People are vital input for the effective functioning of an organization. For any organization to become successful it is necessary to recognize the potential personnel, acquire them, develop and to retain the same. The term ‘Personnel’ refers to ‘Body of employees’ who fill the various positions in an organization. Personnel administration is the collective concern towards the human resources of an organization. Hence, personnel administration refers to administration of human beings in an organization.
The Institute of Personnel Management (UK) defines Personnel management as that part of management concerned with people at work and with their relationship within an enterprise. The three objectives of personnel administration are i) to maintain healthy working culture ii) to enable an employee to achieve his personal goal and iii) to achieve harmonious relationship between the employees and employers by integrating personal goals of the employees with the organizational goals.
Personnel administration is comprised of POSDCORB, an acronym coined by Luther Gullick and Urwick representing seven important functions in an organization namely, planning, organizing, staffing, directing, coordinating, reporting and budgeting. These above functions deal with the organized function of planning for human resource needs, recruitment, selection, development, compensation and evaluation of performance which is also defined as human resource management.
Importance of Human resource management
The human resource management process is an ongoing function that aims to supply with the right positions with right kind of people. Michael Armstrong, in ‘A handbook of human resource management practice’, describes ‘Human resource management as the strategic and coherent approach to the management of an organization’s most valued assets- the people working there who individually and collectively contribute to the achievement of the objectives of the business’. In the light of globalization process, India’s vast manpower has been playing a pivotal role in making the economic liberalization a success to certain extent. Therefore, the human resource policies pertaining to recruitment, training and development of human resource skills gains importance in today’s competitive market. The biggest challenge in the human resources practices is to attract the potential skilled performer and to retain the high performing employees in a competitive market economy that opens endless opportunities for the employees to harness their skills.
India which is expected to contribute to 250 million to the world’s labour pool has given impetus to human resource management practices with new challenges posed by competitive private sector. There is a heightened demand for job relevant skills, innovations and others. Accordingly, the significance of human resource is being emphasized in small and large organizations with the current emphasis on downsizing, delayering and similar institutional rearrangements. Thus the significance human resource management lies in training the employees, designing structural architecture, redesigning of the organizational process and others depending on the prediction of the new employment and developments in economy through purposeful human resource management policies and practices.
1) What are changes that can be witnessed in the human resource management / personnel administration in the context of globalization?
2) Do you find difference between the personnel policies of public sector and private sector? If yes, discuss.
3) Do the human resource management practices and policies really favour the employees?
This is the second post by Dr. Anitha Prsanna M.A., Ph.D