Personnel Management: A Project Report

The below mentioned article will help you to prepare a project report on Personnel Management:- 1. Definition and Concept of Personnel Management 2. Aims, Objectives or Functions of Personnel Management 3. Principles (Characteristics) of a Good Personnel Policy 4. Recruitment and Selection of Employees 5. Education and Training 6. Promotion, Transfer, Lay-Off and Discharge.

Contents:

1. Project Report on the Definition and Concept of Personnel Management
2. Project Report on the Aims, Objectives or Functions of Personnel Management
3. Project Report on the Principles (Characteristics) of a Good Personnel Policy
4. Project Report on Recruitment and Selection of Employees
5. Project Report on Education and Training
6. Project Report on Promotion, Transfer, Lay-Off and Discharge

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Project Report # 1. Definition and Concept of Personnel Management:

Management in industry inevitably sub-divides itself into a series of functions such as sales, production, finance, etc. Personnel is one of these functions. The personnel function exists in every enterprise regardless of its size and irrespective of the fact that whether or not there is a personnel department.

In a small concern, the personnel function is carried on by the owner itself whereas as soon as the organisation reaches a certain size, the personnel function like other functions is given a separate organizational status.

The personnel function is concerned with all of the human relationships among workers as people. The essentials of Personnel Management were first exemplified by the work of Robert Owen (1771-1858). He recognized the immense importance of the human factor in industry and he put efforts to apply this knowledge.

Any industry depends upon human beings; it has to acquire workers and it creates an acceptable environment and a rule-of-practice to encourage the greatest degree of participation from its em­ployees.

Personnel Management, Personnel Administration or Industrial Relations in an enterprise tends to attain maximum individual (employee) development, desirable working relationships between employees and employers and between groups of employees and effective moulding of human resources as contrasted with physical resources.

Personnel Management may be defined as the Planning, Organising, Directing and Controlling of the Procurement, Development, Compensation, Integration and Maintenance of people (i.e., employees) for the purpose of contributing to the organizational goals.

The different words used in the above definition are explained below:

(i) Planning:

It means determination in advance of a personnel programme. It involves ability to think, analyze and to reach decisions.

(ii) Organizing:

It means (after determining a course of action) establishing an organization by designing the structure of relationships among jobs, personnel and physical factors to attain the company objectives.

(iii) Directing:

Directing, Motivation or Actuation means getting employees to go to work willingly and effec­tively.

(iv) Controlling:

It concerns with regulating activities in accordance with the personnel plan (formu­lated on the basis of organizational goals).

(v) Procurement:

Procurement means obtaining proper kind and size of personnel necessary to achieve company goals.

(vi) Development:

Development involves increasing of employee’s skill, through training, that is necessary for proper job performance,

(vii) Compensation:

Compensation means (adequate and equitable) remuneration of personnel for their contribu­tion to achieve organizational goals.

(viii) Integration:

Integration is concerned with the attempt to effect a reasonable reconciliation of individual and organizational interest.

(ix) Maintenance:

Maintenance means sustaining and improving the conditions (e.g., health and safety measures, employee service programme, etc.), that have been established.

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Project Report # 2. Aims, Objectives or Functions of Personnel Management:

Being used upon the definition of Personnel Management, it is generally recognized that the following areas of the work situation in an industry are the province of the Personnel Department, i.e., Personnel Manager and the staff of his department.

(a) Procurement and Maintenance of Adequate Work-Force (Employees) as Regards to Both —Number and Quality of Personnel:

i. Recruitment,

ii. Interviewing,

iii. Testing,

iv. Induction,

v. Placement,

vi. Follow up of new employees for adjustment,

vii. Merit rating,

viii. Promotion, transfer and discharge, and 

ix. Employment records.

(b) Education and Training of Present Employees:

i. Job instruction: Apprentice training vestibule schools,

ii. Economic education,

iii. Training plans: operative training, supervisory training, Executive training,

iv. General industrial education,

v. Training materials and audio-visual training aids,

vi. Reading rooms and libraries, and 

vii. Records and statistics.

