Personnel Management

Personnel management is concerned with all the

human relationship among worker

Recruitment
The process by which a job vacancy is identified and

potential employees are notified.

Main forms of recruitment through advertising in

newspapers, magazines, trade papers and internal vacancy lists.

Job description outline of the role of the job holder.

Job decription
a. Job title

b. Department
c. Work to be performed d. Job responsibilities

e. Mental concentration
f. Machine tools and processes to be handle g. Amount of supervision

h. Physical activity

 Person specification outline of the skills and

qualities required of the post holder

Applicants may demonstrate their suitability

through application form, letter or curriculum vitae (CV)

Selection
The process of assessing candidates and appointing a

post holder Most suitable candidates are selected Selection process varies according to organisation

Employment test
An employment test measures selected psychological

factors such as ability to reason, capacity for learning, temperament, specific aptitudes, physical abilities Employment test should be designed based on sound job analysis

 Performance test: it measures degree of profieiency

in doing that job

Aptitude test: it measures capacity or hidden ability

to learn a given job, if given training

Intelligent test: gives an idea of mental quickness or

GK of an applicant
Dexterity test: Checks the skill of applicants

Interview
An interview is a conversation between an applicant

and the interviewer. It measures all relevant attributes and helps exploring innate abilities.
Guided interview: a list of questions is prepared

based on analysis of job specification

Unguided interview:

 Physical examination: checking medical fitness Induction & orientation: introducing new employee

to organization

Education & Training

Necessary in order to: a. Increase productivity b. Improved production quality c. Cooperation and team work d. Reduce labor turnover e. Reduce accident f. Increased morale g. Increase efficiency

Methods of training
1.

2.
3. 4.

5.
6. 7.

Individual instruction Group instruction Lecture Demonstration Written instructional Conference Meeting

Housekeeping
Housekeeping is the maintenance of cleanliness and

order in all kinds of industries. It may results in a. Lesser accident b. Increased life of assets c. Increased production d. Little time for searching tools

Labor welfare
Can be of three types:

a. Economic
b. Recreational c.

Facilitative

Economic
Insurance

Retirement and pension plan

Health and accident services Paid holidays

Profit sharing

Recreational
Sports

Social get together

Various social group

Facilitative
Housing

Transport
Educational facility Medical checkup

Canteen cafeteria
Company stores Legal and financial counselling

Promotion

Wages & Incentives

Wages are defined as payment for use of labor. It can

be monetary or non monetary. a. Time wages: payment on the basis of week, month or year b. Real wages: represent amount of goods and services, the money wages can buy
Incentives is a reward given to a worker for his

efficiency and hard work

Wage incentive plans

A proper wage incentive plan should have: a. Profitable to both worker and management b. Help increase productivity c. Keep the morale of worker high d. Provide recognition to worker for his performance e. Improve relationship between worker and management

Straight Piece rate

A worker is paid straight for the number of pieces

produced. Earning = no. of pieces X rate per piece Very simple and easy to understand Boost production rate But quality may be poor Resource utilization may not be optimum

Straight piece rate with guaranteed base wage

A minimum amount is assured, irrespective of

production Workers efficiency has not been rewarded equally

Differential piece rate system

A worker who exceeds the output standard, is paid a

higher wage rate per piece an another who failed to do so, get lower wage per piece. (given by Taylor)
Fresh worker will get very lower wage

Halsey plan
Minimum wage is guaranteed. A worker who exceed

in performance, get a bonus for percentage of saved time (usually 50%). Rest enjoyed by management. Wage of a worker W = R.T + (P/100)(S-T).R
R= hourly wage rate, T= actual time S = standard time

 Management shares bonus,

simple to understand and operate

But worker may dislike management sharing Output standard may not be accurate

Rowan plan
Like Hasley plan, with only difference that bonus is

given as (S-T) /S
W = R.T + R. (S-T)/ S Wrong time standard has been taken care of But it is not easy to understand and operate

Gantt plan
Guaranteed minimum wage

Reaching output standard, get increased wage rate

Exceeding output standard, get higher wage rate