INTRODUCTION TO THE ISLAMIC FRAMEWORKSESSION
ROLL. No. 10-10 (Professor)
INSTITUTE OF ISLAMIC STUDIES
UNIVERSITY OF THE PUNJAB
The Most Beneficent,
The Most Merciful,
And
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ACKNOWLEDGEMENTS

All praises to Allah Almighty, the most Merciful and the most Beneficent Who
guides me in darkness and helps me in difficulties. Without His help I cannot get my
destination. All respects to the Prophet Muhammad ( ) who enlightened my mind
to recognize my Creator. I bow my head before Allah Almighty in gratitude Who
enabled me to write this research thesis.
In presenting this research thesis I feel my first duty to extend my regards and
thanks to Mr. Prof. Dr. Muhammad Saad Siddiqui (Chairman, Institute of Islamic
Studies, University of the Punjab and my supervisor in this research project). His
scholarly guidance, illustrious advice, keen interest, encouragement and constructive
criticism were the real sources of inspiration during the completion of the thesis. He
also let a helping hand to make it comprehensive and convenient. He is the person
who not only persuaded me to finalize this work but also took great pains to improve
it. I have no word to thank him for the hard work he did to revise the manuscript.
I am also thankful to Prof. Dr. Hafiz Mahmood Akhter for his valuable
suggestions, encouragement, and moral support which helped me in all ways during
my research work. I am also thankful to the library staff of Institute of Islamic Studies,
Institute of Economics, Institute of Administrative Sciences, for their cooperation and
help in the provision of necessary data. May Allah accept their efforts and reward
them. Special thanks goes to Mr. Aurangzeb Khan Jadoon (Industrial Relations
Manager, ICI Pakistan Limited, Polyester Business, Sheikhupura) whose working
experience and knowledge in the field of personnel management helped me greatly
in improving the quality of work. Long discussions with him enlightened my mind
about current practical issues in personnel management and inspired and helped me
amending many parts of the thesis.
And finally, the support, encouragement, and prayers of my family members
and friends were absolutely critical in the completion of this thesis. I would like to
thank all of them, especially my wife who showed lot of patience while I spent time in
research work.
Today a good personnel management is the most important competitive
factor for any business organization. Personnel management is an extension to the
general management and is concerned with manpower planning, acquisition of
competent workforce, their performance appraisal, training and development and
compensating them and have good relations with them to make their fullest
contribution to the organization. In a highly competitive environment of todays
business, ignoring cultural and religious issues in people management is committing
corporative suicidal. The purpose of this research thesis is to explore the nature and
contents of personnel management in Islamic perspective. Present research thesis
is designed to answer questions such as; do Islamic teachings offer relevant
perspectives on personnel management issues? Are the treatments of personnel
management issues in Islam compatible with evolving organizational concepts? The
present research is aimed at developing a conceptual framework of personnel
management based on the Islamic principles, not only to ensure success in the
running of the business but at the same time making sure that the moral and ethical
values of Islam are observed. It addresses the modern issues of personnel
management in line with early Islamic instructions. The research work is conceptual
and theoretical in nature. A qualitative approach based on extensive review of
relevant literature and the employment of examples from Islamic history has been
used in this research thesis. It should be mentioned that this research does not
intend to show any empirical findings but it endeavours to look into the original
sources of Islam while extracting other sources of the modern approach of
management. It is tried to survey Islamic texts and treaties then compare Islamic
instructions to what is prevailing in business organizations today. As a result the
fundamental functions of personnel management are discussed according to the
socio-economic fabrics of Islam whose suitability is relevant for modern day
business operations. This research promises to open new avenues to understanding
personnel management issues in Islamic societies and organizations working under
the influence of Islamic instructions.
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CONTENTS
Introduction ………………………………………………………………..... 3
1. Ancient Times to Middle-Ages ………………………………… 8
2. Industrial Revolution and Rise of Factories ……....................... 10
3. Poor Working Conditions of Labourers ………………................ 11
4. Welfare Movement … ……………………………………………. 12
5. Labour Unions ……………………………………………………. 13
6. Scientific Management ……. …………………………………..... 14
8. Appointment of Employment officers …….……………………. 16
9. Development of Personnel Specialism ……………………….. 17
10. Emerging Trends in Personnel Management …….…………. 19
Functions of Personnel Management ……………………………………. 21
1. Employment ……………………………………………………. 21
4. Compensation and Reward Management ………………....…. 25
5. Employee Relations and Services …………………………….. 27
Role and Responsibilities of Personnel Manager ……………………. 29
1. Develops Plans and Policies …………………………………… 29
2. Advisor …………………………………………………………… 30
3. Administrator …………………………………………………….. 30
4. Coordinator ………………………………………………………. 30
5. Trainer ……………………………………………………………. 31
6. Negotiator ………………………………………………………… 31
10. Service Provider ………………………………………………… 32
Islam: A Way of Life ………………………………………………………... 41
World View of Islam ………………………………………………………... 47
Man’s Place in the Universe ……………………………………………… 53
Man’s Deputyship of Allah Almighty …………………………………… 59
Importance and Need of Divine Guidance for Mankind …………….. 64
Chapter: 3
Introduction …………………………………………………………………. 76
Rationales for Engaging in Business and Trade ……………………. 83
Islamic Business Firm …………………………………………………….. 91
1. Keenness to Earn Legitimate (Halal) Earnings ….………..… 98
2. Avoiding Un-lawful (Haram) Earnings …….…………………. 99
i. Riba (Interest) ……….…………………………………….. 100
iii. Sale of Al-Gharar (Uncertainty, Risks, Speculation) .… 101
iv. Gambling and Speculation ….…………………………… 101
v. Making Statues and Similar Articles …….……………… 101
3. Cooperation ….…………………………………………….…….. 101
Obligations on Muslim Workers ……………………………….………... 111
1. To Abide by the Contract of Service ………………………….. 111
2. Good Intention and Benevolence ………………………….…. 112
3. Capacity and Capability to Work ………………………….…… 112
4. Hard Working ……………………………………………………. 113
6. Trustworthiness and Responsibility …………………………... 115
7. Loyalty and Obedience …………………………………………. 116
8. Discipline …………………………………………………………. 117
9. Cooperation ………………………………………………………. 118
Basic Rights of Employees in Islam …………………………………….. 120
1. Safety and Security ……………………………………………… 120
2. Health and Environment ……………………………………….. 121
3. Work Nature ……………………………………………………… 121
5. The Right to Change the Place of Work ……………………… 123
6. Protection of Monetary Rights …………………………………. 124
7. Protection of Self-Respect and Privacy of Employees ……… 125
8. The Responsibility for Profit and Loss ………………………… 126
9. Security of Service ………………………………………………. 127
10. Justice and Fair play ……………………………………………. 127
11. Employee Consultation ………………………………………… 128
Chapter: 4
ISLAMIC PERSPECTIVE
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Organizational and National Culture …………………….... 138
3. Resurgence in the Muslim World ……………………………... 141
4. Superiority of Divine Guidance over Man-Made Laws ……... 142
5. Establishment of Personnel Function based on Divine
Guidance as an Obligation …………………………...…….. 143
6. Unified Goals of the Organizations and the Employees ...…. 144
7. Importance for Business Professionals and Academia ....….. 145
8. For the attainment of Blessings of Allah …………………….... 146
