Functions of Personnel Management: Managerial, Operative and General Functions

INTRODUCTION

The effectiveness of any organization in general, is a direct function of the quality of the individuals who
make up that organization. The knowledge, skills, abilities, and commitment of the members of the
organization together constitute the most critical factor in the development and implementation of work
plans and the delivery of products and services. Without the full commitment of its employees, an
organization cannot accomplish its objectives. Consequently, the attraction, organization, development
and motivation of employees which is the personnel function of management, are a central responsibility
at all levels of management that is from the chief executive to the first line supervisor.

WHAT IS PERSONNEL MANAGEMENT?

There are many definitions of personnel management, but all basically say that it is: attracting and
developing competent employees and creating the organizational conditions which result in their full
utilization and encourages them to put forth their best efforts.1

In any organization, there has to be someone concerned with the welfare and performance of persons who
are a part of the operation. When an individual or a team of individuals takes on this task of seeing to
programs and setting policies that impact everyone associated with the company, they are engaged in the
process of personnel management, sometimes referred to as human resources management,

According to Franklin A., personnel management is based on careful handling of relationships among
individuals at work and is the art of forecasting, acquiring, developing and maintaining competent
workforce so that the organization derives maximum benefit in terms of performance and efficiency.2

Personnel Management is that part of management which is concerned with, people at work and their
relationship within the organization. It can also be defined as that aspect of an organization, which is
concerned with obtaining the best possible staff for the origination, looking after them so well that they
will like to remain in the organization and give off their best in their jobs. It has to do with how best to
use the skills and intelligence of people towards the achievement of organizational objectives.3

From the definitions quoted by various management experts in the past or present, the inference that we
derive is that personnel management aims at attaining maximum efficiency and to yield maximum
benefits to the organization.

Two major points about personnel management are implied in this definition. First, effective personnel
management must be future oriented. Support for organizational objectives now and for the foreseeable
future must be provided through a steady supply of competent and capable employees. Second, effective
personnel management is action oriented. The emphasis must be placed on solution of employment issues
and problems to support organizational objectives and facilitate employee development and satisfaction

To sum up, Personnel management aims at achieving these major steps:

 Analyzing the plan for future action and expansion.

 Estimating the quantitative and qualitative aspects of labour.

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  Assessing the requirement of existing manpower or human resource.

 Formulating the plan for effective utilization of manpower, reducing under utilization or mis-
utilization of manpower which is one of the most important resources.

 Finalizes the planning for recruitment, selection, promotion, transfer, training and development.

 Organizational effectivenes

Basically Personnel management has certain goals and objectives to fulfill which includes;

 Creating a congenial and healthy environment for employees or workers to function effectively.

 To bring about organizational and human resource development through training, development
programmes or even managerial succession planning.

 Selection and placement of right number of people and ensuring proper allocation of duties and
responsibilities upon them.

 Creating better inter-personal relations, developing a sense of responsibility and responsiveness

amongst workers and employees.

 Boosting the morale and sense of initiative amongst employees.

 Adopting best techniques or conceivable methods to bring best possible development of workers
on work.

The functions of Personnel Management / Personnel Manager / director are very comprehensive and
varied and they are determined by such factors as the size, nature and location of the organisation,
business or industry, its short and long – term objectives, the nature of industry and its product, market
conditions, extent of competition among rivals, its social, economic, cultural, political and legal
environments the structure of the executive and administrative officers, the mental make-up of personnel
officers and the overall organisational philosophy of business.

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

The Operative Functions and 3. General Functions.

A: The Managerial Functions: - 1. Planning 2. Organising 3. Directing 4. Co-Ordinating and

Controlling.

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

Integrating and 6. Separation.

C: General Functions: - 1. Employment 2. Promotion, Transfer and Termination 3. Training 4. Wages

and Other Incentives 5. Service Activities and Collective Bargaining Employees Representation.

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.

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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.

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 1. Managerial:
“Management is a multi-purpose organ which has three jobs, two of which are directly related to
personnel managing a business- ‘managing managers’ and ‘managing workers’ and the work.” Lawrence
Appley says that, “Management is the accomplishment of results through the efforts of other people.” In
the opinion of Harold Koontz, “It is the art of getting things done through people and with informally
organised groups.”

In our view, management may be thought of as the process of allocating an organisation’s inputs (human
and economic resources) by planning, organising, directing and controlling for the purpose of producing
outputs (goods and services) desired by its customers so that organisation objectives are accomplished. In
the process, work is performed with and through organisation personnel in an ever-changing business
environment.

