18.1, INTRODUCTION In all business organisations, there is one common el organisation is one of the most important inputs. However techni industry may be, it eannot be denied that itis the human brain which desi human being only who can extract work from other resources (1m: minds to function effectively. The efficiency and effectiveness of any organisation n. Performance is .s. People working in the ally sophisticated and automated an ns, creates and maintains it. Itis the \es, equipments etc.), create perfect (i.e. human resour environment for the huma is determined by the performance of the people working at all levels in the organisat determined by several factors, most important of them are ability to perform and willingness to perform, Because of unique importance of human resources and its complexity due to everchanging psychology, behaviour and attitudes of men and women at work, personnel management has acquired a new dimension in to day’s business organisations. Personnel management is one of the specialized functions necessary for the effective utilization of human resources. ILis an extension of general management, that of promoting and stimulating every employee to make his fullest contribution to achieve the objectives of the business. It is also called as Personnel Administration or manpower management. 18.2. DEFINITIONS The important definitions of personnel management are given below : tis that part of the total management of an organisation which specifically deals with human resources in respect of : (0 their procurement (i) their developmentin terms of skills, knowledge and attitude (ii) their motivation towards the attainment of organisational objectives by creating and maintaining an organisational climate conducive to such development. According to Professor Michael Jucius : “Personnel management is that field of management which has to do with planning, organising and controlling various operative functions of procuring, developing, maintaining and utilising a labour force in such a way that : (a) The objectives for which the company is established are attained economically and effectively. (b) Objectives of all levels of personnel are served to the highest possible degree. (0) Objectives of the community are duly considered and served,” According to Edwin B. Flippo. “Personnel management is the planning, organising, directing and controlling of the procurement, development, compensation, integration and maintenance of personnel of an organisation for the purpose of contributing towards the accomplishment of the organisational, individual and social goals. In a sense, management is personnel administration, It is the development of people and not merely direction of material resources. If'we define the term MANAGEMENT as to MANAGE-MEN-T-ACTFULLY. the importance of the management of human resource becomes quite clear. Personnel management is the direction and co-ordination of human relations in the business organisation, thereby obtaining maximum production with minimum of physical and mental effort, stress and strain on the individual workers and groups of workers and without sacrificing the genuine well-being of the employees.18.3, AIMS OR OBJECTIVES OF PERSONNEL MANAGEMENT (@ Personnel management aims at getting the best out of the people by winning and maintaining their whole-hearted collaboration. (i) Its objective is to attain maximum individual development, desirable work atmosphere and inter- personne! relations and effective moulding of human resources as contrasted with physical resources. (iii) The essence of personnel management is the understanding of people at work (human factor in industry) and on the basis of this knowledge, formulating policies of the enterprise. (iv) It also aims at improving the service rendered by the enterprise to society through building better employee morale and motivation, that leads to more efficient individual and group performance. (v) To establish in the minds of those connected with the enterprise employees, shareholders, creditors, customers and the public at large, the fact that the enterprise is rendering the best service of which it is capable and distributing the benefits derived there from fairly in the light of the relative contributions of each to the success of the enterprise. 18.4. CHARACTERISTICS OF PERSONNEL MANAGEMENT From the definitions discussed above it becomes clear to one that the personnel management is a part of general management of which all theories are applicable to the personnel management. By the analysis of the definitions of various authors we come across the following characteristics of the Personnel Management : (i) It is a part of the general management and principles of general management are applicable to personnel management as they are applicable to other managements. (ii) There are certain specific principles and policies of the personne! management by which full development of the labour is attempted. (iii) Personnel management is fully based on the consideration that labour is a lifeful item hence it must get the humanistic behaviour. Hence the aim of the personnel management is to instigate the optimum use of the personnel power of the workers and to get cooperation from them to this effect. (iv) It is the management of human power resources which if rightly used leads to profitable effect for whole people. (») Personnel management defines the relations of the personnel, i.e., it deals with the relations of the personnel towards management with mutual relations with personnel and management as related to management. A (vi) Personnel management stresses on the personnel and collective development of the personnel which is based on personnel ability and capability. This means that while framing the policies for the development of the labour, their ability and capability are fully considered. (vii) Personnel management is an approach, a point of view, a technique of thinking and a philosophy of management. 