Scene 1

INTRODUCTION TO 
PERSONNEL MANAGEMENT 
AND HRM

Every industrial or commercial organisation comes into existence when a number of

persons join hands. All these people work to achieve some organisational goals. The activities

of various individuals will be synchronised if somebody is there to undertake this work.

Management of every enterprise takes up the responsibility of assigning, supervising and

controlling the activities of persons working there. Management brings human and material

resources together for attaining organisational goals. 
Human resource is of paramount importance for the success of any organisation.

Different individuals exhibit similar and dissimilar patterns of behaviour. They have their

own set of needs, drives, goals and experiences. Management should be aware of their

requirements. Manpower management is the most crucial job. Proper human resource

management will enhance efficiency and performance of people at work.

According to Prof. Jucius. Personnel administration is, "The field management which has to do 
with planning, organising, directing and controlling various operative functions of procuring, 
developing, maintaining and utilising a labour force, such that the objectives for which the company 
is established are attained economically and effectively."

According to this definition, personnel administration is concened with manpower management 
for attaining organisational goals. 
According to French. "Personnel Management is the recruitment, selection, development, 
utilization and accommodation of human resources by organisation

In the views of French, personnel management is concemed with the proper utilisation of 
human resources in the organisation.

According to George R, Tery. Personnel management is concerned with the obtaining and 
maintaining of a satistactory and a satisfied workforce."

Scene 2

1.2 
Introduction to Personnel Management and HRM

Terry has emphasised the view that personnel management is not only concerned with 
employing sufficient number of workers but also satisfying their needs. He has considered the 
supply of workforce and meeting their requirements as an important task of personnel 
management.

According to C.H. Northcott, Personnel management is an extension of general management,
that of promoting and stimulating every employee to make his fullest contribution to the purpose of 
the business."

Northcott treats personnel management as a part of managerial function and assigns it the 
work of promoting employees to contribute their maximum for achieving enterprise 
objectives.

The following points bring out the nature of personnel management:

1. Managing People. Personnel management is concerned with managing people at 
work. It does not manage only organised or unorganised workers in the 
organisation, but everyone working in the enterprise. It covers all persons including 
clerical staff, executives, managers etc.

2. Concerned with Employees. Personnel management deals with employees both as 
individuals as well as in groups. The aim is to motivate people for getting best 
results from them.

3. Helping Employees. The employees are helped to develop their talent fully by 
providing them appropriate opportunities. This will give them job satisfaction and 
may improve their performance at work.

4. Universal Application. Personnel managements may be used everywhere and in 
every type of organisation. It is equally useful in a government, semi-government, 
non-profit organisation as is beneficial to industrial and commercial houses. It is a 
part of general management and has roots extending through and beyond each 
organisation.

5. Continuous Application. Personnel management is continuously used in every 
type of situation. It is not something which may be used here and there or now and 
then. In the words of George Terry,

t cannot be turned on and off like water from a faucet; it cannot be practised only one hour 
each day or one day a week. Personnel management requires a constant alertness and awareness 
of human relations and their importance in everyday operations."

According to Michael J. Jucious, personnel management should aim at:

(a) attaining economically and effectively the organisational goals, 
(b) serving to the highest possible degree the individual goals, and

(c) preserving and advancing the general welfare of the community.

Scene 3

Introduction to Personnel Management and HRM 
1.3 
Personnel Management has been assigned the task of not only helping the organisation 
and its employees but also the society at large. 
The objectives of personnel management are as follows: 
1. Enterprise Objectives. The primary objective of personnel management is to help 
in achieving organisational goals. There will be a need for co-operation fromn 
everyone in the organisation for achieving business goals. This requires that such 
persons should be employed who are capable of taking up the jobs assigned to 
them. They should also be given proper training for undertaking the work 
effectively. This will be ensured by a suitable policy of recruitment, training and 
placement. The satisfaction of employees should be ensured to get their 
wholehearted co-operation. This may be done by looking after their convenience at 
work and offering them financial and other incentives. The enterprise objectives 
will only be achieved if everybody works for its attainment. Employees should be 
motivated to contribute their maximum to the organisational goals.