Management is, thus, personnel administration. It is the development of the people and not the direction
of things. Managing people is the heart and essence of being a manager. Thus, a Personnel Manager is a
manager and as such he must perform the basic functions of management. He exercises authority and
leadership over other personnel.

His functions involve (what Luther Gullick calls) POSD CORB, i.e., planning, organising staffing,
directing, coordinating, reporting and budgeting the work of those who are entrusted with the
performance of operative functions. In other words, managers procure, process and peddle, find and
employ resources, develop services, and find markets for their output.

1. Planning:

Is a predetermined course of action. According to Allen, “it is a trap laid to capture the future.” Terry is of
the view that “planning is the foundation of most successful actions of any enterprise.” Planning is the
determination of the plans, strategies, programmes, policies, procedures, and standard needs to
accomplish the desired organisational objectives. In fact, “planning today avoids crisis tomorrow.”

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Planning is a hard job, for it involves the ability to think, to predict, to analyse, and to come to decisions,
to control the actions of its personnel and to cope with a complex, dynamic fluid environment. They
bridge the gap between where they are and where they want to go. For this purpose, they determine
personnel programmes well in advance.

The two most important features of planning are research and forecasting. These two are interrelated, for
forecast is possible only as a result of research. Personnel administration should be able to predict trends
in wages, in labour market, in union demands, in other benefits and in personnel policies and
programmes.

The task of forecasting personnel needs in relation to changes in production or seasonal variations and the
leveling out of differences in production is extremely important, both for employees and for management.

Therefore, planning or decision-making has to be undertaken much in advance of an action so that

unforeseen or anticipated problems and events may be properly handled. This is also stressed by the
saying- “Good managers make things happen.”

2. Organizing:

After a course of action has been determined, an organisation should be established to carry it out.
According to J.C. Massie, “An organisation is a structure, a framework and a process by which a
cooperative group of human beings allocates its tasks among its members, identifies relationships and
integrates its activities towards common objectives.”

This is done by designing the structure of relationships among jobs, personnel and physical factors. An
organisation is the wedding of authority and responsibility because, in its essentials, it consists of the
assignment of specific functions to designated person or departments with authority to have them carried
out, and their accountability to management for the results obtained.

It seeks to achieve the maximum return with minimum effort by decentralisation, whereby the power of
decisions is brought down as near as possible to the individual concerned. How far this can be done will
depend upon the top management’s philosophy and appreciation of the benefits of delegation and
decentralisation.

In the words of Drucker, “The right organisational structure is the necessary foundation; without it, the
best performance in all other areas of management will be ineffectual and frustrated.”

3. Directing:

Directing the subordinates at any level is a basic function of the managerial personnel. According to
McGregor, “many managers would agree that the effectiveness of their organisation would be at least
doubled if they could discover how to tap the unrealised potential present in their human resources.”

Directing is involved with getting persons together and asking them (either through command or
motivation) to work willingly and effectively for the achievement of designated goals. Directing deals not
only with the dissemination of orders within an organisation units and departments, but also with the
acceptance and execution of these orders by the employees.

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The decisions are taken by the top management, but only after consultation with the personnel
department. A review or checking of the safety installments, wage-rate ranges, disciplinary action and
general wage changes are all the responsibility of the personnel department.

Final action is taken only when the green signal has been obtained from it. However, securing acceptance
and execution generally requires a certain amount of motivation of individuals and groups. Otherwise, the
actual performance level may be well below that which is desired.

4. Co-Ordinating and Controlling:

Co-ordinating refers to balancing timing and integrating activities in an organisation, so that a unity of
action in pursuit of a common purpose is achieved. In the words of Terry, “Co-ordination deals with the
task of blending efforts in order to ensure a successful attainment of an objective.” Co-ordination in the
management of personnel takes place at all levels, from the top management through to the supervisor
and those for whom he is responsible.

The personnel department has to co-ordinate the tasks of developing, interpreting and reviewing
personnel policies, practices and programmes, such as safety programmes, employee benefits, job
evaluation, training or development, and communication. These activities are generally put into operation
by and through the line people; but it is the personnel department which follows them through, unifies
them, and checks to see how they work.

Controlling is the act of checking, regulating and verifying whether everything occurs in conformity with
the plan that has been adopted, the instructions issued and the principles established. It is greatly
concerned with actions and remedial actions.

“It is not just score- keeping. It is not just plotting the course and getting location reports; but rather it is
steering the ship.” It is through control that actions and operations are adjusted to predetermined
standards; and its basis is information in the hands of the managers.

“By check, analysis, and review, the personnel department assists in realising the personnel objectives.
Auditing training programmes, analysing labour turnover records, directing morale surveys, conducting
separation interviews, interviewing new employees at stipulated intervals, comparing various features of
the programme with other organisation programmes in the area, industry and nation — these are some of
the means for controlling the management of personnel.”

