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Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
Evolution of hrm
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Evolution of hrm

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  • 1. 1 Kushan I. Samararatne ANDHRM/KA/121003
  • 2. 2 Contents Introduction… ...............................................................................................................................................3 Classical Approaches.................................................................................................................................4 Scientific Management .........................................................................................................................4 Administrative Management................................................................................................................8 Bureaucratic Management .................................................................................................................10 Behavioral approaches............................................................................................................................11 Quantitative approach............................................................................................................................14 Management Science..........................................................................................................................14 Operations Management....................................................................................................................15 Management Information Systems ....................................................................................................15 Modern approaches................................................................................................................................15 Systems Theory...................................................................................................................................16 Contingency Theory ............................................................................................................................17 Conclusion...............................................................................................................................................18 Referance................................................................................................................................................19
  • 3. 3 Introduction… David Ulrich wrote in his influential 1997 book HR Champions that “an HR professional from the 1940s would find it difficult to recognize the HR function of the year 2000.” Though HR was considered to be a negative avenue in the pre historic era with time it has turned to be one of the most critical aspects of an organization if not the most important in the present context. Many outside the HR profession used to view HR in a negative light. A well known 1995 article in Fortune Magazine began with the uncomplimentary view of HR as “the last bureaucracy”, the author goes on to say “I am describing of course, your human resources department, and have a modest proposal; why not blow the sucker up?” Ten years later Fast Company ran a cover story titled: Why We Hate HR. In the same year Business Week wrote an article: Why HR Gets No Respect. From the evil Personnel Director in the popular comic Dilbert to widely disseminated business magazine it seems that around the world Human Resources is often portrayed negatively. The US based Society for Human Resource Management (SHRM) in 2005 found that worldwide over half (54.8%) of HR professionals said the most frequently encountered obstacle to career advancement was “HR’s not being held in high esteem by the organization.” However, after the Hawthorne studies in the late 1920s things were to change dramatically. Since the Hawthorne Studies, conducted at the Western Electric Plant in Hawthorne, Chicago, which showed a positive relationship between productivity and the working environment, HR has been evolving thick and fast. Human resource has been gaining more attention ever since as the workforce considered to be an important resource to gain competitive advantage of organization and also it helpful in utilizing the resources of an organization to an optimum extent in order to achieve organizational goals. The current role of HR is often stated with popular buzz words such as ‘Business Partner’ or ‘Strategic Partner’ and the common story is that HR has moved from a functional role to a strategic one. As Barry Leskin of the Business Journal writes “The head of a company’s HR department has moved from a transactional based role reporting to an administrative manager, to being a member of senior management.” But just like we can’t speak about humans without Sir Charles Darwin, or Physics without Sir Isaac Newton, HR cannot be discussed without its own founding fathers or the pioneers of HRM during each stage or approach. When we consider about the evolution of human resource management we can study about it divided into four main stages 1. Classical approaches 2. Behavioral approaches 3. Quantitative approaches 4. Modern approaches
  • 4. 4 Classical Approaches Classical approach consists of three main ideologies within itself.  Scientific Management.  Administrative Management.  Bureaucratic Management. To get a clear knowledge about classical approach it is important to discuss about these key areas in more depth. Scientific Management Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, improving labour productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). While working as a lathe operator and foreman at Midvale Steel, Taylor noticed the natural differences in productivity between workers, which were driven by various causes, including differences in talent, intelligence, or motivations. He was one of the first people to try to apply science to this application, that is, understanding why and how these differences existed and how best practices could be analyzed and synthesized, then propagated to the other workers via standardization of process steps. He believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work, including via time and motion studies, which would tend to discover or synthesize the "one best way" to do any given task.[4] The goal and promise was both an increase in productivity and reduction of effort. The four objectives of management under scientific management were as follows: The development of a science for each element of a man's work to replace the old rule-of-thumb methods.The scientific selection, training and development of workers instead of allowing them to choose their own tasks and train themselves as best they could.
