CHAPTER -1 INTRODUCTION- PERSONNEL POLICIES AND PRACTICES

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1 CHAPTER -1 INTRODUCTION- PERSONNEL POLICIES AND PRACTICES

2 1. INTRODUCTION - PERSONNEL POLICIES AND PRACTICES: The term personal means relating to persons or about persons Personnel is relating to man*. 1.1 PERSONNEL MANAGEMENT: Personnel Management is an extension of general management. Personnel Management is that phase of management which deals with the effective and control and use of manpower. Personnel Management is the science, which deals with the problems of the development of labour force in all respect. In the real sense it is concerned with the proper use of the human factor of business. Personal Management is called by different names i.e. Personnel Administration Labour Management Industrial Relations EmployeeRelations or Manpower Management. 1.2 PERSONNEL MANAGEMENT DEFINITION: 1. Personnel Management is that part of management processes which is primarily concerned with the human constituents of the organization. E.F.L. Breach 1 2. Personnel Management is an execution of general management, that of prompting and stimulating every employee to make his fullest contribution to the purpose of the business. C.H. Northcott 2 3. Personnel Management is the specialized intelligent handling of the human factor by a separate department which would devote its hill time for research along the line of improvement in industrial relations. R.G. Gokhale 3 4. It is method of developing potentialities of employees so that they get maximum satisfaction out of there work and give there best effort to the organization Pigors,Paul and Myres, Charles A.4 5. It is a function concerned with developing and utilizing the manpower resources of the business to the optimum extent in archiving the objectives of the business. Dirks, Howard M Personnel Management is planning, organizing, directing, and controlling of the procurement,development, compensation, integration, maintance and separation of human resources to the end that individual, organizational and social objectives are accomplished. Edwin B Flippo 6 2

3 7. Personnel Management is the recruitment, selection, development, utilization of and accommodation to human resources by organizations. The human resources of organizations consist of all individuals regardless of there role, who are engaged in any of organizations activities. French Wendell 7 8. The Management human resources are viewed as a system in which participants seeks to attain both individual and group goals. Yoder D 8 9. It is the phase of Management which deals with the effective control and use of manpower as distinguished from other scores of power. Ibid Personnel Management is that part of management function which is primarily concerned with the human relationship within an organization. Its objectives is the maintance those relationship on a basis which, by consideration of the well-being of the individual, enables all those engaged in the undertaking to make their maximum personnel contribution to the effective working of the undertaking The Institute of Personnel Management,London MANAGEMENT: Management is an Art. It is an application of knowledge (or skill) in a creative or unique manner. Management like all other practices, managing or management practice is science more and art It is know-how-doing things in the light of realities of a situation. In Management the managers may term for meaningful guidance than the accumulated knowledge underlying their practice. Managemen: may definitely he regarded as a science. Because its principles, rules and procedures, methods and techniques have been presented in a systematic way. Managing people is the heart and essence of being a manager. 1.4 DEFINITION : 1. Management is a multi-purpose organ which has three jobs, two of which are directly related to personnel managing a business, managing managers, and a managing workers and the work. P Drucker Management is the accomplishment of results through the efforts of other people. Lawrence Appley Management is the art of getting thins done through people anc with informally organized groups Harold Koontz Management is the process by which co-operative group directs action towards common goal Joseph Mossie 14 3

4 5. Management is the process of working with and through others to archive organizational objectives in changing environment, central to purpose is the effective and efficient use of limited resources. Robert Kreitner Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. Richard L Daft Management is to forecast, to plan, to organize, to commend, to coordinate and control activities of others Heniri Fayol 17 Management may be thought as the process of utilizing material and human resources to accomplish designated objectives i.e. it involves accomplishing results through other people. 1.5 THE POLICY: The dictionary meaning of Policy is Plan of action and Plan is a policy. Policy is a statement of overall objectives of the organization in the various areas with which its operations are concerned. Either production of personnel or finance policies are general instructions. Policies written maybe given a wide circulation among the workers so that they may know the organizational objectives and help the management in achieving them. Policies serve as guide to action. Policies respond what and why. The policy is regarded as setting governing regulations or norms. It is the basis of control. The emphasis in it is on the regulatory aspect. Policy as a guide to a managerial control works in a cyclical fashion. Policies are in general more stable that procedures and regulations, yet they are not static but more modified to meet changing conditions. The policy formulation is an administrative function. They are generally formulated by the Board of Directors or by Top Management5. There are two groups of policies major and minor. Major policies pertain to the overall objectives* procedures, and controls that influence the organization as a whole. Minor policies cover relationship within the segment of the enterprise. With considerable emphasis on details and procedures. The Board of Directors formulates the major policies and establishes the frame work within, which is a major executives establish the remaining policies necessary to carry out the major objectives of the organization. 1.6 POLICY DEFINITION: 1. A policy is a man made rule or predetermined course of action, that is established to guide the performance of work towards the 4