This monitoring process provides management with actual performance information for comparison with
predetermined performance standards. If there are unavoidable deviations from the planned performance,
corrective action can be taken immediately.

This last function of control closes the system loop by providing feedback of significant deviations from
the planned performance. The feedback of pertinent information can affect the inputs or any of the
management functions.

Though all the above functions are performed at all levels of management, the amount of time devoted to
each function varies for each management level. The top management performs planning functions more
than does the supervisory management. On the other hand, supervisors at the third rung of the
management pyramid devote more of their time to directing and controlling production.

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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.

1. 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

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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:

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‘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:

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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:

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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.

Functions of Personnel Management – Scope and Functions of Personnel Department of a Business

Organisation

The personnel department of a business organisation has to perform various functions, some of which are
vital and basic for the organisation. The manning of the organisation in the most prudent way for the
realisation of its goals is the essence of all the functions of personnel management.

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Right from man-power planning, recruitment and selection, personnel management moves on with the
organisation with its functions and pursues an employee till his retirement and even still further to the
point where he settles his retirement benefits or starts getting the retirement benefits.

So, truly speaking, the personnel management is with an employee from his birth in the organisation till
his death outside the organisation. We can quote here Edwin B. Flipps – “The personnel function is
concerned with the procurement, development, compensation, integration and maintenance of the
personnel of an organisation toward the accomplishment of that organisation’s major goals or policies.”

Our National Institute of Personnel Management also indicated the personnel functions more or less on
this line. Employment, Education & Training, Wages, Joint consultation, Health and safety and Employee
services and Welfare – all have been considered as functions of personnel management by the National
Institute of Personnel Management.

The activities of the personnel department, so to say, are spread over three areas – Recruitment,
Retainment and Retirement. To these 3R’s of activities, various subsidiary functions crop up and upon the
successful management of all these functions depends the attainment of the goals of an organisation.

The functions of the personnel department may be classified as – (a) Staff functions (b) Service functions
(c) Functional activities and (d) Welfare activities.

To highlight the problems of the human resource by disseminating information to the line authorities
constitutes the basic function of the personnel department. This department, as a matter of fact, acts as
liaison between the workers and management. The personnel manager has to endeavour to create an
atmosphere where free exchange of ideas and information between the workers and the management is
possible.

Through the personnel department, the top management of the organisation will keep contact even with
the common workers. This department will carry on its activities to facilitate easy communication from
the top to the bottom; there will not be any difficulty, because of this department, in the matter of express-
ing the views and feelings of the workers to the top management personnel – the line staff. Thus, the
personnel department of the personnel management will discharge its staff functions.

As to its service functions, the personnel department explores the sources of recruitment, selects the best
candidates and makes arrangements for their training. Merit rating, devising, suitable and satisfactory
method of promotion, and maintaining of workers’ discipline come within the purview of the personnel
department of an organisation.

It is also not a mean function of the personnel department to find out mutually satisfactory methods of
wage payments with incentive elements to ensure better labour-capital relation and higher productivity.
To provide for various retirement benefits and recreational facilities for the employees, at present have
become very important function of the department.

To ensure better service of the organisation, the personnel department is to maintain proper records
relating to employees and these activities can better be termed functional activities of the per sonnel
department.

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The welfare activities meant for the benefit of the employees such as provision for first aid, gen eral
medical services, and devices for minimisation of the risks of accidents are becoming more and more
important in the Welfare State.

Scope of Personnel Management:

Human resource management (HRM) traditionally referred to the organizational policies, practices,
norms, and systems that influence employee behaviour, attitudes, and performance. Today, HRM
practices are considered essential for achieving business objectives and goals.

With liberalization, privatization, globalization, and increased career opportunities, there are a number of
factors that have made the traditional approach to personnel management obsolete. The present situation
demands a complete, holistic, and strategic approach to HRM. An organization’s HRM strategy must fit
in the overall organizational strategy because it involves long-term implications.

The modern approach to management acknowledges the interest of the employees who are the major
stakeholders in an organization. Thus, a knowledge of the group dynamics is crucial for success. In
addition to the interest of the employees, process and performance are the other requirements.

An organization cannot function without the application of information technology, strategic manage-
ment, competency development, total quality management, leadership and team building, managing
change for success, etc. For all these processes to run smoothly, HRM has to manifest its importance.

However, with the introduction of HRM, the usual practice of personnel management (PM) cannot be
ignored. It is important to consider the various aspects of PM along with the new practices of HRM for
the organization to run smoothly.

