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27 December 2021

Personnel Management

Personnel management refers to the business functions that deal with people, whether it's hiring them, paying them, or training them.

However, personnel management is a term that is falling into disuse, replaced by (or used interchangeably with) the phrase "human resources management." A company's human resources are its personnel—the people who are its employees. To manage them, many companies today no longer have personnel departments and instead have human resources departments.

Some consider personnel management to be more administrative in scope—focused on forms and paperwork—while human resources management more broadly endeavors to develop an organization's people and its culture.

For example, recruitment under a personnel management department might simply match job candidates and their resumes to a list of desired qualifications, checking off boxes in a list. But in a human resources department, hiring may be done by hiring specialists who have an in-depth understanding of the company's goals and requirements, sourcing hires who not only have the required skills but are also a great culture fit.

Or, in the case of new hire orientation, the focus of a personnel management department might be to ensure the paperwork is completed and filed properly, whereas a human resources department would ensure that the new hire felt sufficiently briefed as to their duties and responsibilities, focusing on setting up the employee for success. New employee orientation might even include a formal mentoring program. Or, it might involve opportunities for a meet-and-greet so the new employees get to know people they will be working with as well as those in different departments. 

Whether personnel management and human resources management are different in scope or interchangeable terms often depends on the organization's own viewpoint.

Government agencies and nonprofit organizations often still use the term personnel management to describe the administrative tasks associated with managing their employees.

 Personnel Management Work

Personnel management is defined as an administrative specialization that focuses on hiring and developing employees to become more valuable to the company. It is sometimes considered to be a sub-category of human resources that only focuses on administration.

Managing personnel concentrates on certain administrative human resource categories. It includes job analyses, strategic personnel planning, performance appraisals and benefit coordination. It also involves recruitment, screening and new employee orientation and training. Lastly, it involves wages, dispute resolution and other record keeping duties.

An organization's personnel management department typically is responsible for overseeing the administrative requirements of its employees.

Personnel management is typically responsible for:

  • Recruiting
  • Hiring
  • Determining wages and salaries
  • Administering benefits
  • Providing employee incentives
  • New employee orientation
  • Training and development
  • Performance appraisals

For example, at the U.S. Office of Personnel Management (OPM), the government department responsible for managing federal employees, key functions include vetting potential new hires, developing human resources policies, and administering benefits such as pensions and health care. The department ensures oversight of various systems to make sure employees are in compliance with regulations and handles the adjudication of appeals when things go wrong.

Becoming a personnel manager or human resources manager usually takes several years of experience plus a bachelor's degree and, in some cases, a master's degree. However, this occupation is expected to grow by 7% over the next decade and brings a median salary of $116,720.

 Personnel Manager Job Description

A personnel manager will direct and coordinate select human resources activities, such as benefits, training, hiring, compensation, labor relations and employee services. They will analyze salary data and reports to determine competitive compensation rates. They will write policies designed to guide department managers regarding compensation, employee benefits and equal employment opportunities. Personnel managers will act as legal counsel to ensure that company policies comply with state and federal laws.

They must develop and maintain a human resources system that meets the company’s information needs. Thus, personnel managers must oversee the maintenance of required records. They must also maintain benefit records such as insurance, retirement and workers’ compensation plans. This will include personnel activities regarding hires, promotions and transfers. Personnel managers must ensure that adequate labor relation policies and procedures are in place. Thus, they must continually monitor changing laws, legislation movements, arbitration decisions and collective bargaining contracts. Personnel managers must continually deliver presentations to management and executives regarding current and future human resources policies and practices.

Personnel managers will be in charge of various job analyses. This will involve evaluating job positions to ensure that the wage rate is adequate. It will also involve collective assessments of all positions that are used to determine the company’s current and future labor needs. One of the biggest responsibilities of a personnel manager will be to recruit the right employees. However, this is an ongoing, complex process that will require the personnel manager to intimately understand every position and corresponding duties.

Posting job ads, reviewing resumes, conducting interviews and making a final decision with management is a very time consuming process. However, it must be carefully performed in order to avoid hiring the wrong person. HR experts estimate that it can cost between two to five thousand dollars to re-hire and train a new employee for an open position. Finally, personnel managers must ensure compliance with applicable state and federal employment laws and occupational health and safety regulations. As the industry becomes more manual labor driven, the health and safety rules become stricter and more specific.

Nature of Personnel Management

  1. Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments.
  2. Personnel management is an extension to general management. It is concerned with promoting and stimulating competent work force to make their fullest contribution to the concern.
  3. Personnel management exist to advise and assist the line managers in personnel matters. Therefore, personnel department is a staff department of an organization.
  4. Personnel management lays emphasize on action rather than making lengthy schedules, plans, and work methods. The problems and grievances of people at work can be solved more effectively through rationale personnel policies.
  5. It is based on human orientation. It tries to help the workers to develop their potential fully to the concern.
  6. It also motivates the employees through it’s effective incentive plans so that the employees provide fullest co-operation.
  7. Personnel management deals with human resources of a concern. In context to human resources, it manages both individual as well as blue- collar workers.
Role of Personnel Manager

Personnel manager is the head of personnel department. He performs both managerial and operative functions of management. His role can be summarized as:

  1. Personnel manager provides assistance to top management- The top management are the people who decide and frame the primary policies of the concern. All kinds of policies related to personnel or workforce can be framed out effectively by the personnel manager.
  2. He advices the line manager as a staff specialist- Personnel manager acts like a staff advisor and assists the line managers in dealing with various personnel matters.
  3. As a counsellor- As a counsellor, personnel manager attends problems and grievances of employees and guides them. He tries to solve them in best of his capacity.
  4. Personnel manager acts as a mediator- He is a linking pin between management and workers.
  5. He acts as a spokesman- Since he is in direct contact with the employees, he is required to act as representative of organization in committees appointed by government. He represents company in training programs.

References

https://www.managementstudyguide.com/personnel-management.htm

http://www.masters-in-human-resources.org/faq/what-is-personnel-management/

https://www.thebalancecareers.com/personnel-management-1917581

https://www.smartcapitalmind.com/what-is-personnel-management.htm

https://www.youtube.com/watch?v=9VsGQAlbYd0

https://www.youtube.com/watch?v=hAMlq59zQgk


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