MODULE-2: HISTORY OF HRM

(1) Discuss the objectives of Personnel Management. Describe the functional and organisational
role of personnel manager in achieving organisational goals.

Ans:- Personnel management, a critical function within organizations, aims to optimize the utilization
of human resources to achieve organizational goals. Its primary objectives include:

 Effective Utilization of Human Resources: Optimize human resources for organizational

goals.
 Maintaining High Morale and Job Satisfaction: Foster a positive work environment.
 Industrial Peace: Promote harmonious labor-management relations.
 Organizational Growth and Development: Support organizational growth and development.
 Manpower Planning: Forecast future manpower needs and develop strategies.
 Recruitment and Selection: Attract and select qualified candidates.
 Training and Development: Enhance employee skills and knowledge.
 Performance Appraisal: Evaluate employee performance and provide feedback.
 Compensation and Benefits: Develop and administer competitive compensation and
benefits.
 Building a Positive Organizational Culture: Foster a positive work environment and promote
employee engagement.

Functional and Organizational Role of a Personnel Manager –

A personnel manager, also known as a Human Resources (HR) manager, plays a crucial role in
achieving organizational goals by:

Functional Roles:
 Manpower Planning: Forecasting future HR needs and developing strategies to meet them.
 Recruitment and Selection: Identifying, attracting, and selecting qualified candidates.
 Training and Development: Designing and implementing training programs to enhance
employee skills.
 Performance Management: Evaluating employee performance and providing feedback.
 Compensation and Benefits: Developing and administering competitive compensation and
benefits packages.
 Employee Relations: Maintaining positive relationships with employees and resolving
disputes.
 Health, Safety, and Welfare: Ensuring a safe and healthy work environment and providing
employee welfare programs.

Organizational Roles:
 Strategic Partner: Aligning HR strategies with the organization's overall business objectives.
 Change Agent: Driving organizational change and managing its impact on employees.
 Administrative Expert: Ensuring efficient HR processes and compliance with labor laws.
 Employee Champion: Advocating for employee needs and well-being.

By effectively fulfilling these roles, a personnel manager contributes to organizational success by:
 Improving Employee Productivity: Investing in training and development, and providing a
positive work environment.

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 Reducing Turnover: Implementing effective retention strategies and addressing employee

concerns.
 Enhancing Organizational Culture: Fostering a positive and inclusive workplace culture.
 Mitigating Legal Risks: Ensuring compliance with labor laws and regulations.
 Driving Innovation: Empowering employees and fostering a culture of creativity.
Ultimately, a personnel manager plays a pivotal role in optimizing the organization's human capital
and achieving its long-term goals.

(2) The personnel manager is being paid by management. Is he/she, therefore, a representative of
management or personnel Discuss in detail.

Ans:- A personnel manager is a representative of both management and personnel:

 Representative of management: The personnel manager communicates management
policies and decisions to the employees. They also represent the company during training
programs.
 Representative of personnel: The personnel manager has a direct relationship with the
employees and can act as a spokesman for them. They can also help maintain relations
between the workforce and the organization.
The personnel manager is the head of the personnel department and has a better overall picture of
the company's operations. They can also assist line managers with personnel matters.

(3) Describe in brief the nature and scope of personnel function in an organisation. What are the
indicators of its working in an organisation?

Ans:- The personnel function, often referred to as Human Resource Management (HRM), is a
strategic approach to managing an organization's most valuable asset: its people. Its nature is
multifaceted, encompassing a wide range of activities aimed at attracting, developing, motivating,
and retaining employees.
Key areas within the scope of personnel function include:

 Recruitment and Selection: Identifying, attracting, and hiring qualified candidates.

 Training and Development: Enhancing employees' skills and knowledge.
 Performance Management: Evaluating employee performance and setting goals.
 Compensation and Benefits: Designing and administering pay and benefits packages.
 Employee Relations: Fostering positive relationships between employees and the
organization.
 Industrial Relations: Managing labor unions and collective bargaining.
 Health, Safety, and Welfare: Ensuring a safe and healthy work environment.
 Legal Compliance: Adhering to labor laws and regulations.

