Module 1

Personnel Management
Personnel Management, also known as Human Resource Management, is the
effective process of managing the workforce of the organization, including
recruitment, training, employees’ performance, remuneration, labor relations,
and compliance with labor laws and regulations. Personnel management aims
to attract, develop, motivate, and retain competent and devoted workers to
meet the needs and goals of the organization and contribute to its success.
Nature of Personnel Management
 Personnel management includes the function of employment,
development and compensation- These functions are performed
primarily by the personnel management in consultation with other
departments.
 Personnel management exist to advice and assist the line managers in
personnel matters. Therefore, personnel department is a staff
department of an organization.
 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 deals with human resources of a concern, it manages both individual
as well as blue- collar workers.
Scope of personnel management
It encompasses a wide range of activities related to managing the workforce
in an organization. It aims to optimize the contribution of employees while
ensuring their satisfaction and development.
 Manpower Planning: Forecasting future workforce needs, Planning
recruitment, training, and placement.
 Recruitment and Selection: Developing job descriptions and
specifications, Attracting and selecting the right candidates for the job.
 Training and Development: Designing and conducting training
programs, Enhancing employees' skills and professional growth.
 Performance Appraisal: Evaluating employee performance and
providing feedback.
 Compensation and Benefits: Designing competitive pay structures,
Administering bonuses, incentives, and other benefits.
 Employee Relations: Maintaining a positive work environment,
Handling grievances and disciplinary actions.
 Compliance with Labor Laws: Managing contracts, workplace safety,
and employee rights.
 Workforce Motivation and Morale: Developing strategies for
employee motivation, Building team spirit and loyalty to the
organization.
 Health, Safety, and Welfare: Ensuring workplace safety and a
healthy environment, Providing welfare facilities like medical care,
recreation, etc.
Objectives of Personnel Management
1. Achievement of Organizational Goal: The main function of
personnel management is to get the employees in harmony with the
 organizational goals, aesthetically combine the staff and have skilled
individuals recruited and groomed to fulfill their personal roles. This can
be done through a carefully developed policy of recruitment, training,
and placement.
2. Enable employee development: Personnel management teams
monitor employee performance across departments and identify areas
of development. This can help improve employee productivity and
enhance the organization’s output.
3. Improve internal communication: Personnel management can help
improve internal communication within teams by facilitating workflows
and activities for team building. They can also improve transparency
between employees and managers by scheduling meetings and
feedback sessions. By encouraging employees to communicate freely
with their colleagues and managers, personnel managers can help
create a healthy work environment.
4. Increase employee job satisfaction: By facilitating open
communication with the senior management, organising team-building
activities and helping employees develop their skills, personnel
managers can create a work environment suitable for professional
growth. This can help build employee morale and develop a sense of
belonging in the organisation, resulting in higher satisfaction and
results.
5. Strengthen internal processes: By developing internal processes,
organisations can improve the efficiency of their employees. It can help
them manage the company's human resources effectively and ensure
consistency in productivity or output. It also helps create a standard
operating procedure and protocol for unforeseen challenges.
Functions of personnel department
It involve managing various aspects of the employee lifecycle to ensure an
effective and efficient workforce. These functions can be broadly classified
into managerial functions and operational functions.
1. Managerial Functions
These are strategic and involve planning, organizing, directing, and
controlling human resources.
a) Planning: Anticipating future HR needs based on organizational
goals, designing workforce strategies to meet those needs.
b) Organizing: Structuring HR processes and defining roles and
responsibilities, allocating resources to ensure smooth operations.
c) Directing: Guiding and motivating employees to achieve
organizational objectives, communicating policies, procedures, and
expectations effectively.
d) Controlling: Monitoring HR activities to ensure alignment with
organizational goals, evaluating the performance of HR policies and
making necessary adjustments.
2. Operational Functions
These are task-oriented and focus on day-to-day HR activities.
a) Recruitment and Selection b) Training and Development
c) Performance Management d) Compensation and Benefits
 e) Employee Relations f) Compliance with Labor Laws
g) Health, Safety, and Welfare
Role of Personnel Manager
Human resources are one of the most important and true assets of any
company. Retaining this asset should be of prime importance for the
company. Here, a personnel manager plays an important role as he or she is
the link between management and employees.

