1HUMAN RESOURCE MANAGEMENT intro

8/7/2019 1HUMAN RESOURCE MANAGEMENT intro

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HUMAN RESOURCE

MANAGEMENT

Concept & Macro levelScenario


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INTRODUCT

ION

Term Human Resource may be definedas the total knowledge, skills, creativeabilities, talents and aptitudes of anorgs workforce, as well as the values,attitudes, approaches and beliefs of the

individuals.


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Flippo defines that HRM is the planning,organizing, directing and controlling of theprocurement, development, compensation,integration, maintenance and reproductionof human resources to the end that

individual, organizational and societalobjectives are accomplished.


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Acc to Ivancevich & Glucck HRM isthe function performed in organizationsthat facilitates the most effective use ofpeople (employees) to achieveorganizational and individual goals.

Similar terms personnel, people atwork, manpower, staff, employees etc.


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Features of HRM

PEOPLE ORIENTED: employees andgroups both; their behavior, emotional and

social aspects.

COMPREHENSIVE FUNCTION: coversall levels and categories of employees.

Workers, supervisors, managers,directors. Also all types of organizations inthe world.


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INDIVIDUAL ORIENTED: under hrm allemployees are considered as individuals

to provide services and programmes tofacilitate growth. Concerned with thedevelopment of human resources i.e.knowledge, capability, skill,

potentialities and attaining andachieving employee goals.


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CONTINUOUS FUNCTION: acc toGeorge R Terry it cannot be turned on

and off like water from a faucet; it cannotbe practiced only one hour each day orone day each week; requires constantalertness and awareness of human

relations and their importance in everydayoperations.


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A STAFF FUNCTION: hrm isresponsibility of all line managers and a

function of all staff managers in anorganization. Hrm manager do notmanufacture or sell goods but contribute tothe growth of an organization by advising

the operating departments on personnelmatters.


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PERVASIVE FUNCTION: hrm is thecentral sub-function of an organization

and it permeates all type of functionalmanagement viz. production mgmt,marketing mgmt and financial mgmt.

CHALLENGING FUNCTION: due todynamic nature of people. Hrm aims atsecuring unreserved co-operation from allemployees to attain predetermined goals.


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DEVELOPMENT ORIENTED: Individualemp goals consists of job satisfaction,

job security, high salary, attractivefringe benefits, challenging work, pride,status, recognition, opportunity fordevelopment etc. Its concerned with

developing potential of employees, so thatmax satisfaction from their work gives bestefforts to the org.


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Stages in Evolution of HRM

Scientific

Management

Era

Industrial

Psychology

Era

Paternalistic

Era

Industrial

Revolution Era

Human

Relations Era

Behavioral

Science Era

Personnel

Specialists EraWelfare Era


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Concept

Evolution of HRM EVOLUTION OF PERSONNEL MGMT &

HR APPROACH

PM gained popularity in the 1960s, but itsorigin dates back to around 1800 BC whenthe concept of min wage rate was

included in Babylonian Code ofHammurai.


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Foundation dates back to the era ofIndustrial Revolution when large scale

production was taken up as a result of theinvention of steam engine & severalmachines and problems were faced by

factory owners in dealing with theirworkers.


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Industrial revolution (late 18th & early 19th

century) is characterized by thedevelopment of engineering; chemical;power driven machines.

Growth of Trade unionism: rise of factorysystem, increased problems faced byworkers formed trade unions to securebetter wages & better conditions of work.

Weapons used were strikes, slowdowns,walkouts, boycott etc led to Emp grievancehandling systems.


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SCIENTIFIC MANAGEMENT: started in

USA in 1900 as a result of efforts ofFredrick W Taylor called the father ofScientific mgmt. There were 2 dimensionsin his theory:

i. Mechanical time and motion studies;standardization tools; differential piecerate for wages ; and

ii. Philosophical science of mgmt basedon scientific investigations.


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PATERNALISTIC ERA: Robert Owen, a

British industrialist, considered to be fatherof Personnel Management, worked for thebetterment of workers & tried to improve

their working conditions.

This is imp for increasing productivity

because the workers are vital machines.


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INDUSTRIAL PSYCHOLOGY: Hugo

Munsterberg: analysis of jobs in terms ofemps mental & emotional requirements& in development of testing devices isnotable.

Emphasized the use of psychology in thefield of personnel testing, interviewing,attitude measurement, learning theory,

training, monotony study, safety, jobanalysis & human engineering.


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HR ERA: using techniques developed by

psychologists, George Elton Mayo &William J Dickson of Western Electric Coconducted some experiments known asHawthorne Experiments, in the field of

industrial psychology.

As a result, during the 1930s a trendbegan phrased as being nice to people.

This trend was eventually termed theHuman Relations Movement.


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Imp features ofHawthorne experiments:

i. A business org is basically a socialsystem.

ii. Emp can be motivated by psychological

& social satisfaction also.iii. Mgmt must learn to develop co-operative

attitudes and not merely rely oncommand.

iv. Productivity is linked with empsatisfaction.


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BEHAVIORAL SCIENCE ERA: outgrowth of

human relations studies from disciplines likesociology, anthropology, psychiatry andpsychology.

