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KAMIS, 14 JANUARI 2010

The Nature and Challenge of Personnel Management

The Nature and Challenge of Personnel Management

At one time in our history, "liking people" appeared to be sufficient for choosing to work
in the field known as personnel management. Preferring to work with humans rather than
objects is still important, but it is grossly insufficient in these modern times. Personnel
management is one of our most complex and challenging fields of endeavor. Not only must the
firm's requirements for an effective work force be met, the personnel manager must be
greatly concerned with the expectations of both employees and society in general. Society
at large has proclaimed its human resources to have vital n e e d s t h a t m o v e b e y o n d a
" w o r k f o r c e " s t a t u s . T h e e m p l o ye e i s simultaneously an instrument of the firm, a
human being, and a citizen.
The role of the personnel manager has thus changed through time. At first, the
dominant role was to satisfy top management in procuring and maintaining a work force
that would be instrumental to organizational productivity. As knowledge expanded in
executing this role, the manager began to understand the necessity for ascertaining and
accommodating to the needs of the human beings who constituted that work force. He or
shec o n s t a n t l y searched for that program which would support
t h e accomplishment of bothorganizational and individual objectives. The job was made
more difficult by such factors as the rise of the modern labor union, the increasing
educational level of societal members, the increasing size and complexity of the
organization and its technology, and the insistent and sometimes violent demands of less
privileged segments of our society. This last-named factor has led to the final major
alteration of the personnel manager's role. Though societ y "permits" and encourages
the use of its citizens as means to organizational ends, the fact that they constitute an
instrumental work force in no way detracts from the fact that they are (1) human beings
with certain inalienable rights, and (2) society's citizens withassigned rights and privileges.
 In this newly expanded role, the personnel manager will at worst act as the
organization's social conscience, and at best will work, as an informed specialist, with all
members of the organization in determining and meeting the demands of this social role.
The modern personnel manager therefore requires a broad background in such fields
as psychology, sociology, philosophy, economics, and management. He or she must deal
with issues and problems that often do not have "right answers" obvious to all. There
will be required an ability to understand that which is not logical, a capacity to project
oneself into other positions without losing perspective, and a skill in predicting human and
organizational behavior. Reading or studying a text such as this will not magically change
one into an effective personnel executive. Study should be of material assistance, however,
in giving a perspective from which to view the field, in suggesting possible answers to current
problems, and in helping to define the way toward further improvement and research.
Certainly, in this text the technical content of the field will bethoroughly discussed. The
personnel manager who does not meet the demands of this initially assigned role may not be
around to worry about the other two. We shall also emphasize and attempt to define the nature
of the forces brought to bear by individuals and society. As suggested in Figure 1 -1, the
personnel manager needs to keep his or her head above water while moving ahead in the
confluence of these three major streams of influence.

Definition of Personnel Management

It is appropriate and helpful to offer, at the beginning of the discussion, a d e f i n i t i o n o f
t h e s u b j e c t t o b e c o v e r e d . In t h e f o l l o w i n g d e f i n i t i o n w e a r e presenting an
outline of this entire text. In the first place, we are dealing with two c a t e go r i e s o f
f u n c t i o n s , m a n a g e r i a l a n d o p e r a t i v e . A m a n a ge r i s o n e w h o exercises authority
and leadership over other personnel; the president of a firm is certainly a manager,
and so also is the department head or supervisor. On the other hand, an operative is
one who has no authority over others but has been given a specific task or duty to
perform under managerial supervision. Thus, the personnel manager is a manager
and as such must perform the basic functions of management. This is true no
matter what the nature of the operative function. Yet a comprehensive definition of
personnel management must include also the operative functions in the field. In
outline form, the definition would appear asfollows:
1. Management functions
a. Planning
b. Organizing
c. Directing
d. Controlling
2. Operative functions
a. Procurement
b. Development
c. Compensation
c. Integration .
e. Maintenance
f. Separation
 It is therefore possible, as mentioned in the preface, to summarize this entire text into
one sentence: Personnel management is the planning, organizing, directing, and
controlling of the procurement, development, compensation, integra tion, maintenance,
and separation of human resources to the end that individual, organizational, and societal
objectives are accomplished. Abrief elaboration of the component parts of this definition follows.
PLANNING Effective managers realize that a substantial portion of their time should be
devoted to planning. For the personnel manager, planning means the determination in advance
of a personnel program that will contribute to goals established or the
enterprise. Presumably, the process of goal establishment will involve the active and
enlightened participation of the personnel manager, with his or her expertise in the area of
human resources.
ORGANIZING After a course of action has been determined; an organization must be
established to carry it out. An organization is a means to an end. Once it has been determined
that certain personnel functions contribute toward the firm's objectives, the
personnel manager must form an organization by designing the structure of
relationships among jobs, personnel, and physical factors. One must be aware of the
complex relationships that exist between the specialized unit and the rest of the
organization. Because of increasing expertise in this function, m an y t op
managements are l ooking to the personnel m anager for advice in the general
organization of the enterprise.

