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PERSONNEL POLICIES, ORGANISATION STRUCTURE, HRM AS A STAFF FUNCTION & LINE RESPONSIBILITY.

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Presentation on theme: "PERSONNEL POLICIES, ORGANISATION STRUCTURE, HRM AS A STAFF FUNCTION & LINE RESPONSIBILITY."— Presentation transcript:

1 PERSONNEL POLICIES, ORGANISATION STRUCTURE, HRM AS A STAFF FUNCTION & LINE RESPONSIBILITY

2 Personnel management: functions, policies and roles Personnel policies are guides to action. They serve as roadmaps for managers on a number of issues such as recruitment, selection and promotion They cover almost all functions of personnel management A good personnel policy should be easy to understand, based on facts, equitable, reasonably flexible, precise and related to objectives.

3 Personnel management: functions, policies and roles 2-10  Originated policies  Appealed policies  Imposed policies  General policies  Specific policies  Written or implied policies

4 Personnel management: functions, policies and roles 2-11  Delegation  Uniformity  Better control  Standards of efficiency  Confidence  Speedy decisions  Coordinating devices

5 Personnel management: functions, policies and roles 2-12 Features of a sound personnel policy  Related to objectives  Easy to understand  Precise  Stable as well as flexible  Based on facts  Appropriate number  Just, fair and equitable  Reasonable  Review

6 Personnel management: functions, policies and roles 2-13  social responsibility policies  employment policies  promotion policies  development policies  relations policies

7 Personnel management: functions, policies and roles 2-14  identifying the need  collecting data  specifying alternatives  communicating the policy  evaluating the policy

8 Personnel management: functions, policies and roles 2-15 The impact of human resource policies can be measured through their outcomes:  Commitment: how long an employee stays with a firm  Competence: appraised through performance appraisal techniques  Congruence: nature and frequency of grievances, disagreement, discord and conflict  Cost effectiveness: measured through human resource accounting techniques

9 Personnel management: functions, policies and roles ORGANISING THE PERSONNEL FUNCTION The HR function can be organised along traditional as well as modern lines, depending on the nature, scale and complexity of operations in a given organisation.

10 Personnel management: functions, policies and roles  Line and staff relationships: The relationship existing between two managers due to delegation of authority and responsibility and giving or receiving instructions or orders is called line relationship.  Line authority, thus, represents uninterrupted line of authority and responsibility running through the management hierarchy. Staff specialists offer help and advice to line managers, whenever required.  “Staffs think and lines do” “Staffs advise, lines work” “Staffs have the authority of ideas and lines have the authority of command”. Viewed broadly, therefore, personnel management is a line manager’s responsibility but a staff function”.

11 Personnel management: functions, policies and roles  Policy initiation and formulation  Advice  Service  Monitor and control

12 Personnel management: functions, policies and roles Personnel department in a line organisation 2-18 Chief Executive Personnel Manager Recruiting OfficerTraining ManagerCompensation Manager Welfare Officer Assistants

13 Personnel management: functions, policies and roles 2-19 Personnel management: functions, policies and roles Chief Executive Personnel Manager Recruiting OfficerTraining ManagerCompensation Manager Welfare Officer Assistants

14 Personnel management: functions, policies and roles 2-20 Chief Executive Personnel Manager Recruiting OfficerTraining ManagerCompensation Manager Welfare Officer Assistants Line relationship Staff relationship

15 Personnel management: functions, policies and roles 2-21 Personnel department in a divisionalised structure

16 Personnel management: functions, policies and roles 2-22 Personnel management: functions, policies and roles Personnel department in a matrix structure

17 Personnel management: functions, policies and roles Organization environment 3-2 Organisations are open systems and are, therefore, influenced by the environment (internal as well as external ) in which they operate.

