A PROJECT REPORT ON

PERSONNEL MANAGEMENT
BY

SAYED MOHAMMAD RIZVI (BACHELOR OF MANAGEMENT STUDIES)

ACADEMIC YEAR 2011 - 2012

UNDER GUIDANCE OF

PROF. ARUNA DESHPANDE

UNIVERSITY OF MUMBAIS
ALKESH DINESH MODY INSTITUTE FOR FINANCIAL AND MANAGEMENT STUDIES ACADEMIC YEAR 2011-2012

University of Mumbais Alkesh Dinesh Mody Institute For Financial and Management Studies

CERTIFICATE

I Prof.ARUNA DESHPANDE hereby certify that Mr. SAYED

MOHAMMAD RIZVI student of

Alkesh Dinesh Mody Institute for

Financial and Management Studies, Semester-VI has completed this project on Personnel Management in the academic year 2011-12. The work of the student is original and the information included in the project is true to the best of my Knowledge.

SIGNATURE OF GUIDE WITH DATE

SIGNATURE OF DIRECTOR

Alkesh Dinesh Mody Institute

DECLARATION

I, Mr. SAYED MOHAMMAD RIZVI TYBMS Student of Alkesh Dinesh Mody Institute for Financial and Management Studies, hereby declare that I have completed the project titled PERSONNEL

MANAGEMENTduring the academic year 2011-12.

The report work is original and the information/data included in the report is true to the best of my Knowledge. Due credit is extended on the work of Literature/Secondary Survey by endorsing it in the Bibliography as per prescribed format.

Signature of the Student with Date

(SAYED MOHAMMAD RIZVI)

University of Mumbais Alkesh Dinesh Mody Institute For Financial and Management Studies

Name of Student: Roll Number: _

Title of the Project:

Signature of Student with date:

ACKNOWLEDGEMENT

The success of my project work was not only due to my hard work alone, but also due to the help & guidance offered to me by various people. It is my duty to acknowledge with gratitude the help rendered to me by these individuals without whom I would not have been able to complete this project to the best of my ability and to the satisfaction of my supervisors.

I am very indebted to my project coordinator Prof. ARUNA DESHPANDE the prime guidance, force & inspiration during successful completion of my project. I thank her profusely for sparing his precious time for assisting & guiding me to the best of her knowledge.

I hereby thank to all those people who are left unmentioned here but who have contributed their best to give me a sharp & rewarding insight about how my project should be carried out. And lat but not least would like to thanks to my college for providing me a platform to reach where I am today.

PREFACE
I SAYED MOHAMAMD RIZVI have chosen PERSONNEL MANAGEMENT as my project topic with a view to state the importance that HRM (evolved PRM) demands in this era of competition and an ever growing industry with an equally fast developing consumer role in it.AS the business environment is dominated by the consumer demands no organisation can afford to fail in delivering that which is needed. Many companies have now understood the importance of the MAN factor i.e. the importance of employees for achieving this aim of gaining and retaining consumers and keeping a hold on the market. This theory which began as Personnel management has evolved in all these years and is now called Human resource Management.

This project is prepared with an aim to cover the historical aspect of this concept ,the techniques it promotes to achieve the firms objectives, the difference between both the terms(PRM & HRM) and the different classifications according to various HR Gurus and also in the end I have stated about two companies who have adopted this concept and are practically applying it to their benefit.

PARTICULARS Sr.no 1 Executive Summary CHAPTER 1 2 Introduction 3 History of Personnel management 4 Definition of Personnel Management 5 Importance of Personnel Management 6 Future and abstract 7 Concept of Personnel Management 8 Objectives of Personnel Management CHAPTER 2 9 Problems in Personnel Management Distinguishing Factors - Human Resource Management vs. 10 Personnel Management 11 Relationship among elements of Personnel Management 12 Why Personnel Management 13 CLASSIFICATION OF FUNCTIONS 14 Classification of functions by some Authors: CHAPTER 3 15 PRM/HRM at Raymonds 16 PRM/HRM at Larsen & Toubro 17 CONCLUSION 18 Bibliography

PAGE No. 1 2 4 7 8 9 10

24 27 31 32 37 41 44 47 57 58

EXECUTIVE SUMMARY

The first Chapter of this project briefly introduces the origin and developments of Personnel management in a chronological order discussing the important milestones and achievements during these periods; it discusses the concept, definition, need, objective, role, future and importance of Personnel Management.

The second chapter mainly focuses on the differences between Personnel management & Human Resource Management (Evolved from PRM).Differences in matters of scope, approach, nature & application have been stated. Here, the functions of PRM have also been described and also the relationship of Personnel Management with various elements has been discussed. Also, views of various authors regarding functions of Personnel Management have been listed in concluding part of this chapter.

The third and the final chapter concludes this projects where I have discussed about the practical application of Personnel Management in two companies (Raymonds & Larsen&Toubro). It discusses the many techniques applied by these two companies for the good of the company and how passionately it is implemented with a view to bring a positive outcome for the company as well as the employees.

CHAPTER 1
Introduction
In a business organization, the most important and complex resource is people working there. So, personnel management is all about making the most effective use of the skill of human resources in a company. It also consists in providing training to personnel to enhance their skills, so that they can achieve the goals of the organization in a more efficient manner and faster. Personnel management begins with the recruitment of requisitely qualified personnel for a company. It further involves directing their growth through the ranks. It is also concerned with how to channelize the energies of personnel in a way that will maximize the turnover of the organization. The Human Resources department in a company is entrusted with the personnel management function. Executives in the department known as Personnel Managers discharge the function of personnel management. Some of the tasks performed under Personnel management can be summarised as : Classification of jobs, preparation of wages, and the fixation of salary scales of employees. Taking Disciplinary action against errant employeesand counselling. Doing Service contracts and negotiations with employee unions. Development of safety standards and best practices. Manages benefit programs in respect of employees such as retirement, health, and group insurance. Taking annual performance reviews of employees. Establishing their training needs. Etc. Personnel management is also focused on the development of employees and their grooming for enabling them to function at higher levels. Personnel management is responsible for the optimum training of qualified employees. It is also involved in sponsoring employees for attending seminars relevant to the area of their functioning. One of the most important personnel management functioning is that of reporting to the higher management of the company. Reports on employee appraisals and their performance all move to the higher management through the personnel management function. It is also very much involved in maintaining a database of qualified candidates suitable for a specific vacancy in an organization. This helps the organization to rapidly replace an outgoing efficient employee with a suitable candidate, without significantly affecting the work of the company. The personnel management function also copes with the issues of sexual harassment and equal employment opportunity in an organization.

History of Personnel management

Personnel management came in to existence just in the last century. But has undergone radical facelift and function fortification to reach where it is currently. This transformation can be traced back in 4 phase: Phase 1. Early days of Welfare officer The history of personnel management begins around the end of the 19th century, when welfare officers (sometimes called 'welfare secretaries') came into being. Their creation was a reaction to the harshness of industrial conditions, coupled with pressures arising from the extension of the franchise, the influence of trade unions and the labour movement, and the campaigning of enlightened employers, often Quakers, for what was called 'industrial betterment'. The first welfare workers were women, and were only concerned with the protection of women and girls, which was seen as a worthy aim. They would visit sick employees and help to arrange accommodation for women, often including the supervision of moral welfare. They were usually employed in the newer industries where women were engaged in light machine work, packing, assembly or other routine jobs. In some companies, their duties grew to become concerned with the recruitment and training of women as well. There was some ambiguity about their role as it grew; an ambiguity which this factsheet will show is often present in the personnel role and which has not diminished over the years. On the one hand, there was the assertion of a paternalistic relationship between employers and (female) employees and the aim of moral protection of women and children. On the other, there were the economic aims of achieving higher output by control of sickness and absence and, by resolving grievances, of making the organisation of women in trade unions unnecessary. Thus their motives were mixed (and of course their costs were met by companies), but at a time when there was virtually no state welfare provision most welfare workers wanted to help improve conditions for working women. In 1900 there were only a dozen or so welfare workers, but by 1913 their numbers had grown sufficiently for the Welfare Workers Association, a forerunner of todays CIPD, to be formed. Phase 2. Growth in personnel management The First World War accelerated change in the development of personnel management, as it did in many other areas of working life. The number of welfare officers grew to about 1,300, largely because of the Munitions of War Act, 1915, which sought to control the supply of labour to munitions factories and made welfare services obligatory in them. Men were recruited to oversee boys' welfare, and the government encouraged welfare development through the Health of Munitions Workers' Committee. During the war, industrial relations entered the equation. Women were recruited in large numbers to fill the gaps left by men going to fight, which in turn meant reaching agreement with trade unions (often after bitter disputes) about 'dilution'- accepting unskilled women into craftsmen's jobs and changing manning levels. For the first time the state had to open up a dialogue with the unions and develop forms of joint consultation.

