Functions of personnel management are categorized under:- 1. The Managerial Functions 2.

The
Operative Functions

The Operative Functions:- 1. Procurement 2. Development 3. Compensating 4. Maintenance 5.

Integrating and 6. Separation.

Personnel management is the management of human resources in an organization and is concerned

with the creation of harmonious working relationship among its participants and bringing about their
utmost individual development. Such management is concerned with leadership in both groups and
‘individual relationship’ and ‘labor relations’ and ‘personnel management.’

It effectively describes the process of planning and directing, development and utilization of human
resources in employment. In fact, personnel management undertakes all those activities which are
concerned with human elements or relations as well as with material elements in an organization.

Whatever functions are listed therein, the main objective of these functions is to bring together
expertise in a scientific way and to create attitudes that motivate a group to achieve its goals
economically, effectively and speedily.

Every function in Organisation includes a flow of inputs (materials, energy or information), and
transforming these into outputs (the product or services and waste).
Functionally, “personnel management” is the planning, coordinating, and controlling of a network of
organisation and facilitating work pertaining to recruitment, selection, utilisation, development of
human resources.

The function include the most vital aspects of personnel management- leadership, justice
determination, task specialisation (job and organisation design), staffing, performance appraisal, training
and development, compensation and reward, collective bargaining, and organisation development.

Broadly speaking, experts have generally classified the functions into two major categories, viz.,
managerial functions and operative functions.

Function # 2. Operative:

The operative functions of personnel management are concerned with the activities specifically dealing
with procuring, developing, compensating, and maintaining an efficient workforce. These functions are
also known as service functions.

i. Procurement Function:

The procurement function is concerned with the obtaining of a proper kind and number of personnel
necessary to accomplish an organisation’s goals. It deals specifically with such subjects as the
determination of manpower requirements, their recruitment, selection and place (comprising activities
to screen and hire personnel, including application-forms, psychological tests, interviews, medical check-
up reference calling), induction, follow-up, transfers, lay-offs, discharge and separation, etc.

a. Job Analysis:

Organisations consist of jobs that have to be staffed. Job analysis is the procedure through which the
Personnel Manager determines the duties and responsibilities of these jobs and the characteristics of
the people to hire for them.

b. Manpower Planning:

It is the process of deciding what positions the firm will have to fill and how to fill them. It is a process of
analysing the present and future vacancies that may occur as a result of retirements, discharges,
transfers, promotions, sick leave, leave of absence, or other reasons, and an analysis of present and
future expansion or curtailment in the various departments.

Plans are then formulated for internal shifts or cut-backs in manpower, for the training and
development of present employees, for advertising openings, or for recruiting and hiring new personnel
with appropriate qualifications.

c. Recruitment:
It is concerned with the process of attracting qualified and competent personnel for different jobs. This
includes the identification of existing sources of the labour market, the development of new sources,
and the need for attracting large number of potential applicants so that a good selection may be
possible.

d. Selection:

Selection process is concerned with the development of selection policies and procedures and the
evaluation of potential employees in terms of job specifications. This process includes the development
of application blanks, valid and reliable tests, interview techniques, employee referral systems,
evaluation and selection of personnel in terms of job specifications, the making up of final
recommendations to the line management and the sending of offers and rejection letters.

e. Placement:

It is concerned with the task of placing an employee in a job for which he is best fitted, keeping in view
the job requirements, his qualifications and personality needs.

f. Induction and Orientation:

Induction and orientation are techniques by which a new employee is rehabilitated in his new
surroundings and is introduced to the practices, policies and people. The new recruit is introduced to
the principles which define and drive the organisation, the mission statement and values which form its
backbone.

g. Internal Mobility:

It is the movement of employees from one job to another through transfers and promotions. Transfer
process is concerned with the placement of an employee in a position in which his ability can be best
utilised. This is done by developing transfer policies and procedures, counseling employees and line
management on transfers and evaluating transfer policies and procedures.

Promotion is concerned with rewarding capable employees by putting them in higher positions with
more responsibility and higher pay. For this purpose, a fair, just and equitable promotion policy and
procedure have to be developed; line managers and employees have to be advised on these policies,
which have to be evaluated to find out whether they have been successful.

ii. Development Function:

The development function is concerned with the personnel development of employees by increasing
their skill through training so that job performance is properly achieved. Drafting and directing training
programmes for all levels of employees, arranging for their on-the-job, office and vestibule training,
holding seminars and conferences, providing for educational and vocational counselling and appraising
employee potential and performance are undertaken under this function.

The development function is mainly concerned with three specific areas:

a. Training:

It is complex process and is concerned with increasing the capabilities of individuals and groups so that
they may contribute effectively to the attainment of organisational goals.

This process includes:

1. The determination of training needs of personnel at all levels, skill training, employee counseling, and
programmes for managerial, professional and employee development; and

2. Self-initiated developmental activities (formal education), during off-hours (including attendance at

school/college/professional institutes); reading and participation in the activities of the community.

Under this area, the training needs of the company are identified, suitable training programmes are
developed, operatives and executives are identified for training, motivation is provided for joining
training programmes, the line management is advised in matters of conducting training programmes,
and the services of specialists are enlisted. The effectiveness of training programmes has to be
evaluated by arranging follow-up studies.

b. Executive Development:

It is a systematic process of developing managerial skills and capabilities through appropriate

programmes.

c. Career Planning and Development:

‘Career’ may be defined as the occupational positions a person has had over many years. Career
Planning is the planning of one’s career and implementation of career plans by means of education,
training, job search and acquisition of work experiences.