The Approach of Personnel Management in Islamic Perspective …. 147
Defining personnel Management in Islamic perspective ……………. 155
Distinguishing Features of Personnel Management in Islamic
Perspective ………………………………………………………….. 159
2. Pleasure of Allah Almighty-the Ultimate objective …………... 161
3. Hereafter Oriented ……………………………………………… 163
7. Concept of Halal and Haram …………………………………… 168
8. Universality ………………………………………………...…….. 170
Principles and Values of Personnel Management in Islam …...……. 173
1. Intention ……………………………………………………...…... 173
7. Equal Opportunity ………………………………………………. 181
Qualities and Character Traits of Muslim Personnel Manager …….. 186
1. Faith and belief in Allah Almighty ……………………………… 187
2. Consciousness of Allah Almighty ……………………………… 188
3. Sense of Accountability and Concern of Hereafter ………….. 189
4. Piety ………………………………………………………………. 191
6. Wisdom …………………………………………………………… 194
8. Teamwork ………………………………………………………… 196
13. Steadiness ……………………………………………………….. 202
14. Forbearance ……………………………………………………… 203
15. Trustworthiness …………………………………………………. 204
16. Truthfulness ……………………………………………………… 204
17. Sincerity ………………………………………………………….. 206
19. Gratitude and Prayers ………………………………………….. 208
20. Forgiveness and Repentance ………………………………… 209
Chapter: 5
ISLAM
II. Physical Fitness ………………………………………... 222
VI. Honesty …………………………………………………. 224
VII. Trustworthiness ………………………………………… 225
IX. Willingness, Love and Motivation to do the Job …… 226
X. Loyalty and Obedience ……………………………….. 227
XI. Discipline ……………………………………………….. 227
1. Merit ……………………………………………………... 228
2. Fairness …………………………………………………. 229
4. Equal Opportunity ……………………………………… 231
6. Truthfulness ……………………………………………. 233
2. Performance appraisal ……………………………………….. 235
Goal setting – spiritual Goals ……………………………………………. 238
Developing Performance Standards and Appraisal Criteria ………… 240
Classification of Instructions of Islam related to Performance
Appraisal ……………………………………………………………... 242
3. Allah Almightys assessment of Performance ………... 244
Justice and Fairness in Performance Evaluation ……………………. 246
Islamic model of performance appraisal ………………………………. 250
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Introduction ……………………………………………………………….. 253
Role of Motivation in Training and Development Process ………….. 257
Components of Training and Development Program in Islam ……… 259
1. Mental and Intellectual development …………………. 260
2. Spiritual development …………………………………… 264
3. Skill development ………………………………………... 268
3. Compensation and Reward Management in Islam ……… 275
An Islamic Approach to Wage Determination ………………………… 276
Levels of Compensation and Reward in Islam ……………………….. 288
1. Ideal Level of Compensation and Rewards ………….. 280
2. Minimum level of Compensation and Reward ………. 281
3. Compensation and Rewards for a Decent Living …… 282
Guidelines for an Equitable Compensation and Reward Policy …… 285
1. Wages are must in Islam ………………………………… 285
2. Wages should be predetermined at the time of
employment ………………………………………….. 287
4. Full Payment of Wages ………………………………….. 289
5. Performance based compensation system ……………. 290
6. No Discrimination in Determining the Wages ……….... 292
7. Increase in Compensation and Reward ……………….. 293
8. Balanced Structure of Compensation and Reward …... 294
9. Bonus_ Share in Profit …………………………………… 295
10. Fringe Benefits ……………………………………………. 296
Management ……………………………………………………… 299
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Relations …………………………………………………………. 305
4. Benevolence ……………………………………………… 312
5. Forgiveness ………………………………………………. 313
1. To Eradicate Oppression ………………………………... 318
2. To Restore Justice and Equality in the Workplace ...… 320
3. To Secure Right to Criticism …………………………….. 322
4. For the Fulfilment of Agreements ………………………. 323
5. To Unite the Workers and Act as a Representative Body 324
The Balanced Role of Trade Unions in Islam ………………………… 325
Islamic Approach to Conflict Management …………………………… 327
Role of State in Conflict Resolution between Employer and
Employees ………………………………………………………. 330
CONCLUSIONS …………………………………………………….. 336
RECCOMMENDATIONS …………………………………………... 342
SUMMARY ………………………………………………………...… 347
BIBLIOGRAPHY …………………………………………………….. 351
INDICES ……………………………………………………………… 368
Index of Ahadith Mubarikah ………………………………… 378
Index of Names of Personalities …………………………… 383
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INTRODUCTION
Personnel management is a branch of social sciences which represents the
modern evolutionary stage in the long tradition of managing people for the purpose
of contributing towards the achievement of individual, organizational and societal
objectives. It is a Western evolved term therefore, incorporates all the philosophical
aspects of the Western culture. The Western culture is influenced largely by the
philosophies such as rationalism, secularism, humanism, utilitarianism, materialism,
and social Darwinism. Under the influence of secularism the modern business
management concepts are divorced from religion. The secular philosophy believes in
the concept of religion as a private relationship between man and his Creator.
According to this philosophy religion is hundred per cent spiritual, completely
divorced from the material existence of man. It has laid emphasis on the spiritual
side of religious life, but has ignored its material and mundane aspects. According to
it life is divided into two water-tight compartments; private life and public life. Private
life is entrusted to Allah Almighty and public life to the temporal authorities.
Unfortunately this concept of religions has not been restricted to non-Muslims. Many
Foreign qualified persons and those Muslims, who are inspired by the „Western
Philosophy, believe that Islam and the science of management do not impact each
other. They view social sciences including „personnel management as fields of study
impartial to the religion or more accurately as the “religion free zone”. To them Islam
was founded hundreds of years before the recent technological and economic
advancements; therefore, it has nothing to say about modern scientific and social
advancements including the topic of personnel management in the modern business
context.
The thinking about Islam having no part in everyday activities is far from the
true teachings of Islam. Islam is the world religion and final guidance from Allah
Almighty for the whole of the mankind. This is the fundamental belief of Islam which
all the Muslims should believe in. Islam is not a mere religion as generally it is
understood. It is complete code of life which governs all the matters of life whether
they are religious or are of worldly nature. Islam is not restricted to a set of dogma or
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set of acts of worship. Its scope is holistic and every day matters of life fall under its
domain as well. The ideology of the Islam could be summed up in the expression:







1
“Yet there is another among them who says: Our Lord, give us good in this world and
good in the Hereafter, and save us from the punishment of Fire”.
Allah Almighty does care about His worship in the form of offering prayer,
paying obligatory Zakat, fasting, pilgrimage to Makkah and other forms of servitude
however; His concern goes much farther than these acts of worship. He cares
equally about the relationship of man with his fellow beings and how they live their
lives on this planet. Islam is, in fact, not a religion in contemporary sense. It is „Deen
word used in the Quran in the meaning of way of life and system of life. Islam does
not only tell its followers about worshipping one God and offering prayers but it tells
each and every thing related to life. It teaches how to live, how to act, how to behave
with elders and how to behave with young ones, how to eat, how to drink, etc. In
short it tells each and everything related to humans life thats why it is called as
“Deen for whole humanity”. It is complete code of life and gives golden principles for
the betterment of humanity.
