IM 326

(Personnel Administration)
TTh: 5:10-6:40pm
(BIT: Drafting)
Prof. Dr. Gilda G. Membrillos
Chapter 2: PERSONNEL
MANAGEMENT: ITS
FUNCTIONS AND ROLES IN
THE ORGANIZATION.
 ITS FUNCTIONS AND ROLES IN THE
ORGANIZATION

Personnel management is concerned with enhancing work

effectiveness and the advancement of human resources in an
organization. To pursue these objectives, the personnel manager is
expected to play varied roles, such as that of supervisor,
administrative official, coordinator, adviser, negotiator, educator,
counselor, promoter of community relations, and public relations
man.

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DEFINITION OF PERSONNEL FUNCTION

Personnel Management may be defined as the function of

management concerned with promoting and enhancing the development
of work effectiveness and advancement of the human resources in the
organization. These are accomplished through proper planning,
organizing, directing, coordination, and controlling of activities related to
procurement, development, motivation, and compensation of employees
to achieve the goals of the enterprise. These functions have several
components, which correlate with and supplement one another in the
operations of the business.

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 Management Functions
This definition shows that human resources management embraces two
functions:
* The basic functions in general management of the enterprise which are
planning, organizing, directing, coordinating, and controlling; and
* The operative functions which cover the daily activities of the business such
as procurement, placement and utilization of employees, motivating, and
compensating employees.

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These are briefly explained as follows:

Planning- Planning refers to the job of determining a proposed mode of

action based on a full understanding of the factors involved, and directed at
specific objectives. This job takes into consideration the priorities desired by
management. It involves looking ahead to anticipate possible stumbling blocks,
and eliminating them before they occur.

The objective is to create a favorable climate for human resources in the

organization. Planning enters in the formulation of personnel policies,
programs, and activities directed to achieve the goals of the enterprise. The
human resources manager is appointed by top management in the
implementation and coordination of their policies and programs.

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Planning involves the ability to analyze projected programs and policies
in the light of conditions related to objectives.

Organizing- Organizing refers to the arrangement and relationships of

jobs and positions, which are necessary to carry out the personnel
program as determined by top management. It establishes lines of
responsibility, authority, and communication. The division of work is
allocated to proper working groups, each of which knows its assignments
and its relationship with other groups, whether above, equal to, or
subordinate to other groups. The purpose of organizing is to ensure the
smooth operation of the various activities required to achieve the
objectives, I.e., to get work done at specified time, to utilize the best
means to conserve effort, to create understanding and motivate
employees in the tasks at hand.
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Directing- Directing is concerned with the guidance of all efforts toward a
stated objective. It provides a means of putting plans into action through
effective supervision, work rules, and procedures. The technique of good
communication is utilized in carrying out the tasks of directing.
If workers know their duties and responsibilities, they can work with greater
efficiency and accomplish more. In getting things done, the effective
manager uses the principles of leadership, motivation, and human relations
that make the worker perform his work with enthusiasm.

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Coordinating- Coordinating is a method of getting people in an organization to
work together harmoniously to achieve a common goal with minimum
expenditure of effort and materials. This provides the orderly synchronization of
efforts through correct timing and sequence of execution, resulting in
harmonious and unified action in pursuit of common objectives. Coordination is
a fundamental function of management, providing an orderly arrangement and
execution activities, involving personnel policies and programs in the various
departments and levels of the organization to achieve their objectives.
Since these activities involve people, the proper implementation of personnel
policies and programs must be well-coordinated. By means of coordination,
managers strive for the smooth working together of all necessary actions, each
in the proper amount, and executed in the proper time and place.

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Controlling- Controlling is concerned with keeping all efforts within the
channels prescribed by management as shown in the personnel plan for
the entire organization. The purpose is to ensure that the organization is
accomplishing its objectives. When the program is being implemented,
changes and deviations may have to be made. The control system will
show whether or not the personnel program is being carried out
satisfactorily and as planned.

