Personnel Management

Personnel management is an administrative specialization that focuses on hiring and developing

employees to become more valuable to the company. It is sometimes considered to be a sub-category of
human resources that only focuses on administration. It covers all levels of personnel, including blue-
collared employees (craftsmen, foremen, operatives and labourers), and white-collared employees
(professional, technical workers, managers, officials and proprietors, clerical workers and sales workers).

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a
significant part of management concerned with employees at work and with their relationship within the
organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration

and maintainance of people for the purpose of contributing to organizational, individual and societal
goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human
resource of organization.”
Objectives of Personnel Management

1. H R Planning.
1. Legal compliance 2. Employee Relation
2. Benefits 3. Selection
3. Industrial relations 4. Training &
Societal Organizational Development
5. Appraisal
6. Placement
7. Assessment
1. Training and dev.
2. Appraisal Personal Functional
3. Placement 1. Appraisal
4. Compensation 2. Placement
5. Assessment 3. Assessment
(i) Societal (Macro Level):
Personnel management should recognise the changes in the nature of employment
contract, and ideals such as social justice defined in the constitution, objectives set
out in the national economic plans and legislation limiting the employer
prerogatives and managerial discretion in personnel policies and decisions.
Example, Legal compliance, Benefits Industrial relations

(ii) Organisational (Micro Level):

Personnel management contributes to organisational effectiveness by building up
employee motivation, commitment and role effectiveness through sharing of
information regarding mutual rights, obligations and the philosophy underlying
personnel policies, procedures and practices. Example, H R Planning, Employee
Relation, Selection, Training & Development, Appraisal, Placement
(iii) Functional:
Initiating and formulating personnel policies, preferably on the basis of
consensus and with the approval of the chief executives. Providing support
services such as recruitment, selection, training, development, reward
systems, etc. Example, Appraisal, Placement, Assessment

(iv) Personal:
To assist employees in developing congruence between individual goals and
organisational objectives and in striving for realizing higher standards of
performance, satisfaction and quality of working life. Example, Training and
development, Appraisal, Placement, Compensation
FUNCTIONS OF PERSONNEL MANAGEMENT

Manpower Planning

Recruitment, Selection,

HRIS – Human Resources Information Systems

Wage & Salary Administration

Training & Development

Performance Management

Work Environment

Employee Services

Employee Satisfaction, Motivation & Discipline

Industrial Relations
Manpower Planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of
people, right kind of people at the right place, right time, doing the right things for which they are suited for
the achievement of goals of the organization. Human Resource Planning has got an important place in the
arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set
procedure.

Recruitment & Selection

The process of finding and hiring the best-qualified candidate (from within or outside of an organization) for a job
opening, in a timely and cost effective manner. The recruitment process includes analyzing the requirements of a job,
attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the
organization. Selection is the process of picking up individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization

HRIS (Human Resources Information System)

The HRIS is a system that is used to collect and store data on an organization’s employees. In most cases, an HRIS
encompasses the basic functionalities needed for end-to-end Human Resources Management (HRM).
Wage and Salary Administration
Human resource management determines what is to be paid for different type of jobs. Human resource
management decides employees compensation which includes - wage administration, salary administration,
incentives, bonuses, fringe benefits, and etc

Training and Development

This function of human resource management helps the employees to acquire skills and knowledge to perform
their jobs effectively. Training and development programs are organized for both new and existing employees.
Employees are prepared for higher level responsibilities through training and development.

Performance management
Performance management is a corporate management tool that helps managers monitor and evaluate
employees' work. Performance management's goal is to create an environment where people can perform to
the best of their abilities to produce the highest-quality work most efficiently and effectively.

