An evolution of Human Resources (HR)

1. LOOKING BACK, MOVING FORWARD:
THEHR JOURNEY TO TRANSFORMING
ORGANISATIONS
Andrew Jemedze

2. HISTORICAL DEVELOPMENTS OFHRM
The employer had to develop new ways of dealing with these large groups of people.
However the industrial revolution is said to have brought changes in the employer/
employee relationships – from servant/master relationship to situations of industries
and mass employment ofpeople
Hamurabi the law giver has been cited as one of the earliest propounders of HRM.
There is no universal agreement as to when HRM started.

3. HISTORICAL DEVELOPMENTS OFHRM
MANAGEMENT THEORIES
•Macgregor
•Peters
•RosabethKantor
•MagaretWhitley
•KurtLewin
JAPANESECOMPETITION.
STRATEGIC HRM
The emergence of theflexible
organization and nonstandard
employment
COTTAGE INDUSTRIES
• (SocialDarwinism)
COTTAGE INDUSTRIES
• (Social Darwinism)
SCIENTIFIC
MANAGEMENT
• (F Taylor)
HUMAN RELATIONS
• (Elton Mayo/ Hawthorne
studies)
TOTAL QUALITY
MANAGEMENT (TQM)
• socio technical approach
MANAGEMENT THEORIES
•Macgregor
•Peters
•Rosabeth Kantor
•Magaret Whitley
•Kurt Lewin
JAPANESE COMPETITION.
STRATEGIC HRM
The emergence of the flexible
organization and non standard
employment

4. DARWINISM THEORIES
(SURVIVAL OF THE FITTEST)
The employers were the fittest – the
employee theweaker
The employer was merely employing
as thefitter
Employees were at his mercy being
the weaker
It was by divine right that they found
themselves at the mercy of the
employer – so employees were made
to believe.
There were however some employers
who felt that the foregoing was
wrong so they employed social
workers who dealt with therelations.
They provided free housing, fairer
rewards, better working relations-
this was not by the agitation of the
workers but by the generosity of
employers.
However bringing together of large
numbers of employees brought about
the creation of TRADE UNIONISM
hence, the voice of the employees to
fight for better workingconditions.
The concern by some employers
about improving productivity also
played a part – hence a number of
studies were done – the important
ones being those done by Frederick
Taylor which period came to be called
ScientificManagement.

5. Believed in one best way of
working by studying people
at work and recording
which culminated in to
“time and motion studies”
A process where work is
broken down into smaller
tasks and finding best ways
of carrying themout.
People were trained to
work that best way aswe
would presently refer to as
“star/high performers”
People were motivated
according to F Taylor solely
by rewards – hence his
assertion that output be
tied to rewards
The social niceties at work
were unknown
There is still a lot of this in
today’s work processes.
Other researchers started
looking at other ways of
improving production and
t h e s e s t u d i es are
collectively called Human
Relations.
SCIENTIFIC MANAGEMENT

6. They held that rewards are not the
sole motivators
Employees need much more for
them to bemotivated
Some of the notable studieswere:
•Hawthorne studies – Elton Mayo
•Maslow
Some of these studies were started
by engineers who wanted to
investigate the ideal illumination
levels to improve output. The
amount of light did not change
productivity.
However, they concluded that
human beings are gregarious animals
whichmeans:
•People are motivated by the desire to belong to
a specific group or collegialityand
•Desire to contribute and recognition by the
bosses
•The need forachievement
Therefore, jobs must meet theabove
needs for employeemotivated.
HUMAN RELATIONS

7. SOCIO TECHNICAL STUDIES – TAVISTOCK
STUDIES
Disbanded the digging of
coal and shovelling it and
introduced a conveyor belt
after experiencing high
levels of absenteeism and
health problems.

8. TOTAL QUALITY MANAGEMENT
One of the features of business is
building quality into productsand
systems rather than inspecting
quality into products.
There is needto recognise the
employee an importantelement
who must be treated as a
customer because it is through
them that you produce quality
products for yourcustomers
Another key element of TQM is
employee empowerment with
responsibility to take decisions
related to their work as they are
the ones who deal directly with
customers. (moments oftruth)

9. MANAGEMENT THEORISTS
There is a recognition that people
are eager to achieve – set goals
and people will be eager to
achieve them (Mcgregor, Peters
In search ofexcellence)
Rosabeth Moss Kantor – believes
in breaking the glass ceiling as
she wr ite s a b ou t he r
achievement and success both in
business and academia. (study of
the response of share price to a
change inCEO)
Margaret Whitley – believed in
presence of order in the
apparent chaos that we see and
therefore, man’s ability to live in
the chaos and achieveresults.
Kurt Lewin – well known for
teams, change andstrategy.