Indicators of Effective Personnel Function

A well-functioning personnel department contributes significantly to an organization's overall

success. Key indicators of its effectiveness include:

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 High Employee Morale and Satisfaction: Happy and engaged employees are more
productive and loyal.
 Low Employee Turnover: A stable workforce reduces recruitment and training costs.
 Strong Organizational Culture: A positive and supportive work environment.
 Effective Talent Acquisition: The ability to attract and hire top talent.
 High Employee Performance: Employees are motivated and achieve their goals.
 Positive Employer Branding: A strong reputation as a great place to work.
 Compliance with Labor Laws: Avoiding legal issues and penalties.
 Effective Change Management: The ability to adapt to organizational changes smoothly.
 Strong Employee Relations: Minimal labor disputes and industrial unrest.
 Data-Driven Decision Making: Using HR analytics to inform strategic decisions.

By focusing on these areas, a personnel function can significantly impact an organization's bottom
line and long-term success.

(4) What is personnel policy? Describe the important personnel policies that affect the job of a
personnel manager.

Ans:- Personnel policies are a set of guidelines and rules that govern the relationship between an
organization and its employees. These policies provide a framework for decision-making and ensure
consistency in HR practices. They cover a wide range of topics, including recruitment, compensation,
benefits, performance management, and employee relations.
Important Personnel Policies Affecting a Personnel Manager's Job
Several key personnel policies directly impact a personnel manager's role:

1. Recruitment and Selection Policies:

 Job Analysis and Description: Defines job roles and responsibilities.
 Recruitment Strategies: Outlines methods for attracting qualified candidates.
 Selection Procedures: Specifies the hiring process, including interviews, tests, and
background checks.

2. Compensation and Benefits Policies:

 Pay Structure: Determines salary ranges and pay scales.
 Incentive Plans: Outlines performance-based rewards and bonuses.
 Benefits Packages: Specifies health insurance, retirement plans, and other employee
benefits.

3. Performance Management Policies:

 Performance Appraisal Process: Defines the methods for evaluating employee performance.
 Performance Improvement Plans: Outlines steps for addressing performance issues.
 Career Development Plans: Specifies opportunities for employee growth and advancement.

4. Employee Relations Policies:

 Code of Conduct: Establishes standards of behavior and ethical conduct.
 Grievance Procedures: Provides a mechanism for resolving employee complaints.
 Discipline Policies: Outlines disciplinary actions for violations of company policies.

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5. Health, Safety, and Welfare Policies:

 Occupational Safety and Health: Ensures a safe working environment.
 Employee Wellness Programs: Promotes employee health and well-being.
 Emergency Response Plans: Outlines procedures for handling emergencies.

6. Equal Employment Opportunity (EEO) Policies:

 Non-Discrimination: Prohibits discrimination based on protected characteristics.
 Affirmative Action: Promotes equal employment opportunities for underrepresented
groups.
 Diversity and Inclusion: Fosters a diverse and inclusive workplace.

By understanding and implementing these policies, personnel managers can effectively manage
employee relations, ensure compliance with labor laws, and contribute to the overall success of the
organization.

(5) What is the purpose of a personnel programme? Is this solely in the interest of the
organisation?

Ans:- A personnel program, or Human Resource Management (HRM), is a strategic approach to

managing an organization's workforce. Its primary purpose is to optimize human capital by
attracting, developing, and retaining talented employees. By doing so, it contributes to
organizational goals such as increased productivity, improved efficiency, and enhanced innovation.

However, the benefits of a well-implemented personnel program extend beyond organizational

objectives. It also enhances employee well-being by offering opportunities for career growth, fair
treatment, work-life balance, and a positive work environment. This dual focus on organizational and
employee interests ensures a mutually beneficial relationship and fosters a sustainable and thriving
workforce.

(6) How does the personnel function change as a firm grows in size? Briefly describe each stage of
its development.

Ans:- As a firm grows, its personnel function evolves significantly. 1 Initially, in small firms, HR
responsibilities are often handled by the owner or a general manager. As the firm grows, the need
for specialized HR expertise arises.2
In the early stages of growth, a dedicated HR professional may be hired to handle basic functions like
recruitment, payroll, and employee records. The focus is on operational tasks and ensuring
compliance with labor laws.
As the firm continues to expand, the HR function becomes more strategic. 3 Intermediate-sized firms
may establish a small HR department with specialists in recruitment, training, and compensation.
The emphasis shifts to talent management, employee development, and performance management.
In large organizations, the HR function becomes a complex and strategic business partner. 4 A
dedicated HR department with specialized teams for recruitment, training, compensation, benefits,
employee relations, and HR analytics is established.5 The focus is on aligning HR strategies with
business objectives, driving organizational change, and fostering a high-performance culture.

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(7) Identify and discuss the managerial and operative functions of personnel management.

