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Chapter 2 PERSONNEL MANAGEMENTPersonnel Management- course outline  Introduction  Functions of Personal Management  Development of Personal Policy  Manpower Planning  Recruitment and Selection of manpower – Scientific selection  Training and Development of manpower  Job Analysis, Job Evaluation and Merit Rating  Wages and Incentives www.ThesisScientist.com1. Introduction Personnel Management is that part of total management of an organization which specifically deals with human resources of i. their procurement, ii. their development in terms in skills, knowledge and attitude, iii. their motivation towards the attainment of organizational objectives, by creating and maintaining an organizational climate conductive to such development. “Personnel Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, and maintenance of personnel of an organization for the purpose of contributing towards the accomplishment of the organizational, individual and social goals.” – Edwin B. Flippo www.ThesisScientist.com1. Introduction Aims/Objectives of Personnel Management i. Aims at getting the best out of personnel. ii. Maximum individual development. iii. Improves the services rendered to the society. Characteristics i. Part of general management. ii. Certain specific principles and policies. iii. Humanistic behavior. iv. Philosophy of management. www.ThesisScientist.com2. Functions of Personnel Management Personnel management is a managerial activity involving advisory, executive and administrative responsibilities and functions as given below. i. Development of personnel policy. ii. Manpower planning. iii. Recruitment and selection of manpower. iv. Analysis, description and valuation of the work. v. Compensation and schemes of appraisal of the work. vi. Keeping records of personnel. vii. Welfare and safety programs. viii. Training and development of manpower. ix. Wages and salary administration. x. Collective bargaining (negotiations with trade unions). xi. Promotions, transfers and retirement of employees. www.ThesisScientist.comPrinciples of Personnel Management Principles of personnel management are the rules which help the personnel managers to conduct and direct the policies in a proper way. I. Principle of Maximum Industrial Development. II. Principle of Scientific Selection. III. Principle of High Morale. IV. Principle of Dignity of Labor. V. Principle of Team Spirit. VI. Principle of Effective Communication. VII. Principle of Joint Management. VIII. Principle of Fair Award. IX. Principle of Effective Utilization. X. Principle of Contribution of national prosperity. www.ThesisScientist.com3. Development of Personal Policy Personnel policies serve as a guide to the subordinates in taking quick decisions. Policies are not objectives. They are only means to end. Policies are formulated to achieve personnel and organizational objectives. For example, the policy of promotion from within may be formulated with the objective of individual development. The chief objectives of personnel policies are: - maximum development of workers, maximum use of their abilities, skill and talents. - Good labor relations. - safeguard the interest of labor and customers etc. www.ThesisScientist.com3. Development of Personal Policy A good personnel policy must include the following: i. Company name, history and structure. ii. Sources of recruitment, selection procedure. iii. Training and welfare. iv. Wages and Incentives. v. Promotion policy. vi. Retirement plan. vii. Collective bargaining. www.ThesisScientist.com4. Manpower Planning Manpower planning may be defined as, the scientific process of allocating the right quantity of right men to be required in future at right time on the right job. Manpower planning is done to fulfill the two main objectives namely, i. To utilize the present employees fully, and ii. To fill up future manpower requirements. Types of manpower planning can be distinguished: i. On the basis of the level at which it is done, a. Macro-level (national level) b. Micro-level (Industrial unit level) ii. On the basis of the period for which it is done. a. Short period b. Medium period c. Long period. www.ThesisScientist.com4. Manpower Planning Factors affecting Manpower planning. i. Working hours. ii. Number of shifts. iii. Nature of production. iv. Product mix. v. Performance rate. vi. Hours lost. Steps in Manpower planning. i. Understanding the business activities. ii. Identification of tasks. iii. Manpower forecast. iv. Job analysis v. Reviewing the existing manpower. vi. Anticipating the availability of manpower from external sources. vii. Manpower management. www.ThesisScientist.com5. Recruitment and Selection of manpower “Recruitment is the development and maintenance of adequate manpower resources. It involves the creation of a pool of available labor upon whom the organization can depend when it needs additional employees.” – Dales S. Beach The sources of manpower supply for different categories of workers (unskilled, semi-skilled and highly skilled) can be broadly classified as: i. Internal i.e. recruitment from within the industry. ii. External i.e. recruitment from outside. (former employees, recommendations, employment exchange, advertisement, applications at the gate, educational and academic institutions, labor unions). www.ThesisScientist.com5. Recruitment and Selection of manpower Scientific selection A scientific selection procedure ensures the selection of suitable candidate for a particular job. The object of scientific selection is to place on each job a worker who can maintain a given output with minimum expenditure of energy and who will be best fitted to the job, “right person for the right job”. The major factors in individual fitness for a job are: I. Physical characteristics: sound body, limbs, height, weight, eye sight etc. II. Personal characteristics: age, sex, marital status, previous experience, place of birth, number of children etc. III. Proficiency or skill and ability: This is the basic characteristic in fitting worker to a job. IV. Competency: Potentiality of an individual for learning and becoming proficient in a job. It points out the capacity to acquire knowledge and skill for success on the job. V. Temperament and character VI. Interest in vocational fitness. www.ThesisScientist.com5. Recruitment and Selection of manpower Methods of Selection (Selection procedure) 1. Receipt of applications. 