DIRECTING At least in theory, we now have a plan and an organization

to execute that plan. It might appear that the next logical function would be that
ofoperation, doi ng t he job. But it has been found that a "st art er" function
is becoming increasingl y necessary. In our above definition, this function
waslabeled "direction," but it may be called by other names, such as
"motivation," "actuation," or "command." At any rate, a considerable number of
difficulties are involved in getting people to go to work willingly and effectively.

CONTROLLING Now, at last, the personnel functions are being performed. But
what is the management duty at this point? It is logical that its function should be
that of control, that is, the observation of action and its comparison with plans and
the correction of any deviations that may occur, or, at times, the realignment of plans
and their adjustment to unchangeable deviations. Control is the managerial function
concerned with regulating activities in accordance with the personnel plan, which in
turn was formulated on the basis of an analysis of fundamental organization goals.
It is believed that the four above -named functions are basic and common to all
managers. In Chapters 4 and 5, the personnel manager's responsibilities for planning,
organizing, and controlling will be discussed. The essence of the fourth function,
direction, is so closely allied with the operative function of integration that its
discussion will be delayed until later in this text. Though all managers must
unavoidabl y direct their subordinat es, the personnel manager should possess
exceptional expertise.
 There is a skill in managing that can be transferred to various operative areas, but no
one will deny that an effective manager must know what it is that he or she is
managing. The greater portion of this text is devoted to these personnel operative
functions.

PROCUREMENT This first operative function of personnel management

is concerned with the obtaining of the proper kind and number of personnel necessary to
accomplish organization goals. It deals specifically with such subjects as
the determination of human resources requirements and their recruitment,
selection,and pl acement . Det erm ini ng such requi rem ent s refers t o bot h number
and quality of personnel. Selection and placement cover the multitude of
activities designed to screen and hire personnel, such as reviewing application
forms, psychological testing, conducting interviews, and inducting. These activities
are presented and analyzed in Chapters 6 to 8.

DEVELOPMENT, After personnel have been obtained, they must be to

some degree developed. Development has to do with the increase of skill, throughtraining, that
is necessary for proper job performance.This is an activity of very great importance and
will continue to grow because of the changes in technology, the realignment of jobs, and
the increasing complexity of the managerial task. Discussion of operative, managerial, and
organization development will be presented in Chapter 9, to be followed by performance
appraisal and careerdevelopment in Chapters 10 and 11.

COMPENSATION This function is defined as the adequate and equitable

remuneration of personnel for their contributions to organization objectives. Though
some recent morale surveys have tended to minimize the importance of monetary income to
employees, we nevertheless contend that compensation is one of the most important
functions of personnel management. In dealing with this subject, 'we shall consider only
economic compensation. Psychic income is classified elsewhere. The basic elements of a
compensation program are presented in Chapters 12 to 14, with an emphasis upon
such subjects as job evaluation, wage policies, wage systems, and some of the recently devised
extra compensation plans.

INTEGRATION With the employee procured, developed, and reasonably compensated,

there follows one of the most difficult and frustrating challenges to management. The definition
labels this problem "integration." It is concerned with the attempt to effect a reasonable
reconciliation of individual, societal, and organizational interests. It rests upon a
foundation of belief that significant overlapping of interests do exist in our society.
Consequently, we must deal with the feelings and attitudes of personnel in conjunction with
the principles and policies of organizations. This broad problem, as well as the narrower
related problems, such as grievances, disciplinary action, and labor unions, will
be covered in Chapters 15 to 19.