5 organization objectives. It is a type of standing plan that serves tc guide subordinates in the execution of their tasks. Edwin B. Flippc Policies are statements of the organizations over all purposes its objectives in the various areas with which its operations are concerned personnel finance, production, marketing, and so on James B. Bambrick A policy is a predetermined and accepted the course of thought and action that is defined an established as a guide towards accepted goals and objectives. Dale Yoder. 20 Thus personnel policies refer the principles and rules of conduct which formulate, refine, break, into details and decide a number of cautions that govern the relationship with employees. In order to achieve the objectives there should be a predetermined and accepted course of action to keep the management and labour on track. Such course of action may be called personnel policy. 1.7 PRACTICES: The way of executing the policies, practices, transform the policies into action. Practices on the other hand, are what is actually done in the organization. Practicing requires the skill, knowledge and to do the things again and again. To do one thing again and again is practice. What are recruitment and training practices? What is purchasing and selling practices? Punching of cards, checking of totals, practice of stock taking etc. It means daily how you do these things. In continuous working process how you do these activities. There is difference in between principles and practices. In practice difference is made, it varies to situation or circumstances. 1.8 PERSONNEL POLICES : Introduction: For any successful management it requires harmonious relationship between management and employees of the establishment. The personnel polices is required to reflect the management s. intention on various matters concerning personnel. Personnel polices provides guidelines regarding recruiting, selecting, promoting, developing, organizing, motivating, and otherwise dealing and directing people in the working organizations. It forms an integral part of the entire policies structure of the factory organization. 5

6 1.8.2 Definition: Personnel Policy is defined as that body of principles and rules of conduct which govern the enterprise in its relationship with the employees Walter Scott. 21 According to Calhoon, Personnel policies constitute guide to action. The furnish the general standards or base on which decisions are reached. Their genesis lies in an organization values, philosophy, concepts and principles. 22 Personnel policies are those that individuals have developed to keep than on the track towards their personnel objectives. Management policies are developed by working organizations to keep then on course headed and directed toward their organizational objectives these define the intentions of the organization and serve as guidelines to give consistency and continuity to total operations. They provide a base for management by principle as contrasted with management by expediency. Dale Yoder 23 He adds: Personnel or Labour or Industrial Relations Policy Provides guidelines for a wide variety employment relationship in the organization. These guidelines identified the organization s intentions in recruitment, selection, promation, development, compensation, orgration, motivation and otherwise leading and directing people in the working organization. Personnel policies serve as a road map for managers. Ibid 24 Thus, Personnel Policies refer to principles and rules of conduct which, Formulate, redefine, break into details and decide a number of actions That governs the relationship with-, employees in the attainment of the organization objectives. Personnel Policies arei) The key-stone in the arch of management and the life-blood for the successful functioning of the personnel management because, without these policies, there can not be any lasting improvements in labour management relations; ii) The statements of intention indicating an agreement to a general course of action, indicating specifically what the organization purpose to do and, thus, suggests the values an view points which dominate the organizations actions, and iii) A positive declaration and a command to an organization. They translate the goals of an organization into selected routes and provide general guidelines that both prescribe and proscribe programmes which, in turn, dictate practices and procedures. 6

