Functions of Personnel Management

On the basis of the various functions which the personnel management generally undertakes, the functional areas of personnel management may be set forth as below:

1. Organizational Planning, Development and Task Specification
2. Staffing and Employment;
3. Training and Development;
4. Compensation, Wage and Salary Administration;
5. Motivation and Incentives;
6. Employee Services and Benefits;
7. Employee Records;
8. Labour or Industrial Relations; and
9. Personnel Research and Personnel Audit.

I. Organizational Planning, Development and Task Specification

“Organizational planning” is concerned with the division of all the tasks to be performed into manageable and efficient units (departments, divisions or positions) and with providing for their integration. Both differentiation and integration are vital for the achievement of pre-deter mined goals.

(i)                 A determination of the needs of an organisation in terms of a company’s short and long-term objectives, utilization of technology (industrial, engineering, industrial psychology, and mechanical engineering) of production, deciding about the nature of product to be manufactured, keeping in view the external environment and public policy.

(ii)               The planning, development and designing of an organizational structure through the fixing of the responsibility and authority of the employees, so that organizational goals may be effectively achieved.

(iii)             Developing inter-personal relationship through a division of positions, jobs and tasks; the creating of a healthy and fruitful inter-personal relationship; and the formation of a homogeneous; cohesive and effectively interacting informal group.

II. Staffing and Employment

            The staffing process is a flow of events which results in a continuous manning of organizational positions at all levels – from the top management to the operative level. This process includes manpower planning, authorization for planning, developing sources of applicants, evaluation of applicants, employment decisions, placement induction and orientation, transfers, demotions, promotions and separations, retirement, lay-off, discharge, resignation, disability, and death,

(i)                 Manpower planning is a process of analyzing the present and future vacancies that may occur as a result of retirements, discharges, transfers, promotions, sick leave of absence, or other reasons, and an analysis of present and future expansion or curtailment in the various departments. Plans are development of present employees, for advertising openings, or for recruiting and hiring new personnel with appropriate qualifications.

(ii)               Recruitment is concerned with the process of attracting qualified and competent for different jobs. This includes the identification of existing sources of the labour market, the development of new sources, and the need for attracting a large number of potential applicants so that a good selection may be possible.

(iii)             Selection Process is concerned with the development of selection policies and procedures and the evaluation of potential employees in terms of job specifications. This process includes the development of application blanks, valid and reliable tests, interview techniques, employee referral systems, evaluation and selection of personnel in terms of job specifications, the making up of final recommendations to the line management and the sending of offers and rejection letters.

(iv)             Placement is concerned with the task of placing an employee in a job for which he is best fitted, keeping in view the job requirements, his qualifications and personality needs.

(v)               Induction and orientation is meant the introduction of an employee to the organisatoin and the job by giving him all the possible information about the organization’s history, objectives, philosophy, policies, future development opportunities, products, goodwill in the market and in the community, and by introducing him to other employees with whom and under whom he has to work.

(vi)             Transfer process is concerned with the placement of an employee in a position in which his ability can be best utilized. This is done by developing transfer policies and proc counselling employees and line management on transfers and evaluating transfer policies and procedures.

(vii)           Promotion is concerned with rewarding capable employees by putting them in higher positions with more responsibility and hither pay. For this purpose, a fair, just and equitable promotion policy and procedure have to be developed; line managers and employees have to be advised on these policies, which have to be evaluated to find out whether they have been successful.

(viii)         Separation process is concerned with the serving of relation ship with an employee on grounds of resignation, lay-off, death, disability, discharge or retirement. Exit interviews of employees are arranged, causes of labour turnover are to be analyzed and advice is given to the line management on the causes of and reduction in labour turnover.

A number of device and sub-systems are used in the systems designs to manage the staffing process. These are:

i)        Planning tables and charts;

ii)      Application blanks;

iii)    Interviews;

iv)    Psychological tests;

v)      Reference checks;

vi)    Physical examination;

vii)  Performance reviews; and

viii)                        Exit interviews

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III. Training and Development

It is a complex process and is concerned with increasing the capabilities of individuals and groups so that they may contribute effectively to the attainment of organizational goals. This process includes:

(i)  The determination of training needs of personnel at all levels, skill training employee counselling, and programmes for managerial, professional and employee development; and

(ii) Self-initiated development activities (formal education), during off-hours (including attendance at school/college/professional institutes); reading and participation in the activities of the community.