2. Personnel Objectives. Personnel management aims at giving the material and 
mental satisfaction to each employee in the organisation. This will be possible only 
when employees are provided with proper work environment and job satisfaction. 
the work place should be neat and clean and properly ventilated. Job satisfaction 
will include good remuneration, job security, avenues for promotion, financial and 
other incentives for improving performance. 
3. Social Objectives. Personnel management also aims at preserving and advancing 
general welfare of the community. An enterprise owes a responsibility to the 
society at large. It can serve the society by creating more employment 
opportunities, producing quality goods at cheap rates. It can also help society by 
using productive resources in the best possible way and minimising their waste.

Some people feel that HRM is a dignified word for personnel management. While others 
feel that HRM and personnel management perform the same functions. Both the terms are 
different in outlook or philosophy. Human resource management is not personnel 
management rather the latter is a part of the former.

In the words of Flippo, "Personnel management is the planning, organising, directing and 
controlling of the procurement, development, compensation, integration and maintenance of people 
for the purpose of contributing to organisational, individual and social goals."

Personnel management is mainly concerned with procurement and development of 
personnel for the attainment of organisational goals. Though Flippo talks of individual and 
social goals but the main thrust is to achieve organisational aims with the help of individuals. 
The individual aspirations and goals submerge into organisational goals. The planning, 
organising., directing and controlling of human beings are the other functions of personnel 
management. 
HRM philosophy is to develop people as per their aspirations and individual goals, and

Scene 4

1.4 
Introduction to Personnel Management and HRM

motivate them to help in achieving organisational goals. So human resource is considered as 
an important element in HRM thinking.

Personnel function is headed by personnel manager who is supposed to know rules and 
regulations of personnel practices and he advises top management on personnel policies. 
Personnel management is considered as a separate function like other functions. HRM, on the 
other hand, is a part of every line function. The primary job of every manager is activating 
and human resource management cannot be isolated from activating. So there should not be 
an impression that traditional personnel management function is replaced by HRM. Rather, 
HRM has absorbed the personnel function in refined form.

According to Dale Yoder, the scope of human resource management is very wide. lt 
consists of the following activities 
Setting general and specific management policy for organisational relationships and 
establishing and maintaining a suitable organisation for leadership and cooperation.

Collective bargaining, contract negotiation, contract administration and grievance 
handling. 
Staffing the organisation, finding, getting and holding the prescribed types and

number of workers. 
Aiding in the self 2velopment of employees at all levels by providing opportunities 
for personal development and growth as well as for acquiring requisite skill and

experience. 
. 
Developing and maintaining motivation for workers by providing incentives.

Reviewing and auditing manpower management in the organisation.

Industrial relations research-carrying out studies designed to explain employee 
behaviour and thereby effecting improvement in manpower management.

The Indian Institute of Personnel Management : Personnel Management in India. 
P. 29-30. has described the scope of human resource management into the following aspects:

1. The Personnel Aspect. This aspect of human resource management is concerned 
with the manpower planning, recruitment, selection, placement, induction, transfer.

promotion, 
demotion, termination, training 
and development, layoff and

retrenchment, wage and salary administration, incentives, productivity etc.

2. The Welfare Aspect. The welfare aspect is concerned with working conditions and

amenities such as canteens, creches, rest rooms, lunch rooms, housing, transport. 
education, medical help, health and safety, washing facilities, recreation and

cultural activities etc. 
3. The Industrial Relations Aspect. This aspect is concerned with the companys 
relations with its employees. It includes union management relations, Join

consultation, negotiating, collective bargaining, grievance handling, disciplinary

actions, settlement of industrial disputes etc.