7 iv) The personnel policy in writing is expected to be of great importance in promoting uniformity and consistency of management The existence of a carefully formulated policy depends upon the attitude of the top management. The process of developing personnel policy involves assessing its appropriateness to the factory organization. The personnel officer along with other functional heads his role consists of initiating and formulating overall personnel policy. Servicing as an advisory agenc and helping the line personnel implementing the policy. Changing values and environment have an important bearing on personnel policies. Personnel policy needs to be communicated for effective administration. Methods to communicate personnel policy differ from organization to organization and from factory to factory. This depends upon the nature and level of the policy decisions. Employees satisfaction was found to differ with different aspects of personnel policy. In general, personnel policy seemed to have made positive contribution to supervisory attitude to job factors. Unionization had caused management to pay greater and better attention to matters related to personnel policy. 1.9 ESSENTIALS OF PERSONNEL POLICY: Personnel policies are required because the points of requirements given as follow.: 1. TO ACHIEVE THE OBJECTIVES OF THE ORGANISATION Policies are guide to action towards the objectives of the organization. So they must be known to and well understood by every concerned person in order to communicate their efforts. 2. DELEGATION OF AUTHORITY POSSIBLE Delegation of authority means assigning the work of other and gives them authority to do it. It helps executives at various levels of decision centers to act with confidence. It gives the factory manager liberty to choose alternative ways available. It helps him to decide upon the action. 3. EVALUATING EFFICIENCY Policy serves as standards in execution of work. Efficiency of each group may be evaluated by its performance, in the light of policy. It may he assessed whether organization has achieved the desired results set in. Policy may be amended or a new policy may be formulated in the light of the actual performance. 4. BETTER CONTROL Personnel policies specify the relationship among the organization, management and workers. Each group works for the 7

8 achievements for the large objectives of the organization without any policy conflicts thus it provides better control. 5. UNIFORMITY OF DECISIONS Personnel policies furnish the general standard on which decisions are taken this brings simplicity and uniformity in action. 6. MOTIVATION OF WORKER Policy makes the employees aware of the objectives of the organization. It guides them in achieving them. So employees work actively and with loyalty to get those objectives. 7. CONFIDENCE The policy provides the worker a security against exploitation. It creates confidence in employees. They know by the policy where they stand in the organization. 8. GUIDE TO MANAGEMENT Policy provides guidance to management in relation to the personnel policies. They resolve how to get the work done by the people at work or how to behave them OBJECTIVES OF PERSONNEL POLICIES : 1. Maximum individual development of every personality. 2. Maximum use of human resources to get the best results in time. 3. Promotion of sound industrial relations. 4. Every employee should et individual job satisfaction. 5. ' Other objectives are like to protect the interest of workers, to provide incentives, opportunities for promotion and security of job AN IDEAL PERSONNEL POLICIES CONTAINS THE FOLLOWING FACTS : 1. Protection of interests of all concerned parties. 2. Precision and certainty. 3. Flexibility. 4. Stability. 5. Compromise with other policies. 6. Integrative ness 7. Uniformity 8. Acceptability 9. Proper Communication 10. Responsiveness to prevailing trends 8

9 1.12 IN FORMULATION AND WRITING OF PERSONNEL POLICY; 1. Policy should accurately represent managerial philosophy. 2. Intention behind policy should be understood by all the members in the organization in the' same sense in which management does. 3. Policy should have been developed through a participative process. If possible a committee approach to it should exist. 4. Policy should be flexible enough to stand up under changing circumstances. 5. Lastly they should be fair in the eyes of employees, industry, and the public policy adequately represents employee value and changing environment PRINCIPLES OF PERSONNEL MANAGEMENT There is absolutely essential need for certain guiding principles to solve the personnel problems. These guiding principles will help the personnel executives in the formulation of personnel policies, procedures and programmes also. The principles are as follows. (1) PRINCIPLE OF ADEQUATE COMMUNICATIONS In any organization there should be proper circulation of necessary information. The policies, programmes, objectives and philosophy may be made known to the employees. It will made everything clear. (2) PRINCIPLE OF DIGNITY OF LABOUR Merit, intelligence, and efforts must be the sole criteria for upward mobility. (3) PRINCIPLE OF PARTICIPATION Employees are offered opportunity to come with their ideas views and suggestions to improve various operations by developing sense of participation. (4) PRINCIPLE OF INDIVIDUAL DEVELOPMENT Every employee is a separate and distinct personality. This principle offers foil and equal opportunity to develop fullest potentialities of every employee. (5) PRINCIPLE OF SCIENTIFIC SELECTION PROCEDURE While recruiting and selecting employees in any organization this principle is followed. For this it requires careful selection and use of personnel tools and techniques to scientific selection of employees. 9