  • 5. 5 The development of a spirit of hearty cooperation between workers and management to ensure that work would be carried out in accordance with scientifically devised procedures. The division of work between workers and the management in almost equal shares, each group taking over the work for which it is best fitted instead of the former condition in which responsibility largely rested with the workers. Self-evident in this philosophy are organizations arranged in a hierarchy, systems of abstract rules and impersonal relationships between staff. Key Points Taylor's principles became widely practiced, and the resulting cooperation between workers and managers eventually developed into the teamwork we enjoy today. While Taylorism in a pure sense isn't practiced much today, scientific management did provide many significant contributions to the advancement of management practice. It introduced systematic selection and training procedures, it provided a way to study workplace efficiency, and it encouraged the idea of systematic organizational design. Henry L. Gantt worked as a teacher and draughtsman before becoming a mechanical engineer. In 1887, he joined Frederick W. Taylor in applying scientific management principles to their work at Midvale Steel and Bethlehem Steel—working there with Taylor until 1893. In his later career as a management consultant—following the invention of the Gantt chart—he also designed the 'task and bonus' system of wage payment and additional measurement methods worker efficiency and productivity. In 1916, influenced by Thorsten Veblen he set up the New Machine, an association which sought to apply the criteria of industrial efficiency to the political process. With the Marxist Walter Polakov he led a breakaway from the 1916 ASME conference to discuss Gantt's call for socializing industrial under the control of managers and Polakov's analysis of inefficiency in the industrial context.
  • 6. 6 Henry Gantt is listed under Stevens Institute of Technology alumni and the American Society of Mechanical Engineers (ASME) awards an annual medal in honor of Henry Laurence Gantt which signifies his role in the co-operate world. The Gilbreths are considered the founders of modern industrial management, who sought to improve workers’ productivity while making their work easier. They were, above all, scientists who sought to teach managers that all aspects of the workplace should be constantly questioned, and improvements constantly adopted. In this way, their work advanced appreciation for the importance of the addressing the needs of workers, and through taking care of those individuals the whole purpose would be better served. The Gilbreths applied their management techniques in running their large household. They created a Family Council, with a purchasing committee, a budget secretary, and a utility committee. Two of their children later wrote humorous accounts of their family life, Cheaper by the Dozen and Belles on Their Toes. Under Lillian’s persuasion, Frank Gilbreth changed his career from construction to management. In 1908, Frank published his first book, Field System. Lillian and Frank collaborated on fatigue and motion studies and focus on ways on promoting the individual workers welfare. To them the ultimate aim of scientific management was to help workers to reach their full potential as human beings. In their conception motion and fatigue) were intertwined. Every motion that increased worker’s fatigue was eliminated to reduce fatigue. Using motion picture cameras they tried to find out the most economical motions for each task in order to upgrade performance and reduce fatigue. Main features of scientific management: Standardization – is a process in which fixed methods are applied to work activities practiced by the workers. Time and Motion study – is process in which work is divided into several motions or small tasks and unnecessary motions are removed to find out the best way to doing a job. Financial Incentives – In this method incentives are provided to the workers on the basis of their performance. Piece-rate incentive system – To reward the workers who produced the maximum output. To motivate workers In order to help organizations perfume better.
  • 7. 7 Drawbacks & Criticism of Scientific Management While scientific management principles improved productivity and had a substantial impact on industry, they also increased the monotony of work. The core job dimensions of skill variety, task identity, task significance, autonomy, and feedback all were missing from the picture of scientific management. While in many cases the new ways of working were accepted by the workers, in some cases they were not. The use of stopwatches often was a protested issue and led to a strike at one factory where "Taylorism" was being tested. Complaints that Taylorism was dehumanizing led to an investigation by the United States Congress. Despite its controversy, scientific management changed the way that work was done, and forms of it continue to be used today. Applications of scientific management sometimes fail to account for two inherent difficulties:  It ignores individual differences: the most efficient way of working for one person may be inefficient for another;  It ignores the fact that the economic interests of workers and management are rarely identical, so that both the measurement processes and the retraining required by Taylor's methods would frequently be resented and sometimes sabotaged by the workforce. Both difficulties were recognised by Taylor, but are generally not fully addressed by managers who only see the potential improvements to efficiency. Taylor believed that scientific management cannot work unless the worker benefits. In his view management should arrange the work in such a way that one is able to produce more and get paid more, by teaching and implementing more efficient procedures for producing a product. Although Taylor did not compare workers with machines, some of his critics use this metaphor to explain how his approach makes work more efficient by removing unnecessary or wasted effort. However, some would say that this approach ignores the complications introduced because workers are necessarily human: personal needs, interpersonal difficulties and the very real difficulties introduced by making jobs so efficient that workers have no time to relax. As a result, workers worked harder, but became dissatisfied with the work environment. Some have argued that this discounting of worker personalities led to the rise of labour unions.
