� Is that part of administration which is

concerned with people at work and with their

relationships within an organisation. relationships within an organisation.

� Personnel management is the responsibility of

all those who manage people.

� Defined as obtaining, using and maintaining a

satisfied workforce2

� Optimum use of

resources

Competitive strength

• Stability and prosperity

• Effective use of managers

� Competitive strength

� Cordial industrial

relations

� Motivates employees

� New techniques3

• Smooth functioning

• Reduces turnover and

absenteeism

• Sound organization

-Personnel management includes the function of employment,

development and compensation

- It is concerned with promoting and stimulating competent work

force to make their fullest contribution to the concern.

- It is based on human orientation. It tries to help the workers to

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- It is based on human orientation. It tries to help the workers to

develop their potential fully to the concern.

-It also motivates the employees through it’s effective incentive

plans so that the employees provide fullest co-operation.

- It also motivates the employees through it’s effective incentive

plans so that the employees provide fullest co-operation.

-Personnel management deals with human resources of a concern.

In context to human resources, it manages both individual as well

as blue- collar workers.

� Creating Congenial environment in organisation

� Bring Development through Training & Development

� Planning Manpower size & assigning responsibility� Planning Manpower size & assigning responsibility

� Develop a sense of responsibility

� Morale & initiative boosting

� Adopting techniques to bring development

� Build co-operation between labour & capital

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Human

Human Resource Management Human Resource Management Human Resource Management Human Resource Management Human Resource Management Human Resource Management Human Resource Management Human Resource Management FunctionsFunctionsFunctionsFunctionsFunctionsFunctionsFunctionsFunctions

1

Human

Resource

Manage

ment

Motivation

and

Incentives

Staffing and Employment

Training & Development

Compensation, and Salary Compensation, and Salary Compensation, and Salary Administration

Motivation and Incentives

Labour or Industrial Relations

Employee Services and Benefits

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Determination of the needs of an organization keeping in� Determination of the needs of an organization keeping in

mind the external environment and public policy.

� Fixing of responsibility and authority of the employees,

inorder to achieve the organisational goals.

� Developing inter-personal relationship; informal groups.

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� Manpower Planning

� Recruitment

� Selection Process

� Placement� Placement

� Induction and Orientation

� Transfer process

� Promotion

� Separation process

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� Identification of training needs of

personnel at all levelspersonnel at all levels

� Self-initiated developmental activities

� Effectiveness of training programs to be

evaluated by arranging follow-up studies

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Components:

• Job evaluation

• Wage and salary program

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• Wage and salary program

• Incentive compensation

plan

• Performance appraisal

• Motivation

Process of sustaining & maintaining the workforce

in an organisation.

� Safety provisions� Safety provisions

� Employee Counseling

� Medical services

� Recreational and other welfare facilities

� Fringe benefits and supplementary items

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� Old age survivor’s and disability benefits, unemployment and

workmen’s compensation.

� Pensions, gratuities and such other payments as are agreed

upon – death benefits, sickness, accidents and medical care,

insurance, expenses of hospitalization, voluntary retirement

benefits.

� Paid rest periods, lunch periods, wash-up time, travel time,

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� Paid rest periods, lunch periods, wash-up time, travel time,

get ready time.

� Payments for the time during which no work is done – paid

vacation or bonus in lieu of vacation, payment for holidays,

paid sick and maternity leave; and

� Profit-sharing benefits, contribution to employee’s provident

fund, employees educational expenses and special wage

payments ordered by courts.

Maintenance of healthy and peaceful labour-

management relations so that production/work may

go on undisturbed

� Grievance handling policy and procedures

� System of reward and punishment

� Compliance with labour laws of the country

� Disputes to be settled via Collective

bargaining16

� Economic and Technological Changes

� Occupational shifts from manufacturing and agriculture to

service industries and telecommunications.

� Pressures of global competition causing firms to adapt by � Pressures of global competition causing firms to adapt by

lowering costs and increasing productivity.

� Technological Shifts and the Internet

� Growth of information technology.

� Workforce Availability and Quality Concerns� Inadequate supply of workers with needed skills for “knowledge jobs”

� 80% of manufacturing jobs report shortage of qualified workers

� Education of workers in basic skills

� Not enough specific skills, not enough technology skills

Growth in Contingent Workforce� Growth in Contingent Workforce� Represents 20% of the workforce

� Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:

� Need for flexibility in staffing levels

� Increased difficulty in firing regular employees.

� Reduced legal liability from contract employees

� Boeing Strategy- manage employment cycles in suppliers and partners

� Workforce Demographics and

Diversity

� More Women in the

Workforce

� Single-parent households� Single-parent households

� Dual-career couples

� Domestic partners

� Working mothers and

family/childcare

� Significantly Aging Workforce

� Age discrimination

� Organizational Cost Pressures and Restructuring

◦ Mergers and Acquisitions

◦ “Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and closing facilities, merging with other organizations, and outplacing workers

� Intended results are flatter organizations, increases in productivity, quality, service and lower costs.

� Costs are “survivor mentality”, loss of employee loyalty, and turnover of valuable employees.

◦ HR managers must work toward ensuring cultural compatibility in mergers.

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Note: Example percentages are based on various surveys.

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Thank You

Questions?????

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