CONTROL OF

PERSONNEL
MANAGEMENT
What is Personnel Management

• Personnel management may be defined as a

set of programmes, functions and activities
designed to maximize both personal and
organizational goals. Basically, it covers three
broad areas:
THREE DIMENSIONS OF
PERSONNAL MANAGEMENT
FEATURES OF PERSONNAL
MANAGEMENT
• deals with employees both as individuals and as
a group
• concerned with the development of human
resources
• covers all levels (lower, middle and top)
• applies to all types of organisations
• aims at attaining the goals of an organisation
• aims at securing unreserved cooperation from all
employees.
MANAGERIAL FUNCTIONS
• Planning
• Organizing
• Directing
• Controlling
MANAGEMENT CONTROL
• The process by which management ensure
that people in the organization carry out
organizational objectives and strategies, and
encourage, enables, or sometimes “forces”
employees to act in the organization’s best
interest.
Personnel Control

• Personnel control is the process, effected by a

company's Board of Directors, management
and other personnel, designed to provide
reasonable assurance regarding the
achievement of objectives preferably in the
following categories:
• Effectiveness and efficiency.
• Reliability of financial reporting.
• Compliance with applicable laws, regulations,
and policies.
Contd..
• controls are tools that help management be
effective and efficient while avoiding serious
problems such as overspending, operational
failure, and violation of laws.
• In other words Personnel Controls are the
structure, policies and procedures put in
place to provide reasonable assurance that
management meets its objectives and fulfils
its responsibilities.
Concept of Control
These definitions reflects certain fundamental
concepts:
1. Personnel control is a process which is
effected by people.
3. Personnel control can be expected to provide
reasonable assurance, not absolute assurance,
to an entity’s management and Board
4. Personnel control is geared to the
achievement of objectives.
Objective of Personnel Control

The primary objective of Personnel control system is to help the

organization perform better through the use of its human
resources. Through this control system organizations identifies its
weaknesses and takes appropriate measures to overcome the
same.
The main objectives of Personnel control are as follows:
• Efficiency and effectiveness of activities (Performance objectives).
• Reliability, completeness and timelines of financial and
management information (Information objectives)
• Compliance with applicable laws and regulations (Compliance
objectives)
• Accountability to the Board
Contd..
• Objectives are a necessary requirement for
any purposeful activities. Without objectives,
it is impossible to assess whether the
employee’s action are purposive and to make
claims about an organization’s success.
• Objectives can be financial versus non-
financial; quantified, explicit versus implicit;
economic, social, environmental, societal.
 COMPONENT
• Objective setting; what goals do we want to
achieve?
• Strategy formulation; how are we going to
realize these goals?
• Control; are we on track in realizing these
goals?
STRATEGY FORMULATION
• An organization must select any of countless
ways of seeking to attain its objectives.
• Strategies define how organizations should
use resources to meet their objectives.
• Strategies puts constraints on employees to
focus activities on what the organization
does best or areas where it has an advantage
over competitors.
TECHNIQUE
Chain of Command
Supervision of Personnel
Monitoring of activities
Evaluation of objectives
Personnel Evaluation
SOPs
Manuals, Instructions
Quality Assurance
Audit Reports
THE BASIC CONTROL
PROBLEMS
• Management control is about encouraging
people to take desirable actions.
• If all personnel could always be relied on to
do what is best for the organization, there
would be no need for a management control
system.
BASIC CONTROL ISSUES
• Lack of direction; do they understand what we
expect of them. employees do not know what
the organization wants from them
• Lack of motivation; will they work consistently
hard and try to do what is expected of them.
• Personal limitations; are they capable of doing
what is expected of them.
When this lack of directions occurs, the
likelihood of the desired behaviors occurring is
obviously small.
MOTIVATIONAL PROBLEMS
• When employees choose not to perform as
their organization would have them
perform.
Because of;
1. Lack of goal congruence. Individual goals do
not coincide with organizational goals.
2. Self interested behavior. Generally people
are disposed to being lazy. Example;
employee crime (fraud and theft)
PERSONAL LIMITATIONS
• Sometimes, people are unable to do a good
job because of certain personal limitations
they have.
for example;
-lack of requisite knowledge, training,
experience.
-employees are promoted above their level of
competence.
-some jobs are not designed properly.
CONTROL FUNCTION

