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CL002 Project Management

Prepared by: Prof. Hemang Dalwadi

Personnel Management

Personnel Management
You can dream, create,
design and build the most
wonderful place in the
....but it takes people to
make the dream a reality."
Walt Disney

Personnel Management
Organizational Philosophy:
Organizational functioning consists of three broad identifiable elements




Personnel Management
HRD (Human Resource Development, a profession) and HRM (a major
management activity)
HRD includes HRM
HRD includes personnel inside of organizations, e.g., career development,
training, organization development

Personnel Management
HRD: Areas of Operation
Facility Management
Fiscal Management
Information Services Management
Risk Management
Personnel Management
Sales Management
Program Services
Planning & Development

Personnel Management
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 maintenance 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

Personnel Management
Continuous, on-going
Proactive, anticipating, planning
and advancing continuously
Facilitates greater flexibility
Business needs & commitment
Nurturing & facilitating
Uses pluralist approach
Considers work groups, challenges
and creativity on the job as

Administrative function
Reactive, responding to demands
Set rules and regulations
Procedures, consistency & control
Monitored & controlled
Uses a unitary approach
Uses motivators- compensation,
rewards, simplification


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 exists to advice and assist the line managers in personnel
matters. Therefore, personnel department is a staff department of an organization

Personnel Management
Nature of Personnel Management:
Personnel management lays emphasize 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 provide fullest co-operation

Personnel Management
Nature of Personnel Management:
Personnel management deals with human resources of a concern. In context to
human resources, it manages both individual as well as blue-collar workers

Personnel Management
Role of Personnel Manager:
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
As a counselor, - As a counselor, personnel manager attends problems and
grievances of employees and guides them. He tries to solve them in best of his

Personnel Management
Role of Personnel Manager:
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.

Personnel Management
Functions of Personnel Management:
Manpower Planning
Job Responsibility
Performance Appraisal
Career Development
Employee welfare services
Personal Information System

Personnel Management
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

Personnel Management
Manpower Planning:
Human Resource Planning has got an important place in the arena of
Human Resource Planning has to be a systems approach and is carried out in a set
The procedure is as follows:
1. Analyzing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programmes
4. Design training programmes

Personnel Management
Manpower Planning:
Analyzing the current manpower inventory:
Before a manager makes forecast of future manpower, the current manpower
status has to be analyzed
For this the following things have to be noted
1. Type of organization
2. Number of departments
3. Number and quantity of such departments
4. Employees in these work units
Once these factors are registered by a manager, he goes for the future forecasting

Personnel Management
Manpower Planning:
Making future manpower forecasts:
Once the factors affecting the future manpower forecasts are known, planning can
be done for the future manpower requirements in several work units.
The Manpower forecasting techniques commonly employed by the organizations
are as follows:
Expert Forecasts: This includes informal decisions, formal expert surveys and
Delphi technique

Personnel Management
Manpower Planning:
Trend Analysis: Manpower needs can be projected through extrapolation
(projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure)

Work Load Analysis: It is dependent upon the nature of work load in a

department, in a branch or in a division

Personnel Management
Manpower Planning:
Work Force Analysis: Whenever production and time period has to be analyzed,
due allowances have to be made for getting net manpower requirements

Other methods: Several Mathematical models, with the aid of computers are used
to forecast manpower needs, like budget and planning analysis, regression, new
venture analysis

Personnel Management
Manpower Planning:
Developing employment programmes:
Once the current inventory is compared with future forecasts, the employment
programmes can be framed and developed accordingly, which will include
recruitment, selection procedures and placement plans

Personnel Management
Manpower Planning:
Design training programmes:
These will be based upon extent of diversification, expansion plans, development
programmes, etc.
Training programmes depend upon the extent of improvement in technology and
advancement to take place
It is also done to improve upon the skills, capabilities, knowledge of the workers

Personnel Management
Internal Recruitment
It is a recruitment which takes place within the concern or organization
Internal sources of recruitment are readily available to an organization
Internal sources are primarily three:
Re-employment of ex-employees

