Friday, August 24, 2012

Personnel Administration: Importance of human resource development; Recruitment, training, career advancement, position classification, discipline, performance appraisal, promotion, pay and service conditions; employer-employee relations, grievance redressal mechanism; Code of conduct; Administrative ethics.

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Today we are to discuss Personnel Administration which is a very important aspect of Public Administration as well as Private Administration,in fact it is the very backbone.

Personnel Administration is also popularly known as Human Resources Management.Just as people of a country are its whole and sole the same way personnel ( employees) are for an organisation to make it successful. However, manpower(raw labour/people who are able to do work) itself does not contribute to the success/development of the organisation,it has to be converted into human resources through systematic planning,adequate training and proper education. Human resource is converted to human capital through adequate administration and human resources are the most important and valuable asset and part of an organisation as over time their value never depreciates,in fact it only increases with the passage of time unlike other assets and resources of an organisation. Adequate usage of human resources/personnel automatically ensures optimum utilisation of financial,physical and technological resources.

With the emergence of democratic institutions and the welfare state,government as well as corporates' tasks are on a steep increase and so there is an increased demand for personnel at every level in terms of efficient discharge of their duties,and it is the job of the Personnel Administration department to assure that this demand is met at the right time with the suitable candidates.

Personnel Administration does not have a standard definition but still there is unanimity among writers on one that is as put by Flippo " Personnel function is concerned with the procurement,development,compensation,integration and maintenance of the personnel and their inter-relationships in an organisation for the purpose of contributing toward the accomplishment of that organisation's major goals and objectives.

Thus,Personnel Administration deals with recruitment,placement,training,disciplinary measures,curbing nepotism and favouritism,monetary and non-monetary incentives and retirement benefits of the personnel within an organisation as well as handle the nature of personnel relationships in the organisation as well as assisting the top management in negotiating with labour unions. Personnel administration also includes all those activities and functions relating to policy formulation,planning,policy implementation,social change and modernisation,administrative reforms and public relations in an organisation.

Personnel Administration is affected by the socio-economic-political environment as well. For example,in the era of welfare and developmental programmes,personnel/employees are now expected to be more efficient,effective,sympathetic and competent. People's involvement in administration is also increasing via NGOs,NPOs,Civil Society and other policies and programmes of the government.
Personnel are to perform 'line' and 'staff' functions,line functions refer to those activities related to the primary activity of the organisation and the staff functions are those which facilitate and assist the performance of line work. Like staff perform the functions of processing and supplying required number of personnel and training and development of personnel whereas those personnel perform the field and executory works of the organisations goals and objectives.

It is not a simple area of management in today's times as Personnel management/administration has to keep the motivation and morale of the personnel high every time for them to whole heartedly perform the humongous tasks they have at hand efficiently and competently as well as sympathetically.

Thus we can see that without an efficient personnel management/administration or more popularly as it is called Human Resources management contributing to Human Resources/Personnel Development, it is impossible to achieve organisational goals and become a successful organisation.

Though the concept and theory of Personnel Administration has its germination in the West,in India the scene developed via motivation by governmental efforts and managerial preoccupation with welfare concept and frustration with unsystematic recruitment practices,loss making Public Service Undertakings,growing labour unrest,loss of production,etc. It led to establishments of posts like Labour Welfare Officer/Personnel Officer in public as well as private organisations that have evolved over time since the early 1930's.

Taylor's Scientific Management was the foundation stone for the development of this field through his principle of scientific selection and systematic training and development of the worker and Gantt later emphasised on it by adding that together with the above there was also a need for obtaining the willing cooperation of the worker. The same was also emphasised by M.P Follett.

The biggest watershed came with the advent of the Human Relations revolution which made the study/theory of this field interdisciplinary by integrating sociology,psychology,industrial psychology,social psychology,etc that brought in the approach of motivation and morale.
Also a lot of events led to its growth in the practical sense like the shortage of labour and labour issues during the world wars,the Great Depression of 1930's warranted efficient personnel administration for elimination of wastage and maximum utilisation of resources for maximum benefit.


Before the process of Recruitment begins,Manpower Planning precedes it. Now first lets understand what is Manpower Planning. Manpower planning as one of the functions of Personnel Administration is of utmost importance.It is the process of assessment of an organisation's requirements in terms of number of personnel needed for a job,job definition/description,skills and specialisation it incorporates,duration for which the personnel is required,nature of work,objectives of the job in line with the objectives and goals of the organisation,etc. It is a sound manpower planning that gives adequate time for recruitment,selection and training of such personnel,in short it lays down a full blueprint/chart of processes to follow and the time period it should follow.

