introduction & a brief history of hrm

An orgn is made up of 4 resources◦Men ◦Material ◦Money Non Living◦Machinery

◦It is the human that make use of non human resources.

L. F. Urwick had remarked that

“Business houses are made or broken in the long run not by markets or capital, patents or equipments, but by men.”

As Peter F. Drucker also says

“Men, of all the resources available to man, can grow and develop.”

is the effective management of people at work◦ The goal: make workers more satisfied and

productive◦ When an organization is concerned about people,

its total philosophy, culture, and orientation reflect it

Every manager must be concerned with people, whether or not there is a human resources department

It is important to remember that the people who do the work and create the ideas allow the organization to survive

Changes experienced by organizations:◦ Growing global competition◦ Rapidly expanding technologies ◦ Increased demand for individual, team, and

organizational competencies ◦ Faster cycle times ◦ Increasing legal and compliance scrutiny ◦ Higher customer expectations

The mechanized, routine-oriented workforce is giving way to a knowledge-based workforce

HRM is process of making the efficient and effective use of human resources so that the set goals are achieved.

Acc to Flippo“ Personnel mgmt or say HRM is the

planning, organizing, directing or controlling of the procurement, development, compensation, integration, maintenance & separation of HR to the end that individual, orgnl & social objectives are achieved.”

Acc. To Decenzo & Robbins“ HRM is concerned with the PEOPLE DIMENSION in

management. Since every orgn is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organisation are essential to achieve organizational objectives. This is true regardless to the size of the organization, government, business, education, health, recreation, or social action.”

Acc to Leon C. Megginson“ From the national point of view,

Human resources are Knowledge, skills , creative abilities, talents and attitude obtained in the population.”

Whereas“From the view point of Individual enterprise, they represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitude of its employees.”

Now human resources are considered as HUMAN CAPITAL, which can be classified into 3 categories

Intellectual Capital Social Capital Emotional Capital Intellectual Capital consists of

specialized knowledge, tacit knowledge and skills , cognitive complexity , and learning capacity.

Social capital is made up of network of relationships, sociability and trustworthiness.

Emotional capital consists of self confidence, ambition & courage, risk bearing ability & resilience.

In that way, Human Resources refer to both QUALITATIVE & QUANTITATIVE aspects of employees working in an organisation.

Fairness and firmness

Tact and resourcefulness

Sympathy and consideration

Knowledge of labor and other terms

Broad social outlook

Others and Academic qualifications

Importance of HRM

attract and retain talent

train people for challenging roles

develop skills and competencies

promote team spirit

develop loyalty and commitment

increase productivity and profits

improve job satisfaction

enhance standard of living

Good HR Practices help

Functions of HRM

– Planning

– Organizing

– Directing

– Controlling

Operative Functions

P/HRM

Managerial functions:

Procurement

Job Analysis

HR planning

Recruitment

Selection

Placement

Induction

Internal mobility

Development:

Training

Executive development

Career planning

Succession

planning

Human resources development strategies

Motivation and Compensation:

Job design

Work scheduling

Motivation

Job evaluation

Performance and potential appraisal

Compensation administration

Incentivesbenefits andservices

Maintenance:

Health

Safety

Welfare

Social security

Integration:

Grievances

Discipline

Teams and teamwork

Collective bargaining

Participation

Empowerment

Trade unions

Employers’ associations

Industrial relations

Emerging Issues:

Personnel records

Personnel audit

Personnel research

HR accounting

HRIS

Job stress

Mentoring

International HRM

HRM as a central subsystem in an organization

Product Subsystem

HR Subsystem Procurement

Training Compensation

Appraisal Rewards

Marketing Subsystem

Finance Subsystem

Technical Subsystem

Objectives of HRM

Objectives of the HRM Function

Increasing employees’ job satisfaction and self-actualization Employees must feel that the job is right for their

abilities and that they are being treated equitably Satisfied employees are automatically more productive

However, unsatisfied employees tend to be absent and quit more often and produce lower-quality work

Both satisfied and dissatisfied employees can perform equally in quantitative terms


Quality of work life (QWL) is a general concept that refers to several aspects of the job, including: Management and supervisory style Freedom and autonomy to make decisions on the job Satisfactory physical surroundings Job safety Satisfactory working hours Meaningful tasks

The job and work environment should be structured to meet as many workers’ needs as possible