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 Operative Functions- The operative functions of personnel management
cover the details of the responsibilities and task necessary to carry out
policies and programs related to personnel. While operative functions may
vary depending upon the size or culture and degree of sophistication of a
company, they usually cover the following areas:

* Manpower planning
* Recruitment, induction, and personnel movements, i.e., promotions, transfer,
demotion,
separation
* Appraisal
* Training and development
* Rewards and recognition
* Employee relations
* Personnel information statistics

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 ORGANIZATIONAL STRUCTURE OF A PERSONNEL DEPARTMENT
The organizational structure of a personnel department varies from one company
to an other, primarily because every company has unique requirements in terms of
human resources. Some of the factors to be considered are the nature of enterprise,
the scope of services, and the size of the organization.

Large Organizations
(See Exhibit 2.1.)
In large organizations, the Vice President for HR or Personnel usually heads the
department. Under him are several managers with their corresponding staff.

Recruitment Manager- Responsible for employee recruitment; from handling all

application papers, conducting examinations and interviews, to placement of newly
hired employees.

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Manpower Planning Manager- Focuses on career planning and forecasting.

Compensation/ Benefits Manager- Responsible for wages, incentives, job

evaluation, and benefits such as medical insurance and retirement plans.

Labor Relations Manager- Handles labor-management disputes, collective

bargaining agreements, complaints and grievances, and other disciplinary
problems.

Training and Development (TD) Manager- Takes care of employee,

management, and organizational development through varied training programs.
The TD Manager works closely with the Manpower Planning Manager.
Safety and Health Manager- Initiates safety and health programs for the benefit
of the employees. He is also responsible for the recording of cases involving this
areas.

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Small Organization
(See Exhibit 2.2.)
In small organizations, the top position in the Personnel Department is usually the
Personnel or HR Director. Three managers report directly to him. They are as follows:

Labor Relations Manager- Aside from the functions previously mentioned, the Labor
Relations Manager in a small firm also handles compensation and benefits.

Training and Development Manager- The responsibilities of both the TD Manager and
the Manpower Planning Manager fall under this position.

Administrative Manager- Handles the administrative functions of the personnel

department such as payroll, safety compliance, messenger and janitorial services,
among others.

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VARIED ROLES OF A PERSONNEL MANAGER
Considering his position in the company and the scope of his functions,
the personnel manager is expected to play varied roles, such as the
following:

Supervisor- The personnel manager oversees the employees in his own

department over whom he exercises a direct line of authority. As supervisor
of his department, he plans, organizes, directs, controls, and coordinates
the activities of his department. He or she delegates some of his functions
to his subordinates but checks on them through follow-ups. Since he
manages the work of the employees in his department, he is their leader. He
trains them and develops their skills for efficiency.

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Administrative Official- He manages the personnel department. He
translates into action those parts of the personnel policies and programs
assigned to him. In other words, he or his staff conducts or directs certain
personnel activities as provided for in the policies and programs entrusted
to the department. He sees to it that labor laws and government
implementing regulations are properly complied with.
Since the personnel manager is frequently confronted by new and complex
responsibilities, challenges, and demands concerning the proper
implementation of personnel policy, he must know how a policy is made and
administered. He and his staff represent management in administering,
implementing, and interpreting personnel policies. The cooperation of the
personnel staff in helping line supervisors is most needed in making its
administration successful.

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Adviser- He serves as counselor, guide, and confidant to management, supervisors,
and employees. To be a competent adviser, he must keep himself informed about
employee attitudes and behavior and be abreast with trends in the industrial relations
fields which may affect his company. He also recommends to top management
changes or improvements in personnel policies. He should understand the human
factors involved in management relationships to ensure the success of personnel
programs.

Coordinator- He brings into action all activities; regulates and combines diverse
efforts into a harmonious whole. He gets together and harmonizes the work of
various personnel in his department and the related functions in other departments.
While day-to-day employee relations activities are accomplished in the work areas
through supervisors, these are coordinated by the personnel administrator so that
policies and programs are uniformly applied throughout the company.