IV. Compensation, Wage and Salary Administration

            It is concerned with the process of compensation directed towards remunerating employees for services rendered and motivating them to attain the desired levels of performance. The components of this process are:

1. Job Evaluation through which the relative worth of a job is determined. This is done by selecting suitable job evaluation techniques, classifying jobs into various categories and then determining their relative value in various categories.
2. Wage and salary programme which consists of developing and operating a suitable wage and salary programme, taking into consideration certain facts such as the ability of the organisation to pay, the cost of living, the supply and demand conditions in labour market, and the wage and salary levels in other firms. For developing a wage and salary programme, wage and salary surveys have to be conducted, wage and salary rates have to be determined and implemented, and their effectiveness evaluated.
3. The incentive compensation plan includes non-monetary incentives which have to be developed, administered and reviewed from time to time with a view to encouraging the efficiency of the employee.
4. The performance appraisal is concerned with evaluating employee performance at work in terms of pre-determined norms/ standards with a view to developing a sound system of rewards and punishment and identifying employees eligible for promotions. For this purpose, performance appraisal plans, techniques and programmes are chalked out, their implementation evaluated, and report submitted to the concerned authorities.
5. Motivation is concerned with motivating employees by creating conditions in which they may get social and psychological satisfaction. For this purpose, a plan for non-financial incentives (such as recognition, privileges, symbols of status) is formulated; a communication system is developed, morale and attitude surveys are undertaken, the health of human organisatoin diagnosed and efforts are made to improve human relations in the organisation. The line management has to be advised on the implementation of the plan and on the need, areas and ways an means of improving the morale of employees.

V. Employee Services and Benefits

            These are concerned with the process of sustaining and maintaining the work force in an organisation. They include:

(i)                 Safety provision inside the workshop. For this purpose, policies, techniques, and procedures for the safety and health of the employees are developed; the line management is advised on the implementation and operation of safety programmes; training has to be given to first line supervisors and workers in safety practices; the causes of accidents have to be investigated and data collected on accidents; and the effectiveness of the safety programmes evaluated periodically.

(ii)               Employee counselling is the process through which employees are given counsel in solving their work problems and their personal problems. The line management has to be advised on the general nature of the problems which the employees may face from time to time.

(iii)             Medical services include the provision of curative and preventive medical and health improvement facilities for employees, free or otherwise. A periodical medical check-up of employees, training in hygienic and preventive measures are undertaken.

(iv)             The recreational and other welfare facilities include entertainment services like film shows, sports and games; and housing, educational, transport and canteen facilities, free or at subsidized rates. Suitable policies and programmes are framed and efforts are made to administer these services satisfactorily. The effectiveness of such programmes has also to be evaluated.

(v)               Fringe benefits and supplementary items are made available to employees in the form of:

a.       Old age survivor’s and disability benefits, unemployment and workmen’s compensation;

b.      Pensions, gratuities and such other payments as are agreed upon – death benefits, sickness, accident and medical care, insurance, expenses of hospitalization, voluntary retirement benefits.

c.       Paid rest periods, lunch periods, wash-up time, travel time, get – ready time;

d.      Payments for time during which not work is done – paid vacation or bonus in lieu of vacation, payment for holidays, paid sick and maternity leave; and

e.       Profit-sharing benefits, contribution to employees’ provident funds, employees educational expenditure and special wage payments ordered by the courts.

VI. Employee Records

            In employee records complete and up-to-date information is maintained about employees, so that these that that is, the records may be Utilized, if need be, at the time of making transfer/promotions, giving merit pay, or sanctioning leave.

            Such records include information relating to personal qualifications, special interests, aptitudes, results of tests and interviews, job performance, leave, promotions, rewards and punishments.

VII. Labour Relations

By labour relations is meant the maintenance of healthy and peaceful labour-management relations so that production/work may go on undisturbed.

(i)                 Grievance handling policy and procedures are developed, after finding out the nature and causes of grievances, and locating the most delicate areas of dissatisfaction.

(ii)               Rules and regulations are framed for the maintenance of discipline in the organisation, and a proper system of reward and punishment is developed.

(iii)             Efforts are made to acquire a knowledge of, and to observe and comply with, the labor laws of the country and acquaint the line management with the provisions which are directly concerned with organisatoin. Collective bargaining has to be developed so that all the disputes may be settled by mutual discussions without recourse to the law court. Such bargaining negotiating and administering agreement relating to wages, leave, working conditions and employee employer relationship.

VIII. Personnel Research and Personnel Audit

This area is concerned with:

(i)                 A systematic inquiry into any aspect of the board question of how to make more effective an organisatoin’s personnel programmes – recruitment, selection, development, utilization of, and accommodiation to, human resources;

(ii)               Procedures and policies and finding submitted to the top executive.

(iii)             Data relating to quality, wages, productivity, grievances absenteeism, labour turnover, strikes, lock-outs, accidents etc., which are collected and supplied to the top management so that it may review, alter or improve existing personnel policies, programmes and procedures;

(iv)             Morale and attitude surveys.