During the 1920s, jobs with the titles of 'labour manager' or 'employment manager' came into being in the engineering industry and other industries where there were large factories, to handle absence, recruitment, dismissal and queries over bonuses and so on. Employers' federations, particularly in engineering and shipbuilding, negotiated national pay rates with the unions, but there were local and district variations and there was plenty of scope for disputes. Officials were employed by the federations to help settle them. Also between the wars, large companies like ICI, Pilkingtons, and Marks and Spencer developed through growth and mergers and began to form their own specialist personnel departments to unify divergent policies from the centre and manage absence and recruitment with the aim of improving output. But such departments were mainly concerned with hourlypaid workers, while industrial relations was frequently the responsibility of senior line managers. Moreover, employment management, or personnel management as it was beginning to be called in these firms, was mainly confined to the newer, emergent industries such as plastics, chemicals, and multiple retail. During the 1930s, with the economy beginning to pick up, big corporations in these newer sectors saw value in improving employee benefits - for example, holidays with pay and pensions - as a way of recruiting, retaining and motivating employees. But older industries such as textiles, mining and shipbuilding which were hit by the worldwide recession (unemployment nationally through this period was hardly ever less than 10 per cent, and much higher in the traditional manufacturing and mining areas) did not adopt new techniques, seeing no need to do so because they had no difficulty in recruiting labour. Phase 3. Second World War Personnel depts. Grow in stature The Second World War brought about welfare and personnel work on a full-time basis at all establishments producing war materials because an expanded Ministry of Labour and National Service insisted on it, just as the Government had insisted on welfare workers in munitions factories in the previous conflict. With more women again being introduced into the workforce, 'dilution' once more on the agenda, substantial re-training necessary and shift working extended, the government saw specialist personnel management as part of the drive for greater efficiency and the number of people in the personnel function grew substantially; there were around 5,300 in 1943. Industrial relations grew in importance too. Strikes were made illegal. The Minister of Labour, Ernest Bevin, had been general secretary of the Transport and General Workers' Union before the war and was able to convince the unions through dialogue with them that the suspension of restrictive practices to enable production targets to be met did not represent surrender. Thus productivity improvements came to be linked with joint consultation or negotiation, which was to become a dominant feature of the post-war years. 1945 - 1979: Collective bargaining and industrial relations By 1945, employment management and welfare work had become integrated under the broad term, 'personnel management', while experience of the war had shown that output and productivity could be influenced by employment policies. The role of negotiation with unions had grown in importance. But the role of the personnel function in wartime had been largely that of implementing the rules demanded by large-scale, state-governed production, and thus the image of an emerging profession was very much a bureaucratic one.

Pre-war, most bargaining between employers and unions had been at national level, conducted on the employers' sides by employers' associations or federations. The war had seen the rise of local negotiations in the engineering industry in particular and the 1950s and '60s witnessed an acceleration of this trend, not only in engineering. There was an enormous growth in the number and power of shop stewards, and local-level bargaining gave greater scope for the company-level personnel function. At the same time, larger companies wanted to develop their own employment policies which fitted their own plans and corporate strategies, leading to further decentralisation of bargaining. During the 1960s there was a series of well-publicised productivity bargains with trade unions to enable both sides of industry to benefit from improvements brought about by new technology. Personnel managers were involved in such bargains although so too were line managers, because they were the people who had to make them work. The growth of shop stewards and local bargaining (not always well-managed by unions nationally) resulted in a large number of official and unofficial strikes which were damaging to the economy, particularly in the manufacturing industry (and manufacturing, it should be remembered, played a much larger part in the economy than it does now, and was extensively unionised). The UK was becoming notorious for its poor industrial relations, and the number of working days lost through strikes in the UK compared unfavourably with betterperforming European competitors, notably West Germany. Strikes were even known as 'the British disease'. Ad hoc responses by personnel managers without too much reference to longer term industrial relations or business strategies often only served to set precedents which were later used against them. Thus a Royal Commission under Lord Donovan was set up. Reporting in 1968, it was critical of both employers and unions; personnel managers were criticised for lacking negotiation skills and failing to plan industrial relations strategies. At least in part, Donovan suggested, these deficiencies were a consequence of management's failure to give personnel management sufficiently high priority, and it is tempting to see the somewhat higher profile that personnel management achieved later in the century as something of a response to Donovan's criticisms. (A common saying amongst trade union officials in the 60s and 70s was, 'Companies get the industrial relations they deserve', and there was some truth in that observation.) Meanwhile, by the mid-1960s, organisations outside manufacturing - in the public sector and services - were beginning to employ personnel specialists. The numbers covered by collective bargaining widened as white-collar staff associations - particularly in the public sector evolved into trade unions. Meanwhile the scope of bargaining widened to include not just pay but, for example, pensions, training and safety. The world was opening up too; the growth of multi-national companies and entry into the EEC meant that some personnel managers had an international role in, for example, reconciling varying national compensation systems, and taking account of different systems of employment law. Even in purely UK-based organisations, by the seventies personnel managers had to begin to understand the impact of European law on the UK, something which was to grow in importance as the century advanced. Domestic legislation was increasing too. In the mid-1960s new legislation was introduced on contracts of employment, training, and redundancy payments, followed in the seventies by laws on equal pay and opportunities, employment protection and attempts to regulate trade union activity. This was also a period of high inflation, and voluntary and statutory attempts 5

mostly unsuccessful - were made to regulate prices and incomes. Personnel departments were required to understand these new measures, and to develop policies to implement them; statutory regulation of pay, for example, helped to lead to greater use of job evaluation. Finally, in this period, personnel techniques developed using theories from the social sciences about motivation and organisational behaviour; selection testing became more widely used, and management training expanded. New management techniques for improving performance arrived from American academics such as McGregor and Herzberg to be applied by personnel departments. Thus, by the end of the seventies, the main features of personnel management as it appears today were in place, and can be distinguished as:

the collective bargaining role - centred around dealing with trade unions, to which might be added the development of strategies for handling industrial relations the implementer of legislation role - implying understanding and implementing a growing amount of legislation the bureaucratic role - implementing a series of rules about behaviour at work, dealing with recruitment, managing absence and so on the social conscience of the business role, or 'value champion' - a residue from the welfare worker function a growing performance improvement role (in some organisations and sectors) about integrating the personnel function with business needs and taking a more strategic view.

There is no significance in the order of the above list; the relative importance of the respective features will vary from organisation to organisation, and from time to time. 1979 - Present: The rise of HRM The 1980s in particular saw substantial changes as a result of legislation, a shift in the intellectual climate away from post-war collectivism and towards individualism, and changes in the structure of the economy. In 1979 a Conservative government under Margaret Thatcher was elected with a radical agenda and, with wide public concern about perceived abuses of union power, a mandate to reduce it. Legislation was introduced to outlaw sympathetic and political strikes, remove the closed shop (under which union membership was compulsory), and generally increase the power of individual union members. High unemployment (reaching three million in the early eighties) and structural change in the economy with a move to services from manufacturing (where union membership was strongest, other than in the public sector), would in any case have meant a decline in union membership. But the legislation assisted employers who wanted to reduce the influence of trade unions; personnel departments played their part in this process, most notably and symbolically in national newspapers where, after bitter disputes, closed shops were ended and trade unions removed. Around the mid-80s, the term 'human resource management' (HRM) arrived from the USA. To some, HRM was mainly connected with minimising trade union influence and the titles of some personnel departments were changed to symbolise this. To others, though, it implied a more strategic role, with the HR department helping to achieve business objectives and planning (with line managers) how to achieve those objectives, and ideally with an HR director on the board of the company. With this, in some cases, came a kind of consultancy role, with the HR department acting as adviser to line managers. The term 'human resources'
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was (and is) an interesting one: it seemed to suggest that employees were an asset or resource-like machines (and capable of being replaced or up-graded like machines?), but at the same time HR also appeared to emphasise employee commitment and motivation. Certainly it fitted the ideological climate of the times, and in some organisations there was a hard edge to HRM, in part a consequence of its perceived role in reducing union influence. At one point in the early 1990s, the debate on HRM took on almost theological dimensions, with academics discussing what it represented, and usually reaching no definitive conclusions. In recent years this debate has declined and it is probably best to regard HRM (and its offshoot HRD, discussed in more detail in the companion factsheet Training: a short history) as merely a part of the development of personnel management, a kind of labelling of the last point in the list above, and not as something separate. However, this is not to underrate its importance. In some organisations HRM has encouraged the devolution of certain operational personnel tasks from personnel specialists to line managers; more generally, it has helped to promote the view that personnel has an important role in the development of the business and of business strategy. Organisation development (OD), another import from the USA although less influential than HRM in the UK, also played a part in the development of techniques used by those in personnel. Another development which became evident from the seventies, and perhaps more marked during the nineties, is the rise of specialisms: training was always separate in many organisations, but in larger organisations other specialisms such as reward, resourcing and diversity now exist within the personnel function.

Definition of Personnel Management

At a root level we can define personnel management as : Personnel management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business In simple terms the above mean employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. A more widely accepted definition of Personnel Managementsays : Responsibilities related to hiring and firing staff, supervising, promoting, organizing, motivating staff, and developing their professional capabilities. Personnel management requires strong interpersonal communication skills and skills in group facilitation, conflict resolution, and problem solving. This definition not only emphasizes the fact that recruitment , retentions and dismissal are primary functions of personnel manager but he also acts as a conflict handler and skill harnesser which are required by any organization to extract the best from its employee.

