Personnel Management - 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.

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.

ObjectivesSocial objectives include creation of employment opportunities maximising productivity satisfaction to work force, avoidance of wastage of efforts and promotion of good human relations.

Personnel objectives include adequate remuneration, job security, training and development of personnel, job satisfaction, opportunities for advancement and proper work environment.

Enterprise objectives include integration, recruitment and maintenance of competent workers and balancing the supply and demand of personnel.

Union objectives are recognition of unions, formulation of personnel policies, and inculcating the spirit of cooperation.

Functions of Personnel Management:Personnel management involves two categories of function:1. Operative Function-The operative function essentially belong to such activities concerned with procuring, developing compensating, utilizing and maintaining an efficient work force. Procurement-Procurement means recruiting the required number of employees with due qualification and experience keeping in view the importance of achieving the objectives set before the organisation. It is mainly concerned with hiring the right people, in the right place, at the right time. Development- Development means activities meant to increase the efficiency and skills of the workers through training and education of employees. It includes activities like training, seminars, group discussions, education etc. Compensating-Includes activities which deal with the method and standard of remuneration and terms of employment. Utilizing- Utilizing means using the services of the employees to the best possible extent. It includes incentives schemes and includes schemes for sharing the profits from higher productivity. Maintaining- Aims at maintaining good working condition for the employees. it includes preparation and implementation of health schemes, safety systems etc.2 Managerial Functions- The managerial functions includes activities like planning, organizing, and coordinating, directing and controlling the employees. They are performed by all types of managerincluding personnel managers. Planning- A plan is a pre-determined course of action to accomplish the set objectives, it specifies what and how operative personnel functions are to be performed. Organizing- Organizing calls for grouping of personnel activities, assignment of different activities to different individuals. Coordination- Coordination is concerned with harmonious and unified action directed towards a common objectives. It ensures that all groups and persons work efficiently, economically and in harmony. Person-to-person communication is most effective for co-ordination. Directing- Directing involves managing managers, managing workers and the work through the means of motivation, proper leadership, effective communication as well as co-ordination. A personnel manager must develop the ability to command and direct others. Motivating- Motivation is the key to successful management of any enterprise. A personnel manager must inculcate in the workers a keen appreciation of an organizations policies. Controling- Control is the process of measuring actual results with some standard of performance, finding the reason for deviations of actual from desired results and taking corrective action when necessary. Thus, controlling enables the realization of plans.

Functions of Personnel ManagementThe significance of these two varieties of functions is that one function cannot work without the others. The personnel manager has to blend the two to the desirable extent.Following are the elements of Personnel Management:1. Organization-Organization is said to be the framework of many activities taking place in view of goals available in a concern. An organization can be called as a physical framework of various interrelated activities. Right frommanpower planningto employees maintainance, all activities take place within this framework. The nature of the organization is dependent upon its goal. The business concern goal being profit- making. Clubs, hospitals, schools, etc. their goal being service. The objective of consultancy being providing sound advice. Therefore, it is organizational structure on which the achievement of goals of an enterprise depends upon. In personnel management, a manager has therefore to understand the importance of organizational structure.2. Job-The second element, i.e., jobs tell us the activities to be performed in the organization. It is said that the goals of an enterprise can be achieved only through the functional department in it. Therefore, seeing the size of organization today, the nature of activities are changing. In addition to the three primary departments, personnel and research department are new additions. Various types of jobs available are :a. Physical jobsb. Creative jobsc. Proficiency jobsd. Intellectual jobse. Consultancy jobsf. Technical jobs3. People-The last and foremost element in personnel management is people. In a organizational structure, where the main aim is to achieve the goals, the presence of manpower becomes vital. Therefore, in order to achieve departmental goals, different kinds of people with different skills are appointed. People form the most important element because :a. The organizational structure is meaningless without it.b. It helps to achieve the goals of the enterprise.c. It helps in manning the functional areas.d. It helps in achieving the functional departmental goals.e. They make a concern operational.f. They give life to a physical organization.

The different types of people which are generally required in a concern are :a. Physically fit peopleb. Creative peoplec. Intellectualsd. Technical peoplee. Proficient and skilled people

In personnel management, a personnel manager has to understand the relationship of the three elements and their importance in organization. He has to understand basically three relationships:-i. Relationship between organization and jobii. Relationship between job and peopleiii. Relationship between people and organization.

Relationship between organization and job helps making a job effective and significant. Relationship between job and people makes the job itself important. Relationship between people and organization gives due importance to organizational structure and the role of people in it.

Nature of Personnel Management1. Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments.2. 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.3. Personnel management exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.4. 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.5. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern.6. It also motivates the employees through its 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, it manages both individual as well as blue- collar workers.