Communicating HRM policies to all employees: HRM policies, programs, and procedures must be

communicated fully and effectively They must be represented to outsiders Top-level managers must understand what HRM can

offer


Maintaining ethical policies and socially responsible behavior: HRM managers must show by example that HRM

activities are fair, truthful, and honorable People must not be discriminated against Their basic rights must be protected

These principles should apply to all activities in the HRM area


Managing increased urgency and faster cycle times: Firms are placing a growing emphasis on:

Increasing customer serviceDeveloping new products and servicesTraining and educating technicians, managers,

and decision makers Shorter cycle times mean less time to:

Train, educate, and assign managers Recruit and select talented people Improve the firm’s image

Learning provides a framework for decreasing cycle time

HRM’s Place in Management

The HR department must be a proactive, integral part of management and strategic planning Ascertain specific organizational needs for the

use of its competence Evaluate the use and satisfaction among other

departments Educate management and employees about the

availability and use of HRM services

HRM strategic plans must build on the firm's strengths

HRM

ACQUISITIONHRP,

Recruitment, Selection

Placement

MAINTAINANCERemuneration

MotivationHealth & safetySocial Security

IRPerformance

Appraisal

DEVELOPMENTTraining

Career developmentOrganisational Dev

Internal Mobility

CONTROLHR Audit

HR AccountingHRIS

A Brief History of HRM

HRM can be traced to England, where craftspeople organized guilds They used unity to improve working conditions

The Industrial Revolution in the 18th century laid the basis for a new, complex industrial society Changing work conditions, social patterns, and labor

created a gap between workers and owners During the world wars era, scientific management,

welfare work, and industrial psychology merged


Frederick W. Taylor, the father of scientific management, summarized scientific management as: Science Harmony Cooperation Maximum output

Industrial psychology, initiated in 1913, focused on: The worker Individual differences The maximum well being of the worker


Personnel departments were created to deal with: Drastic changes in technology Organizational growth The rise of unions Government intervention

concerning working people Around the 1920s, more organizations

noticed and acted on employee-management conflict


The Hawthorne studies (1924 to 1933): Were to determine the effects of

illumination on workers and their output Rather, it pointed out the importance of

social interaction on output and satisfaction

Until the 1960s, the personnel function was concerned only with blue-collar employees File clerk, house-keeper, social worker, firefighter, and

union trouble defuser

Evolution of the Personnel Function

Concept What is it all about?

The Commodity concept

Labour was regarded as a commodity to be bought and sold. Wages were based on demand and supply. Government did very little to protect workers.

The Factor of Production concept

Labour is like any other factor of production, viz, money, materials, land, etc. Workers are like machine tools.

The Goodwill concept Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers’ productivity

The Paternalistic concept/ Paternalism

Management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children.

Cont…

The Humanitarian concept

To improve productivity, physical, social and psychological needs of workers must be met. As Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organization is a social system that has both economic and social dimensions.

The Human Resource concept

Employees are the most valuable assets of an organization. There should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging concept Employees should be accepted as partners in the progress of a company. They should have a feeling that the organization is their own. To this end, managers must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development.

Evolution of the Personnel Function

Personnel Function in India; Changing Scenario Period Emphasis Status Roles

1920 – 30 Welfare management Clerical Welfare Paternalistic practices administrator

1990s – Incremental productivity Proactive, Developeronwards gains through human growth-oriented Counsellor

assets Coach Mentor

Problem solver

1940 – 60 Expanding the role to cover Administrative AppraiserLabour, Welfare, Industrial AdvisorRelations and Personnel MediatorAdministration Legal advisor

Fire fighting

1970 – 80 Efficiency, effectiveness Developmental Change agentdimensions added IntegratorEmphasis on human Trainervalues, aspirations, Educator

Dimensions Personnel Mgmt.

HRM

a. Nature of relations

Pluralist Unitary

b. Perception of Conflict

Conflict is institutionalized

Conflict is Pathological

c. Contract Emphasis on compliance

Beyond Contract Commitment

d. Role of procedures

Rules dominated

Culture & values dominated

e. Planning perspective

Ad hoc, reactive

Integrated, proactive

f. Level of trust Low High

g. Key relation Labour-management

Customer

h. Management’s Role

Transactional Transformational

i. Acceptability of Unions

Acceptable Not desirable

j. Basis of job design

Division of labour

Teams

k. Key People PM/IR Specialists

Line people & General Managers

l. Skill acquisition

Training & development

Learning organization

m. Reward Management

Standardized job evaluation

Performance related