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Challenges of modern personnel manager 

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Challenges of 

modern personnelmanager 

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Opening Case

Develop a case study, where an individual after an elaborate selection procedure, tenders in hisresignation after the first month. Form groups of 

6 members, discuss & present your findings for the following points.

What could the reasons be?

How could the HR Department have interviewed? How would the management fill the gap and justify

the “episode”? 

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PERSONNEL MANAGEMENT

- DefinitionPersonnel Management is the

Planning,

Organizing,

Directing and Controlling

Of the Procurement, Development,

Compensation, Integration,

Maintenance & Separation

Of human resources to the end that individual,organizational, and societal objectives are accomplished.

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The Role of the Personnel Manager 

The Personnel Manager has Exclusiveresponsibility of  – 

Personnel records,

Insurance Benefits administrationUnemployment compensation administration

Personnel Research

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Challenges of Modern Personnel

Management Changing Mix of the Work force

Changing Personal Values of the Work

force

Changing expectations of citizen-

employees

Changing levels of productivity

Changing demands of government

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Changing Mix of the workforce.

Increasing levels of formal education for 

the entire work force.

More female employees.

More married female employees.

More working mothers.

 A steadily increasing majority of white-

collar employees in place of the blue-

collar.

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Changing Personal Values of the

Work Force Better morale

Better fit of work time to the employee‟s

“body clock” 

Improving handling of fluctuating

workloads

Increased customer service

Reduced employee absenteeism

Reduced turnover 

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 Approaches to

Personnel Management Mechanical Approach

Paternalism

Social System

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Mechanical Approach toward

Personnel Labour must be classified with capital and land.

Personnel are controllable, predictable, andinterchangeable.

Techniques such as time study, incentive wageswere introduced.

Problems incurred were Loss of jobs through development of new machines

or work techniquesDecreased economic security leading to formation of 

labour organizations

Labour organizations grew at a very slow pace

Decreased pride in work

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Paternalism

Management must assume a

fatherly and

protective attitudeToward employees.

 Activities such as

Company storesCompany homes and

Recreational facilities

were started

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The firm is viewed as a complex centralsystem operating within a complex

environment which can be termed as“outer -extended system” 

The central system cannot be closed &directed in a mechanistic fashion.

Options are available to central systemmembers with the aid of labour unions,government, and various public groups.

Social System

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Organizing the Personnel Unit

Bases of Departmentation

Procurement (employment)

Development (training)

Compensation (wage & salary administration)

Integration (labor relations)

Maintenance (safety)Separation (employee services, retirement)

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Organizing the Personnel Unit

Line & Personnel Staff relationships

Line person may Advise and not Command or 

Order Staff relationship is of Service

Staff advice compels the line person only to

listen & not accept or follow adviceStaff should be able to give truthful advice to

superiors without fear of losing their jobs

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Planning the Personnel

ProgrammePlanning is determination of anything in

advance of action.

Decision Making

Programmes and Policies

The Computer and Personnel

Standards

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Decision Making

1. Recognize & define a problem that

calls for action

2. Determine possible alternative

solutions

3. Collect and analyze facts bearingupon the problem.

4. Decide on a solution

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Programmes and Policies – 

In 4 areas1. Designing enriched jobs

2. The ease with which it can be

implemented in the organization

3. Projected economic benefits to the

firm4. Possible economic risks associated

with the programmes.

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The Computer and PersonnelPayroll

Timekeeping

Taxes

Increases etc.

Personnel

Skills

Education

Interests etc

Fringe benefits

Pensions

Insurance

Medical, etc

Integrated

Computer 

system

Procurement

Basic recordsIdentification of vacancies

 Applicant flow ( when

applied, source, process,

hiring decision, why

rejected etc..

Development- each employee skill profile

Compensation- salary by job, education etc.

Integration- grievance by unit, employee etc.

Maintenance- Govt. reports (accidents,

lost time etc.)

Separation- terminated employee reports

OUTPUTS

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Standards

It is an established criterion or model

against which actual results can be

compared.

Results or Standards cover 

Time and Cost variablesMethod or function

Personnel & Physical factors

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Controlling the Personnel Unit

STRATEGIC CONTROL POINTS 

Procurement Formal placement follow-up of employee job satisfaction

Development Quality losses

Compensation Wage & salary budgets

Integration

Morale surveys Maintenance

Insurance premiums

Separation Number of retirees participating in retirement programmes

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The Personnel Audit &

Human Resources Accounting The Personnel Audit

Systematic survey & analysis of all operative

functions of personnel, with a summarized

statement of findings and recommendationsfor correction of deficiencies

Human Resources Accounting

Suppose a major catastrophe wiped out all thehuman resources in your organization, how

long would it take & how much would it cost to

replace them.

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Dimension Personnel Management HRM

1. Employment

Contract

Careful delineation of 

written contracts

 Aim to go beyond contract

2. Rules Importance of devising

clear rules

„Can do‟ outlook,

Impatience with rule

3. Key Relations Labour Management Customer 

4. Speed of decision Slow Fast

5. Management role Transaction Transformational

6. Job design Division of labor Team work

7. Respect for 

employees

Labor is treated as a tool

which is expendable &replaceable.

People are treated as

assets to be used for thebenefit of an organization,

its employees & the

society as a whole.

8. Shared interest Interests of the

organization areuppermost

Mutuality of interests

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Composition of HR / Personnel Department 

Director HRM

Manager- Manager- Administration Manager-HRD Manager- IR

Personnel

 Appraisal T & D

PR Canteen Medical Welfare Transport Legal

HRP Hiring Grievance Handling Compensation

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Put True / False in the blank space

given below: ___ Labour must be classified with capital

and land according to the Mechanical

 Approach. ___ Changing Mix of the Work force is a

challenge of modern personnelmanagement.

 ___ Management role in HRM istransactional & not transformational.

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Match the term with its appropriate

definition

Personnel

Management

Standard

Personnel Audit

Systematic survey & analysis of all operative

functions of personnel, with a summarized

statement of findings and recommendations

for correction of deficiencies

The planning, organizing, directing andcontrolling Of the procurement, development,

compensation, integration, maintenance &

separation of human resources to the end that

individual, organizational, and societal

objectives are accomplished.

It is an established criterion or model against

which actual results can be compared.

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Thank You