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PERSONNEL
MANAGEMENT
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It is that portion ofmanagement which is relatedto the management ofworkers , who are working
and their personalrelationships.
Definiti
on
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Characteristi
cs
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Establishment And MaintenanceOf Adequate Organisation
Structure. Appointment Of Efficient And
Skilled Personnel.
Arrangement for Promotion. Labour Welfare.
Labour Relations.
Objective
s
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Importance
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Principles Of PersonnelManagement
Scientific Selection
Dignity Of Labour
Maximum Individualdevelopment
High Morale Team Spirit
Effective Communication
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Functions Of Personnel
management
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Managerial
Functions
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Operative
Functions
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MAN POWER
PLANNING
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Definiti
onMan Power Planning maybedefined as a strategy for
the acquisition, utilisation,improvement andpreservation of the human
resources of an Enterprise.
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Functions relating to Humanresources.
Quantitative and Qualitativeaspect.
Inventory of Human resources.
Different aspects Of labourMarket.
Programme for Human resource
Characteristi
cs
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Rectification oforganisational errors.
Oppoturinity for preparation.
Development of management.
Increase in efficiency andImprovement in technology.
Estimation of future cost.
Basis for National lannin .
Importance Of Man PowerPlanning
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Accurate estimate of man-powerrequirements.
Helpful in recruitment andselection.
Achieving the target of
production. Employment of personnel
according to need.
Performance of other activities.
Objective
s
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Useful both for organization andnation.
Generates facilities to educate people
in the organization. Brings about fast economic
developments.
Provides smooth working even afterexpansion of the organization.
Creates healthy atmosphere of
encouragement and motivation inthe or anization.
Advantage
s
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Analysing the current
manpower inventory Making future manpower
forecasts
Developing employmentprogrammes
Design training programmes
Process Or Steps In Man
Power Planning
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Different Functions Of
Staffing
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RECRUITME
NT
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Recruitment refers to theprocess of finding possiblecandidates for a job or a
function. It has been definedas the process of searching forprospective employees and
stimulating them to apply forjobs in an organisation
Definiti
on
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Source
s
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Internal Sources OfRecruitment
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E l S Of
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External Sources OfRecruitment
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SELECTION
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Selection is the process ofchoosing from among the
candidates from within theorganization or from the outside,the most suitable person for the
current position or for the futureposition - Koontz
Definiti
on
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Flow Diagram For selectionProcess
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PLACEMEN
TS
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In the words of THE AMERICANMANAGEMENT ASSOCIATION
defines , placement is to giveassignment of theresponsibilities to an employee
for those jobs for which he isconsidered to be fittest on thebasis of selection andappointment.
Definition
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In Order To Perform The Functions OfPlacement
The Following Factors Are To BE
Considered
TRAINING AND
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TRAINING ANDDEVELOPMENT
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Training means equipping theemployees with the required skill toperform a job. The candidates are
sent for training so that they canperform the job in the expectedmanner.
Development refers to overallgrowth of the employee. It focuseson personal growth and successful
employees development.
Definiti
on
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Training AndDevelopment Cycle
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BASIS TRAINING DEVELOPMENT
MEANING IT IS AN ACT OF
IMPARTINGKNOWLEDGE OF SKILLFOR PERFORMING APARTICULAR JOB
IT IS THE PROCESS FOR
THE OVERALL GROWTHOF EMPLOYEE FORFUTURE MANAGEMENTTASKS OF INCREASINGDIFFICULTY AND SCOPE
SUITABILITY MORE SUITABLE FORTECHNICAL STAFF
MORE SUITABLE FORMANAGERIAL STAFF.
NATURE IT CONCENTRATES ONDEVELOPING THE SKILLALREADY POSSESSEDBY THE EMPLOYEES.
IT FOCUSES ONDEVELOPMENT OFHIDDEN QUALITIES OFEMPLOYEES.
METHODS
USED
ON THE JOB METHODSOF TRAINING ARE
PREFFERED.
OFF THE JOB METHODSOF TRAININGARE
PREFERRED.
M th d Of
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Methods Of
Training
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PROMOTION
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Generally, promotion iscommunicating with the public
in an attempt to influence themtoward buying your productsand/or services.
The word promotion is alsoused specifically to refer to aparticular activity that is
intended to promote the
Definiti
on
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Promotion places theemployees in a position wherean employee's skills and
knowledge can be betterutilized.
It creates and increases theinterest of other employees inthe company as they believethat they will also get their
turn.
Advantages Of
Promotion
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It can be quite costly.
Promotion also tends to
be competitive. It asks for more
responsibility and morestress.
Industrial Unrest.
Disadvantages Of
Promotion
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A business' total marketingcommunications program. is
called the "promotional mix"and consists of a blend ofadvertising, personal selling,
sales promotion and publicrelations tools.
Promotional
Mix
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Elements Of
Promotional Mix
Element Mix Advantages
Disadvantages
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Advertising Good for buildingawarenessRepetition of mainbrand and product
positioning helps buildcustomer trust
Impersonal - cannotanswer all a customer'squestionsNot good at getting
customers to make afinal purchasingdecision
Personal Selling Highly interactive - lotsof communicationbetween the buyer and
seller.Excellent forcommunicating complex/ detailed productinformation andfeatures
Costly - employing asales force has manyhidden costs in addition
to wagesNot suitable if there arethousands of importantbuyers
Sales Promotion Can stimulate quickincreases in sales.Short term tactical tool.