Job analysisis primary tool in personnel management. In this method, a personnel manager tries to gather, synthesize and implement the information available regarding the workforce in the concern. A personnel manager has to undertake job analysis so as to put right man on right job.

There are two outcomes of job analysis :1. Job description2. Job specification

The information collected under job analysis is:1. Nature of jobs required in a concern.2. Nature/ size of organizational structure.3. Type of people required to fit that structure.4. The relationship of the job with other jobs in the concern.5. Kind of qualifications and academic background required for jobs.6. Provision of physical condition to support the activities of the concern. For example- separate cabins for managers, special cabins for the supervisors, healthy condition for workers, and adequate store room for store keeper.

Advantages of Job Analysis1. Job analysis helps the personnel manager at the time of recruitment and selection of right man on right job.2. It helps him to understand extent and scope of training required in that field.3. It helps in evaluating the job in which the worth of the job has to be evaluated.4. In those instances where smooth work force is required in concern.5. When he has to avoid overlapping of authority- responsibility relationship so that distortion in chain of command doesnt exist.6. It also helps to chalk out the compensation plans for the employees.7. It also helps the personnel manager to undertake performance appraisal effectively in a concern.

A personnel manger carries analysis in two ways :a. Job descriptionb. Job specification1. JOB DESCRIPTIONis an organized factual statement of job contents in the form of duties and responsibilities of a specific job. The preparation of job description is very important before a vacancy is advertised. It tells in brief the nature and type of job. This type of document is descriptive in nature and it constitutes all those facts which are related to a job such as :a. Title/ Designation of job and location in the concern.b. The nature of duties and operations to be performed in that job.c. The nature of authority- responsibility relationships.d. Necessary qualifications that are required for job.e. Relationship of that job with other jobs in a concern.f. The provision of physical and working condition or the work environment required in performance of that job.

Advantages of Job Descriptiong. It helps the supervisors in assigning work to the subordinates so that he can guide and monitor their performances.h. It helps in recruitment and selection procedures.i. It assists inmanpower planning.j. It is also helpful in performance appraisal.k. It is helpful in job evaluation in order to decide about rate of remuneration for a specific job.l. It also helps in chalking out training and development programmes.2. JOB SPECIFICATIONis a statement which tells us minimum acceptable human qualities which helps to perform a job. Job specification translates the job description into human qualifications so that a job can be performed in a better manner. Job specification helps in hiring an appropriate person for an appropriate position. The contents are :a. Job title and designationb. Educational qualifications for that titlec. Physical and other related attributesd. Physique and mental healthe. Special attributes and abilitiesf. Maturity and dependabilityg. Relationship of that job with other jobs in a concern.

Advantages of Job Specificationa. It is helpful in preliminary screening in the selection procedure.b. It helps in giving due justification to each job.c. It also helps in designing training and development programmes.d. It helps the supervisors for counseling and monitoring performance of employees.e. It helps in job evaluation.f. It helps the management to take decisions regarding promotion, transfers and giving extra benefits to the employees.

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows:1. The supervisors measure the pay of employees and compare it with targets and plans.2. The supervisor analyses the factors behind work performances of employees.3. The employers are in position to guide the employees for a better performance.

Objectives of Performance AppraisalPerformance Appraisal can be done with following objectives in mind:1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.2. To identify the strengths and weaknesses of employees to place right men on right job.3. To maintain and assess the potential present in a person for further growth and development.4. To provide a feedback to employees regarding their performance and related status.5. To provide a feedback to employees regarding their performance and related status.6. It serves as a basis for influencing working habits of the employees.7. To review and retain the promotional and other training programmes.Advantages of Performance AppraisalIt is said that performance appraisal is an investment for the company which can be justified by following advantages:1. Promotion:Performance Appraisal helps the supervisors to chalk out the promotion programmers for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.2. Compensation:Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.3. Employees Development:The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.4. Selection Validation:Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.5. Communication:For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways:a. Through performance appraisal, the employers can understand and accept skills of subordinates.b. The subordinates can also understand and create a trust and confidence in superiors.c. It also helps in maintaining cordial and congenial labour management relationship.d. It develops the spirit of work and boosts the morale of employees.All the above factors ensure effective communication.6. Motivation:Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

Job evaluation is a process of determining the relative worth of a job. It is a process which is helpful even for framing compensation plans by the personnel manager. Job evaluation as a process is advantageous to a company in many ways:

1. Reduction in inequalities in salary structure -It is found that people and their motivation is dependent upon how well they are being paid. Therefore the main objective of job evaluation is to have external and internal consistency in salary structure so that inequalities in salaries are reduced.2. Specialization -Because of division of labor and thereby specialization, a large number of enterprises have got hundred jobs and many employees to perform them. Therefore, an attempt should be made to define a job and thereby fix salaries for it. This is possible only through job evaluation.3. Helps in selection of employees -The job evaluation information can be helpful at the time of selection of candidates. The factors that are determined for job evaluation can be taken into account while selecting the employees.4. Harmonious relationship between employees and manager -Through job evaluation, harmonious and congenial relations can be maintained between employees and management, so that all kinds of salaries controversies can be minimized.5. Standardization -The process of determining the salary differentials for different jobs become standardized through job evaluation. This helps in bringing uniformity into salary structure.6. Relevance of new jobs -Through job evaluation, one can understand the relative value of new jobs in a concern.