(c) Maintaining Satisfactory Personnel Contacts and Employee Relationships:

i. Job analysis, job specifications, etc.,

ii. Merit rating of employees,

iii. Wages and rewards,

iv. Labour audit,

v. Labour records and labour statistics,

vi. Regularization of employment,

vii. Handling grievances,

viii. Labour turn-over,

ix. Labour market surveys,

x. Suggestion systems, and

xi. Morale studies.

(d) Maintaining Satisfactory Group Relationships:

i. Contacting employer’s groups,

ii. Contacting employee’s representatives,

iii. Contacting government agencies, and 

iv. Integrating group interests.

(e) Maintaining Employees Health:

i. Health standards,

ii. Sanitation control,

iii. Physical examinations,

iv. Treatment of minor injuries and diseases,

v. Hospitalization,

vi. Personnel hygiene and health education, and 

vii. Rest periods, Recreation, etc.

(f) Maintaining Employees Safety:

i. Safety standards,

ii. Safety guards and inspection of safety equipment,

iii. Safety programmes, safety publicity, safety rules and safety contests,

iv. Fire protection and accident investigations, and

v. Safety records and workmen compensation for injuries.

(g) Maintaining Employees Service Activities (Employee Welfare):

i. Credit unions,

ii. Savings and investment plans,

iii. Group insurance,

iv. Profit sharing,

v. Pension,

vi. Legal assistance,

vii. Housing programme,

viii. Company stores and restaurants, and 

ix. Recreation plans.

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Project Report # 3. Principles (Characteristics) of a Good Personnel Policy:

A personnel policy is a directive, usually written, to help personnel department in accomplishing its objectives or functions. A personnel policy is dynamic to meet fundamental changes or the current situation.

A personnel policy contains the information regarding:

i. Recruiting employees,

ii. Employment conditions,

iii. Promotions,

iv. Discharge,

v. Safety practices,

vi. Training,

vii. Financial aid,

viii. Health standards, etc., and 

ix. Separation.

Various characteristics/principles of a good personnel policy are:

1. It should avoid opportunism and be stable.

2. It should have due regard for the human equation, the employees, the employers and the consumers (or public).

3. An employee should be able to approach personnel manager to express his grievances.

4. It should not contain ambiguities and uncertainties.

5. It should guarantee permanent employment to competent employees.

6. It should be flexible enough to meet varying needs of employees and the changing conditions.

7. It should have provision to train competent employees for promotion.

8. It should be easily understood by all concerned persons.

9. It should guard employees against unfair dismissal.

10. It should have a fair wage agreement system.

11. It should provide good working conditions, safety and medical benefits.

12. It should recognize individual differences in capacities, interests, emotional reactions, etc.

13. It should organise and encourage social facilities.

14. It should be above religious, social or political discrimination.

15. A worker or workers should have formal recognition in phases of management of their vital interest.

16. It should maintain effective consultation between employers and employees.

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Project Report # 4. Recruitment and Selection of Employees:

The first step in the development of a concern’s personnel activity is to employ the right type of persons to operate the organization, if the organization does not possess right kind of people, it leads to lowered production and employee morale and increased absenteeism and labour turn over. Employing people is one of the most critical steps in the establishment and growth of a business.

The basic purpose of the employment office of the company is to hire desirable employees for specific company openings. Recruitment is a major step in the total staffing process.

Recruitment may be described as the process of getting potential employees willing to apply for a job with the concern or firm. In other words, recruitment develops and maintains adequate manpower to run an organization efficiently. The term recruitment is used to describe the attraction of applicants from among whom to select.

Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the concern. For this reason, recruitment is a positive process; it increases the number of candidates aspiring to take up a job with the organisation.

As compared to Recruitment, Selection is a negative process because it picks out a few suitable persons from amongst a number of applicants and thus eliminates many candidates aspiring for the same post. Selection divides the applicants approaching for employment into the classes – those who will be offered employment and those who will not.

Effective Selection of Employees:

(i) Raises output,

(ii) Improves product quality,

(iii) Reduces total product cost,

(iv) Minimizes disputes and grievances, and

(v) Lowers the labour turn-over rates, etc.

The applicant selected for the post should:

(i) Be willing to work,

(ii) Be able to handle the job,

(iii) Be stable, i.e., stay with the organisation for a fair period,

(iv) Be able to fit in the work situation, and

(v) Have development and growth potentialities.