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Negotiator- He is usually asked either to represent management in negotiating
labor contracts or attend negotiations with unions in an advisory capacity. He is, in
addition, charged with the administration of labor contracts. These are delicate and
highly technical processes in labor management relations.
As a negotiator and administrator of labor contracts, the personnel and industrial
relations manager must understand the nature, significance, and methods of
collective bargaining.

Educator- His educational functions are to sell the employees’ point of view to the
employers and supervisors. He conducts or administers the company’s training
programs. He is very much involved in the management of employee development
programs of his company. His influence and authority in the firm should enable him
to counsel and assist employees and stimulate the organization into developing
good employee relations.

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Service Provider- The personnel manager occupies a position in a company
which best provides certain services to all employees. He can initiate action, for
instance , to help employees obtain facilities with government agencies like SSS,
PhilHealth, Pag-Ibig, etc., which can make their employment more satisfying.

Employee Counselor- One of the functions of a personnel manager is employee

counseling. His knowledge and training in human relations and the behavioral
sciences plus his familiarity with company operations, puts him in the best position
to counsel employees. Counselling has been found to be one of the most effective
means of threshing out the problems between management and the employees.
Problems are nipped in the bud before they become serious , thereby preventing
serious conflicts. To make his counseling service effective, he must win the
confidence and trust of the employees. He can be successful only if the
employees will feel free to approach him and talk over their problems with him in
confidence.

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Promote of Community Relations- Today, corporations can no longer operate in
isolation and without regard to its community. The personnel manager must be well
informed of the activities and developments in the environment where the enterprise
operates. At all times, he is called upon to project a favorable image of the company. Or
he may participate in affairs beneficial to the interests not only of his organization but
also of the community.

Public Relations Man- The personnel manager may not be the public relations officer
of the firm but his functions require him to deal with the various publics of the company,
such as the employees, the unions, the general public, and the community.

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PERSONNEL MANAGEMENT:
A SCIENCE AND AN ART
Science is defined as a systematic accumulation of facts, their analysis
and interpretation, and their use to arrive at a satisfactory conclusion. Based
on the foregoing definition, it is clear that personnel management is a
science because it involves the systematic gathering of data derived from
surveys, statistics, interviews, and observations. It is an applied science
because it utilizes scientific principles in analyzing and interpreting data for
application in the management of people at work.
As a specialist, the personnel manager applies the findings of social
sciences, just as an educator applies the laws of learning and a doctor uses
the findings of medical science in the practice of his profession.

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 Art, on the other hand, is proficiency in the practical application of knowledge
acquired through study, experience, or observation. After the required data
are gathered and analyzed and the possible solutions to a problem are
formulated, a good executive needs to select the best from among
alternative solutions. He needs to implement his choice at the right time to
achieve the desired result, and to foresee the probable success or failure of
his line of action, and institute needed corrective measures promptly. This is
where personnel management is an art, since it involves the making of sound
decisions.
A manager’s success lies in his or her ability to draw the best service from
the workers and to gain their cooperation through motivation. In the exercise
of leadership in managing people, the personnel manager develops the art of
knowing the how, what, when, and why of dealing with employees and labor
unions.
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Major tools of the personnel manager as a scientist and an artist are his creative
imagination and intelligence. These become more keen as he learns from practice and
experience, honing his intuition and insight in handling the various problems of
employees in such a way that there is order, harmony, balance, and proper timing. He
also knows how to simplify complex problems.
The interplay of motivations and emotions in handling problems involving employees
is “played by ear”---i.e., by insight, the result of learning and experience with the
attendant knowledge and skillful application of management principles.
Since the management of human beings is not an exact science, experience is often
the only dependable guide. The process of acquiring this experience may, however, be
simplified by studying the experiences of other practitioners in the field. It may also be
acquired by taking college courses, by going through actual training on the job, by
attending conferences and seminars, and by reading literature on the subject.

