employ service programmes are the responsibility of the personnel department.
Flippo rightly says: “The purpose of all of these activities is to assist in the accomplishment of the organization’s
basic objectives. Consequently, the starting point of personnel management as of all management must be a
specification of those objectives and a determination of the sub-objectives of the personnel function: The expenditure
of all funds in the personnel departments can be justified only in so far as there is a net contribution toward company
objectives.”
CLASSIFICATIONS OF PERSONNEL FUNCTIONS
Below are give some important classifications of personnel functions made by experts in the field:
Yoder’s Classification: According to Yoder, in a typical industrial relations and personnel department, the
principal activities of manpower management are:
i) Setting general and specific management policy for relationships and establishing and maintaining a suitable
organisatoin for leadership and co-operation.
ii) Collective bargaining, contract negotiations, contract administration and grievances.
iii) Staffing the organisation, finding, getting and holding prescribed types and number of workers.
iv) Aiding the Self-development of employees at all levels, providing opportunities for personnel development
and growth as well as for requisite skills and experience.
v) Incentivating, developing and maintaining motivation for work.
vi) Reviewing and auditing manpower management in an organisatoin.
vii) Industrial relations research, carrying out studies designed to explain employment behaviour and thereby
effecting improvements in manpower management.
Yoder and Nelsons’ Classification: On another occasion, on the basis of an enquiry regarding descriptions of 984
employee-relations jobs conducted in 189 companies. Dale Yoder and Robert J. Nelson classified seven functional
categories as follows:
i. Departments Administration Programme: Planning, report preparing, policy formulation and general
administration.
ii. Employment and Placement: Recruitment, selection, placement, orientation, personnel rating, job analysis
and description.
iii. Training – Induction, on-the-job training, supervisory training and management development.
BSPATIL

10. 10
iv. Collective Bargaining: Contract negotiation, contract administration and grievances.
v. Wage and Salary Administration, Job evaluation, wage and salary surveys.
vi. Benefits and Services: Insurance, health, hospitalization, medial care, and retirements plan administration.
vii. Personnel Research: Continuing studied of all employee relations policies, programmes and practices.
Northcott’s Classification: After referring to three types of approach to the task, viz., (a the welfare’ approach, (b)
the scientific management influence the industrial relations emphasis, Northcott gives the functions of personnel
management thus: 1. Employment; 2. Selection and Training; 3. Employee Services, 4. Wages; 5. Industrial
Relations; 6. Health and Safety Education; and 7. Education.
Scott, Clothier & Spriegels’ Classification: Scott, Clothier and Spriegel divide the functions of the personnel
management into these specific categories, namely: (i) Employment; (ii) Promotion, transfer termination, demotions,
and separations; (iii) Formulation and direction of training programmes; (iv) Job analysis and evaluation; (v)
Remuneration and incentives; (vi) Health and Sanitation; (vii) Safety and institutional protection; (viii) Financial aids
to employees; (ix) Employee service activities; (x) Research, record keeping, reports and follow-up; (xi) Employee-
employer and community cooperation; and (xii) Labour union contracts and co-operation.
Kindall’s Classificatoin: A.F. Kindall prescribes the following functions for the personnel management:
(i) To aid in the development of general overall management policies and methods, in the organisation and
planning of supervisory control, and in the communication of orders, ideas and inquiries.
(ii) To develop throughout the organisatoin an understanding of, and an enthusiasm for, consultative methods
of management with tire objectives of:
a. Improving leadership and supervision; and (b) Obtaining the participation of operating groups and
opportunity for creative analysis and initiative in carrying out their assigned tasks at all levels in the
development and administration of the company’s personnel programme.
(iii) To aid the executive and supervisory organisation in developing (a) clearly written outlines of functions,
authorities, and responsibilities, and (b) simple, workable methods of measurement of their
accomplishments.
(iv) To formulate, in collaboration with the supervisory and executive organisation policies for personnel
administration and to implement those policies approve by the management in accordance with the best
plans and practices of personnel administration.
(v) To make certain, in collaboration with the supervisory and executive personnel, that the company’s
approved policies and practices of personnel administration are executed properly.
(vi) To establish and maintain contacts with labour movement, to keep itself informed and, wherever possible,
to participate in all collective bargaining activities, and to advise all the departments of the company on
the development of sound labor relations.
(vii) To aid in the interpretation of the management’s policies to employees and employees’ point of view and
attitude to the management and, in collaboration with the appropriate line personnel to merchandize the
company and the jobs to employees.
Carey’s Classification: Carey outlines the common functions of the personnel management as: (1) Organisation
for personnel administration; (ii) Administration and supervision; (iii) Employment; (iv) Training employee
development; (v) Wage and salary administration; (vi) Force adjustment; (vii) Relation between employees and
management; (viii) Hours and conditions of works; (ix) Health and safety; (x) Benefits and employee security
matters; (xi) Communication with employees; (xii) Research work; and (xiii) Relations with local business and
community organisation.
BSPATIL