  • 8. 8 Administrative Management Administrative management basically focuses on how a business should be organized and the practices an effective manager should follow. While pioneers of scientific management tried to determine the best way to perform a job, those in the administrative management explored the possibilities of an ideal way to put all jobs together and operate an organization. Thus the main focus of administrative school or general management theory is on finding "the best way” to run organizations. Administrative management is also called "traditional principles” of management. Henry Fayol, a French industrialist, is the chief architect and considered as the father of the administrative management theory. Other prominent exponents include Chester I. Barnard, and Amid Colnel Urwick. Henry Fayol discussed about 14 principles. 1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization. 2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. 3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort. 4. UNITY OF COMMAND: Workers should receive orders from only one manager. 5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.
  • 9. 9 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole. 7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay. 8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. 9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possesses certain amounts of authority. The President possesses the most authority; the first line supervisor the least. They should always keep upper level managers informed of their work activities. 10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible. 11. EQUITY: All employees should be treated as equally as possible. 12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers. 13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction. 14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.
  • 10. 10 Barnard looked at organizations as systems of cooperation of human activity, and noted that they are typically short-lived. It is rare for a firm to last more than a century. Similarly most nations last for less than a century. The only organization that can claim a substantial age is the Roman Catholic Church. According to Barnard, organizations are not long-lived because they do not meet the two criteria necessary for survival: effectiveness and efficiency. Effectiveness is defined the usual way: as being able to accomplish stated goals. In contrast, Barnard's meaning of organizational efficiency differed substantially from the conventional use of the word. He defined efficiency of an organization as the degree to which that organization is able to satisfy the motives of the individuals. If an organization satisfies the motives of its members while attaining its explicit goals, cooperation among its members will last. Bureaucratic Management At a time when organizations were run like families, Max Weber looked for ways to bring a more formalized structure to organizations. Weber created the idea of bureaucratic management where organizations are more authoritative, rigid and structured. A well-defined formal hierarchy and chain of command distinguishes the level of authority within an organization. Individuals who hold higher positions will supervise and direct lower positions within the hierarchy. Major characteristics of Weber’s ideal bureaucracy:  Division of labour – jobs broken down into simple, routine and well defined tasks.  Formal rules and regulations – system f written rules and standard operating procedure.  Impersonality – uniform application of rules and controls, not according to personalities.  Authority hierarchy – positions organized in a hierarchy with a clear chain of command.  Career orientation – career advancement on merit and not on manager’s discretion only.
  • 11. 11 Limitations or failures of classical approach: The principles of scientific management failed to focus on management from a managerial point of view. For instance Taylor overlooked the social needs of workers and emphasized on only the economic and physical needs which was emphasized in depth earlier in the report, and Weber’s bureaucracy theory was not flexible enough to suit the complex changes in the ever changing environment. The classical theories failed to consider other aspects of management such as organization behavior, leadership, motivation and informal relationships. It focused only on productivity. Behavioral approaches As management research continued in the 20th century, questions began to come up regarding the interactions and motivations of the individual within organizations. Management principles developed during the classical period were simply not useful in dealing with many management situations and could not explain the behavior of individual employees. In short, classical theory ignored employee motivation and behavior. As a result, the behavioral approach was a natural outgrowth. The behavioral management theory is often called the human relations movement because it addresses the human dimension of work. Behavioral theorists believed that a better understanding of human behavior at work, such as motivation, conflict, expectations, and group dynamics, improved productivity. The theorists who contributed to this school viewed employees as individuals, resources, and assets to be developed and worked with — not as machines, as in the past. Several individuals and experiments contributed to this theory. Elton Mayo's contributions came as part of the Hawthorne studies, a series of experiments that rigorously applied classical management theory only to reveal its shortcomings. The Hawthorne experiments consisted of two studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932. The first study was conducted by a group of engineers seeking to determine the relationship of lighting levels to worker productivity. Surprisingly enough, they discovered that worker productivity increased as the lighting levels decreased
