What is Personnel Management?Person

What is Personnel Management?

Personnel management is concerned with the effective use of the skills of people. They may be salespeople in a store, clerks in an office, operators in a factory, or technicians in a research laboratory. In a business, personnel management starts with the recruiting and hiring of qualified people and continues with directing and encouraging their growth as they encounter problems that arise in working toward established goals.
In addition to recruiting and hiring, some of the responsibilities of a personnel manager are:
1. To classify jobs and prepare wage and salary scales.
2. To counsel employees.
3. To deal with disciplinary problems.
4. To develop safety standards and to put them into practice.
5. To manage fringe benefit programs, such as group insurance, health, and retirement plans.
6. To provide for periodic reviews of the performance of each individual employee, and for recognition of his or her strengths and needs for further development.
7. To assist individuals in their efforts to develop and qualify for more advanced jobs.
8. To plan and supervise training programs.
9. To be informed of developments in personnel management.
Personnel managers often deal with the following difficult situations concerning the employees:
• The firm’s employees – especially the most qualified ones – can get better jobs with other employers.
• When a firm has not enough supervisory and specialized personnel with adequate experience and job capabilities, it has to train and develop its own people. This can be time consuming and expensive.
• The cost of hiring and training employees at all levels is increasing, for instance, several thousand dollars for a person. A mistake in hiring or in slow and inefficient methods of training can be costly.
• Most employees want better direct compensation, employee benefits, and working conditions that the firm cannot afford, but other employers can. So, all employee policies and operating procedures should be developed with great care.
The personnel department has the responsibility to define and implement policies, procedures and programs for recruitment, selection, training, placement, safety, employee benefits, compensation, labor relations, organization planning, and employee development.
Effective human resource management develops the abilities of job candidates and employees to meet the needs of the firm. Human resource (HR) management is a balancing act. At one extreme, you hire only qualified people who are well suited to the firm’s needs. At the other extreme, you train and develop employees to meet the firm’s needs. Most expanding businesses fall between the two extremes i.e., they hire the best people they can find and afford, and they also recognize the need to train and develop both current and new employees as the firm grows.
There are two functions of personnel management. The first function is to hire and train the right people. The effective personnel system is:
• Assessing personnel needs.
• Recruiting personnel.
• Screening personnel.
• Selecting and hiring personnel.
• Orienting new employees to the business.
• Deciding compensation issues.
The second function is raising employee trust and productivity. These two functions stress the importance of a good human resource management climate and provide specific guidelines for creating such a climate.