From home to the work place religion plays a central role in the lives of the
Muslims. Faith in Allah Almighty and concern of the Hereafter makes a person more
responsible than an infidel. Personnel Management is considered to be one of the
most important subjects of modern times. Quran and Sunnah of the Prophet give
many principles about Personnel Management which could be helpful in this modern
age. Islam is, in fact, total surrender towards the commandments of Allah. It involves
the implementation of His commandments which He has given in the form of Holy
Quran and Sayings of His beloved Prophet Muhammad ( ). The religion such as
Islam which has come for the guidance of mankind till the end of history, how is it
possible that it would had ignored the socio-economic problems of man. All the
social problems including „people management have been addressed by Islam.
Allah Almighty has not mentioned the details of doing business and managing
1 Al-Baqarah (2): 201
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people, rather it has provided basic principles to govern the human life. There are
many principles relating to the management of people which are scattered
throughout the Islamic literature. These principles and rules were applied in early
Islamic society, but were never organized under specific management concepts. So
there is need to diffuse the concept of Personnel Management with the religion as
religious faith is the most important guarantee for the management of human beings.
Moreover, many business organizations for example Islamic banks,
madharaba and takaful companies etc. are working in Muslim countries according to
the Islamic business principles. These organizations are owned and managed by the
Muslims, they employ Muslim employees, and they deal with Islamic products and
services. It is expected that if these companies practice Islamic management
principles there efficiency and productivity will be increased through better
management of their working people. It is call of the day to guide them in this field
and introduced them the principles of management which are aligned with the
religious faith of the working people and modern needs, aspirations and requirement
of the business.
At this stage one might think why the title of thesis is “personnel management
in an Islamic framework” instead of “human resource management in an Islamic
framework”. Yes it is true that management literature has evolved from “personnel
management” to “the human resource management” or even more precisely to “the
strategic human resource management”. The reason why relatively an old fashioned
term has been used to represent the management of work people is that many
Muslim scholars object the resource approach to human beings. The main objection
is that the word „resource somehow seems to imply that human beings are being
treated like other material resources of production process such as capital and
machinery etc. The resource concept of man conveys the meaning of treating them
as „instruments of achieving organizational objectives. It means important one is the
objective for which „human resources are to be used. This concept is far below the
dignity of man and his true status in the universe.
According to Islamic teachings man is not a „resource in the sense of
Western philosophy for profit maximization. He is the vice-gerent of Allah on earth
rather than nut and bolt of machinery involved in the production process. Allah
xv
Almighty has created him in best of the mould and superior to all of the creatures on
earth. This is for the reason the term „human resource has been avoided in this
research thesis. In the management literature the terms „personnel and „human
resources are often used interchangeably so in this thesis the term „personnel has
been used synonym to the term „human resources although some minute
differences do exist.
The research thesis is divided into five chapters. Chapter one consists of an
overview of modern concept of personnel management including its definition, brief
history, and basic functions of personnel management. Second chapter describes
the ideology of Islam, its nature as a way of life, its worldview, role of man in the
universe and his position as vicegerent of Allah on earth. In the third chapter Islamic
concept of business and work is explained. Topics such as rationales for engaging in
business and trade, nature of business in Islam, and principles of business in Islam
are discussed in this chapter. Status of work and worker in Islam has been
highlighted in the chapter and separate rights and obligations of workers are also
described. In the fourth chapter various dimensions of personnel management
according to Islamic principles are analysed such as need and importance of
personnel management in Islamic context, defining personnel management in
Islamic perspective, principles of personnel management and character traits of a
Muslim Personnel Manager. The fifth and last chapter is intended to provide Islamic
principles of personnel management by covering all important functions of personnel
management such as recruitment and selection, performance appraisal, training and
development, compensation and benefits, and employee relations.
Finally, I have tried my best to prepare this thesis according to the high
standards of research. But even then it is purely a human endeavour. If there is any
deficiency in this research work it is to me, and if there is virtue and good in it,
belongs to Allah Almighty. It is an initial and humble attempt to provide insight into
the understanding of personnel management in Islamic perspective. I hope this
would be equally beneficial not only for satisfying academic curiosity but shall also
help personnel managers in discharging their responsibilities in a way which may
please Allah Almighty. I hope this research thesis would be a useful addition in the
scarce literature on the management of work people in Islamic perspective. This
xvi
humble effort will facilitate understanding the basic principles of Islam regarding
managing people in the workplace and the main points of difference between
conventional and Islamic personnel management. May Allah Almighty accept this
effort, honour it with His pleasure and make it beneficial for the readers.



REVIEW OF LITERATURE:
Keeping in view the importance of personnel and human resource
management, very useful work has been done in this field of study. However,
Personnel Management from an Islamic Perspective is a growing field. Some books
and articles are mentioned below regarding this topic.
In the recent years valuable work has been done on the subject of „personnel
management in Islamic perspective. “Islam and Business: Cross-Cultural and
Cross-National Perspectives” is primary book available on this modern concept by
Kip Becker. This book reviews important changes, cross-cultural differences, and
management issues in the turbulent Islamic business environment. The research in
this book helps in understanding the impact of Westernization upon business
practices in Islamic nations. But scope of this book is narrow and it deals with the
case study of four Islamic business environments i.e., Turkey, Jordan, Egypt, and
Lebanon. Many fundamentals issues like Recruitment Training and Development,
Performance Appraisal, Compensation and Benefits, Health, Safety and Security,
and Conflict Negotiations/ Dealing with Trade Unions are not discussed in this book.
In 1997, Munir Tayeb wrote an article in the „Employee Relations journal,
entitled “Islamic Revival in Asia and Human Resource Management”. This paper
intended to discuss the implications of the recent revival of Islamic values in certain
Asian countries for work place behaviour. It discusses the role of national culture in
organizations in general. It examines the influence of Islam on HRM by using the
findings of three studies conducted in Iran, Malaysia and the Arab Middle East. This
paper gives some useful information but fundamental issues such as Islamic concept
of HRM, HRM Functions in Islam and other core dimensions of HRM in Islam are
ignored in this article.
In his famous book “Islam and Management”, Naceur Jabnoun presented
introductory treatment of organizational behaviour and management of human
resources in Islamic context. However the scope of topic is so vast that it could not
be fully discussed in one book rather brief account of it in one chapter.
Abbas J. Alis paper entitled “Islamic challenges to HR in Modern
Organizations” appared in the journal „Personnel Review, Emerald Group Publishing
Limited, Vol. 39, 2010. This is a good attempt to clarify the relation between
employer and employee according to Islam. It deals with the treatment of HR issues
in Islam with evolving organizational concepts. This is a good initial attempt but the
concept of HRM is too vast to be treated in just 19 pages.
Another paper presented in the same Journal i.e. „Personnel Review is by
Mellahi, Kamel. Budhwar, Pawan S, “Introduction: Islam and human resource
management” published in 2010. The authors presented a model of HRM which is
distinctive from existing models of HRM. The paper examines the impact of Islamic
values on HRM practices and organizational outcomes, but more research is needed
to gain a deeper understanding of the role Islam plays at work.