Scene 5

Introduction to Personnel Management and HRM 
1.5

All the above aspects are concerned with human element in industry as distinct from the

HRM has a crucial role to play in the organisation, so following functions can be 
associated with HRM

1. Identifying and Developing Persons. The success of every organisation depends 
upon the quality of persons it employs. HRM helps in spotting right persons for the

right jobs. Persons are prepared for taking up different jobs. Every person may not 
be suitable for every job. Persons are assigned jobs as per their aptitudes. Persons 
are given right type of training so that they are able to develop their potentialities to

the maximum. They are also motivated to give their maximum to the organisation.

2. Retaining Suitable Persons. The rapid development of technology is throwing up 
new challenges everyday. Modernisation of various techniques, computerisation 
and data processing, introduction of microprocessor controlled machines and

revolution in communication techniques have resulted in a demand for trained and

highly skilled persons. HRM not only helps in procuring suitable persons but is also

useful in retaining them. There may be a redundant workforce because of various

developments, efforts be made to offer golden handshake to them.

3. Creating Work Culture. HRM approach emphasises the development of

employees' potentialities and using them for achieving organisations goals. The 
aims and priorities of individual workers are given due weightàge in the schemes of

the organisation. Human resource policy is backed by human values, understanding 
d concern for the welfare of people. Persons in the organisation will reciprocate

by improving their efficiency, motivation, self-co-ordination and greateT co

operation. The work culture in the organisation improves, people feel satisfied and

4. Educating Managerial Personnel. HRM approach will succeed only when 
managerial personnel change their attitude towards the workforce. There is a need 
to educate executives, managers and top management regarding various aspects of

the human resources approach adopted by the organisati

5. Conducting Research. HRM will be successful only if we know the aspirations 
and expectations of various persons working in the organisation. The framing of 
human resource policies, strategies and approaches depends upon the information

6. Developing a Communication System. There is a need to develop downwand.

upward and lateral communication in the organisation. HRM develops a system of

communication where policies of the management are properly communicated to

the lowest level of hierarchy and feedback from lower levels is conveyed to the top

management. Communication system helps in understanding" the view points of

each other and taking up remedial steps, if needed.

Scene 6

1.6 
Introduction to Personnel Management and HRM

Functions of personnel management may be discussed under two broad categories

A) Managerial Functions 
(B) Operative Functions 
1.Planninng 
2. Organising 
3. Directing 
4. Co-ordination 
5. Controlling

1. Procurement 
2. Development 
3. Compensation 
4. Integration 
5. Maintenance

Management aims at getting things done by others. Managerial functions deal with 
planning, organising, directing, co-ordinating and controlling the activities of employees i

1. Planning. Planning involves thinking in advance. It is the determination of 
strategies, 
programmes, 
policies, 
procedures 
to accomplish 
organisational 
objectives. Planning is a difficult task which involves ability to think, to predict, to 
analyse, and to come to decisions. In the context of personnel management, it 
requires the determination of human resource needs.

Planning would involve 
(a) Determining the needs of persons;

(b) Deciding the sources of procuring them;

()Determining training needs of personnel;

(d) Selecting motivators for getting good performance from employees.

The first step in planning is the determination of human resource needs. The 
estimations should be based on the requirements of different departments. There 
should be sufficient number of persons in the organisation so that all jobs are 
properly performed. Not only present but also future needs of persons should be 
properly determined.

After determining personnel needs, there should be a decision to employ them. 
Right type of persons should be employed for getting good performance from them 
The training needs of workers should also be pre-determined so that proper steps 
are taken to improve right type of training. To motivate workers for improving their 
performance a number of financial and non- financial incentives should be initiated.