2. Scrutiny of applications (preliminary screening) 3. Preliminary interview. 4. Application blank. 5. Employment (intelligence, trade, psychological, aptitude, interest, personality) test 6. Employment interviews. 7. Reference check. 8. Medical examination. 9. Final Selection. www.ThesisScientist.com6. Training and Development of manpower Training may be defined as “ a well thought and well planned processes of conscious learning of new knowledge and skills for improving the learner’s ability to perform certain tasks and activities, more efficiently and effectively, in immediate/near future, with active support of some other individuals.” Development is a long term educational process utilizing a systematic and organized procedure by which managerial personnel get conceptual and theoretical knowledge. An executive development program aims at increasing the capabilities of the individuals to achieve the desired objectives. Objectives of training and development 1. Disseminating of knowledge. 2. Development of skills. 3. Change of attitudes. www.ThesisScientist.com6. Training and Development of manpower Benefits/advantages of training 1. Increased productivity. 2. Higher Employee morale. 3. Reduced accidents. 4. Reduction in spoilage, wastage and optimum utilization of resources. 5. Reduced supervision. 6. Increased organizational stability and flexibility. 7. Self Development versatility and adaptability. 8. Reduced turnover and absenteeism. 9. Reduction in machine breakdown and maintenance cost. 10. Increase in earning of the employees. www.ThesisScientist.com6. Training and Development of manpower Methods of training workers 1. Demonstration: In this, the supervisor/instructor actually demonstrates how to do a certain task which can be seen in small concerns like workshops, auto repair shops etc.. E.g. the instructor shows how to perform a certain job on a center lathe. 2. On-the-job training: In this, the supervisor gives instructions to a new worker, explains the nature of work, the use of machine and tools, safety precautions etc. and shows how it is being done by an experienced worker. 3. Vestibule training: It is a special training school for training the employees. An attempt is made to duplicate as nearly as possible the actual equipment, material and conditions in a real work situation. 4. Apprenticeship: It is used to develop all round craftsmen (machinist, tool makers, mill wrights, fitters, welders). It is generally best suited to the large firm with a steady demand for skilled labor. www.ThesisScientist.com6. Training and Development of manpower Methods of training supervisors 1. Induction and Orientation. 2. Lecture (classroom) methods. 3. Conference. 4. Written instructional method. 5. Training within the industry. Methods of training executives 1. On-the-job training - Understudies (appointment as an assistant to). - Membership of the committee. - Job rotation. - Job enlargement, job enrichment. - Management by objectives. 2. Off-the-job training - Lecture method. - Case study method. - Business games - Role playing. www.ThesisScientist.com7. Job Analysis, Job Evaluation and Merit Rating A job may be defined as a regular assignment to individual employee involving a set of duties, responsibilities and conditions entirely different from those of other assignments. Job analysis is a detailed and systematic study of job to determine the tasks, skills, knowledge, abilities and responsibilities required for their successful performance. In this procedure the job analyst (or a supervisor properly trained in the technique): 1. Collects information. 2. Prepares job description. 3. Works up job specification. www.ThesisScientist.com7. Job Analysis, Job Evaluation and Merit Rating The data collected during job analysis may be classified as: 1. Job identification. 2. Nature of the job (major duties, other duties) 3. Operations to be performed. 4. Materials and equipments to be used for performing the job. 5. Skill involved to determine degree of difficulty (education, training, responsibility, job knowledge, mental capabilities, desired accuracy). 6. Physical demands to determine physical effort required (physical activities, working conditions, hazards). 7. Relation with other jobs. www.ThesisScientist.com7. Job Analysis, Job Evaluation and Merit Rating Job analysis can be divided into two main groups: I. Job description: It is an abstract of information received from the job analysis report. It is an organized statement of duties, responsibilities, working conditions, and other essential facts about a job. Job description comprises of three parts: job identification, job summary and work performed. II. Job specification: It is an outcome of job analysis and description. The job specification is a statement of qualities or abilities that an employee must posses to perform the job in a satisfactory manner.