Ans:- Personnel management, or Human Resource Management (HRM), involves both managerial
and operative functions. Let's delve into each:

Managerial Functions
Managerial functions in HRM are strategic in nature and involve planning, organizing, directing, and
controlling the HR activities.

1. Planning: This involves forecasting future HR needs, setting HR objectives, and developing
strategies to achieve them. It also includes succession planning and talent management.
2. Organizing: This function involves designing the HR structure, assigning responsibilities, and
establishing reporting relationships. It also includes creating job descriptions and defining
roles.
3. Directing: This function involves leading and motivating employees, providing guidance, and
resolving conflicts. It also includes effective communication and delegation.
4. Controlling: This function involves monitoring HR performance, evaluating results, and
taking corrective actions. It includes performance appraisals, disciplinary actions, and
grievance handling.

Operative Functions
Operative functions are the day-to-day activities involved in implementing HR strategies.

1. Procurement: This involves recruiting, selecting, and hiring employees. It includes job
analysis, recruitment, selection, and induction.
2. Development: This involves training and developing employees to enhance their skills and
knowledge. It includes training programs, career development, and performance
improvement.
3. Compensation: This involves designing and administering compensation and benefits
packages. It includes salary administration, incentive plans, and benefits programs.
4. Maintenance: This involves maintaining employee morale and welfare. It includes employee
relations, grievance handling, and health and safety.
5. Integration: This involves integrating employees into the organization's culture and values. It
includes team building, communication, and conflict resolution.
6. Separation: This involves handling employee separations, including resignations,
retirements, and terminations.

By effectively performing both managerial and operative functions, HR professionals can contribute
to the overall success of an organization.

(8) Explain the coverage of personnel policies. Describe the qualities of a sound personnel policy.
Ans:- Coverage of Personnel Policies
Personnel policies are a set of guidelines that govern the relationship between an organization and
its employees. They cover a wide range of topics, including:
 Recruitment and Selection: Policies related to job analysis, recruitment methods, selection
criteria, and onboarding procedures.
 Compensation and Benefits: Policies regarding salary structures, incentive plans,
allowances, and benefits like health insurance, retirement plans, and leave policies.

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 Performance Management: Policies outlining performance appraisal methods, goal-setting,

and performance improvement plans.
 Training and Development: Policies related to employee training needs assessment, training
programs, and career development opportunities.
 Employee Relations: Policies addressing grievance handling, disciplinary procedures, and
employee welfare.
 Health, Safety, and Welfare: Policies ensuring a safe and healthy work environment,
including safety regulations, emergency procedures, and wellness programs.
 Equal Employment Opportunity: Policies prohibiting discrimination and ensuring equal
opportunities for all employees.

Qualities of a Sound Personnel Policy

A sound personnel policy should possess the following qualities:
 Clarity and Conciseness: Policies should be clear, concise, and easy to understand. Avoid
jargon and complex language.
 Fairness and Consistency: Policies should be fair and applied consistently to all employees,
regardless of their position or tenure.
 Flexibility: Policies should be flexible enough to adapt to changing circumstances and
organizational needs.
 Practicality: Policies should be practical and implementable. They should not create
unnecessary burdens or hinder productivity.
 Legal Compliance: Policies should comply with all relevant labor laws and regulations.
 Employee-Centric: Policies should consider the needs and aspirations of employees. They
should promote employee satisfaction and morale.
 Communicated Effectively: Policies should be effectively communicated to all employees
through various channels, such as employee handbooks, meetings, and digital platforms.
 Regular Review and Update: Policies should be reviewed and updated regularly to ensure
they remain relevant and effective.
By adhering to these qualities, organizations can develop sound personnel policies that contribute to
a positive work environment, improved employee morale, and overall organizational success.

(9) "Though the personnel policies guide all managers in attaining their goals, their administration
is hindered by various factors". Explain.

Ans:- While personnel policies serve as a valuable framework for managers, their effective
implementation can be hindered by several factors:

1. Lack of Awareness and Understanding:

 Insufficient Communication: If policies are not effectively communicated to all levels of
management, misunderstandings and inconsistent application can arise.
 Lack of Training: Managers may require training to understand the nuances of policies and
how to implement them effectively.
2. Resistance to Change:
 Inertia: Managers may resist changes to established practices, even if new policies are
beneficial.