Once Manpower Planning is done,the process of recruitment begins. Recruitment is the process that entails the search for prospective workers and stimulating them to apply for the jobs put up by the personnel administration on behalf of the organisation. It is based on selection of the best principle where a number applicants are invited for a single job opening and then the unwanted are eliminated selecting the one for the job who suits all the prerequisites suitably. Recruitment can make a break an organisation because even a brilliant training module cannot repair a faulty recruitment. The recruitment process consists of attractive recruitment literature and publicity,finding out target sector and people,usage of scientific tests for ability and aptitude testing of prospective candidates,tapping right candidates from within the organisation as well as outside as the requirement be(sometimes only one way or combined),placement of the right man for the right job and effective probation period process and proper induction into the organisation.

Training is the continuous process of imparting and upgrading/developing professional knowledge,broader vision,correct,ethical and novel patterns of behaviour,habits and aptitudes,awareness of organisational as well as societal objectives,increasing morale and motivation and the employee's potential contribution to the same. It is a ongoing process of response to a need.

Types of Training:

There are two types of training - Formal and Informal.

a) Informal Training - Trial and error method is used and lessons are learnt from the mistakes by employees. The success of this technique of training lies on the experience and seniority of the senior officer and his/her interest in the new entrant.

b) Formal Training - It is the inculcation of administrative skills in the personnel through well defined courses. Examples are - Pre entry training,orientation training,in-service training,vocational training,etc.

Informal training helps in improving the quality of administration whereas formal training helps in the broadening the faculty of the personnel.

Other methods of training can be the lecture method,case-study method,syndicate method (group of individuals or organisations combined or making joint effort to undertake some specific duty/transaction,in this case training purpose),etc.

Every organisation and system of personnel administration must pay immense and minute attention to the training needs of employees of the organisation as it is the heart of the system.

Career advancement as a function of personnel administration is concerned with the activities that promote job growth or expansion of job roles/responsibilities.It is how an individual /employee manages his/her career within the organisation(promotion,internal job postings,etc) and between different organisations( shifting jobs,changing organisations for career growth and development/advancement) as well as providing refinement of skills opportunities and knowledge to the employees together with identifying options of growth for them. It is an ongoing and dynamic process.

The Personnel Administration dept/Human Resources management dept has the responsibility to encouraging and supporting in reviewing and re-assessing their goals and activities as well as to provide valuable feedback and learning activities or resources and can contribute significantly to the staff member's career development by supporting career development activities within the department.

The support for career development via the Personnel/Human Resource important because:
  • Current information about the organization and future trends helps employees create more realistic career development goals .
  • Focus on skill development contributes to learning opportunities .
  • Opportunities for promotion and/or lateral moves contribute to the employee's career satisfaction .
  • A greater sense of responsibility for managing one's own career contributes to self-confidence
  • Career planning and development clarifies the match between organizational and individual employee goals .
  • It's cost-effective to use the HRD(Human Resource dept./Personnel Administration) staff talent to provide career development opportunities within your department .
  • Career development increases employee motivation and productivity
  • Attention to career development helps the HRD attract top staff and retain valued employees
  • Supporting career development and growth of employees is mandated by the Philosophy of Human Resources Management .
Career development can be supported by:
  • Referring to the Employee Development & Training catalog for the career development course listings.
  • Annually, conduct an individual development plan and career discussion with employees and require other supervisors in the concerned department to do the same.
  • Hold supervisors in the respective department accountable for supporting employee development efforts.
  • Create programs and activities to provide skill development, such as job rotation, cross-training, mentoring, internships, coaching, and career strategy groups.
  • Recognize that HRD's role includes providing support and/or release time for staff members' development beyond their current jobs. Refer to the Education and Development Leave policy and the Flextime Scheduling: Guidelines and Procedures policy.
  • Support requests for alternate work schedules from staff members.
  • HRD should serve as a role model by participating in career and professional development opportunities.
  • See staff members' applications for other positions as a healthy sign of a dynamic workplace.
  • Support lateral moves within the organization.
  • Refer employees to the Staff Internship Program to explore opportunities to apply for career development internships or self-initiate an internship in an area of special interest.
  • Create job vacancy listings that allow for the most diverse applicant pool while honoring transferable skills.
Roles the department can play to attain the goal of career development/advancement of employees:

COACH: Helps employees identify strengths, weaknesses, interests, and values by maintaining open, effective communication and ongoing encouragement. Coaching can be improved by:
  • Encouraging two-way dialogue
  • Showing employees how to identify their skills, interests, and values
  • Scheduling uninterrupted career development discussions

ADVISOR: Provides organizational information, realities, and resources to employees. Can improve  advising by:
  • Helping employees develop realistic career goals based on HRD department's needs and their individual development plans
  • Helping employees understand the current opportunities and limitations on the campus
  • Advising employees on the feasibility of various career options

APPRAISER: Evaluates employees' performance in an open, candid way and relates this to potential opportunities. Can improve the appraisal skills by:
  • Providing frequent feedback in a way that fosters development
  • Conducting performance appraisals that define strengths, weaknesses, and career development needs
  • Relating current performance to future potential in realistic ways
  • Using an individual development plan as a tool for continual feedback and development

REFERRAL AGENT: Helps employees meet their goals through contacts with people and resources. You can improve your referral agent skills by:
  • Helping employees formulate development plans and consulting on strategies
  • Providing opportunities for experience, exposure, and visibility, such as committees and task forces)
  • Using personal resources who HRD would know and what the dept. knows to create opportunities
  • Assisting in seeking employees' placement lateral or vertical

In Personnel administration position classification means grouping of various positions on the basis of the commonality of responsibilities and duties. It started with the movement of equal pay for equal work. It brings orderliness into the system and makes treatment uniform to people irrespective of their caste,status,birth,age,gender,etc. It also is handy as a functional tool since it makes clear even to the incumbent about his responsibilities and duties as well as hierarchical systems formally associated with his/her position.

A set of similar/identical positions and having identical qualifications,functional and salary structure when put together form a 'class'. In India classes are further grouped into broader occupational groups called 'services' like All India Service,Central and State Services.

The Grade system of position classification is used to denote all 'classes' of positions which (though different in subject matter or kind of work) are sufficiently similar as to the level of difficulty and responsibility and level of qualifications for the job like civil engineer,accountant,geologist,etc.
Each position classification is placed under a 'class' and each class should be placed in the appropriate 'Grade'.

Advantages of position classification:
a) Facilitates Division of work.
b) Removes arbitrary standards.
c) Promotes employee equality and motivation.
d) Ensures effective Manpower planning and utilisation.
e) Lays down uniform work standards.
f) Speeds up recruitment process and indicates training needs.
g) Helps in maintaining updated personnel records.

Disadvantages of position classification:
a) Introduces element of rigidity in personnel system.
b) Under it,it is difficult to shift an employee from one position to another in the interest of the administration.
c) Tends to get stale rather soon and a lot of effort is needed to keep it up to date.
d) Constant pressure from employees to upgrade their positions.

Discipline in simple terms can be stated as the force that prompts individuals,organisations,nations,etc to observe rules and regulations and policies stipulated by the above mentioned which are deemed necessary for the effective running of the same.

How disciple is instilled in an organisation:
a)Clearly stated rules,regulations, objectives and code of conduct of the organisation which are constantly updated and reviewed.
b) No discrimination in enforcing the above.
c) Proper communication among all levels.
d) Strong disciplinary action so that indiscipline is not committed the second time.
e) Practices that breed indiscipline should be discouraged and prevented like favoritism,lack of communication,lack of leadership,low morale and motivation among staff,irregularity and non-punctuality.

Disciplinary actions to be taken and sequence of actions followed from trivial offences to serious:
a) Oral warning
b) Loss of entitlement/incentive
c) Suspension
d) Demotion
e) Appointment termination
f) Dismissal

A performance appraisal (PA) or performance evaluation is a systematic and periodic process conducted by the human resource/personnel administration that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. It happens annually in most organisations. It also considers other factors as well like behaviour,potential for future improvement,strengths and weaknesses,etc. That is it looks into professional as well as personal accomplishments within the organisation but the focus being on the former more.
It uses a number of techniques to do so like forms to fill in and rate the criteria mentioned on it,one is done by the employee of himself and what he thinks of his management and the other is filled in by the manager or superior officer of the concerned employee which then is followed by an interview with the human resource/personnel administration and the higher management.
It can lead to promotions,higher pay and job responsibilities,etc.
It helps in establishing clear communication and also informs and updates both parties of factors that can be improved upon,goal setting,performance improvement and determination of training needs of the employees.
The personnel administration should ensure a fair,transparent and just performance appraisal system to get out the positive effects of it and promote morale and  motivation by excluding arbitrary actions of higher management.

