PERSONNEL MANAGEMENT

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It is that portion of management which is related to the management of workers , who are working and their personal relationships.
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Definiti on

Characteristi cs

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Objective s Establishment And Maintenance

Of Adequate Organisation Structure. Appointment Of Efficient And Skilled Personnel. Arrangement for Promotion. Labour Welfare. Labour Relations. 4/21/12

Importance

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Principles Of Personnel Management

Scientific Selection Dignity Of Labour Maximum Individual development High Morale Team Spirit Effective Communication

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Functions Of Personnel management

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Managerial Functions

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Operative Functions

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MAN POWER PLANNING

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Definiti on Planning maybe Man Power

defined as a strategy for the acquisition, utilisation, improvement and preservation of the human resources of an Enterprise.
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Characteristi cs Functions relating to Human

resources. Quantitative and Qualitative aspect. Inventory of Human resources. Different aspects Of labour Market. Programme for Human resource 4/21/12

Importance Of Man Power Planning

Rectification of organisational errors. Oppoturinity for preparation. Development of management. Increase in efficiency and Improvement in technology. Estimation of future cost.
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Basis for National planning.

Objective s estimate of man-power Accurate

requirements. Helpful in recruitment and selection. Achieving the target of production. Employment of personnel according to need.
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Performance of other activities.

Advantage s Useful both for organization and

nation. Generates facilities to educate people in the organization. Brings about fast economic developments. Provides smooth working even after expansion of the organization. Creates healthy atmosphere of encouragement and motivation in 4/21/12 theorganization.

Process Or Steps In Man Power Planning

Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes
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Design training programmes

Different Functions Of Staffing

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RECRUITME NT

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process of finding possible candidates for a job or a function. It has been defined as the process of searching for prospective employees and stimulating them to apply for jobs in an organisation
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Definiti on refers to the Recruitment

Source s

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Internal Sources Of Recruitment

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External Sources Of Recruitment

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SELECTI ON

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Definiti onis the process of Selection

choosing from among the candidates from within the organization or from the outside, the most suitable person for the current position or for the future position - Koontz

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Flow Diagram For selection Process

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PLACEMEN TS

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Definiti In the on of THE AMERICAN words

MANAGEMENT ASSOCIATION defines , placement is to give assignment of the responsibilities to an employee for those jobs for which he is considered to be fittest on the basis of selection and appointment.

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In Order To Perform The Functions Of Placement The Following Factors Are To BE Considered

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TRAINING AND DEVELOPMENT

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Definiti Training means equipping the on with the required skill to employees
perform a job. The candidates are sent for training so that they can perform the job in the expected manner. Development refers to overall growth of the employee. It focuses on personal growth and successful 4/21/12 employees development.

Training And Development Cycle

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BASIS

TRAINING
IT IS AN ACT OF IMPARTING KNOWLEDGE OF SKILL FOR PERFORMING A PARTICULAR JOB

DEVELOPMENT
IT IS THE PROCESS FOR THE OVERALL GROWTH OF EMPLOYEE FOR FUTURE MANAGEMENT TASKS OF INCREASING DIFFICULTY AND SCOPE

MEANING

SUITABILITY NATURE

MORE SUITABLE FOR TECHNICAL STAFF IT CONCENTRATES ON DEVELOPING THE SKILL ALREADY POSSESSED BY THE EMPLOYEES. ON THE JOB METHODS OF TRAINING ARE PREFFERED.

MORE SUITABLE FOR MANAGERIAL STAFF. IT FOCUSES ON DEVELOPMENT OF HIDDEN QUALITIES OF EMPLOYEES. OFF THE JOB METHODS OF TRAININGARE PREFERRED.

METHODS USED 4/21/12

Methods Of Training

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PROMOTIO N
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communicating with the public in an attempt to influence them toward buying your products and/or services. The word promotion is also used specifically to refer to a particular activity that is 4/21/12 intended to promote the

Definiti on Generally, promotion is

Advantages Of Promotion Promotion places the

employees in a position where an employee's skills and knowledge can be better utilized.

It creates and increases the interest of other employees in the company as they believe that they will also get their 4/21/12 turn.

Disadvantages Of Promotion It can be quite costly.

Promotion also tends to be competitive. It asks for more responsibility and more stress. 4/21/12 Industrial Unrest.

A business' total marketing communications program. is called the "promotional mix" and consists of a blend of advertising, personal selling, sales promotion and public relations tools.
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Promotional Mix

Elements Of Promotional Mix

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Element Mix Advertising

Advantages Good for building awareness Repetition of main brand and product positioning helps build customer trust

Disadvantages Impersonal - cannot answer all a customer's questions Not good at getting customers to make a final purchasing decision

Personal Selling

Highly interactive - lots Costly - employing a of communication sales force has many between the buyer and hidden costs in addition seller. to wages Excellent for Not suitable if there are communicating complex thousands of important / detailed product buyers information and features Can stimulate quick If used over the longincreases in sales. term, customers may Short term tactical tool. get used to the effect Too much promotion may damage the brand image

Sales Promotion

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PERFORMANCE APPRAISAL

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Definiti on Performance Appraisal is

the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purpose of placement, selection for promotion, providing financial rewards and 4/21/12 others.

