For enabling the Personnel Manager to fulfill these objectives the top management has to create some conditions as the pre-requisites. These are described below.

1. Existence of capable people in the organization picked up on the basis of their merits and not on other considerations. If people are selected on other considerations they will be misfits, creating all sorts of problems for the organization and other employees. For instant life insurance rates company, they need to select term life insurance agents with their merits. Only qualifies people can give them good business. 
2. Plans of effective utilization of efforts and potentialities of individuals and groups for appreciation of work well done and for future advancement and training. If people are left on their own, nothing will be achieved. They have to be provided with necessary opportunities and means, and given encouragement.

 We will discuss some other factors in our next post.

5. To recognise and satisfy individual needs and group goals by offering and adequate and equitable remuneration, economic and social security in the form of monetary disability, death, unemployment etc. With adequate compensation and security, employees work willingly and cooperate to achieve an organisation’s goals.

6. To maintain high morale and better human relations inside an organisation by sustaining and improving the conditions so that employees may stick to their hob for a longer period.

Considering these objectives, you will perhaps, agree that the objectives are in the best interests of all those to whom management is responsible i.e. owners of enterprise, the community, the consumers of its goods and services, and members of the organisation itself, including groups who may belong to unions. In our next post we will discuss that why personnel manager of any organization need to create some conditions and how?

1. To achieve an effective utilization of human resources for the achievement of organization goals. Term life insurance rates provider need to manage all his agents in effective way to achievement organization goals.

2. To establish and maintain an adequate organizational structure and a desirable working relationship among all the members of an organization by dividing the organizational tasks into functions, positions, jobs and by defining the responsibility, accountability, authority for each job and its relation with other jobs/personnel in the organization. For example, a blinds company who is selling vertical blinds and roman shades blinds online, for them coordination of different departments is must. Inter company relation and intra company relation management is important part of personnel management.

3. To secure the integration of the individuals and groups with the organization by reconciling individual/group goals with those of an organization in such a manner that the employees feel a sense of involvement, commitment and loyalty towards it. The absence of this integration will allow development of frictions, personal jealousies and rivalries, prejudices, personnel conflicts, cliques, factions, favoritism and nepotism. These will produce inefficiency and result in failure of the organization.

4. To generate maximum development of individuals/groups within an organization by providing opportunities for advancement to employees through training and job education or by offering transfers or by providing retraining facilities. For example, a term life insurance rates providing company, for management they need to keep weekly target for their agents in such a way that term life insurance agents can achieve it easily.

It covers all levels of personnel: It refers not only to labor or, what you may call ‘blue collared’ employees, like craftsmen, foremen, operatives and labourers, but also the ‘white collared’ employees, like professional and technical workers, managers, officials, clerical workers, sales workers, etc.

The concern for the employees is to help them: The employees are helped to develop their potentialities and capacities to the full so that they can derive the greatest satisfaction from their work.

It is inherent in all organisation: It is as useful and effective in government departments and non-profit organizations as in a business organisation. Moreover, it covers all types of functional management such as production management, financial management, marketing management etc.

It is of a continuous nature: Personnel management requires constant alertness and awareness of human relations and their importance in everyday operations.

It attempts at getting the willing cooperation of the people for the attainment of the desired goals: This is necessary because work cannot be effectively performed in isolation without the promotion and development of an esprit de corps.

However this is the most difficult of all the management tasks in an organization. Some people also say that ‘management’ means ‘managing managing men tactfully’. One often comes into contact with the personnel department of one’s office, for example, for selection, placement, training, discipline, grievance handling, wage administration, dismissal, etc. However, there are certain aspects of the work of a personnel department which may not be very obvious. When a company is doing term life insurance business online or when they have paperless officer, personal management may not be very obvious.

CHARACTERISTICS OF PERSONNEL MANAGEMENTPersonnel Management is known by various names. These are Personnel Administration, Labor Management, Industrial Relations, Employee Relations, Manpower Management, etc. The manager who performs this function is also, likewise, called by various names, like Personnel Manager, Employee Relations Manager, Industrial Relations Manager, Labour Relations Manager, Labour Officer, Labour Welfare Officer, Welfare Officer, Personnel Officer, Employee Relations Officer, and Industrial Relations Officer.

