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1.EVOLUTION OF HUMAN RESOURCE MANAGEMENT 2. DEFINITION OF HUMAN RESOURCE MANAGEMENT 3. DIFFERENCE BETWEEN HUMAN RESOURCE MANAGEMENT AND PERSONNEL MANAGEMENT TOPICS
1.EVOLUTION OF HUMAN RESOURCE MANAGEMENT
2. DEFINITION OF HUMAN RESOURCE MANAGEMENT
3. DIFFERENCE BETWEEN HUMAN RESOURCE MANAGEMENT AND PERSONNEL MANAGEMENT
TOPICS
1.EVOLUTION OF HUMAN RESOURCE MANAGEMENT
Eleven stages
1. Human resource in pre-industrial era
2. Industrial revolution and the factory system
3. Emergence of modern corporation and managerial capitalism
4. Scientific management, welfare work andindustrial psychology
5. World war 1 and the emergence of HRM as a profession
6. Period 1940 to 1970
7. The golden age of industrial relations and the personnel management maintenance function, 1935-1970
8. Quality of work life era
9. The emergence of contemporary HRM function
10.Strategic focus era
11.The HRM function today
Stage 1- HUMAN RESOURCE IN PRE
INUSTRIAL ERA
• 1400 A.D to 1700s
• Absence of HRM function in organisations
• Cessation of feudalism- release of labourfrom land and beginning of the freeemployment relationship
• Shift from subsistence agriculture to a commercial based economy
• Spectacular growth of towns and villages along with middle class
Stage 2- INDUSTRIAL REVOLUTION AND
THE FACTORY SYSTEM
• In UK- late 18 th century, USA 19 th century and in INDIA the second half of 20 th century
• Replacement of human effort and skill by the work of machines
• Development of factory system
- displaced self employment household and handicraft
Stage 2 cont…….
-rationalisation of work and division of work
- necessity of supervision of large number of workers
- personnel system practices became autocratic, based upon a commodity concept of labour
- management responsibility delegated to foremen or first line supervisors
- foreman usually used force and fear for controlling the workers
Stage 3- EMERGENCE OF THE MODERN
CORPORATION AND MANAGERIAL CAPITALISM
• From 1860 to the turn of the century
• Emergence of the modern HRM practice
• Transfer of employment from agriculture to industrial, from small scale to large scale.
• modern business enterprise along with capital management
• Separation of the operation from the ownership of firms and employment of salaried managers
Stage 4- SCIENTIFIC MANAGEMENT,
WELFARE WORK, INDUSTRIAL PSYCHOLOGY AND HAWTHORNE STUDIES
Scientific management- F.W. TAYLOR
- “the one best way” and the fastest time a worker could perform a particular task.
1. science, not the rule of thumb
2. harmony not discord
3. co-operation not individualism and
4. maximum output, in place of
restricted output
Scientific management cont………..
• Each worker would be compensated according to their out put
• SM represented a new attitude towards management
• Taylor proposed functional management as a part of SM
Contribution of scientific management to HRM
• Taylor‟s proposal for functional management called attention to the need for a separate human resource function
• Work and jobs can be systematically studied analysed, redesigned or improved upon
Contribution cont……..
• Importance of proper selection procedures and training methods
• Differential payment system
• Taylor highlighted the need of workers to be won over and led by management
Stage 4- cont……..
WELFARE WORK
• Efforts made in the 19 th and early 20 th century
• To improve the working condition of factory workers
• More systematic approach to labour problems
Purpose of Welfare work
• The averting of industrial conflict and unionisation
• The promotion of good management and worker relations
• The efforts to increase worker productivity and reduce turn over
Stage 4- cont….
INDUSTRIAL PSYCHOLOGY
Focused on the worker and decreasing the psychological and physiological costs of work
Began in 1931 HUGO MUNSTERBERG published Psychology and Industrial efficiency
psychology could provide in the areas of employment testing, selection, training, efficiency and motivation
Hawthorne studies
1920-32, conducted by
Elton Mayo in Western Electric company
The studies on psychological aspects highlighted the followings
-importance of team work, participation, loyalty
• Importance of sociology and psychological aspect on productivity
• Shift from scientific management like „human engineering‟ and standards to „human relations‟
• Organisation is considered as a social system and not a techno economic system as viewed by SM
Stage 5- WORLD WAR 1 AND THE EMERGENCE OF HRM AS A PROFESSION
• Scientific personnel administration and centralising
• Personnel management department was emerged
• Labour turnover increased
Stage 5 cont……..
Labour shortage, increased wages and demand for employees for war production
In UK and USA firms established personnel departments in between 1920 & 1950
Firms adopted functional management
Unsystematised HRM practices
Stage 6- Period 1940 to 1970
Behavioural school of thought
- by 1950
- Major architects in this field are
-Abraham Maslow with his need hierarchical theory
- Herzberg two factor motivation theory
Douglas McGregor proposed theory x and
theory Y
they advocated ways and means of behavioural modification by managers and workers
• On the part of managers they suggested different leadership style
• In order to modify the behaviour of workers
-improved communication
-participation
• MBO
• Job redesign to reduce boredom and fatigue
• Management development
and training programmes
• Financial incentive scheme
• Job enrichment and job enlargement
Human relations movement
• Associated with Elton mayo and
Fritz Roethlisberger
• Increasing productivity through discovering the needs of workers
• It began in 1945 as a result of Hawthorne experiment and continued till 1960
Stage 6- cont……..
