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1-1 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Chapter
1Historical Overview ofPersonnel Management
1-2 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Meaning of Personnel Management
Personnel management, as the term suggests, is a part of ‘management’,
which is concerned with effective management of ‘personnel’, that is, workers
and employees in an organization.
Personnel management has focus on improving human relations within the
organization in order to motivate workers and employees.
In India, the National Institute of Personnel Management, Kolkata has provided
the following framework (scope or dimension) of personnel management:
i. Personnel aspect
ii. Welfare aspect
iii. Industrial Relations aspect
1-3 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Definitions of Personnel Management
1. “Personnel Management is that phase of management which deals with the
effective control of and use of manpower as distinguished from other sources of
power. The methods, tools, and techniques designed and utilized to secure
the enthusiastic participation of labour.”
(Dale Yoder)
2. “Personnel Management is that aspect of management having as its goal the
effective utilization of the labour resources of an organization.”
(Paul Hastings)
Author defines ‘Personnel Management’ as:
“Personnel Management is a part of management concerned with activities
necessary to keep workforce satisfied, motivated and productive.”
1-4 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Characteristics of Personnel Management1. Personnel management is a part of general management because personnel
management is concerned with management of workers and employees and general management is concerned with management of entire organization
including people.
2. Personnel management is concerned with getting maximum productive contributions from workers and employees, which requires organizations to develop their knowledge, skills and attitudes.
3. Personnel management establishes cordial relationship between management and workers and employees for improving organizational efficiency.
4. Personnel management being part and parcel of general management, shares the same principles with general management.
5. Personnel management deals with personnel aspects, welfare aspects and industrial relations.
1-5 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Objectives of Personnel Management
1. To establish cordial relationship between management and workers and
employees so that the organization functions economically and effectively.
2. To develop workers and employees in order to increase their skills and
abilities for facilitating maximum contributions to the organization.
3. To improve welfare of workers and employees working in the organization
so that they are satisfied, productive, and healthy.
4. To provide for a bridge between management and workers and employees
with the purpose of strengthening understanding and trust between both the
parties.
5. To foster an environment of belongingness and ownership amongst workers
and employees towards the organization.
1-6 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Models of Personnel Management
Legge has given four models of personnel management as depicted in figure.
These models help in evaluating the purposes and functions of personnel
management.
Normative Model Describes personnel
management in terms of normative
framework
Descriptive Functional Model Views personnel management in
terms of specialized approach to solve
organizational problems
Models of Personnel Management
Descriptive Behavioural Model
Views personnel management as a
difference in perception between practitioners
and line managers
Critical Evaluative Model
Describes personnel management as
secondary to economic objectives and often requires
state help
Models of Personnel Management
1-7 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
Functions of Personnel Management
Functions of Personnel Management
Managerial
Planning
Organizing
Directing
Controlling
Coordinating
Staff
Policy formulation
Consultancy
Service
Development
Control
Line
Workforce planning
Ensuring proper working conditions
Workforce recruitment
Arranges training
Compensation administration
Communication
Personnel research
Functions of Personnel Management
1-8 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Personnel Experience is Important!
1-9 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
Personnel Policies, Procedures and ProgrammesThe main aim of personnel management is to ensure that workers and employees contribute their best in attaining the goals and objectives of the organization successfully.
1. Personnel policies help in fostering cordial relationship between management and workers and employees in the best interest of organizational development and growth;
2. Personnel policies provide a rationale and valid basis on which decisions affecting workers and employees are taken by the management;
3. Personnel policies provide standardization of management decisions;
4. Personnel policies help the top management in delegating their authority to various levels of the management for empowerment of lower levels of
management and speedy decision making;
5. Personnel policies help in motivating workers and employees in enhancing their productivity since personnel policies are designed for their welfare and betterment.
1-10 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
There are various types of personnel policies. Personnel policies may be
classified based on their origin. Broadly, there are six types of policies:
Originated policies
Appealed policies
Imposed policies
General policies
Specific policies
Explicit or Implicit policies
1-11 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
Identifying need and scope
The first step of formulating personnel policy involves identification of the need
and earmarking its scope.
A personnel policy developed without need will be useless and a wastage of
organizational resources and managerial time.
Armstrong has classified personnel policies as under:
Employment policies
Promotion policies
Development policies
Relations policies
Policies on social responsibility
1-12 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
Collecting Data
After identification of need to formulate a given policy/policies, it is time for collecting
data for validating the process of policy formulation. Data can be collected from
various sources such as:
Personnel records;
Past policy or practices;
Organizational culture;
Philosophy of top management;
Senior managers;
Trade unions;
Laws;
Aspirations of the workers and employees; etc.
1-13 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Cont….
Evaluating Options
After collecting data, information received should be collated for generating a
few options for decision-making.
The options should then be discussed with all those people who are going to
be affected by its formulation, such as workers and employees, trade unions,
line managers, etc.
Evaluating Policy Selection
Having done intense brainstorming with different groups or individuals, the best
policy option should be selected/accepted for policy formulation.
While doing so, policy option selected should be subject to thorough evaluation
in terms of its contribution to organizational goals and objectives.
1-14 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Policy Review and Approval
Senior line managers and personnel manager under stewardship of top management should review the policy selected/accepted.
After incorporating suggestions of the top management, if any, and feedback of other people personnel policy should be formulated and approval of
management obtained in writing.
Communicating Policy
The approved personnel policy should be widely circulated to all concerned people through e-mails, bulletins, in-house journals, etc.
Policy Implementation
Personnel policy is implemented from a notified date and personnel department takes initiative in giving wider coverage, training and understanding to workers and employees in respect of personnel policy.
Subsequently, depending on needs, feedback and organizational requirements, personnel policy is suitably reviewed, modified, changed or scrapped.
1-15 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Quality and Role of Personnel Manager A Personnel Manager is a manager who is entrusted with the responsibility of
managing workers and employees of the organization. Personnel Manager occupies an important position in the organization.Richard P. Calhon enlists the following qualities of a Personnel Manager: Mental ability Personality Character Operational ability Excellent Communication skill Job knowledge Personnel administrator Cost controller Record Keeper Fire Fighter Counsellor and motivator
1-16 Excel Books Managing Human Resources & Industrial Relations Tapomoy Deb
Copyright © 2009, Tapomoy Deb
Historical Overview of Personnel Management
Part I Management of Human Resources
Importance of Personnel Management1. It facilitates the rapid development of an organization by integrating human efforts with organizational goals and objectives;
2. It ensures balancing of needs and demands of management and workers and employees aptly;
3. It helps in quickly identifying and finding solutions at the earliest of various worker’s and employee’s problems which may otherwise adversely impact
functioning of the organization;
4. It aids in fulfillment of objectives of trade unions;
5. It provides dignity of labour to workers and employees which is necessary for the success of the organization;
6. It develops emotional bonding of the workers and employees with their organization;
7. It establishes harmonious relations between capital and labour; and
8. It facilitates effective and economical utilization of labour and material resources of the organization.