Purpose Of Performance Appraisal

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. To judge the effectiveness of the other human resource functions of the organization. Helps 4/21/12 to strengthen the relationship and

Featur es

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Importanc e

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Procedure Or Steps

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M E T H O D S
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Limitatio Lacknsappreciation about of

the philosophy and benefits of performance feedback. Lack of willingness of superiors or top management in adopting the performance appraisal.
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JOB EVALUATION

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Definiti Job evaluation is a practical technique, onenable trained and designed to

experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs, balancing two goals:Internal Equity External Competitiveness

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Objective s

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Principl es

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Importanc e

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P R ER E Q U I S I T E S
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INDUSTRIAL RELATIONS AND TRADE UNION

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Definiti on Industrial Relation The term

explains the relationship between the management and employees which stem directly or indirectly from union employer relationship.
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Industrial Discipline To maintain harmonious relations

and promote industrial peace, a code of discipline has been laid down which applies to both Public and Private Enterprises. It specifies various obligations for the management and the workers with the objective of promoting co operations between their representatives.

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Objective s Maintain Peace And Order In

Industry. Avoid Work Stoppage In Industry. Avoiding Litigations. Eliminate all forms of coercion , intimidation and violation of rules and regulations governing industrial relations.
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A Trade Union is an organization of workers who have bonded together to achieve common goals like better working conditions. The trade union through its leadership , bargains with the employer on behalf of union members and negotiates with employer. The Trade Union may be composed of individuals , professional or past workers.
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Trade Union

Objective s

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Workers Participation In Management

As defined by the International Institute of Labour Studies : Workers Participation In Management is the participation resulting from the practices which increases the scope of employees share of influence in decision making at different tires of organizational hierarch with concomitant assumption 4/21/12

Importanc e Unique motivational power and a

great psychological value.

Peace and harmony between workers and management. Workers get to see how their contribution help in overall growth of the company. Participation makes them more responsible.

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Advantage s Encourages better

decision.

Helps in increasing the creativity of the employee. It encourages in accepting the responsibility. It helps in settling the disputes. It helps in giving justice to the workers.
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Disadvantag es

Conflicts of interest. Weakness of Trade Union. Limited aspirations of workers . Want of knowledge . Minority group, no active role .

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COLLECTIVE BARGAINING

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It is the procedure by which the employer or employers and a group of employees agree to the conditions of work.

Definiti on

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Importanc e
Decrease in industrial disputes

Means of settlement

Establishment of industrial peace

Maintenance of democratic atmosphere

Increase in labour welfare

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Advantage s

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Disadvant ages

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EMPLOYEE COMPENSATION

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It is meant to pay satisfactory wages to the workers in exchange of their work, so that they can perform their task with more inducement and inspiration. The different forms of employee compensation are:1)Wages 2)Incentives and Bonus 3)Moral and productivity
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Definiti on

Payment Of Wages employer to Whatever is paid by the

the workers engaged in production in return for their labour, is called wages. The worker is compensated by means of payment of wages. There are two principal methods of wages payment. They are :(a)

Time Rate Piece Rate

(a)

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*Incentive Wage We know that Planmaintains quality time rate but affect quantity, whereas piece rate
affects quality but increases production. Incentive plan attempts to compromise between them by combining good points of each. In this way, both the employers and workers are benefited and derive satisfaction. A few incentive plans are :Halsey Premium Plan (b) Rowan Premium Plan (c) 100 per cent plan (d) The Bedeaux or Point Plan 4/21/12 (e) Taylors Differential piece Rate
(a)

Profit-sharing is a method of industrial remuneration under which an employer agrees to play his employees a share in the annual net profits of the enterprise as fixed in advance. Thus profit is no longer looked upon as the exclusive right of the capitalist. The main features of this system are as follows :
1) 2) 3) 4) 5)

*ProfitSharing

Additional method Pre-determined share Form of distribution Basis of each workers share Basis of sharing
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*CoPartnership Under this scheme, workers are

represented on the board of management and they also share a profit of the concern. So it refers to sharing of control and of profit. In other words, co-partnership claims for all workers that they shall share to a certain extent in profits, capital and control of the business in which they are engaged.
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MORAL E

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Definiti on
It is a Psychological state of a person as expressed in self-confidence, enthusiasm, and/or loyalty to a cause or organisation. Morale flows from the people's conviction about the righteousness or worth of their actions and the hopes of high rewards (material or otherwise) in the future.
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Factors Influencing Morale

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Significance Of Morale

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CASE STUDY

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