Scene 7

Introduction to Personnel Management and HRM 
1.7

2. Organising. Organisation is a process of allocating the task among its members for 
achieving organisational objectives. This is done by designing the structure or 
relationship among jobs, personnel and physical factors. The assignment of tasks 
and fixing of responsibilities will be the function of personnel management. It 
decides who should do what. Who is responsible to whom ? These decisions will 
help in smooth working of the organisation. Everybody will be assigned the task 
according to his capacity and calibre. There will be a system assessing pertormance 
and communicating it to the appropriate persons. Setting up a good organisational 
structure where everybody is clear about his role is the responsibility of personnel 
management. 
3. Directing. It is the basic function of managerial personnel. Directing means telling 
people to do a particular work. It does not mean only issuing orders to employees 
but it also ensures that they perform as per the directions. The employees are also 
given instructions for carrying out their task. The orders and instructions should be 
clear and precise so that these are obeyed properly. 
Motivating employees to accomplish their task is also a part of directing function. 
The circumstances, psychology, economic and social, help in selecting the 
techniques of motivation. Though all these decisions are taken by the top level 
management but personnel departmentis consulted at every stage. The 
effectiveness of various plans and policies for motivating employees is also 
undertaken by personnel department.

4. Coordinating. Organisational objectives will be achieved only if group activities in 
the enterprise are coordinated effectively. There may be a problem of each group or 
department trying to pursue its own goals without bothering about overall 
objectives. A coordinated approach will help in achieving common goals.

Coordination of personnel is required at all levels of management. Personnel 
department coordinates the task of developing, interpreting and reviewing personnel 
policies and programms related to employees. The final decisions may be left to 
line managers but personnel department makes suggestions for improvements.

5. Controling. Controlling is the act of checking, regulating and verifying whether 
everything occurs as per the standards set and plans adopted. The performance of 
persons is regularly reviewed to find out whether it is going according to the 
standards or not. In case performance is low then steps are taken to improve it in 
future. Controlling function involves reviewing performance and taking corrective

These functions are related to the procuring, developing, compensating, integrating and 
maintaining a work-force for attaining organisational goals. These functions are also known 
as service functions.

Various operative functions are discussed as follows

1. Procurement. This function relates to the procuring of sufficient and appropriate 
number of persons for carrying out business work. The needs of the organisation

Scene 8

1.8 
Introduction to Personnel Management and HRM

should be assessed to find out the requirements of persons, Besides number, the 
procurement of suitable persons is also essential. For this purpose, the requirements 
of various jobs should be studied for fixing the educational and technical experience 
of persons expected to man those jobs. Only the right type of persons will be able to 
give satisfactory results.

2. Development. The development function is concerned with the development of 
employees by increasing their skill and proficiency in work. The persons are given 
proper training through various methods so that their performance is better in 
undertaking the jobs. Proper job description will enable the employees to know 
their weak points in performing various jobs. Training programmes are made 
suitable to cover up deficiencies in workers' performance. 
Sometimes employees are given on-the-job training to acquaint them with real work 
situation. There can be lectures, discussions, demonstrations to improve the skills of 
employees To give wide experience of various jobs a method of rotation may also 
be followed. In this method employees are put on various jobs in rotation so that 
they have the experience of all of them. All these methods are followed to improve 
the skill of employees for making them suitable for the jobs. 
3. Compensation. It is concerned with securing adequate and equitable remuneration 
to persons working in the organisation. Job analysis will enable in fixing the 
remuneration for various jobs. The needs of the jobs and qualifications of persons 
who will take up those jobs should be taken into consideration while fixing 
remuneration. If the employees are paid less than they should have got, they may 
leave the job at an earliest opportunity. So compensation should be fixed in such a 
way that it is able to attract and retain suitable persons in the organisation.

4. Integration. Integration is concerned with the attempt to effect reconciliation of 
individual, organisation and social interest. It involves infusing among employees a

sense of belongingness to the enterprise. The employees should identify their 
personal interest with that of the organisation. They should have a feeling that 
everything good of the enterprise will also be in their interest. This will bring about 
harmony of interests both of employees and the organisation.

There should be proper communication channel at all levels. The grievances of 
employees should be redressed at the earliest. This will help in creating good 
industrial relations integrating them.