All of the control activities which are performed under

the governance and organizational structure
established by the Organization board of directors and
senior management and in which each individual
within the organization must participate in order to
ensure proper, efficient and effective performing of the
Organization activities in accordance with the
management strategy and policies, and applicable laws
and regulations and to ensure the integrity and
reliability of accounting system and timeliness and
accessibility of information.
Get done what management wants to be done.
Influence behavior in desirable ways
Operative Functions
• Procurement Function
• Job analysis
• Human resource planning
• Recruitment
• Selection
• Placement
• Induction and orientation
• Internal mobility
• Development Function
• Training
• Executive development
• Career planning and development
• Human resource development
Contd--
• Motivation and Compensation
• Job design
• Work scheduling
• Motivation
• Job evaluation
• Performance appraisal
• Compensation administration
• Incentives and benefits
• Maintenance Function
• Health and safety
• Employee welfare
• Social security
• Integration Function
• Grievance redressal
• Discipline
• Teams and team work
• Collective bargaining
• Employee participation and empowerment
• Trade unions and employers associations
• Industrial relations
• Emerging Issues
• Personnel records
• Human resource audit
• Human resources research
• Human resource accounting
• Human resource information system
• Stress and counselling
• International human resource management
Personnel Policies, Procedures And
Programmes
• Personnel policies are guides to action. They
serve as roadmaps for managers on a
number of issues such as recruitment,
selection and promotion. They cover almost
all functions of personnel management. A
good personnel policy should be easy to
understand, based on facts, equitable,
reasonably flexible, precise and related to
objectives
Types of personnel policies
• Originated policies
• Appealed policies
• Imposed policies
• General policies
• Specific policies
• Written or implied policies
Advantages of personnel
policies
• Delegation
• Uniformity
• Better control
• Standards of efficiency
• Confidence
• Speedy decisions
• Coordinating devices
Features of a sound personnel
policy
• Related to objectives
• Easy to understand
• Precise
• Stable as well as flexible
• Based on facts
• Appropriate number
• Just, fair and equitable
• Reasonable
• Review
Coverage of Personnel policies
• social responsibility policies
• employment policies
• promotion policies
• development policies
• relations policies
Formulation of Personnel
policies
• identifying the need
• collecting data
• specifying alternatives
• communicating the policy
• evaluating the policy
Evaluating the impact of personnel
policies
• The impact of human resource policies can be
measured through their outcomes:
• Commitment: how long an employee stays with a
firm
• Competence: appraised through performance
appraisal techniques
• Congruence: nature and frequency of grievances,
disagreement, discord and conflict
• Cost effectiveness: measured through human
resource accounting techniques
Staff role of the personnel
department
• Policy initiation and formulation
• Advice
• Service
• Monitor and control
Personnel department in a line
organisation
ATTRITION MANAGEMENT
• Attrition or turnover refers to the phenomenon of
employees leaving the organization for various
reasons like job satisfaction, low pay, non-conducive
environment, or for better prospects. Keeping
attrition levels to the minimum is one of the key
responsibilities of the HR department. There are two
metrics for assessing attrition level in an
organization-employee turnover rate and employee
retention rate. These metrics are periodically
computed and values, compared with the industry
average and with the past records of the
organization. let us look at both these metrics in
detail.
Welfare management

• Welfare measures are undertaken by organization to keep

employee happy with the expectations that there will be a
consequent increase in employee productivity. These measures
include both individual measures like providing insurance benefits
to the employees as well as groups measures like providing
reading rooms, golf clubs, and swimming pools to the employees.
• To begin with, the priority areas are identified and the funds
meant for welfare schemes are allocate to each priority area.
Later, the utilization of funds is compared with the allocations to
various areas.
• It is important to gauge to employees’ level of satisfaction with
the welfare measures. Moreover, it is important to re-examine
whether the allocation of funds across the various welfare
schemes was appropriate.
Internal and external equity
• Internal equity refers to the perception of employees on
whether their compensation is equitable in comparison
with those of their peers in the organization.
• External equity, on the other hand, refers to the
perception of employees on whether their compensation is
equitable in comparison with those of their counterparts in
other organizations. A negative perception of external
equity may lead to high attrition rates in the organization.
• Internal equity is more important than external equity in
influencing the perception of employees regarding equity,
as employees are usually less aware of the compensation
paid in other organizations and corresponding of
employment.