Wednesday, November 19, 2008

Functions of Personnel Managers

The functions of a personnel manager can be broadly classified into two categories :-

1. Managerial functions
2. Operative functions

Managerial functions

The managerial functions of a personnel manager have an impact on the operative functions as well. They are enumerated below :-

Planning – this involves formulating the future course of action. Planning includes determining in advance the personnel programs and changes required that would contribute to the achievement of organizational goals.

Organising – it involves establishing an intentional structure of roles for people in an organization. Structural considerations such as the chain of command, division of labour, and assignment of responsibility are party of the organizing function. The organizing function establishes relationships among employees so that they can contribute collectively towards the attainment of an organisation's goals.

Staffing – This is the process of obtaining and maintaining capable and competent personnel in various positions at all levels. It broadly encompasses manpower planning, recruitment, placement, induction and orientation, transfer, career progression, promotion and separation.

Directing – it involves directing all the available resources towards the common organizational goals. Thus, direction is a vital management function, which ensures maximum employee contribution and also helps in establishing sound industrial and human relations. It also involves coordination between different departments.

Controlling – it invoves the measurement of performance against goals and plans, identifies deviations and by placing the process back on track, helps in the accomplishment of plans.

Operative functions

These can be classified into four broad areas, employment, development, compensation and employee relations.

Employment – it involves procuring and employing individuals with suitable knowledge, skills, experience and aptitude necessary to perform various jobs. It includes functions such as job analysis, human resource planning, recruitment, selection, placement and induction.

1. Job analysis involves preparing job description, job specification, job requirements and employee specification and providing the guides, plans and basis for job design and redesign.
2. Human resource planning involves forecasting the human resource requirements of an organization and the future supply of human resources. It also involves assessing the possibility of developing the human resources to match the requirements.
3. Recruitment is the process of seeking and attracting prospective candidates against a vacancy in an organization.
4. Selection is the process of identifying and establishing the credentials of a candidate for a job to ensure success.
5. Placement is decided based on the needs of the organization.
6. Introducing a new employee to the organization, its business, the organization culture, its values and beliefs, practices and procedures is termed as induction.

Training and development

This process aims to train and develop employees to improve and update their knowledge and skills, so as to help them perform their jobs better. The process also includes developing the attitudes, beliefs and values of the employees to match the organizational needs. This comprises of performance appraisal, training, management / executive development, career planning and development.

1. Performance appraisal is the process of evaluating the performance of an employee on the job and developing a plan for improvement.
2. Training is the systematic development of the knowledge, skills and attitudes required to perform a job.
3. Development is the concept of developing the employees in an organization to meet future changes and challenges.
4. Career planning and development refers to identifying one's career goals and formulating plans of reaching them. It attempt to harmonize an individuals career aspirations with organizational needs.


It is governed by the principle of rewarding an employee extrinsically during and after the course of his job for his contributions to the organization adequately, equitably and in a fair manner. It encompasses salaries, incentives, bonus and fringe benefits. This function comprises of Job evaluation, wage and salary administration, incentives, bonus and fringe benefits.

1. Job evaluation is the systematic determination of the value of each job in relation to other jobs in the organization.
2. The process of formulating and operating a suitable wage and salary program is known as wage and salary administration.
3. Incentives are the rewards an employee earns in addition to regular salary based on his performance or of the collective performance.
4. Bonus is primarily a share in the surpluses and is often directly related to the organization performance.
5. Fringe benefits are monetary and non-monetary benefits including disablement benefits, housing facilities, canteen facilities, conveyance facilities, educational facilities, recreational facilities, medical and welfare facilities, post retirement benefits, etc.

Employee relations & services

This function deals with employees as a social group that contributes to the organization, it includes –

1. Maintaining employee records, analyzing them and developing information needed for managerial decision making.
2. Increasing employee productivity
3. Keeping the employees satisfied and motivated
4. Maintainig a healthy and effective human organization.
5. Counselling services and developing employees into complete individuals and responsible citizens.
6. Developing policies, rules, guidelines and procedures relating to employee behaviour and ensuring their implementation and observance.
7. Developing team building, team management and leadership skills in employees.
8. Developing a fast and suitable grievance management system to redress grievances.
9. Compliance with labour laws.
10. Personnel research.
11. Enhancing the quality of worklife and personal life of the employees.

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