Introduction & a brief history of hrm


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

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Introduction & a brief history of hrm

  1. 1.  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.
  2. 2.  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.”
  3. 3.  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
  4. 4. It is important to remember that the people who do the work and create the ideas allow the organization to survive
  5. 5.  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
  6. 6.  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.”
  7. 7.  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.”
  8. 8.  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.”
  9. 9.  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.
  10. 10.  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.
  11. 11.  Fairness and firmness  Tact and resourcefulness   Sympathy and consideration   Knowledge of labor and other terms   Broad social outlook  Others  and Academic qualifications
  12. 12. 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
  13. 13. 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 Incentives benefits and services 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
  14. 14. HRM as a central subsystem in an organization Product Subsystem HR Subsystem Procurement Training Compensation Appraisal Rewards Marketing Subsystem Finance Subsystem Technical Subsystem
  15. 15. Objectives of HRM
  16. 16. 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
  17. 17. Objectives of the HRM Function  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
  18. 18. Objectives of the HRM Function  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
  19. 19. Objectives of the HRM Function  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
  20. 20. Objectives of the HRM Function  Managing increased urgency and faster cycle times:  Firms are placing a growing emphasis on:  Increasing customer service  Developing new products and services  Training 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
  21. 21. 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
  22. 22. HRM ACQUISITION HRP, Recruitment, Selection Placement MAINTAINANCE Remuneration Motivation Health & safety Social Security IR Performance Appraisal DEVELOPMENT Training Career development Organisational Dev Internal Mobility CONTROL HR Audit HR Accounting HRIS
  23. 23. 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
  24. 24. A Brief History of HRM  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
  25. 25. A Brief History of HRM  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
  26. 26. A Brief History of HRM  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
  27. 27. 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…
  28. 28. 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
  29. 29. Personnel Function in India; Changing Scenario Period Emphasis Status Roles 1920 – 30 Welfare management Clerical Welfare Paternalistic practices administrator 1990s – Incremental productivity Proactive, Developer onwards gains through human growth-oriented Counsellor assets Coach Mentor Problem solver 1940 – 60 Expanding the role to cover Administrative Appraiser Labour, Welfare, Industrial Advisor Relations and Personnel Mediator Administration Legal advisor Fire fighting 1970 – 80 Efficiency, effectiveness Developmental Change agent dimensions added Integrator Emphasis on human Trainer values, aspirations, Educator
  30. 30. 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
  31. 31. 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 Transformatio nal i. Acceptability of Unions Acceptable Not desirable j. Basis of job design Division of labour Teams
  32. 32. 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