5. Maintenance. This function deals with sustaining and improving conditions that 
have been established. Better conditions of work should be maintained at all times. 
The employees will feel happy to work under such conditions. These conditions 
include establishment of health, sanitation and safety standards. If working 
conditions deteriorate, then employees will be prompted to leave the enterprise. 
Personnel department is put in charge of providing and maintaining healthy and 
conducive working conditions in the enterprise. 
6. Emerging Issues. Some other important issues that can motivate people to give 
their best in a dynamic and ever changing environment are as follows

Scene 9

Introduction to Personnel Management and HRM 
1.9

Personnel Records. To have tangible record of what is happening in the 
organisation and to formulate appropriate HR policies and programmes.

HR Audit. To measure the effectiveness of HR programmes and to determine 
what should or should not be done in future. 
.HR Research. To evaluate the effectiveness of HR policies and practices and 
to develop more appropriate ones.

HR Accounting. To measure the cost and value of the human resources to the 
organisation. 
HR Information System. To improve the efficiency with which HR data is 
compiled. 
Stress and Counseling. To find out the ways and means to promote the 
physical and mental well being of employees through proper counseling and 
employee development programmes. 
International HRM. To help in the coordination of production, sales and 
financial operations on a world-wide basis. To perform functions like 
relocation, orientation and training of employees to help them in adapting 
themselves to a new and different environment outside their own country.

An organization may have various levels of management. The term level' involves 
persons arranged in a series. Thus, levels of management suggest the arranged managerial 
positions in an organization. The number of levels of management in an organization depend 
upon its size, technology, and the range of production. Broadly speaking, there are two levels 
of management, viz., administrative management and the operative 
Administrative management is concerned with "thinking function' such as 
policy 
determination, planning and fixation of standards. Operative management, on the other hand. 
is concerned with the 'doing functions' which include use of men, materials, machinery and 
money, implementation of policies laid down by administrative management and directing 
operations to achieve the objectives of the organisation.

Administrative Management 
Operative Managenment

Performs thinking functions 
Performs doing functions

-Use of various factors of production 
-Policy detemination

Plannin production 
-Implementation of policies 
-Directing operations 
-
Fixation of standards

But in real life it is very difficult to draw any clear cut line of separation between 
thinking functions and doing functions. For example, the executive director of a joint-stock 
company may be involved in the policy determination as a member of the Board of Directors 
but in his executive capacity, he has to see that the decisions are implemented.

Scene 10

1.10 
Introduction to Personnel Management and HRM

There is a change in thinking about various levels of management with the advent of a

modern school of thought. This school believes that both management and administration are

more or less synonyms. 
Modern school designates the levels of management as under

(2) Middle Order Management 
(1) Top Management 
(3) Lower Level Management 
(4) Supervisory Management

There is a need to distinguish
various levels of management. The designation, status

and position held by different personnel in the organization help in distinguishing different

The main significance of levels is that they determine authority relationship in an

organisation. On the basis of authority and responsibility we can identify three levels of

management: 
() Top management 
consisting of owners, the Board of Directors, Managing

Director, the Chief Executive and the General Manager.

(11) Middle 
Management consisting of Functional Head; such as Production

Manager, Marketing Manager, Financial Controller, etc., and Divisional and

Sectional Officers working under Functional Heads.

(ii) Lower Level 
or Operating Management Consisting of Superintendents,

Supervisors and Foremen. 
The three levels of management are shown in the following figures

Middle Management 
Functional Heads such as Production, Marketing. 
Finance, Personnel/HR (Senior Middle Management)

Divisional and Sectional Officers, Deputy Managers, 
Branch Manages (Junior Middle Management)

Scene 11

Introduction to Personnel Management and HRM 
1.11 
ORGANISATION OF PERSONNEL DEPARTMENT

In an organisation, personnel department is a staff department. But within personnel 
department itself, the structure is usually of the line type. Personnel manager, being the head 
of the department, has a line authority within the department. Status of the personnel 
department in the total organisational structure depends on whether a unit is small or large. 
Organisation Structure of Personnel Department in Small Enterprises

