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Faculty DBS: Aruna Negi

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It is that phase of management which deals withthe effective control and use of manpower asdistinguished from other sources of power

Personnel Management is the

planning,organising,directing and controlling ofthe procurement, development, compensation,integration, maintenance and separation ofhuman resources to the end that individual,

organizational and social objectives areaccomplished

EDWIN D. FLIPPO


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Personnel Management is concerned withmanaging people.

It is concerned with employees, both asindividuals as well as a group.

Concerned with helping the employees todevelop their potentialities and capacities to themaximum possible extent.

Since recruitment , selection, development andutilization of, and accommodation to people are

an integral part of any organized effort,Personnel management is inherent in anyorganization.


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Personnel Management includes the function ofemployment development and compensation.These functions are performed primarily by thepersonnel management in consultation withother departments.

Personnel Management is an extension to generalmanagement. It is concerned with promoting andstimulating competent work force to make theirfullest contribution to the concern.

It exists to advice and assist the line managers inpersonnel matters. Therefore it is the staffdepartment.


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Personnel management lays emphasis on actionrather than making lengthy schedules, plans, workmethods. The problems and grievances of peopleat work can be solved more effectively through

rationale personnel policies. It is based on human orientation. It tries to help the

workers to develop their potential fully to theconcern.

It also motivates the employees through itseffective incentive plans so that the employeesprovide fullest co-operation.


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1. Nature of relations Pluralist Unitarist

2. Relation of power andmanagement

Morecentralized

More empoweredapproach

3. Leadership andmanagement role

Transactionalleadership

TransformationalLeadership

4. Contract ofemployment

Rigid Contracts FlexibleApproach

5. Pay policies and jobdesign Based on skillsand knowledge,does notencourage valueaddedincentives

Continuous jobimprovementand value addedincentives


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Although the field of personneladministration as a discipline is relativelyrecent, the precepts upon which its currentconcepts are based had their origin deep in

the history. For e.g., minimum wage rate and incentive wage plan were included inthe Babylonian Code of Hammurabi around1800 B.C.

In India, Kautilya has observed that thereexisted a sound base for systematicmanagement of human resources.


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IndustrialRevolution

Era

PaternalisticEra

ScientificManagemen

t Era

IndustrialPsychological

Era

BehavioralScience Era

HumanRelations

Era

PersonnelSpecialists

Era

Welfare Era


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Modern personnel management has evolved from anumber of significant inter related developmentswhich date back to the beginning of the Industrialrevolution.

The initial stage of the guild system is said to be the

early beginning of PM, for the three classes- themasters, the travelling journeymen and apprentices-were all a closely knit group and the system involved selecting, training, developing, rewarding andmaintaining workers.

The Industrial revolution brought about a greatly

expanded mass production of goods. Science andtechnology began to be applied to all aspects of thework of modern industrial corporations.


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The place of work changed from home to centralwork area.

Method of production changed from manual tomachine operations.

Migration from rural area to urban area.

However, the results were achieved at a great pricebecause:

Concentration of people in small, dingy factories. Working and living conditions were unsatisfactory

and unhygienic Adult working hours increased from 8 to 11 hours. Labour was looked upon as a commodity.


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In sum Industrial era brought aboutmaterialism, discipline, monotony,. Thebenefits of Industrial revolution, howeverhave outweighed the costs of increasing

industrialization.

Business and commerce were greatlyaccelerated, owners and entrepreneurs didwell but the average citizen faired poorly.


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Shortly after the advent of factory system, groups ofemployees began to get together to discuss theircommon problems. Initially these problems arose outof child labour, long hours of work and poor workingconditions. Later economic problems including thequestion of employee benefits and services becamethe major concern.

Workers joined together on the basis of theircommon interest to improve their lot.

This trade unionism however did influence thepersonnel management in fields of activity as the

adoption of employee grievances handling system,the acceptance of arbitration as a means of resolvingconflicts, disciplinary practices, expansion ofemployee benefit programmes etc.


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In the past, employers were not verysympathetic toward their workman. It wasRobert Owen(1913) who adopted a somewhatpaternalistic attitude towards his employees.

He emphasized that the emphasis should beon the mutuality of interests betweenemployers and workers and on the division oflabour.


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This era began in 1900. This era owes itsorigin to Frederick W. Taylor.

The scientific management movement hashad a great influence on employee employerrelationships and on management in general.It has elevated management by plan, systemand design and led to the decline ofmanagement by hunch and intuition.


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During this period psychologists wereintroduced to the field of industrialmanagement to study systematically manypersonnel problems.

Advances were made in selection, placement,testing, training and research practices.

Hawthrone studies: Emphasis on

interpersonal relationship, team work,participation, cohesiveness, loyalty etc.


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With the introduction of the factory system ,thousands of persons began to be employedunder one roof, and had to be controlled ifthe goals of the organization were to be

achieved.

For this various administrative clerks, manualemployees had to be recruited and fororganizational effectiveness, it was thenfound feasible to have Personnel Managersand Welfare Officers


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cont. unit 1

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