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Scopes of Personnel Management Explained

The document discusses the scope of personnel management. It lists eight key functions: (1) employment, (2) training, (3) promotion policy formulation, (4) job analysis, (5) merit rating, (6) job evaluation, (7) compensation, and (8) providing services and benefits to employees. It explains that each of these functions deals with an important aspect of managing human resources and supporting employees. The scope has expanded over time as businesses have grown in size and complexity. While some personnel functions are declining in importance, other areas like manpower planning and training are increasing in prominence.

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Edwin Chinel Monares
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2K views2 pages

Scopes of Personnel Management Explained

The document discusses the scope of personnel management. It lists eight key functions: (1) employment, (2) training, (3) promotion policy formulation, (4) job analysis, (5) merit rating, (6) job evaluation, (7) compensation, and (8) providing services and benefits to employees. It explains that each of these functions deals with an important aspect of managing human resources and supporting employees. The scope has expanded over time as businesses have grown in size and complexity. While some personnel functions are declining in importance, other areas like manpower planning and training are increasing in prominence.

Uploaded by

Edwin Chinel Monares
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Personnel Management: Scopes of Personnel Management – Explained!

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personnel-management-explained/25949

Scope of personnel management:

(1) Employment Function

(2) Training Function or Development Function

(3) Formulation of Promotion Policy

(4) Job Analysis

(5) Merit Rating

(6) Job Evaluation

(7) Compensation and

(8) Providing Service and Benefits.

The scope of personnel Management was very much restricted before 20th century. The large scale
businesses operations have led to the specialisation of ail business activities. On the other hand, labour
unions are also the product of the large scale industrial organisations. Therefore, dealing with the
problems of human beings now-a-days requires specialised knowledge. It is very common to find a
separate department (Personnel Department) for tackling all human problems in the organisation.

Managers at all levels deal with the people; hence every manger must know the basic principles of
personnel management. ‘Personnel administration permeates all types of functional management, such
as production management, financial management, sales management and research management. It
applies in non- industrial organisations, government, non-profit institutions and the armed services’
(Pigors and Myers).

The ultimate responsibility of the personnel function lies with the line mangers. St is a staff function and
line responsibility. Hence it would be wrong to say that only the ‘Personnel Department’ is concerned
with the control and management of labour.

Scope of Personnel Management:

(1) Employment Function:

It covers areas connected with the employment of employees such as manpower requirements,
recruitment, selection, placement and induction.

(2) Training Function or Development Function:

In order to perform work properly, employees must be trained. This function is concerned with
increasing the efficiency of employees by enhancing their skill.

(3) Formulation of Promotion Policy:


This function deals with the formulation of policy setting out the basis of promotion (viz., seniority, merit
or both).

(4) Job Analysis:

In job analysis, factors concerning jobs are analyzed (such as skill, responsibility, working conditions,
training, qualifications etc.). It is concerned with anatomy of a job. It is a detailed study of job from all
angles.

(5) Merit Rating:

It refers to the evaluation of an employee’s performance after he has been placed on the job.

(6) Job Evaluation:

In order to know the worth of the job in terms of money job evaluation process may be undertaken.

(7) Compensation:

This function deals with the determination of fair wages for the employees. Wages may be paid
according to the time spent or units produced or there may be a combination of time and piece rate
system in the form of incentive plans.

(8) Providing Service and Benefits:

This function is concerned with the provision of good working conditions and other benefits such as
safety provisions, counselling, medical services, recreational facilities, etc. The scope of personnel
management is changing over the years.

According to Andrew F. Sikula “Changes definitely are taking place in personnel administration. Some
personnel sub-functions seem to be breaking away from personnel others seem to be new sub-areas,
while still others seem to be changing only in terms of their relative emphasis and degree of
importance.”

While importance of appraisal and wage administration is declining, certain other areas of personnel
management (Manpower planning, staffing, training etc.) are getting prominence.

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