By small enterprise is meant the enterprise which employs less than one thousand 
employees. In such enterprises personnel department may or may not exist. Services of 
outsiders who specialise in maintaining accounts and records relating to provident fund, 
pension and other statutory requirements are retained for a fee. Alternatively, a new placed 
employee may be entrusted with the task of attending to these function. In fact, it was this 
arrangement, which was followed in the past, irrespective of the size of the organisation. 
Earlier, personnel as an activity was seen as a necessary but unimportant part of the 
organisation. Fortunately, things have changed for the better and the status of the personnel 
department has improved enormously over the years. An idea of the organisation of personnel 
department in a small enterprise can be drawn from the following figure:

Production Manager 
Sales Manager 
Office Manager 
Accounts Manager

Personnel Department in a Small Enterprise. 
Organisation Structure of Personnel Department in Large Scale Enterprise

A large scale enterprise will have a manager/director heading the personnel department. 
His status will be equal to that of any executive. The following figure shows this structure.

Director Production 
Director Finance 
Director Personnel/HRM 
Director Marketing Director R&D

Personnel Department in a Large Scale Unit. 
This arrangement holds good when the company has a single unit. Where a company has 
multiple plants located in different parts of the country, there may be a centralised personnel 
department at the head office and each plant will have separate personnel departments. 
Routine activities relating to each plant are handled by the personnel department attached to 
the work whereas the broad policies, matters concerning executives etc. are handled by the 
central department.

Coming to the composition of the personnel department, it depends on the scale of 
operations and attitudes of the top management towards its personnel.

Scene 12

1.12 
Introduction to Personnel Management and HRM 
PERSONNEL DEPARTMENT IN LINE ORGANISATION 
organisations 
there is uninterrupted line of authority and responsibility running 
rough the management hierarchy. Line relationship generally exists between a superior and 
Subordnate. Managers identified as line are not subject to command by staff personnel. In 
case of disagreement between line and staff. line manager has the nght to make nnal 
operating decisions.

e 
termal organisation structure of personnel department in line type of organisation's 
as shown ia the following figure:

Personnelempioyment officer 
Training development officer 
Wage and salary officer 
Weltare offica

Personnel Department in Line Organisation. 
PERSONNEL DEPARTMENT IN FUNCTIONAL ORGANISATION

According to McFarland, "A functional manager helps serve. investigate. plan. solve 
special problems. support line effort. provides ideas and has special expertise." In functional 
structure, all activities in the company are grouped according to certain functions like 
production. marketing. finance. personnel etc. Each function is put under the charge of 
functional specialist. Functional authority is advisory. which means that the functional 
specialist recommends action or altemative actions to ine managers. 
Every functional head has functional authority 
over other departments and every 
employee reports to several functional heads as shown on the following figure :

WAGE AND 
SALARY 
WELFARE 
OFFICER 
EIMPLUMENT 
OFFICER 
OFFICER

CLERK 
CLERK 
CLERK 
CLERN 
Personnel Department in Functional Organisation. 
PERSONNEL DEPARTMENT IN LINE AND STAFF ORGANISATION 
Large enterprises generally 
nave organisation structures with both line and sta

Scene 13

1.13 
Introduction to Personnel Management and HRM

executives. Line and staff structure combines the advantages of both line organisation and

functional organisation. Under this system, staff positions are attached to line executives. 
Personnel department provides advice and assistance on personnel matters to all departments

without undermining unity of command. In the following figure, line authority is shown by a

straight line and staff authority by a dotted line.

MARKETING 
MANAGER 
FINANCE 
MANAGER 
PRODUCTION 
MANAGER

Personnel Department in Line and Staff Organisation.

Thus, the relationship between chief executive and personnel manager is both line and 
staff. The relationship between all functional managers inter se is functional in nature.

