eHR01eHR01 Human Resources ManagementHuman Resources Management

Prof R K SinghProf R K Singh

AIMA-CMEAIMA-CME

AIMA-CME 2

eHR01: eHR01: Evolution of HRM in India Evolution of HRM in India Evolution of HR Functions :Evolution of HR Functions :1929: Royal Commission on Labour-GOI1929: Royal Commission on Labour-GOI1931: Appointment of 1931: Appointment of Labour Officers. Labour Officers.

Scope Scope :Employment, Dismissal and :Employment, Dismissal and Working Conditions. Working Conditions.

1945: 1945: Labour OfficersLabour Officers got designated as got designated as Welfare Officers.Welfare Officers.

Scope Scope : + Housing, Medical, and : + Housing, Medical, and Recreational Activities Recreational Activities

AIMA-CME 3

eHR01: eHR01: Evolution of HRM in India Evolution of HRM in India Evolution of HR Functions :Evolution of HR Functions :

1946: Industrial Disputes Act1946: Industrial Disputes Act

1947: Factories Act1947: Factories Act

Scope Scope :+ Management of Leave, Wages, :+ Management of Leave, Wages, Bonus & Retirement BenefitsBonus & Retirement Benefits

1960s-1970s1960s-1970s : : Need for Attracting & Retaining Need for Attracting & Retaining

Right PeopleRight People ( (Growth in Business, Competition Growth in Business, Competition

& Increased size of Business)& Increased size of Business)

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eHR01: eHR01: Evolution of HRM in India Evolution of HRM in India Formulation of HR Policies on :Formulation of HR Policies on :

• HR PlanningHR Planning• Recruitment and SelectionRecruitment and Selection• Training & DevelopmentTraining & Development• Performance & Potential AppraisalPerformance & Potential Appraisal• Internal Mobility & Internal Mobility & • Compensation ManagementCompensation Management

Welfare Officers Welfare Officers Personnel Managers Personnel Managers

AIMA-CME 5

eHR01: eHR01: Evolution of HRM in India Evolution of HRM in India

1980s-1990s : 1980s-1990s :

Further recognition of the Further recognition of the importance of Human Resources importance of Human Resources and their contribution to the and their contribution to the survival of the Organizations.survival of the Organizations.

Personnel Managers Personnel Managers Manager-HR Manager-HR

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eHR01 : Evolution of HRMeHR01 : Evolution of HRM in Europein Europe1.1 History of HRM:1.1 History of HRM:• Formation of Guilds of workers in England to Formation of Guilds of workers in England to

improve the work conditions.improve the work conditions.• Industrial Revolution (18 Century) laid the basis Industrial Revolution (18 Century) laid the basis

for a new and complex industrial society.for a new and complex industrial society.• Working conditions, social patterns, and division Working conditions, social patterns, and division

of labour were significantly altered.of labour were significantly altered.• A new kind of employee-a “Boss”, who wasn’t A new kind of employee-a “Boss”, who wasn’t

necessarily the owner, came into existence.necessarily the owner, came into existence.

AIMA-CME 7

eHR01 : Evolution of HRMeHR01 : Evolution of HRM in Europein Europe

1.1 History of HRM:1.1 History of HRM:• Emergence of Scientific Management Approach Emergence of Scientific Management Approach

and Industrial Psychology (and Industrial Psychology (LaterLater19 Century) 19 Century) focused on the job & efficiencies and the focused on the job & efficiencies and the maximum well-being of the worker respectively.maximum well-being of the worker respectively.

• Changes in Technology, growth of organizations, Changes in Technology, growth of organizations, the rise of unions, and government concern and the rise of unions, and government concern and intervention concerning working people resulted intervention concerning working people resulted in development of Personnel Departments. in development of Personnel Departments.