Industrial relations
Industrial relations is that field of study which analyzes the relationship among the management and the
employees of an organization at the workplace and also provides a mechanism to settle down the various
industrial disputes
Difference between PM and HRM

Personnel
Management
(PM)

Human Resource
Management
(HRM)
 Benchmarks Personnel Human Resource Management
Management (PM) (HRM)

Evolutionary Succeeded Industrial Relation but Succeeded PM , gained

preceded HRM worldwide acceptance and
recognition
Emphasis Routine activities Employees are treated as
valuable assets
Outcome of Value for money Added Value
People
Management
People Focused on service delivery , not Numerous small and tactical
Management project Management projects
Activities
Measurement Efficiency of employees activities Effectiveness of employees
and compliance Output against business plan

Reporting Regulators Investors and stakeholders

References Ingham, J. (2006). Strategic Human Capital Management: Creating Value through People. Butterworth Heinemann.
Qualities of Personnel Managers
1. Onboarding and Recruitment
The very first thing that we think about the duties of HR is to conduct interviews without any hassle. HR helps a
company to conduct interviews and finding suitable and eligible candidates for them. The interview process is quite a
crucial part of selecting the right candidate and mainly benefits the organization. Once the recruiting function is done,
the onboarding process takes place as it is a vital step. And a peaceful onboarding will help the candidate better
understand the work culture and their goals and objectives for the company's welfare.

2. Building HR policies and maintain them

To improve employee productivity, it becomes crucial for HR to build policies that can help reduce conflicts and legal
issues and protect the interest of employees in the organization. The very must policies must include the below points
such as
•Employee punctuality and performance
•Break timings
•Anti-harassment and non-discrimination policies
•Sick leaves and paid leaves
•Tracking time management

3. Development and Training Programs

An employee is always looking for growth opportunities in his company which is only possible if they get proper
training. A wise employee will always look forward to growing and develop themselves. Here HR plays a significant
role in helping other departments conduct different and various development programs. The HR management of the
company collaborate with different departments and try to set up primary and necessary training sessions according
to the need of company. They always try to ensure that every employee can enhance their skill set and perform
better.
4. Managing the Workforce
When a company recruits employees for their company, then managing the workforce become such a tough job. And
can become a massive task in the long run. For such cases, HR plays a very vital role it. The role and responsibilities
of an HR manager are to look upon the finances and legal regulation of the organization. They have to deal with all of
the employees within the company. The data of employees are stored with the special tools created for HR. they help
them keep in mind that there shouldn't make any incongruity anywhere, and the system can remain transparent for
every employee. This is important so that everyone in the organization can approach HRs with their problem or
queries and get a proper resolution.
5. Providing Conflict Resolution
Conflict free environment is the next challenge for any organization. There is always be instances where a conflict
occurs. The only way an organization can tackle competition is by dealing with and resolving them. That is why it
becomes essential to approach an HR manager of professional. Mainly the HRs is trained to handle any conflict-
related problem. They always talk where a peaceful resolution can meet between the two parties and cannot disturb
the company's workflow. Because having conflict can demote the name of the company, and the organization can
face several issues.
6. Helping employees with the Basic needs
Every company should approach for a healthy work environment as it is imperative. It should be a place where
employees can develop their skills and not drag themselves every day for the week. All of the essential tools and
needs of the employees should be present at the workplace where they can enhance their performance. All the
professional HR managers make sure that the requirement of the employees is set according to them. They always
make sure that they don't feel like they are missing out on something. Also, it produces a high level of morale in
every employee.
7. Monitoring performance
For identifying the scopes of improvement, the HR roles and responsibility include monitoring the
employee performance to arrange the workshops to upskill them. By creating a peaceful and healthy
environment in an organization, the employee can get more chance to increase their skill and learn
something new. Hence monitoring performance can give you a brief analysis of the performance of the
employee

8. Infusing the Work Culture in Organization

The role of the HR manager also includes the responsibility to maintain the work culture of the
organization. If you hire an employee, it becomes a crucial point to create a positive impression of the
company for the starting day to more understand what to expect. It is also imperative to have an open-
door policy to express their problems more without any hassle or difficulty. Maintaining the work culture
in an organization can help the employee get job satisfaction and develop their skill more.

9. Rewards and Recognition

The reward and recognition system mainly helps employees create a desire to perform better at their job
to get good incentives. As an HR manager, you can add anything in the reward just like you can give
them leave, the token of appreciation and recognition. Also, you can provide them with the power to
choose which type of reward they want, such as a bonus or flexible shift timing, which will increase job
satisfaction and boost the organization's productivity.
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