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OTHER FIELDS OF STUDY IN PERSONNEL MANAGEMENT
Several fields of study have contributed to the development of personnel
management, especially in understanding people at work and in meeting their
problems. One who is getting into personnel work should be acquainted with
basic knowledge in related study fields such as psychology, economics, law,
labor economics, sociology, research, statistics especially in the behavioral
and social sciences.

Psychology- The science of psychology deals with the mind and the study
behavior in relation to the physical and social environment. A prospective
personnel manager needs psychology to understand the problems in
personnel selection, placement, morale, motivation, grievances, accidents,
tardiness, absenteeism, training, and counseling, among other operative
functions of personnel management and labor relations.

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Economics- The personnel manager’s function involves the human
element in the business enterprise, which is set up to produce and distribute
goods and services for profit. It is therefore essential that the personnel
manager be acquainted with the science of economics. Knowledge of
economic principles will be useful particularly in matters involving wages,
insurance plans, retirement and pension plans, profit sharing, and other
employee benefits.

Law- While the personnel manager need not be a lawyer to perform his
functions effectively, he must have a working knowledge of the various laws
concerning employer-employee relations. He must understand the rights,
privileges, and responsibilities of the workers on one hand, and
management’s rights and responsibilities on the other, under the Labor
Code and its Implementing Rules and Regulations.

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Sociology- A fairly good working knowledge of sociology is important in understanding
group behavior as influenced by cultural patterns and traditional modes of thinking.
Since cultural patterns vary from society to society, the personnel manager in the
Philippines must know Philippine society and culture.
The personnel manager’s knowledge of sociology is valuable in understanding the
work, especially in his relationship with the workers in the firm and with the entire
community. With this, he can better understand the behavior of groups or associations of
which his workers are members, especially in matters involving motivation, discipline,
and morale.

Research and Statistics- Research plays an important role in effective personnel

management and labor relations. Familiarity with research methods and techniques is
valuable in keeping the personnel manager abreast with the most recent advances in
handling the problems of workers. A good knowledge of statistical analysis and
interpretation and the ability to present a report in clear and concise language are
valuable assets to the personnel manager.

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During collective bargaining negotiations with the union, compensation and benefits
studies are done to help management decide the economic issues in the new Collective
Bargaining Agreement (CBA).
Personnel managers must, therefore, have some skills in conducting research and
surveys, interview techniques, and in the scientific analysis and interpretation of data.
Knowledge of basic statistical procedures like computing frequency distributions and
central tendencies like the mean, median, and mode, is essential in the interpretation of
research data.
For organizational development purposes, the Personnel Department undertakes
organizational climate surveys that analyze the state of job satisfaction and employee
morale. A full understanding of the critical factors that affect job performance is also
essential. For, example, the organization may wish to find out what causes job
performance to fluctuate significantly.
For such studies to be meaningful, these must be written in a style that can be easily
understood. Personnel managers must know how to present data in an understandable
and readily useful manner. Thus, a mastery of report writing skills is likewise essential.

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Chapter 3- JOB ANALYSIS- in this chapter, you will understand the use of
job analysis, job description, job evaluation, and job design in an
organization. These are key inputs of tools for various human resources
management activities such as recruitment, performance appraisal,
compensation survey comparison, training and development, and career
planning. These also provide a guide for proper supervision. At the end of this
chapter, you will also be able to describe commonly used job evaluation
methods including their advantages and disadvantages.

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WHAT’S AND WHY’S OF JOB ANALYSIS
The process of studying positions, of describing the duties and
responsibilities that go with jobs, and of grouping similar positions into job
categories is called job analysis. It is looking at what the work is, how it is
done, why the work is done, the link of the work to other jobs, the skills
required, the supervision and guidance needed, and the environment under
which it is done.
In doing job analysis, the following can be expected:

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