(Around 1920)(Around 1920)

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HRM and Personnel Management :DifferencesHRM and Personnel Management :Differences

1. Orientation :1. Orientation :

Personnel : Maintenance OrientedPersonnel : Maintenance Oriented

HRD : Development OrientedHRD : Development Oriented

2.2. Structure :Structure :

Personnel : An independent function with Personnel : An independent function with independent sub-functionsindependent sub-functions

HRD : Consists of inter-dependent partsHRD : Consists of inter-dependent parts

3. Philosophy :3. Philosophy :

Personnel : Reactive function, responding to events Personnel : Reactive function, responding to events as and when they take placeas and when they take place

HRD : Proactive function, trying to anticipate and HRD : Proactive function, trying to anticipate and get ready with appropriate responses.get ready with appropriate responses.

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HRM and Personnel Management :DifferencesHRM and Personnel Management :Differences

4. Responsibility:4. Responsibility:

Personnel : Exclusive responsibility of Personnel Personnel : Exclusive responsibility of Personnel department.department.

HRD : Responsibility of all managers in the HRD : Responsibility of all managers in the organizationorganization

5.5. Motivators :Motivators :

Personnel : Emphasis is put on monitary rewardsPersonnel : Emphasis is put on monitary rewards

HRD : Emphasis is on higher-order needs such as - HRD : Emphasis is on higher-order needs such as - how to design jobs with stretch, pull and how to design jobs with stretch, pull and challenges, how to improve creativity and challenges, how to improve creativity and problem solving skills, how to empower people problem solving skills, how to empower people in all respects, etcin all respects, etc

AIMA-CME 10

HRM and Personnel Management :DifferencesHRM and Personnel Management :Differences

6. Outcomes :6. Outcomes :Personnel : Improved performance is the Personnel : Improved performance is the

result of improved satisfaction and result of improved satisfaction and morale.morale.

HRD : Better use of human resources leads HRD : Better use of human resources leads to improved satisfaction and morale.to improved satisfaction and morale.

7.7. Aims :Aims :Personnel : Tries to improve the efficiency Personnel : Tries to improve the efficiency

of people and administration.of people and administration.HRD : It tries to develop the organization HRD : It tries to develop the organization

and its culture as a whole. and its culture as a whole.

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HRM : DefinitionHRM : Definition

Human Resource Management is a Human Resource Management is a broad concept referring to the broad concept referring to the philosophy, policies, procedures, and philosophy, policies, procedures, and practices used in managing people practices used in managing people throughout the organization.throughout the organization.

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Defining HRMDefining HRM HRM is the systematic control of a network ofHRM is the systematic control of a network of

fundamental organizational processes affecting fundamental organizational processes affecting

and involving all organization members; these and involving all organization members; these

processes include :processes include :• Human Resource PlanningHuman Resource Planning• Job & Work DesignJob & Work Design• Job Analysis, StaffingJob Analysis, Staffing• Training and DevelopmentTraining and Development• Performance Appraisal and ReviewPerformance Appraisal and Review• Compensation and RewardCompensation and Reward• Employee Protection & RepresentationEmployee Protection & Representation• Organization DevelopmentOrganization Development

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eHR01eHR01: : Objectives of HRMObjectives of HRM

• Helping the organization reach its goals.Helping the organization reach its goals.• Providing the organization with well-trained Providing the organization with well-trained

and well-motivated employees.and well-motivated employees.• Employing the skills and abilities of the Employing the skills and abilities of the

workforce efficiently.workforce efficiently.• Increasing to the fullest the employees’ job Increasing to the fullest the employees’ job

satisfaction and self actualization.satisfaction and self actualization.• Communicating HRM policies to all employeesCommunicating HRM policies to all employees• Helping to maintain ethical policies and socially Helping to maintain ethical policies and socially

responsible behaviourresponsible behaviour• Managing change to the mutual advantage of Managing change to the mutual advantage of

individuals, groups, the enterprise, and the individuals, groups, the enterprise, and the public.public.

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Strategic Importance of HRM: Key ConceptsStrategic Importance of HRM: Key Concepts

• Analyzing and Solving problems from a profit-Analyzing and Solving problems from a profit-oriented, not just a service oriented, point of vieworiented, not just a service oriented, point of view

• Assessing and interpreting costs or benefits of Assessing and interpreting costs or benefits of HRM issuesHRM issues

• Using planning models that include realistic, Using planning models that include realistic, challenging, specific, and meaningful goals.challenging, specific, and meaningful goals.

