Personnel Management Definition Personnel management can be defined

Personnel Management

Definition • 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 maintainance 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. ”

Nature of Personnel Management 1. 2. 3. 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 exist to advice and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.

Nature of Personnel Management 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 it’s effective incentive plans so that the employees provide fullest cooperation. 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.

Role of Personnel Manager • Personnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can be summarized as :

Role of Personnel Manager 1. 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.

Role of Personnel Manager 2. 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 matters. 3. As a counsellor, - As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries to solve them in best of his capacity.

Role of Personnel Manager 4. Personnel manager acts as a mediator- He is a linking pin between management and workers. 5. 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.

Functions of Personnel Management • Follwoing are the four functions of Personnel Management: • Manpower Planning • Recruitment • Selection • Training and Development

• Objectives of HRM : 1. People orientation 2. Good employee relations 3. Personal decisions 4. Human dignity 5. Delegation of authority 6. Feedback of performance

Human Resource Management- Objectives and functions`

Recruitment

Sources of Recruitment • Internal: - Retrenched employees; Retired; Dependents of deceased; Up-gradation Transfer; Promotion of existing employees • External: - Employees in other organization Job aspirants with employment exchanges Students of educational institutions Candidates referrals Search firms; contractors Head hunters Candidate responding to adverts Unsolicited applications, walk-ins

Methods of Recruitment 1. Internal methods: - Promotions & transfers Job postings Employee referrals 2. Direct methods: - Campus recruitment 3. Indirect methods: - Advertisements in newspapers; TV; radio 4. Third party methods: - Pvt employment search firms Employee exchanges Gate hiring & contractors Unsolicited applicants / walk-ins Internet recruitment

Alternatives to recruitment • • • Overtime Subcontracting Temporary employees Employee leasing Outsourcing

Selection & Placement

Selection • Process of picking individuals who have relevant qualifications to fill jobs in an orgn • Choose individuals who can most successfully perform the job, from the pool of qualified candidates • Selection is usually a series of hurdles & tests; each one must be carefully cleared before the applicant proceeds to the next • Steps: - Reception: making a favourable impression among the candidates Screening interviews: Asking details for suitability; screening biodatas to remove clutter, reduce time Application blank: Brief history sheet of the applicant’s background; could be standardized to save time and ensure all data is informed

Selection • Steps (contd. ) - Selection tests: A standardized objective measure of a person’s behaviour, performance or attitude: - Intelligence tests: Mental ability tests; learning, taking instructions, etc. - Aptitude teats: Potential to learn certain skills: programming, Typing, etc. - Personality tests: Measure basic aspects like motivation, intorversion, emotional balance, inter-personal behaviour, self-confidence - Achievement tests: What can do in the current assignment - Simulation tests: Duplicate many activities employees face in workplace - Assessment centers: Group & individual exercises to test , simulate the type of work which the candidate is expected to do: --In-basket; leaderless GD’s; business games; presentation; interviews - Graphology - Polygraph (lie-detector tests; Integrity tests

Selection: • Steps (contd. ) - - Interviews: Oral examination of candidates for employment Interviewer tries to obtain & synthesize information about the abilities of the interviewee & the requirements of the job Gives opportunity to the interviewer to: - Size up the interviewee’s agreeableness - Ask questions that are not covered in the tests - Obtain as much information as possible - Assess subjective aspect of the candidate – facial expression, nervousness - Make judgments on the interviewee’s enthusiasm & intelligence - Give facts to the candidate regarding the company, policies, programme, etc. and promote goodwill towards the company Medical Examination Reference checks

Types of interviews • The non-directive: Ask questions as they come in the mind • Directive / structured: a predetermined set of questions that are clearly job related • Situational: Hypothetical incident – how would the interviee respond • Behavioural: Focus on actual work incidents • Stress: Find how applicant would respond to aggressive, embarrassing, rude & insulting questions • Panel interview

Some interview mistakes • • • Favour applicants who share own attitudes Find difficult to establish rapport Not asking right questions Resorting to snap judgments Forgetting interview contents soon after the event Show leniency to candidate May have own bias Halo / Horn effect Candidate order error Being influenced more by unfavourable than favourable information Under pressure to hire candidates at short notice Being influenced by other factors, not job related