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 Fear of Increased Workload: Some managers may perceive new policies as adding to their
workload.
3. Organizational Culture:
 Bureaucratic Culture: A bureaucratic culture can hinder flexibility and adaptability, making it
difficult to implement new policies.
 Lack of Trust: A lack of trust between management and employees can undermine the
effectiveness of policies.
4. Resource Constraints:
 Budgetary Limitations: Insufficient funding can limit the implementation of certain policies,
such as training programs or employee benefits.
 Staff Shortages: A shortage of HR personnel can hinder the effective administration of
policies.
5. External Factors:
 Economic Conditions: Economic downturns can impact an organization's ability to
implement certain policies, such as pay increases or new benefits.
 Legal and Regulatory Changes: Changes in labor laws and regulations can create challenges
in policy implementation.
To overcome these challenges, organizations must invest in effective communication, training, and
leadership. A strong organizational culture that values employee well-being and supports policy
implementation is also crucial. By addressing these factors, organizations can ensure that personnel
policies are effectively implemented and contribute to the overall success of the organization.

(10) "Objectives of the personnel management always contradict the objectives of the
personnel". Elucidate the statement.

Ans:- While potential conflicts may arise between the long-term strategic goals of personnel
management and the short-term needs of individual employees, effective HR practices aim to bridge
this gap. By prioritizing fairness, transparency, and open communication, HR can align organizational
and individual goals. Empowering employees, promoting work-life balance, and fostering a positive
work environment are crucial strategies to ensure that both the organization and its employees
benefit from sound personnel management.

(11) "Personnel administration is not just a line responsibility but a staff function". Discuss.
Ans:- Personnel administration, often referred to as Human Resource Management (HRM), is a
multifaceted function that involves both line and staff responsibilities. 1 While line managers are
directly responsible for achieving organizational goals and managing their teams, HR professionals
play a staff role, providing support and guidance to line managers.2

Line Responsibilities of HR:

 Recruitment and Selection: HR professionals directly engage in the process of hiring new
employees, ensuring that the right people are selected for the right roles. 3
 Performance Management: HR conducts performance appraisals, sets performance goals,
and provides feedback to employees.4
 Compensation and Benefits: HR is responsible for designing and administering
compensation and benefits packages, ensuring compliance with labor laws and regulations. 5

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Staff Responsibilities of HR:

 Policy Development: HR develops and implements HR policies and procedures that guide
the organization's HR practices.6
 Advisory Role: HR provides advice and guidance to line managers on various HR issues, such
as employee relations, disciplinary actions, and grievance handling.7
 Training and Development: HR designs and delivers training programs to enhance employee
skills and knowledge.8
 Strategic HR Planning: HR plays a strategic role in aligning HR practices with the
organization's overall business strategy.9

In essence, while HR professionals have direct responsibilities in certain areas, their primary role is to
provide support and guidance to line managers. By effectively balancing line and staff
responsibilities, HR can contribute significantly to the organization's success.

(12) Explain the qualities and qualifications necessary for a good personnel manager.

Ans:- A good personnel manager requires a blend of qualifications and qualities to effectively
manage human resources.

Qualifications:
 Educational Background: A bachelor's degree in Human Resources, Business Administration,
or a related field is often required. Advanced degrees like an MBA or a Master's in HR can be
advantageous.
 Certifications: Professional certifications such as PHR (Professional in Human Resources) or
SPHR (Senior Professional in Human Resources) can enhance credibility and expertise.
 Experience: Practical experience in various HR functions, including recruitment, training,
compensation, and employee relations, is essential.
 Knowledge of Labor Laws: A strong understanding of labor laws, regulations, and
compliance requirements is crucial.
Qualities:
 Strong Interpersonal Skills: Excellent communication, listening, and interpersonal skills are
essential for building positive relationships with employees at all levels.
 Empathy and Understanding: The ability to understand and empathize with employees'
needs and concerns is crucial for effective employee relations.
 Problem-Solving Skills: The ability to identify and resolve issues in a timely and effective
manner is essential.
 Decision-Making Skills: The ability to make sound decisions, often under pressure, is crucial.
 Leadership Skills: Strong leadership skills are necessary to inspire and motivate employees.
 Confidentiality: The ability to maintain confidentiality is essential, as HR professionals often
handle sensitive employee information.
 Adaptability: The ability to adapt to changing organizational needs and industry trends is
crucial.
A combination of these qualifications and qualities enables a personnel manager to effectively
manage human resources, contribute to organizational success, and create a positive work
environment.

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(13) Why is it important for HR management to evolve from an administrative and operational
level to a strategic level?