11. 11
Straus’s and Sayles’ Classification: (i) Recruitment, Selection c Placement: (a) Contact with and evaluation of
advertising media, employment agencies, including State employment services, college and school recruiting; (b)
Screening and testing techniques, including physical examination; (c) Assistance for in-company transfer, career
development (d) Assistance for lay-offs and plant closing through job searches for redundant personnel; (e) Labour
market surveys and projection of potential shortages; and (f) Manpower planning, projecting future company needs.
(ii) Job Analysis, job Description and Job Evaluation: (a) Development of methods that will facilitate personnel
placement and assignment of money values to skill and experience, (b) Development of promotional ladders by
means of job analysis; and (c) Position guides for organizational planning and information for new placements.
(iii) Compensation and Appraisal Plans: (a) Design and implementation of personnel appraisal plans; (b) Wage
administration (c) Control of merit increases; (d) Design and installation of incentive and bonus plan and (e)
Administration of deferred compensation plans such as profit sharing and bonus plans.
(iv) Employment Records: (a) Maintenance of job histories, skill inventories and aptitude and education
information; and (b) Maintenance of wage and hour records, output records, overtime, vacation payment incentive
earning.
(v) Employee Benefit Programmes: (a) Administration of life insurance, pension and health and welfare benefits;
(b) Approval of action, disability and compensation payments; (c) Suggestion and saving plans, credit union
administration; (d) Recreation and athletic programmes; (e) Cafeteria, employee clubs; (f) Company medical services,
first aid, preventive medicine; (g) Community referrals (psychiatric, alcoholic), and (h) Counselling service.
(vi) Special Services Safety inspection: (a) Safety plans and controls; (b) Company guards and protection
services, including fire-fighting; (c) Staff reception areas; and (d) Communication services, photography, printing
house organs, policy manuals, new releases and instructional manuals.
FUNCTIONS OF PERSONNEL MANAGEMENT
On the basis of the various functions which the personnel management generally undertakes, the functional areas of
personnel management may be set forth as below:
I. Organizational Planning, Development and Task Specification
II. Staffing and Employment;
III. Training and Development;
IV. Compensation, Wage and Salary Administration;
V. Motivation and Incentives;
VI. Employee Services and Benefits;
VII. Employee Records;
VIII. Labour or Industrial Relations; and
IX. Personnel Research and Personnel Audit.
I. Organizational Planning, Development and Task Specification
“Organizational planning” is concerned with the division of all the tasks to be performed into manageable and
efficient units (departments, divisions or positions) and with providing for their integration. Both differentiation and
integration are vital for the achievement of pre-deter mined goals.
(i) A determination of the needs of an organisation in terms of a company’s short and long-term objectives,
utilization of technology (industrial, engineering, industrial psychology, and mechanical engineering) of
BSPATIL

12. 12
production, deciding about the nature of product to be manufactured, keeping in view the external
environment and public policy.
(ii) The planning, development and designing of an organizational structure through the fixing of the
responsibility and authority of the employees, so that organizational goals may be effectively achieved.
(iii) Developing inter-personal relationship through a division of positions, jobs and tasks; the creating of a
healthy and fruitful inter-personal relationship; and the formation of a homogeneous; cohesive and
effectively interacting informal group.
II. Staffing and Employment
The staffing process is a flow of events which results in a continuous manning of organizational positions at
all levels – from the top management to the operative level. This process includes manpower planning, authorization
for planning, developing sources of applicants, evaluation of applicants, employment decisions, placement induction
and orientation, transfers, demotions, promotions and separations, retirement, lay-off, discharge, resignation,
disability, and death,
(i) Manpower planning is a process of analyzing the present and future vacancies that may occur as a result
of retirements, discharges, transfers, promotions, sick leave of absence, or other reasons, and an analysis
of present and future expansion or curtailment in the various departments. Plans are development of
present employees, for advertising openings, or for recruiting and hiring new personnel with appropriate
qualifications.
(ii) Recruitment is concerned with the process of attracting qualified and competent for different jobs. This
includes the identification of existing sources of the labour market, the development of new sources, and
the need for attracting a large number of potential applicants so that a good selection may be possible.
(iii) Selection Process is concerned with the development of selection policies and procedures and the
evaluation of potential employees in terms of job specifications. This process includes the development of
application blanks, valid and reliable tests, interview techniques, employee referral systems, evaluation
and selection of personnel in terms of job specifications, the making up of final recommendations to the
line management and the sending of offers and rejection letters.
(iv) Placement is concerned with the task of placing an employee in a job for which he is best fitted, keeping
in view the job requirements, his qualifications and personality needs.
(v) Induction and orientation is meant the introduction of an employee to the organisatoin and the job by
giving him all the possible information about the organization’s history, objectives, philosophy, policies,
future development opportunities, products, goodwill in the market and in the community, and by
introducing him to other employees with whom and under whom he has to work.
(vi) Transfer process is concerned with the placement of an employee in a position in which his ability can
be best utilized. This is done by developing transfer policies and proc counselling employees and line
management on transfers and evaluating transfer policies and procedures.
(vii) Promotion is concerned with rewarding capable employees by putting them in higher positions with
more responsibility and hither pay. For this purpose, a fair, just and equitable promotion policy and
procedure have to be developed; line managers and employees have to be advised on these policies,
which have to be evaluated to find out whether they have been successful.
(viii) Separation process is concerned with the serving of relation ship with an employee on grounds of
resignation, lay-off, death, disability, discharge or retirement. Exit interviews of employees are arranged,
causes of labour turnover are to be analyzed and advice is given to the line management on the causes of
and reduction in labour turnover.
BSPATIL

13. 13
A number of device and sub-systems are used in the systems designs to manage the staffing process.
These are:
i) Planning tables and charts;
ii) Application blanks;
iii) Interviews;
iv) Psychological tests;
v) Reference checks;
vi) Physical examination;
vii) Performance reviews; and
viii)Exit interviews
III. Training and Development
It is a complex process and is concerned with increasing the capabilities of individuals and groups so that they may
contribute effectively to the attainment of organizational goals. This process includes:
(i) The determination of training needs of personnel at all levels, skill training employee counselling, and
programmes for managerial, professional and employee development; and
(ii) Self-initiated development activities (formal education), during off-hours (including attendance at school/college/
professional institutes); reading and participation in the activities of the community.
IV. Compensation, Wage and Salary Administration
It is concerned with the process of compensation directed towards remunerating employees for services
rendered and motivating them to attain the desired levels of performance. The components of this process are:
i. Job Evaluation through which the relative worth of a job is determined. This is done by selecting suitable job
evaluation techniques, classifying jobs into various categories and then determining their relative value in
various categories.
ii. Wage and salary programme which consists of developing and operating a suitable wage and salary
programme, taking into consideration certain facts such as the ability of the organisation to pay, the cost of
living, the supply and demand conditions in labour market, and the wage and salary levels in other firms. For
developing a wage and salary programme, wage and salary surveys have to be conducted, wage and salary
rates have to be determined and implemented, and their effectiveness evaluated.
iii. The incentive compensation plan includes non-monetary incentives which have to be developed, administered
and reviewed from time to time with a view to encouraging the efficiency of the employee.
iv. The performance appraisal is concerned with evaluating employee performance at work in terms of pre-
determined norms/ standards with a view to developing a sound system of rewards and punishment and
identifying employees eligible for promotions. For this purpose, performance appraisal plans, techniques and
programmes are chalked out, their implementation evaluated, and report submitted to the concerned
authorities.
v. Motivation is concerned with motivating employees by creating conditions in which they may get social and
psychological satisfaction. For this purpose, a plan for non-financial incentives (such as recognition,
privileges, symbols of status) is formulated; a communication system is developed, morale and attitude
surveys are undertaken, the health of human organisatoin diagnosed and efforts are made to improve human
BSPATIL