Placement • Posting of employee into a specific job • Line managers take the decision – match job and qualification of the candidate • If improperly placed, jobs will suffer

Personal training Training and development may be defined as an attempt to improve current or future performance of employee’s attitude or increasing his/her skills and knowledge. Training and development refers to the imparting of specific skills, abilities and knowledge to an employee. It is necessary to make a distinction among training, education and development Training refers to the process of imparting specific objectives and skills. Education is confined to theoretical learning in classroom and having broad objectives. Development refers to those learning opportunities designed to help employees grow. Developing provides general knowledge and attitudes, which will be helpful to employees in attaining higher positions. No training program is complete without an element of education.

Personnel Training • Personal development training is also provided through our team and covers a wide range of training programmes, including: • • • Assertiveness/Confidence Building Time Management Facilitation Skills Presentation Skills Counselling Skills Communication Skills Recruiting Skills Interview techniques Personal Selection skills

Importance of Training : Training helps employees in removing performance deficiencies, as Lack of ability rather than lack of motivation to perform. Aptitude and motivation needed to learn the job Imparting training also benefits industry 1. Employees become efficient, thereby contribute to the growth of organization. Growth renders stability to the workforce. 2. Employees become versatile in operations. 3. All rounder can be transferred to any job. Therefore, flexibility is ensured. 4. Accidents, scarp and damage to machinery can be avoided or minimized. Training is an investment in HR with a promise of better returns in future.

• Training program-steps 1) Explain the trainee what is the job, how is the job done and why is it done (relevance). 2) Show the job should be done (demonstration). 3) Allow the trainee to do the job (practice). 4) Follow up by explaining what was done correctly and what was done incorrectly. Corrections always should be made as privately as possible (feedback).

Training program – Methods On-job training : Majority of industrial training programs are onthe job training, because it is directly related to the productivity. It refers to methods that are applied at the workplace, while the employee is actually working. An experienced worker shows a trainee how to perform the job tasks like Job-instruction training, apprentice training, internships, assistantships and job rotation are a few methods of on-job training. Advantages : It is most effective method as the trainee learns by experience. It is least expensive, as no formal training is organized. The trainee is highly motivated to learn, Since direct relevance to the job is explained. The training is free from the artificial classroom situation. Disadvantages : The experienced employee may lack expertise or inclination to train the juniors. Program is not systematically organized. Safety hazards should be prevented due to stress to the trainees. Training period produces damaged products.

• Off-the job training : This method is commonly used for the training of employees. It refers to methods that are applied away from workplace. Examples are lectures, films, audio cassettes, videotapes, case studies, conferences, discussions, role play, laboratory training are the off-the job methods. • Advantages : This is less expensive. The defects in products are nil. Normally used for experienced personnel for further improvement and growth. • Disadvantages : Hands-on experience cannot be imparted.

Remuneration is the compensation an employee receives in return for his/her contribution to the organization. Compensation or incentives are defined as variable rewards granted according to variations in the achievement of specific results. This concept is also known as payment by results.

JOB EVALUATION

Job Evaluation Job evaluaton is a systematic way of determining the value/worth of a job in an organisation.

Process of Job evaluation • Decide which jobs are to be evaluated • Job Analysis and preparing job description. • systematically rate each job based on the job evaluation factors selected. The points assigned for each of the factors are totalled for each job. • A Job is evaluated in the following three categories

• 1. Know-how • Know-how is the sum total of every kind of knowledge and skill however acquired, e. g. experience, education, etc. needed for accept-able job performance. Know-how includes three elements: • A. Specialized, technical or practical know-how: the basic job knowledge needed. • B. Managerial know-how: The degree with which the job deals with planning and organizing the employee’s activities and coordinating with others. • C. Human relations skills: The persuasion and communication skills for motivating, training, and developing others.

