Introduction to Personnel Management

Staffing, Recruitment, Selection, Performance Appraisal, Discipline, Collective Bargaining, Job Satisfaction

Personnel Management
PM may be defined as a set of programs, functions and activities designed to accomplish both personal and organizational goals. PM involves attracting and hiring qualified and competent people, establishment of various policies and rules to manage people and retain them.

Three important dimensions of PM

Personnel aspect
Staffing, Recruitment, Selection, Placement, Training, Appraisal, Compensation

Welfare aspect
Industrial Relations aspect

Working conditions, amenities, facilities, benefits

Industrial relations, disputes settlement, grievance handling, discipline, collective bargaining

Features of PM
It is concerned with employee both individual and as a group. PM covers all levels(lower, middle and top) and categories(unskilled, skilled, technical, managerial and clerical). It applies to all types of organizations in the world (industry, trade, service, commerce, economic, social, religious, political and government dep't. It is a responsibility of all line mangers and a function performed by staff mangers across the organization. It aims at attaining the goals of an organization(survival, profitability, growth, development, Innovation, excellence), individual (high salary, fringe benefits, Job satisfaction, job security, recognition) working therein and societal (equal employment opportunity, minimizing wage differentiation).

Personnel Management- Functions

Managerial functions-

planning, organizing, directing, controlling

Operative functions-

Procurement (job analysis, HRP, Recruitment, selection, placement, induction, orientation), Development (training, career planning), Motivation and compensation (motivation, PA, compensation administration), Maintenance (health and safety, welfare, social security), Integration function (employee empowerment, discipline, grievance, collective
bargaining, trade unions)

Staffing To place the right employees in the right jobs at the right time so that an organization can meet its objectives

Human Resource Planning

Assessing Current Human Resources Assessing Future Human Resource Needs

Developing a Program to Meet Needs

FOM 9.7

Objectives:
To forecast personnel requirements Cope with changes Use existing manpower productively Promote employee in a systematic manner

HRP Process
External challenges as competition, economic and technical developments, forecasting, workforce and workload analysis.

Internal labor supply External labor supply

Forecasting the demand for human resources

HR IS

Preparing manpower inventory

Formulating HR Plans
Recruitment plan Redeployment plan Redundancy plan Training plan Retention plan

Determining manpower gaps

Reconciliation of existing HR inventory with demand foresting to determine the qualitative and quantitative gaps

Recruitment
Process of locating, identifying, and attracting capable candidates
Can be for current or future needs Critical activity for some corporations. What sources do we use for recruitment

FOM 9.10

Definition Recruitment is the process of locating and encouraging potential applicants to apply for existing job openings. Recruitment aims at (i) attracting a large number of qualified applicants who are ready to take up jobs if it is offered and (ii) offering enough information for unqualified people to self-select themselves out.

Information flow
Organization need for high quality employees Potential applicants need for suitable job

Sources of Recruitment
Internal sources
Promotion Demotion Transfer Retired employees Dependent of the deceased employees

External sources
Aspirants registered with employment exchange Educational institutes Search firms and contractors Individuals working in other organizations Referred by unions, friends, employee

Merits and Demerits of Internal sources

Merits Economical Suitable Reliable Motivating and satisfying Demerits Limited Choice Inbreeding Inefficiency

Merits and Demerits of external sources

Merits Wide Choice Injection of fresh blood Motivational force Competitive atmosphere Demerits Expensive Time consuming Demotivation Uncertainty

Methods of Recruitments
Internal methods Direct methods Indirect methods Third party methods

Promotion Campus Newspaper, Private Transfer recruitment television and employment Job radio search firms posting advertisement Employment Employee exchange referrals Gate hiring and walk-ins

Alternative to Recruitments
Overtime Temporary employees outsourcing

Selection

Selection- to select mean to choose

Definition- Selection is the process of picking individuals who have relevant qualifications to fill jobs in an organization. The basic purpose is to choose the individual who can most successfully perform the job, from the pool of qualified candidates.

Hiring decision Reference check

Intelligence test Personality Achievement test Simulation Assessment Centre Non Directive Directive Stress Panel Situational Behavioral

Medical examination Selection interview Selection tests Application blanks Screening interview

Reception

Standards for selection tests

Reliability Validity Preparation Usefulness Standardization

Performance Appraisal

DefinitionPerformance appraisal is a method of

evaluating the behavior of employees in the work spot normally including qualitative and quantitative aspects of job performance.
It is a process that involves determining and communicating to an employee how he or she is performing the job

Features of Performance Appraisal

The appraisal is.... a systematic process involving three steps:
Identification

Measurement

Management

is not a one shot deal. Is not a past-oriented activity. May be formal or informal. Is not limited to calling the fouls.

Objectives
Administrative Uses
Salary administration Promotion or Transfer Retention Layoffs Personnel planning Determining org training needs Evaluate goal achievement Reinforce authority structure Meeting legal requirements

Developmental Uses
Recognition of individual performance Identifying poor performance Identifying individual training needs Performance feedback Identifying individual strengths & weaknesses Assist in goal identification

Some issues
What is to be appraise? When to appraise? Who will appraise?
Supervisors Peers Subordinates Self-appraisals Customers Consultants

The performance appraisal process

Establish performance standards
Communicate standards Measure actual performance

Compare and discuss

Taking corrective action, if necessary

Methods of performance appraisal

Individual evaluation Multi-person evaluation Others Confidential report Ranking method A.Cs Essay evaluation Paired comparison HRA* Critical incidents Forced distribution Forced choice method Group Appraisal MBO Checklist or weighted checklist* Graphic rating scales* Behaviorally anchored (combination of rating n critical incident)

