Personnel management involves three broad areas: the personnel aspect dealing with recruitment, selection, and training; the welfare aspect dealing with employee benefits and working conditions; and the industrial relations aspect dealing with union management and grievances. A personnel manager oversees functions like recruitment, training, compensation, and employee relations and acts as an advisor, administrator, and strategic partner within an organization.

1. PERSONNEL MANAGEMENT: FUNCTIONS, POLICIES AND ROLES Chapter EXCEL BOOKS 2-1 2

2. ANNOTATED OUTLINE 2-2 Introduction Personnel management may be defined as a set of programmes, functions and activities designed to maximise both personal and organisational goals. Basically, it covers three broad areas:

3. Three dimensions of Personnel Management 2-3 Personnel Management Personnel Aspect Recruitment, selection, placement, training, appraisal, compensation, productivity. Welfare Aspect Working conditions, amenities, facilities, benefits. Industrial Relations Aspect Union-management relations, disputes settlement, grievance handing, discipline, collective bargaining.

4. Features 2-4 deals with employees both as individuals and as a group concerned with the development of human resources covers all levels (lower, middle and top) applies to all types of organisations aims at attaining the goals of an organisation aims at securing unreserved cooperation from all employees.

5. Managerial Functions 2-5 Planning Organising Directing Controlling

6. Operative Functions 2-6  Procurement Function Job analysis Human resource planning Recruitment Selection Placement Induction and orientation Internal mobility  Development Function Training Executive development Career planning and development Human resource development Cont…

7. Operative Functions 2-7 Motivation and Compensation Job design Work scheduling Motivation Job evaluation Performance appraisal Compensation administration Incentives and benefits Maintenance Function Health and safety Employee welfare Social security Cont…

8. Operative Functions 2-8 Integration Function Grievance redressal Discipline Teams and team work Collective bargaining Employee participation and empowerment Trade unions and employers associations Industrial relations Emerging Issues Personnel records Human resource audit Human resources research Human resource accounting Human resource information system Stress and counselling International human resource management

9. Personnel Policies, Procedures And Programmes 2-9 Personnel policies are guides to action. They serve as roadmaps for managers on a number of issues such as recruitment, selection and promotion. They cover almost all functions of personnel management. A good personnel policy should be easy to understand, based on facts, equitable, reasonably flexible, precise and related to objectives.

10. Types of personnel policies 2-10 Originated policies Appealed policies Imposed policies General policies Specific policies Written or implied policies

11. Advantages of personnel policies 2-11 Delegation Uniformity Better control Standards of efficiency Confidence Speedy decisions Coordinating devices

12. 2-12 Features of a sound personnel policy Related to objectives Easy to understand Precise Stable as well as flexible Based on facts Appropriate number Just, fair and equitable Reasonable Review

13. Coverage of Personnel policies 2-13 social responsibility policies employment policies promotion policies development policies relations policies

14. Formulation of Personnel policies 2-14 identifying the need collecting data specifying alternatives communicating the policy evaluating the policy

15. Evaluating the impact of personnel policies 2-15 The impact of human resource policies can be measured through their outcomes: Commitment: how long an employee stays with a firm Competence: appraised through performance appraisal techniques Congruence: nature and frequency of grievances, disagreement, discord and conflict Cost effectiveness: measured through human resource accounting techniques

16. 2-16 Organising The Personnel Function The personnel function can be organised along traditional as well as modern lines, depending on the nature, scale and complexity of operations in a given organisation. The organisation of the personnel department in divisional and matrix structures differs from that of traditional line and staff organisations. Line and staff relationships: The relationship existing between two managers due to delegation of authority and responsibility and giving or receiving instructions or orders is called line relationship. Line authority, thus, represents uninterrupted line of authority and responsibility running through the management hierarchy. Staff specialists offer help and advice to line managers, whenever required. “Staffs think and lines do” “Staffs advise, lines work” “Staffs have the authority of ideas and lines have the authority of command”. Viewed broadly, therefore, personnel management is a line manager’s responsibility but a staff function”.

17. Staff role of the personnel department 2-17 Policy initiation and formulation Advice Service Monitor and control

18. Personnel department in a line organisation 2-18 Chief Executive Personnel Manager Recruiting Officer Training Manager Compensation Manager Welfare Officer Assistants Assistants Assistants Assistants

19. Personnel department in a functional organisation 2-19 Personnel management: functions, policies and roles Chief Executive Personnel Manager Recruiting Officer Training Manager Compensation Manager Welfare Officer Assistants Assistants Assistants Assistants

20. Personnel department in a line and staff organisation 2-20 Chief Executive Personnel Manager Recruiting Officer Training Manager Compensation Manager Welfare Officer Assistants Assistants Assistants Assistants Line relationship Staff relationship

21. 2-21 Personnel management: functions, policies and roles Personnel department in a divisionalised structure

22. 2-22 Personnel management: functions, policies and roles Personnel department in a matrix structure

23. 2-23 Personnel management: functions, policies and roles Roles Played by a Personnel Manager Administrative roles Policy maker Administrative expert Advisor Housekeeper Counsellor Welfare officer Legal consultant Operational roles Recruiter Trainer, developer, motivator Coordinator/linking pin Mediator Cont…

24. Employee champion Placing people on the right job Charting a suitable career path Rewarding good performance Resolving differences Adopting family-friendly policies Ensuring fair and equitable treatment Striking balance between employee expectations and Organisational requirements Representing workers' problems and concerns to management Strategic roles Change agent Strategic partner 2-24 Personnel management: functions, policies and roles Roles Played by a Personnel Manager

25. 2-25 Personnel management: functions, policies and roles Qualities And Qualifications Of A Personnel Manager HR professionals must have a thorough knowledge of the organisation and its overall functioning. To deliver effective results, they need considerable amount of knowledge, skills and expertise in tax laws, finance, statistics, social sciences etc apart from the training that they receive from reputed B-schools. Qualities Personal attributes Intelligence Educational skills Discriminating skills Executing skills Experience and training Professional knowledge Cont…

26. 2-26 Personnel management: functions, policies and roles Qualifications Business mastery Change mastery Professionalisation of personnel management in India Attributes of a profession Well defined body of knowledge Formal education and training Minimum qualifications Representative body Service above self Ethical conduct Qualities And Qualifications Of A Personnel Manager Cont…

27. Over the years, personnel management has emerged as a highly respected profession in India. The reasons are fairly obvious; Growth of management institutes A growing body of literature Professional bodies Self-regulatory institutions overseeing the operations of personnel people Code of conduct 2-27 Personnel management: functions, policies and roles Qualities And Qualifications Of A Personnel Manager