In the words of Thomas G. Spates Personnel management is a code of the ways of organising and treating individuals at work so that they will each get the greatest possible realisation of their intrinsic abilities thus attaining maximum efficiency for themselves and their group, and thereby giving to the enterprise of which they are a part its determining competitive advantage and its optimum results.

An analysis of this definition gives us the following salient features of Personnel Management. There are certain specific and guiding principles of personnel administration which gives us a set of techniques of handling men at work and also a point of view. Good personnel administration helps individuals to utilise their capacities to the full and to attain not only maximum individual satisfaction from their work but also satisfactions as part of a work group. In other words, personnel development is the aim. If people are skilfully handled both as individuals and as group members, they will respond by giving their best work to the organisation of which they are a part. This means that democracy is stronger and more effective than authoritarianism and that, where men and women are free they will be happier and work more effectively than if they are regimented. One of the greatest rewards of personnel management is in the realisation and demonstration of this.

If follows that personnel management is basic function of management which means getting effective results with people. It permeates all levels of management, since each executive must depend upon his subordinates for good results, and the foremen or first-line supervisors must build an defective work team of people whose performance will meet or exceed expected standards personnel Management touches all types of management and sales management. Unless these ha to secure the co-operation of other people whom they have employed to assist them. In short, every member of the management group, from the top to down, is a personnel manager, so to speak, in the vital sense, as the seeks to get effective long-run results through the efforts of the people who look to him for direction and leadership. This does not, however, mean that an organisation can dispense with an officially designated personnel manager. In every organisation there should be someone who is primarily concerned with helping to develop in operating officials the point of view and skill of personnel administration. Personnel management is not restricted to factories and wage earners. It is also important in offices, sales departments, laboratories, and in the ranks of management itself, where top officials must win the co-operation of their subordinates. Nor is god personnel management something needed, by private industry along. industries in Public sector, non-profit institutions, Government, and the armed services require personnel officer.

Importance of Personnel Management

Effective personnel management is important because employees are assets of a company although they are normally not shown as such on company balance sheets. Because they are assets, they must be planned for. The exact immediate and future manpower needs of a company must be determined, budgeted and procured in the most systematic and logical manner in order to optimize the companys return on its people investment. Effective personnel management is also important because of the need to maintain and protect employees from physical and psychological harm. If employees are well protected and maintained, they will work hard to achieve organizational goals. For this reason, personnel management deals with a wide range of socio-psychological issues such as motivation and morale, quality of physical conditions of work, equity in payment systems, employee welfare and safety, grievance prevention and conflict management, all of which contribute to the enhancement of worker satisfaction and performance. Other reasons for the growing importance of personnel management and the appointment of personnel managers are as follows: The increasing power of trade unions and the need to deal with demands and issues raised by them. The increase in legislations dealing with employment, conditions of service, wages, staff training, employee safety and welfare, labour disputes, etc. This has made it imperative for most companies to appoint an expert who can interpret and implement such legislations correctly. The increasing awareness of the positive role of human relations in business and the need to give proper attention to it.

Some of the other important aspects in which company is benefited from Personnel management or of having a separate personnel department or manager are as follows: Personnel matters in the company are dealt with in the same way thus ensuring uniform practice throughout the organization. The morale of employees is increased because they know that there is a specialist to deal with their problems and needs. Better personnel policies are formulated because there is a personnel management specialist who will give expert advice on personnel matters to the Board of Directors from time to time.

Future and abstract

In the years ahead, in addition to increasing business competitiveness there will be increasing competition for a shrinking workforce. Employees will be attracted to organizations which practice imaginative and enlightened management and avoid" management by best-seller" which gives rise to the contradictions discussed earlier. When revising, updating and redefining the roles of employees and development training plans, particular attention should be paid to the people at the lower levels. It is the customer service reps, drivers, order clerks and receptionists who frequently are the first interface with the customers. Their behaviour will reflect either positively or negatively on the organization and will be consistent with how they themselves are managed. No matter how wise the CEO, or how great the product or service, the battle for customer loyalty is fought by the front-line troops - those employees at the lower levels of the organization structure. Hence it is critical that due care and consideration be given those employees when developing HR policies and training programs. The development of an effective employee management plan is indeed a major undertaking. It requires the endorsement and active support at the CEO level. Although many managers claim to be experts in people management, there are probably fewer experts in HR management than in most other areas of business activity. If organization leaders do not take a personal interest in the integration of human resources planning with other aspects of the planning cycle and develop a co-ordinated process, they will soon suffer the economic penalties. As Peter Drucker has pointed out, An irreversible change in the world economy has already taken place. To prosper in this new world order, high priority must be given to increased productivity through enlightened and effective people management.

Concept of Personnel Management

The world is changing dramatically and is in the process of complete transformation. The impossible things of yesterdays have become possible today and the impossible things of today will become possible tomorrow that is why it is said that change is the only permanent aspect of nature. The concept of self-sufficient nations is losing importance and the concept of global village is emerging. Management of organizations is bound to cope up with the

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radical transformation by developing new techniques and practices in global perspective after carefully analysing the real challenges being faced by the professional managers. Because of the continuous changing socio-economic, technological and political conditions the modern day managers as behavioural /operational scientists in the organization come across the following challenges: Challenge of globalization. Challenge of information age. Challenge of quality revolution. Challenge of managing workforce diversity. Empowerment of workers. Development of work ethics and culture. Corporate reorganization.

Any organization functions with continuous interaction of three major variables of MONEY, MACHINES AND MAN POWER, along with several other inter related and dependant factors that are influential.

Job

People

Organization

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 from manpower planning to employees maintenance, 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
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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: Physical jobs Creative jobs Proficiency jobs Intellectual jobs Consultancy jobs Technical jobs

3. 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 : The organizational structure is meaningless without it. It helps to achieve the goals of the enterprise. It helps in manning the functional areas. It helps in achieving the functional departmental goals. They make a concern operational. They give life to a physical organization.

The different types of people which are generally required in a concern are : Physically fit people Creative people Intellectuals Technical people Proficient and skilled people

In personnel management, a personnel manager has to understand the relationship of the three elements and their importance in 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. The function of the manager has transformed immensely after industrial revolution and more specifically post WW II, from that of being a mere supervisor to the one who is a provider, evaluator and policy maker. Manager is the one who thinks over the effects of an action on the whole or large part of the whole system before taking the action, i.e. considers the situation behind the scene before taking any action. Effects may be positive or negative, so a cost benefit analysis is taken before an action is employed as well as an evaluation that how far a particular planning has been effective is considered. So, it evolves as a complete system of functioning.

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As the management of the money with utmost flexibility and durability is important in the working and growth of any organization along with the best maintenance and operation of machines, it is even more crucial to deal with the diversity and dynamism of the man at work as they are the resources for any organization to bloom, build and boom. And over the years ever since the identification of the vivid aspect of man as a resource of organisation, in management there have been several practices that were employed, deployed and transformed under the terms viz personnel management, industrial relations, and the latest in use is human resource development and even more comprehensive outlook comes under the title of human resource management.

PERSONNEL MANAGEMENT (PM) is more so a traditional form of management, where manager was the person who organized, delegated and divided the work. Management applied the principles for getting things done universally regardless of the type of organization and situation involved. PM has a limited scope and inverted orientation. The norms, laws and strategies of functioning were designed by the management, the fountain head of the company and the task of the Personnel managers includes the activity of hiring new employees and to maintain personnel records, and to supervise the labour as an important tool whose behavior could be manipulated for the benefit of the organization and replaced when worn out. PM practice was indeed a monotonous monitoring by the managers, of the work done by the employees in the interest of the organization with negotiation, division of labour , indirect and downward communication and functioning under clear rules norms and customs of the organization. But later researches show that there may be few instances where certain principles are used in all circumstances otherwise different treatment is required in different cases after analyzing the various situational variables carefully as the behavioral situations are much more complicated now a days. And this was how HRM, Human Resource Management came into existence. Intellectuals identified that man at work is the asset of any organization and is dynamic in thought process as well as functioning, thus his individual identity should be retained. And this brought an end to the PM approach that had a universal outlook in dealing with employees. Historically it is believed, that PM preceded HRM.

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Objective of Personnel Management

An ideal relationship between the working groups, between the employer and employee, is an indispensable part of the personnel management. This branch of management touches all types of management and is one of the major constituent key in managerial action and success.

The basic objectives of Personnel Management are as under: Creating a congenial and healthy environment for employees or workers to function effectively. To bring about organizational and human resource development through training, development programmes or even managerial succession planning. Selection and placement of right number of people and ensuring proper allocation of duties and responsibilities upon them. Creating better inter-personal relations, developing a sense of responsibility and responsiveness amongst workers and employees. Boosting the morale and sense of initiative amongst employees.
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Adopting best techniques or conceivable methods to bring best possible development of workers on work.

After having a thorough study of Personnel Management an administrator will be able to:

Get a broad over-view of various types of action, that constitutes personnel management.

Assess his/her role in personnel management whether specifically changed with such responsibility or not.

Identify major principles of action relating to main elements of personnel management; and

Analyse the major problems relating to personnel management and evolve solutions.