PERSONNEL DEPARTMENT IN A DIVISIONALISED 
ORGANISATION STRUCTURE

The role of a personnel manager attached to the divisional office/branch office of a 
decentralised organisation is particularly a difficult one. In a divisional organisation structure, 
personnel staff are attached to divisional officers. The personnel officer at divisional level is 
responsible to the local divisional manager. He is subordinate to the personnel manager at the 
head office. In case of rift between personn« 
be solved at the head office. The main benefit of divisionalisation is that the performance of 
various divisions can be compared, but on the other hand, it results in duplication of staff and

officer and divisional manager, the probem can

PersonnelVofficer 
Personne/officer 
Personnel/officer 
PersonneVofficer 
(Northern Division) 
(Southern Division) 
(Eastern Division) 
(Western Division)

Personnel Department in Divisional Structure.

PERSONNEL DEPARTMENT IN A MATRDX ORGANISATION 
STRUCTURE

In a matrix organisation structure, every employee has two superiors i.e. they are under 
dual authority. One chain of command is functional and the other chain of command is a

Scene 14

1.14 
Introduction to Personnel Management and HRM 
POect team. Hence, matrix structure is referred to as a multi command system, both vertical 
and horizontal dimension. Thus, the team of employees of personnel department have two 
uperiors i.e. personnel manager (vertical dimension) and project manager (horizont�l 
nension). Both dimensions of structure are permanent and balanced, with power held 
Cqually by both functional and a project manager. Matrix structure is suitable when 
organisational tasks are uncertain, complex and highly interdependent or when an 
organisation has to cope with more than one function or project. 
********************* 
CHIEF EXECUTIVE

ENGINEERING 
PERSONNEL 
MARKETING 
FINANCE 
PROJECT A 
MANAGER

ENGINEERING 
PERSONNEL 
MARKETING 
FINANCE

Personnel Department in a Matrix Organisation. 
ROLE OF PERSONNEL MANAGER/DEPARTMENT 
Basically, the job of personnel manager is the management of personnel i.e. human 
resources. He generally acts in an advisory capacity, providing information, offering 
suggestions, counselling and assisting all the line managers in the organisation and is not 
responsible for the end results. However, within his own department, the personnel manager 
performs a line function by directing the activities of his subordinates and in service areas 
like canteens etc.

The role of personnel manager in the organisation can be explained as follows: 
1. Advisory Role. The personnel department has functional relationship with other 
departments/managers in the total organisation. As a specialist, the personnel 
manager advises the heads of different functional departments on various aspects of 
human resource management e.g. manpower planning, recruitment, selection. 
training, appraisal, compensation etc. He represents management in many of the 
relationships that affect the organisation as a whole. He is also responsible for 
conveying the problems, grievances or simply opinions of workers to management. 
The personnel manager should provide suggestions and assistance very tactfully, in 
order to win the confidence and cooperation of all the line managers. Statr 
assistance is likely to be effective when it is wanted rather than imposed. He has to 
persuade the line managers to work with staff specialists and not against them. 
2. Counselling Role. The personnel manager plays the role of a counseller with the 
employees also. He discusses the various problems of the employees relating

Scene 15

Introduction to Personnel Management and HRM 
1.15

work, career, their supervisors, colleagues, health, family, financial, social etc. and 
suggests them means to minimise and overcome those problems.

3. Role ofa Change Agent. Personnel manager works as a change agent regarding 
personnel areas. To be an effective consultant, he should be familiar with the needs 
and changing environment of the business. He should initiate and spearhead 
necessary improvement in human resource policies. As a consultant, he can provide

necessary infrastructure and support for organisation development. He helps in 
introducing and implementing major institutional changes in the organisation.

4. The Conscience Role. While playing the conscious role, the personnel manager 
informs the management about the humanitarian approach. He should advise the 
management about the moral and ethical obligations towards the employees.

5. Mediator's Role. The personnel manager often acts as a mediator in the 
organisation. Whenever there is a friction between two employees, two groups of 
employees, superiors and subordinates and employees and management, the 
personnel manager has to act as a mediator, so as to maintain industrial harmony.

6. Liaison Role. The personnel manager acts as a representative of the organisation so 
as to give an overall picture of the organisational operations to the employees 
particularly in case of industrial disputes or grievance redressal. Similarly, he acts 
as employees' representative in representing their problems to the management 
particularly in concerns where trade unions are not there.