14. 14
relations in the organisation. The line management has to be advised on the implementation of the plan and
on the need, areas and ways an means of improving the morale of employees.
V. Employee Services and Benefits
These are concerned with the process of sustaining and maintaining the work force in an organisation. They
include:
(i) Safety provision inside the workshop. For this purpose, policies, techniques, and procedures for the safety
and health of the employees are developed; the line management is advised on the implementation and
operation of safety programmes; training has to be given to first line supervisors and workers in safety
practices; the causes of accidents have to be investigated and data collected on accidents; and the
effectiveness of the safety programmes evaluated periodically.
(ii) Employee counselling is the process through which employees are given counsel in solving their work
problems and their personal problems. The line management has to be advised on the general nature of
the problems which the employees may face from time to time.
(iii) Medical services include the provision of curative and preventive medical and health improvement
facilities for employees, free or otherwise. A periodical medical check-up of employees, training in
hygienic and preventive measures are undertaken.
(iv) The recreational and other welfare facilities include entertainment services like film shows, sports and
games; and housing, educational, transport and canteen facilities, free or at subsidized rates. Suitable
policies and programmes are framed and efforts are made to administer these services satisfactorily. The
effectiveness of such programmes has also to be evaluated.
(v) Fringe benefits and supplementary items are made available to employees in the form of:
a. Old age survivor’s and disability benefits, unemployment and workmen’s compensation;
b. Pensions, gratuities and such other payments as are agreed upon – death benefits, sickness, accident
and medical care, insurance, expenses of hospitalization, voluntary retirement benefits.
c. Paid rest periods, lunch periods, wash-up time, travel time, get – ready time;
d. Payments for time during which not work is done – paid vacation or bonus in lieu of vacation,
payment for holidays, paid sick and maternity leave; and
e. Profit-sharing benefits, contribution to employees’ provident funds, employees educational
expenditure and special wage payments ordered by the courts.
VI. Employee Records
In employee records complete and up-to-date information is maintained about employees, so that these that
that is, the records may be Utilized, if need be, at the time of making transfer/promotions, giving merit pay, or
sanctioning leave.
Such records include information relating to personal qualifications, special interests, aptitudes, results of
tests and interviews, job performance, leave, promotions, rewards and punishments.
VII. Labour Relations
By labour relations is meant the maintenance of healthy and peaceful labour-management relations so that production/
work may go on undisturbed.
(i) Grievance handling policy and procedures are developed, after finding out the nature and causes of
grievances, and locating the most delicate areas of dissatisfaction.
BSPATIL

15. 15
(ii) Rules and regulations are framed for the maintenance of discipline in the organisation, and a proper
system of reward and punishment is developed.
(iii) Efforts are made to acquire a knowledge of, and to observe and comply with, the labor laws of the
country and acquaint the line management with the provisions which are directly concerned with
organisatoin. Collective bargaining has to be developed so that all the disputes may be settled by mutual
discussions without recourse to the law court. Such bargaining negotiating and administering agreement
relating to wages, leave, working conditions and employee employer relationship.
VIII. Personnel Research and Personnel Audit
This area is concerned with:
(i) A systematic inquiry into any aspect of the board question of how to make more effective an
organisatoin’s personnel programmes – recruitment, selection, development, utilization of, and
accommodiation to, human resources;
(ii) Procedures and policies and finding submitted to the top executive.
(iii) Data relating to quality, wages, productivity, grievances absenteeism, labour turnover, strikes, lock-outs,
accidents etc., which are collected and supplied to the top management so that it may review, alter or
improve existing personnel policies, programmes and procedures;
(iv) Morale and attitude surveys.
PERSONNEL PRINCIPLES AND POLICIES
The dictionary meaning of “policy” is a “plan of action” and that “plan” is a policy. Policy and planning are,
therefore, synonymous.
“A policy,” says Flippo, “is a man-made rule of pre-determined course of action that is established to guide the
performance of work to ward the organisatoin objectives. It is a type of standing plan that serves to guide subordinates
in the execution of their tasks.” According to Calhoon Personnel policies constitute guides to action. They furnish the
general standards or bases on which decisions are reached. They furnish the general lies in an organization’s values,
philosophy, concepts and principles.” “Policies are statements of the organization’s over-all purposes and its
objectives in the various areas with which its operations are concerned – personnel, finance, and production marketing
and so on.”
Yoder observes: “A policy is a per-determined, selected course established as a guide towards accepted goals
and objectives… They establish the framework of guiding principles that facilitate delegation to lower levels and
permit individual managers to select appropriate tactics or programmes. In contrast to these, personnel policies are
those that individuals have developed to keep them on the rack towards their personnel objectives. Management
policies are developed by working organisatoins to keep them on course headed and directed toward their
organizational objectives. These define the intentions of the organisatoin and serve as guidelines to give consistency
and continuity to total operations.
Thus, personnel policies refer to principles and rules of conduct which “formulate, redefine, break into details
and decide a number of actions” that govern the relationship with employees in the attainment of the organisation
objectives. Personnel policies are:
(i) The key-stone in the arch of management and the life-blood for the successful functioning of the
personnel management because, without these policies, there cannot be any lasting improvements in
labour management relations;
(ii) The statements of intention indicating and agreement to a general course of actions, indicating
specifically what the organisation proposes to do and, thus, suggests the values and viewpoints which
dominate the organization’s actions; and
BSPATIL