Maslows Need Hierarchy Theory: there is a

series of needs some lower & some higher;higher cannot be satisfied if lower remainunsatisfied; a satisfied need is not a motivator.

Herzbergs Two factors theory of Motivation:

there are two separate sets of conditionsresponsible for motivation & dissatisfaction ofworkers.


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MODERN PERSPECTIVE

PERSONNEL MGMT: because ofvoluntary efforts of the employers, growthof PM increased in US & UK and created

specialists for personnel activities. In India,it was an outcome of Govt policies like in1931 when Royal Commission on Laborrecommended the abolition of child labor &

appointment of Labor Officers inindustries.


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Scope of PM expanded considerably throughout

the world and new styles of managing HR havebeen developed. Jobs becoming specialized and complex,

training and development aspects are givenemphasis.

Thus, in mid 1980s, from personnel mgmt itcame to be called as HUMAN RESOURCEMANAGEMENT against the works of famouswriters on mgmt like Pascale & Athos & Peters &Waterman who produced lists of attributes thatthey claimed characterized successfulcompanies.


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INDIAN SCENARIO

Report of Royal Commission onLabor(1929-31): recommended theappointment of Labor Officers to dealwith recruitment & check corrupt practices.

Appointment of Labor Officers:functioned as industrial relations officers tohandle grievances.

Second World War: enlisting laborsupport for war effort. Officers entrustedwith handling of welfare & laboradministration.


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Enactment of Industrial Disputes Act(1947):

made adjudication compulsory. Welfare officersbecame Indl Relations Officers who were hiredwith a legal background.

Enactment of Factories Act(1948): madeobligatory for factories employing 500 or moreworkers to appoint welfare officers.

1960 & after: rapid growth of industry &consequent demand for skilled and semiskilledworkers led to the govt to enact the EmploymentExchange Act, 1959 to regulate recruitment ofworkers and the Apprentice Act, 1961 toregulate the training of workers to some extent.


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HRM in India began with industrialdiscipline for which Personnel Officers

were appointed. Later, their roles were converted to that of

a Indl Relations Officer.

Today, his role is of a Human ResourceManager & works in three areas ofLaborWelfare, Indl relations & PersonnelAdministration.


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ASTD (American Society for Training &Development) has developed an HR wheel in

1983, highlighting different functions of HRM.

Rel

J e

HR

Sele S

e el Re e hI S e

ee e

e


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Training & Development: Identifying,

assessing and through planned learning helping develop the key competencies.

Org Development: healthy inter & intrapersonal relationships & helping groupsinitiate & manage change.

Org/ Job Design: defining how tasks,authority & systems will be organized &

integrated across org units & individualjobs.


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HR Planning: determining orgs major HR

needs, strategies & philosophies. Selection & Staffing: matching people & their

career needs & capabilities with jobs & careerpaths.

Personnel research & Info systems: personnelinformation database.

Compensation Benefits: fair & consistent.

Emp Assistance: providing counseling forpersonal problem solving.

Union/ Labor Relations: healthy union/organizational relations.


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MACRO LEVEL A broad

Scenario Technological changes

Economical challenges

Political factors

Social factors

Local & Governmental Issues

Unions Employers demands

Workforce diversity


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Technological Changes

Technology is the process by which inputs froman orgs environment are transformed into

outputs. Technology includes tools, machinery,

equipment, work procedures and empknowledge & skills.

Technological breakthroughs can dramaticallyinfluence an orgs service markets, suppliers,distributors, competitors, customers, manfprocesses, marketing practices & competitiveposition.


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New Skills required: urgent need to

upgrade existing emp skills andknowledge if org wants to survive &flourish in a competitive world.

Downsizing: increased automation hasreduced emp head counts everywhere atevery level.

Collaborative work: hierarchicaldistinctions being blurred & moreteamwork is emphasized.


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Telecommuting: relocation of work from

office to the home, usually with computersand use phones & Internet to transmitdata.

Internet & Intranet Revolution: have

enabled companies to become morecompetitive by cutting costs. Used tohandle training, administration,performance mgmt & out placement

functions. E-commerce is becoming asource of upcoming business.


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Change management: Learning

Organization, Managing organizationalchange, Change agents termsencountered these days; orgs can onlysurvive if they are proactive to

environmental changes.

Competence: enhance competencies ofindividuals for specific tasks through well

designed training programmes.


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HR professionals are seen as Strategic

Business partners. HR Technology: software systems like

HRIS so that professionals can devote

time to other aspects of their organizational role.

Corporate Reorganizations: acquisitions &mergers in last two decades. AmericaOnlines purchase of Time Warner in 2001set a record, worth 181.9 billion $.


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Global Competition: global economy,

international competition in goods & services. Cyclical Growth: continued automation &

information technology to increase productivity,requiring fewer workers.

Increasing diversity in workforce:Primary: Age, Race, Affection, Physical qualities,

Gender, Ethnicity;

Secondary: Income, Marital Status, Militaryexperience, Religious beliefs, Geographicallocation, Parental status, Education, Workbackground.


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Employee expectations: emp influence &

participation at all levels. Flexible workconditions.

Organizations as vehicles for reaching

societal goals: adoption of 1964 Civil rightsAct by US Congress reqd orgs to dealfairly with women & racial & religiousminorities in hiring, promotion & other

aspects.

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