• 2. Problem Solving Problem solving is the amount of original self-starting thinking required by the job for analyzing, evaluating, creating, reasoning, arriving at and coming to conclusions. Problemsolving has two elements: • A. Thinking environment – defines the degree to which the incumbent is free to develop answers to problems, ranging from the day-to-day decisions based on simple memory to those which require creative thinking or long-range strategies. • B. Thinking challenge – defines the complexity and uniqueness of problems and may range from repetitive to highly creative.

• Accountability is the answerability for action and for the consequences of that action. Accountability has three elements: • a) Freedom to act is the degree to which the position can take action without consulting a higher authority. • b) Impact on end results- advisory or decision c) Magnitude is the size of the area in which the job functions, i. e, whole organization, single department, etc.

• Compare and see how much value does this job have in the industry. • Decide the amount of compensation to be given

Process of Job evaluation • Selecting the method of evaluation. • Classifying jobs. • Installing the programme. • Reviewing periodically.

Features of Job Evaluation • It tries to assess jobs, not people. • The standards of job evaluation are relative, not absolute. • The basic information on which job evaluations are made is obtained from job analysis.

Features of Job Evaluation • Job evaluations are carried out by groups, not by individuals. • Some degree of subjectivity is always present in job evaluation. • Job evaluation does not fix pay scales, but merely provides a basis for evaluating a rational wage structure.

Benefits of job evaluation • It tries to link pay with the requirements of the job. • It offers a systematic procedure for determining the relative worth of jobs. • An equitable wage structure is a natural outcome of job evaluation • An unbiased job evaluation tends to eliminate salary inequalities by placing jobs having similar requirements in the same salary range.

Benefits of job evaluation • Employees as well as unions participate as members of job evaluation committee. • Job evaluation, when conducted properly and with care, helps in the evaluation of new jobs. • It points out possibilities of more appropriate use of the plant’s labour force by indicating jobs that need more or less skilled workers than those who are manning these jobs currently.

JOB EVALUATION METHODS 1 - RANKING METHOD 2 -CLASSIFICATION METHOD 3 -POINT METHOD 4 -FACTOR COMPARISON METHOD

RANKING METHOD – It is the simplest method of job evaluation. – In this method, jobs are arranged from highest to lowest, in order of their value or merit to the organisation. – Jobs can also be arranged according to the relative difficulty in performing them. – Jobs are usually ranked in each department and then the department rankings are combined to develop an organisational ranking.

JOB CLASSIFICATION – According to this method, a predetermined number of job groups or job classes are established and jobs are assigned to these classifications. – This method places groups of jobs into job classes or job grades. – Separate classes may include office, clerical, managerial, personnel, etc.

JOB CLASSIFICATION Following is a brief description of classification in an office: § Class 1 - Executives: Office manager, deputy office manager, department supervisor, etc. § Class 2 - Skilled workers: Purchasing assistant, cashier, receipts clerk, etc. § Class 3 - Semiskilled workers: Stenotypists, machine operators, switchboard operator, etc. § Class 4 - Semiskilled workers: file clerks, office boys, etc.

POINT METHOD – This method is widely used currently. – In this method jobs are expressed in terms of key factors. – Points are assigned to each factor after priortising each factor in order of importance. – The points are summed up to determine the wage rate for the job. – Jobs with similar point totals are placed in similar pay grades

Factor Comparison Method • It is more systematic and scientific method of job evaluation. • Though it is the most complex method of all, it is consistent and appreciable. • Under this method, instead of ranking complete jobs, each job is ranked according to a series of factors.

These factors include: >mental effort. >physical effort. >skills needed. >responsibility. >working conditions. >know-how. >problem solving abilities. >accountibility, etc. Wages are assigned to the job in comparison to its ranking on each job factor.

Comparison of Job Evaluation Methods Advantage Disadvantage Ranking Fast, simple, easy to explain, suitable for small org, not expensive. Not very accurate , not useful for large org. , least used method Classification Can group a wide range of work together in one system, simple, more accurate than raking method. Not useful for large org, time consuming, not involved detailed job analysis. Point Compensable factors call Can become bureaucratic out basis for and rule-bound. comparisons. Compensable factors communicate what is valued.

