In every organization there are two distinct type of elements- material and human. Material elements consist of machines, raw materials, furniture, buildings, finance etc. The human elements work with the machine or materials to make the organization running. Human element therefore is more important. Taylor pointed out while introducing his principle of scientific management that management would mean dealing with men, money, machine, materials and method of which men should be the predominant factor. There are two significant characteristics of human element which make human element different from and more important than material elements. Firstly, as Denyer says, “materials, machines and even offices themselves can be replaced, and any risk involved can be replaced nearly so easily”. It is clear from the statement that (a) it is difficult to get a loyal team of workers, (b) it is difficult to replace it and (c) the risks arising out of human element can not be protected by insurance (since men can do harm deliberately ). Secondly, it has to be noted that there is an end of improvement of efficiency or quality of material element but there is as such no end of improvement of efficiency of quality of human element. Man lives to learn throughout his life. The importance of human element is now-a-days largely felt with the development of behavioral science.
the members of the staff working at different levels of an organization are collectively known as “personnel “. Personnel management denotes the management of human elements or man-management and obviously, the most difficult part of area management id management of human beings. It is more difficult to manage than extraction of minerals, finance, sales or marketing. But it is highly necessary to make best use of human efforts. “it involves”, to quote the language of Denyer again, “retaining the interest and loyalty of staff while obtaining the maximum from them. It is partly applied to psychology, partly custom, partly law and partly science”. According to Newman, Summer and Warren, personnel management entails, and providing a variety of fringe benefits to personnel”. Management means getting the things done by and through other people. This is possible subject to following three types of satisfaction enjoyed by an individual:-
(a)Economic satisfaction of getting a reasonable remuneration and standard of living
(b) Social satisfaction of working in group; and
(c) Individual satisfaction of efficiently discharging his own duties.
Personnel management is that kind of area management – which seeks to see that these are achieved. It seeks to combine three aspects – the welfare aspect, the labour aspect and the industrial relations aspect. Personnel management is related to people at work and to their relationship with the organization. It applies practically to all fields of employment. It is concerned with all the people working in an organization and not to any particular group. Nor does it distinguish “labour” and “staff”.
there are three distinct objectives of personnel management:
(i) to maintain good relationship. This was the idea which developed in the western countries during the great depression in between the two world wars.
(ii) To make a person contribute his maximum to the organization
(iii) To ensure the health, safety and welfare of all the persons to boost their morale.
It has been rightly said by British Institute of Management that “the test of the quality of personnel management is the spirit of a business, the morale of all concerned with it”.