A paper entitled “Islamic Revival in Human Resource Management Practices
among Selected Islamic Organizations in Malaysia” is published in the Journal
„Personnel Review in May 2011 by Hashim, J., This paper explores the extent to
which the Islamic Organizations in Malaysia practice the Islamic HRM in their
organizations. It is findings of a survey conducted in different organizations in
Malaysia to discover whether or not Muslim employees in Malaysia are aware of the
Islamic HRM practices. These findings are interesting but it does not deal with the
core issues of „Personnel Management in Islamic perspective.
In 2014, Mr. Ali Al-Kahtani published his researched article entitled “An
Application of Islamic Principles in Building a Robust Human Resource Management
System (in Islamic Countries), Al-Kahtani has discussed the basic functions of HRM
in Islamic perspective however, fundamental concepts and theory of personnel or
human resource management has not been discussed.
It is clear that there is no comprehensive research work done on the topic of
personnel management so for.
JUSTIFICATION AND LIKELY BENEFITS:
The author intends to discuss the thesis in terms of following questions.
Do Islamic teachings offer relevant perspectives on prevailing personnel
management issues?
What is the role of Islam at the work place?
What are basic principles of personnel management in Islam and how they
are implemented in organizations and what policies Islam suggest for
managing people at work?
Are the treatments of management issues in Islam compatible with evolving
organizational needs?
No research work is carried out so far to answer the questions mentioned
above. This research thesis intends to answer the questions raised above. The
questions must be answered, not simply to satisfy academic curiosity, but because
the answers will guide us in designing a policy for confronting issues of the day.
This research thesis aims to address these and other questions in line with early
Islamic instructions. The research findings would also be useful for the
academicians, researchers, policy-makers, and practitioners in recognizing
management practices in an Islamic context.
OBJECTIVES OF RESEARCH:
The present study is aimed at filling the existing theoretical research gap. The
main objectives of this research are:
To clarify concept of personnel management in Islam and to present an
outline of the general framework of personnel management in Islamic
perspective.
The research findings would help the public and the private sector
industrial enterprises of Muslim World in realizing the status of their
personnel management practices.
To analyze the role of Islam at the work place.
xix
development, compensation and reward management and employee-
relations function with reference to Islamic teachings.
To maintain ethical and socially responsible behavior in business
organizations.
It is intended to understand the relevance of Islamic principles with the
recent workplace challenges and equip the personnel managers with the
basic Islamic principles to carry out their responsibilities more effectively.
The studies show that the implementations of Islamic principles in
organizations enhance their productivity and efficiency.
To suggest personnel management policies relevant to the socio-religious
conditions of the Muslim World.
Through this research thesis, I have attempted to develop a conceptual
framework of good personnel management based on Islamic principles,
not only to ensure success in the running of the business but at the same
time making sure that the moral and ethical values of Islam are observed.
HYPOTHESIS OF RESEARCH
Based on literature review and objectives of the research following hypothesis
could be developed for the research work.
Islam gives principles for the management of work people which are different
from modern Western management thought.
Islam does not give principles to manage people at the workplace at all, and,
if it gives principles of personnel management then these principles are
similar to modern Western personnel function.
Religion of Islam can play a positive role in enhancing organizational
performance. Therefore, there is need to fuse Islamic ethical and spiritual
element to the personnel management theory.
Islam does not play any role in enhancing organizational performance so
there is no need to fuse Islamic ethical and spiritual element to the personnel
management theory.
Western personnel management function is totally compatible with the needs
and aspirations of an Islamic society and culture.
Western personnel management concept is not totally compatible with the
needs and aspirations of an Islamic society and culture so there is need to
search for management principles from the basic sources of Islam.
RESEARCH MEHTODOLOGY:
The research work is conceptual and theoretical in nature. A qualitative
approach based on extensive review of relevant literature and the employment of
examples from Islamic history has been used in this research thesis. It should be
mentioned that this research does not intend to show any empirical findings but it
endeavours to look into the original sources of Islam while extracting other sources
of the modern approach of management. It is tried to survey Islamic texts and
treaties then compare Islamic instructions to what is prevailing in business
organizations today. As a result the fundamental functions of personnel
management are discussed according to the socio-economic fabrics of Islam whose
suitability is relevant for modern day business operations. This research promises to
open new avenues to understanding personnel management issues in Islamic
societies and organizations working under the influence of Islamic instructions.
Following methods of research have been used during the research work.
The original texts of Islam; verses of the Holy Quran and sayings of the Holy
Prophet ( ) while writing this research thesis have been used. Personnel
management in Islamic perspective is still in its early stage of development as
a distinct field of study. There is constant flow of useful and valuable literature
on its different aspects and themes relating to Islamic teachings. Besides
original texts other primary sources are also used and secondary sources are
avoided as possible.
References are given in the foot notes.
While giving references firstly the name of the writer, then name of the book,
place of publishing, year of publishing and thereafter volume number and then
page number is mentioned.
xxi
Throughout this thesis the English rendering of the Qruanic verses is from
Justice (Retired) Muhammad Taqi Usmani. The format of citation of the
verses of the Holy Quran has been in the following way:
Reference of Quranic Verses is given in the following way:
At first the name of the Surah (Chapter) is mentioned, the first number in
small brackets in the parenthesis refers to the Surah number while the second
denotes the Ayah (verse) in that Surah (Chapter).
Name of Surah (Surah number): Number of Verse
Al-Fatiha (1): 3
The sayings of the Holy Prophet Muhammad ( ) are quoted preferably
from the six most authentic books of collection of hadith ( ). English
translations and hadith no. are cited according to the books of hadith
published by Darussalam: Publishers and Booksellers, Riyadh, Saudi Arabia.
Other details are mentioned in the reference of each hadith in the thesis.
References of Ahadith Mubarakah are given in the following way
Name of book, Name of chapter, Chapter number, Hadith number,
For Journals following method of reference has been adopted
Name of writer, Name of the essay, Name of Journal, Volume number,
Institute of publishing, year of publishing
A bibliography has been given at the end of the thesis in alphabetic
arrangement. The following method is used
At first popular name of the author and then rest of his name is
mentioned, then name of book, publisher, volume number, publishing
year is mentioned.
The masculine form alone is used in the text only for reasons of clarity and
ease of reading: in all cases the famine may be substituted.
