CHAPTER- 1

MEANING
AND
CONCEPT
OF
PERSONNEL
POLICIES
AND
PRACTICES
 CHAPTER - 1

MEANING AND CONCEPT OF PERSONNEL POLICIES AND PRACTICES.

This chapter briefly presents the meaning, concept,

objectives and pre-requisits of personnel management. Aspects
relating to personnel policies, their aims, need and essential
characterstics have also been discussed. At the end, the concept
of personnel management programmes, procedures and practices have
been presented.

1.1. INTRODUCTION

"The management of man" is a very important and

challenging job: important because it is a job. not of managing
"men", but of administering a social system. The management of
men is a chal lenging task because of the dynamic nature of the
people. No two persons are similar in mental abilities,
traditions, sentiments, and behaviour. They differ widely also
as groups, and are subject to many and varied influences. People
are responsive; they feel, think and act; therefore, they cannot
be operated 1 ike a machine or shifted and altered like a
template in a room 1 ayout. They, therefore, need a tactful
handling by management personnel. If manpower is properly
utilised, it may prove a dynamic motive force for running an
enterprise at its optimum results and also work as an elixir for
maximum individual and group satisfaction in relation to the
work performed. Manpower management is a most crucial job because
1
"managing people is the heart and essence of being a manager."
 Of a n t h e t a s k s o f management, managing t h e personnel
1 s the central and most 1 mportant t a s k because a11 e l s e depends

on how w e l l it is done. T h i s t r u i s m e n u n c i a t e d by Rensis likert

almost f o u r decades ago, i s e q u a l l y v a l i d t o d a y , and under scores

the v i t a l ro 1 e o f personne1 management i n t h e c o r p o r a t e sector.

W i t h o u t human e f f o r t s , organisations cannot accomplish their

objectives. Rensis Likert rightly observed that all the

a c t i v i t i e s o f any e n t e r p r i s e are i n i t i a t e d and determined by t h e

persons whomade up that institution. Plants, Offices,

computers, automated equipments, and a l l elsef t h a t make a modern

f i rm uses a r e u n p r o d u c t i v e e x c e p t f o r human e f f o r t s and t h e

2
d i r e c t i o n s . Even p o o r l y devised machinery may be made t o work i f

it i s manned w i t h w e l l trained, intelligent, imaginative and

devoted s t a f f . On t h e o t h e r hand, t h e best planned organisation

may produce u n s a t i s f a c t o r y r e s u l t s i f it i s o p e r a t e d by medlocres
3
or d i s g r u n t l e d people.

It is this human resource which is of paramount

importance in the success o f any o r g a n i s a t i o n , because most of
the problems in organisational settings a r e human and social
rather than physical, technical or economic. Failure to
r e o r g a n i s e t h i s f a c t cause immense l o s s t o t h e n a t i o n , enterprise
and the i n d i v i d u a l . I n t h e words of oMv&r s h e l d o n , " No i n d u s t r y
can be r e n d e r e d e f f i c i e n t so l o n g as t h e basi c f a c t remains
unrecognised t h a t it is principal ly human. I t is n o t a mass o f
machines and t e c h n i c a l processes, but a body o f men. I t i s not a
complex o f m a t t e r , b u t a complex o f humani t y . It fulfils its
function not by v i r t u e of some unpersonal force, but by human
energy. Its body is not an intricate maze o f mechanical devices
4
but a magnified nervous system.

1.2 PERSONNEL MANAGEMENT:

An organisation needs to recruit, train, develop,

motivate and maintain its people for the successful

accomplishment of its objectives. Irrespective of the type of

organisation- whether Government, business, industrial or

educational; whether working for prof i t or not - it cannot

ignore the importance of "getting, preparing, motivating and

maintaining" an e f f i c i e n t and effective work force. Only

organisations which are conscious of this need can a c h i e v e their

goals by efficiently allocating its resources for the purpose.

Those that overlook this need may n o t go v e r y f a r , and e v e n go

5
out of business, sooner or later. P e r s o n n e l Management is

concerned wi t h people, and g e t t i ng t h i ngs done through peopl*

effectively. For t h i s , it i s necessary t o study the behaviour of

the people a t work i n an organisation. This emerged the

behavioural approach which laid focus on the study and

application of knowledge about how people act within the

6
organisation.