Personnel Management deals with the following aspects relating to the people working in the organization ; i. ii. iii. iv. Job analysis and job description. Wages and Salary administration. Recruitment. Placement and promotion.

v.

Transfers.

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vi. vii. viii. ix. x.

Training and professional growth. Performance assessment and report (ACR). Discipline. Trade Union Relation. Welfare.

Let us briefly discuss the content of each of these elements.

Job Analysis and Description.

Whenever an organization is established or expanded and new functions are assigned to it, the first task is to determine how many persons are needed, of what skills and qualifications and to do what. This criterion enhances organizational efficiency and effectiveness. Efficiency demands that the least number of persons with the least operational costs should do the work, while, effectiveness necessitates that the objectives of the organization are achieved fully with the highest consumer satisfaction.

Job analysis and job description is a process by which the personnel management determines the number as well as the kind and qualifications of employees to be recruited to an organization. The tasks to be performed are compiled and phased out. Then those that requiring the same skill, qualification and experience are grouped together. Each group of functions, which requires a person, constitutes a post. Job analysis results in identifying the number of posts that an organization needs.

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Job description is the phase when the qualifications required for a person to be recruited to the post are worked out. Qualifications for a post range from age, language, skills and educational level to experience in similar or related jobs. Some qualifications are obligatory while some others may be specified as advantageous or preferred. Job description begins with a statement of the functions, which based on job analysis have been identified for the post concerned.

The net result of job analysis and description is a short document which is generally called a JOB DESCRIPTION. It contains the basic information to ;

a)

enable a person interested in the post to assess himself as an eligible candidate;

b)

enable the recruiting authority to determine that the person if selected is the most suitable to perform the function of the post; and

c)

provide a reference point for both the employer and employee as regards expectations and obligations connected with the post.

Wages and Salary Administration.

Job evaluation results in fixing salaries and allowances etc. for the post(s) in an organization. This is not a one-time job. Posts keep on changing according to growth and functional transformation of an organization. Simultaneously inflation, devaluation and rising costs are the outside factors, which also force for revision in wages and salaries. Some times, new jobs are added. Old jobs are abolished or modified. All these necessitate the continuing function of wage and salary

17

administration. However, it is mostly handled on centralized levels like Provincial or Federal Ministries of Finance, Public Administration etc.

One of the more complex functions under this element is to authorize ad-hoc or special allowance to persons doing some special work or working under certain circumstances. The main difficulty here is that such allowances should not upset the salary structure or create discontentment among others who handle similar work or works under similar circumstances without the benefit of additional allowances (such as " secretariat allowance" "unattractive area allowance" etc). The Task of personnel management, in this respect, is to compensate the deserving persons without upsetting the prevailing balance in salaries and allowances well in time.

Recruitment.

Recruitment is the process of employing the most suitable person to fill a post.

Selection procedures are mostly designed for the purpose of recruitment based on judicious criteria. Some times written test and examinations are used for this purpose. Interviews are based on criteria such as personality, presentability communication and language skills as the deciding factors. How much of these are feasible in educational management depends upon the recruiting procedures/policy framed for the purpose. Where the organizations may change their recruiting policy/procedure, efficiency and effectiveness cannot be over looked.

Placement, Transfer, Promotion and Removal.

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After, recruitment is the function of placing the new recruit in his working situation. This is often a formality if an individual is recruited to a particular post. But where a batch of new recruits is selected for a number of identical posts then placement calls for the settlement of criteria and assessment of each recruit against such criteria.

Transfer, promotion and removal are day-to-day operations of personnel management and consume most of the time and energy. Transfers can be a very complex operation, where institutions are far flung and most of them located in remote rural areas. These transfers (of teachers) form a major management activity having enormous administrative as well as political implications.

Promotion can be an equally difficult task in view of the large numbers involved and the keen competition for the few jobs, especially on administration side, in the upper slots. Seniority-cum-fitness is the appropriate criterion for the efficiency and effectiveness of the organization.

Performance Evaluation and Reports (PERs) Annual Confidential Reports (ACRs).

Connected with transfer, promotion and removal is the functions of performance evaluation and report. Every organizations has some mechanism for periodic evaluation of employees performance, which is usually recorded in the form of an Annual Confidential Report. The system is to get the immediate supervisor to in seat of such a report. Comment of next higher officers are then added until the final note, which is by the appointing authority summarizes the assessment in terms of the
19

employees eligibility for promotion or otherwise. However, the adverse remarks if any are conveyed to the employee. The employee has the right to protest wherever he feels that the report is not fair or just.

The performance evaluation involves merit rating and to same extent personal qualities which can influence his/her performance. It also contains targets achieved during the year and whether that officer is fit for that post or not. Administrator/Supervisor should not be biased or prejudiced while writing reports based on facts, other wise remarks should only be given in the ACR, if and when the employee had previously been warned about his inefficiency, misbehaviour or slackness etc.

Training and Professional Growth.

Another very important aspect in personnel management relates to training and professional growth. Usually trainings are of in two types:-

1.

Formal training : It consists of ; i) ii) iii) Pre-service. Pre-promotion. In-service on the job training.

2.

Informal Training : It consists of ;

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i) ii) iii)

Study Tours, lectures, seminars, workshops etc. Correspondence programmes. Manuals and guides/technical literature.

All these activities contribute to staff development and increase in efficiency, effectiveness and growth of an organization.

Where a variety of duties, responsibilities, skills and attitudes is involved as in educational management, the training and retraining of the personnel is extremely important for their professional growth, as they move upward from one stage to the other. Besides, the rapid advances in concepts, methods and techniques demand for continuous updating. What appear most important in educational management are constant and regular informal training activities and opportunities for exchange of knowledge and experiences, focusing on the aim of professional growth.

Discipline. To maintain of discipline is another important function of personnel management Every organization has its own rules and regulations for the conduct of its employees. Such rules mostly explain the level of authority an administrator can exercise and the level he needs obtaining approval of the higher authorities. These rules and regulations make provision for punishing those who violate them. In addition, these rules and regulations also provide the manner in which inquiries are conducted. Similarly, there are also codes of conduct determined and enforced by the employees themselves. These too provide for procedures of investigation. Efficiency and Disciplinary Rules are there for maintaining Discipline in an institution, office or department.
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Like transfer and promotion, disciplinary procedures also consume considerable time of the management. The natural justice demands that the Accused is given every opportunity and a fair chance of defence. Appeals against punishments are similarly provided for. A hierarchy of authorities, leading to judicial courts and higher ups is connected with these appeals. Providing these authorities with reports clarifications and justifications also create a significant load of work in personnel management.

Trade Union Relations.

Almost everywhere the employees of the organizations organize themselves into trade unions or staff associations. Maintaining cordial relations with them are also an important responsibility of personnel management. Employees have problems and grievances, both individual and collective, for whose redress they make representations through these trade unions.

An experienced personnel manager usually welcomes active trade unions in his organization. These can be useful for policies and decisions affecting the staff. Their advice can help him draw upon the maximum co-operation of the employees. Further an atmosphere of mutual trust and understanding, once established between the personnel office and the trade unions, is a useful asset.

Good relations with trade unions require not only a friendly attitude towards them but also a serious effort to develop effective machinery for handling grievances. Joint committees have proved to be effective in many organizations. Consultations with
22

representatives of trade unions on major decisions affecting employees have become a common feature. In this democratic way through motivational process, there are instances when trade unions voluntarily handle programme of training and professional growth as well as staff welfare.

Two aspects of trade union relations demand skills of negotiation and tact, they are ; 1. Collective bargaining when terms and conditions of service are subjected to negotiation with a view of evolving an agreed settlement.

2.

Arbitration when disputes are to be resolved *quasi-judicial procedure.

However, in both these, the qualities of head of the official heart have great impact.

Welfare.

The last but not the least, important element of personnel management is welfare of the employees. This include the provision and the administration of the following :1. 2. 3. 4. 5. 6.
*

Health and safety. Housing. Food and recreation. Monitory aid at the time of distress. Children education. Pension and provident fund benefits.

Semi Judicial

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7.

Credit facilities.

Welfare of employees is not to be regarded as a social service or a charitable activity. It is an investment in upholding the morale of the employees and enhancing the efficiency and effectiveness of an organization.

Problems in Personnel Management.

We have so far discussed in some details the elements, which constitute personnel management systems. However, these are certain problems also. These can be summarized as follows :-

Inadequacy. Inadequacy of attention paid to personnel management functions, which afterwards affects adversely. Every administrator is expected to be a good personnel manager. Without the qualities of head and heart and the skills of negotiation, tact and sympathetic involvement in a democratic way most administrators fail in personnel management.

Absence of a Human Relation Approach. Personnel management is the real testing ground for principles of Human Relations. Most grievances have a highly personal hence emotional touch. In handling them, much can be gained and little can be lost by sympathetic listening, friendly persuation and flexible attitude to rules and regulations.

Narrowness of personnel management function.

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Personnel management is often confined to recruitment, transfer, promotion, discharge and disciplinary action. The other important functions such as training and professional growth and welfare do not figure at all. In the absence of a comprehensive coverage of all functions, some of the more constructive aspects of personnel management tend to be neglected.

