Describes theoretical background of personnel management

1. Functional Role of Personnel
Management
Personnel Management to HRM

2. Definitions
Objective : A Specific result that person or system aims to achieve within a time
frame and with available resources.

3. Definitions
Role :A prescribed or expected behavior associated with a
particular position or status in a group or organization.

4. Definitions
Strategy : A method or plan chosen to bring about a desired future, such as
achievement of a goal or solution to a problem.

5. Definitions
Compliance :Certification or confirmation that the doer of an action (such as
the writer of an audit report), or the manufacturer or supplier of a product, meets
the requirements of accepted practices, legislation, prescribed rules and regulations,
specified standards, or the terms of a contract.

6. PERSONNEL MANAGEMENT -
Definition
Personnel Management is the
• Planning,
• Organizing,
• Directing and
• Controlling
Of the
• Procurement, Development,
• Compensation, Integration,
• Maintenance & Separation ……… FUNCTIONS
Of human resources to the end that individual, organizational, and
societal objectives are accomplished.

7. The Role of the Personnel Manager
The Personnel Manager has Exclusive responsibility of –
• Personnel records,
• Insurance Benefits administration
• Unemployment compensation administration
• Personnel Research
The Heart of a Personnel Programme itself requires
considerable coordination, as well as coordination
with units in the remainder of the organization.

8. Personnel Management Models
Tyson and Fell (1986) who identify three models of the personnel section ;
Clerk of works - in which personnel is a low level activity responsible for administration
and welfare provision;
Contracts Manager - in which the focus is on the implementation of well-established
procedures and agreements with a heavy industrial relations (IR) emphasis; and
Architect - in which the personnel function plays a key role in establishing strategic HRM
policies to support the achievement of corporate objectives, while routine personnel
activities are delegated to free up time for strategic activities.

9. HRM Involves all management
decisions and actions that affect the
nature of the relationship between
organization and employees.“Harvard Frame Work” Beer et al (1984)
Human Resource
Management

10. Activities associated with the
management of employment
relation with the firm.Boxall and Purcell (2003)
Human Resource
Management

11. HRM is the managerial utilization of the efforts, knowledge,
capabilities and committed behaviors which people contribute
to an authoratively coordinated human enterprise as part of
employment exchange (contractual) to carry out work tasks in a
way which enables the enterprise to continue into the future.
Watson (2010;919)
Human Resource
Management

12. Armstrong's Handbook of
Human Resource
Management Practice
By Michael Armstrong

13. Human Resources Management

14. • Explicitly linked with corporate strategy
• Obtain commitment of employees rather than their compliance; ·
• Employee commitment is obtained through an integrated approach to human resource policies (for
example, reward, appraisal, selection, training); and ·
• Unlike personnel management, which is primarily the domain of specialists, HRM is owned by line
managers as a means of fostering integration.
Key Difference

15. Dimension Personnel Management HRM
1. Employment
Contract
Careful delineation of
written contracts
Aim to go beyond
contract
2. Rules Importance of devising
clear rules
‘Can do’ outlook,
Impatience with rule
3. Key Relations Labour Management Customer
4. Speed of decision Slow Fast
5. Management role Transaction Transformational
6. Job design Division of labor Team work
7. Respect for
employees
Labor is treated as a tool
which is expendable &
replaceable.
People are treated as
assets to be used for the
benefit of an organization,
its employees & the
society as a whole.
8. Shared interest Interests of the
organization are
uppermost
Mutuality of interests

16. The Major Functional Areas In Human Resource
Management
1. Planning,
2. Staffing,
3. Employee development (Training)
4. Employee maintenance
(Retention)

17. Human Resource Management Activities
Designing Jobs: Well defined jobs are linked with
employee motivation
Developing Reward System: impact on employee
behavior & retention.

18. HRM Objectives
As Function

19. HRM Objective
• Managing people to maximize contribution of employees to
individual and group level to the organization overall objectives.
• Desired level of staffing & skills
• Productivity
• Cost Targets
• Employer-Employee Relations

20. HRM Strategies
• Hard HRM – a top-down management approach where employees
are directed and controlled.
• Soft HRM – employees are valued. (McGregor’s Theory-Y of
Leadership)

21. McGregor’s Theory-Y of Leadership
McGregor’s famous distinction between Theory X and Theory Y. In
his hugely influential 1960 book, The Human Side of Enterprise
(McGraw-Hill)
• Theory X says that the average human being is lazy and self-
centred, lacks ambition, dislikes change, and longs to be told what
to do. – Managerial approach emphasizes Total Control
• Theory Y maintains that human beings are active rather than
passive shapers of themselves and of their environment. They long
to grow and assume responsibility. The best way to manage them,
then, is to manage as little as possible.