According toKimball and Kimball, Job evaluation represents an effort to determine the relative value of every job in a plant and to determine what the fair basic wage for such a job should be.Thus, job evaluation is different from performance appraisal. In job evaluation, worth of a job is calculated while in performance appraisal, the worth of employee is rated.Personnel Records are records pertaining to employees of an organization. These records are accumulated, factual and comprehensive information related to concern records and detained. All information with effect to human resources in the organization are kept in a systematic order. Such records are helpful to a manager in various decision -making areas.Personnel records are maintained for formulating and reviewing personnel policies and procedures. Complete details about all employees are maintained in personnel records, such as, name, date of birth, marital status, academic qualifications, professional qualifications, previous employment details, etc.

Types of Personnel Records1. Records of employment contain applicants past records, list sources, employees progress, medical reports, etc.2. Wages and salaries records contains pay roll records, methods of wages and salaries, leave records, turnover records and other benefit records.3. Training and development contains appraisal reports, transfer cases, training schedule, training methods.4. Health and safety records include sickness reports, safety provisions, medical history, insurance reports, etc.5. Service Records are the essential records containing bio-data, residential and family information, academic qualifications, marital status, past address and employment records.

Purposes of Personnel RecordsAccording to the critics of personnel records, this system is called as a wastage of time and money. According to personnel records, followers of this : Dale Yoder, an economist of Michigan University, USA has justified the significance of personnel records after making an in-depth study.1. It helps to supply crucial information to managers regarding the employees.2. To keep an update record of leaves, lockouts, transfers, turnover, etc. of the employees.3. It helps the managers in framing various training and development programmes on the basis of present scenario.4. It helps the government organizations to gather data in respect to rate of turnover, rate of absenteeism and other personnel matters.5. It helps the managers to make salary revisions, allowances and other benefits related to salaries.6. It also helps the researchers to carry in- depth study with respect to industrial relations and goodwill of the firm in the market.Therefore, personnel records are really vital for an organization and are not a wasteful exercise.

Methods of TrainingTrainingimplies enhancing the skills and knowledge of the employees for performing a specific job. Training tries to improve employees performance in current job and prepares them for future job. The crucial consequence of training is learning.

Objectives of Employee Training Programmed1. To prepare employees to meet the varying and challenging needs of the job and organization2. To provide knowledge and skills to new entrants and to help them to perform their role and job well.3. To coach employees for more complex and higher level jobs.4. To educate employees new and innovative ways and techniques of performing job.

Benefits of Trained EmployeesTraining is a significant tool for employee development. Training has assumed great importance because of exceptional rate of change in the internal and external organizational environment. The importance/benefits of trained personnel towards organizational development are as follows-a. Trained employees do not require tight control and supervision as they are well aware of how to perform a job.b. Trained employees can show higher performance by making optimum and best utilization of the materials, tools, equipments and other resources provided to them.c. Trained employees minimize wastages of resources in the organization and work both efficiently and effectively.d. Training makes employees more committed to an organization as the employees are provided with growth, advancement and learning opportunities.e. Training develops a line of proficient and skilled managers as it prepares employees for complex and higher level tasks.f. Trained employees adjust to the job better and there are fewer rates of absenteeism and turnover.g. Trained employees produce quality and quantity output.h. Trained employees enable the organization to face competition from rival firms.i. Trained employees can respond and adapt to the changing technology well.j. Trained employees become more proficient and, thus, their earning potential increase.

Steps in Employee Training ProgramsTraining programs involves the following steps:1. Identifying the training needs-The training needs of each employee should be identified. Programs should be developed that are best suited to their needs.2. Prepare the trainer-The trainer must do his home work well. He should know both what to teach and how to teach. Time management is required by the trainer. Training should be delivered in such a manner that the trainee should not loose the interest in the job.3. Prepare the trainee-The trainee should remain active during training. He should know that why is he being trained. He should put across the trainer questions and doubts. The trainee should be put at ease during the training programme.4. Explain and demonstrate the operations-The trainer should explain the logical sequence of the job. The trainee should perform the job systematically and explain the complete job he is performing. His mistakes should be rectified and the complex step should be done for him once. When the trainee demonstrates that he can do the job in right manner, he is left to himself. Through repetitive practices, the trainee acquires more skill.5. Follow up and feedback-The trainee should be given feedback on how well he performed the job. He should be asked to give a feedback on the effectiveness of training programs.