Personnel Management
External Recruitment:
External sources of recruitment have to be solicited from outside the organization
External sources are external to a concern
But it involves lot of time and money

Personnel Management
External Recruitment:
Employment at Factory Level
Employment Exchanges
Employment Agencies
Educational Institutions
Labour Contractors

Personnel Management
The Employee selection Process takes place in following order :
Preliminary Interviews:
It is used to eliminate those candidates who do not meet the minimum eligibility
criteria laid down by the organization
The skills, academic and family background, competencies and interests of the
candidate are examined during preliminary interview
Preliminary interviews are less formalized and planned than the final interviews
The candidates are given a brief up about the company and the job profile; and it
is also examined how much the candidate knows about the company
Preliminary interviews are also called screening interviews

Personnel Management
The Employee selection Process takes place in following order :
Application blanks:
The candidates who clear the preliminary interview are required to fill application
It contains data record of the candidates such as details about age, qualifications,
reason for leaving previous job, experience, etc.

Personnel Management
The Employee selection Process takes place in following order :
Written Tests:
Various written tests conducted during selection procedure are aptitude test,
intelligence test, reasoning test, personality test, etc.
These tests are used to objectively assess the potential candidate
They should not be biased

Personnel Management
The Employee selection Process takes place in following order :
Employment Interviews:
It is a one to one interaction between the interviewer and the potential candidate
It is used to find whether the candidate is best suited for the required job or not
But such interviews consume time and money both
Moreover the competencies of the candidate cannot be judged
Such interviews may be biased at times
Such interviews should be conducted properly
No distractions should be there in room
There should be an honest communication between candidate and interviewer

Personnel Management
The Employee selection Process takes place in following order :
Medical examination:
Medical tests are conducted to ensure physical fitness of the potential employee
It will decrease chances of employee absenteeism
Appointment Letter:
A reference check is made about the candidate selected and then finally he is
appointed by giving a formal appointment letter

Personnel Management
Training is generally imparted in two ways:
On the job training:
On the job training methods are those which are given to the employees within the
everyday working of a concern
It is a simple and cost-effective training method
The in-proficient as well as semi- proficient employees can be well trained by
using such training method
The employees are trained in actual working scenario
The motto of such training is learning by doing.
Instances of such on-job training methods are job-rotation, coaching, temporary
promotions, etc.

Personnel Management
Training is generally imparted in two ways:
Off the job training:
Off the job training methods are those in which training is provided away from the
actual working condition
It is generally used in case of new employees
Instances of off the job training methods are workshops, seminars, conferences,
Such method is costly and is effective if and only if large number of employees
have to be trained within a short time period
Off the job training is also called as vestibule training, i.e., the employees are
trained in a separate area (may be a hall, entrance, reception area, etc. known as a
vestibule) where the actual working conditions are duplicated

Personnel Management
Additional Responsibilities of PM:
Classify jobs, prepare wage and salary scales
Disciplinary problems
Negotiate with unions
Develop safety standards and practices
Manage benefit programs
Periodic reviews of the performance of each individual employee
To keep abreast of developments in PM

Personnel Management
Improving Employee Productivity:
Quality of Work Life
Flexible Benefits
Salary Compression
Productivity Measurement

Personnel Management
Quality of Work Life:
Opportunities to employees for their personal growth, achievement, responsibility,
recognition, and reward will lead to high quality job performance from them
Detailed job descriptions with specific tasks and rigid instruction for how to do the
Flexible, diverse work assignment allowing self-regulation, variety and challenges
Worker involvement in planning, decision making and operating procedure
Hierarchical channels of communications
Direct, fast two-way communication

Personnel Management
Quality of Work Life:
Limited on-the-job instruction

Advanced training, educational and career development opportunities

Job specialization in one task
Shift allowed for every employee to complete many task by crossing lines of
Careless or neglected safety and health conditions
Clean, safe and healthy working conditions

Personnel Management
Flexible Benefits:
Different benefits appeal to different people
Everyone's needs are different
Attractiveness of a benefit :