• Training the HR Staff and emphasizing the Training the HR Staff and emphasizing the strategic importance of HRM and the importance strategic importance of HRM and the importance of contributing to the firm’s profit. of contributing to the firm’s profit.

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eHR01eHR01 : Concept and Scope of HRM : Concept and Scope of HRM

1.4 Who Performs HRM Activities?1.4 Who Performs HRM Activities?

-HR Managers and Operating Managers.-HR Managers and Operating Managers.

Operating Managers (Supervisors, Department Operating Managers (Supervisors, Department Heads, Vice Presidents of non-HR Department) Heads, Vice Presidents of non-HR Department) are involved in HRM activities because they are are involved in HRM activities because they are responsible for effective utilization of all the responsible for effective utilization of all the resources at their disposal.resources at their disposal.

Operating managers must see to the training, Operating managers must see to the training, performance, and satisfaction of employees.performance, and satisfaction of employees.

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eHR01eHR01 U1: Concept and Scope of HRM U1: Concept and Scope of HRM

Scope of HRM Scope of HRM

(According to IIPM)(According to IIPM)• Personnel AspectPersonnel Aspect• Welfare AspectWelfare Aspect• Industrial Relations AspectIndustrial Relations Aspect

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eHR01eHR01: Concept and Scope of HRM: Concept and Scope of HRM

1.5 Activities of HRM Department1.5 Activities of HRM Department

Personnel Aspect :Personnel Aspect :• Manpower PlanningManpower Planning• Recruitment and SelectionRecruitment and Selection• PlacementPlacement• TransferTransfer• PromotionPromotion• Training and DevelopmentTraining and Development• Lay off and Retrenchment, Lay off and Retrenchment, • RemunerationRemuneration• Productivity and Incentives, etc.Productivity and Incentives, etc.

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eHR01eHR01 U1: Concept and Scope of HRM U1: Concept and Scope of HRM

1.5 Activities of HRM Department1.5 Activities of HRM Department

Welfare Aspect :Welfare Aspect :• Working Conditions and Amenities such asWorking Conditions and Amenities such as

-Canteen -Canteen

-Creches-Creches

-Rest and Lunch Room/s-Rest and Lunch Room/s

-Housing-Housing

-Transport,-Transport,

-Medical Assistance-Medical Assistance

-Education-Education

-Health and Safety and Recreation Facilities, etc.-Health and Safety and Recreation Facilities, etc.

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eHR01eHR01 U1: Concept and Scope of HRM U1: Concept and Scope of HRM Activities of HRM DepartmentActivities of HRM Department

Industrial Relations Aspect :Industrial Relations Aspect :• Union-management relationsUnion-management relations• Joint ConsultationsJoint Consultations• Collective BargainingCollective Bargaining• Grievance and Disciplinary ProceduresGrievance and Disciplinary Procedures• Settlements of Disputes, etc.Settlements of Disputes, etc.

AIMA-CME 20

eHR01: Emerging HR Functions eHR01: Emerging HR Functions Assessment Centre:Assessment Centre:A mechanism to identify the potential for growth.A mechanism to identify the potential for growth.It’s a procedure and not a location.It’s a procedure and not a location.It uses situational tests to observe specific jobIt uses situational tests to observe specific jobbehaviour.behaviour.

Empowerment :Empowerment :It provides greater freedom and discretion to employees It provides greater freedom and discretion to employees

so that they develop mutual trust, liberal sharing of so that they develop mutual trust, liberal sharing of information, become team player and release their full information, become team player and release their full potential to contribute to the organizations.potential to contribute to the organizations.

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eHR01: Emerging HR Functions eHR01: Emerging HR Functions Job Enrichment:Job Enrichment:It provides discretion, flexibility and variety to It provides discretion, flexibility and variety to

the job to increase the employees’ willingness to the job to increase the employees’ willingness to contribute.contribute.

Parity and Justice:Parity and Justice:To ensure that the constitutional and legislation To ensure that the constitutional and legislation

guarantees are not ignored/violated by guarantees are not ignored/violated by individual managers and/or organization.individual managers and/or organization.