If used over the long-term, customers mayget used to the effectToo much promotionmay damage the brandimage
PERFORMANCE
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PERFORMANCEAPPRAISAL
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Performance Appraisal isthe process of evaluating theperformance and qualificationsof the employees in terms ofthe requirements of the job forwhich he is employed, forpurpose of placement,selection for promotion,providing financial rewards andth r .
Definiti
on
Purpose Of Performance
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To review the performance of the employeesover a given period of time.
To judge the gap between the actual and thedesired performance.
To help the management in exercisingorganizational control.
To diagnose the training and developmentneeds of the future.
To judge the effectiveness of the otherhuman resource functions of theorganization.
Helps to strengthen the relationship and
Purpose Of PerformanceAppraisal
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Featur
es
Importanc
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Importance
P d O
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Procedure Or
Steps
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ME
THO
DS
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Lack of appreciation aboutthe philosophy and
benefits of performancefeedback.
Lack of willingness of
superiors or topmanagement in adoptingthe performance appraisal.
Limitatio
ns
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JOB
EVALUATION
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Definiti
onJob evaluation is a practical technique,designed to enable trained andexperienced staff to judge the size of
one job relative to others. It does notdirectly determine pay levels, but willestablish the basis for an internalranking of jobs, balancing two goals:-
Internal EquityExternal Competitiveness
Obj ti
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Objective
s
P i i l
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Principl
es
I t
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Importanc
e
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PRE-
R
EQUI
SITES
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INDUSTRIAL RELATIONS
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INDUSTRIAL RELATIONSAND TRADE UNION
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The term Industrial Relationexplains the relationship
between the managementand employees which stemdirectly or indirectly from
union employerrelationship.
Definiti
on
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I d t i l
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Industrial
DisciplineTo maintain harmonious relationsand promote industrial peace, a code ofdiscipline has been laid down which
applies to both Public and PrivateEnterprises.It specifies various obligations for themanagement and the workers with the
objective of promoting co operationsbetween their representatives.
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d
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Trade
UnionA Trade Union is an organization of workers whohave bonded together to achieve common goals
like better working conditions.
The trade union through its leadership , bargains
with the employer on behalf of union members
and negotiates with employer.
The Trade Union may be composed of individuals ,
professional or past workers.
Objective
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Objective
s
W k P ti i ti
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Workers Participation
In ManagementAs defined by the International
Institute of Labour Studies :Workers Participation InManagement is theparticipation resulting from the
practices whichincreases the scope of employeesshare of influence in decision makingat different tires of organizational
hierarch with concomitant assumption
I t
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Unique motivational power and agreat psychological value.
Peace and harmony between
workers and management.
Workers get to see how theircontribution help in overall
growth of the company.
Participation makes them moreresponsible.
Importanc
e
Ad t
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Encourages better decision.
Helps in increasing the creativityof the employee.
It encourages in accepting theresponsibility.
It helps in settling the disputes. It helps in giving justice to the
workers.
Advantage
s
Disadvantag
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Conflicts of interest.
Weakness of Trade Union.
Limited aspirations ofworkers .
Want of knowledge . Minority group, no active
role .
Disadvantag
es
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COLLECTIVEBARGAINING
D fi iti
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It is the procedure bywhich the employer or
employers and a group ofemployees agree to theconditions of work.
Definiti
on
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Importanc
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Importanc
eDecreasein industrialdisputes
Means ofsettlement
Establishmentof industrial
peace
Maintenance
of democraticatmosphere
Increase in
labour welfare
Advantage
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Advantage
s
Disadvant
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Disadvant
ages
EMPLOYEE
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EMPLOYEECOMPENSATION
D fi iti
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It is meant to pay satisfactory wages to theworkers in exchange of their work, so thatthey can perform their task with more
inducement and inspiration.The different forms of employeecompensation are:-
1)Wages2)Incentives and Bonus3)Moral and productivity
Definiti
on
f
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Whatever is paid by the employer tothe workers engaged in production inreturn for their labour, is calledwages. The worker is compensated bymeans of payment of wages. There aretwo principal methods of wagespayment.They are :-
(a) Time Rate
(a) Piece Rate
Payment Of
Wages
*I ti W
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*Incentive Wage
PlanWe know that time rate maintains qualitybut affect quantity, whereas piece rateaffects quality but increases production.Incentive plan attempts to compromisebetween them by combining good points ofeach. In this way, both the employers andworkers are benefited and derivesatisfaction.A few incentive plans are :-
(a) Halsey Premium Plan(b) Rowan Premium Plan(c) 100 per cent plan(d) The Bedeaux or Point Plan(e) Taylors Differential piece Rate
*Profit
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*Profit-
SharingProfit-sharing is a method of industrialremuneration under which an employer agrees toplay his employees a share in the annual netprofits of the enterprise as fixed in advance. Thusprofit is no longer looked upon as the exclusiveright of the capitalist. The main features of thissystem are as follows :
1) Additional method
2) Pre-determined share3) Form of distribution4) Basis of each workers share5) Basis of sharing
*C
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*Co-
PartnershipUnder this scheme, workers arerepresented on the board ofmanagement and they also share a
profit of the concern. So it refers tosharing of control and of profit. In otherwords, co-partnership claims for allworkers that they shall share to a
certain extent in profits, capital andcontrol of the business in which theyare engaged.
MORAL
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MORAL
E
Definiti
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It is a Psychological state of a personas expressed in self-confidence,
enthusiasm, and/or loyalty to a causeor organisation.
Morale flows from the people's
conviction about the righteousness orworth of their actions and the hopesof high rewards (material orotherwise) in the future.
Definiti
on
Factors Influencing
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Factors Influencing
Morale
Significance Of
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Significance Of
Morale
CASE
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CASE
STUDY
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