10 (6) PRINCIPLE OF INCENTIVE Incentives like monetary and non-monetary must be appreciated. Fair and equitable remuneration will attract and hold efficient employees in the organization. (7) PRINCIPLE OF FAIR COMPENSATION The wage and salary must be fair and equitable. Monetary incentives attract the people. So it is suitable. (8) PRINCIPLE OF TEAM SPIRIT Policies and programmes must be so formulated that the different and diversified talents and efforts of individual are brought and welded together in group effort in true spirit of togetherness where team work, Co-operation and collaboration may be guiding light. (9) PRINCIPLE OF LABOUR MANAGEMENT CO-OPERATION. The personnel specialist must assist, top management, in fostering organization conditions that remove distracts between labour and management. Through proper communication, creative, consultative, participative managerial philosophy and the integration of any conflict, which enhance labour management co-operative. (10) PRINCIPLE OF CONTRIBUTION TO NATIONAL PROSPERITY Employees must be educated, through appropriate personnel to believe in proposition that their contribution to the achievement of company goals will ultimately contribute to this economic development and prosperity of the nation as a whole. The principles of personnel administration are reflected in general statement or policies. But personnel policies are largely conditioned by the management creeds and philosophies OBJECTIVES OF PERSONNEL MANAGEMENT: GENERAL OBJECTIVES: 1. Maximum individual development. 2. Desirable working relationship between employer and employees. 3. Effective molding of human resource as contrasted with physical resources SPECIFIC OBJECTIVES: The statement of specific objectives would generally refer to the various activities of the personnel department. Following are some of the important activities. 10

11 1. Selection of right type and number of persons required to the organization concerned. 2. Proper orientation and new employees to the organization to their jobs. 3. Organization of suitable training facilities for better job performance and to prepare the man to accept the challenge of higher job. 4. Provision of better working conditions and other facilities such as medical facilities, facility of provident fund, gratuity, leave with pay etc. So as to help to hold the competent and qualified personnel in the service of the organization. 5. Provision of sound fair and effective wages and salary. Salary administration and other incentives which will result in the highest possible productivity of workers. 6. A fall and fair consideration should be given to the employee when his services are terminated or he leaves the organization. He should hold a good impression of the management of the time of retirement. 7. Good relations should be maintained with representatives of trade unions, because trade unions today play an important role in the industrial life and therefore, mutual confidence and respect to each other is essential. 8. Provisions of continuous personnel research, which keeps the management equipped with recent development and trends essential to take sound decisions without any farther delay as regards personnel matters. In short, the objective of the personnel management is to satisfy the men at work. The management should be in touch with work force and be aware of the problems faced by them at and above work and try to solve them effectively with the least controversy ASPECTS OF PERSONNEL MANAGEMENT: Personnel Management includes three aspects. These aspects are inter - related. The aspects are: THE PERSONNEL ASPECT: This includes in particular recruitment, selection, and placement of personnel. Training and development, motivation, transfers, promotions etc THE WELFARE ASPECT: This is concerned with the physical amenities necessary for the employees and includes among their other things working and living conditions amenities and facilities, health and safety etc. 11

12 THE INDUSTRIAL RELATION ASPECT: This includes the industrial relations, negotiating, collective bargaining processes, disciplinary action, grievance handling and settlement etc. To recognize the human personality is the base of personnel management. It essentially maintains good industrial relations in the enterprise form the grass root of industrial relations. The role of personnel policy in determining the climate of industrial relations is very significant. Experience of Great Britain has shown that personnel management can make a significant contribution to the improvement of industrial relations. Aspects of personnel management are concerned with the human element in the working organization as distinct from the mechanical. As Personnel or Labour comprises social human being with all the feelings and inhibitions of living beings the personnel management must proceed on its work with certain basic concepts of human relations, or human engineering to achieve the desired results. Understanding people and their inter relationship in the work situation, Personnel management deals with various human problems. That may comprise into six activities. 1. Employment. 2. Education (Training and Development) 3. Health and Safety. 4. Joint Consolation. 5. Employee service 6. Research 1.16 PERSONNEL PRACTICES: Broadly speaking experts have classified the ftmctions into two major categories viz. 1. Managerial Functions 2. Operative Functions MANEGIRAL FUNCTIONS: Managers procure process and find employee resources, develop services, and find markets for their output, Managerial functions are interdependent. A. PLANNING: Planning means thinking before doing. Before actual work is standard, in planning it is decided what is to be done? Planning is a pre determined course of action. Preston and Breaton.25 12