Absence of Personnel Policies. Over all personnel, policies are necessary for the administrators of different levels to make multiforces decisions. In their absence, contradictory decisions which when applied to individuals, give the impression of unfairness and discrimination is taken. Apart from the adverse effect that they have on the morale of organization, remedial action in the form of grievance handling and redress, also consume too much time and energy of the administrators. Inadequacy, inaccuracy and unreliability of personnel records. As in the case of personnel policies, records have a major role in ensuring uniformity of personnel decisions. When records are faulty, such action as appointment, transfer promotion and disciplinary action can be founded on wrong foundation resulting in discontentment among employees. In wage and salary administration, in particular, record plays an important role. Retrievability of information for comparison is as important as the accuracy of record. The use of modern techniques of record keeping, for ready retrieval, cannot be over emphasized. Education Department has such a large numbers of employees as to warrant the use of computers for this purpose. Establishment of EMIS cell in the office is the needed of efficiency and effectiveness.

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Non-involvement of employees in decisions affecting them. Particularly management has its greatest relevance to personnel management. Employees want to know that the game is fair and the best way to let them know it is to involve them in personnel to personnel decisions. This also means that co-operative an attitude of mutual co-operation has to be adopted by the administrator towards trade unions.

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CHAPTER 2
Distinguishing Factors - Human Resource Management vs. Personnel Management
While dig for the difference between Human Resources Management and Personnel Management, we are most likely going to get very divergent views, depending on which sphere of experts you question. While some strongly affirm that there is no difference between the two, others will recognize the variance, but will still acknowledge the unmistakable similarities. In lay terms however, theres a general tendency to use the terms interchangeably. The major difference between personnel management vs. human resource management is that personnel management is the traditional approach and human resource management the modern approach toward managing people in an enterprise Comparing personnel management vs. human resource management, personnel management is a predominantly administrative record-keeping function that aims to establish and maintain equitable terms and conditions of employment, whereas human resource management integrates the traditional personnel management functions to corporate goals and strategies, and performs additional people centred organizational developmental activities. Significant difference exists between personnel management and human resource management in terms of scope, approach, and application. Differences in Scope Human Resource Management is broader in scope than Personnel Management. The scope of personnel management include functional activities such as manpower planning, recruitment, job analysis, job evaluation, payroll administration, performance appraisals, labour law compliance, training administration, and related tasks. Human resources management includes all these activities plus organizational developmental activities such as leadership, motivation, developing organizational culture, communication of shared values, and the like. The human resource management approach remains integrated to the companys core strategy and vision, and seek to optimize the use of human resource for the fulfilment of organizational goals. This strategic and philosophical context of human resource management makes it more purposeful, relevant, and more effective compared to the personnel management approach. Difference in Approach

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The personnel management approach tends to attach much importance to norms, customs and established practices, whereas the human resource approach gives importance to values and mission. The personnel management approach also concerns itself with establishing rules, policies, procedures, and contracts, and strives to monitor and enforce compliance to such regulations, with careful delineation of written contract. The human resource management approach remains impatient with rules and regulations, and tends to relax them based on business needs and exigencies, and aim to go by the spirit of the contract rather than the letter of the contract. An illustration of this difference in approach lies in the treatment of employee motivation. The personnel management approach holds employee satisfaction as the key to keeping employees motivated, and institute compensation, bonuses, rewards, and work simplification initiatives as possible motivators. The human resource philosophy hold improved performance as the driver of employee satisfaction, and devise strategies such as work challenges, team work, and creativity to improve motivation. Difference in Nature Another dimension of the difference is approach between human resources vs personnel management is the proactive nature of human resource management compared to the reactive nature of personnel management. Personnel management remains aloof from core organizational activities, functions independently, and takes a reactive approach to changes in corporate goals or strategy. Human resource management remains integrated with corporate strategy and takes a proactive approach to align the workforce toward achievement of corporate goals. For instance, while the personnel management approach concerns itself with a reactive performance appraisal process, human resource management approach has a more comprehensive and proactive performance management system that aims to correct performance rather than make a report card of past performance. Difference in Application Personnel management is an independent staff function of an organization, with little involvement from line managers, and no linkage to the organizations core process. Human resource management on the other hand remains integrated with the organizations core strategy and functions. Although a distinct human resource department carries out much of the human resource management tasks, human resource initiatives involve the line management and operations staff heavily. Personnel management also strives to reconcile the aspirations and views of the workforce with management interest by institutional means such as collective bargaining, trade union based negotiations and the like. This leads to fixation of work conditions applicable for all, and not necessarily aligned to overall corporate goals.
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Human Resource Management gives greater thrust on dealing with each employee independently and gives more importance to customer-focused developmental activities and facilitating individual employees rather than bargaining or negotiating with trade unions. Finally, in our discussion of personnel management vs. human resource management, we find that personnel management lays down rigid job description with many grades and a fixed promotion policy - usually based on seniority and performance appraisal ratings. Human resource management on the other hand has relatively fewer grades and ranks, with broadly defined job responsibilities providing much scope for applying creativity and initiative, and plenty of career paths, with skills, talent and commitment the key drivers of career advancement.

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Personal management in organization

Personal management in organization is about mapping a plan for growth of the organization that will involve setting short-range and long-range goals and investigating different ways to reach those goals. Education, training, and experience all help make your goals become a reality. To achieve organization goals, you will choose the best path and make a commitment to it, while remaining flexible enough to deal with changes and new opportunities. Quotes by Secretary-General Kofi Annan We need to constantly improve our services, learn from experience and correct our mistakes. Good management is in the interest of everybody. Bad management serves no one. And let me be clear about the goal of management reform. It is to equip the SecretaryGeneral and Secretariat with the management tools and resources needed to handle complex global operations. And it is to ensure that we are answerable for results and performance through effective, stringent oversight. Working together, we can and must achieve this.

The success of any organization depends on how efficiency and effectiveness significantly contribute to the success. Efficiency relates to the relationship between available resources and outputs. When outputs are maximized within the constraint of available resources, then an organization is said to be operating efficiently. Efficiency is very often referred to as doing things the right way (Bennis, 1999). Management is also concerned with achieving objectives and fulfilling expectations. When the goals of an organization are being achieved and when it is meeting the expectations of relevant people both inside and outside the organization, then it is said to be effective. This has been referred to as doing the right thing (Bennis, 1999). Organizations may be classified according to their efficiency and effectiveness according to the diagram below. See if you can identify at least one organization with which you are familiar for each of the categories or cells on the diagram.

Low Efficiency Low Effectiveness

High Efficiency Low Efficiency and low effectiveness High Efficiency but low effectiveness High Efficiency and high effectiveness

High Effectiveness

Low Efficiency but high effectiveness

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Relationship among elements of Personnel Management

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

Relationship between organization and job helps making a job effective and significant. The issue of trust and job satisfaction have taken on a greater strategic importance in organization. Without trust or lack of it among organizational members and between management and employees, organizational communication, knowledge management, organizational performance, and involvement may tend to close down. Trust has been identified as a crucial ingredient for organizational effectiveness. Relationship between job and people makes the job itself important. Job satisfaction is the most studied variable in the literature due to its importance in organizationalbehavior. With advent of globalization one of the leading challenges for Managers is execution of effective human capital strategies to augment firms performance. As a result of pressure to perform, the worth of satisfied employees becomes more indispensable. Job satisfaction describes that how much happy an individual is with his/her job. According to Locke (1976) job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of ones job and job experiences. The happier the individual, the higher is level of job satisfaction. It is assumed that positive attitude towards work and greater organizational commitment increases job satisfaction which in return enhances performance of the individual (Linz, 2002).As the performance of the employees increases, it will affect firms performance and ultimately profitability of the firm. Organizational commitment is defined as the strength of individuals identification with and involvement in a particular organization whereas Attitude is termed as hypothetical construct that represents an individuals like or dislike for any behavior. Relationship between people and organization gives due importance to organizational structure and the role of people in it. The ways in which organizations are envisioned and managed seems to have fundamentally changed in the last several years. As more attention is focused on the corporation of the future, it is clear that organizational priorities now revolve around becoming and remaining more flexible. Companies are restructuring in ways that will allow them to respond quickly to turbulent times. To become less encumbered, many have chosen to invest less in human capital. Increasing the use of contingent work forces, reducing the permanent core of employees to a relatively small cadre, and down-sizing the organization are a few indications that the manner in which firms view employees has changed. In a similar vein, shorter tenure with any one firm, the increasing popularity of
31

multiple careers, and the revitalization of entrepreneurship signal that employees may be viewing organizations differently as well.

Why Personnel Management

Manufacturing systems are faced with continuously changing market conditions. Due to this fact, enterprises are permanently forced to adapt their organizational and personnel structures to new requirements created by these changing market conditions. In order to fulfill these requirements, it is becoming more and more important to take the cost intensive personnel resources into consideration In analyzing the relationship between employee and organization, two extreme standpoints can be distinguished. One school of thought claims that organizations do not exist (reification): there are only people (parts) working together to obtain specific goals. The opposite standpoint is the claim that separate human beings cannot function without a social context, such as an organization, providing a meaning to the life of individual employees. The most important aims and tasks of personnel departments, realize at the modern organizations, are the following activities: Personnel planning, Recruitment, Selection, Work and task systems Training and development; Assessment; Rewarding; Participation.