CHAPTER: 1
1. Ancient Times to Middle-Ages
2. Industrial Revolution and Rise of Factories
3. Poor Working Conditions of Labourers
4. Welfare Movement
5. Labour Unions
6. Scientific Management
10. Emerging Trends in Personnel Management
Functions of Personnel Management
Role and Responsibilities of Personnel Manager
1. Develops Plans and Policies
2. Advisor
3. Administrator
4. Coordinator
5. Trainer
6. Negotiator
7. Motivator
Introduction
The world of business has progressed in many unmatched and unparalleled
ways and directions in the last few decades. It has developed technologically,
economically and industrially. For these advancements in business and industry, the
human capabilities, facilities and quality of life have also improved. Regardless of
their size, mission, market, or environment, all organizations strive to achieve their
goals by combining various resources into goods and services that will be of value to
their customers. There are number of resources available such as capital, land,
equipment, raw materials, offices etc. which play an important role in actual creation
of goods and services. But increasingly, managers clearly recognize the value of
people in the success of their businesses. 2
The success of a business demands much more than the kinds of assets
those show up on balance sheets. This is for the reason that it is believed universally
today that among other assets of an organization such as buildings, capital, patents
and technology, people are its critical assets.3 If one tries to analyse the success of
business, he would come to conclusion that besides other factors, the working class
in the world has played the dominant role in the building up of business empires. 4
The business world today is facing many challenges due to globalization and
ever-increasing competition. The companies operate in highly competitive business
environment in order to retain the edge in the market. Every organization tries to
gain a competitive advantage over its rivals. It is vital that quality of its products and
services constantly improve in ordr to satisfy the diversified requirements of tis
customers through innovation, value addition and proactive approach. Without
skilled, efficient and motivated workforce no business frim can achieve the desired
production targets and achieve its goals. It is the will and ability of the working
people which makes an organization successful.5 Many famous organizations thrive
2 DeNisi,s A. S., and Griffin, R. W., HRM: An Introduction, (New Delhi: Cenage Learning India Private
Limited, 2 nd
edition, 2011), p17. 3 Carrell, M.R., and Kuzmits, F.E., Personnel: Human resource Management, (Columbus: Merrill
Publishing Company, 2 nd
edition, 1986), p2. 4 DeCenzo, D.A., and Robbins, S.P., Fundamentals of Human Resource Management, (New Delhi:
John Wiley and Sons, Inc., reprinted by Wiley India (P.) Ltd., 8 th Edition, 2005), p34.
5 DeNisi, and Griffin, HRM: An Introduction, p17.
An Overview of Personnel Management-3 in the face of mounting competition because they pay a great deal of attention to
their people. It takes competent, dedicated, motivated personnel to make the
organization work and work effectively.6
For this reason, the need for a more efficient, economical and equitable
management of workpeople in business and industry is of much importance today
that has never been before. It is concerned with the people, with the policies and
practices that govern the ways that people are treated at work. 7 The topic of
personnel management has become the subject of increasing study and discussion
over the past few decades. A sound personnel management is very essential for
successful working of an organization. For maintaining a steady growth-curve of
industrial and business development, the most urgent need of the time is help evolve
a sound and viable system of personnel management which can ensure benefits to
both; the organizations and the employees.
6 Carrell, M.R., and Kuzmits, F.E., Personnel: Human resource Management, (Columbus: Merrill
Publishing Company, 2 nd
edition, 1986), p2. 7 Sison, P. S., Personnel and Human Resources Management, (Quezan City: Rex Printing Company,
Philippines, 2 nd
Defining Personnel Management
There is no universally accepted definitive statement of personnel
management. It is defined by experts differently, describing various aspects of
personnel management. It is very difficult to pin down an acceptable definition. The
term Personnel management consists of two words, personnel and management.
Simple reflection on the two words „personnel management does not provide much
enlightenment. In order to understand the concept of personnel management,
meanings of the two words personnel and management are discussed separately.
The word „personnel is of French origin and in the words of famous Oxford
Advanced Learners Dictionary:
“Personnel denotes the people who work for an organization”.8
According to the Merriam-Webster dictionary the word personnel is used as
plural having synonyms; help, labour force, manpower, force, pool, staff, workforce.
It is defined as:
“the people who work for a particular company or organization”,
“a department within a company or organization that deals with the
people who work for it”.
The full definition of personnel according to the dictionary is:
“A body of persons usually employed (as in a factory or organization)” 9
From the above meanings described by the two authentic dictionaries, it
becomes clear that the personnel represent labour force, work force, employees or
workers of an undertaking or an organization. An organizations personnel are the
8 Hornby A. S., Oxford Advanced Learners Dictionary of Current English, (Oxford: Oxford University
Press, 7 th edition, 2005), p1128.
9 Merriam-Webster dictionary, accessed on 4
th November, 2014.
An Overview of Personnel Management-5 people it employs to carry out various jobs, tasks, and functions on exchange for
wages, salaries, and other rewards.
Personnel management is a branch of study which is part of the general field
of management. It is not possible to understand personnel management without
reviewing the basic concepts of management. Etymologically, the word management
is used in various contexts, however when used in business context, management is
concerned with all aspects of working of a business organization. Management is the
process of efficiently achieving organizational objectives with and through people.10
In the words of Harold Koontz:
“Management is the process of designing and maintaining an environment in
which individuals, working together in groups, efficiently accomplish selected
aims”.11
The purpose of management is to formulate the objectives and policies of the
organization. It is the process of series of continuing and related activities
concentrating on reaching organizational goals by working with and through people
and other organizational resources.12 Management is responsible for the effective
and efficient planning and installation and maintenance of proper procedures to
ensure fulfilment of organizational objectives.13 An effective management process
comprises planning, organizing, staffing, leading or directing, and controlling an
organization.14 Planning is concerned with establishing goals, organizing determines
what activities will accomplish those goals, leading function ensures that right people
are on the job with appropriate skills and motivating them to high productivity, and
lastly controlling function monitors activities to ensure that goals are met.15
Having gone through the separate meanings of personnel and management it
would be now easy to grasp the meanings of the term “personnel management”.
10
DeCenzo, Fundamentals of Human Resource Management, p35. 11
Koontz, H., and Weihrich, H., Essentials of Management, (New Delhi: Tata McGraw-Hill Publishing Company limited, India, 7
th edition, 2009), p8.
12 Certo, S.C., and Certo, S.T., Modern Management, (New Delhi: PHI Learning Private Limited,10
th
edition, 2008), p7. 13
Brech, E., F., L., Management: Its nature and significance, (London: Sir Issac Pitman and Sons Ltd., 3
rd edition, 1953), p30.
14 Hitt, M. A., Black, J. S., and Porter, L. W., Management, (New Delhi: Pearson Education, Inc., 2
nd
DeCenzo, Fundamentals of Human Resource Management, p35.
An Overview of Personnel Management-6 Below are number of definitions of Personnel management presented by famous
scholars.
“Personnel management is methodical and systematic discharge of all the
activities that have to be done where people are employed, especially in large
numbers: their selection and employment; training; medical services, the
cafeteria, and safety; the administration of wages, salaries, and benefits, and
many others”.16
Glueck and Ivancevich:
“Personnel/human resource management is that function performed in
organizations which facilitates the most effective use of people (employees) to
achieve organizational and individuals goals”.17
Michael Armstrong:
the human resources required by the enterprise”.18
Dale S. Beach:
employment, manpower planning, employee training and management
development, organization planning, organization development, wage and
salary administration, health and safety, benefits and services, union-
management relations, and personnel research. Personnel management or
personnel administration is concerned with all of the above plus applied human
behavior areas such as supervision, motivation, work group behaviour,
communication and managing change”.19
16
st edition, 1986), p215.
17 Glueck, W.F., and Ivancevich, J.M., Foundations of Personnel/Human Resource Management,
(New York: Business Publications, Inc., revised edition, 1993), p6. 18
Armstrong, M., A Hand book of Human Resource Management Practice, (London: Kogan Page, 10
th edition, 2006), p2.