18 Personnel management: functions, policies and roles 3-3 External and internal factors influencing the HR function External factorsInternal factors  Technological factors  Mission  Economic challenges  Policies  Political factors  Organisational culture  Social factors  Organisation structure  Local and Governmental issues  HR systems  Unions  Employers’ demands  Workforce diversity

19 Personnel management: functions, policies and roles 3-4 Technology includes tools, machinery, equipment, work procedures and employee knowledge and skills. The impact of technology on HR can be profound, as the following things clearly reveal:  New skills, knowledge, experience and expertise required to gain the edge over rivals.  Downsize operations, cut organisational layers and cut the extra fat to survive in a competitive world  Collaborate and achieve teamwork  Relocate work from the office to the home  Internet and intranet revolution

20 Personnel management: functions, policies and roles 3-5 Why?  Automation  Restructuring  Mergers  Acquisitions  Competitive Pressures Consequences?  Cuts payroll expenses  Eliminates extra layers  Improves functioning if firm’s product and service profile is good  Shocks those left out  Shattering impact on employee motivation and morale if not managed properly Managing Survivors of  Bitterness, anger, disbelief and shock need to be handled properly  Give information as to why the action had to be taken  Tell how it is going to help the firm and employees in the long run.

21 Personnel management: functions, policies and roles 3-6 Role of HR in a virtual organisation A virtual organisation is a network of companies or employees connected by computers. Virtual workers work from home, hotels, their cars, or wherever their work takes them. The human resource function plays a unique role in a virtual organisation:  Psychological fit: The lack of face-to-face interaction in a virtual organisation, virtually compels HR professionals to determine the psychological fit between different units initially.  System alignment: Given the lack of physical proximity, it becomes even more critical that the organisation's mission, vision and measures be aligned and that all parties are familiar with these issues; the HR function can play an important role in this task. Cont…

22 Personnel management: functions, policies and roles  Reconsider rewards: In a virtual unit, very few permanent positions exist. In many cases, the organisation will be staffed with workers having different motivational forces. So rewarding each entity in an effective way becomes an important job.

23 Personnel management: functions, policies and roles 3-7  Reconsider staffing needs: In a virtual organisation, most employees work on a contractual basis. Finding people with requisite skills, knowledge and motivation levels becomes an important activity.  Build partnerships: Virtual, teams have to be built from scratch paying attention to their unique requirements. The concept of employment needs to be replaced by the concept of 'partnership' especially when most tend to work independently away from the permanent employees or owners of the organisation  Develop leaders: Leaders become the major forces for building trust, creating a mission and instilling a sense of belonging to the organisation. HR can play a major role in ensuring that leaders assume these responsibilities and meet them in an effective way.

24 Personnel management: functions, policies and roles 3-8 TQM is a way of creating an organisational culture committed to the continuous improvement of skills, teamwork, processes, product and service quality and customer satisfaction.

25 Personnel management: functions, policies and roles 3-9  Do it right the first time  Be customer oriented  Make continuous improvement a way of life  Build teamwork  Empower people  Create a climate of trust, an atmosphere for innovation

26 Personnel management: functions, policies and roles 3-10 The Total Quality HR Approach is all about employee participation and empowerment, carried out in a sincere and wholehearted manner. Rewards are designed to meet employee needs. Employees are treated like customers. 360 degree appraisals are carried out before picking up the best performing teams. Small ideas and improvements are encouraged.

27 Personnel management: functions, policies and roles 3-12 Benchmarking Effective implementation of TQM requires benchmarking. The essence of benchmarking is striving to be the best of the best in one’s area of operations. It is a continuous process of measuring products, services and practices against the toughest competitors or industry leaders with the aim of mutual improvement. Reengineering The primary focus of TQM is on continuous improvement or ongoing incremental change. Reengineering is all about achieving this. Actually speaking, reengineering takes place when more than 70 per cent of the work processes in an organisation are evaluated and altered. The focus is on simplifying operations and making them more efficient and customer oriented.

28 Personnel management: functions, policies and roles 3-13  Give people a mission; a clear view of how to achieve that mission.  Either serve the customer superbly or don’t even try.  Change is the way of life. It is not a process, it is a value.  Technology is never really a problem. The problem is how to use technology effectively.  The wrong answer rarely kills you. What it does is waste time.  The weak link in reengineering is will.  Once people catch on to reengineering, you can’t hold them back. It’s a lifetime opportunity.  In India TELCO, TISCO, L&T, Ranbaxy and Crompton Greaves have successfully brought about radical changes through Reengineering.