Promotion is derived from the Latin word  meaning 'to move forward'. It can be a horizontal (same level) promotion or vertical (higher position) promotion along with higher emoluments and responsibilities.
It is necessary for rewarding an employee for accomplishments and boosting morale and motivation and retain his/her services.
It should be just,fair and equal for the true spirit and benefits of the same to be yielded for the organisation.
The standard specifications should be made clear to all employees of the organisation setting forth the duties,qualifications,merit factors and ways of determining the same should be clearly outlined and specified beforehand so that there is no ambiguity regarding the same in any body's mind.
Promotion as a process is required because from time to time there are vacancies that need to be filled up in an organisation and the best are to be selected for the same from within. There are few posts and many contenders therefore the personnel administration has to be very careful and alert while carrying out the same as a bad promotion policy has major negative ramifications for the whole organisation.

Principles of promotion are:
a) Seniority principle - The employee having the maximum length of service  should be promoted once the senior officer retires/leaves. The merits are that it is easy to follow,promotes equity,filters out nepotism and favouritism,reduces unhealthy rivalry. Its drawbacks are that it does not necessarily select the best and most deserving,it leads to demoralisation of employees in matters of work and initiatives because all they will be concerned about is maximising their tenure and nothing else,etc.
 It has been agreed by many that for promotion to higher posts the principle of merit should be followed,in promotion to secondary posts there should be merit first and secondary should be seniority.and in promotion in lower level positions the principle of seniority works well because higher positions need qualities more than age to be carried out.

b) Merit Principle: It is the opposite or counter view to the seniority principle and advocates the technique of tests like aptitude and personality,etc and specific criteria to determine the best candidate for promotion amongst the respective class/grade/service/rank,etc.
There are various methods used to determine merit which are Written exams,Direction of the head of department(like the recent appointment of Cyrus Mistry as head of Tata group on the methods prescribed by the owner Mr. Ratan Tata),Efficiency ratings like production/work records and personality potential,etc. And the last is the interview method that brings out the personal as well as professional characteristics of the person spontaneously in front of distinguished panelists.

For a sound promotion system there should be a sound and just promotion policy outlined and clearly communicated to the employees and they should be provided with all the opportunities to bring them on equal footing with the other contenders as well as there should be a promotion grievance board setup with a representative if the head of organisation presiding over to hear appeals against the same.

Pay is one of the mainsprings of motivation in a society and together with appropriate working conditions it is the base of a sound organisational system and it's functioning.
A salary scale should be determined on the basis of the current and expected cost of living of an individual and his family.There should be equal pay for equal work with no discrimination at all in the same.The minimum wages benchmark should be religiously followed. Public and private jobs should have less salary disparity as possible between each other as well as within their respective same sectors. A sound and attractive incentive scheme to boost efficiency and production.

SERVICE CONDITIONS Proper leave structure,holidays list and hours of work,rest periods,staff welfare and office accommodation conditions,health care policy and housing policy should be clearly defined and communicated to the employee. The hygiene factors that affect the productivity of the employee like proper ventilation,lighting and noise reduction premises as well as proper sanitation should be taken good care of. Drawbacks like unnecessary documentation,complex policies and delay due to the same should be checked and avoided for it to function properly and keep the employees charged.

There should also be a neutral and just board/system set up for grievance redressal regarding the same in the organisation for the above process and function so that it is kept up to date and relevant with the current needs and changing times and does not become redundant leading to employee dissatisfaction and attrition at times.


Employer employee relations can be amplified and made better through the following mechanisms that are already being followed:

A) Employee Unions: From private organisations right to civil servants there have always been associations of all co-workers who come together for collective bargaining and negotiations on their behalf where an individual voice could be drowned out. This is encouraged by the govt. as well a employers in other organisations as it helps maintain that they have a concern for the employees with a view for transparency and open communication and that team work and relations are bettered leading to better quality of work and efficiency. As civil servants under the civil services rules and regulations have been denied the right to strike and participate in political activities given their sensitive positions and tremendous importance in the service of the country,therefore this is the recourse they have taken to protect themselves and make the govt. hear their grievances and solve the same. These associations have been recognised by the govt officially under central Civil service(Recognition of service association) rules,1959.