19 Beach, D. S., Managing People at Work: Readings in Personnel, (New York: MacMillan, 2
nd edition,
1975), p76.
“Personnel management is the planning, organizing, directing and controlling of
the procurement, development and separation of human resources to the end
that individual, organizational, and societal objectives are accomplished”. 20
Coleman:
“Personnel administration is concerned with the human resource, with the
policies and practices that govern the ways that people are treated at work, with
the direction and control of human efforts, and with the policies, programs, and
structures that underlie the employer-employee relationship”. 21
Boyce-Martin:
“Personnel management is that part of management which is concerned with
people rather than with finished products. This means being concerned with
either individuals or groups at work, workers relationships with one another and
the ways workers can best contribute to organisational effectiveness”. 22
Conclusion:
From the above quoted definitions, a clear understanding of the complex
concept of personnel management is possible. It is branch of knowledge concerned
with the management of people. It strives and suggests taking necessary actions to
develop the capacities and capabilities of the available workforce to the possible
maximum extent. It is the theory and practice of optimum utilization of available
manpower to achieve organizational goals. Personnel management is concerned
with getting better results with the collaboration of people. It is concerned with hiring
qualified and suitable staff, training and development and proper utilization of
manpower by an organization. Its primary objective is selecting, organizing,
developing, motivating, utilising and retaining the human resources required by an
organization. This also helps the organization to meet its legal obligations and social
responsibilities.
20
Flippo, Personnel Management, (New York: McGraw Hill, 5 th edition, 1980), p5.
21 Coleman, C.J., Personnel: An Open System Approach, Cambridge, Massachusetts: Winthrop
Publishers, Inc., 1 st edition, 1979, p7.
22 Boyce-Martin, J., Personnel Management, (London: Macdonald and Evans, 1
st edition, 1977), p1.
Management
Personnel management is often viewed as a modern people management
concept but its roots go back a long way. 23 Leadership, power and organization
have been matters of study and debate for thousands of years. Like other social
sciences it has been developed gradually as a distinctive field of study with the
configuration of philosophies, organizational structures and practices related to the
people management. 24 It is a synthesis of themes and concepts of social sciences
and fresh management thinking and researches carried out in the field of human
motivation. It has borrowed and absorbed ideas and techniques from a wide range of
theories and practical tools. It is indebted to sociology, psychology, management
sciences and other fields of study for its development. All these disciplines have a
major contribution in the development of todays personnel management.25 The
origin of personnel management could be classified into following stages.
1. Ancient Times to Middle-Ages
Management of people had been existed the time man become civilized.
Work and work behaviour had been practiced long before establishment of
specialized personnel management function. 26 The art of architecture that resulted
in the great temple built by the Prophet Sulaiman ( ), Pyramids built by the
Egyptians, and other magnificent constructions would not have been possible
without committed and motivated workforce.27 These mighty constructions built in the
past are a proof of division of labour and existence of activities related to people
management in the ancient times. There must be problems of hiring skilled, strong
23
Richardson, J.H., An Introduction to the Study of Industrial Relations, (New York: Routledge Inc., (first published in 1954) Reprint Edition, 2003), p25/5 24
Brunstein, I., Human Resource Management in Western Europe, (New York: Walter de Gruyter, 1995), p259. 25
Price, A, Human Resource Management in a Business Context, (London: Thomson Learning, 1 st
edition, 1997), p2. 26
Pieper, R., HRM: An International Comparison, (New York: Walter de Gruyter, 1990), P111. 27
Bedeian, Arthur, G., Management, (London: The Dryden Press, 3 rd
edition, 1993), p26.
An Overview of Personnel Management-9 and healthy manpower, managing unpleasant working conditions, and ensuring that
workers were fed, housed and paid properly.28
In most of the recorded history the authoritarian approach of people
management had been predominant. Slave owners used their workforce for
household jobs, and to carry out manual tasks to agriculture, mining and clerical
responsibilities. Slaves were squeezed for hard work by means of aggression,
aggravation and severity. Efficiency level of the slaves was low due to harsh attitude
of the masters to them.29
As the man became more civilized, the institution of slavery began to cease to
exist. The concept of division of labour came into working more distinctly and hired
labour was used to accomplish various tasks. Due to increasing needs of the self
and sustainable life new products were invented for domestic and warfare use. A
class of skilled craft worker came into existence using metal, pottery and wood for
their craftsmanship. 30
With the increase in population and human needs manufacturing started at
relatively larger levels. One person could not perform a job single handily so more
than one craftsman was required for manufacturing goods. The new comers to the
field usually underwent many years of apprenticeship under master craftsmen.31 The
apprentices lived in the workshop or home of their master, and the master took care
of their health and welfare. 32 This formed an early industry on a domestic and small
scale.33
28
Banfield, P., and Kay, R., Introduction to Human Resource Management, (Oxford: Oxford University Press, 2
nd edition, 2012), p7.
29 Benton, L.R., Supervision and Management, (New York: McGraw-Hill Book Company, 1
st edition,
1972), p18-19. 30
Benge, E., Standard Practice in Personnel Work, (New York: The H.W. Wilson Company, 1 st
edition, 1920), p1. 31
Sison, P. S., et al., Personnel Management in the 21 st Century, (Quezan City: Personnel
Management Association of Philippines, Rex Printing Company, Inc., Philippines, 7 th edition, 2003),
p8. 32
Richardson, An Introduction to the Study of Industrial Relations, p13.
An Overview of Personnel Management-10
2. Industrial Revolution and the Rise of Factories
The origin of modern personnel management lies in “The Industrial
Revolution” of the late 18th century and early 19th century. 34 The industrial revolution
began with the substitution of steam power and machinery for time consuming hand
labour. Mechanical inventions such as power loom, power engine and spinning jenny
laid the foundations for the rapid development of large scale or mass production
giving rise to the development of the factory system, which replaced old small home
industries owned and operated by craftsmen.35 Workmen and machinery were
brought together under one roof in factories where the manufacturing process could
be supervised.36
The new inventions in machinery led to tremendous change in the world of
work. In the factories manufacturing of goods were carried out on a scale and with
speed never known before. 37 With the increase in production skilled and unskilled
workers including women and children in large numbers were gradually concentrated
in factories and workshops.38 In the early days of industrialization companies rarely
took a systematic approach to manage their workers. Businesses were owned and
controlled by a single owner or by number of family members. Daily production and
employment decisions were mostly in the hands of first line supervisors and
foremen. It was the responsibility of the foremen or first-line supervisors to recruit
and select required workforce.39 The foremen and supervisors often lacked
specialized training for the management of the workforce. There only qualification for
the job was the ability to meet the production targets and allegiance and loyalty to
the employer.40
Brunstein, Human Resource Management in Western Europe, p259. 35
Sison et al, Personnel Management in the 21 st Century, p8.
36 Stern, W.M., Britain: Yesterday and Today, (London: Longmans Green and Company, 2
nd edition,
1963), p87. 37
Sison, et al, Personnel Management in the 21 st Century, p8.
