Personnel

Management
 What is it?
Administrative discipline of hiring and developing employees so
that they become more valuable to the organization. It includes
conducting job analyses, planning personnel needs, and
recruitment, selecting the right people for the job, orienting and
training, determining and managing wages and salaries,
providing benefits and incentives, appraising performance,
resolving disputes, communicating with all employees at all levels.
According to Flippo, “Personnel management is the
planning, organizing, compensation, integration and maintenance
of people for the purpose of contributing to organizational,
individual and societal goals.”
 Nature of Personnel Management
1. 1. Includes the function of employment, development and
compensation.
2. Is an extension to general management. It is concerned with
promoting and stimulating competent work force to make their
fullest contribution to the concern.
3. To advice and assist the line managers in personnel matters.
Therefore, personnel department is a staff department of an
organization.
4. Lays emphasize on action rather than making lengthy schedules,
plans, work methods.
5. It is based on human orientation.
6. It also motivates the employees through it’s effective incentive plans
so that the employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In
context to human resources.
 Functional responsibilities concerned
with the personnel management

• Managerial Functions- Includes planning;

formulating policies for future development of the enterprise,
program to choose adequate number of persons,
provide training to the workers in the enterprise, integration and
maintenance of work force.

• Operative functions-It has to provide a clear layout about the

inter-relationship between persons, jobs and physical factor and
every worker should have proper understanding of their job.
Characteristics of good Personnel
Management
1.Stability, to appoint or replace key personnel executives
with minimal loss
2.Flexibility, capability to handle problems encountered
within the enterprise.
3.Simplicity, balancing the perfect line of relationship
among the workers.
4. Objectivity, feature of having definite objectives for all
the levels or units in the enterprise.
 Role of Personnel Manager
 Provides assistance to top management. All kinds of policies
related to personnel or workforce can be framed out effectively
by the personnel manager.
 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.
 As a counselor attends problems and grievances of employees
and guides them, tries to solve them in best of his capacity.
 Acts as a mediator, linking pin between management and
workers.
 Acts as a spokesman, since s/he is in direct contact with the
employees, s/he is required to act as representative of
organization in committees appointed by government.
 Represents company in training programmes.
 Difference Between PM & HRM
POINT OF DIFFERENCE PM HRM
NATURE UNITARIST PLURALIST

FUNCTION INDEPENDENT SYSTEMS THINKING

APPROACH/ INTEGRATED
WORKFORCE TREATMENT OBJECTS RESOURCE

AUTHORITY & POWER CENTRALIZED DECENTRALIZED

RESPONSE REACTIVE PROACTIVE

LEADERSHIP & TRANSACTIONAL TRANSFORMATIONAL

MANAGEMENT
TERM OF CONTRACT RIGID FLEXIBLE

PAY & PERFORMANCE TASK ORIENTED PERFORMANCE ORIENTED

EMPLOYEE SATISFACTION BASIC: SALARY, IMPROVEMENT: STRATEGY,

COMPENSATION CREATIVITY
SCOPE NARROW WIDE SPECTRUM