Organizations vary in regard to the degree to which they provide careers to their employees, encourage participation, promote from within and orient their systems toward collective, group based performance. Many will have a mixture of the two choices mentioned above. In some cases, the system is a matter of choice and is meant to support a cultural orientation towards a cooperative rather than competitive climate. But most organizations covered by Peter and Waterman (included in Fortune USA 500 companies) seem to stress on “challenging and meaningful work” with stress on participation, upward mobility and group performance. In the Indian context social compatibility becomes a relevant issue.

We should also be careful in generalizing and in being prescriptive. For example, the concept of life-long employment and preference to employees’ children in employment which seem to work well in the case of Tata Steel proved to be disastrous in those of some other companies. Hence the need to be wary about the organizational context regarding strategic choices in human resource systems.

Human Resource Systems

People are recruited and developed to do jobs defined by the organization’s formal structure; their performance must be monitored and rewards allocated to maintain productivity.

An analysis of the human resource system of large companies should yield information about what assumptions the designers of those systems hold about people. Are they people of McGregor’s Theory X type or Maslow’s self-motivators seeking self-actualization? There may be problems in articulating an individual manager’s beliefs, but one can deduce the real beliefs from the control systems they use. And since they are usually designed on an ad hoc piece-meal basis, one can find many incongruities and incompatibilities. For term life insurance agency also need to have human resource systems to manage their life insurance agents. If and organization has got systems to punish but not to reward people, the former too become defunct over a period of time because a manager who does not have the power to reward forfeits his right to punish, at least in course of time.

Organizations need three levels: operating, managerial and strategic. At the operational level, the day-to-day management of the organization is carried out. The managerial level focuses on the processes by which the organization obtains and allocates the resources needed to carry out its strategy and objectives. The strategic level deals with policy formulation and overall goal setting; its objective is to position the organization in the best possible way to deal effectively with its environment. The three levels do not operate in a top-down system, but provide feedback loops for upward communication.

As mentioned above, in most Indian organizations the levels of managerial activity have been increased largely to accommodate the aspirations for promotions that individual employees have. In the process, employees are promoted, jobs are downgraded and responsibility is blurred.

1. Employee costs per unit of production service shall be held at…..(base year) and indexed to……… as a percentage of fixed and semi-variable expenses.
2. At least 66.6% of increased cost of improvements in the Long-term Agreement shall be met through improvement in employee productivity.
3. During the next….years, these shall be a reduction of……..% in down time of plant and machinery………..% in the avoidable waste of materials and……..% in absenteeism beyond authorized leave.
4. Ensure that 33.3% of saving arising out of the three factors above will be distributed to ensure improvement in the individual employee’s earnings. For example, when we plan to renovate house, we need to plan which type of blinds we are going to use, woven wood shades blinds or roller shades blinds or wood blinds only.
5. An individual employee must move up ………grades in his work span of…….years through careful manpower and succession planning.
6. At least 25% of vacancies in the managerial cadre shall be filled from amongst the lower job holders through appropriate training and development programmes.

The traits which characterize personnel function today are: 

·         It is largely a reactive service

·         Employees are viewed as adversaries, not as partners or stakeholders

·         Employees constitute an element of cost, not an asset 

There is need for a change it personnel perspective to develop common interests and common language. Peter F. Drucker observes that few factors are as important to the performance of an organization as measurement. And, especially in personnel, measurement is the weakest area. Personnel should know how to objectively measure their activities, to get over the subjectivity myth and overcome the values conflict.

Until this happens, personnel would mean many things to many people and respect for and recognition of personnel would remain a far cry. Personnel should use information about their performance to gain recognition and acceptance. Numbers are important because words are imprecise. The role of personnel in strategic planning would be substantial if a personnel manager’s results guide has some of the examples as performance standards which we discuss in next post.

·         Mission and Strategy

·         Formal Structure

·         Human Resource System

These three aspects are discussed there from the personnel management point of view.