Dynamic changes proceeded in the world; the development of the technology, the increasing competition requires from the participants of the processes of the management the organizations of the continuous adaptation changing surroundings. To match this challenges, necessary becomes the possibly of the fullest human supplies utilization. The effective system of the personnel management supplies consists of the row related with each other processes. One attributes the special part to the proper logging of human supplies. Workers selection follows through the choice of the suitable methods of recruitment and selection preceded the planning of personnel needs. So the value and development of the enterprise depends on the correct selection of workers.

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The process of the planning of human supplies defines the level of personnel needs indispensable to frame and the realization of the strategy of the management human supplies. This is the process in which should be consider the present and future requirements in the face of workers in the relationship with the realization of the established strategy. The basis of the success of this process is good employment plan arising from early worked out strategy of the development (Fig. 1). The datum-point of the human resources planning is to determine factors, which influence on those supplies. The internal factors connected with the firm and external factors resulting from the surroundings of the organization should be qualified.

Factors connected with the firm are following : vision, mission and the aims of the activity of the firm; plans in the range of production and logistics, the development of technology, marketing and finances; the organizational structure of the enterprise; the financial shape of the enterprise; the size and structure of possessed human supplies, according to such the criteria as: the occupied position of work, lids, possessed qualifications; the efficiency of the work; applied technique and technology; the time of the work. The most important factors connected with surroundings of the firm : situation on the labor market, the accessibility and the information topicality relating to free places of the work; economic situation; position of the firm on the market, her credibility; competition of different organizations, in the
33

peculiarity matters connected with the height of offered pays and the possibilities of the development of the professional career; rate and the directions of the development of used and related technologies; valid law regulations, which contain norms and duties of the employer in the range of workers employment, development of education and education conditioning the quality of the accessible supplies of the work. Fig.1. Process of the personnel planning

The profile of the position of the work is the point of the exit of the led correctly process together with indispensable requirements to its assumption. The typical description of the position of the work takes into account the name the positions and connected with it range of basic duties, authorizations and responsibility, the level of the education, the level of desirable skills and the special features of the personality. Characterizing the position of the work - its place in the organizational structure and also the conditions of the work should be qualified. So the constructed description of the position of the work serves the possibilities to prepare candidate personal profile. The guild of personal, places oneself the features and skill which from the point of the employer sight are for the given position the most essential in the profile. In the personal profile are placed such features as: the skill of communicating, the strength of convincing, emotional stability, initiative. Seeking the candidate to the special kind of works he also gets under the attention his physical values in many cases. Recruitment ends with the moment of the preparation of the work candidates list. The workers choice is the continuous process, adapted to the changing needs of the organization. Two stages: recruitment and selection consist on the process of workers choice. Personnel needs are defined during recruitment, creates professional profiles and establishes criteria and the way of the choice. In second stage - the selection the candidates final choice is achieved. The requirements for a selection system are knowledge, skills, ability, and other characteristics. The selection is sometimes the long-lasting and complicated process, what represents the Figure 2. The goal of personnel selection, as all business processes, is to ensure an adequate return on investment. In the case of selection, this entails assurances that the productivity of the new hires produces more value than the costs of recruiting, selecting, and training them. Within industrial psychology, the area of utility analysis specifically addresses this issue. Selection is conducted by specify methods (social and psychological measurements). Examples include the use of minimum or desired qualifications, resume/application review, scored biodata instruments, oral interviews, work performance measures (e.g., writing samples), and tests (cognitive ability, personality, job knowledge).The process ends making the decision about employment and signature of the contract.

Personnel Management is an important branch in Management of any business enterprise. It holds a key to all actions and successful management. It is also concerned with human and social implications of change in internal organization and methods of working and of economic and social changes in the community. The main aim is to establish a better coordination between all the members from top level management to down below the
34

subordinates to have better cooperation, better focus to bring out innovative ideas, their objectives, and understanding in the enterprise. Co-operative relationship is achieved within the enterprise by creating harmonious relations, genuine consultation and participation of effective communication.

Organizational Systemic Concepts Originating from Systemic Family Therapy

1. Linearity versus Circularity:

Since organizations are systems based on feedback, linear thinking bases its understanding of any situation through cause and effect.

2. Homeostasis:
Organizations and teams are systems which need to find their balance by adjusting their behavior according to the feedback flow. Management and leadership roles demand that homeostasis is kept within the vision, objectives and goals of the organizations.

3. Feedback loop:
Feedback between parts of the system (team/organization) needs to be consistent and always flowing smoothly. Any form of communication being explicit or implicit, formal or informal is a form of feedback. This connects the parts into a system.

4. Connectedness:
Balance or homeostasis is achieved through connectedness which in turn thrives through continuous feedback. It is the role of management to ensure connectedness between team members.

5. Hermeneutics:
Feedback flow creates events and situations within the system pushing the system to adjust accordingly. The events happening outside and within any system, will inevitably affect the parts within the system and the system as a whole. Interpretation of every event depends on the perspective of a particular individual or team member. It is thus inevitable that in an organization there will be different interpretations of an event. In order to bring all parts of the system together one story needs to be created that represents the main theme.

6. Cybernetics:
First order change and second order change. Gaps between stories are resolved by the reconstruction of those different interpretations into one story. Such a process is only
35

brought through change among the team members. If the change is temporary, it can be defined as first order change. In contrast, second order change is defined as change that stays within the team and becomes part of the goals and objectives of the whole team. The whole theory of systemic thinking is based on the theory of the social construction of reality, where any system can be interpreted by various individuals in many different ways. The amalgamation of these interpretations into one story creates reality.

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CLASSIFICATION OF FUNCTIONS
Functions of personnel management can be classified under two broad heads as Managerial Functions and Operative functions. 1. Managerial functions Management is art of getting things done through people and with informally organized groups. Managerial functions include

a. Planning:
Planning is determination of plans, strategies, programs, policies, procedures, and standard needs to accomplish the desired organization objectives. Two most important features of planning are research and forecasting. Personnel administrator should be able to able to predict trends in wages, in labour market, in union demands, in other benefits and in personnel policies and programs.

b. Organizing:
An organization is a structure, a framework and a process by which a cooperative group of human being allocates its tasks among its member, identifies relationships and integrates its activities towards common objectives. It consists of assignment of specific functions to designated person or departments with authority and their accountability for results.

c. Directing (Motivating, Commanding):

Directing involves getting persons together and asking them (thought command or motivation) to work willingly and effectively for achievement of designated goal. A review of safety installments, wage-rate ranges, disciplinary action and general wage changes are all the responsibility of personnel department.

d. Coordinating and Controlling:

Coordinating deals with the task of blending efforts in order to ensure a successful attainment of an objective. Personnel department has to coordinate the task of developing personnel policies, practices and programs such a safety programs, employee benefits, job evaluation, training and development, and communication. Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with the plan that has been adopted.

37

Auditing training programs, analyzing labour turnover records, directing morale surveys, conducting separation interviews, interviewing new employees, comparing features of other organization programs are some of the means of controlling the management of personnel.

2. Operative functions The operative functions of personnel management are concerned with activities specifically dealing with procuring, developing compensating, and maintaining an efficient work force. These are also known as service functions. a. Procurement function: It is concerned with the obtaining of a proper kind and personnel necessary to accomplish organizations goal. It includes determination of manpower requirement, their recruitment, selection and placing, induction, follow-up, transfers, lay-offs, discharge and separation. b. Development function: It is concerned with the personnel development of employees by increasing their skill set through training so that job performance is properly achieved. Drafting and directing training programs for all employees, arranging for their on-thejob office and e-training, holding seminars and conferences, providing educational and vocational counseling, appraising employee potential and performance are undertaken in this function. c. Compensation function: It is concerned with securing adequate and equitable remuneration to personnel for their contribution towards attainment of organization objective. Functions related to wage surveys, establishment of job classification, job description and job classification and job analysis, merit rating, establishment of wage rates and wage structure, wage plans and policies, wage systems, incentives and profit sharing plans etc. d. Integration function: It is concerned with the attempt to effect a reasonable reconciliation of individual, societal and organization interests.

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Managerial activities that bring about a reasonable integration of human resources and the organization objects are termed as Human Relations. Human relations program tend to decrease accidents, absenteeism, turnover and operating error, strikes, etc. All these problems are handled under grievance procedure, disciplinary action and labour union programs. e. Maintenance function: It deals with sustaining and improving the conditions that have been established. Specific problems of maintaining the physical conditions of employees (health & safety measures) and employee service programs are the responsibility of the personnel department.

Functions classified on basis of job, capability and authority

1. The General & Specific functions Under general type of functions, the personnel management is required to conduct personnel research, to assist in the programs of personnel administration, to develop appraisal plans, to launch education and training programs, to develop competent work force, to establish and administer varied personnel services delegated to personnel department. Under specific functions, the personnel management may involve itself in areas of employment, safety, wage and salary, benefit schemes, community relations and advice and counseling the employees.