• under human relations the manger become responsible for integrating employees into work situation in a way that would motivate them to work together co operatively and productively and for assisting employees to experience economic, psychological and social satisfaction.
Stage 7- THE GOLDEN AGE OF INDUSTRIAL RELATION AND THE PERSONNEL MANAGEMENT
MAINTENANCE FUNCTION
• In the period of great depression
• Increase the need for the practice of HRM as a result of growth in union and collective bargaining
PROVISION OF LEGISLATION
From 1945 to 1970 the primary focus of the employment relationship was on IR
The passing of several acts in USA encouraged unionisation
The pro-union legislation was followed by world war 2 which created an extraordinary demand for labour
GOLDEN AGE OF IR
Between 1948 and 1958
The general focus of HRM was on IR because the primary need of many organisation was to operate in the collective bargaining framework of labour relations
Firms had depreciated personnel department by the effect of depression
Govt. involvement in the economy during the war created a need for personnel department in all companies
Stage 8- QUALITY OF WORK LIFE ERA
• Began in 1960s and continued till 1970s
• Rise in the view of the importance of HR as an assets, not liabilities
• Series of efforts directed as satisfying the interests of both employees and firms
• Policies and practices which maximised organisation performance and employee
Practices and programmes implemented
Job design and enrichment with career planning and development
For improving the psychological quality of employees
Create more committed employees through employee participation
Stage 9- THE EMERGENCE OF CONTEMPORARY HRM FUNCTION
FACTORS LEADING TO TRANSFORMATION OF
HRM FUNCTION
• Environmental changes occurred after world war 2
• Private sector unionism started to fall as a percentage of the labour force
• The shift from manufacturing employment to service sector employment continued
Stage 9- cont…… Changes in HRM policies
• Growth in international competition, domestic competition, deregulation, globalisation and technological change Union avoidance policies
• Dealing with employees directly as individual rather than on management-union relations
• Dealing employees indirectly and collectively
Cont………
• Develop employees as assets
• Increasing competitiveness of employees to assist the organisation‟s goals
• Successful application of Total Quality Management
Stage 10- STRATEGIC FOCUS ERA
• In the late 1970s there was a considerable change in image, status and importance of HRM function in organisations
• In 1970s business strategy was included in the MBA syllabus
• One of the areas merge with business strategy was HRM which helped the emergence of strategic HRM
Factors that have contributed to HRM’s strategic role
• The realisation that the firms competitive advantage is tied up with managing hr in a strategic way
• Redesigning and restructuring of organisations
• The old hierarchical type structure with tight control have given way to flatter structure and larger span of control
Factors cont…..
• New structure focus on employee self control rather than old tradition of external control
• Need for sound human resource strategy to effectively manage the highly diverse work force
Stage 11- THE HRM FUNCTIONS TODAY
• Integration of the traditional PM activities and as well as HRM‟s involvement in overall organisational planning and change
• HRM today is characterised as a partner in organisational change, creator of organisational culture, and facilitator of organisational commitment
Stage 11- cont…..
• The decentralisation of traditional HRM activities from personnel specialist to senior line management
• Focus on individual employee rather than on collective management-trade union relation
• Considering employee as the single most important organisational asset
Stage 11- cont…..
• HRM has become a partner with other management functions
• HRM become increasingly responsible to cultivate the requisite culture that is conductive of required behaviours
DEFINITION OF HRM AND DIFFERECE BETWEEN HRM
AND PERSONNEL MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Definition:
Human Resource Management is the
process of acquiring, training, appraising
and compensating employees, and
attending to their labour relations ,health,
safety and fairness concerns.
[Dessler]
Human Resource Management is defined as a
set of policies, practices and programmes
designed to maximize both personal and
organizational goals.
PERSONAL MANAGEMENT
According to the Institute of Management(U.K).
“ Personal Management is an integral but
distinctive part of management, concerned with
people at work and their relationships within
the enterprise.”
Differences between HRM and PM
Dimension HRM PM
1.Nature of function Line function Staff function
2.Team work HRM is invested in working with people, team-building & team-work.
PM is invested in the ordinary way of administration of personal policies and programs
3.Motivation HRM concentrates more on motivation ,morale-boosting and job satisfaction
PM concentrate more on selection , recruitment & appraisal of personal
4.Speed of decision Fast decision are taken by the HRM
Slow decisions are taken by the PM
5. Lay managers General / business/line managers
Personal/IR specialists
6. Communication Direct Indirect
7. Job design Team work Division of labour
8.Pay Performance related Job evaluation(fixed grades)
9. Management role Transformational leadership Transactional leadership
10. Managerial task Nurturing Monitoring
11. Training & development Learning companies Controlled access to courses
12. Selection Integrated, key task Separate , marginal task
13. Key relations Customer Labour management
14. Initiatives Integrated Piecemeal
15. Job categories Few Many
16. Respect for employees People are treated as assets to be used for the benefit of an organization, its employees and the society as a whole
Labour is treated as a tool which is expendable and replaceable
17. Shares interest Mutuality of interests Interest of the organizationare uppermost
18. Evolution Latest in the evolution subject
Precedes HRM
REFERENCE
• NIRMAL SING, HUMAN RESOURCE MANAGEMENT, GALGOTIA PUBLICATIONS PVT LTD
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