Mission and Strategy 

An organization needs a reason for being i.e. mission, and a sense of direction as to how to carry it out i.e. strategy. Most of our organizations, particularly in the public sector, have multiple objectives. The loose definition of objectives and their plurality often provides an excuse to dilute accountability. The paucity of data on human resources often makes it difficult to include it in the process of strategy formulation. 

The macro-objective pf Gross National Product (GNP) an the standard of living and the micro-objective of Return on Investment (ROI) and quality of work life provide enormous opportunities for the personnel function to make significant contributions. Personnel should adopt the language of business and relate its effectiveness in relation to the business objectives concerning output, profit, and contribution to society. Peers in other functions focus on income, assets, liabilities, sales, costs and profits while personnel continue to talk about feelings.

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Modifications occur in the size and composition of work groups. The network of social relations among employees is also affected. Secular shifts in consumption patterns and technological developments have displaced artisans such as weavers, potters, fishermen, washermen, etc. Technical training institutions began to impart training in skills such as carpentry and weaving which once used to be the exclusive domain of people belonging to certain castes.

In retrospect, these changes had the following effects on the individuals: the link between caste and occupation was broken, the skill of artisans which was more personal and manual was replaced with the skill of technicians which is more impersonal and mechanical; job performance depended more on dexterity in handling machines than exercising one’s skill or craft and thus individual’s pride in his contribution to final output, for which Indian artisans were renowned was reduced.

In the organized manufacturing sector alone, over 3,000 man days per every 1000 persons employed are lost every year in the industrial disputes where both the parties seek to assert their respective rights. Litigation has grown due to increase in number of disputes and delays in adjudication.

Technological imperatives are limiting the options available. However, more number of jobs are lost due to sickness than due to modernization and automation. Delays in absorption, failure in adaptation, absence of economies of scale, high costs and cost-push tendencies due to the nature of competition have restrained the positive features of technology.

blinds, roller shades, woven wood shades

Government intervention to regulate employment relationship and organizational performance has been on the increase in pursuit of the ideals enshrined in our Constitution and the objectives of Five-year Plans.

We have had much progressive legislation since independence to regulate working conditions and employment relations, abolish bonded labor, check contract labour, ensure equal pay for equal work, guarantee minimum wages, provide social security, etc. We also some stringent legislations like Essential Services Maintenance Act (ESMA) and Maintenance of Internal Security Act (MISA), which trade unions and civil liberty organizations abhor.

Employers and unions are critical about much of the legislative framework because it does not enable them to function the way they want to, but seeks to control. Non-compliance of legislation is fairly widespread because ‘state ways’ alone cannot change ‘folkways’; besides, weaknesses in administering the laws and loopholes in the provisions have aggravated the situation.

Today we continue our talk and demographic as a part of environmental aspects and we are going to discuss on another aspects and which is Socio-cultural. The sex composition of workers has also been changing. Earlier, women were recruited mainly as labor in agriculture and related traditional industries like plantations, etc. Now they are increasingly occupying white collar and managerial positions. Etc. Now they are increasingly occupying white collar and managerial positions. Working women, especially in developing countries like ours, are beginning to resist discrimination against them by employers and sexual harassment at work place.

Socio-cultural

Hindu religion and culture does not teach people to be idle. It is enjoined that one should do one’s duty not in return or expectation of its fruit but because it is one’s dharma. High quality work without supervision over long hours, almost unrelated to its fruits in monetary terms, is done by the self-employed persons, e.g., craftsmen, fishermen, housewives, and employees of small unorganized units, in towns and villages. On the other hand, the question of lack of work culture or ethics is discussed largely in the context of large scale organized industry primarily in urban areas. Even in urban areas office interior is different than in rural areas. In urban areas offices are having vertical window blinds with roman shades or other shades. Which in rural areas, offices are having curtains.

roman shades, vertical blinds

Higher skills and educational requirements expected of workers in modern factories and better wage levels have tended to blur further the traditional distinction between manual and non-manual workers. Employees are seeking and demanding parity in employee benefits among different categories and levels. The evolving social and political climate in the country also has its impact in shaping and expending these changes in the composition of workforce and their disposition towards work place.