Functions of employment section of the company:

(a) To hire right type of employees for specific company openings.

(b) To maintain adequate supply of right kind of employees.

(c) To develop job specifications.

(d) To procure information about current wage rates.

(e) To introduce selected employees with personnel policy of the company.

(f) To follow up the new recruits for initial adjustment.

(g) To look after employee counselling and operating the seniority system.

(h) To keep records of employees, hired, resigned, discharged and transferred.

Sources of New Employees:

(a) From Within the Company:

i. By promotion.

ii. By transfer.

iii. Former employees who had good service records when they left.

(b) From Outside the Company:

i. Friends and relatives of present employees duly recommended by them.

ii. Through press and other advertisements.

iii. Through employment agencies.

iv. Through schools, colleges and universities.

v. Through labour unions.

vi. From waiting lists.

vii. As recommended by Professional bodies and societies.

viii. Foreign sources.

ix. From unsolicited applications received, both at the gate and through the mail.

x. Through trade associations.

xi. From Government employment exchanges.

xii. From labour contractors.

xiii. Through personnel consultants.

xiv. With the help of Notices exhibited at the factory gate.

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Project Report # 5. Education and Training:

When the employment aspect of the personnel function has succeeded in providing suitable employees for various tasks, it is followed by an Education and Training aspect which brings employees to a standard where they can earn out industrial tasks efficiently. One of the characteristics of modern society is the increasing rapidity of change today compared with older social orders.

This intensifies the need for study, adaptation and new education and training. In the field of education and training, personnel management deals with an extensive pro­gramme, ranging from the placement, induction and training of new recruits to the provision of courses for middle and higher management levels. Training is an ever-continuing process in all organisations and it is employed as a technique of control as well as of imparting information and developing new skills.

The main object of all industrial training is to prepare people to do efficiently own particular tasks or to do another job equally well. Industrial training is based upon a specific need. It imparts knowledge and develops employees aptitude and skill for a particular industrial task. Education improves an employee and he can take up and handle jobs of higher responsibility whereas

Training prepares an individual so that he can accomplish his industrial task efficiently and effectively. Every industrial organisation realises the need of training the recruits before putting them on a (new) job. If there is no planned training programme, the employees train themselves by trial and or by observing others; this not only results in higher training costs (because of more work spoilage and scrap rate), the learning period gets considerably lengthened and even then employee is not able to learn the best operating methods.

Objectives, Aims or Need for Training:

Training of employees is essential in order:

1. To ensure an adequate supply of properly trained employees at all levels of industry.

2. To improve the performance of each employee to the highest attainable level and to develop his potential so that he can take up jobs of higher responsibility.

3. To attain precision and clarity in the transition of business.

4. To increase productivity by conceptual skill, imagination and judgment of employees.

5. To reduce scrap rate.

6. To reduce accident rate.

7. To minimize absences.

8. To reduce fatigue and tardiness.

9. To minimize over-time.

10. To reduce labour turn-over.

11. To boost employee morale.

12. To promote cooperation and good relations between workers and management.

13. To reduce cost of product through economic and more efficient use of company resources.

14. To provide knowledge and appreciation of techniques necessary to enable a trainee to do his job.

15. To inculcate a broad understanding of relevant science and technology so that the trainees adjust to the changes in the nature of work.

16. To teach employees the standardized work methods.

17. To inculcate good work habits on the part of employees.

18. To promote team work.

19. To find out whether an employee is suited to the job.

20. To adjust employee’s outlook to new needs of new times.

Advantages of Employee Training:

1. Increased productivity.

2. Fast production rate and improved product quality

3. Reduced supervision of employees.

4. Better cooperation and team work among employees.

5. Increased organizational stability and flexibility.

6. Reduced labour turn-over, quits and fires.

7. Reduced accidents.

8. Less fatigue to workers.

9. Heightened morale of the employees.

10. Increased labour efficiency.

11. Reduced scrap rate.

12. Less equipment maintenance problems because a properly trained worker handles machinery carefully.

13. Increased wage rates.

14. More job satisfaction.

Methods of Training:

Instructional methods may be classified as follows:

1. Individual Instruction:

This involves devoting personal attention to an employee in order to teach him a complicated skill, e.g., to run a machine or to perform a complicated assembly operation.