13 It is the trap laid to capture the future Allen 26 Planning is the foundation of the most successful actions of nay enterprise Terry In fact Planning is a hard job, for it involves the ability to think to predict, to analyze and to come to decisions to control the actions, skillful manager s control over dynamic environment. They bridge the gap between where they are and where they want to go Koontz 27 For this purpose personnel management determine programmes well in advance. The two most important features of planning and research and forecasting. These two are inter related. Personnd Administration should be able to predict the trends in wages, labour markets, in union demands, in personnel policies and programmesl Because of planning unforeseen or anticipated problems and events may be properly handled. B. ORGANISING: When the planning is done, the next stop is organizing the factor of production for execution. To arrange men, material and money for executing production activity. It is the human organization which forms an important function of management. The purpose of the organization is the delegation of authority and responsibility. According to J. L. Massie, An organization is a structure and a process by which a Co-operative group of human being allocates its tasks among its members, identifies relationships and integrates its activities towards common objectives 28 This is done by designing the structure of relationship among men, their operations and other physical factors. An organization is a welding of authority and responsibility. It consists of the assignment of specific functions to specific designated persons. The personnel are accountable to management for results. To achieve the maximum return with minimum efforts decentralization is brought down as near as possible to individuals. Centralization or decentralization depends upon the philosophy of management. Appreciation and recommendation of the benefits of delegation and decentralization. P. Drucker says, The right organizational structure is the necessary foundation, without it, the best performance in all other areas of management will be ineffectual and frustrated. 29 C. DIRECTING: It means the system of directing the plan into operation. Only giving orders is not directing. The person who directs must have dynamic leadership. Direction means giving instructions. These instructions must be simple, clear, complete, and responsible. It must be in writing as far as possible.. 13

14 Motivating, actuating or commanding, the subordinate at any level is the basic function of the management personnel. Direction is involved with getting persons together and asking them to work willingly and effectively. The decisions are taken by the top management, but only after consultation with the personnel departments. D. CO-ORDINATING: The task of co-ordination is to integrate and harmonize them to achieve a common object. This is achieved by the skill of manager, supervisor etc. Co-ordination deals with the tasks of blending efforts in order to ensure a successful attainment of objectives. Coordination in the management of personnel takes place at all levels, from the top management through to the supervisor. The personnel department has to co-ordinate the tasks of developing interpreting and reviewing personnel policies, practices, and programmes. E. CONTROLLING: This is the last but most important function of management. If above four functions are performed perfectly then there will be nothing left to control, by the manager. In practice there are certain errors, omissions, may arise. So the function of control is to match actual performance with the plans and to point out defective work, to rectify them and prevent reoccurrence. For the measurement of performance, some standards must be laid down. The various forms of control are quality control, cost control, material control, and production control. Controlling is the act of checking, regulating, verifying, whether everything occurs in conformity with the plans sanctioned. The plan is adopted with issuing instructions and the principles adopted with issuing instructions and the principles established previously. Auditing, training, programmes, analyzing labour turnover records, directing morale surveys, conducting separation, interviews, comparing various features of the programme with other organization programmes in the area; are some of the means of controlling the management of personnel OPERATIVE FUNCTIONS : The operative functions of personnel management are concerned with the activities specifically dealing with procuring, developing, compensating, integrating and maintaining, an effective work force. These functions are also known'as services function. A) PROCUREMENT FUNCTION: It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish an organization s goals. 14