360 degree feedback system

Merits Multiple feedback Creates an atmosphere of teamwork and improvement Demerits Biased response Assesses deny the truth of negative feedback

Problems with PA:

Judgment errors Poor appraisal forms Lack of rater preparedness Ineffective organizational policies

Primacy effect Halo effect Horn effect Leniency Central tendency Recency effect

Training and communication

Discipline

Definition:
In a restricted sense, it is the act of imposing penalties for wrong behavior; broadly speaking, it is orderliness, conformance to establish rules and codes of conduct. Positive discipline Negative discipline Self discipline and control

Common disciplinary problems

Attendance related problems Dishonesty related problem Performance related Off the job behavior carelessness

Cause of Indiscipline
Absence of effective leadership Unfair management practices Non-uniform disciplinary actions Divide and rule policy Inadequate attention and delay to personnel problems

Approaches of Discipline

Oral reminder (counseling) Written reminder Decision making leave Opportunity given step (i) n (ii) Suspension

Positive discipline
Progressive discipline approach Red Hot stove rule

Procedure of disciplinary action

Step (i): issuing a letter of charge Step (ii): consideration of explanation Step (iii): show-cause notice Step (iv): full fledged enquiry punishment Step (v): final punishment suspension Step (vi): follow up dismissal

Essentials of Good Disciplinary system

Awareness of rules n criteria Documentation of the facts Prompt response Training of supervisors Impersonal discipline Reasonable penalty

Collective Bargaining

Definition:
Collective bargaining is the procedure by which terms and conditions of employment of workers are regulated by agreements(related to the wages and other conditions of employment) between their bargaining agents and employers. The employer and employee may begin the process with divergent views but ultimately try to reach a compromise, making some sacrifices. The underlying idea of C.B is that the employer and employee relations should not be decided unilaterally or with the intervention of any third party.

Objectives:
The basic objective is to arrive at an agreement on wages and other conditions of employment. To settle the disputes/conflicts related to wages and working conditions. To protect the interest of workers through collective action. To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus. To avoid third party intervention in matters relating to employment.

Features:
Collective Equal strength Flexible Voluntary Continuous Dynamic Power relationship Bipartite process

Types of bargaining
Conjunctive/ distributive bargaining: the parties
try to maximize their respective gains. Your gain is my loss and my gain is your loss. Cooperative bargaining: When both parties realize the importance of survival. For eg. Recession Productivity bargaining: workers wages and benefits are linked to productivity. Composite bargaining: impact of introduction of new tech, automation, work norms, environmental hazards.

Process of Collective bargaining

Identification of problem Collection of data Selection of negotiators Climate of negotiators Bargaining strategy and tactics

Formalizing the agreements

Enforcing the agreement

Essentials for effective bargaining

Unanimity among workers Strength of both the parties Attitudes Representative authority

Job Satisfaction

Definition:
Job satisfaction can simply be defined as the feelings people have about their jobs. It has been specifically defined as a pleasurable (or un pleasurable) emotional state resulting from the appraisal of ones job, an affective reaction to ones job, and an attitude towards ones job. These definitions suggest that job satisfaction takes into account feelings, beliefs, and behaviours. Job satisfaction describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Logic would dictate that the most satisfied (happy) workers should be the best performers and vice versa.

Determinants of Job Satisfaction

Theories of Job Satisfaction

Each theory of job satisfaction takes into account one or more of the four main determinants of job satisfaction and specifies, in more detail, what causes one worker to be satisfied with a job and another to be dissatisfied. Influential theories of job satisfaction include
The Facet Model Herzbergs Motivator-Hygiene Theory The Discrepancy Model The Steady-State Theory

These different theoretical approaches should be viewed as complementary.

The Facet Model

Focuses primarily on work situation factors by breaking a job into its component elements, or job facets, and looking at how satisfied workers are with each. A workers overall job satisfaction is determined by summing his or her satisfaction with each facet of the job. Sample job facets :
Ability utilization: the extent to which the job allows one to use ones abilities. Activity: being able to keep busy on the job. Human relations supervision: the interpersonal skills of ones boss.

Herzbergs Motivator-Hygiene Theory

Every worker has two sets of needs or requirements: motivator needs and hygiene needs. Motivator needs are associated with the actual work itself and how challenging it is.
Facets: interesting work, autonomy, responsibility

Hygiene needs are associated with the physical and psychological context in which the work is performed.
Facets: physical working conditions, pay, security

Herzbergs Motivator-Hygiene Theory

Hypothesized relationships between motivator needs, hygiene needs, and job satisfaction:
When motivator needs are met, workers will be satisfied; when these needs are not met, workers will not be satisfied. When hygiene needs are met, workers will not be dissatisfied; when these needs are not met, workers will be dissatisfied.

The Discrepancy Model

To determine how satisfied they are with their jobs, workers compare their job to some ideal job. This ideal job could be
What one thinks the job should be like What one expected the job to be like What one wants from a job What ones former job was like

Can be used in combination with the Facet Model.

The Steady-State Theory

Each worker has a typical or characteristic level of job satisfaction, called the steady state or equilibrium level. Different situational factors or events at work may move a worker temporarily from this steady state, but the worker will eventually return to his or her equilibrium level.

Potential Consequences of Job Satisfaction

Performance: Satisfied workers are only slightly more likely to perform at a higher level than dissatisfied workers.
Satisfaction is most likely to affect work behaviors when workers are free to vary their behaviors and when a workers attitude is relevant to the behavior in question.

Absenteeism: Satisfied workers are only slightly less likely to be absent than dissatisfied workers. Turnover: Satisfied workers are less likely to leave the organization than dissatisfied workers.