2. Group Instruction:

Under this method of instruction, a group of trainees are given certain basic facts about the job e.g., explaining to the workers the importance of adopting a new method for doing the same old job.

3. Lecture Method:

It is the most effective method for giving to trainees the basic or supplementary (usually technical) information on specific subject, e.g. mathematical treatment of the forces acting on a lathe tool when doing rough turning.

4. Demonstration Method:

It is employed to help trainees to grasp manual skills e.g., the right way to hold the job against the grinding wheel.

5. Written Instructional Method:

This method is used to give to trainees the important information in permanent form for immediate or future use, e.g., Standard Practice Instructions on how to perform various jobs.

6. Oral Instructions:

Oral instructions method is used when it is required to give information needed at once-in short form, e.g., when an employee starts on a new job. The oral instructions explain the principles behind the work and reason why it is required to do.

7. Conferences:

The conference method of training is of particular value on account of its flexibility. It helps solving problems or changing attitudes, e.g., how to reduce waste or scrap rate or how to control absenteeism.

In conference method, the text material plays only a minor role, practical experience forms the background for every discussion.

8. Meeting:

Meetings are held to exchange information, solve immediate problems or to get ideas of group e.g., department safety meeting will extract from the employees as how to make machine operation more safe, how to reduce accidents, etc.

The Training Procedure:

The procedural steps involved in the process of training are:

1. Make the Instructor Ready to Teach:

The instructor should,

Know the job himself thoroughly.

Break up the job into logical steps, for example for in-feed grinding on a center-less grinder, first step is to place the work piece on the plate against the grinding wheel, the second step is to lower the lever, feed and grind, etc. Know at which stage of training which training method (i.e. lecture, demonstration, etc.) is to be used, Keep physical work place ready for training.

2. Get the Trainee Ready to Learn:

a. Because a person who is interested in learning is easiest to teach,

b. Make trainee feel at ease,

c. Explain to the trainee what he is going to learn, what is the purpose behind, what is the importance of job, how it is related to work done before and afterwards and what is the benefit of rapid and effective learning.

3. Demonstrate the Method of Doing the Job:

Tell and show to the trainee the correct procedure of doing the job, step by step, using appropriate training aids and let the trainee watch the whole show. While doing so explain the sequence of the entire job, demonstrate each operation using the best motions and their correct sequence at a standard pace rate, repeat if necessary, and emphasize key points in each step. A key point is one which might damage the job or injured the trainee.

4. Let the Trainee Try the Operations Himself:

Under the guidance of the instructor correct the trainee when he is wrong, encourage him when he is working right, learning curves may help at this stage, and an attitude of patience and goodwill on the part of instructor might be very much beneficial.

5. Gradually put the Trainee on His Own:

When the instructor feels that the trainee can do the work reasonably well in his presence, he may let the trainee loose for a while; but not abandon him completely. The time for which the trainee is working independently should be increased gradually and gradually.

6. Follow Up:

The trainee should be checked from time to time in order to find whether he is doing correctly and working satisfactorily or not. Any deviation from the standard method (practice) noticed should be told to the trainee and corrected accordingly.

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Project Report # 6. Promotion, Transfer, Lay-Off and Discharge:

Employees do not remain at one job level throughout their life. They are promoted, transferred and if conditions are unfavourable they may even be demoted or laid off and discharged.

Promotions and transfers ran do a lot in improving the morale of employees and in motivating them. Even if the new job does not involve monetary benefit, and it is just a change in (night) shift or from a hot, dusty and smoky location to a better one, employees often consider it as a promo­tion.

(A) Promotion:

Promotion may be defined as a significant enlargement in job responsibility, but also variably:

1. Any increase in pay, prestige, rank or status;

2. An upgrading within a certain job classification;

3. Any increase in responsibility that provides additional privileges, comforts, etc.

There should be a well-developed system of making promotions. Lines of promotion should be clearly defined and a real promotion policy should be formulated. A sound personnel policy demands that promotions should be made from within the industry if suitable persons are available.

