Human power is a living and active source of production. The hope for success in the efforts of the organization without proper planning is nothing more than hoping to construct a grand building without brick, mortar and cement. If the labor force is satisfied then any industrial establishment has the capability of climbing the highest ladder of success whereas in its absence it is truly impossible to maintain even the status quo. This is the reason that now – a days special emphasis is laid on the establishment of a separate department in a commercial venture. Also the study of its services will justify its establishment in a clearer way.
Following reasons can be presented as solid proof to justify its establishment-
1.Growth in business relations – Personnel de-
partment makes an important contribution towards development of good industrial relationships. Industrial relationship can be divided in two parts. First is establishment of good relations between management and labor and second improve the relations among employees. Personnel department also helps in providing qualified and capable workers and also develops among the workers a feeling of commitment towards their jobs. Not only this, it also advises the managers on the type of facilities that should be provided to the workers so that they can use their efforts in a more productive manner. The personnel department is continuously working towards improving the relations between the workers by insuring that the right person is appointed for the right job and the work is divided among the workers in proportion to their abilities.
2. Science in appointments – the personnel department applies science when appointing new employees so that it can practically implement the saying, “Right man for the right job and right job for each man.” This can only be possible with the setting up of a separate personnel department.
3. Constant growth in employees – the personnel department keeps making plans for the constant empowerment of the employees and is always making efforts to improve the existing conditions of the employees. For this it gives suggestions about plans for training and education of employees and develops new programs for their betterment.
4. Establishment of content in the labor force-dueto the efforts taken by the personnel management employees become content because they are confident that they will be treated equally and will be given equal opportunities of progress. Thus a separated personnel department should be set up to enhance the level of contentment in employees
5. Reduction in production cost – For long term growth of any venture setting up a separate personnel departmen is extremely important because it is through this departmen that skilled and able workers are created for future and the future of the establishment becomes bright because of capable and experienced workers.