22. Hard & Soft HRM Approach

23. HRM Sample Structure

24. Workforce Planning
Human Resource Management

25. Workforce plan is developed to ensure a business always
hast he right number of employees with right skills to meet
the staffing requirements of the organization.
Workforce Planning

26. The Big Picture
Strategic Plan for Future
Current Workforce
How do we fill
this gap?

27. Trends?
• Baby Boomers (BB) are getting older
• BB redefine retirement age
• Technology – changes HR Function
• New Legislation
• Labour pool is shrinking
• Globalisation
• Workforce needed for tomorrow is very different from today

28. Therefore WFP is….
Not Just… It Is…
Predicting the future Building a longer-term context for
short term decision making
An inventory of all positions Focusing on positions where you
need to be proactive
Creating plans as a one-time ‘event’ Creating plans in response to
changing strategies
Creating reports and listings that
describe ‘what was’
Focussing on planning and looking
ahead to ‘what will be’
Building HR Capability Solving staffing problems/issues
IPMA Workforce Planning Resource Guide

29. HR Strategic Plan
HR Strategic Plan

30. Workforce Planning Model

32. Phase 1 – Planning Stage
Phase 1 Steps Key Activities
Planning stage
)
Strategic planning  Determining desired outcome of workforce
planning exercise
 Determine organisational goals, mission,
values and objectives
Establish workforce planning
team
(
 Establish workforce planning team
 Specify Name, Occupational group, Specific
role, Responsibility & Time committed to
projected
Assess organisational readiness
for workforce planning
 Resources and capabilities
 Commitment
 Expertise
 Time
 Money
 Technology
 Develop communication strategy
 Assess employee readiness for change
Focus on function, not on people

34. Phase 2 – Analysis Stage
Phase 2 Steps Key Activities
Workforce analysis
stage
Determine workforce
profile
 Employment equity profile
 Age
 Tenure
 Employment status (permanent vs. contingent)
 Occupational levels
 Occupational categories
 HIV / AIDS assessment impact
Business and staffing
outlook
 Identify current business strategy
 Identify emerging business strategies
 Identify critical business objectives (BEE, EE, Skills
Requirements)
 Conduct SWOT analysis
Identify outcome priorities  Priorities workforce targets based on opportunities and
risks related to outcomes, results, productivity, turnover,
costs, strategic factors, trends
Demand forecast  Identify needed competencies
 Determine competencies needed to accomplish
organisation's future goals and objectives / functional
requirements
 Job analysis and competency information
 Workload projections
 Diversity and internal staffing requirements

35. Phase 2 – Analysis Stage (ii)
Phase 2 Steps Key Activities
Workforce analysis
stage (contd.)
Supply projection  Projected workforce supply - profile of
present workforce projected out as if no
special action was taken to address
attrition or develop staff
 Identify current competencies
 Workforce composition statistics
 Occupational levels and categories
 Demographics
 Locations (geographic)
 Turnover projections and rates
 Individuals, jobs, organisational groups,
teams, units
Gap and priority analysis  Identification of gaps (shortages) and
surpluses (excesses) in staffing and
competency levels needed to meet future
functional requirements

36. GAP ?
Gap Analysis
Indication:
- Future excess
Strategy:
- Skill sets no longer
needed?
- Retraining
- Transfers
- Separation incentives?
Supply Projection:
• Workforce Profile
• Business Outlook
• Staffing
• Company Strategies
• Competencies
Current State
Base-Line
Future State
Vision
Demand Forecast:
• Projected Workforce
• Future workloads
• Competencies Needed
• Technology
•
Supply is greater
than Forecast

37. Gap Analysis Process
How What
Assess The current supply of Human
Capital
Factor in Variables and Assumptions
To come up with Supply of Human Capital, then
Compare to Demand
To come up with Gaps and Surpluses

39. Phase 3 – Implementation Stage
Phase 3 Steps Key Activities
Implementation Strategy Development  Identification of specific strategies or
actions to take to resolve projected
and competency gaps and surpluses
 Results of Gap Analysis; strategy tools and
resources
 Select and integrate strategies
 Cost-benefit analysis of strategies
 Evaluate options - time, resources,
workplace dynamics
 Develop communication strategy
Implement Strategy  Use basic project management
 Ensure buy-in and support
 Allocate resources, finances and
 Clarify roles and responsibilities
 Establish timelines
 Determine performance measures,
milestones
 Communicate elements of workforce plan