Trainings help employees enhance their capabilities and acquire new learning, skills and knowledge. Trainings help employees come up with unique and innovative ideas, meet targets within the desired time frame and make them efficient resources for the organization.

One needs to understand that lot of time, money and energy go in designing training programs for employees. Managers need to understand where all their team members are lacking and need improvement. One needs to be very clear how training programs would benefit the employees.

Managers need to sit with human resource professionals and design specific training programs keeping in mind the needs and requirements of employees. Training programs conducted just for the sake of it yield no results.

Training programs should not only be designed for existing employees but also for new candidates.

Let us go through various training methods at the workplace:Induction Training -Induction training is often given to new employees to make them feel a part of the organization. How do you think an individual can perform if he/she is not familiar with the policies and rules and regulations of the organization? You cant expect an individual to deliver results on the first day itself. You need to welcome your employees well for them to feel motivated and comfortable. Induction programs need to be designed sensibly. Too much of information on the day of joining will frighten the new employee and believe me, he/she will not come from the next day onwards. Induction programs help new employees to get acquainted with the work culture and fellow workers. Induction programs need to be short, crisp but informative.

Refresher Training -Refresher trainings are designed for existing employees to refresh them and also help them acquire new skills and technologies to keep pace with the changing times. Such training programs prepare employees for more responsible positions.

On the Job Trainings -On the job trainings are given to employees at the workplace itself by their superiors and Bosses. Managers ought to sit with their team members on a regular basis, train them on new technologies, skill sets to help them cope with the changes. On the job trainings are given to employees along with their jobs itself and make them capable to handle bigger responsibilities.

On the Job trainings are imparted by any of the following methods:a. Coaching -Coaching is also defined as learning by doing and handling various ongoing projects. In this method of training, team manager assigns certain job responsibilities to team members, monitors their performance, points out their mistakes, provides them feedbacks and also suggestions for improvement.b. Job Rotation -In this type of training, employees move from one position to another, thus acquiring new skills and learnings. Job rotation acquaints individuals with newer roles and challenges and makes them capable of performing any type of task.Employees need to be encouraged to go through various online learning sites which would help them in their current job responsibilities. One needs to be aware of the latest developments in his/her domain. Reading helps a lot.

Off the job Training -Off the job trainings are given outside the workplace.Off the job trainings can be provided by any of the following methods:a. Seminars/Conferences -Seminars and conferences are effective when training needs to be given to a larger audience. Relevant information, latest developments, new technologies and case studies are discussed on a common platform to acquaint employees with new skill sets.b. Simulation Exercise -Simulation exercises train the employees in an artificial environment which closely resembles the employees actual working conditions.c. Vestibule Trainings -In vestibule trainings, employees practice work on the instrument/equipment which they would be using in future when they would be actually working.Management Games and Role Plays train employees to deal with critical problems and teach them to find innovative solutions.

Role of Personnel ManagerPersonnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can be summarized as :1. Personnel managerprovides assistanceto 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.2. Headvices the line manageras a staff specialist- Personnel manager acts like a staff advisor and assists the line managers in dealing with various personnel matters.3. As acounsellor,- As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries to solve them in best of his capacity.4. Personnel manager acts as amediator- He is a linking pin between management and workers.5. He acts as aspokesman- 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 programs.

Characteristics of personnelmanagement

It is concerned with employees:Personnel Management is concerned with employees both as individuals and also as a group. Personnel Management is function or activity aiding and directing workmen in maximizing their personal contribution and satisfaction in employment, bringing them an equitable, just and humane treatment, and adequate security from employment.It covers all levels of personnel:It refers not only to labor or, what you may call blue collared employees, like craftsmen, foremen, operatives and laborers, but also the white collared employees, like professional and technical workers, managers, officials, clerical workers, sales workers, etc.The concern for the employees is to help them:The employees are helped to develop their potentialities and capacities to the full so that they can derive the greatest satisfaction from their work.It is inherent in all organization:Itis as useful and effective in government departments and non-profit organizations as in a business organization. Moreover, it covers all types of functional management such as production management, financial management, marketing management etc.It is of a continuous nature:Personnel management requires constant alertness and awareness of human relations and their importance in everyday operations.It attempts at getting the willing cooperation of the people for the attainment of the desired goals:This is necessary because work cannot be effectively performed in isolation without the promotion and development of anesprit de corps.