Function of Personnel Management – Various Functions of Personnel Management

An organization can be a manufacturing firm, an insurance company, a government agency, a social

organization, a hospital, a university, a public school system, or even a religious trust. Whatever be the
organization, it needs people to perform tasks.

The duties and responsibilities of each person differ significantly in an organization. Organizational
objectives are multiple, and each department strives to accomplish the departmental objectives to achieve
the business goals of the organization.

In order to achieve these goals, a well-run establishment needs to work out a set of rules and regulations,
policies, programmes, procedures, instructions, etc., common to all the departments. These are developed
to assist the members of the organization in accomplishing the organizational goals effectively in a
systematic manner.

It has already been said that people are the principal component of an organization, and one needs to
invest considerable effort in them. This is important for using the manpower effectively and efficiently.
Thus, managers need to plan, organize, lead, and control various activities. Personnel management is
concerned with the effective use of the skills of people.

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They may be salespeople in a store, clerks in an office, operators in a factory, technicians in a research
laboratory, or a software developer in an information company. In a business, PM starts with the
recruiting, hiring, and engaging of qualified people, and directing and taking control of the problems and
tensions that arise in working towards established goals.

To summarize, the various personnel management functions are as follows:

1. Preparing the job description

2. Recruiting and selecting personnel

3. Induction and placement

4. Classifying jobs and preparing wage and salary scales

5. Counselling employees

6. Dealing with disciplinary problems

7. Negotiating with labour unions and service union contracts

8. Developing safety standards and practices

9. Managing benefit programmes, such as group insurance, health, and retirement plans

10. Providing for periodic reviews of the performance of each individual employee, recognition of his/her
strengths and need for further development

11. Assisting individuals in their efforts to develop and qualify for more advanced jobs

12. Planning and supervising training programs

13. Keeping abreast of developments in the area of personnel management.

Functions of Personnel Management –

Two Broad Categories of Personnel Management Functions

1. Management Function
2. Operative Function
These are explained as follows:

Function 1. Management Function:

They are as follows:

a. Planning:

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Planning is the basic function of personnel management. It can be described as the beginning of other
functions. Planning can be described as a well-defined course of future action. Personnel department is
required to determine the personnel requirements, personnel programmes, policies, procedures and
methods, etc. Business operations are to be planned with reference to the overall objectives of the
enterprise.

b. Organisation:

The function of organising refers to the creation of a structure of duties and function to achieve the
objectives of the enterprise. According to Urwick “Organisation is determining what activities are
necessary for any purpose (or plan) and arranging them in groups which may be assigned to individuals.”
Organisation thus is concerned with activity-authority relationship. Under organisation, the personnel
manager creates a structure of duties and functions to achieve the objectives of the enterprise.

c. Directing:

Direction can be described as the process of guiding and supervising the subordinates. In the enterprise,
the work of different subordinates is to be guided and supervised. Personnel manager is required to give a
specific direction to various activities in the office with a view to its proper functioning. He is required to
guide and to supervise the work of different departments.

d. Controlling:

It is the last stage in management. Here, actual performance is compared with plans and taking corrective
action when results deviate from plans. Under controlling, personnel manager evaluates and controls the
performance of various employees working under him.

Function 2. Operative Function:

Operative functions are discussed in the following manner:
a. Procurement:
This first operative function is concerned with the obtaining of the proper kind and number of personnel
necessary to achieve the objectives of the organisation. This function is related to subjects like the
determination of manpower requirements and their recruitment, selection and placement cover various
activities designed to screen and hire personnel, such as application forms, psychological tests and
interviews.

b. Development:
After the personnel have been taken, it becomes necessary to develop them. Development implies the
enhancement of skill—through training, that is necessary for proper job performance. Development
function will be influenced by various factors, like induction of new machines, promotions and transfers.

c. Compensation:
This function can be defined as the adequate and equitable remuneration of personnel for their
contribution in achieving the objectives of organisation. Compensating remains one of the basic functions

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of personnel management. A proper subject like job evaluation, wage policies, wage systems and wage-
incentive schemes.

d. Integration:
The function of integration relates to problems of communication, informal organisation and trade unions.
Integration can be defined as an attempt to effect a reasonable reconciliation of individual and
organisational interests. Integration must follow the above three functions of procurement, development
and compensation.

e. Maintenance:
It refers to sustaining and improving the working conditions that have been established. However, it must
be pointed out that it would be necessary to take care of physical well-being and mental well-being of the
employees. In other words, it includes establishment of health, sanitation, safety standards and welfare
facilities such as canteen, recreation rooms, group insurance, and education of the employees’ children
etc.

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