16. 16
(iii) A positive declaration and command to an organisation. They translate the goals of an organisation into
selected routes and provide general guidelines that both prescribe and proscribe programmes which, in
turn, dictate practices and procedures.
Aims and Objectives of Personnel Policies
A management’s personnel policy should have two types of objectives, general and specific. The statement of
general objectives should express the top management’s basic philosophy of human resources and reflect its deep
underlying convictiosn as to the importance of people in an organisatoin and of the management activity which deals
with people. The statement of specific objectives should refer to the various activities of personnel administration
connected with staffing, training, developing, wage and salary administration, motivation, employee services and
benefits, employee records, labour relations and personnel research.
The aims of personnel policies should be/are:
(i) To enable an organisatoin to fulfill or carry out the main objectives which have been laid down as the
desirable minima of general employment policy;
(ii) To ensure that its employees are informed of these items of policy and to secure their co for their
attainment;
(iii) To provide such conditions of employment and procedures as will enable all the employees to develop a
sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective
manner.
(iv) To provide and adequate, competent and trained personnel for all levels and types of management;
(v) To protect the common interests of all the parties and recognize the role of trade unions in the
organisation;
(vi) To provide for a consultative participation by employees in the management of an organisation and the
framing of conditions for this participation, which however shall not take place in technical, financial or
trading policy.
(vii) To provide an efficient consultative service which aims at creating mutual faith among those who work in
the enterprise.
a. By developing management leadership which is bold and imaginative and guided and by moral
values;
b. By effectively delegating the human relations aspects or personnel functions to line managers;
c. By enforcing discipline on the basis of co-operative understanding and a humane application of rules
and regulations; and
d. By providing and a humane application of rules and regulations; and
e.
(viii) To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the
management and the workers, by developing suggestion plans, joint management councils, work
committees, etc., and by performance appraisal discussions;
(ix) To provide security of employment to works so that they may not be distracted by the uncertainties of
their future;
(x) To provide an opportunity for growth within the organisation to persons who are willing to learn and
undergo training to improve their further prospectus;
BSPATIL

17. 17
(xi) To provide for the payments of fair and adequate wages and salary to workers so that their healthy co-
operation may be ensured for an efficient working of the undertaking;
(xii) To recognize the work and accomplishments of the employee by offering non-monetary incentives; and
(xiii) To create a sense of responsibility, on the part of those4 in authority, for the claims-of employees as
human beings, who should be guaranteed production of their fundamental rights and offered enough
scope developing their potential.
Need for Personnel Policy
Personnel policies need be specifically created because of the following reasons:
(i) The basic need and requirements of both an organisation and its employees require deep thought. The
management is required to examine its basic-convictions as well as give full consideration to practices in
other organisatoins.
(ii) Established policies ensure consistent treatment of all personnel throughout an organisatoin. Favoritism
and discrimination are thereby minimized.
(iii) A certainly of action is assured even though the top management personnel may change. The tenure of
the office of any manager is finite and limited; but the organisation continues and along with it continue
the policies; and this continuity of policies promotes stability in an organisation.
(iv) Because they specify routes towards selected goals, policies serve as standards or measuring yards for
evaluating performance. The actual results can be compared with the policies to determine how well the
members of an organisation have lived up to their profees intentions.
(v) Sound policies help to build employee enthusiasm and loyalty. This is specially true when they reflect
established principles of fair play and justice, and when they help people to grow within an organisation.
(vi) Policies are “control guides for delegated decision making”. They seek to ensure consistency and
uniformity in decisions on problems, “that recur frequently and under similar, but not identical,
circumstances.’
Principles of Personnel Policies
In designing personnel policies, the management must balance the needs, goals, objectives and values of both
the employees and the employees. Since these policies are rules of conduct, they are based on the following
principles.
(i) Put the right man in the right place by a car selection and placement to make sure that the is physically,
mentally and temperamentally fit for the job he is expected to do and that the new employee may be
reasonably expected to develop into a desirable employee, so that “there will be the minimum number of
square pegs in round holes.”
(ii) Train everyone for the job to be done, so that they qualify for better jobs, so that their accomplishments
are limited to their ambitions and abilities, so that they do their present work very efficiently.
(iii) Make the organisation a co-ordinated team through a proper co ordinate and administration of different
departments and divisions, that there is a minimum amount of friction and unproductive or unnecessary
work. This calls for proper planning and organisation, control and direction of the entire organisation
without destroying the initiative of the individual employee.
(iv) Supply the right tools and the right conditions of work, for the better the tools, facilities and working
conditions, the larger the output produced with the same human effort at lower costs so that, ultimately
the higher wages may be paid and more good jobs provided.
BSPATIL