Promotion from within:

1. Develops employee loyalty and builds up employee morale.

2. Increases job satisfaction.

3. Motivates employees.

4. Is a good incentive to the employees.

5. Enables the formation of an efficient and stable workforce.

6. Increases efficiency and efficacy of the organisation.

However the policy to promote always from within the organization:

1. May stop talented outside persons to join the organisation.

2. May prevent the knowledge and drive that comes from new ideas.

3. Stops mobility of labour and labour turn-over which should be present to some extent for the good health of the concern or enterprise.

Bases for promotion from within:

If promotion from within is to be an incentive for the employees, the best performing employees ought to be promoted.

The following factors help deciding the best performing employee:

1. The results of Merit Rating or Employee Rating System.

2. Productivity and Quality records of the employees.

3. Attendance and punctuality records of employees.

4. Health and physique (stamina) of the employee to meet the challenge of the higher job.

5. Personal file and records of employees.

6. Skill and proficiency on the existing job.

7. Seniority of the employee.

8. Qualification and experience, if any, possessed by the employee as per demands of the higher job.

9. Ability, i.e. potential performance of the employee on other jobs taken up till date.

(B) Transfer:

Transfer implies a change in job where the new job is substantially equal to the old one in terms of pay, status and responsibilities. Just like promotions, transfers also require planning.

A good transfer policy should ascertain and consider:

1. The reasons for a transfer.

2. The department(s) in which the transfer can be made.

3. The effect of seniority on the transfers.

4. Whether the transfer is temporary or of permanent nature.

5. The posting of available job openings.

6. The effects, if any, of the transfer on the salary of the employee, etc.

Types of Transfers:

The different types of transfers are those:

1. Which shift individual who have just gone into wrong jobs.

2. Designed to enhance training and development (role playing).

3. Which are made to meet changing production requirements (temporary transfer), i.e. adjust­ments to varying volumes of work within the concern.

4. Remedial transfers, which are made when an employee has some trouble in doing his work or develops friction with his boss or fellow employees.

5. That are made to provide an opportunity to an employee occupying a dead-end job to move sideways into another job.

6. That are made to give some relief to an employee from his monotonous job such as fitting single part in an equipment over and over again, all day long. Periodic transfers under such conditions stimulate greater job interest.

7. Requested transfers in which the employee requests for a transfer because he is allergic to oil or some type of smell, etc.

(C) Lay-Off:

Whereas promotions mean more money and better status, transfers imply rarely any loss, lay-off means taking away something. Lay-off is the temporary removal or suspension of the employee from his job (during period of emergency). Lay-off is undergone in order to reduce financial burden on the concern when the employees cannot be utilized profitably.

Lay-off indicates the temporary inability of an employer to avail the services of the employee due to following reasons:

1. Non-availability/shortage of material, fuel or power.

2. Accumulation of excess stocks.

3. Breakdown of machinery.

Besides, lay-offs afford an opportunity to weed out sub-standard employees, those who have not the inclination to do a fair day’s task and those who create disciplinary problems. A laid off employee who has more than one years of continuous service with the firm is entitled to compensation equal to 50% of his salary (i.e., basic pay + DA) during the laid off period.

(D) Discharge or Dismissal:

Discharge is most severe penalty that an organization can give to its employees. Many arbitrators, indeed, refer to discharge as Industrial Capital Punishment.

Discharge means ending the services of an employee. In other words, separating or removing the employee from the pay roll for following reasons:

1. Serious or habitual infractions of company rules and policies.

2. Dishonesty.

3. Poor job performance.

4. Malicious damage.

5. Intoxication.

6. Fighting.

7. Insubordination.

Discharging an employee throws an extra expense (on the organisation) to train a new employee to take the place of the discharged one. Moreover, because of the hardships the discharged man faces, the unions pressurize the manage­ment to think twice before discharging an employee.

Because of these and other serious implications of discharge many concerns reserve only to higher management the final decision whether to discharge the employee or not. Adequate records should be made to justify discharge and they should be duly signed by the immediate supervisor, manager and the employment officer with any other witnesses who are available.

To support a case for discharge, it is often essential to have:

1. A permanent merit rating record of the employee.

2. Memoranda indicating attempts to correct the employee faults.

3. A copy of the final warning.

4. A letter of discharge stating the reasons for the action.

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