Part I

Management of Human Resources

Historical Overview of Personnel Management

Chapter

Historical Overview of Personnel Management

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Managing Human Resources & Industrial Relations

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Part I

Management of Human Resources

Historical Overview of Personnel Management

Meaning of Personnel Management

Personnel management, as the term suggests, is a part of management, which is concerned with effective management of personnel, that is, workers and employees in an organization. Personnel management has focus on improving human relations within the organization in order to motivate workers and employees. In India, the National Institute of Personnel Management, Kolkata has provided the following framework (scope or dimension) of personnel management: i. ii. iii.
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Personnel aspect Welfare aspect Industrial Relations aspect

Copyright 2009, Tapomoy Deb

Managing Human Resources & Industrial Relations

Tapomoy Deb

Excel Books

Part I

Management of Human Resources

Historical Overview of Personnel Management

Definitions of Personnel Management

1. Personnel Management is that phase of management which deals with the effective control of and use of manpower as distinguished from other sources of power. The methods, tools, and techniques designed and utilized to secure the enthusiastic participation of labour. (Dale Yoder) 2. Personnel Management is that aspect of management having as its goal the effective utilization of the labour resources of an organization. (Paul Hastings)

Author defines Personnel Management as:

Personnel Management is a part of management concerned with activities necessary to keep workforce satisfied, motivated and productive.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Characteristics of Personnel Management

1. Personnel management is a part of general management because personnel management is concerned with management of workers and employees and general management is concerned with management of entire organization including people. Personnel management is concerned with getting maximum productive contributions from workers and employees, which requires organizations to develop their knowledge, skills and attitudes. Personnel management establishes cordial relationship between management and workers and employees for improving organizational efficiency. Personnel management being part and parcel of general management, shares the same principles with general management. Personnel management deals with personnel aspects, welfare aspects and industrial relations. Copyright 2009, Tapomoy Deb
Managing Human Resources & Industrial Relations Tapomoy Deb Excel Books

2.

3.

4. 5.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Objectives of Personnel Management

1. To establish cordial relationship between management and workers and employees so that the organization functions economically and effectively. 2. To develop workers and employees in order to increase their skills and abilities for facilitating maximum contributions to the organization. 3. To improve welfare of workers and employees working in the organization so that they are satisfied, productive, and healthy.

4.

To provide for a bridge between management and workers and employees

with the purpose of strengthening understanding and trust between both the parties.

5.

To foster an environment of belongingness and ownership amongst workers and employees towards the organization.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Models of Personnel Management

Legge has given four models of personnel management as depicted in figure. These models help in evaluating the purposes and functions of personnel management.
Normative Model Describes personnel management in terms of normative framework Descriptive Functional Model Views personnel management in terms of specialized approach to solve organizational problems Models of Personnel Management Descriptive Behavioural Model Views personnel management as a difference in perception between practitioners and line managers

Models of Personnel Management

Critical Evaluative Model Describes personnel management as secondary to economic objectives and often requires state help
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Functions of Personnel Management

Functions of Personnel Management

Managerial Planning Organizing Directing Controlling Coordinating

Staff Policy formulation Consultancy Service Development Control

Line Workforce planning Ensuring proper working conditions Workforce recruitment Arranges training Compensation administration Communication Personnel research
Cont.

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Excel Books

Part I

Management of Human Resources

Historical Overview of Personnel Management

Personnel Experience is Important! 1-8 Managing Human Resources & Industrial Relations Tapomoy Deb

Copyright 2009, Tapomoy Deb

Excel Books

Part I

Management of Human Resources

Historical Overview of Personnel Management

Personnel Policies, Procedures and Programmes

The main aim of personnel management is to ensure that workers and employees contribute their best in attaining the goals and objectives of the organization successfully. 1. Personnel policies help in fostering cordial relationship between management and workers and employees in the best interest of organizational development and growth; 2. 3. 4. Personnel policies provide a rationale and valid basis on which decisions affecting workers and employees are taken by the management; Personnel policies provide standardization of management decisions; Personnel policies help the top management in delegating their authority to various levels of the management for empowerment of lower levels of management and speedy decision making; Personnel policies help in motivating workers and employees in enhancing their productivity since personnel policies are designed for their welfare and Cont. betterment. Copyright 2009, Tapomoy Deb
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5.

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Part I

Management of Human Resources

Historical Overview of Personnel Management

There are various types of personnel policies. Personnel policies may be

classified based on their origin. Broadly, there are six types of policies:
Originated policies Appealed policies

Imposed policies
General policies Specific policies

Explicit or Implicit policies

Cont.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Identifying need and scope

The first step of formulating personnel policy involves identification of the need and earmarking its scope.
A personnel policy developed without need will be useless and a wastage of organizational resources and managerial time.

Armstrong has classified personnel policies as under: Employment policies Promotion policies

Development policies
Relations policies Policies on social responsibility
Cont.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Collecting Data After identification of need to formulate a given policy/policies, it is time for collecting

data for validating the process of policy formulation. Data can be collected from various sources such as:
Personnel records; Past policy or practices;

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Organizational culture;
Philosophy of top management; Senior managers; Trade unions; Laws; Aspirations of the workers and employees; etc.
Managing Human Resources & Industrial Relations Tapomoy Deb
Cont.
Copyright 2009, Tapomoy Deb

Excel Books

Part I

Management of Human Resources

Historical Overview of Personnel Management

Evaluating Options

After collecting data, information received should be collated for generating a

few options for decision-making.

The options should then be discussed with all those people who are going to

be affected by its formulation, such as workers and employees, trade unions,

line managers, etc. Evaluating Policy Selection Having done intense brainstorming with different groups or individuals, the best policy option should be selected/accepted for policy formulation. While doing so, policy option selected should be subject to thorough evaluation in terms of its contribution to organizational goals and objectives.
Cont.
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Policy Review and Approval Senior line managers and personnel manager under stewardship of top management should review the policy selected/accepted. After incorporating suggestions of the top management, if any, and feedback of other people personnel policy should be formulated and approval of management obtained in writing. The approved personnel policy should be widely circulated to all concerned people through e-mails, bulletins, in-house journals, etc. Personnel policy is implemented from a notified date and personnel department takes initiative in giving wider coverage, training and understanding to workers and employees in respect of personnel policy. Subsequently, depending on needs, feedback and organizational requirements, personnel policy is suitably reviewed, modified, changed or scrapped.
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Communicating Policy

Policy Implementation

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Part I

Management of Human Resources

Historical Overview of Personnel Management

Quality and Role of Personnel Manager

A Personnel Manager is a manager who is entrusted with the responsibility of managing workers and employees of the organization. Personnel Manager occupies an important position in the organization. Richard P. Calhon enlists the following qualities of a Personnel Manager: Mental ability Personality Character Operational ability Excellent Communication skill Job knowledge Personnel administrator Cost controller Record Keeper Fire Fighter Counsellor and motivator Copyright 2009, Tapomoy Deb
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Part I

Management of Human Resources

Historical Overview of Personnel Management

Importance of Personnel Management

1.

2.
3.

4. 5.
6. 7. 8.

It facilitates the rapid development of an organization by integrating human efforts with organizational goals and objectives; It ensures balancing of needs and demands of management and workers and employees aptly; It helps in quickly identifying and finding solutions at the earliest of various workers and employees problems which may otherwise adversely impact functioning of the organization; It aids in fulfillment of objectives of trade unions; It provides dignity of labour to workers and employees which is necessary for the success of the organization; It develops emotional bonding of the workers and employees with their organization; It establishes harmonious relations between capital and labour; and It facilitates effective and economical utilization of labour and material resources of the organization.
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