Job experience,
Job fulfillment,
Marital status, and
Family size

Motivated by using company car- young

A title or a professional association membership - an older employee
360 performance appraisal

Personnel Management
Flexible Benefits:
Parking privileges
Extra vacation
Recreational programs
Child care
Job titles
Personal financial planning
Professional or trade association memberships
Tuition refund
Company car

Personnel Management
Work Motivation:
Motivation is mainly psychological
It refers to those forces operating within an individual which impel him to act or
not to act in a certain way
Motivation may be defined as propensity or the level of desire of an individual to
behave in a certain time and in a certain situation
Motivation in an organization is the willingness of an employee to respond to
organizational requirements
The more positive the individuals motivation towards the organization, the more
effective is his performance


Personnel Management
Motivating Employees:
Job enrichment
Quality circles
Work redesign
Flexible work hours
Democratization of work

Personnel Management
Wages and Salary Administration:
Control of cost
Establishment of fair and equitable structure of remuneration
Using wages and salaries as an incentive to greater employee productivity
To maintain a good public image
To attract talented personnel

Personnel Management
Wages and Salary Administration:
Wage legislation:
The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965

Personnel Management
Wages and Salary Administration:
Lanhams five criteria for fixing firms internal wage structure:
Cost of living
Prevailing wage rates
Ability to pay
Attraction and retention of employees

Personnel Management
Welfare in Indian industry implies the provision of medical and educational
services, a congenial work atmosphere etc.
The need for providing such services and facilities arises from the social
responsibility of industry, a desire for upholding democratic values and a concern
for employees
The Encyclopedia of Social Sciences defines labour welfare as The voluntary
efforts of the employers to establish within the existing industrial system, working
and sometimes living and cultural conditions of the employees beyond that which
is required by law, the custom of the industry and the conditions of the market.

Personnel Management
The report of the Committee on Labour Welfare set up by the Government of
India in 1969 refers to welfare as a broad concept, a condition of well-being
It speaks of measures which promote the physical, psychological and general
well-being of the working population
Welfare covers the families of workers, especially in India, where, because of
strong family ties, workers well-being encompasses that of their families.

Personnel Management
Labour welfare implies providing better work conditions, such as proper lighting,
heat control, cleanliness, low noise level, toilet and drinking-water facilities,
canteen and rest room, health and safety measures, reasonable hours of work and
holidays and welfare services, such as housing, education, recreation,
transportation and counselling

Personnel Management
Why Welfare?
In India, welfare is of the statutory and non-statutory kinds

Though statutory welfare ensures a bare minimum of facilities and reasonably

good working conditions, employers are free to provide, or not to provide, nonstatutory welfare
Practically all organizations in India provide non-statutory measures in varying
Point of view of workers, unions and employees

Personnel Management
Statutory Welfare:
After Independence the Government of India passed several acts: The Factories
Act, The Employees State Insurance Act, The Minimum Wages Act, The Payment
of Wages Act and The Industrial Dispute Act to ensure a fair deal to employees in
various aspects of their jobs

The Factories Act

The Employees State Insurance Act

Personnel Management
Statutory Welfare:
Factories Act, 1948:
Welfare measures
Working hours for adults
Employment of women and young persons
Annual leave with wages
Special provisions

Personnel Management
Statutory Welfare:
Employees State Insurance Scheme:
Maternity benefits
Disablement benefits
Dependents benefits
Funeral benefit

Personnel Management
Non-Statutory Welfare:
Non-statutory welfare concerns those activities which are undertaken voluntarily
by employees like housing, recreation transportation and cooperatives
Bhilai Steel Plant

Indian Oxygen Limited

Geep Flash Light Industries Limited

Personnel Management
Employee Grievances:
Nature of Grievance:
Continuity of service
Disciplinary action
Medical Benefits
Nature of Job

Personnel Management
Employee Grievances:
Nature of Grievance:
Acting promotion
Recovery of due
Safety appliance
Condition of work