15 It deals specifically with such subjects as the determination of manpower requirements, their recruitment, selection and placement. Comprising activities to screen and hire personnel, including application forms, psychological tests, interviews, medical checkup, reference calling etc. Induction, follow-up, transfers, lay-off, discharge and separation etc. include in this function. B) DEVELOPMENT FUNCTION: It 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 jobs, office and vestibule training, holding seminars and conferences, providing for educational and vocational counseling and appraising employee potential and performance are under taken under this function. C) THE COMPENSATING FUNCTION: It is concerned with securing adequate and equitable remuneration to personnel for their contribution to the attainment of the organizational objectives. Functions related to wage surveys, establishment of job classifications, job descriptions and job analysis, merit ratings, the establishment of wage rates and wage structure wage plans and policies, wage systems, in countries and profit sharing plans etc fall under category. D) THE MAINTENANCE FUNCTION: It 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. E) OTHER FUNCTIONS: 1. EMPLOYEE RECORDS: This includes: 1) Employee records 2) Labour Relations 3) Personnel Research and Personnel Audit This includes complete and up-to-date information of employees. This may be utilized if need may be. At the time of transfers, promotions, merit pay, sanctioning leave, etc. this is referred. This information relates to personnel qualifications, special increments, attitudes, results, regards, and punishments. 15

16 2. LABOUR RELATIONS: For smooth flow of production work labour management relations should be sound. Healthy and peaceful Labour management relations increase the prosperity and good will of the organizations. There should be proper industrial relations policy. There should be proper grievance procedure and policy. There should be proper grievance procedure and policy. There should be proper disciplinary procedure and policy. Sound policy regarding employee-employer co-operation. Sound policy regarding dismissals and discharges. Proper job satisfaction to employees. Collective bargaining process rewards and punishments to employees, problems like absenteeism, strikers, etc. all this comes under labour relations. 3. PERSONNEL RESEARCH AND PERSONNEL AUDIT: i) To make more effective the organizations personnel programmes like recruitment, selection, development, utilization of accommodation to human resources. ii) Procedures and policies and findings submitted to the top management. iii) Morale and attitude surveys. 16

17 REFERENCES: 1] Breach EFL (Ed) Personnel Practice of Management5, P ] Northcott, C.H., Personnel Management5: Principles and Practice (Pitman, London) 2958 P. 12 3] Gokhale R.G., Personnel Management in India, symposium on Problems of LABOUR5 preparatory Asian Regional conference of the ILO New Delhi 1947 P.75 4] Pigors, Paul and Myres, Charles A. 5] Dirks, Howard M., PersonnelAdministration5,NewYourk-1967.P.l 1 6] Edwin B Flippo, Personnel Management5 McGraw HilI-1980.P.5 7] French Wendell, The Personnel Management process: H.RAdministration Houghtion Miffin Company,NewYourk-1974 P.3 8] Yoder D, Personnel Management and Industrial relations P.8 9] Ibid P.6 10] The Institute of Personnel Management, London. Function cf Personnel Departmant.5 London 11] P. Drucker, The Essence of Management5 P.13 12] L. Appley, Management in Action5, ] Koontz H. ando5 Donnel, Principles of Management5, ] Joseph Mossie 15] Robert Kreitner, Management, A.I.T.B.S5, New Delhi ] Richard L Daft, The New Era of Management ] Heniri Fayol, General and Industrial Management, Pitam, NewYouric ] Flippo Edwin B. Principles of Personnel Management5 Kogakusha Co. Ltd. Tokyo P

18 19] Bambrick, James B, Developing workable personnel policies In the personnel man and his job D.B. Taraporwada and Sons Bombay 1967 P ] Yoder Dale, Personnel Management and Industrial relations 1972 P. 26,27 21] Walter Dill Scot, Robert C. Clothier, William R. Spriegal, Personnel Management: Principles practices and point of View, Me Graw Hill Book Co. U.S. 1961, P.47 22] Calhoon,R.,Personnel Management and Supervision,Appletion Century Crafts,NewYork, 1967,P ] Yader,Dale,Personnel Management and Industerial Relations,Printice-Hall of India,Pvt. Ltd.,New Delhi, 1972,PP ] Ibid PP ] Preston and Breton and Dale A. Hemming Planning theory 1961,P. 7 26] L.A. Allen, Management and organisation ] Koontz and O Donnel, Principles of Management P ] L. Massie Essentials of Managements 1964 P ] F. Drucker, The practice of Management P. 225,