2. Personnel Administration & Industrial relations functions Personnel administration functions relate to the function of managing people from the lower to upper level of organization and embraces policy determination as well as implementation of policies by the personnel at lower levels. Accordingly personnel administration refers to creating, developing and utilizing a work group and involves all type of inter-personnel relationship between superiors and subordinates. Industrial relations functions are not directly related to managing people but refer interactions between the management and representatives of the union. Such function involves all activities of employer-employee relationship, such as organization of union
39

members, negation of contracts collective bargaining, grievance handling, disciplinary action and arbitration etc. the purpose of all being to prevent conflicts between management and unions. Two functions are inter-related and inter-dependant hence the common termed used is Personnel Management/Administration and Industrial Relations.

3. Function classification on basis of capacities Saltonstall classified personnel management functions on basis of capacities as below a. Line function: Personnel manager directs the work in his own department and also service functions such as recruitment, administration of benefits, the plant canteen and allied activities. Line functions are related to command action and characterized by direction, control, decisions, enforcement application, performance and instruction. Saltonstall suggests two approaches for development of line officials Threat approach or Source of help approach. b. Coordinator of personnel activities: He controls the functions of other departments. This is done though regular reporting on labour turnover, absenteeism, accidents and grievances to different levels of management. He also assists top management in completing personnel objectives, policies and procedures.

c. Typical staff function: He assist and advice line personnel to solve their problems. Typical staff functions are characterized by development, consultation, planning, interpretation, evaluation, diagnosis, research, investigation and recommendation.

4. Functions according to degree of authority Dale Henning and French had classified personnel manager functions into three categories thus:

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a. Area of maximum authority: e.g. direction of payroll calculations, orientation procedure, and transfer rules etc. b. Area of combined use of authority and persuasion: e.g. establishment of disciplinary procedure, inter-departmental data gathering, determining the number of participants in training programs etc. c. Area of maximum persuasion: e.g. salary changes under the rules of the plant, employment of individuals recommended by the personnel department in other department, initiating disciplinary action etc.

Classification of functions by some Authors

1. Yoders classification: Principal activities of manpower management are: Setting general and specific management policy for relationships and maintaining suitable organization for leadership & cooperation Collective bargaining, contract negotiations Staffing Aiding self-development of employees Motivating Industrial relations research

2. Yoder and Nelsons classification: Dale Yoder and Robert Nelson classified seven functional categories as follows: Departmental administration program Employment and Placement Training Collective bargaining Wage and Salary administration Benefits and Services Personnel Research

3. Scott, Clothier and Spriegels classification: Scott, Clothier, Spriegel divide the personnel management functions into these specific categories: Employment Promotion, transfer, termination Formulation and direction of training programs
41

Job analysis and evaluation Remuneration and incentives Health and Sanitation Safety and institutional protection Financial aids to employees Employee service activities Research, record keeping, reports and follow-up Employee-employer and community cooperation Labour union contracts and cooperation

4. Strauss and Sayles classification: Recruitment, Selection and Placements Job analysis, Job description and Job evaluation Compensation and Appraisal plans Employment Records Employee benefit program Special services

5. National Institute of Personnel Management classification: The National Institute of Personnel Management (N.I.P.M), India classifies the functions of personnel management into following categories: Improvement of industrial relations Promotion and joint consultation Helping management in formulating labour policy and improving communication between management and employees Advising the management on safety, health and welfare of employees Improving factory amenities and welfare provisions Advising management on training and education of employees

In sum, the N.I.P.M. is of the view that all those functions which are concerned with human element in industry, distinct from mechanical elements and may be categorized into three classes Welfare activities; Labour and Personnel aspect; Industrial relations aspect. 6. Edwin B. Flippos Classification 1.Procurement of personnel 2.Development through training and education
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3.Compensation to insure equity and incentive 4.Integration to align interests of employees, management and the union 5. Mainteneanace toe ensure continuation of this able and willing workforce. 6. Sepraration to return personnel to the society whn no longer required.

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CHAPTER 3

Human Resources Management at Raymonds

Raymonds Mantra:

Craftsmanship, teamwork and professionalism have come together at Raymond to weave tales of the finest Fabrics for over 80 years. Today, it has gained its market leadership position primarily on the strength of its vast talent pool. The company has always emphasized on the continuous and consistent upgradation of manpower in order to fully embrace the rapid changes in the textile industry. It has always fostered a growth-oriented environment enabling all its employees to fully realize their potential. MANPOWER RESOURCING Internal Resourcing The company first scouts for talent within the organization to provide growth opportunities to its employees. This is done by notifying vacancies internally. This practice helps in managerial cross-functional exposure for career development and learning. Talent from Campus Raymond recruits young textile engineering graduates, textile technologists, chartered accountants, fashion technologists and MBA's only from some of India's leading Institutes. They are then rigorously trained for a period of one year, during which they are placed across different departments, before being finally placed in their area of specialization. The objective of the programme is to gauge the recruit's area of expertise and then train them to independently shoulder their responsibilities. A Mentoring programme for new inductees in the organization enables them to adapt themselves to the organization. Lateral Recruitment 'Market-skilled' employees from other companies are periodically inducted into the organization from time to time. A combined force of existing talent and induction of fresh blood helps the company to be competitive in the face of increasing business complexities.
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LEARNING & DEVELOPMENT A detailed training and development plan is drafted and implemented each year, which comprises level-wise planned interventions as well as specific need-based interventions through Training Need Analysis. This equips the team to excel in their current roles while also preparing them for future roles. There is great emphasis on behavioral and attitudinal training apart from technical and onthe-job training.

Raymond Management Development Programme

The Raymond Management Development Programme (RMDP) provides participants designated from various divisions at Raymond with basic and advanced management perspectives and an opportunity for self-learning. The participants will be trained at Welingkar Institute of Management Development & Research, Mumbai followed by sessions back home over the next six months.

PERFORMANCE MANAGEMENT AT RAYMONDS At Raymond, an Performance Management System provides opportunity for employees to explore their potential for professional growth and personal development. Good performers are promptly recognized and rewarded. Developmental needs and future potential are established through assessment centers and on-line testing . Feedback is shared on an on-going basis and reward and recognition are linked through measurement of Key Result areas. 360-Degree Feedback System A 360 Degree Feedback System provides senior managers with valuable inputs through assessment from their colleagues, subordinates and internal as well as external customers. This enables the management to prepare their employee's individual development plans by understanding their potential, interests and goals Employee Involvement Raymond believes that employee involvement is the key to continuous improvement, sound decision-making and developing an open and transparent organization. Open forums provide opportunities to employees to share their views regarding people policies. This ensures a foundation of people centric policies. An online HR Manual brings transparency in HR processes. Latent creativity among organizational members is tapped through initiatives like Kaizen, Quality Circles and Suggestion Schemes in units.
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The Raymond Interchange, a think-tank of the Co's top management group, is an on-going initiative which harnesses the collective views on business strategy and is one of the drivers of employee involvement. Usage of the internal branding concept throughout the Group also plays an important role in driving employee involvement. We are proud of the fact that we are one of the most empowered organizations in terms of decision making down the line.

COMPENSATION & BENEFIT Wherever Raymond has created industry and employment, it has also provided educational, housing, recreational and spiritual support systems for its people. Employees' children have the facility to enroll themselves in the schools run by the J.K. Trust, at 50% of the fees. In many cases, children's education is absolutely free. From subsidised transport facilities or availability of Raymond products at concessional rates to its employees; the company always strives to make employees feel a part of the large Raymond family.

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HUMAN RESOURCES MANAGEMENT AT L&T

L&T offers its people freedom at work, unmatched leadership & the opportunity to grow at a rapid pace. It provides the employees challenging, interesting & motivating assignments which brings a sense of professional fulfillment. The company encourages entrepreneurial skills thus, enabling and empowering employees to take appropriate risks. Employee participation is encouraged by inviting suggesions & opinions. This is coupled with competitive compensation & rewards and training through Core Development & Behaviour Development Programmes, to enable them to unleash their full potential. Today L&T is growing at a rapid pace. This growth necessitate greater investment in talent. If a person has the passion to excel in their career, L&T provides the right platform to translate their imaginations to reality.

Mission Statement of L&Ts HR department:

Building a vibrant, professional work environment that attracts, nurtures and retains good performers and; developing the expertise to be able to be a strategic partner to fulfill present and future business needs.

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The organization believes that an organization is only as on success path because of its people. The grater the investments that the organization make in the people the stronger and more sustainable are the returns. L&T is a team of more than 35000 L&T-its spread across multiple locations across the globe, having proven track record and professional skills, woven together with a common culture of trust & caring. L&T offers its people freedom at work, unmatched leadership & the opportunity to grow at a rapid pace. It provides them challenging, interesting & motivating assignments which brings a sense of professional fulfillment.

Basic principles of Human Resource Policies include: Recruitment based solely on merit by following well defined and systematic selection procedures without discrimination. Sustain motivated and quality work force through appropriate fair performance evaluation, reward and recognition systems. Identify training needs with the organization and design and implement those need based training Programmes resulting in continuous up gradation of knowledge, skills and attitudes of the employee. Maintaining a quality human resource management system to meet the international standards as per ISO 9001. Plan design train equips and motivate the department staff to meet this standards of expectation. Work culture: Freedom to experiment Continuous learning and training
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Transparency Quality in all aspects of work Rewards based on performance and potential.