  • 12. 12 — that is, until the employees were unable to see what they were doing, after which performance naturally declined. A few years later, a second group of experiments began. Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity. In this case, Mayo and Roethlisberger concluded that the increase in productivity resulted from the supervisory arrangement rather than the changes in lighting or other associated worker benefits. Because the experimenters became the primary supervisors of the employees, the intense interest they displayed for the workers was the basis for the increased motivation and resulting productivity. Essentially, the experimenters became a part of the study and influenced its outcome. This is the origin of the term Hawthorne effect, which describes the special attention researchers give to a study's subjects and the impact that attention has on the study's findings. The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and practices of management. Abraham Maslow, a practicing psychologist, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of human needs. His theory of human needs had three assumptions:  Human needs are never completely satisfied.  Human behavior is purposeful and is motivated by the need for satisfaction.  Needs can be classified according to a hierarchical structure of importance, from the lowest to highest. Maslow broke down the needs hierarchy into five specific areas:  Physiological needs. Maslow grouped all physical needs necessary for maintaining basic human well-being, such as food and drink, into this category. After the need is satisfied, however, it is no longer is a motivator.
  • 13. 13  Safety needs. These needs include the need for basic security, stability, protection, and freedom from fear. A normal state exists for an individual to have all these needs generally satisfied. Otherwise, they become primary motivators.  Belonging and love needs. After the physical and safety needs are satisfied and are no longer motivators, the need for belonging and love emerges as a primary motivator. The individual strives to establish meaningful relationships with significant others.  Esteem needs. An individual must develop self-confidence and wants to achieve status, reputation, fame, and glory.  Self-actualization needs. Assuming that all the previous needs in the hierarchy are satisfied, an individual feels a need to find himself. Maslow's hierarchy of needs theory helped managers visualize employee motivation. Douglas McGregor was heavily influenced by both the Hawthorne studies and Maslow. He believed that two basic kinds of managers exist. One type, the Theory X manager, has a negative view of employees and assumes that they are lazy, untrustworthy, and incapable of
  • 14. 14 assuming responsibility. On the other hand, the Theory Y manager assumes that employees are not only trustworthy and capable of assuming responsibility, but also have high levels of motivation. An important aspect of McGregor's idea was his belief that managers who hold either set of assumptions can create self-fulfilling prophecies — that through their behavior, these managers create situations where subordinates act in ways that confirm the manager's original expectations. As a group, these theorists discovered that people worked for inner satisfaction and not materialistic rewards, shifting the focus to the role of individuals in an organization's performance Quantitative approach This approach emphasizes the use of mathematical models in solving many complex management problems. The quantitative tools and methodologies, known as Operations Research Techniques are designed to aid in decision making relating to operations and production. The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making. There exist three main branches when addressing about Quantitative approach. Management Science The management science approach stresses the use of mathematical models and statistical methods for decision-making. It visualizes management as a logical entity, the action of which can be expressed in terms of mathematical symbols, relationships and measurement data. Another name commonly used for management science is operations research. Recent advances in computers have made it possible to use complex mathematical and statistical models in the management of organizations. Management science techniques are widely used in the following areas:  Capital budgeting and cash flow management  Production scheduling  Development of product strategies  Planning for human resource development programs  Maintenance of optimal inventory levels  Aircraft scheduling
  • 15. 15 Various mathematical tools like the waiting line theory or queuing theory, linear programming, the program evaluation review technique (PERT), the critical path method (CPM), the decision theory, the simulation theory, the probability theory, sampling, time series analysis etc. have increased the effectiveness of managerial decision-making. To apply a quantitative approach to decision-making, individuals with mathematical, statistical, engineering, economics and business background skills are required. Since one person cannot have all these skills the quantitative method requires a team approach to decision-making. This approach has been criticized for its overemphasis of mathematical tools. Many managerial activities cannot be quantified because they involve human beings who are governed by many irrational elements. Operations Management Operations management is an applied form of management science. It deals with the effective management of the production process and the timely delivery of an organization’s products and services. Operations management is concerned with: (i) inventory management, (ii) work scheduling, (iii) production planning, (iv) facilities location and design, and (v) quality assurance. The tools used by operations managers are forecasting, inventory analysis, and materials requirement planning systems, networking models, statistical quality control methods, and project planning and control techniques. Management Information Systems Management information systems focus on designing and implementing computer-based information systems for business organizations. In simple terms, the MIS converts raw data into information and provides the needed information to each manager at the right time, in the needed form. Modern approaches