His role can be summarised as:

 He becomes a counsellor whenever required. He counsels the

employees with the issues and grievances that they are facing which is
affecting their productivity.
 He acts as a representative. Since he is in direct contact with the
workers, he becomes a spokesman in committees. He heads the
company during training programs as well.
 He is an advisor to the line managers and assists them in dealing with
and solving various personnel matters of the staff.
 The policies of the personnel are formulated effectively by the
personnel manager. Hence, he is assisting the top management.
 He acts like a mediator - A linking pin between employees and
management.
 He ensures consistent administration of the personnel policies of the
organisation.

Organization of personnel department

The organization of a personnel department depends on the size, structure,
and requirements of the organization. A well-organized personnel department
ensures the efficient management of human resources and seamless
execution of HR functions.
Levels of Organization
The personnel department is usually structured into three main levels:
a) Top-Level Management
 Personnel Director/HR Head: Responsible for strategic planning and
decision-making, aligns HR policies with organizational goals, acts as a
liaison between the HR department and senior management.
b) Middle-Level Management
 Personnel Managers/Specialists: Oversee specific HR functions such
as recruitment, training, and employee relations. Implement policies
and manage departmental activities. Supervise and guide lower-level
staff.
c) Lower-Level Management
 HR Officers/Assistants: Handle routine administrative tasks like
maintaining records, processing payroll, and scheduling interviews.
Serve as the first point of contact for employees regarding HR queries.
Sample Organizational Chart
Personnel Director/Head of HR
|
 -------------------------------------------------------------------
| | |
Recruitment Manager Training & Development Manager Compensation
Manager
| | |
HR Executives Training Coordinators Payroll Specialists
| | |
HR Assistants Workshop Facilitators Benefits Administrators

Personnel policies and procedures

It is the guidelines and rules that govern the management of human
resources in an organization. They ensure consistency, compliance with laws,
and effective handling of employee-related matters.
1. Personnel Policies
Personnel policies are broad guidelines that outline how an organization
manages its employees. They reflect the organization’s values, objectives,
and expectations regarding human resource practices. The characteristics
are; Consistency, Clarity, Flexibility, Legal Compliance
Types of Personnel Policies
 Recruitment and Selection Policy: Defines the process for attracting,
selecting, and onboarding new employees.
 Training and Development Policy: Outlines the organization’s
commitment to employee learning and growth.
 Compensation Policy: Specifies the structure for salaries, incentives,
and benefits.
 Performance Management Policy: Establishes criteria for evaluating
employee performance and handling appraisals.
 Leave and Attendance Policy: Details rules regarding paid leave, sick
leave, vacations, and work hours.
 Workplace Conduct Policy: Includes guidelines on employee behavior,
dress code, and workplace ethics.
 Diversity and Inclusion Policy: Promotes a culture of respect, equality,
and non-discrimination.
 Health, Safety, and Welfare Policy: Focuses on maintaining a safe and
healthy work environment.
2. Personnel Procedures
Personnel procedures are detailed steps or processes that implement the
policies. They provide practical guidance on handling various HR activities.

 Recruitment Procedure

 Posting job openings → Screening applications → Conducting interviews

→ Sending offer letters.

 Onboarding Procedure

 Document verification → Orientation program → Assigning mentors.

 Leave Application Procedure

 Submitting leave requests → Manager approval → Recording in HR

system.

 Grievance Handling Procedure

 Filing a complaint → Investigation → Resolution and feedback to the

employee.

 Disciplinary Action Procedure

 Identifying misconduct → Investigation → Issuing warnings or corrective

measures.

 Performance Appraisal Procedure

 Setting performance goals → Conducting reviews → Providing feedback

and rewards.

 Exit Procedure

 Notice period → Final settlement → Conducting exit interviews →

Revoking access to systems.