Personnel Management

Common Definitions
Personnel : A term used to describe the individuals who comprise the workforce of an organization. Department : A specialized division of a large organization. For Example Sales Department, HR Department, Advertising Department, etc. Personnel Department : The department responsible for hiring and

training and placing employees and for setting policies for

personnel management.

Nature of Personnel Management

Personnel management includes the function of employment,

development and compensation - These functions are performed

primarily by the personnel management in consultation with other departments. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.

Nature of Personnel Management

Personnel management lays emphasis on action rather than making

lengthy schedules, plans, work methods. The problems and grievances of

people at work can be solved more effectively through rationale personnel policies. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern. It also motivates the employees through its effective incentive plans so that the employees work effectively, efficiently and are cooperative. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as well as bluecollar workers.

Functions of Personnel Management

Manpower Planning : Includes Analyzing the current manpower

inventory, Making future manpower forecasts, Developing employment

programmes, Design training programmes. Recruitment : Attracting, screening, and selecting qualified people for a job at an organization or firm. Selection : Process of putting right men on right job; selecting the right candidates. Training and Development : Process of enhancing the skills, capabilities

and knowledge of employees for doing a particular job.

Role of Personnel Manager

Performs both managerial and operative functions of management. Personnel manager provides assistance to top management- The top management are the people who decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the personnel manager. He advices the line manager as a staff specialist - Personnel manager acts like a staff advisor and assists the line managers in dealing with various personnel matters.

Role of Personnel Manager

As a counselor, personnel manager attends problems and

grievances of employees and guides them. He tries to solve

them in best of his capacity. Personnel manager acts as a mediator - He is a linking pin

between management and workers.

He acts as a spokesman - Since he is in direct contact with the employees, he is required to act as representative of organization in committees appointed by government. He represents company in training programmes.

Factors affecting personnel structure

State and rate of growth of organization Stability of organization in market and in its production process Importance attached to and attitude to the personnel function by top management Location of personnel department Range of activities and functions performed by the personnel

department
Ability and enthusiasm of the personnel officer

Type 1: Multi-Functional Innovative Departments

Found in Organizations having a well established market,

Stabilized production runs and Importance of Personnel

Department is at-par with other functions Found in the first or second line of management

Department enhances its status and position by solving

problems Main Feature : Diagnose and resolve a particular problem or

even anticipate a problem area and work on it so that it does

not interfere with the functioning of the enterprise.

Example Layout (Type 1)

Managing Director

Marketing manager

Commercial manager

Finance manager

Manager Sales & Purchase

Personnel manager

Personnel Officer

Employment Officer

Medical Officer

Ind. Law Officer

Establishment

Welfare

Type 2: ProductionOriented Departments

Function directly under the production head To keep the production

lines moving
Treated as Service Departments Maintenance Role : Providing labor, complying with legislation and maintaining industrial peace Don't innovate or develop as seen in the case of Multi-Functional Innovative Departments Other functions : negotiating contracts with the labor union, maintaining

discipline, training, administering wages and welfare activities.

Found in the second or third line of management

Example Layout (Type 2)

Managing Director

Finance Director

Production Director

Sales Director

Production Superintendent

Manager Purchase

Accounts manager

Technical Superintendent

Personnel manager

Foreman

Manager Industry Engineering

Manager Factory Personnel

Manager Employee Personnel

Foreman

Manager labor

Foreman

Manager training

Labor Welfare Officer

Type 3: Labor WelfareOriented Departments

Seen in organizations of all sizes Large, Medium or Small where personnel management is given very less importance Performs limited functions : time keeping, attendance, maintenance of records, performing legal obligations Does not innovate and operates in accordance to the

guidelines set by top management

Reports only to departmental heads and top management

Example layout (Type 3)

Managing Director

Company Secretary

Chief engineer

Chief accountant

Works manager

Sales manager

Factory manager

Purchase manager

Labor Welfare Officer

Time office supervisor

Labor Welfare assistant

Welfare assistant

However
It is important to note that the structures seen are only indicative

not definitive
There is no direct correlation between a certain structure and a type of organization

For Example : All MNCs need not have the same type of
personnel department in all its child units. It may have production oriented structure In one unit and a welfare oriented in the other.

Structure primarily depends on the role that the personnel department is expected to fill.

Thank You !