Career Management is a process of helping employees to better understand and develop their own skills
and interests and to use these skills and interests most effectively both within the company and after
they leave the firm. Career Development is concerned with a lifelong effort on the part of an individual
aimed at fulfilling a person’s career ambitions, expectations leading to career success and fulfillment

iii. Compensating Function:

The compensating function is concerned with securing adequate and equitable remuneration to
personnel for their contribution to the attainment of organisational objectives. Functions related to
wage surveys, establishment of job classifications, job descriptions and job analyses, merit ratings, the
establishment of wage rates and wage structure, wage plans and policies, wage systems, incentives and
profit-sharing plans, etc., fall under this category.

a. Job evaluation through which the relative worth of a job is determined. This is done by selecting
suitable job evaluation techniques, classifying jobs into various categories, and then determining their
relative value in various categories.

b. Wage and salary programme consists of developing and operating a suitable wage and salary
programme, taking into consideration certain facts such as the ability of the organisation to pay, the cost
of living, the supply and demand conditions in labour market, and the wage and salary levels in other
firms.

For developing a wage and salary programme, wage and salary surveys have to be conducted, wage and
salary rates have to be determined and implemented, and their effectiveness evaluated.

c. The incentive compensation plan includes non-monetary incentives which have to be developed,
administered and reviewed from time to time with a view to encouraging the efficiency of the
employee.

d. The performance appraisal is concerned with evaluating employee performance at work in terms of
predetermined norms/standards with a view to developing a sound system of rewards and punishment
and identifying employees eligible for promotions. For this purpose, performance appraisal plans,
techniques and programmes are chalked out, their implementation evaluated, and reports submitted to
the concerned authorities.

e. Motivation is concerned with motivating employees by creating conditions in which they may get
social and psychological satisfaction. For this purpose, a plan for non-financial incentives (such as
recognition, privileges, symbols of status) is formulated; a communication system is developed, morale
and attitude surveys are undertaken, the health of human organisation diagnosed and efforts are made
to improve human relations in the organisation.

The line management has to be advised on the implementation of the plan and on the need, areas and
ways and means of improving the morale of employees.

iv. Maintenance Function:

The maintenance function deals with sustaining and improving the conditions that have been
established. Specific problems of maintaining the physical conditions of employees (health and safety
measures) and employee service programmes are the responsibility of the personnel department.

Flippo rightly says, “The purpose of all of these activities is to assist in the accomplishment of the
organisation’s basic objectives. Consequently, the starting point of personnel management as of all
management must be a specification of those objectives and a determination of the sub-objectives of
the personnel function. The expenditure of all funds in the personnel department can be justified only
insofar as there is a net contribution toward company objectives.”

a. Health and Safety:

Personnel Managers must take care of all statutory provisions governing the health and safety of
employees. They must ensure a work environment that protects employees from physical hazards,
unhealthy working conditions and unsafe acts of other personnel. Through proper safety and health
programmes, the physical and psychological well-being of employees must be preserved and even
improved.

b. Employee Welfare and Social Security Measures:

Employee welfare includes the services, amenities and facilities offered to employees within or outside
the establishment for their physical, psychological and social well-being. Housing, transportation,
education and recreation facilities are all included in the employee welfare package. Managements
provide social security to their employees in addition to fringe benefits.

These measures include:

(1) Workmen’s compensation to those workers (or their dependents) who are involved in accidents;

(2) Maternity benefits to women employees;

(3) Sickness benefits and medical benefits;

(4) Disablement benefits/allowance;

(5) Dependent benefits;

(6) Retirement benefits like Provident Fund, Pension, Gratuity, etc.

v. Integrating Function:
The integration function, after the employee has been procured, his skill and ability developed and
monetary compensation determined, the most important, yet difficult of the personnel management is
to bring about an “integration” of human resources with organisation, and to cope with inevitable
conflicts that ensue.

“Integration” is concerned with the attempt to effect a reasonable reconciliation of individual, societal,
and organisational interests.

a. Grievance Handling:

A grievance is any factor involving wages, hours or conditions of employment that is used as a complaint
against the employer. Constructive grievance handling depends first on the manager’s ability to
recognise, diagnose and correct the causes of potential employee dissatisfaction before it converts into
a formal grievance.

b. Discipline:

It is the force that prompts an individual or a group to observe the rules, regulations and procedures,
which are deemed necessary for the attainment of an objective.

c. Trade Unions:

A Trade union is an association either of employees or employers or independent workers. It is a

relatively permanent body formed by workers, generally speaking, with the primary objective of
countering exploitation and harassment.

It strives towards providing economic and social benefits to the labour community. Trade unions have
always played a powerful role in improving the lot of workers in India, using aggressive bargaining
tactics.

After 1990s, of course, there is a dramatic change in the thinking of both workers and management —
as both parties seem to have realised the need to get along with each other — instead of trying to
confront each other on every issue which was the practice previously — in order to survive and flourish
in a tough, competitive environment.

d. Collective Bargaining:

It is the process of agreeing on a satisfactory labour contract between management and union. The
contract contains agreements about conditions of employment such as wages, hours, promotion, and
discipline; lay-offs, benefits, vacations, rest pauses and the grievance procedure.

The process of bargaining generally takes time, as both parties tend to make proposals and counter-
proposals. The resulting agreement must be ratified by unions, workers and management.

e. Industrial Relations:

Harmonious industrial relations between labour and management are essential to achieve industrial
growth and higher productivity. When the relationship between the parties is not cordial,
discontentment develops and conflicts erupt abruptly. It is not always easy to put out the fires with the
existing dispute-settlement machinery, created by the government. Hence, both labour and
management must appreciate the importance of openness, trust and collaboration in their day-to-day
dealings.