18. 18
(v) Give security with opportunity, incentive, recognition. In order that he may stick to his job, each
employee should have sound incentives for work, such as fair compensation, recognition for results
achieved, reasonable security, and opportunity and hope for advancement in the organisation.
(vi) Look ahead, plan ahead for more and better things: Superior products should be produced and
distributed, and these should be attractive and meet the demands of consumers. This calls for research and
a policy of continuing product planning and development.
Types of Personnel Policies
There are various types of policies. Jucium identifies two types, viz., functiona or organisation grouping of
policies; and the centralized policies. The its pre-grouping of policies are those policies which are grouped for
different categories of personnel, e.g. for the management dealing with personnel planning, organizing and controlling
or for management dealing with personnel planning, organizing and controlling or for management concerned with
functions of procuring developing and utilizing manpower. The centralized policies are framed for companies with
several locations. They are formulated at the head office and apply through out the organisatoin.
Policies may also be classified as major and minor. Major policies pertain to the over-all objectives,
procedures and control which affect an organisatoin as a whole. They cover in a general way nearly every phase of an
enterprise and its product and methods of financing, its organizational structure, plant location, its marketing and
personnel. Such policies are formulated by the Board of Directors, and a framework is established within which major
executive fit the remaining policies necessary to carryout the major objectives of an organisation.
Essential Characteristics/ Tests of a Sound Personnel Policy
The main features of a good personnel policy are:
(i) The statement of any policy should be definite, positive, clear and easily understood by everyone in the
organisatoin so that what it progress to achieve is evident.
(ii) It should be written in order to preserve it against loss, to stimulate careful consideration before its,
formulation and to prevent the promulgation of numerous, differing and temporary oral policies from
multiple sources.
(iii) It must be reasonably stable but not rigid, i.e., it should be periodically reviewed, evaluated, assessed and
revised and shluld, there fore, be in tune with the challenge of changes in the environment and should
have a built-in resilience for adjustment from time to time.
(iv) It must be supplementary to the over-all policy of an organisatoin, for if departmental policy is made such
as to come into conflict and violate the company policy, it would be tantamount to insubordinations. Peter
Drucker has observed: “The policies of an enterprise have to be balanced with the kind of reputation an
enterprise wants to build up with special reference to the social and human needs, objectives and values.
(v) It should indicate that the management knows that workers prefer to deal with the management on an
individual basis.
(vi) It should recognize the desire of many workers for recognition as groups in many of their relationships.
(vii) It should be formulated with due regard for the interests of all the concerned parties – the employees and
the public community.
(viii) It should be the result of a careful analysis of all the available.
(ix) It must provide a two-way communication system between the management and the employees that the
latter are kept informed of the latest developments in the organisatoin and the employers are aware of the
actions and reactions of the employees on particular issues.
BSPATIL

19. 19
(x) It should be consistent with public policy, i.e., with the spirit rather than the letter of the law, so that the
intentions and settled course of an organisation are appreciated in terms of public opinion from the
standpoint of national, economic and social justice for the employees and for the community at large.
(xi) If should be generally known to al interested parties.
(xii) It must have not only the support of the management but to the co-operation of employees at the ship
floor level and in the office.
(xiii) Before evolving such a policy, trade unions should be consulted. In matters of industrial relations; and the
role of trade unions should be restricted only to this areas.
(xiv) It should be progressive and enlightened, and must be consistent with professional practice and
philosophy.
(xv) It must make a measurable impact, which can be evaluated and qualified for the guidance of all
concerned, especially in the field of the three R’s of personnel management viz., recruitment, retainment,
and retirement.
(xvi) It should be uniform throughout the organisatoin, though, in the light of local conditions, slight variations
may be permitted in specific policies relation to staffing, compensation, benefits and services.
(xvii) It should have a sound base in appropriate theory and should be translate into practices, terms and
peculiarities of every department of an enterprise.
(xviii) Except in rare cases, policies should not prescribe detailed procedures.
Sources of Personnel Policies
Policies stem from a wide variety of places and people. The are not created in a vacuum but are based on a
few principal sources, which determine the content and meaning of policies. There are:
(i) The past practice of an organisation;
(ii) The prevailing practice among sister concerns in the neighborhood and throughout to country in the same
industry;
(iii) The attitudes, ideals, and philosophy of the Board of Directors, top management and middle and lower
management.
(iv) The knowledge and experience gained from handling day-to-day personnel problems.
(v) Employees suggestions and complaints:
(vi) Collective bargaining programmes;
(vii) State the national legislation.
(viii) Changes in the company
(ix) International forces, such as may operate in times of wars;
(x) The culture of the plant and its technology, its business environment, its social and political environment;
(xi) The extent of unionism;
(xii) The attitudes and social values of labour;
(xiii) The ethical points of view or the social responsibility of the organisatoin toward the public; and
BSPATIL

20. 20
(xiv) The goals of the organisatoin.
Minor policies, on the other hand, relationships in segment of an organisation.
BSPATIL

21. 21
UNIT – II
Human Resource Planning – Characteristics – Need for planning – HRP Process – Job analysis – Job design –
Job description – Job specification
HUMAN RESOURCES PLANNING
Importance of Human Resources
The concepts of “Manpower” or “human resource” is meant as “the total knowledge, skills creative abilities,
talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an individual
involved…… It is the sum total of inherent abilities, acquired knowledge and skills represented by the talents and
aptitudes of the employed persons.” Of all the “Ms” in the management (i.e., the management of materials, machines,
methods, money, motive power), the most important is “M” for men or human resources.
In any organisation, Human resources are utilized to the maximum possible extent in order to achieve
individual and organizational goals. An organization’s performance and resulting productivity are directly
proportional to the quantity and quality of its human resources.
MANPOWER PLANNING DEFINED
“Manpower Planning and “human resource planning” are synonymous. In the past, the pharse manpower
planning was widely used; but not the emphasis is on human resource planning which is more broad- based. Human
resource or manpower planning is “the process by which a management determines how an organisation should move
from its current manpower positon to its desired manpower position. Through planning, a management strives to have
the right number and the right number and the right kinds of people at the right places, at the right time, to do things
which result in both the organisation and the individual receiving the maximum long-range benefit.”
Coleman has defined human resource or manpower planning as “the process of determining manpower
requirements and the means for meeting those requirements in order to carry out the integrated plan of the
organisation.
Stainer defines manpower planning as “Strategy for the acquisition, utilization, improvement, and
preservation of an enterprise’s human resources. It relates to establishing job specifications or the quantitative
requirements of jobs determining the number of personnel required and developing sources of manpower”
According to Wickstrom, human-resources planning consists of a series of activities, viz.,
(a) Forecasting estimates based upon the specific future plans of a company;
(b) Making an inventory of present manpower resources and assessing the extent to which these resources are
employed optimally;
(c) Anticipating manpower problems by projecting present resources into the future and comparing them with the
forecast of requirements to determine their adequacy, both quantitatively and qualitatively; and
(d) Planning the necessary programmes of requirements, selection, training, development, utilization, transfer,
promotion, motivation and compensation to ensure that future manpower requirements are properly met.
Human resources planning is a double-edged weapon. If used properly, it leads to the maximum utilization of
human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in
achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower
production, less job satisfaction, high cost of production and constant headaches of for the management
personnel. Therefore, for the success of an enterprise, human resource planning is a very important function,
which can be neglected only at hits own peril. It is as necessary as planning for production, marketing, or own
peril, it is as necessary as planning for production, marketing, or capital investment.
BSPATIL