41. Phase 4 – Evaluation Stage
Phase 4 Steps Key Activities
Evaluation stage Evaluate, monitor and
revise
 Review performance measurement
information at designated intervals
 Assess what's working and not
 Make necessary adjustments
 Address new workforce issues that
may arise
 Analyze and document leanings
 Validate plan
 Cost-benefit analysis
 Return on investment
 Impact on business

42. Evaluation
• Consider the following in evaluating the planning effort and preparing for the next planning
project. Most of these questions will become relevant only after you are fairly far along in
implementing solutions.
• Has the strategic plan or other plans changed since the beginning of the effort?
• If so, what are the implications for the strategies implemented?
• Have the implemented strategies achieved the intended results?
• What worked well? What didn't?
• To what extent have demand and supply projections been borne out?
• Is a new analysis necessary before revising the strategies?
• What adjustments to the strategies are needed?
• What changes would you like to make to the planning process?

43. Example : Attrition Model

44. Barriers to Workforce Planning

45. Workforce Assessment
• Staff Audit (Current & Future)
• Staffing as per Corporate Plan
• Forecasting age per skill
• Calculating GAP

46. Recruitment
Workforce Planning

47. Training & Development
Workforce Planning

48. Objectives
1) Help NEW Employees
2) Introduce new Skills
3) Develop workforce
4) Product Training
Workforce Planning

49. Performance Appraisal
1) Improving performance
2) Individual feedback
3) TNA (Training Need Assessment)
4) Career Development
5) Identifying star employees
Workforce Planning
Half
Yearly
Yearly
Quarter
Line Manager
Employee
Human Resource Manager

50. Workforce Plan Influencers
Internal
• Workforce Productivity
• Business Strategy
• Leadership towards Hierarchy
• Leadership towards Diversity
External
• External Opportunities
• Legislation
• Labour Market

51. Value Of Workforce Plan
Business Success
• Plan
• Cost

52. WFP Model

53. Home Work
• JD Wetherspoon plc is a large company which owns and operates hotels,
pubs and restaurants throughout the UK. It has 28,500 employees and has
a comprehensive programme of staff training. Staff retention is at a high
level and they have been recognised as one of “Britain’s Top Employers”
for the last 9 years. Even in difficult economic times they have increased
sales and profits.
• a) How do their staff contribute to the success of the company?
• b) To what extent do you think that other factors are more important?

54. Market Research
Gathering information on customer, competitors and distributors within firm target
market.

55. Market Research
Primary Research Secondary Research
Gathering data directly from people of target market Unearthing data which already exists
Group Discussions ; Questioner ; Secondary source ; Internet, Trade Press,
Government Data, Book or Journal references

56. Primary Research
• Qualitative Research:- In-depth research into motivation of buyers
like in group discussion and Depth interviews.
• Qualitative Research:- Pre-set questions on a large sample of
people.
• Random Sampling : selecting respondents so all get a chance
• Quota Sampling : selecting consumer profile
• Sample size
• Questioner

57. Assignment
• Visit any well-known and established Pakistani/ international
company. Study its working conditions and observe what
theories of motivation are being applied there. What is/are your
suggested theory to improve the working condition and
motivational level of the employee structure.

58. Solution
1. Know your motivational theory
1. Maslow
2. Hezberg
2. Devise Simple Questioner as per Theory contents and your result

59. Questioner Sample
Questioner Ask 10 Questions Based on Maslow Theory with Business Implications – page 195
 Physical Need
1) Are you satisfied with current work conditions? Yes or No
2) Do you need recognition in every task assigned? Yes or No
3) Is your job affecting your health? Yes or No
 Security
1) How long have you been with the company 1 Years ; 2-5 Years or Longer
2) Is your job pensionable ? Yes or No
3) Have you been attracted by other job offers? Yes or No
Questioner Ask 10 Questions Based on Hezberg Theory with Business Implications – page 196
Balance questions on Hygiene Motivation Factors
 Achievement
1) Does report making makes you work longer?
Answers inclined to any theory will result in that company actual practices…..you may build your analysis
over that…..

60. Harvard Referencing
1) In-text Reference
1) Stapels sales had inched up 0.7 percent, respectively (Times, 2007)
Harvard Reference: Times Magazine , by Margret Sachell; “Sapels sales in US”; issue
March; 2007- page 127.
2) Stapels sales had inched up 0.7 percent, respectively1
1.Times Magazine , by Margret Sachell; “Sapels sales in US”; issue March; 2007- page
127.