18.5. FUNCTIONS/SCOPE OF PERSONNEL MANAGEMENT ‘The subject-matter of personnel management is human being. The more profit could be obtained by controlling the men in industries. Pointing out to this fact a famous American industrialist has stated that, “We do not manufacture automobiles, aeroplanes, refrigerators, radios or shoes but we manufacture men and they in turn manufacture the goods”, ‘The scope of personnel management involves obtaining and maintaining an efficient work-force as a means of achieving profitable production of goods and services. “Obtaining” means such activities as selection, recruitment and employment of personnel, and testing their aptitudes and capabilities. “Maintaining” implies employee's satisfaction with respect to wages, hours, working conditions. employee's benefis, health and safety, and day-to day relations and, the erm “Efficient” denotes the necessityfor proper placement and training and high job performance as well as job satisfaction for the individual employee, ; ae Personnel Management (Human Resource Management) is thus a managerial activity involving advisory, executive, and administrative responsibilities and functions as given below : : 1. Development of a personnel policy. The personnel policies serve as a guide to the executives, managers to discharge the duties and responsibilities related to personnel administration, Manpower planning. Ascertaining the requirements of human resources in the light of organisation goals and objectives. : 3. Recruitment and, selection of manpower. Attracting, selecting and employing suitable individuals. 4. Analysis, description and valuation of the work. 5. Compensation and schemes of appraisal of the work and informing the employees about their accomplishment and failures to facilitate their development. Keeping records of personnel, Welfare and safety programmes. Training and development of manpower. 9. Wages and salary administration, 10. Collective bargaining (negotiations with trade unions). 11, Employee grievance handling (labour relations). 12. Promotion, transfers and retirement of employees etc. 18.6. PRINCIPLES OF PERSONNEL MANAGEMENT Principles are those fundamental rules which guide the management. Principles of personnel management are also the rules which help the personnel managers to conduct and direct the policies in a proper way. CH, Northcott has given four principles of personnel management. According to George D. Hells, they are seven in numbers while Labour Management Institute of England has put in nine principles. We will discuss them in brief hereon. exe © Principle of Maximum Industrial Development. This principle stresses on the personal development of every person working in an organization. By this principle, workers are able to fulfil the objectives of an organization within minimum cost hence giving them occasion to develop should be the personnel management's chief principle. By this the workers will be able to develop themselves to the maximum extent and their developed ability, cleverness, productivity and efficiency could be used for the concern’s objective. (ii) Principle of Scientific Sélection. For the proper coordination between work and workers it is necessary to have a right person for the right job so that the question of inability of the Person will not arrive and worker will be able to get and do work according to his interest. (iii) Principle of High Morale. It is essential to have a high morale for the workers’ organization and work, with this purpose ideal wage policy should be offered in the organization, Their morale will become high’and they will work with intention, (i) Principle of Dignity of Labour. Personnel management should work especially so that the labourers feel proud of their work. Sentiments like ‘work is worship’ should be developed in them and for this, they should be appraised with their work. With this purpose, the principle of division of labour and specialisation will prove helpful. (©) Principle of team spirit. Team spirit must be developed in the workers. They should work collectively and they should feel collective responsibility for the execution of the objectives of the organization. With this intention, they must have the sense of cooperation, unity and mutual trust, (vi) Principle of Effective Communication. There must be effective medium of communication between the management and the workers, Communication means that orders of higher authoritiesshould reach the workers while workers’ requests and grievances ean reach the higher authorities in a proper way. If this arrangement is not effective, then there will arise complex problems like : rust, hatred and ill-will and this in (urn affects on the production of the organization. (vii) Principle of joint management. This principle stresses to make the labour partner to the business. In the age of industrial democracy, it is better to give share to the labour in management, This creates responsibility in labour with increasing mutual faith and friendship. This will help to foster labour relations. (viii) Principle of fair reward, Labour should be given proper compensation for the work. This develops industrial peace. History itself shows that all strikes, lockouts and breakages in the Indian factories are because of the dissatisfaction of the workers due to improper way of rewarding the workers for their work. (ix) Principle of effective utilisation of human resources. The development of personnel management is for the effective use of the human resources. It is useful that man should be thought as man. He should be asked to do the work that he can do and for his development proper training be awarded. There should be developed a sentiment of arbitrariness. (x) Principle of contribution of national prosperity. Personnel management should develop the sense in labour by which organisation will be successful in achieving its objectives and success of the organization is the success of economic development of the nation. 18.7. ORGANISATION OF A PERSONNEL DEPARTMENT There is no uniform pattern of organisation of personnel department. It varies from organisation to organisation. The pattern indicates the importance attached to personnel function in that organisation. Personnel management is a staff function and the personnel department offers service and advice to all line executives on personnel matters, The personnel manager has ultimate responsibility for all personnel and labour policies. ‘A typical organisation chart of a personnel department is as given below : MANAGING DIRECTOR PRODUCTION MARKETING PERSONNEL FINANCE MANAGER MANAGER MANAGER MANAGER Se cerns see MANAGER MANAGER MANAGER INDUSTRIAL RECRUITMENT TRAINING RELATIONS & & & TIME OFFICE DEVELOPMENT WELFARE Fig. 18.1. Typical organisation chart.