Ans:- HR management evolving from an administrative and operational level to a strategic level is
crucial for several reasons:

1. Aligning HR with Business Strategy:

 Strategic Partnership: HR can become a strategic partner with other business functions by
understanding and contributing to the organization's overall goals.
 Proactive Approach: HR can anticipate future challenges and opportunities, enabling the
organization to adapt and thrive.
2. Enhancing Organizational Performance:
 Talent Management: Effective talent management practices, such as recruitment,
development, and retention, can significantly impact organizational performance.
 Employee Engagement: By fostering a positive work environment and engaging employees,
HR can boost productivity and innovation.
3. Managing Change:
 Change Leadership: HR can play a pivotal role in managing organizational change, such as
mergers, acquisitions, or restructuring, by minimizing employee resistance and maximizing
acceptance.
 Organizational Culture: HR can shape and maintain a strong organizational culture that
supports the organization's values and goals.
4. Risk Mitigation:
 Legal Compliance: HR can ensure compliance with labor laws and regulations, reducing the
risk of legal liabilities.
 Employee Relations: HR can effectively manage employee relations, minimizing the risk of
labor disputes and strikes.
By moving beyond traditional administrative tasks, HR can become a strategic driver of business
success. By focusing on talent management, organizational culture, and employee engagement, HR
can contribute to the organization's long-term sustainability and growth.

(14) To be a strategic business contributor, HR management must enhance organisational

performance, expend human capital and be cost effective. Discuss how HR professionals must
balance the increasing demands made on them.

Ans:- To effectively balance the increasing demands placed on HR professionals, they must adopt a
strategic mindset. This involves aligning HR practices with the organization's overall business
strategy, focusing on talent management, and driving organizational performance. HR professionals
must also prioritize employee engagement and well-being, fostering a positive work culture. By
leveraging technology and data analytics, HR can optimize processes, improve decision-making, and
enhance efficiency. Additionally, HR must continuously develop their skills and knowledge to stay
abreast of industry trends and emerging challenges. By striking a balance between strategic
initiatives and operational tasks, HR can contribute significantly to the organization's success.

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(15) Provide two examples of companies you are familiar with, which are not using their HRM
programmers to maintain or create a competitive advantage. What specific suggestions would
you offer to them.

Ans:- One example is Walmart, a retail giant known for its cost-cutting strategies. 1 While they have a
large HR department, they often prioritize cost-efficiency over employee development and
engagement. This can lead to higher turnover rates and lower employee morale, hindering their
ability to attract and retain top talent. Walmart could improve their HR practices by investing in
employee training and development programs, offering competitive compensation and benefits
packages, and fostering a positive work2 culture.

Another example is McDonald's, a fast-food chain with a high turnover rate. Their HR practices often
focus on hiring and training new employees quickly, rather than investing in long-term employee
development. This can result in a lack of employee engagement and a high turnover rate.
McDonald's could improve their HR practices by offering career advancement opportunities,
providing ongoing training and development, and recognizing and rewarding employee
performance.

(16) Examine the following policy statements from the Tata Steel and comment whether they
meet the criteria set for a sound policy statement as explained in the text.

A. Social Accountability Policy of Tata Steel: Tata Steel, in accordance with its founding
principles, will continue to improve the quality of life of its employees and the
communities it serves.
Tata Steel will conduct its business ever mindful of its social accountability, respecting
applicable laws and with regard for human dignity Tata Steel will positively impact and
influence its partners in fostering a sense of social commitment for their stakeholders.

B. Quality Policy of Tata Steel : Consistent with the group purpose, Tata Steel shall constantly
strive to improve the quality of life of the communities it serves through excellence in all
facets of its activities.
We are committed to create value for all our stakeholders by continually improving our
systems and process through innovation. involving all our employees.
This policy shall form the basis of establishing and reviewing the Quality Objectives and
shall be communicated across the organization. This policy will be reviewed to align with
business direction and to comply with all the requirements of the Quality
Management Standard.

Ans:- The Social Accountability Policy of Tata Steel meets the criteria for a sound policy statement. It
clearly states the company's commitment to social responsibility, respects human dignity, and aims
to positively impact its stakeholders. However, it lacks specific goals and targets to measure
progress.

The Quality Policy of Tata Steel also meets the criteria for a sound policy statement. It outlines the
company's commitment to quality, customer satisfaction, and continuous improvement. It also
includes a review mechanism to ensure alignment with business direction and quality management

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standards. However, it could be further strengthened by specifying the roles and responsibilities of
different departments and individuals in implementing the policy.

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