It has been well said that Human resource is the biggest asset to any company. It is also true that a skilled workforce helps to achieve organisational goals efficiently. Research has shown that those organisations that aim to develop the employees through training have higher employee engagement and lesser layoff rate. Thus, employee management becomes one of the crucial aspects of an organisation’s growth.
What is Personnel Management
The term Personnel Management implies managing the human resource in the organisation to enhance their performance and making them a more valuable asset for the sake of meeting the organisational goals. It includes their hiring process as well as retaining their quality through training and other means for business.
While the tasks under Personnel management (PM) resemble those of Human Resource Management (HRM), they still have a difference in their scope and orientation.
PM focuses on considering employees as a tool to meet the goals; hence it has a selective scope of hiring, remuneration, and training, whereas HRM has a more extensive & broader scope. It is involved in strategic planning and forecasting the organisational needs. It considers them as an asset which hence works for their benefit and engagement programs as well. HRM can be called an extension of PM functions.
Key Features of Personnel Management:
- It is focusing on employees as an individual and also as in a team
- It acts as the bridge between the employees and the organisation and plays the role of Single Point of Contact (SPOC).
- It is concerned with all aspects of employees, including emotional, behavioural, and social aspects.
- It works for evolving employee skills, knowledge, capabilities, and potential towards meeting the mutual goals.
- It takes care of all levels of employees starting from the entry-level, operators, workers, managers, executives till the board of directors.
- This administration is applied to all types of organisations, from small to big ones.
The Significance of Personnel Management in a company is far more than its scope. Some reasons why it is important could be listed below:
- Employees need an employer who supports their career growth, so a personnel manager ensures that they must feel supported.
- PM works to make employee satisfied and happy by providing several benefits and incentives such as group health insurance in the interest of employees.
- They take various steps to ensure employee engagement with the organisation
- Employees want to be part of the big picture, so the personnel manager guides them through the vision, mission, and core values of the organisation
- PM adds the initiatives to self-motivating the employees at the workplace
- Employees are more aware of their contribution than earlier. Hence PM works as a bridge between the employer and the workers.
The Core Functions of PM can be divided into three categories:
Operative Functions: it includes the tasks related to recruitment, compensation, job evaluation, employee benefits, maintenance, training and development, and salary negotiations.
Finding a correct fit for the job is done by analysing various skill sets of potential candidates. Hiring is a crucial step in PM. Once recruited, discussing benefits and negotiating on salary is done. Then comes training and assisting the employee in contributing to the fullest towards the organisational objectives. He then arranges programs to increase employee engagement and motivation. Creating a positive work culture for encouraging maximum productivity is an essential step. Good compensation is given for further employee motivation leading to his satisfaction as well.
Administrative Functions: it includes policymaking, administration decision making, advisory role, housekeeping administration, role as counsellor, in welfare and legal consultation
A culture where all employees follow the rules and regulations is difficult to maintain. The personnel manager makes the required policies for the company and is accountable for its execution. He creates a safe and healthy environment for the employees. He plays the role of a consultant during behavioural conflicts among individuals or teams and provides legal guidance to them. He also ensures that the human resource serves the best interest of the company. He takes care of the housekeeping as well.
Managerial Functions: it includes planning, organising, controlling, directing, discipline, and coordinating.
Planning means determining the challenges in advance and proactively deciding the action plan. Organising is arranging and managing the jobs as per requirement and carrying out the necessary personnel programs. Directing is giving guidance and decision-making towards the stated objectives. Getting people to work together comes under coordinating. Maintaining a disciplined environment where rules and policies are followed is also one of the activities.
Hence Personnel management is an important part of any organisation considering the growing competition and increased employee turnover rates. It can make or break the deal with the employees.