·         Economic

·         Demographic

·         Socio-cultural

·         Political

·         Technological

Economic

Low growth (3.5% long-term average), high rate of inflation (8.5%), and spreading unemployment have been principal sources of concern on the economic scene. To achieve full employment at a 2.4% growth in population, the number of jobs should rise by 3.9%. The International Labor Organization estimated that US $ 6250 is needed to create a new job in developing countries like ours. Capital-employment and capital-output ratios have declined progressively during the plan period. Inequities in income and wealth distribution have increased over the years, despite government initiatives to counter the same. Affirmative actions for the disadvantaged groups have brought in their wake new pressures for reservations in education and employment based on heredity, nativity, sex, caste and creed. Employment is sought and created in bulk of public sector units for its own sake. Together these factors and forces have put the nation on a reverse gear. The result has been the pursuit of backwardness.

We are talking about functionality of the System. We have already discussed on Building feedback and reinforcing mechanisms, Balancing quantitative and qualitative decisions and Balancing internal and external expertise. Today we are going to discuss on Planning for evolution of HRD.

d) Planning for the evolution of HRD: Various aspects of HRD can be introduced into the organization in stages, depending on its needs, size and level of sophistication. Some aspects may require a great deal of preparation. Rushing the introduction of an aspect of HRD may limit its effectiveness. Each stage should be planned carefully, with sequenced phases built one over the other. This may include: 

1.     Geographical phasing: introducing the system in a few parts of the organization and slowly spreading it to other parts. This may be necessary in a large or widely located organization.

2.     Vertical phasing: introducing the system at one or a few levels in the organization and expanding up or down gradually.

3.     Functional phasing: introducing one function or subsystem, followed by other functions. For example, introducing job specifications (identification of critical attributes of jobs) before introducing a complete potential-appraisal system.

4.     Sophistication phasing: introducing simple forms of subsystems, followed after some time by more sophisticated forms.

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b) Balancing quantitative and qualitative decisions: Many aspects of HRD, such as performance and potential appraisals, are difficult to quantify. Of course attempts should be made to quantify many variables and to design computer storage of various types of information, but qualitative and insightful decisions are also necessary and desirable. For example, in considering people for promotions, quantitative data are necessary inputs, but other factors must also be taken into consideration. Thus a balance between the mechanical and the human factors in necessary.

c) Balancing internal and external expertise: A human resource development system requires the development of internal expertise and resources, specifically in content areas that are used frequently within the organization. For expertise that is required only occasionally, the use of external resources or consultants may be the most feasible. It is necessary to plan for an economical and workable balance between the two. It is preferable to use internal personnel to conduct training; however, an organization that user’s only in-house expertise may not benefit from new thinking in the field. On the other hand, a company that relies solely on external HRD help does not develop the internal resources that are necessary for effective functioning.

Today, we continue our discuss on Balancing differentiation and integration with example which is the function of the Structure of the System. We will discuss for other two remaining functions also and those are Establishing linkage mechanisms and Developing monitoring mechanisms

c)  Balancing differentiation and integration: For example, inputs from manpower planning should be available to line managers for career planning and HRD units for potential appraisal and development. Data from recruitment should be fed into the human resources information system. If salary administration and placement are handled separately, they should be linked to performance appraisals. Differentiation as well as integration mechanisms are essential if the HRD system is to function well.

d)  Establishing linkage mechanisms: HRD has linkages with outside systems as well as with internal subsystems. It is wise to establish specific linkages to be used to manage the system. Standing committees for various purposes (with membership from various parts and levels of the organization), task groups, and ad hoc committees for specific tasks are useful mechanisms.

e)  Developing monitoring mechanisms: The HRD function is always evolving. It therefore requires systematic monitoring to review the progress and level of effectiveness of the system and to plan for its next step. A thorough annual review reappraisal every three years will be invaluable in reviewing and planning the system. It may be helpful to include persons from other functions in the organization in the HRD assessment effort. 