B) Joint consultative machinery: It consists of representatives from both sides of parties,that is,from the employer side as well as from the employees' side who sit across to get a means of clear communication between the two and work towards a solution unitedly and in the benefit of both. Staff councils at various ministries of govt,departmental councils in various departments,etc are examples of the same. It is a voluntary machinery where on a particular subject of disagreement the both parties sign a joint intent agreement and enter into a joint discussion machinery mode. Sometimes the respective parties also form committees to study the matter and advise them or arbitrate on their behalf if the final authority which is the cabinet rejects the joint declaration and sends back for reconsideration. Most of the times the arbitration is done by a Compulsory Arbitration Board consisting of three members where one is drawn from a panel of five names submitted by the official side that is the parties concerned,second from similar panel submitted by staff side of the National council(apex body of all joint councils in all ministries and departments in the nation consisting of 85 members,25 of whom are nominated by the govt. and rest by the staff of various associations/unions/federations,etc), and the chairman is an independent,just and neutral candidate having no connection with anyone. All of them are selected by the Ministry of Labour and the first board was set up in 1968. It adjudicates in matter relating only to pay and allowance,weekly hours of work and leave of a class or grade of employees. No individual cases are taken. Its guidelines are binding on both parties for five years until repealed by parliament on grounds of national economy or social justice.

C) Rights of public servants: Fundamental rights from article 14 to 32 listed under part 3 of the Indian constitution, can refer to link:

D) Motivation and Morale: We have discussed this in the previous article on this blog with the heading "Administrative Behaviour" , refer to link :

This topic has been discussed in a previous article of this blog (read Tribunals CAT and SAT,etc) under the heading "Administrative Law" , refer to link :

 A right code of conduct should be prescribed by organisations to put the employees/personnel on the right track and get the goals of the organisation realised because if left to the employees to do the same each one will have their own way of doing so and that will lead only to disharmony and chaos.
Code of conduct of civil servants:
a) restrictions on political activities.
b) Political neutrality.
c) Restrictions on relation with mass media,outsiders and indulging in criticism of government as well as public demonstrations and accepting gifts/presents.
d) Restrictions on matter of private business/employment,property apart from government sanctioned ones,and investments speculation that he is privy to that could cause him or any pvt organisation undue benefit(like stock market trading,etc).
e) No disclosure of Official documents/information to anyone not authorised to receive the same.

Any deviation from the above will invite strict disciplinary action which has been discussed above under the sub title of " Discipline".

Manipulation and lack of ethics lead to humongous negative effects and reduce efficiency in an organisation. Therefore the enforcement and development of administrative ethics in public servants in today's welfare state times as well as the sensitive position they occupy is of utmost priority and urgency.
The essentials to ensure the practice of ethics in administration are:
a) Faith,determination towards pursuit of excellence of service in their professional activities via methods of training and sensitisation.
b) Infusion of ethics into politics through trainings,etc so that it is passed on to their sub ordinates that are the civil servants.
c) Relations between citizens and personnel to create favourable opinion of society and people towards public services and servants.
d) Need for character building in public servants through education,adult education and functional or job responsibility literacy.
e) Impartiality should be practiced and encouraged.
f) Political neutrality in civil servants.
g) Education of people and society regarding their rights the work of public servants and redressal mechanisms available to the people against them and the government.

a) Prevention of Corruption act 1947 and 1988. Please refer:,_1988 &

b) Civil Servants Conduct Rules like All India Service Conduct Rules 1954,Central Civil Services Conduct Rules 1955,Railway services conduct rules 1956. Refer to:

c) Santhanam Committee . Refer:

d) Central Vigilance Committee & State Vigilance Committee (already discussed in previous articles) , refer to link :

e) Central Bureau Of Investigation , refer to :

f) Lok Pal and Lok Ayukta (discussed in previous articles) , refer to link :

For a clear and detailed understanding if the Administrative Reforms Commission and their recommendations till date please refer :

Retirement as a function of Personnel Administration as well as from an organisational point of view is extremely necessary as it helps increase efficiency of public services and organisations by eliminating employees from services due to old age,infirmity,inability to perform duties anymore,etc. It is essential to maintain the system of promotion as the employees have to retire at a certain age and also this policy helps bring in new and fresh blood and ideas. A sound system of pension and retirement benefits help attract and retain the best talents as they do not have to worry about their future. The basic guidelines,rules and regulations of the same have been laid down and prescribed by the state/govt. and updated from time to time and proper adherence is mandatory.


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The next article on this blog will cover:
Public Policy:
Models of policy-making and their critique;
Processes of conceptualisation, planning,
implementation, monitoring, evaluation
and review and their limitations; State theories
and public policy formulation.


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