10. THE JAPANESECOMPETITION
They have outperformed the western inmany
ways
This has generated lots of interest to find out
how the Japanese doit.
They found thefollowing:
•In Japan people are employed into an organization than
into a job – does the person fit into the culture of the
company?
•Psychological contract of employment is very strong in
Japan to the extent that there was once no employment
turnover
•There was very high use of work teams
•There was high level of investment in employee training
and development
•There was extensive jobrotation

11. HRM
Is like other elements of management and is
an ever developing discipline which borrows
its principles and theories from a number
behavioural science disciplines inparticular:
• Psychology
• Medicine
• Sociology
• Economics
• Social anthropology

12. IS HRMTHE SAME AS PERSONNEL MGT?
HRM vs. PersonnelMngt
Personnel
management
activities tend to
be disconnected
and conductedas
independent
processeswhereas
stresses thateach
activity should
form part of the
whole process of
people
management.
Within HRM there
is greater stresson
the role of line
managers in
managingtheir
personnel
management is
viewed as a
specialistfunction.
Traditional
interest tothe
most senior
managers.
Traditional
Personnel mgtis
operational,
personnel focusedon
managers tend to technical skillsand
have littlepower or functionswhereas
own people – prestige whereas HRM approaches
HRM in perspective whereas traditional HRM is of strategic relatesall
employee matters
to business
strategy in a
comprehensive
and organizedway.
HMRis aimed at
achieving
competitive
advantage of an
organization
HRM is proactive throughthe
and TPM is reactive development ofa
highly committed
skilled workforce
while TPM focuses
on status
maintenance.

13. WHAT IS STRATEGIC HUMAN RESOURCES
MANAGEMENT (SHRM)?
In doing so you accordingly transform the HR department into a consultant department.
Modern HR believesin devolving HRM competences to the line managers
Line managers can make or break the HR strategies as they are always with the people –
they should therefore have the skills/competencesin HR management
Specific terms when talking about strategic HRM are:
Integration – to what extentare our HR practices and competences
considered in the strategic direction of the organization.
Devolvement – to what extent are HR practices competently carried
out by linemanagers.

14. Beliefs & Assumption ofHRM
It’s the HR which gives organizations their
sustainable competitive advantage.
TheAIM of HRM is not mere compliance with
rules but building employeecommitment
Employees are carefully selectedand
developed

15. STRATEGIC QUALITIES OF HRM
T o p m a n a g e m e n t
involvement in HRM is
necessary.
Because of the above
beliefs and assumptions
HR decisions are of
strategic importance
HR policies should be
integrated into the
busine ss str ate g y
(external integration)
There is need to
internal inte
which is the exte
wh i ch th ere
co mp lemen tari
a m o n g t h e H R
functional areas
Because of the above
beliefs and assumptions
HR decisions are of
strategic importance
Top management
involvement in HRM is
necessary.
HR policies should be
integrated into the
business strategy
(external integration)
There is need to
achieve internal
integration which is the
extent to which there is
complementarity
among the HR
functional areas

16. FLEXIBLE LABOUR AND NON STANDARD
EMPLOYMENT
Towards a more poorly compensated
insecure workforce
Strategic positioning
standardThe emergence of non
employment arrangements.
The emergency of non standard reward
systems and Employee ValueProposition

17. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
FL– often thought as:
•Part time
•Temporary and selfemployment
Also includes:
•Freelancing
•Sub contracting
•Outsourcing
•Home working
•Franchising
•Zero hourscontracts
•Fixed Termcontracts
•Seasonal working
•Flexi time

18. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
The common
feature hereis
uncertainty is
HIGH
Can be referredto
as Precarious
employment
FL– give the
employer scopeto
make rapid short
term adjustments
to the supply of
labour inresponse
to changes in
demand.
Over the yearssaw
the proliferationof
the flexible
organization –
core and
peripheral staff
(the resourcing
strategy is
changing)
The common
feature here is
uncertainty is
HIGH
Can be referred to
as Precarious
employment
FL – give the
employer scope to
make rapid short
term adjustments
to the supply of
labour in response
to changes in
demand.
Over the years saw
the proliferation of
the flexible
organization – core
and peripheral
staff (the
resourcing strategy
is changing)

19. FLEXIBLE LABOUR & NONSTANDARD
EMPLOYMENT
FL– is mainly
used by
management as
part of forward
looking plan
which relates
labour use
patterns to
business
objectives
Characteristics:
- certain social
groups areover
represented –
women with
dependent
children, young
workers, those
nearing
retirement,
ethnic
minorities
Quality and
choice ;-others
argue both
workers and
employers
enjoy benefits
of FL
The trend is
non standard
employment is
on theincrease
3 dayworking
week
Increase use of
artificial
intelligenceand
ICT relatedjobs