29 Personnel management: functions, policies and roles 3-14 It is the integration of computer aided design, engineering and manufacturing to produce low volume products at mass production costs. In such a scenario, employees need to acquire skills and get trained constantly. One should be capable of handle a variety of tasks.

30 Personnel management: functions, policies and roles 3-15 Economic, Political And Social Challenges And HR Now-a-days, people, goods, capital and information are moving around the globe as never before. Global competition is making every firm to think in terms of gaining an edge over rivals by producing high quality goods at a very competitive price. This is where the ‘people’ dimension comes into being. Incentives, favourable work climate, team spirit, freedom to think and act independently, and a host of other HR initiatives are needed to keep talent from flying away.

31 Personnel management: functions, policies and roles 3-16  Use workforce skills and abilities in order to exploit environmental opportunities and neutralise threats.  Employ innovative reward plans that recognise employee contributions and grant enhancements.  Indulge in continuous quality improvement through TQM and HR contributions (training, development, counselling, coaching etc.).  Utilise people with distinctive capabilities to create unsurpassed competence in an area (Xerox in photocopier, 3M in adhesives, Telco in trucks, Britannia in biscuits, Nestle in coffee, McDonald’s in fast foods, etc.).  Decentralise operations and rely on self managed teams to deliver goods in difficult times (Motorola is famous for short product development cycles. It has quickly commercialised ideas from its research labs).  Lay off workers in a smooth way, explaining facts (IBM, Kodak, Xerox, AT&T, Steel and Textile firms in India etc.) to unions, workers and other affected groups. HR generally plays a key role, these days, in planning and implementing corporate downsizings, and then in maintaining the morale of the remaining employees.

32 Personnel management: functions, policies and roles Political factors 3-17  Political stability  Formation of new political parties  Influence of politicians over Productivity linked wage agreements  Political parties sympathetic to trade unionism  Opposition to VRS schemes, downsizing operations, restructuring exercises.  Freedom to show the door to unwanted people Social factors  Conducting business in a socially relevant and responsible way.  Hire qualified people or hire inexperienced local people and train them to avoid trouble?  Helping economically poor people, unemployed, underprivileged ones, etc.

33 Personnel management: functions, policies and roles 3-18  Meet legislative requirements  Offering jobs to certain sections of local community Trade unions  Demands for higher wages, better working conditions, incentives, benefits, services

34 Personnel management: functions, policies and roles 3-19 The workforce is becoming increasingly diverse now and organisations are doing their best to address employee concerns and to maximise benefits of different kind to employees with diverse educational, cultural and religious backgrounds. The diversity issues, mainly, include the following:  Composition In terms of age, caste, education, culture, region, religion  Minority groups  Economically backward groups  Displaced persons  Child labour  Contract labour  Women employees

35 Personnel management: functions, policies and roles 3-20 Ways to cheer up women employees  Provide alternative career paths  Offer extended leave facilities so that they can meet their pressing commitments according to their convenience  Allow female workers to create their own schedules and process work at home  Create flexible work arrangements  Permit job sharing especially in case of relatively independent tasks such as filing, faxing, word processing, photo copying etc. In order to benefit from diversity, managers should recognise the potential concerns of employees and make sure that the exchange between the organisation and employees is mutually beneficial and satisfying.

36 Personnel management: functions, policies and roles 3-21 INTERNAL ENVIRONMENT AND HR Organisations are also influenced by a variety of internal factors relating to strategy, culture, structure etc.  Mission and Strategy  Internal Policies  Organisational Culture  Organisation structure  Human resource systems

37 Personnel management: functions, policies and roles 3-22 Designing appropriate HR systems IssueFocus on  Nature of employment:Job/Career  Recruitment:Internal/external/both  Selection:Merit/other considerations  Training and employee :6 months/yearly development actionsRegular/irregular/need based  Degree of participation:Top down/bottom up  Incentives:Individual merit/group output  Job security:Lifelong employment/need-based jobs  Employee welfare:Be a model employer (offer those that are needed by law.)


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