  • 16. 16 Besides the classical, behavioral and quantitative approaches to management, there are certain modern approaches to management. Two of these approaches are the systems theory and the contingency theory, which have significantly shaped modern management thought. Systems Theory Those who advocate a systems view contend that an organization cannot exist in isolation and that management cannot function effectively without considering external environmental factors. The systems approach gives managers a new way of looking at an organization as a whole and as a part of the larger, external environment. According to this theory, an organizational system has four major components: inputs, transformation processes, output and feedback (see Figure 2.4). Inputs – money, materials, men, machines and informational sources – are required to produce goods and services. Transformation processes or throughputs – managerial and technical abilities – are used to convert inputs into outputs. Outputs are the products, services, profits and other results produced by the organization. Feedback refers to information about the outcomes and the position of the organization relative to the environment it operates in. The two basic types of systems are closed and open systems. A system that interacts with its environment is regarded as an open system and a system that does not interact with its environment is considered a closed system. Frederick Taylor, for instance, regarded people and organizations as closed systems. In reality, all organizations are open systems as they are dependent on interactions with their environment. Whether it is a new product decision or a decision related to the employees of the organization, the organization must consider the role and influence of environmental factors. an open organizational system.
  • 17. 17 Contingency Theory This is also known as the situational theory. This approach has been widely used in recent years to integrate management theory with the increasing complexity of organizations. According to this theory, there is no one best way to manage all situations. In other words, there is no one best way to manage. The response “It depends” holds good for several management situations. The contingency approach was developed by managers, consultants, and researchers who tried to apply the concepts of the major schools of management thought to real-life situations. Managers, who follow this approach, make business decisions or adopt a particular management style only after carefully considering all situational factors. According to the contingency approach, “The task of managers is to identify which technique will, in a particular situation, under particular circumstances, and at a particular time, best contribute to the attainment of management goals” (see Figure 2.5). Figure 2.5: The Contingency Managerial Viewpoint
  • 18. 18 Conclusion HR spawned from the human relations movement, which began in the early 20th century due to work by Frederick Taylor. Taylor explored what he termed "scientific management" (later referred to by others as "Taylorism"), striving to improve economic efficiency in manufacturing jobs. He eventually keyed in on one of the principal inputs into the manufacturing process—labor—sparking inquiry into workforce productivity. The movement was formalized following the research of Elton Mayo, whose Hawthorne studies documented how stimuli unrelated to financial compensation and working conditions—attention and engagement—yielded more productive workers. Contemporaneous work by Abraham Maslow, Douglas Mcgregor, and Mary Parker Follet formed the basis for studies in behavioral approach. Quantitative approach discussed about the use of mathematical models in solving many complex management problems while modern approaches discussed the latest evolvement in the field of HRM. What we can clearly observe from all this is that this evolution is a continuous process. It is not something that would come to an end in a jiffy or in a particular day. As long as the world evolves HR would also evolve proportionally to it. Also what we can point out as a conclusion is that there is no such perfect theory or approach to be biased towards. Many depend on the type of the organization or the goal of the organization or simply with respect to the task at hand. What we have to realize is that the company or the organization that adopts most effectively & efficiently to the evolution of the market would be the ultimate winners. But what is of significant importance is that the ‘Human aspect’ of an organization has gone from a zero to something that the organizations existence depends on. What we see in this evolution of HR is that the human aspect being more &more recognized and given priority about. As the great German philosopher Immanuel Cant once said “Always recognize that human individuals are ends, and do not use them as means to your end”.
  • 19. 19 Referance Bruce E. Kaufman; Managing the Human Factor https://sites.google.com/site/livembaonline/evolution-of-management-thought/quantitative-approach https://sites.google.com/site/livembaonline/evolution-of-management-thought/modern-approaches- to-management

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