MAINTENANCE If we have executed the foregoing functions well, we now have a

willing and able work force. Maintenance is concerned with the perpetuation of this
state. The maintenance of willingness is heavily affected by communications with employees, a
subject discussed in Chapter 20. The physical condition of the employee should be maintained,
and health and safety will be the subject of Chapter 21.

SEPARATION If the first function of personnel management is to secure the employee,

it is logical that the last should be the separation and return of that person to society.
Most people do not die on the job. The organization is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned citizen is in as
good shape as possible. In Chapter 22, we shall discuss such types of separations as
retirement, layoff, out placement, and discharge. The final chapter is devoted to the subject
of research in all personnel functions, and some consideration of the processes of introduc -
ing change should research findings demand it.
The purpose of all the activity outlined above, both managerial and operative, is to assist in
the accomplishment of 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
area can be justified only insofar as there is a net contribution toward basic goals. For the
most part these are goals of the particular organization concerned. But as suggested
earlier, society is tending to impose human goals upon the private business enterprise,goals
that may or may not make an immediate contribution to an organization's particular objectives.
The Role of the Personnel Manager
Every organization has personnel function whether or not a specific personnel manager has been
so designated. Every organization must hire, train, pay, motivate, maintain, and ultimately
separate employees. If a specialized personnelmanager exists, he or she can contribute
much to greater organizational effectiveness. In the past, assignment to this function
often constituted a one-way ticket to oblivion. But today, the increasingly critical nature of
problems and challenges in the more effective utilization of human resources has
greatly elevated the status of the field. It is estimated that human resources subjects nowconsume
about 20 percent of the total attention of top management; predictions have been made that
this will rise to 30 percent within 5 years. In the past, it has been typical to pay the personnel
manager about 70 percent of what his or her peers receive in the fields of marketing and
finance. But recently the percentage salary increases have been considerably higher in the
personnel field, which is the ultimate indication of the worth of a function in private
organization.
When a large corporation recently went looking for a manager to head its human resources
division with an offer of over $100,000, it was obvious that it was not looking for a "picnic
planner." In a recent survey of 2,200 firms, the median salary of the top personnel executive
in large organizations was $56,000.2 Median salaries of subordinate specialized executives were
as follows: $44,964 forinternational responsibilities; $39,600 for labor relations; $28,000
for safety executives; and $25,225 for those with equal employment opportunities responsi-
bilities.
To obtain a picture of the typical responsibilities of the personnel manager, the results of a
Prentice-Hall/American Society for Personnel Administrationsurvey of 1,381 personnel
executives are helpful .3 Figure 1-2 shows two features of the field: (1) the average percentage
of the personnel unit's budget allocated to specific activities, and (2) a priority rating for each
task indicating its relative importance. It will be noted that policy formulation, salary and
benefits administration, recruiting and screening, union relations, and maintenance -
securityaccount for the larger single portions of the budget. In terms of
priorities, however, the newly enhanced status of the field is denoted in that the
major emphasis is upon policy formulation, recruiting and screening, and
union relations. The impact of laws and courts has been substantial in all three areas. The
very low ratings for vending—food services and recreation—indicate that the field has changed
in both content and status.
One should not conclude that the itemized functions are fully and solely performed by the
personnel manager. All managers, regardless of area, are in part personnel managers. They
still have a role in selecting new personnel, in the sharing of their training and in the
inescapable function of integration and motivation. The only way that a personnel unit can
be truly effective is to work with and through the operating departments that are performing
the fundamental functions of the firm. Yet, society is constantly emphasizing that the
meeting of human needs and citizenship needs are also fundamental outputs of
all organizations. Thus, personnel management may be basically facilitative, but it is
increasingly being held responsible for an output of its own.
Challenges Of Modern Personnel Man agement
We need not look far to discover challenging problems in the field of personnel management.
Managers may ignore or attempt to bury personnel problems, but these will not lie dormant
because of the very nature of the problem component. Many problems are caused by
constant changes that occur both within and without the firm. Among the many major