22. 22
NEED FOR HUMAN RESOURCE PLANNING
The necessity of Human resource planning for all organizations is for following reasons:
(i) To carry on its work, cash organisation needs personnel with the necessary qualifications, skills,
knowledge, work experience and aptitude for work. These are provided through effective manpower
planning.
(ii) Since a large number of persons have to be replaced who have grown old, or who retire, die or become
incapacitated because of physical or mental ailments, there is a constant need for replacing such
personnel otherwise the work would suffer.
(iii) Human resources planning is essential because of labor turnover which is unavoidable and even
beneficial because it arises from factors which are socially and economic ally sound such as voluntary
quits, discharges, marriage, promotions, or factors such as seasonal and cyclical fluctuations in business
which cause a constant ebb and flow in the work force in many organisation.
(iv) In order to meet the needs of expansion programmes which become necessary because of increase in the
demand for goods and services by a growing population, a rising standard of living – which calls for
larger quantities of the same goods and services as also for new gods; the competitive position of a firm
which bring it more business arising from improvements effected in the slump period; and the rate of
growth of the organisation, human resource planning is unavoidable.
(v) The nature of the present work force in relation to its changing needs also necessitates are recruitment of
new labour. To meet the challenge of a new and changing technology and new techniques of production,
existing employees need to the trained or new blood injected in an organisation.
(vi) Manpower planning is also needed in order to identify areas of surplus personnel or areas in which there
is a shortage of personnel. If there is a surplus, it can be redeployed; and if there is shortage, it may be
made good.
Stainer recommends the following nine strategies for the man power planners:
(a) They should collect, maintain and interpret relevant information regarding human resources.
(b) They should report periodically man power objectives, requirements and existing employment and allied
features of manpower.
(c) They should develop procedures and technique to determine the requirements of different types of manpower
over period of time form the standpoint of organisation’s goals;
(d) They should employ suitable techniques leading to effective allocation of work with a view to improving
manpower utilization;
(e) They should conduct research to determine factors hampering the contribution of the individuals and groups
to the organisatoin with a view to modifying or removing these handicaps.
(f) They should develop and employ methods of economic assessment of human resources reflecting its features
as income-generator and cost and accordingly improving the quality of decisions affecting the manpower.
(g) They should evaluate the procurement, promotion and retention of the effective human resources; and
(h) They should analyse the dynamic process of recruitment, promotion and loss to the organ is an control these
processes with a view to maximizing individual and group performance without involving high cost.
BSPATIL

23. 23
Process of Human Resource Planning
Human resource planning process is one of the most crucial complex and continuing managerial functions. It
may be rightly regarded as a multi-step process of human resource planning such as:
(a) Deciding goals or objectives;
(b) Estimating future organizational structure and manpower requirements;
(c) Auditing human resources;
(d) Planning job requirements and job descriptions;
(e) Developing a human resource plan.
Fig. Human Resource Planning System
(A) Objectives of Human Resources Planning
Human resource planning fulfils individual, organizational and national goals; but, according to Sikula, “the
ultimate mission or purpose is to relate future human resources to future enterprise needs so a to maximize the
future return on investment in human resources. “In effect, the main purpose is one ‘ of matching or fitting
employee abilities to enterprise requirements, an emphasis on future instead of present arrangement.
(B) Estimating the Future Organizational Structure of Forecasting the Manpower Requirements
The management must estimate the structure of the organisation at a given point in time. For this estimate, the
number and type of employees needed have to be determined. Many environmental factors affect this
determination. They include business forecasts, expansion and growth, design and structural changes,
management philosophy, government policy, product and human skills mix, and competition.
Forecasting provides the basic premises on which the manpower planning is built, Forecasting is necessary
for various reasons, such as:
(a) The eventualities and contingencies of general economic business cycles (such of additional machinery and
BSPATIL