7. Legal Role. The personnel manager plays this fire fighting role of grievance 
handling, settlement of disputes, handling disciplinary cases, collective bargaining. 
joint consultation, interpretation and implementation of various labour laws. 
contacting lawyers regarding court cases, filing suits in labour courts, industrial 
tribunals, civil courts and the like.

8. Welfare Role. Under Section 49 of the Factories Act, a welfare officer has to be 
appointed in specific factories. Personnel manager is expected to be the welfare 
officer of the company. As a welfare officer, he provides and maintains (on behalf 
of the company) conteens, hospitals, creches, educational institutions, clubs. 
libraries, conveyance facilities, cooperative credit societies, consumer stores etc.

9. Controller's Role. The personnel manager assists the line managers in effective 
implementation of personnel policies and programmes. His advice and service i 
essential for monitoring and controlling the progress. As an arm of the top 
management, the personnel manager ensures that the personnel policies and 
procedures approved and adopted by the management are being consistently carri

out in all the departments 
10. Human Relations Role. Personnel manager is supposed to be an expert in human 
relations. He is expected to improve productivity by fulfilling the economic, social 
and psychological needs and aspirations of employees. Personnel manager also has 
to meet the challenge of a fast changing post industrial society.

Thus, in actual practice, a personnel manager is found handling jobs of various kinds.

Scene 16

-1.16 
Introduction to Personnel Management and HRM 
BRGONOMICs AND HR ENVIRONMENT 
cieonomics is the study of work and working conditions in order to improve the 
ciency of people working in the organisation. Environment is a very important variable in 
C ikM. Organisations are greatly influenced by changes taking place in internal as well as 
CXtermal environment. Organisations of 21st century cannot expect to be successful unless 
yunderstand their environment and realise how it influences the HR functions in the 
Organisation. Today's business environment is characterised by continuous changes and 
ntense competition. To survive in such an environment, an organisation has to become 
proactive and not just remain reactive to the environment. Reactive strategy serves the 
pupose only when the environment is fairly stable and competition is less severe. Both of 
uicse nave become things of the past, therefore, management has to become proactive to the 
environment.

CHALLENGEs AND RELEVANCE OF HRM 
Human resource managers have to face more problems in the management of labour 
because of the changing business environment. All the elements of business environment viz 
sOcio-cultural, economic, technological and political are continuously changing, as a result 
the nature and scope of human resource management is also changing. In the initial stages of 
development, it was known as labour relations, then it became personnel management and 
recently it has changed to human resource development. The human resource managers may 
find themselves obsolete in future if they do not update themselves. The human resource 
managers are acquiring status and power, particularly in large organisations. There was a 
time, when personnel function was considered as a dumping ground for executive misfits, but 
now the position of personnel manager is considered next to the chief executive. 
Some of the important changes which are taking place in the field of human resource 
management are as follow:

1. Increase in the size of workforce. With the increase in the size of the 
organisations and the emergence of multinational corporations in the country, the 
number of people working in the organisations has also increased. The management 
of the increased workforce poses a number of problems and challenges for the 
human resource managers as the new workforce is very conscious of its rights. 
2. Chaging composition of workforce. The composition of the workforce is also 
changing and creating new problems for the human resource managers. In future. 
the minority groups and women will emerge as a significant component of 
workforce. Due to easy access to educational and employment opportunities, the 
scheduled castes, scheduled tribes and other minority groups are fast becoming an 
important source of manpower in the organisations. The managers will have to take 
into account the availability of talent in these groups. The number of working 
women is also increasing day by day. An increased number of married female 
employees and working mothers bring new problems before the human resource 
managers. Technological progress in the country is bringing more white collar 
emplovees in the organisation which will make the job of human resource managers
more challenging.

Scene 17

Introduction to Personnel Managgement and HRM 
1.17 
3. Increase in education levels. Technological progress and spread of educational 
institutions have increased the level of education and made the employees more 
mobile. Educated workers are more aware of their rights especially their higher

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