An organization may have at its disposal latest machines, excellent raw materials, adequate money and the best quality spare parts, but the ultimate success of the organization will depend on the job performance of its people, both managers and workers. The quality of people, their skill, their motivation and their willingness to give their very best of the organization are the most vital factors that determine the productivity and profitability of the organization.
It’s a highly specialized job to deal with people. It requires a great deal of skill and expertise to attract the right kind of people fo9r the right job, develop them for their career progression and retain them on the job.
Through series of research and studies in advanced countries, it has been established beyond doubt that ‘People’ are the most important component in any organization. We are not very clear about this important factor which determines all other factors of productivity.
Beside, we may say that the personnel department of a large organization should usually perform four basic functions viz, policy formulation, advice, service and control.
Policy: The personnel man, with his specialized knowledge and skill, should be able to offer advice to line managers on a wide range of issues right form recruitment to retirement. He is there to help the line manages to do their jobs more effectively. His strength lies in his understanding about people. He has to advise on matters like recruitment, training, communication, conflict, disciplinary action, motivation, productivity, absenteeism-control, grievance handing, labor laws etc.
Service: The service responsibilities of the personnel department starts with maintenance of service records and it goes on with providing food in the canteen, medical facilities in the dispensary, uniform for employees, transport for mobility of people etc.
Control: The personnel carry out important control functions. It controls the services like food, medicine etc. it also monitors the performance of line departments to ensure that they conform to the established policies on recruitment, induction, training, transfer, promotion, disciplinary action, working hours, grievance handling, implementation of labor laws on safety, hygiene etc.
To elaborate further, we can say that the personnel department of a reasonably large organization should usually perform the following basic functions—
Developing People
Retaining People
Personnel Lapses
Personnel department is now-a-days called as Human Resource Department. This is possibly a more appropriate name for the personnel department. It sounds to be a more dynamic word.
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