38 Robinson, Medieval and Modern Time, USA, n.d., p583-85.
39 Kaufman, B.E., et al, (Editors), Industrials Relations to Human Resources and Beyond: The
Evolving process of Employee Relations Management, (M.E. Sharpe, 2003), p148. 40
Brunstein, Human Resource Management in Western Europe, p262.
An Overview of Personnel Management-11
3. Poor Working Conditions of Labourers
During the „industrial revolution radical changes in the concept of human work
occurred. Work moral and work attitudes become fully accepted in the society. The
individual potential to work became a good, negotiable in the labour market.41
However, the life of working class was miserable and filled with many challenges.
Early period of industrialization has been characterized and dominated by the poor
conditions of the working class. During the early part of twentieth century working
conditions in European and American factories were extremely adverse. Most of the
workers lived in immense poverty in their small homes. According to orthodox
management practice, workers were paid minimum possible salaries with no
additional benefits. Fatal accidents of workers including children and women were
common. 42 The government adopted the policy of free economy; as a result the
rapid growth of the industry was uncontrolled and ungoverned. These unfavourable
working conditions, low wages, long working hours and independence of
government produced dissatisfaction among the workmen. 43
In search of greater profits employers gave little attention towards the working
conditions of the employees. Child and women labour was common in factories
because they demand lower salaries than skilled workers.44 They had little job
security, often worked long hours and were used for such highly hazardous tasks as
cleaning the machinery. They suffered from many industrial diseases due to
overcrowded and unhealthy workshops. They also have to bear the tyrannies and
oppression done by the foremen and overseers. Employers were keen to meet
production targets rather than satisfy workers demands.45
41
Witzel, Management: The Basics, (New York: Routledge, 2004), p74. 43
McFarland, Personnel Management: Theory and Practice, (New York: Macmillan, 1968), p560. 44
Ramsay, Social and Industrial History of Britain, (London: W. and R. Chambers Limited, 1 st edition,
1926), p197. 45
Mantoux, P., The Industrial Revolution in the Eighteenth Century, (London: Methuen and Company Limited, n.d.), p410-17.
An Overview of Personnel Management-12
4. Welfare Movement
As the working conditions of work people became more and more adverse
many leading employers, especially those of Quaker origin, due to their religious and
social beliefs introduced welfare policy in their organizations. It is one to which
personnel management owes its roots. 46 Quakers and many other enlightened
employers were concerned for the morals and working conditions of the people
working in their organizations. They established the provision of health and
education as part of their role as responsible employer. 47 They employed „welfare
officers sometimes called „welfare secretaries often ladies of the employers family,
to safeguard the rights of women and children in their factories. 48 The main role of
the welfare officers was to administer and distribute the benefits such as canteen,
medical provision and sick pay to deserving female employees.49
The employers duty of care and charity combined a concern for the moral
and physical well-being of employees with an underlying means of information and
control over the workforce. By the end of the nineteenth century, welfare officers
began to be formally appointed, and the formalization of the activity had begun.50
During The First World War (1914-1918) government made it compulsory to appoint
welfare officers in the Ministry controlled establishments.51 The activities of welfare
officers were mainly related to the protection of rights of workers however it was felt
that their role was often contradictory to the worldview of senior managers. They
were considered as advocates of the workers and earn inferior status and low
salaries in the organizations.52
Karen Legge, Human Resource Management: Rhetorics and Realities, (New York: Palgrave Macmillan, Anniversary edition, 2005), p52. 48
Witzel, Management: The Basics, p74. 49
Legge, Human Resource Management: Rhetorics and Realities, p52. 50
Brunstein, Human Resource Management in Western Europe, p261. 51
CIPD, The History of human resource management (HRM), accessed on 10 th October, 2014
http://www.cipd.co.uk/hr-resources/factsheets/history-hr-cipd.aspx#link_2 52
Price Allen, Human resource Management in a business context, (London: International Thomson Publishing Company, 1
st edition, 1997), p7.
5. Labour Unions
Miserable working and living conditions of workers ultimately led to the
foundation of labour unions demanding radical reforms. Workers began to realize
that the individual worker is not strong enough by himself to bargain and if they were
united, can gain much strength to compete the tyranny of the employers.53 Workers
formed labour unions in order to protect themselves by dealing in a body with their
employers.54 The main demands of labour unions were improvements in the working
conditions, fixed working hours, just pay and benefits and disciplinary actions etc. It
was a difficult challenge and workers battled for a long time to organize into officially
recognized unions.55 Until the 1930s, unions grew slowly and struggled hard for their
existence as the employers strongly resisted the organization of workers into labour
unions. 56
The early period of labour unions is characterized by the violent and bloody
industrial disputes with employers.57 Labour unions often used the weapons of
strikes, boycotts and other techniques to their cause to be conciliated.58 The
members of both sides were often violent and always wholly aggressive. Due to
hostile relations between employer and employees governments started to
intervene. Slowly state integrated as third party and granted more rights and security
to individual worker through legal reforms. These legislations improved working and
living conditions of workers by means of industrial training, joint consultation and
collective negotiation.59 Enlightened employers too observed that time lost during
strikes severely affect the efficiency and productivity.60 It resulted in the reforms in
the management of employees in the workplace.
53
Robinson, Medieval and Modern Time, p590. 55
Sison, et al, Personnel Management in the 21 st Century, p8.
56 McFarland, Personnel Management: Theory and Practice, p560.
57 Kaufman, Industrials Relations to Human Resources and Beyond: The Evolving process of
Employee Relations Management, p149. 58
McFarland, Personnel Management: Theory and Practice, p560. 59
Pieper, HRM: An International Comparison, p111. 60
Witzel, Management: The Basics, p74.
An Overview of Personnel Management-14
6. Scientific Management
Scientific management is nothing but a set of principles designed to enhance
worker productivity.61 In 1911, F. W. Taylor, an American engineer, introduced his
classic management book „The Principles of Scientific Management. Taylor
observed that the greatest wastage of resources occurred at the part of workers.62
Having born this idea in mind he systematically dedicated his efforts to improve
efficiency and speed by using time and motion studies, stopwatch methods of
measuring work and other scientific techniques. It includes combination of detailed
task specifications and selection of the „best man for the job.63
According to scientific management imposition of discipline is more important
than technical knowledge. Workers are instructed clearly by means of simplified
procedures and precise instructions to produce „one best way for any task.
Employees are not allowed to think, bring in new ideas and innovation about their
jobs.64 Taylor introduced „differential piece-rate system, whereby workers would
receive a higher rate of pay per piece produced after the daily output standard had
been achieved.65
The ideas followed by Taylor and his colleagues were well accepted and
recognized by industry which paved the way for the researches in industrial
management that followed them.66 Scientific management integrated industrial
engineering, motivation, organizational and co-ordination aspects and ideological
engineering successful to boost individual and organizational outcomes.67
61
Taylor, Principles of Scientific Management, Harper Brothers, New York, 1911, p5. 63
Benton, Supervision and Management, p27-31. 64
Price, Human resource Management in a business context, p4. 65
Carrell, Personnel: Human resource Management, p3. 66
Sison, Personnel and Human Resources Management, p6. 67
Pieper, HRM: An International Comparison, p111.