Personnel management is also known as personnel

administration, labour management, labour administration,

industrial relations, human capital management or employer-

employee relations. Different writers have given their own

definitions of personnel management. Some of the popular

definitions of personnel management a r e g i v e n b e l o w w h i c h g i v e an

idea o f what i t means.
The management o f human resources i s viewed as a system

i n which p a r t i c i p a n t s seeks t o a t t a i n both i n d i v i d u a l and group

7
g o a l s . I t s o b j e c t i v e i s t o understand what has happened and i s
happening and t o be prepared f o r t h a t w i l l happen i n t h e area o f
8
working r e l a t i o n s h i p s between the managers and t h e managed.

On a n a l y s i s to this definition it is seen that

personnel management involves procedures and practices through

which human resources are managed ( i . e . o r g a n i s e d and d i r e c t e d )

towards the attainment of the individual, social and

organisational goals. By control ling and effectively using

manpower resources, management t r i es to produce goods and

services for the s o c i e t y .

According t o Edward F U p p o , personnel management i s t h e

planning, organising, directing and controlling of the

procurement, development, compensation, Integration, maintenance

and s e p a r a t i o n of human resources to the end t h a t individual,
9
organisational and s o c i e t a l objectives are a c c o m p l i s h e d . I n t h e

opinion of Pigors, Paul and M y r e s , and others, personnel

management i s method o f d e v e l o p i n g p o t e n t i a l i t i e s o f employees so

that they get maximum satisfaction out of their

10
work and g i v e t h e i r best e f f o r t s t o t h e o r g a n i s a t i o n . According
to Northoot, C.H., personnel management i s an e x t e n s i o n of

general management, that of p r o m p t i ng and s t i m u l a t i n g every

employee to makehis fullest contribution to

11
the purpose o f a b u s i n e s s .
 In a nut shel1 , the personnel management is concerned
with recruitment, placement, development, motivation and
maintenance of competent and loyal workers in an enterprise.

1.3 OBJECTIVES OF PERSONNEL MANAGEMENT:

The American Management Association has very succinctly

summarised the objectives of Personnel Administration. It says
the purpose of a business enterprise is the profitable
production of goods and services to fulfi11 economic needs in
such a way as to provide satisfactory returns to both economic
and social suppliers, owners and members of the organisation,
under conditions which provide for the maximum conservation of
12
human and material resources over a continuing period.

Following this statement, the objectives of personnel

management may be laid down as follows:

i) To achieve an effective utilization of human resources

in the achievement of organisational goals;

i i) To maintain good human relations within the organisation;

iii) To establish and maintain an adequate organisational

structure and a desirable working relationship among all
the members of an organisation by dividing of
organisational tasks into functions, positions and job
etc. ;

iv) To secure the integration of the individuals and

groups within an organisation, by reconciling
 6

individual/group with those of an organisation in such

a manner that the employees feel a sense of involvement,
commitment and loyalty towards it;

v) To establish recruitment system for hiring the best

possible employees consistent with the organisation's
needs;

vi) To retain employees whose performance helps the

organisation realize its goals and release those whose
performance is unsatisfactory;

vii) To provide fair, acceptable and effective leadership;

viii) To maintain a high morale and better human relation

inside an organisation by sustaining and improving the
conditions which have been established so that
employees may stick to their job for a longer time;

ix) To generate maximum individual/group development within

an organisation by offering opportunities for
advancement to employees through training and job
education or by effecting transfers or by offering
retirement benefits.

1.4 PRE-REQUISITES OF PERSONNEL MANAGEMENT:

The personnel management has unique significance in
every organisation because it makes possible the effective use of
human resources alongwith material resources.
 The followings are the pre-requi sites of personnel
13
management:-

i) Capable people should be picked up on the basis of

the qualifications fixed;

ii) Individual and group efforts/potentialities must

be effectively utilized;

iii) Willing Co-operation of the people to achieve the

objectives must be av ail able by creating such
f eel ings as "people work wi th us" rather than
saying that "people work for us";

iv) The tasks of an organisation should be properly

divided inaccordance wi th a sound pi an i nto
functions and positions;

V) The objectives should be clearly defined, failing

which a great deal of confusion may arise;

vi) The goals to be achieved should be specially made

known to all concerned in the language best
understood by them;
vi i) Suitable monetary and non-monetary incentives, in
the form of adequate and reasonable pay packets,
service benefits and security against hazards of
1 ife and of employment and against the arbitrary
actions of supervisors should be available to
employees.
 8

It is fact that i n o r d e r t o accomplish t h e objectives

of the organisation, the contribution of employees is of

paramount importance. No o r g a n i s a t i o n can f l o u r i s h uniti1 and

unless t h e employees w o r k i n g i n t h a t o r g a n i s a t i o n a r e satisfied,

m o t i v a t e d amd committed. I n order t o c r e a t e c o n g e n i a l , conducive

and h e a l t h y work c u l t u r e in the o r g a n i s a t i o n , the personnel

p o l i c i e s and p r a c t i c e s are o f g r e a t relevance.