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1.     Establishing the identity of HRD

2.     Ensuring respectability for the function

3.     Balancing differentiation and integration

4.     Establishing linkage mechanisms

5.     Developing monitoring mechanisms

a)  Establishing the identity of HRD: It is important that the distinct identity of HRD be recognized. The person in charge of HRD should have responsibility for this function exclusively and should not be expected to do it in addition to any other function. Multiple responsibilities produce several kinds of conflict. This person should report directly to the chief executive of the organization.

b)  Ensuring respectability for the function: In many companies, the personnel function does not have much credibility because it is not perceived as a major function within the organization. It is necessary that HRD be instituted at a very high level in the organization and that the head of the HRD department be classified as a senior manager. Both the credibility and usefulness of HRD depend on this.

c)  Balancing differentiation and integration: The Human resource development function often includes personnel administration, human resource development and training, and industrial relations. These three functions have distinct identities and requirements and should be differentiated within the HRD department. One person may be responsible for OD, another for training, another for potential appraisal and assessment, etc. At the same time, these roles, should be integrated through a variety of mechanisms.

We will discuss with example on Balancing differentiation and integration, Establishing linkage mechanisms and Developing monitoring mechanisms in our next post.

b)    Balancing adaptation and changing in the organizational culture: Although HRD systems are designed to suit the organizational culture, the role of HRD may be to modify that culture to increase the effectiveness of the organization. There always has been a controversy those who believe that HRD should be designed to suit the culture and those who believe that HRD should be able to change the culture. Both positions seem to be extreme. HRD should take the organization forward, and this can be done only it its design anticipates change and evolution in the future.

c)     Attention to contextual factors: What is to be included in the HRD systems, how is it to be subdivided, what designations and titles will be used, and similar issues should be settle after consideration, size, technology, levels of existing skills, available support for the function, availability of outside help and so on.

d)    Building linkages with other functions: Human resources development systems should be designed to strengthen other functions in the company such as long-range corporate planning, budgeting and finance, marketing, production, and other similar functions. These linkages are extremely important.

e)    Balancing specialization and diffusion of the function: Although HRD involves specialized functions, line people should be involved in various aspects of HRD. Action is the sole responsibility of the line people, and HRD should strengthen their roles.

PRINCIPLES IN DESIGNING HRD SYSTEMS  

Of course, HRD systems must be designed differently for different organizations. Although the basic principles may remain the same, the specific components, their relationships, the processes involved in each, the phasing, and so on, may differ from organization to organization.  

Designing integrated HRD systems requires a thorough understanding of the principles and models of human resources development and a diagnosis of the organization culture, existing HRD practices in the organization, employee perceptions of these practices, and the developmental climate within the organization. There are some principles related to focus, structure, and functioning should be considered when designing integrated HRD systems, we will discuss on each principles in our next post.

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The Contribution of Subsystems to HRD Goals

Each of the subsystems or mechanism just defined contributes to the achievement of overall HRD goals.    

Performance appraisal focuses primarily on helping the individual to develop his or her present role. Potential appraisal focuses primarily on identifying the employee’s likely future roles within the organization. Training is a means of developing the individual’s personal effectiveness (e.g., through communication-skills laboratories) or developing the individual’s ability to perform his or her present job role or future job roles. Training can also strengthen interpersonal relationships (through training in communications, conflict resolution, problem solving, transactional analysis, etc.) and increase teamwork and collaboration (through management and leadership training, team-building programmes, etc.)  

Feedback and performance coaching helps the development of the individual as well as relationships. Organization development is the mechanism for developing team collaboration and self-renewing skills. Efforts to promote employee welfare and ensure the quality of work life, along with rewards, promote a general climate of development and motivation among employees.

Quality-of-work-life programmes generally focus on the environment within the organization and included: basis physical concern such as heating and air conditioning, lighting, and safety precautions; additional physical amenities such as food and beverages facilities, recreation, and aesthetics; and psychological and motivational factors such as flexible work hours, freedom to suggest changes or improvements, challenging work, and varying degrees of autonomy.  

HRD systems focus on employee welfare and quality of work life by continually examining employee needs and meeting them to the extent feasible. Job-enrichment programmes, educational subsidies, recreational activities, health and medical benefits, and the like generate a sense of belonging that benefits the organization in the long run.