24. 24
personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.
(b) An expansion following enlargement and growth in business involves the use of additional machinery and
personnel, and a re-allocation of facilities, all of which call for advance planning of human resources.
(c) Changes in management philosophies and leadership styles.
(d) The use of mechanical technology (such as the introduction of automatic controls, or the mechanization of
materials handling functions) necessitate changes in the skills of workers, as well as a change in the number
of employees needed.
(e) Very often, changes in the quantity or quality of products or services require a change in the organisation
structure. Plans have to be made for this purpose as well.
It may be noted that for purposes of manpower planning, the main dimensions to be taken into consideration are:
(i) The total number of personnel available, this could be obtained from they pay-rolls and other personnel
records, such as the applications for employment. The total number has to be classified on some basis, such as
manual workers (i.e., daily-rated, weekly-rated or monthly-rated); clerical employees, ministerial staff,
managers and other executives; specialists and skilled and unskilled workers; sex-wise distribution etc.
(ii) The job-family, i.e., a detailed job-description for each position such as stenographers who may belong to
various departments e.g., finance, marketing, personnel, public relations, general administration, etc.
(iv) Age distribution of the employees, available in the present departments, say in the age-groups 20-29
years; 30-45 years; 46 years and above.
(v) Qualification and experience desired, such as a person with 5 years 10 years experience in a particular
branch/job; and whether under-graduate, post-graduate, or MBAs or graduates in Science, Commerce,
Arts, engineering, or professional diploma holders, etc; or with specialized knowledge in the field of
marketing, finance, computer programming or engineering work.
(vi) The salary range, etc.
(C) Auditing Human Resource
Once the future human resource needs are estimated, the next step to determine the present Supply of
manpower resources. This is done through what is called “Skills Inventory”. A skills inventory contains data
about each employee’s skills, abilities work preferences and other items of information which indicate his
overall value to the company.
(D) Job Analysis
After having decided how many persons would be needed, it is necessary to prepare a job analysis, which
records details of training, skills, qualification abilities, experience and responsibilities, etc., which are needed
for a job. Job analysis includes the preparation of job descriptions and job specifications. This has been
discussed in the later sections of this chapter.
(E) Developing a Human Resources Plan
This step refers to the development and implementation of the human resource plan, which consists in finding
out the sources of labour supply with a view to making an effective use of these sources. The first thing,
therefore, is to decide on the policy – should the personnel be hired from within through promotional
channels or should it be obtained from an outside source. The best policy which is followed by most
organisatoins is to fill up higher vacancies by promotion and lower level positions by recruitment from the
labour market.
BSPATIL

25. 25
RESPONSIBILITY FOR HUMAN RESOURCE PLANNING
The responsibilities of the Personnel department are having the responsibilities in man power planning which
have been stated by Geisler in the following words:
i. To assist, counsel and pressurize the operating management to plan and establish objectives;
ii. To collect and summarize data in total organizational terms and to ensure consistency with long-range
objectives and other elements of the total business-plan;
iii. To monitor and measure performance, against the plan and keep the top management informed about it;
and
iv. To provide the research necessary for effective manpower of organizational planning.
Manpower Plan – Component
The manpower plan can be broken down into three components:
i. Forecasting – estimating future needs and stock taking of available resources in the organisation.
ii. Recruitment plan, to meet the gap between the internal resource and estimated need by external
recruitment;
iii. Training and Development plan to utilize fully the human resources of the organisation and to develop
the potential resources.
JOB ANALYSIS
Developing an organisation structure results in jobs when have to be staffed. “Work” is an organisatoin
primary function. The ‘basic work activities’ may relate to three categories – Data, People and Things. Under data are
included synthesizing, coordinating, analyzing, compiling, computing, copying and comparing activities. People
relate to monitoring, negotiating, instructing, supervising, diverting, persuading, speaking, signaling, serving and
taking instructions. Things are concerned with setting up, precision working, operating-controlling, driving –
operating, manipulating, feeding-off bearing and handling.
PURPOSE AND USES OF JOB ANALYSIS
A comprehensive JA programmes is an essential ingredient of sound personnel management. It is the major
input to forecasting future human resource requirements, job modifications, job evaluation, determination of proper
compensation, an d the writing of job descriptions. It is of fundamental importance to manpower management
programmes because of the wider applicability of its results. The information provided by JA is useful, if not
essential, in almost every phase of employee relations.
i. Organisation and Manpower Planning: It is helpful in organizational planning, for it defined labour needs
in concrete terms and co ordinates the activities of the work force, and clearly divides duties and
responsibilities.
ii. Recruitment, Selection: By indicating the specific requirements of each job (i.e., the skills and
knowledge), it provides a realistic basic for the hiring, training, placement, transfer and promotion of
personnel ‘Basically, the goals is to match the job requirements with a worker’s aptitude, abilities and
interests. It also helps in charting the channels of promotion and in showing lateral lines of transfer.”
iii. Wage and Salary Administration: By indicating the qualifications required for doing a specified job and
the risks and hazards involved in its performance, it helps in salary and wage administration. Job analysis
is used as a foundation for job evaluation.
BSPATIL

26. 26
iv. Job Re-engineering: Job analysis provides information which enables us to change jobs in order to permit
their being manner by personnel with specific characteristics and qualifications. This takes two forms:
(a) Industrial engineering activity, which is concerned with operational analysis, motion study, work
simplification methods and improvements in the place of work and its measurement, and aims at
improving efficiency, reducing unit labour costs, and establishing the production standard which the
employee is expected to meet; and
(b) Human engineering activity, which takes into consideration human capabilities, both physical and
psychological, and prepares the ground for complex operations of industrial administration, increased
efficiency and better productivity.
v. Employee Training and Management Development: Job analysis provides the necessary information to
the management of training and development programmes. It helps it to determine the content and subject
matter of in-training courses. It also helps in checking application information, interviewing, weighing
test results, and in checking references.
vi. Performance Appraisal: It helps in establishing clear-cut standards which may be compared with the
actual contribution of each individual.
vii. Health and Safety: It provides an opportunity for identifying hazardous conditions and unhealthy
environmental factors so that corrective measures may be taken to minimize and avoid the possibility of
accidents.
CONTENTS OF JOB ANALYSIS
A job analysis provides the following information:
(i) Job identification: Its title, including its code number;
(ii) Significant characteristics of a job: Its location, physical setting, supervision, union jurisdiction, hazards
and discomforts:
(iii) What the typical works does: Specific operations and tasks that make up an assignment, their relative
timing and importance, their simplicity, routine or complexity, the responsibility or safety of other for
property, funds, confidence and trust;
(iv) Which materials, and equipment a works uses: Metals, plastics, grains, yarns, feedings, removing,
drilling, driving, setting up and many others.
(v) How a job is performed. Nature of operation – lifting, handling, cleaning, washing, feeding, removing,
drilling, driving, setting up and many others.
(vi) Required personnel attributes: Experience, training, apprenticeship, physical strength, co-ordination or
dexterity, physical demands, mental capabilities, aptitudes, social skills;
(vii) Job relationship Experience required, opportunities for advancement, patterns of promotions, essential co-
operation, directions, or leadership from and for a job.
BSPATIL