1.5 PERSONNEL POLICIES:

The d i c t i o n a r y meaning of "Pol i c y " is a p i an of

action and t h a t plan is a policy. A policy,says Flippo" is a

man-made rule of p r e - d e t e r m i ned course of action that is

established to guide the performance of work towards the

organisation objectives. It is a type of standing plan that
14
serves t o guide subordinates in the execution of their tasks.

The policies are the statements of the Organisation's

over-al1 purposes and i t s o b j e c t i ves i n the v a r i o u s areas wi t h

which its operations areconcerned- personnel, finance,

15
p r o d u c t i o n , m a r k e t i n g and so on.

Personnel policies constitute guides to action.

They furnish the general standards or basis on which

decisions are reached. Their genesis lies in
an
16
organisation's values, philosophy, concepts and principles.

Personnel or labour or i n d u s t r i a l , r e l e t ions policy p r o v i des

guidelines for a variety of employment relationships in the

organisation. These guidelines identify the organisation's

intentions in recruitment, selection, promotion, development,

compensation, organisation, motivation and o t h e r w i s e leading and

directing people in the working organisation. Personnel

17
policies serve as a road map for managers. Personnel
policies provide guidelines for achieving the goals of personnel

management. Personnel policies comprise the body of principles

and rules of conduct which governs enterprise in its

18
relationship with its employees.

Personnel policies are p r e - d e t e r m i ned wri tten

guidelines established for decision m a k i n g on p e r s o n n e l matters.

Personnel policies exist in every organisation. The extent to

which they are w r i t t e n , c o m m u n i c a t e d and c o n s i s t a n t l y a p p l i e d may

differ from organisation to organisation. Organisations

interested in mai n t a i n i n g the trust and confidence of thei r

19
employees strive to score high on these three counts.

Personnel policies are the keystone in the arch of

management and the life-blood for the successfull

f u n c t i o n i ng of the personne1 management because, wi t h o u t those

policies, there cannot

be any l a s t i ng improvements in 1abour
20
management r e l a t i onsh i p s .

1.6 AIMS OF PERSONNEL POLICIES:

The management must g e a r its policies and o b j e c t i v e s in

such a f a s h i o n t h a t t h e employees p e r f o r m t h e i r w o r k and do their

assigned task. It implies a consideration of human b e i n g s as a

resource.
 10
The aims of personnel policies should be as
21
follows:-
i) to enable an organisation to fulfil or carry-
out the main objectives which have been laid
down as the desi rable mi nima of general
employment policy;
ii) to ensure that its employees are informed of
these items of policy and to secure their
cooperation for their attainment;
iii) to provide an adequate, competent and trained
personnel for all levels and types , of
management;

iv) to protect the common interest of al 1

parties and recognise the role of trade
unions in the organisation;
v) to provide an effective consultative service
which aims at creating mutual faith among
those who work in the enterprise;
vi ) to establish the condi tions for mutual
confidence and avoid confusion and
understanding between the management and
the workers;
vii) to provide security of employment to workers
so that they may not be di stracted by the
uncertainties of their future;
vi i i) to provide an opportunity for growth within
the organisation to persons who are wi11ing
 11
to learn and undergo training to improve

their future prospects;

ix) to provide for the payment of fair and

adequate wages and salary to workers so that

their healthy co-operation may be ensured for

an efficient working of the undertaking.

Carefully defined personnel policies serve as a

stabilizing influence to prevent the waste of energy in following

programmes not in harmony with the organisation objectives.

They promote cooperation in the organisation as a whole and

foster initiative and drive, particularly at lower leve.ls of

supervi sion.

1.7 NEED FOR PERSONNEL POLICIES

The formulation of personnel policies is basically

needed, first to have a formal statement on corporate thinking
which will serve as a guideline for action and secondly to
establish consistency in the application of the policies over a
period of time so that each one in the organisation gets a fair
and just treatment.

