Functions of Personnel Management

Functions of Personnel Management

Following are the four functions of Personnel Management:

1. Manpower Planning
2. Recruitment
3. Selection
4. Training and Development

1. Manpower Planning

Manpower Management, also known as Human Resource Planning, consists of putting the right number of people, the right kind of people in the right place, the right time, doing the right things they are ideal for achieving the organization's goals. In the industrialization context, human resource management has an important place. Human resource management must be a process method and will be done in a fixed procedure. The method shall be as follows:

1. Analyzing the current manpower inventory
2. Making future manpower forecasts
3. Developing employment programs
4. Design training programs

Steps in Manpower Planning

Analyzing the current manpower inventory- Before a manager makes a forecast of future manpower, the current manpower status has to be analyzed. For this, the following things have to be noted- Type of organization Number of departments Number and quantity of such departments Employees in these work units Once these factors are registered by a manager, he goes for future forecasting.

2. Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units.
   The Manpower forecasting techniques commonly employed by the organizations are as follows:
   1. Expert Forecasts: This includes informal decisions, formal expert surveys, and the Delphi technique.
   2. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using the base year as a basis), and statistical analysis (central tendency measure).
   3. Work Load Analysis: It is dependent upon the nature of workload in a department, in a branch or in a division.
   4. Workforce Analysis: Whenever production and time have to be analyzed, due allowances have to be made for getting net manpower requirements.
   5. Other methods: Several Mathematical models, with the aid of computers, are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis.
3. Developing employment programs- Once the current inventory is compared with future forecasts, the employment programs can be framed and developed accordingly, which will include recruitment, selection procedures, and placement plans.
4. Design training programs- These will be based upon the extent of diversification, expansion plans, development programs, etc. Training programs depend upon the extent of improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes key to all managerial functions.
2. Efficient utilization- Efficient management of personnel becomes an important function in the industrialization world of today. The setting of large scale enterprises requires the management of large scale manpower. It can be effectively done through a staffing function.
3. Motivation- Staffing function not only includes putting right men on the right job, but it also comprises of motivational programs, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans become an integral part of the staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the workforce which leads to co-operation and better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in the best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and its related activities ( Performance appraisal, training, and development, remuneration)

The need for Manpower Planning

Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programs. Manpower Planning is advantageous to the firm in the following manner:

1. Shortages and surpluses can be identified so that quick action can be taken wherever required.
2. All the recruitment and selection programs are based on manpower planning.
3. It also helps to reduce the labor cost as excess staff can be identified and thereby overstaffing can be avoided.
4. It also helps to identify the available talents in a concern and accordingly training programs can be chalked out to develop those talents.
5. It helps in the growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in the best manner.
6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

2. Types of Recruitment

1. Internal Recruitment - is a recruitment that takes place within the concern or organization. Internal sources of recruitment are readily available to an organization. Internal sources are primarily three - Transfers, promotions, and Re-employment of ex-employees.
   Internal recruitment may lead to an increase in employee’s productivity as their motivation level increases. It also saves time, money and efforts. But a drawback of internal recruitment is that it refrains the organization from new blood. Also, not all the manpower requirements can be met through internal recruitment. Hiring from outside has to be done.
   Internal sources are primarily 3
   1. Transfers
   2. Promotions (through Internal Job Postings) and
   3. Re-employment of ex-employees - Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. There are situations when ex-employees provide unsolicited applications also.
2. External Recruitment - External sources of recruitment have to be solicited from outside the organization. External sources are external to a concern. But it involves a lot of time and money. The external sources of recruitment include - Employment at the factory gate, advertisements, employment exchanges, employment agencies, educational institutes, labor contractors, recommendations, etc.
1. Employment at Factory Level - This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. This kind of recruitment is applicable generally where factory workers are to be appointed. Some people keep on soliciting jobs from one place to another. These applicants are called as unsolicited applicants. These types of workers apply on their own for their job. For this kind of recruitment, workers have a tendency to shift from one factory to another and therefore they are called “bad” workers.
2. Advertisement - It is an external source which has got an important place in the recruitment procedure. The biggest advantage of advertisement is that it covers a wide area of the market and scattered applicants can get information from advertisements. The medium used is Newspapers and Television.
3. Employment Exchanges - Certain Employment exchanges are run by the government. Most of the government undertakings and concerns employ people through such exchanges. Nowadays recruitment in government agencies has become compulsory through employment exchange.
4. Employment Agencies - Certain professional organizations look towards the recruitment and employment of people, i.e. these private agencies run by private individuals supply required manpower to needy concerns.
5. Educational Institutions - There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. This kind of recruitment done through such educational institutions is called Campus Recruitment. They have special recruitment cells which help in providing jobs to fresh candidates.
6. Recommendations - Certain people have experience in a particular area. They enjoy goodwill and a stand in the company. There are certain vacancies which are filled by recommendations of such people. The biggest drawback of this source is that the company has to rely totally on such people which can, later on, prove to be inefficient.
7. Labour Contractors - These are the specialist people who supply manpower to the Factory or Manufacturing plants. Through these contractors, workers are appointed on a contract basis, i.e. for a particular period. Under conditions when these contractors leave the organization, such people who are appointed have to also leave the concern.