changes that are occurring, the following four will illustrate the nature of the personnel
challenge:
Changing mix of the work force
Changing values of the work force
Changing demands of employers
Changing demands of government
C h a n gi n g m i x o f t he w o r k f o r c e
Though each person is unique and consequentl y presents a challenge to our general
understanding, one can also appreciate broader problems by categorizing personnel to delineate
and highlight trends. Among the major changes in the mix of personnel entering the work
force are: (1) increased numbers of minority members entering occupations requiring greater
skills, (2) increasing levels , of formal education for the entire work force, (3) more female
employees, (4) more married female employees, (5) more working mothers, and (6) a
steadily increasing majority of white-collar employees in place of the blue-collar.
The fourth challenge has had much to do with many of the above -listed changes.
Prohibition of discrimination and requirements for positive action to redress imbalances
in work force mix have led to greater numbers of minoritypersonnel being hired for all types
of jobs. The proportion of blacks, for example, has increased significantly in professional,
technical, managerial, clerical, sales, and craftsman-type jobs. However, this group still
holds a disproportionately large share of the less skilled and lower-paid jobs, such as those of
service worker and laborer. Steady increases in the level of formal education would seem to
bodewell for continued change.
C h a n gi n g v a l u e s o f t h e w o r k f o r c e
The changing mix of the work force inevitably leads to introduction of new values to
organizations. In the past and continuing into the present, the work force of America has
been heavily imbued with a set of values generally characterized by the term "work ethic."
Work is regarded as having spiritual meaning, buttressed by such behavioral norms as
punctuality, honesty, diligence, and frugality. One'sjob is a central life interest and
provides the dominant clue in interpersonal assessment. A work force with this set of
values is highly adapted to use by business organizations in their pursuit of the values of
productivity, efficiency, and effectiveness.
With respect to an increasing emphasis upon the individual as compared with the
organization, a number of changes in personnel programs have been tried. Attempts have
been made to redesign jobs to provide challenging activities that meet needs of the human
ego." In one company, it being well realized that some individuals prefer more repetitive, less
challenging assignments, a choice was provided between the assembly line and
individual assembly for the same product. Concerning pay, a few firms have moved to pay
the employee for skills possessed rather than for skills demanded by the job. With respect
to fringe benefits, a cafeteria arrangement has been proposed where the employee
can periodically choose what particular benefits he or she desires while remaining within
an overall cost limit. And, the individual's right to personal privacy has led many organizations
to cut back significantly upon information collected that has little to do with performance on
the job. As one example of such a program, Figure 1-5 outlines the essentials of an employee
privacy program followed by the International Business Machines Corporation.
As a final illustration of the move toward the indivi dual, the self -determination
of work schedules is an interesting recent phenomenon in this country. "Flexi time" is a
program that allows flexible starting and quitting times for the employee. The schedule used by
one company is as follows: (1) 7 to 9 A.M. constitutes a flexible band during which the employee
may choose the time he or she begins work, (2) 9 to 11:30 A.M. is core time all employees
must be present, (3) 11:30 A.M. to 1:00 P.M. is flexible time for taking a 30 minute lunch,
(4) 1 to 4 P.m. is core time, and (5) 4 to 6 P.M. is flexi time for quitting. When allowed
this freedom, slightly over half of the employees chose an earlier starting time and about a
third kept on working the usual hours. All employees must still work the required total number of
hours for the week or month. A variation of the plan is group-selected staggered hours. Rather
than each individual choosing her or his specific starting and stopping times , the group
votes as a unit for varying schedules that all will follow for designated periods of time.
C h a n g i n g d e m a n d s o f e m p l o ye r s
Changes are not all on the side of members of the work force. Organizations constantly
undergo changes in their internal environments in response to competitive pressures
as well as advancing technological progress. Two of the many major changes are (1) growth
of the huge international organization and steadily increasing attempts to automate operations.
Effects of these upon personnel programs will be briefly outlined.
Of the gross world product in 1973, it was estimated that 15 percent was produced by
multinational corporations. It is also predicted that by the close of this century, some 300
giant international business firms will produce more than half of the world's goods and services.
Of the world's top industrial companies, over half are based in the United States.
The most important facet of the personnel process in the establishment and operation