Comparison of Job Evaluation Methods Factor comparison method Advantage Disadvantage Finds wages for a job, wages can be calculated speedily, greater consistency in the judgment, size of jobs can be measured. Expensive, time consuming,

Understanding Behavior, Human Relations, and Performance 1

Human relations means interactions with people

Myths of Human Relations • Myth 1: Technical skills are more important than human relations skills • Myth 2: Human relations is just common sense • Myth 3: Diversity is overemphasized • Myth 4: Leaders are born, not made

Goal of Human Relations • Create a win-win situation by: – satisfying employee needs – while achieving organizational objectives • Win-win situation: – occurs when the organization and the employees get what they want

The Total Person Approach • Realizes that an organization employs the whole person, not just his or her job skills • People play many roles – throughout their lives – throughout each day • Organizations are trying to give employees a better quality of work life

Levels of Behavior Individual Group Organizational Human relations take place at the group and organizational levels

Individual and Group Level Behavior • Group behavior – consists of the things two or more people do and say as they interact • Individual behavior – influences group behavior

Organizational Level Behavior • Organization – a group of people working to achieve one or more objectives – Created to produce goods and services for the larger society • Organizational behavior – the collective behavior of an organization’s individuals and groups

Group, Individual and Organizational Levels of Behavior Exhibit 1. 1

Human relations has an effect on performance

Performance (1 of 2) • Performance – the extent to which expectations or objectives have been met – Measured on a continuum contrasted by high and low levels of performance – Ranked on a scale of 1 through 10 • Performance is absolute when objectives are met • Performance is a relative term

Performance (2 of 2) • Performance levels are more meaningful when compared to: – past performance – the performance of others within and/or outside the organization

The Systems Effect (1 of 2) • A system is a set of two or more interactive elements • The systems approach focuses on the whole system – emphasis is on the relationship between its parts • Systems effect – all people in the organization are affected by at least one other person – each person affects the whole group/organization

The Systems Effect (2 of 2) • The organization’s performance is based on the combined performance of each individual and group – To have high levels of performance, the organization must have high-performing individuals and groups • The destructive behavior of one individual/ group hurts other groups, departments, and in turn the organization

Systems thinking is needed to understand performance

Elton Mayo (1 of 2) • The father of human relations • Conducted research at the Western Electric Hawthorne Plant • Hawthorne effect – refers to an increase in performance caused by the special attention given to employees, rather than tangible changes in work

Elton Mayo (2 of 2) • Other key conclusions from his studies: – Employees have many needs beyond those satisfied by money – Informal work groups have a powerful influence within the organization – Supervisor-employee human relations affects the quality and quantity of employee output – Many employee needs are satisfied off the job – Employee relations affect employee performance

The 1930 s to the 1970 s • Growth of labor unions • Leadership and motivation studies • Management-by-Objectives • Theory X and Theory Y • Transactional analysis (TA) and sensitivity training • Quality circles • The term human relations replaced by the term organizational behavior

The 1980 s to the 1990 s (1 of 2) • 1980 s – Theory Z - integrates common business practices into one middle-ground framework appropriate for use

The 1980 s to the 1990 s (2 of 2) • 1990 s – Trend toward increased participation of employees to improve human relations and organization performance continued – Movement from participative management to highinvolvement management • High-involvement management – greater levels of participation at the lowest levels of the organization – Use of groups and teams increased

Current and Future Challenges in the 21 st Century • Globalization, change, innovation, and speed • Knowledge is the key resource • Ethics • Globalization, productivity, quality, and teams • Diversity: aging, gender, and work-family issues • Technology: Internet and e-business and the virtual office

Human Relations Guidelines 2. Be positive 1. Be optimistic 3. Be genuinely interested in others 4. Smile and develop a sense of humor 5. Call people by name 6. Listen to others 7. Help others 8. Think before you act 9. Create a winwin situation Exhibit 1. 4

Handling Human Relations Problems (1 of 2) • Psychological contract – the shared expectations between people • Human relations problems often occur when the psychological contract is not met

Handling Human Relations Problems (2 of 2) • Three alternatives to resolving human relations problems: 1. Change the other person 2. Change the situation 3. Change yourself