CHAPTER 2

ORGANIZATION OF
PERSONNEL FUNCTIONS


Meaning and Definition of Personnel Management
Nature of Personnel Management
Role of Personnel Management
Organization of HR department
Composition of the Personnel department
Qualities of a Successful HR Manager
HRM Policies & Principles
HRM: Arguments & conclusion
Jobs & Careers in HRM
Prof. Heena Soni
MEANING OF PERSONNEL MANAGEMENT

Personnel management can be defined as
obtaining, using and maintaining a satisfied
workforce.
It is a significant part of management
concerned with employees at work and with
their relationship within the organization.

DEFINITION OF PERSONNEL MANAGEMENT
According to Flippo, Personnel management
is the planning, organizing, compensation,
integration and maintenance of people for
the purpose of contributing to organizational,
individual and societal goals.
Nature of Personnel Management:-

ROLE OF PERSONNEL MANAGER

1. Personnel manager provides assistance to
top management
2. He advices the line manager
3. As a counselor
4. Personnel manager acts as a mediator
5. He acts as a spokesman
ORGANIZATION OF HR DEPARTMENT
2 Issues become relevant in a discussion on
organization of an HR department.
Place of the HR dept. in the overall set-up
Composition of the HR department itself
Status of the HR dept. depends on whether
the unit is small or large.
In small organizations there is no separate
dept. to coordinate the HR activities
A large scale unit will have a
Manager/Director heading the HR dept.


Prof. Heena Soni

ORGANIZATION OF HR DEPARTMENT
HRM in a small scale unit:
Owner/Proprietor
Personnel
Assistant
Accountant
Office
Manager
Sales
Manager
Productio
n
Manager
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ORGANIZATION OF HR DEPARTMENT
HRM in a large scale unit:

Chairman / MD
Director
Productio
n
Director
Finance
Director
HRM
Director
Marketing
Director
R&D
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COMPOSITION OF HR DEPARTMENT
Activity
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QUALITIES OF A SUCCESSFUL HR MANAGER
Fairness & firmness
Tact & resourcefulness
Sympathy & consideration
Knowledge of labour laws & other terms
Broad social outlook
Academic qualifications
Others (positive attitude, competence to
perform activities for betterment of people)
Prof. Heena Soni

PERSONNEL POLICIES
MEANING OF PERSONNEL POLICY

A Policy is a Plan of Action.
It is a statement of intentions committing the
management to a general course of action.
A Policy may contain philosophy and
principles as well.
However a policy statement is more specific
and commits the management to a definite
course of action.

IMPORTANCE OF PERSONNEL POLICY

Basic Needs
Consistent Treatment
Minimize Favoritism
Continuous action
Standard of Performance
Motivation & Loyalty
Fair Play & Justice
Growth
HRD POLICIES & PROCEDURES
HRD policies can be formulated to cover the
following subjects:
1. Selection
2. Training
3. Compensation
4. Arrangement for work
5. Employee services
6. Industrial relations

Prof. Heena Soni

15
HRD POLICIES
Selection:
Reservation of seats
Employment of family relations/
people from competing firms
Preference for handicapped
people
Basis for discharging an
employee
The role of the union in
recruitment & selection
Closed Shop method where only
the members of the union are
hired others recruitment is ruled
out.
Training:
Training needs are to
be decided
Training curriculum
must be designed
Methods of follow-up
and evaluation needs
to be decided
Post- training support
to be given as and
when required

Prof. Heena Soni

16
HRD POLICIES
Compensation:
The relation of
wages to the market
and to the industry
rate
The relation of
wages paid to
different employees
within the company
Recognition to be
given to differences
in individual
performance
Arrangement for work:
Policies about the
hours of work
Number and
duration of rest
pauses
Vacations and
working conditions
Prof. Heena Soni

17
HRD POLICIES
Employee Service:
Policies about
organizing
cooperative
societies,
festival celebration,
recreation centres
and sports and
family budgeting
Industrial Relations:
Issues like Collective
Bargaining, right of
workers to decide the
union and the union
leader they want
Policy regarding third
party intervention in
industrial disputes
Prof. Heena Soni

HRD PRINCIPLES
Principle of individual development
Principle of scientific selection
Principle of free flow of communication
Principle of participation
Principle of fair remuneration
Principle of incentive
Principle of dignity of labour
Principle of labour management
Principle of team spirit
Principle of contribution to national prosperity


Prof. Heena Soni

HRM: ARGUMENTS & CONCLUSIONS
Critics argue that HRM is more rhetoric than
reality & the term HRM lacks precision. HR
functions cost money & no attempt has been
made to conduct cost-benefit analysis
Today, HR practices are becoming highly
visible in organizations
HRM now has gained a wider acceptance in
the industry over the last decade.



Prof. Heena Soni

JOBS & CAREERS IN HRM
HR Specialist

HR Manager

HR Executive

Prof. Heena Soni

THANK YOU
Prof. Heena Soni