Personnel policies need be specifically created

22
because of the following reasons:-

The basic needs and requirements of both an

organisation and its employees require deep

thought;

Established policies ensure consistent treatment

of all personnel throughout an organisation;
 12
A certainty of action is assured even though
the top management personnel may change;
Because they specify routes towards selected
goals, policies serve as standards or
measuring yards for evaluating performance;
Sound policies help to build employees
enthusiasm and loyalty;

They set patterns of behaviour and permit

participants to plan with a greater degree of
confidence;
Policies are control guides for delegated
decision making.

1.8 ESSENTIAL CHARACTERSTICS OF SOUND PERSONNEL POLICY

While designing personnel policies, the management must
balance the needs, objectives and values of both the employers
and the employees. The main features of a good personnel policy
23
are:
i) The statement of any policy should be

definite, positive, clear and easily

understood by everyone i n the o r g a n i s a t i o n ;

ii) It should be w r i t t e n i n o r d e r t o preserve it

against loss, to stimulate careful

consideration before its formulation and
prevent the promulgation of numerous,

differing and t e m p o r a r y o r a l policies from

m u l t i p l e sources;
 iii) It must be reasonably stable but not rigid;
iv) It must be supplementary to the overall policy
of an organisation, for if departmental
policy is made such as to come into conflict
and vol late the company policy, it would be
tentamount to insubordination;
v) It should indicate that the management knows
that workers prefer to deal with the
management on an individual basis;
vi) It should recognise the desire of many
workers for recognition as groups in many
of their relationships;
vii) It should be the result of a careful analysis
of all the available facts;
viii) It should be consistent with public policy;
ix) It should be generally known to all interested
parties;
x) It must not have only the support of the
management but the co-operation of employees
at the shop floor level and in the office;
xi) Before evolving such a policy, trade unions
should be consulted in matters of industrial
relations;
xii) It should be progressive and enlightened;
xiii) It should be uniform throughout the
organisation;
XiV) It shou 1 d have a sound base in appropriate
theory and should be translated into
 14

practices, terms and peculiarities of every

department of an enterprise.

1.9 PROGRAMMES, PROCEDURES AND PRACTICES

Programmes provide a step by step approach to guide

the action necessary to reach pre-determined goals,The
programmes are organised within the framework of
24
personnel policies. It consists of the entire broad
course of action governing employees at all levels.
It can be thought of as a
stable plan of action
25
that continues over an extensive period of time. It is
the end product of the philosophy, values, concepts,
26 .
principles, policies and procedures. Programmes
represent simple or complex activities, presumably
developed to carry out pol icies. They are a step ahead
of pol icy in that they simpl ify the process of decision
making and reduce it to a routine. To implement
training policy, for example, management may develop
a training programme which may include specific
job training for new employees, supervisory training
for supervisors and foremen, and executive development
programme for the management group.

Procedures explain the exact manner in which policies

are implemented. While a policy indicates 'what and why*,
procedures indicate 'how' a policy is to be carried out.
It spelIs out in detai1 the methods, processes, movements
and specific rules and regulations and indicate the
 15

Steps, time, place and personnel responsible for

27
implementing them. Procedures go further than policies

in helping to clarify what is to be done in particular

ci rcumstances.

What is actually done in an organisation is called

practice. Practices and procedures are the specific actions

that may be combined in a programme. In the supervisory

training programme, role playing may be considered as one of

the training practices. In some cases, observers may

inference policy from practice, but such as inference may

28
in error.

Thus p e r s o n n e l policies d e c l a r e what is intended

and proposed by the management on personnel matters.

Programmes, procedures and p r a c t i c e s describe how

policies are being implemented.

1.10 RELEVANCE OF PERSONNEL POLICIES

Personnel management policies have unique

significance i n every o r g a n i s a t i o n because i t makes possible

the effective use o f human resources alongwith material

resources. Effective personnel policies have significant

value in an organisation for attracting and retaining

competent and c a p a b l e personnel in the organisation. The

planning function of personnel management ensures

r e c r u i tment of d i f f e r e n t type of personnel in the short,

medium and l o n g run. It helps to identify the best people

 16

for available jobs through recruitment and selection

procedure. It also ensures that they are placed in suitable

positions. The personnel policy of performance appraisal

and training enable individuals to develop ski 11, knowledge

and atti tudes di fferent from those they current1y possess

The well considered and documented personnel policies also

moti vates personnel to excell in their work and provide

maximum opportunity for personnel development.

