THE IMPACT OF PERSONNEL MANAGEMENT IN PUBLIC SECTOR ON THE WORKERS PRODUCTIVITY

THE IMPACT OF PERSONNEL MANAGEMENT IN PUBLIC SECTOR ON THE WORKERS PRODUCTIVITY, A RESEARCH PROJECT TOPIC ON ACCOUNTING

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Good managers are not only effective in their use of economic and technical resources, but when they manage people they remember that these particular resources are special, and are ultimately the most important assets. People are the only real source of continuing competitive advantage. Good managers also remember that these particular assets are human beings.

The origins of the traditional concept of personnel management can be traced to the post World War One ‘welfare tradition’ of concern for the basic needs of employees. The developing and mature phases of personnel management from the 1940s to the 1970s saw an increase in the status and professionalization of the personnel function, particularly in relation to industrial relations (IR) matters (Armstrong, 1997 and Gunnigle et al, 1997).

Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with employees at work and with their relationship within the organization. According to Flippo, “Personnel management is the planning, organizing, compensation, integration and maintenance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human resource of organization.” Personnel management concerns with obtaining, organizing, utilizing and motivating the human resources required by an organization. It develops requisite organization climate and management styles to promote effective effort of cooperation and trust among all employees. This also helps the organization to meet its legal obligations and social responsibilities. To sum up, the personnel management aims at getting effective results by organizing and directing the co-operative efforts of human beings.

1.1.2 Workers Productivity

An understanding of the concept of productivity improvement programmes requires clear definition of the following concept issues, productivity, quality improvement and programmes. According to Ulrich (1997), productivity refers to a ratio of output to input.

Input may include labour hours or costs, production costs and equipment costs. Output may consist of sales, earnings, and market share. Many firms now assume or have shown that productivity is affected by employee’s knowledge, skills, abilities, attitude, motivation and behaviours.

THE IMPACT OF PERSONNEL MANAGEMENT IN PUBLIC SECTOR ON THE WORKERS PRODUCTIVITY, A RESEARCH PROJECT TOPIC ON ACCOUNTING