of overseas plants and facilities are that of selection and placement of key personnel. Pains
should be taken to assure that selectees possess certain basic characteristics. Among these
are: (1) a very real desire to work in a foreign country, (2) spouses who have actively encouraged
their mates to work overseas, cultural sensitivity and flexibility, (4) high degree of technical
competence, and (5) a sense for politics. One survey of the opinions of 127 overseas
managers revealed that they thought that the spouse’s opinion an d attitude should
be considered the number one screening factor. Cultural sensitivity is also essential if
we are to avoid the image of the "ugly American." In correlating success of performance
with various selection criteria, one study emphasized "the great importance of setting
consistent and accurate initial expectations about the work situation" of the overseas
assignment. This would require considerable education of the candidate concerning the
culture, country, politics, language, and business setting of the international facility.
That a challenge definitely still remains in this area is revealed by a survey of personnel
activities actually undertaken for a group of overseas managers. Approximately 80 percent of
the firms involved used no tests in screening for these assignments; of those who did, only 20
percent attempted to validate them. Two-thirds of the firms never bothered to consult
candidates' spouses concerning their attitudes and feelings about the assignment and the
designated country. Two-thirds provided no predeparture training for selectees to acquaint
them with such matters as the people, their political system, and their government.
Though the selectees will learn in time, this initial ignorance not only leads to many
daily mistakes and gaffes, but it also contributes to disillusionment and a desire to return
to home base. The personnel manager must take a more active role in this steadily increasing
challenge resulting from changed employer demands.
The second illustration dealing with altered employer demands is automation. Though
it has been given various specific meanings, in its simplest terms it is applied to machine
and work processes that are mechanized to the point of automatic self-regulation. Among
some of the major effects upon personnel management of automation are the following:
1. The restructuring of production jobs. Some of the routine, dull, monotonous jobs will be
eliminated. New jobs will be created with a "systems viewpoint" rather than
the "specialized task" perspective introduced by time and motion studies of the past.
An increase in the number of maintenance jobs will occur as a consequence of
an accelerated substitution of capital for labor.
2. Necessity for upgrading the work force. The restructuring of jobs will levy
a considerable burden upon personnel managers to retrain and upgrade personnel
to qualify for these new jobs. This will require more classroom instruction as well as on-
the-job training.
3. Structural unemployment. A most challenging problem to all those interested
in effective personnel management is the adjustment of the present work force in terms
ofquantity. Some jobs will be eliminated and others created that call for higher levels of
skill and knowledge. Some personnel cannot be retrained because of fundamental deficien-
cies in education and abilities. Some personnel cannot be reabsorbed even if retrainable. The
unemployment that results is a problem of such significance and complexity that it requires
the efforts of not only private industry, but labor unions and all levels of government as
well.
4. Labor relations problems and adjustments.Restructuring of jobs will also affect
the organization of corresponding labor unions. Some unions will die, though unwillingly,
as a specialized occupation is automated out of existence. Changes in union
jurisdictions would also mean changes in seniority units. The trend may well be in the
direction of larger units covering a series of jobs or occupations, or perhaps encompassing the
entire plant or company.
5. Adjustments in wage structures. The intricate tie-in among jobs and work stations in a
highly mechanized or automated plant tends to place emphasis upon cooperation rather
than competition. The individually oriented piece-rate wage system may have to give way
to systems which reward the group. As jobs are altered to fit a system, the related pay
structures will require corresponding adjustment. Basic pay plans may again be based largely
on time spent at work, with extra compensation geared to improvement in group output.
6. Human relations difficulties. The restructuring and revised layout of work necessarily
involves the alteration of existing patterns of interpersonal relationships. The size of any one
work group could well decrease; new layouts could force people to work
in comparative isolation. This may cause problems of adjustment, as evidenced by
the demands of workers in one British factory for a new fringe benefit of "lonely"
pay. Certainly, it is easy to predict the human problems that accompany the introduction
and grudging acceptance of changes involving the loss of job or obsolescence of
skills developed over the years. Automation is introduced for technical and economic
reasons, but its immediate consequences and difficulties are essentially human in nature.