Personnel management policies are relevant from the

point of view of society because these help to :-

- maintain a balance between job seekers and job

available;

provide suitable and most productive employment;

provide harmonious relations among different work

groups;

improve employees' working skill and capacity;

reduce income disparities through standardisation of

wages in the organisation.

In brief, personnel policies should respect human

dignity and personal integrity, ensure f ai r treatment for all,
irrespective of caste, creed, colour and offer reasonable social
and economic security to employees. They should be so designed
as to ensure that work and accomplishment are properly recognised
and safe and healthy conditions of work are created.
 17
REFERENCES:-

1. Dale Yoder, "Personnel Management and Industrial

Relations", Printice - Hall of India, New Delhi, 1972
p.8

2. Rensis Likert, "The Human Organisation -Its management

and Value", Mc Graw - Hill book company, New York
1967 p.1
3. Walter R Sharp,"Field Administration in United Nation
System",quoted in Pawan K.Kumar,Cooperative Management-
Practices , Problems and Prospects, New Delhi-Deep and
Deep Publications, 1997, P.111.
4. Oliver Sheldon, "Philosophy of Management", Printice-
Hall, Englewood Cliffs, N.J,, 1923 p.27

5. Dinkar Pagare, 'Principles of Management", Published by

Sultan Chand and Sons, New Delhi, Reprinted 1984 p.320
6. Davis Keith, "Human Behaviour at Work, Organisation
Behaviour", Tata McGraw Hill Publishing Company Ltd.,
New Delhi, 1985, p.3
7. D. Yoder, " Personnel Management and Industrial
Relation". Printice-Hal 1 of India, New Delhi,1972,
p. vi i i.
8. D, Yoder , ibid, pp.4-5.
9. Edwin B. Flippo-"Personnel Management", McQraw -Hi 11-
Kogakusha Ltd., 1980, International Student Edition p.5
10. Pigors, Paul and Myres, Charles A., "Personnel
 16

Admi n i strati on- A Polnt of Vi ew and Method", McGraw

Hill Book Co., Kagakusha Ltd., Tokyo, 1961, Second
Edition 1961 p.11
11. C.H. Northcot, "Personnel Management- Principles and
Practice", Sir Issac Pitman sons, London, 1958, P.12.
12. Personnel,Vol.24, No.1, July,1947, pp.5-8.
13. C. B. Mamoria , "Personnel Management", H imalaya
Publishing House, Twelfth Edition, reprint 1997 pp.23-24
14. Edwin B. Fi11ipo, "Personnel Management", McGraw - Hill
Kogakusha Co. Ltd., Tokyo, 1976,p.84
15. James B. Bambrick, "Developing Workable Personnel
Policies" in the Personnel Man and His Job, D. B.
Taraporevala & Sons, Bombay, 1967,p.88
16. R. Calhoon , "Personnel Management and Supervision",
Appletion Century Crafts, New York, 1967, p.21
17. Dale Yader, "Personnel Management and Industrial
Relations", Printice - Hall of India Pvt. Ltd., New
Delhi, 1972, pp.27-28
18. Walter Di 11 Scott, "Personnel Management- Principles,
Practices and Point of View" New Delhi : Tata McGraw-
Hill Publishing Company, 1977, p.47
19. Lesser R. Bittel, "Encyclopaedia of Professional
Management", McGraw Hill Book Company, 1978, p.872
20. C. B. Mamoria, "Personnel Management", Himalaya
Pub!ishing House, Mumbai, 12th edition, reprinted
1997, p.61
21. C. B. Mamoria, ibid, pp.61-62
 19
22. Besich, Dale S., "PersonnGl : The Management of
People"' MacMillans Collier, New York.1977, pp. 48-49
23. C. B. Mamoria, " Personnel Management", Himalaya
Publishing House, Mumbai, 12th edition, reprinted 1997
pp.65-66
24. M. N. Rudrabasavaraj, "Personnel Admi ni strati on
Practices in India", Poone, Vaikunth Mehta National
Insti tute of Co-operati ve Management, 1969, p, 74
25. Brown, Milton, "Effective Work Management",1980. p.79
26. R. Calhoon ,"Personnel Management and Supervision.",
Appletion Century Crafts, New York, 1967, p. 41
27. Brown, Milton op. cit., p.75
28. Dale Yoder op. cit., p.41