27. 27
Job Analysis
(A Process for Obtaining All Pertinent Job Facts)
Job Description Job Specification
Statement containing items such as: A statements of the human requirements for
doing a job
(a) Job Identification (job title, location, (a) Physical make-up or Characteristics
occupational code, alternative name in
use, name of division, department and
unit where it exists)
(b) Job Summary (gives a quick capsule (b) Psychological characteristics.
explanation of the contents of a job, its
hazards and discomforts)
(c) Duties performed (says the what, how (c) Personal characteristics.
and why of a job; also describes and
worker’s responsibilities in regard to
custody of money, supervision of other
workers, training of subordinates, etc.)
(d) Relation to other jobs (gives how many (d) Responsibilities.
persons may be supervised).
(e) Supervision given/taken (helps in (e) Other factors of a demographic nature
locating a job in the job hierarchy).
(f) Machines, tools, equipment (what type of
tools/equipment material is used).
(g) Materials and forms used
(h) Conditions of work
(i) Hazards (accident hazards)
THE STEPS IN JOB ANALYSIS
There are basic steps required for doing a job analysis, viz.,
Step 1: Collection of Background Information
Step 2: Selection of Representative Position to be Analyzed
Step 3: Collection of Job Analysis Data
Step 4: Developing A Job Description
Step 5: Developing Job Specification
TECHNIQUES OF JOB ANALYSIS DATA
The determination of job tasks, the concomitant skills and abilities necessary for successful performance, and
the responsibilities inherent in the job can be obtained through such methods or approaches as the following:
(i) Personal observation;
(ii) Sending out questionnaires;
BSPATIL

28. 28
(iii) Maintenance of log records; and
(iv) Conducting personal interviews.
(i) Personal observation: The materials and equipment used, the working conditions and probable hazards, and an
understanding of what the work involves are the facts which should be known by an analyst. Direct observation is
especially useful in job that consist primarily of observable physical ability, like the jobs of draftsman, mechanic,
spinner or weaver.
(ii) Sending out Questionnaire : The method is usually employed by engineering consultants. Properly drafted
questionnaires are sent out to job-holders for completion and are returned to supervisors. However, the information
received is often unorganized and incoherent. Then idea in issuing questionnaires is to elicit the necessary information
from job – holders so that any error may first be discussed with the employee and, after due corrections, may be
submitted to the job analyst.
(iii) Maintenance of Log Records: The employee maintains a daily diary record of duties he performs, marking the
time at which each task is started and finished – But this system is incomplete, for it does not give us any desirable
data on supervisor relationship the equipment used, and working conditions. Moreover, it is time-consuming.
(iv) Personal interviews: may be held by the analyst with the employees, and answers to relevant questions may be
recorded. But the method is time-consuming and costly.
JOB DESIGN
The enthusiasm with which HRM has been embraced by many working with in the theory and practice of job
design is founded upon its prediction and promise that individuals will be provided with stimulating and enrich jobs.
Not only will individual employees perform far more varied and skill jobs but through the resulting quantitative and
qualitative performance improvements organizations will become far more competitive. Hence, one of the most
important components of organizational effectiveness and economic prosperity is the attention and details paid to the
design of work tasks.
THE TWO APPROACHES TO JOB DESIGN
The first approach is a focus, that is the discrete and autonomous active interventions made by management in
the employment relationship designed to increase performance by, for example:
• Increasing motivation
• Commitment
• Placating discontent and alienation
• Improving the flexibility of employee utilization
Position or Job Description (ID)
“Job description” is an important document which is basically descriptive in nature and contains a statements
of job analysis. It provides both organizational information (location in structure, authority etc.) and functional
information (what the work is). It defines the scope of job activities, major responsibilities, and positioning of the job
in the organisatoin. It provides the worker, analyst, and supervisor with a clear idea of what the work must do to meet
the demands of the job.
“Job description” is different from “ performance assessment.” The former concerns such functions as
planning, coordinating, and assigning responsibility, which the latter concerns the quality of performance itself.
Though job description is not assessment, it provides an important basis for establishing assessment standards and
objectives.
BSPATIL

29. 29
Job Description describes the ‘jobs’ not the ‘job holders’ the movement of employees due to promotion, quits,
etc. would create instability to job description if people rather than jobs are described.
USES OF JOB DESCRIPTION
Job description has several uses , such as:
(i) Preliminary drafts can be used as a basis for productive group discussion, particularly if the process starts at
the executive level.
(ii) It aids in the development of job specifications, which are useful in planning recruitment, if training and in
hiring people with required skills.
(iii) It can be used to orient new employees toward basic responsibilities and duties.
(iv) It is basic document used in developing performance standards.
(v) It can be used for job evaluation, a wage and salary administration technique.
A job description enables the manager to frame suitable questions to be asked during an interview. It is particularly
helpful when the application form is used as a tool for eliminating the unfit personnel. According to Zerga, a job
description helps us in:
(i) Job grading and classification
(ii) Transfers and promotions
(iii) Adjustments of grievances;
(iv) Defining and outlining promotional steps;
(v) Establishing a common understanding of a job between employers and employees.
(vi) Investigating accidents;
(vii)Indicating faulty work procedures or duplication of papers;
(viii)Maintaining, operating and adjusting machinery
(ix) Time and motion studies;
(x) Defining the limits of authority
(xi) Indicating case of personal merit;
(xii)Facilitating job placement.
(xiii)Studies of health and fatigue
(xiv)Scientific guidance
(xv)Determining jobs suitable for occupational therapy;
(xvi)Providing hiring specifications; and
(xvii)Providing performance indicators.
BSPATIL