The company encourages entrepreneurial skills thus, enabling and empowering employees to take appropriate risks. Employee participation is encouraged by inviting suggestions & opinions. This is coupled with competitive compensation & rewards and training through Core Development & Behaviour Development Programmes, to enable them to unleash their full potential. Company has ongoing organization development Programme which is one of the longest sustaining OD efforts. Today L&T is growing at a rapid pace. This growth

necessitate greater investment in talent. If the person has passion to excel in his career, L&T provide the right platform to translate imaginations to reality. Company has opportunities in various disciplines viz Technology, Engineering, Finance, IT, HR, Research, Sales, Marketing, Legal and many more. Company invites people to be a part of this committed and professionally managed Indian multinational

L & T has worked hard to attract retain and continuously motivate talent. L & T cares for their employees and greatly values their contribution even set it daunting targets. The

company therefore offers people the tools and techniques to facilitate performance and create competitive environment of excellence. A the organization have structured leadership development programmes to develop leaders more better faster not only for meeting near term challenges but also for creating a pool of leaders to assume larger responsibilities. HR Department emphasis a work life balance and provide employees with a broad spectrum of benefits. An employee grievance management system minimize employee concerns and help build loyalty. L&T SELECTION PROCESS

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At present, company is visiting around 80 odd campuses with which they share a fantastic rapport for many years. Recently, organization has started a 'pool campus process' where invite all AICTE approved colleges in major locations across the country. This has enlarged the recruitment base for the company, increasing opportunities for bright engineers to make an entry into L&T.

Talent acquisition management: L & T crucible of engineering talent in India. The company enable the talent pool to remain at the forefront of the latest developments in the field of engineering through partnership with reputed technical institutes like IIT Madras and Delhi, as well as the national institution of construction management and research and many other engineering colleges across India. Organization drew talent from Larsen and Toubro institute of technology that conducts diploma course for employees children. At the heart of companies dynamic workplace is a spirit of delegated entrepreneurship, empowering employees to assume responsibilities and create an environment where talent finds recognition and rewards. The result of people retention is excess of 90%.

Performance evaluation:

L & T has instituted a framework for linking appraisals with incentives and rewards (Fair) practice to act as a reference between years starting goals and year end performance. The evaluation is conducted by immediate superior, in the presence of the employees, covering financial and non financial parameters. The non financial parameters consist of quality, material optimization, technology development innovation personnel training and

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organizational culture permeation at project site plants and officers. For employees working on the shop floor occupational health and safety are also considered in evaluation.

Training and education:

The organization has a human resources department dedicated to employees training. This department chalks out a plan for coaching needs, structures and coaching in various institutes and organizations across India and abroad, in addition to in house training sessions it also addresses behavioural, technical communication and presentation skills, this results in enhanced productivity & increased sales. Besides that, counselling sessions are arranged for all employees nearing the conclusion of their service period. Programmes comprise technical training course counselling for post retirement financial planning and an effective transition to non working life. The training and development function is assigned the responsibility of building capability within the organization to conduct business optimally in the present and prepare the organization with capabilities to meet the challenges of the future. Health and safety: L&T is committed to providing a safe and healthy environment at the workplace. The company has ensured this through various initiatives, safeguards and precautions. L&T have invested in various improvements with the objective of achieving management strongly feels that human life is valuable. zero accidents. The

Company has well-equipped training centres to conduct safety training for workmen and staff in a classroom setting. These are organized regularly for contractor's employees as well. The

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training topics include use of protective gear, first aid, emergency evacuation and preventive practices for specific high-risk activities.

Company conducts training sessions through professional safety organisations to help various business units in enhancing safety conditions at their respective workshops.

L&T, workmen across manufacturing locations and sites are trained on various aspects related to Occupational Health and Safety,

Importance of EHS in operations Defensive driving Legal requirements Typical construction hazards and precautionary measures Precautionary measures during radiography Safety while working at height Safety during material handling

Larsen and Turbo is giving awards to employees who have performed well, in terms of money, mementos, certificates stating best employee. Some cases employees get promoted. Quarterly review is done by Project Manager and employees get salary increment and promotion if the performance is good. On the basis of evaluation reports of the employee HRD department of Larsen and Tubro they plan special skill development training for employees.

Motivation and Compensation Motivated employees are always looking for better ways to do a job. Highly motivated workers are more productive. In L&T to motivate employees for improve individual efficiency and organizational effectiveness to enable them to achieve higher productivity provides various benefits to employees along with compensation so as to motivate them company is creating conducive working environment such as cold atmosphere, wash rooms, rest rooms, canteen facility. Recognitions & Rewards is depending upon Degree of contribution and level of impact. L&T complies with the equal remuneration act.

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Some of the recognition categories are given to employees: 1. Thank you slips 2. Pat on back 3. Appreciation letters 4. Simply the Best - Team Award 5. Holiday Plan Welfare facilities: Company is providing various working facilities like medical insurances, group life insurance/ education assistance to children social member ship, club membership. Canteen facilities at very low cost. They have welfare activity group which is always in process of rebuilding and improving facilities for employee. Career development facilities: Employees who are willing to study further, Larsen and Turbo is providing monitory

assistance to employees and they make bonds, employees get salary during their education period. Some Employees at executive level get education expense also. Career planning programmes: The HR department is organizing structured workshops to guide employees individual systematic self assessment of values interest, abilities goals and personal development plans during workshops, employees are made to define and match their specific career objectives with the need of the company. Generally these workshops are designed to guide individuals to figure out their strength and week ness, career opportunities and necessary steps for reaching their goals.
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Job aids: The organization is maintaining Job aids include checklists, tip sheets, wallet cards, posters, pictures, code lists, flow charts and diagrams anything that offers on-the-spot practical help or reminders. Job aids can reduce the amount of information employees need to recall by providing easily accessible facts.

The organization they have separate Human Resource website which prove detailed information on all aspects of the resource, compensation, organizational development. Website is easily accessible, highly informative. They also keep open entry for Organization is highly

recommendations about policies and about present practices. contributing in greener plan.

The HR department has set up communication forum; the objective of communication forum is to communicate employees issued and suggestions.

1 on 1 meeting is organized where HR talks to employees where it provides a formal platform to employees to talk about his career aspirations.

Company is providing excellent training to employees for their development. Stress management sessions are organized. All hand meeting is arranged where it provide a platform wherein the employees shall get company updates.

HR helpdesk system is created. Helpdesk is a support system designed as single point of contact for all employees in area. If any employees any problem or has any query then he or she can take help from helpdesk.

Skip level meetings are organized to increase interaction of manager with the team members
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Promote the culture where people feel free to approach management. Ensure a high morale of the team. For company people are their greatest asset. People come first.

Enriching work Environment : Company is conscious of the fact that their employees dedicate their most productive years towards their success. In return they have created an ambience to ensure their professional and personal development. The company is building a more positive work environment through a host of initiatives like developmental workshops, talks, activities and training programs directed towards enhancing employee engagement and empowering them to lead a more fulfilling life. These programs are divided under three categories

Enhancing Wellness and Well-being Enrichment sessions are conducted for employees on various topics like team building, lifestyle modification, family life education, diet & nutrition and self management. Promoting Life Skills Here the company focused on strengthening interpersonal relationships through sessions on parenting, personality development, mental health & well-being, managing emotions, enriching relationships & married life and creativity & thinking skills along with sessions for parents whose children are appearing in board exams or going abroad for higher studies.

Creating a Vibrant Workplace

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company engage employees through various workshops on dramatics, origami and music; and camps on personal grooming and corporate dressing along with a number of womenoriented events like Mangala Gaur, international women's day, Dandiya Raas, traditional day, Rangoli competitions etc.

Diverse and equal opportunity To promote diversity and provide equal opportunities for development of all the people deployed in our operations. Job openings within the organisation are announced through internal communication channels. Meritocracy governs all aspects in recruiting and rewarding employees. The company complies with the equal remuneration act and meet all statutory & regulatory norms regarding wages & benefits. L&T is committed to abiding by an open and fair industrial relations policy. Company has dedicated to upholding the applicable rules and regulations that have been set out to guarantee basic human rights

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CONCLUSION I am concluding this project by saying that HRM (PRM) practices have now become an indispensable factor for the growth and success of an organisation,hence it is vital for those firms driven by success to adopt this concept or they will be gradually forced to leave the market. Also this concept is dynamic in nature and every firm should stay alert regarding any new advancement or findings in this area, as it deals with Humans (Employees) the most dynamic and active factor with a variety of likes, dislikes, preferences, choices and motivations. Any sort of lax or delay showed here will cost the company its future.

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BIBLIOGRAPHY Personnel Management, Edwin.B.Flippo (Published by Mc-Grawhill,6th Edition ) Web References: http://www.management study guide.com/Personnel Management/ http://www.management paradise.com (PRM vs HRM) http://www.larsentoubro.com/lntcorporate/common/ui_templates/HtmlContainer. aspx?res=P_CORP_DCAR_AINT http://www.raymondindia.com/crs_hr_vision.asp http://blogs.payscale.com/compensation/2009/04/why-is-hr-important.html

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