An Overview of Personnel Management-15
7. Human Relations Movement
The evolution of personnel management has to acknowledge the famous
Hawthorne Studies carried out at the Western Electric Company Chicago.68
Hawthorne studies sponsored by „The Western Electric Company between1927-
1932 were conducted to find out how productivity might be affected if working
conditions were varied. The research show that group standards and sentiments
were more important determinants of a workers output than the wage incentive
plan.69 It was discovered that workers unlike machines, have feelings and are
motivated by human needs and wants. If workers are satisfied and happier could be
proved more productive70. It also showed the importance of employee participation in
decision making and increased face-to-face dialogue on lower management levels.71
Hawthorne researchers discovered that employees feelings, emotions, and
sentiments were strongly affected by work conditions which can in turn, have a
significant impact on productivity.72
The “Hawthorne Studies” started the human relations movement that
dominated the management thinking in the next three decades.73 The human
relations movement produced some influential theories on the motivation of human
performance. Abraham Maslow presented his popular “hierarchy of human needs
theory” and Douglas McGregors well known Theory X and Theory Y framework also
grew from the human relations movement.74
68
DeCenzo, Fundamentals of Human Resource Management, p40. 70
DeNisi, HRM: An Introduction, p23. 71
Sison, P.S., Personnel and Human Resources Management, p7. 72
Carrell, Personnel: Human resource Management, p4. 73
DeNisi, HRM: An Introduction, p22. 74
Ibid, p23.
An Overview of Personnel Management-16
8. Appointment of Employment officers
With the complexity and expansion in the businesses hiring needs become
more and more complicated. Moreover, bitter disputes between employers and
labour unions were common. Bargaining with labour unions was seen to be a mans
role. Therefore male „employment officers or sometime called „labour officers were
appointed in the large undertakings especially in the engineering industry to look
after the matters related to the manpower.75 „Employment officers or „labour officers
dedicated their whole time to labour problems such as recruitment, maintaining
discipline, dismissal and industrial relations at plant level amongst unionized and
non-unionized workers. They advise chief executive on formulating labour policy and
ensuring its uniform application in the organization.76
Employment officers introduced orderly procedures, accurate records and
departmentalization of routine functions, interviewed prospect employees, kept track
record of “problem workers” and assigned new hires to departments where they
were needed. 77 With the emergence of the concept of welfare state, governments
changed their attitude towards workers and issued various regulations to provide
basic rights and protections for workers.78 Employment managers had to interpret
the directives from the government regarding employment of civilians in wartime and
aspects related to industrial relations and dismissals. However, their main objective
remained to implement the principles and techniques of scientific management and
to increase efficiency and productivity of workforce by means of smooth industrial
relations. 79
Legge, K., Human Resource Management: Rhetorics and Realities, p53. 76
Richardson, An Introduction to the Study of Industrial Relations, p25. 77
Kaufman, Industrials Relations to Human Resources and Beyond, p148. 78
Legge, Human Resource Management: Rhetorics and Realities, p53. 79
Carrell, Personnel: Human resource Management, p3.
An Overview of Personnel Management-17
9. Development of Personnel Specialism
After “The Second World War” employment function and welfare work were
combined into an integral whole under the broader term „personnel management. By
1945 thousands of personnel managers were employed to plan and manage
recruitment, selection and training of workers, absence and dismissals and negotiate
with labour unions on the issues like pay rates and industrial relations.80 In the next
three decades with the change in technology nature of jobs became more complex
requiring more technical knowledge and greater skills. Personnel mangers applied
techniques of occupational psychology to assess individual skills and abilities more
accurately. More attractive salaries and incentive schemes were introduced and
theories relating to motivation, leadership and organizational development were
practiced to enhance workers productivity and efficiency.81
Government legislation amended much of the initial regulations and extended
it to cover contracts of employment, training, health and safety, racial and gender-
based discrimination, individual rights at work and union recognition.82 The
personnel professionals need to be aware of the laws that provide background to the
formal relationships between trade unions and employers.83 Due to radical attitude of
the trade unions in these decades the personnel managers role became often that
of fire-fighters.84
As the responsibilities of the personnel mangers grow in importance and
complexity a genuine need was felt that capabilities of personnel managers should
also grow. The personnel managers should become professionals who can
effectively contribute to organizational goals. The rising demand for professionalism
in personnel has led to the creation of several educational programs designed
specifically to prepare individuals who can discharge their duties effectively.
Personnel management as a discipline started to be taught widely in business
schools. Several colleges and universities created graduate and undergraduate
80
Ibid, p264. 83
Brunstein, Human Resource Management in Western Europe, p266.
An Overview of Personnel Management-18 programs major in personnel management.85 Research began on how employees
behaved and performed in the workplace, and personnel management received its
first theoretical foundation.86 As techniques and practices become more
standardized personnel methods became more sophisticated, especially in the areas
such as recruitment and selection, training, job descriptions and person
specifications as well as job evaluation.87
Interest in personnel management has been shown by the formation and
development voluntary organizations in Britain and similar bodies in other countries
such as „The Institute of personnel management, the Industrial Welfare Society, the
National Institute of Industrial Psychology, the Industrial Health Research Board
etc.88 In 1994 the Institute of Personnel and Development was formed through the
merger of the Institute of Personnel Management with the Institute of Training and
Development. In 2003 IPD was awarded chartered status to over 37000 full
Members, Fellow and Companions of the Institute. Recently the membership of
CIPD exceeds 135000 and growing membership in 120 countries around the
world.89
85
Witzel, Management: The Basics, p75. 87
Brunstein, Human Resource Management in Western Europe, p262. 88
Richardson, An Introduction to the Study of Industrial Relations, p17. 89
CIPD, History of Human Resource Management (HRM), accessed on 10 th October, 2014,
10. Emerging Trends in Personnel Management
Evolving through many stages personnel management has now become a
well-defined area of people management.90 Business organizations are experiencing
a very real change in attitude regarding personnel activities. 91 Recent economic
pressure and rising expectations from all stakeholders have put many challenges to
the personnel management.92 As business has grown from regional to international
the personnel management has to adopt new and wider perspectives. There is need
to evolve the systems of personnel management responsive to todays challenges.93
Radical changes in business structures and socio-economic conditions have
changed the balance of power from workers to the employers. Businesses have
moved away from long term career paths and rigid hierarchies to short term, part-
time and contract workers. There is need of a framework which can comprehend and
justify these innovative practices.94
The emerging trend in personnel management is clearly toward the adoption
of the human resource approach. According to human resource approach the
employees are investments which provide long-term rewards to the organization in
the form of greater productivity.95 Personnel management has modernized and
repacked to enhance the status of personnel managers. 96 It has elevated the status
of personnel managers in the organizations and their job requiring a new level of
sophistication.97 In American usage the two expressions „personnel management
and „human resource management are virtually synonymous.98 Most of the functions
of personnel management remained so, however, new problems of human resource
management include productivity improvement, the quality of working life, equal
employment opportunity and the increased use of computers.99
90
Price, Human Resource Management in a Business Context, p8. 91
Sison, Personnel and Human Resource Management, p1. 92
Banfield, Introduction to Human Resource Management, p7. 93
Sison, Personnel and Human Resource Management, p1. 94
Price A., Human resource Ma