1. Personnel Management
Defined as the management function that helps managers in the
procurement, development, compensation, integration, maintenance and
seperation of human resources so as to accomplish individual, functional,
organisational and societal objectives.
Objectives
 Primary- Ensuring the availability of competent and willing workforce to
the organisation
 Secondary-
1. Personal
2. Functional
3. Organisational
4. Societal

2. 1. Personal Objectives
- Assisting employees in achieving their personal goals
- Done by retaining and motivating employees
Supporting functions
 Training & Development
 Performance Appraisal
 Compensation
 Placement
2. Functional Objectives
- Assisting each department to contribute at the level appropriate to the
organisation needs
Supporting functions
 Performance Appraisal
 Placement

3. 3. Organisational Objectives
- To recognise the role of HR department in bringing about Organisational efffectiveness
Supporting functions
 Human Resource Planning
 Employee Relations
 Selection
 Training & Development
 Performance Appraisal
4. Societal Objectives
- To meet the needs and challenges of the society while minimising the negative
impact upon the organisation
Supporting functions
 Maintain legality in every action
 Giving proper benefits
 Maintain good Union-Management relation

4. Personnel Management Vs Human Resource Management
Sl No. Charateristics PM HRM
1 Employee Contract Careful practice of Go beyond Contract
written contract
2 Management Action Based on procedures Based on business needs
3 Managerial Task Monitoring Nurturing
4 Management Skill Negotiation Facilitation
5 Respect for employees Low Greater
(treated as tools/m/cs) (treated as assets)
6 Key Relations Labour Management Customer

5. Personnel Management Vs Human Resource Management Cont..
Sl No. Charateristics PM HRM
7 Job Design Division of Labour Teamwork
8 Job Categories Many Few
9 Pay Based on Grades/ Based on Performance
Experience
10 Communication Indirect Direct
11 Speed of Decision Slow Fast
12 Management Role Transactional Transformational
13 Conflict Handling Try to reach temporary Manage Climate &
truce Culture

6. Human Resource Management Functions
Categorised as
1. Managerial
2. Operative
3. Advisory
Managerial functions include:
 Planning - refers to the determination of short to long range plans to accomplish
organisational goals and objectives and formulation of policies to achieve them
 Organising – Determination and development of organisational structure and allocation
of jobs according to predetermined plans
 Staffing – Process by which managers select, train, promote and retire their
subordinates
 Directing – Process of activating group efforts to achieve desired goals
 Controlling – Process of setting standards of performance, checking to see how actual
performance compares with set standards

7. Operative Functions
Procurement Development Compensation Integration Maintenance
Job Analysis
HRP
Recruitment
Selection
Placement
Induction
Transfer
Promotion
Seperation
Performance
Appraisal
Training
Career
Planning &
Development
Executive
Development
Job Evaluation
Wage & Salary
Administration
Bonus &
Incentives
Payroll
Motivation
Job
Satisfaction
Grievance
Redressal
Collective
Bargaining
Conflict
Management
Discipline
Safety
Social Security
Welfare
Schemes
Personnel
Record
Personnel
Research
Personnel
Audit
Health

8. Advisory Functions
Include:
1. Giving advise to top Management
2. Giving advise to functional heads

9. Human Resource Principles
Principle refers to the fundamental truth established by research, investigation and
analysis
HR principles helps HR managers in formulating policies, programmes,
procedures
and practices of Human Resources
Include:
1. Principle of individual Development
- Offering equal opportunities to every employee to realise his /her full
potential
2. Principle of Scientific Selection
- Selection of right person for the right job
3. Principle of free flow of Communication
- HR dpt should maintain/keep all channels of communication including
open, upward, downward, horizontal, formal and informal ways

10. Human Resource Principles Cont…
4. Principle of Participation
- Include employee representatives at every level of decision making
5. Principle of fair remuneration
- refers to the fair and equitable wages and salaries commensurating with jobs
6. Principle of Incentive
- Recognise and reward for good performance
7. Principle of Dignity of Labour
- Treating every job and every job holder with dignity and respect

11. Human Resource Policies
Policies refers to a plan of action that guides managerial decisions.
 Should be specific and commits management to a definite course of action
Include:
1. Policy of hiring people with due respect to factors like reservation, marital
status and gender
2. Policy on terms and conditions of employment including compensation, hours of
work, overtime, promotion, transfer, layoff
3. Policy with regard to medical assistance like sickness benefits, ESI, company
medical benefits
4. Policy regarding housing, transport, uniform
5. Policy regarding training and development which explains its need, methods and
frequency
6. Policy regarding industrial relations which include trade union recognition,
collective bargaining, grievance procedure, participative management and
communication with workers

12. Human Resource Policies- Advantages
 Ensure consistent treatment to all personnel discretion like favouritism and
discrimination in the company
 Serve as standard of Performance
 Help to build employee, motivation and loyalty
 Helps to resolve interpersonal, intrapersonal and intergroup conflicts
 Continuity of action is assured even though there is a change in top
management

13. Factors to be considered in framing HR Policies
 Past practice in the Organisation
 Prevailing practice in the competitor/ rival companies
 Attitudes and Philosophy of the founders of the company and the top
management
 Knowledge and experience gained through handling personnel problems in
the company

14. Changing Role of Personnel Management in India
Personnel Management has been changing dramatically over the last century
End of 19th
Century - 1920 Personnel Management concept was not there
Routine Organisational HR activities were
handled by welfare officers/welfare secretaries
Concentrates mainly on the welfare of Women & Children

15. Changing Role of Personnel Management in India Cont…
Period Development Stage Feature Emphasis Status
1920s-1930s Beginning stage Capitalistic Statutory, Clerical
mentality Welfare
1940s-1960s Growing stage/ Technical, Introduction Administrative
Struggling for recognition Legal of
new techniques
1970s- 1980s Achieving Sophistication Professional, Regulatory, Managerial
Legal Imposition of
standards on
other function
1990s- Promising Philosophical Human values, Executive
Productivity
through people

16. HR Managers Function
 Provide individual development to the Organisation with skilled workforce
for all levels
 Devising suitable training programmes for transference and development of
individual skills to suit changes in working patterns
 Structuring procedures for recruitment, training, placement, promotions and
movements with in the industry
 Provide employee services for matters concerning health, work related
facilities, welfare services etc
Transformation of HR Managers function
Management of HR Development and Maintenance of
Organisational Effectiveness

17. HR Managers Role
Primary - Interpreting the progressive needs of the organisation and
direct potential towards a common goal
Secondary
1. Collective Bargaining Role –
Centered around dealing with trade unions which might be added to the
development of strategies for handling Industrial relations
2. Implementation of legislation Role-
Implying, understanding and implementing the growing amount of
legislation

18. HR Managers Role Cont…
3. Bureaucratic Role-
Implementating a series of rules about behaviour at work, dealing with
recruitment, managing absenteeism
4. Social conscience of the business Role –
Refers to welfare functions with regard to society
5. Performance Improvement Role-
About integrating personal function with businesss needs

19. Competencies needed for an HR Manager
 Should be a master in the decision science of HR
Should have good knowledge about Constitution, Govt’s labour policy,
General economic condition prevailing in the country
 Capability to understand and manage people
Should be sympathetic and have concern towards employees demands
Should be fair in the matters of promotions, demotions, transfer, layoff
Should be firm in enforcing discipline
 Capability to create and adapt with new culture/mindset
Should be tactful & resourceful
 Responsive to social expectation
Should be socially committed by undertaking activities that comes under social
responsibility
 Ability to express himself or herself