3. Employee Selection Process

Employee Selection is the process of putting the right men on the right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection can be done only when there is effective matching. By selecting the best candidate for the required job, the organization will get the quality performance of employees. Moreover, an organization will face less absenteeism and employee turnover problems. By selecting the right candidate for the required job, the organization will also save time and money. Proper screening of candidates takes place during the selection procedure. All the potential candidates who apply for the given job are tested.

But selection must be differentiated from recruitment, though these are two phases of the employment process. Recruitment is considered to be a positive process as it motivates more candidates to apply for the job. It creates a pool of applicants. It is just the sourcing of data. While the selection is a negative process as the inappropriate candidates are rejected here. Recruitment precedes selection in the staffing process. Selection involves choosing the best candidate with the best abilities, skills, and knowledge for the required job.

The Employee selection Process takes place in the following order-

1. Preliminary Interviews- It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid down by the organization. The skills, academic and family background, competencies and interests of the candidate are examined during the preliminary interviews. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile, and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.
2. Application blanks- The candidates who clear the preliminary interview are required to fill the application blank. It contains a data record of the candidates such as details about age, qualifications, the reason for leaving the previous job, experience, etc.
3. Written Tests- Various written tests conducted during the selection procedure are aptitude tests, intelligence tests, reasoning tests, personality tests, etc. These tests are used to objectively assess the potential candidate. They should not be biased.
4. Employment Interviews- It is a one to one interaction between the interviewer and the potential candidate. It is used to find whether the candidate is best suited for the required job or not. But such interviews consume time and money both. Moreover, the competencies of the candidate cannot be judged. Such interviews may be biased at times. Such interviews should be conducted properly. No distractions should be there in the room. There should be honest communication between the candidate and the interviewer.
5. Medical examination- Medical tests are conducted to ensure the physical fitness of the potential employee. It will decrease the chances of employee absenteeism.
6. Appointment Letter- A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter.

4. Training of Employees - Need and Importance of Training

Training of employees takes place after orientation takes place. Training is the process of enhancing the skills, capabilities, and knowledge of employees for doing a particular job. The training process molds the thinking of employees and leads to the quality performance of employees. It is continuous and never-ending in nature.

Importance of Training

Training is crucial for organizational development and success. It is fruitful to both employers and employees of an organization. An employee will become more efficient and productive if he is trained well.

Training is given on four basic grounds:

1. New candidates who join an organization are given training. This training familiarizes them with the organizational mission, vision, rules and regulations and the working conditions.
2. The existing employees are trained to refresh and enhance their knowledge.
3. If any updations and amendments take place in technology, training is given to cope up with those changes. For instance, purchasing new equipment, changes in the technique of production, computer implanted. The employees are trained about the use of new types of equipment and work methods.
4. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher-level job.

The benefits of training can be summed up as:

1. Improves the morale of employees- Training helps the employee to get job security and job satisfaction. The more satisfied the employee is and the greater is his morale, the more he will contribute to organizational success and the lesser will be employee absenteeism and turnover.
2. Less supervision- A well-trained employee will be well acquainted with the job and will need less supervision. Thus, there will be less wastage of time and effort.
3. Fewer accidents- Errors are likely to occur if the employees lack the knowledge and skills required for doing a particular job. The more trained an employee is, the less are the chances of committing accidents in the job and the more proficient the employee becomes.
4. Chances of promotion- Employees acquire skills and efficiency during training. They become more eligible for the promotion. They become an asset to the organization.
5. Increased productivity- Training improves the efficiency and productivity of employees. Well trained employees show both quantity and quality performance. There is less wastage of time, money and resources if employees are properly trained.

Ways/Methods of Training

Training is generally imparted in two ways:

1. On the job training- On the job training methods are those which are given to the employees within the everyday working of a concern. It is a simple and cost-effective training method. The proficient, as well as semi-proficient employees, can be well trained by using such training methods. The employees are trained in an actual working scenario. The motto of such training is “learning by doing.” Instances of such on-job training methods are job-rotation, coaching, temporary promotions, etc.
2. Off the job training- Off the job training methods are those in which training is provided away from the actual working condition. It is generally used in the case of new employees. Instances of off the job training methods are workshops, seminars, conferences, etc. Such a method is costly and is effective if and only if a large number of employees have to be trained within a short period. Off the job training is also called vestibule training,i.e., the employees are trained in a separate area( maybe a hall, entrance, reception area,etc. known as a vestibule) where the actual working conditions are duplicated.