20. LABOUR MARKET REGULATION
Differences between
countries concerns their
labour market regulation
both legal andvoluntary
Managers must influence
both the legal and
voluntary conditions

21. MANAGERIAL STRATEGIES AND ISSUES OF
CONTROL
NSE have undermined
and eroded formal and
rule bound modes of
recruiting, mobilizing
and disciplininglabour.
There has been an
increase in outsourcing,
s u b c o n t r a c t i n g ,
networking
Such developments
weaken Standard forms
of employment
How them management
maintain control in the
face of this ne w
dispensation

22. SOCIETAL CONTEXTS – THE NEW HR
PHILOSOPHY
Social processes within
labour and work places
are shaped and influenced
by relationships between
economic institutions and
the wider social systems.
The major movements are
influences from welfare
systems, family structures
and gender relations.
These provide frameworks
for entitlements and
obligations which explains
why certain NSE flourish in
one country than the
other.
This is changing the face
of EVP

23. RESTRUCTURING EMPLOYMENT RELATIONS
The standard economies of
time- working week, day etc
are now being challenged and
employment relations are
changing
Mostwages are time based
What in ‘normal’ about
normal workingtime?
Wages are paid for the
duration of employment
rather than for the duration of
theperformance
Thewage is usually paidfor
non workingperiods eg. Sick p
e ri o ds , h o l i d a y s ,
interruptionsetc
All these suggest a normal
workingarrangement
Therefore it is exchange of
employment time as opposed
to actual workingtime.
It follows therefore three
scenarios are possible in
managinglabour:
• Normal working time
• Abnormal working time
• Non working time
Generally employees are paid
for both working time and
non workingtime
One is paid for bothto work
and not towork

24. VIRTUAL WORK PLACE
People who perform
paid work at a distance
relying on technology
The indian ICT case and
t h e C h i n e s e
manufacturing case
The externalization of
professional work

25. TOWARD A MORE POORLY COMPENSATED
WORKFORCE
Family friendly workplaces
There is an increase in dual earner
couples, female headed households
bringing to the fore work/family
conflicts.
Employers are responding with
friendly working arrangements
The factory clock is in the process of
becoming aligned with the cycles of
workers personal lives
FL – provide a JIT arrangement of
resources and in other economies it is
the employers pushing forit
As we have JIT inve ntor y
management, product so is the
concept of JITpersonnel management

26. TOWARD A MORE POORLY COMPENSATED
WORKFORCE (CONT’D)
Longtermemploymentareeroding andthe
“disposable employee’ is becomingmore
common
Workersarefeelingmoreinsecurein their
jobs
Quite a lot of workers arehappier withthe
NSE despitepayinglowerbutit gives themthe
independencetheyneedin theirlives
Employers areextendinglabourcontrol
through increasinginsecurity

27. ORGANIZED FLEXIBLE PRODUCTION (THE
ASIAN MIRACLE)
Research i n the
winning formula for
their success
In addition to other
reasons for the success
was the organization of
production in these
economies
Research in these
economies has focused
on issues outside the
or g anization lik e
economic growth etc
and has neglected the
prime issues of their
competitive advantage
Issues like demand and
supply oflabour,
Research in the
winning formula for
their success
In addition to other
reasons for the success
was the organization of
production in these
economies
Research in these
economies has focused
on issues outside the
organization like
economic growth etc
and has neglected the
prime issues of their
competitive advantage
Issues like demand and
supply of labour,

28. NEW MANAGERIALSTRATEGIES
Seeking more flexibleemployment
• Divide labour into threegroups
• GroupA – regular employees with long term employment based on the long term accumulation of job ability. Have
job security and promoted to supervisory and managerial positions.
• Group B :Professional specialties valued for immediate use but without expectation of long term employment.
• Group C:employees with more flexible patterns of employment
Moving towards performance relatedpay
• Aligning labour costs to companyperformance
• Eliminating the risk of labour costs going out of sink with company performance
• Wage system based on performance and effort
• Performance contractingarrangements
Seeking to diminish Group Aemployees
• Transfer policy
• Labour optimization initiatives
• Job design andredesign
• Mechanization
• Multi skilling andup-skilling
• Group cooperation's employment – shared labour

29. NEW MANAGERIALSTRATEGIES
Moving towards performance relatedpay
• Aligning labour costs to companyperformance
• Eliminating the risk of labour costs going out of sink with company
performance
• Wage system based on performance and effort
• Performance contractingarrangements
Seeking to diminish GroupA employee
• Transfer policy
• Labour optimization initiatives
• Job design andredesign
• Mechanization
• Multi skilling andup-skilling
• Group cooperation's employment – shared labour

30. BEWARE
Retention
Membership
pay
Excess
labour

31. QUESTION AND ANSWER
SESSION

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