EVOLUTION OF HRM “There is no „magic‟ in the success of companies.The secret of their success is simply the way that treat their employees” Akio Morita Founder, Sony Corporation
OF HRM HR HISTORY • Hiring & Firing • Unions emerged: Labour relations specialistsEVOLUTION • Welfare • Subspecialties as : Staffing /Training/Compensation/Appraisal System • Late 70’s HR professionals mastered the activities of Staffing, Development, Appraisals & Rewards. • By 1980’s organizational design and communication, got added
OF HRM HOW IS PM DIFFERENT FROM HRM Personnel Management and HRM differ in scope PM is viewed as a tool. The behavior of which could be manipulated for theEVOLUTION benefit of the organization and replaced when it is worn out. It was a routine activity meant to hire new employees and to maintain personal records. It was never considered as a strategic management of business. HRM would view people as an important source or asset to be used for the benefit of the organization , employees and society.
OF HRM HOW IS PM DIFFERENT FROM HRM PERSONNEL FUNCTION POINTS OF DISCUSSION HRMEVOLUTION Maintenance oriented Development oriented Orientation An independent function with independent sub- Consists of inter-dependant parts functions Structure Reactive, responding to events when they occur Proactive, trying to anticipate & get ready with Philosophy appropriate responses Exclusive responsibility of personnel Responsibility of all managers in the organisaiton department Responsibility Emphasis on monetary rewards Emphasis on higher order needs eg. Empowering Motivators people Improved performance is a result of improved Better use of human resources leads to improved satisfaction & morale Outcomes satisfaction & morale Tries to improve the efficiency of people & Tries to develop the organisation as a whole & its administration Aims culture
OF HRM ESSENTIALS IN THE DEFINITION OF HRM It is people who staff the organization and manage organizations HRM involves application of management functions and principals.EVOLUTION Functions and principals are applied to acquisitioning, developing , maintaining and remunerating employees Decisions on different aspects of employees must be consistent with other decisions on HR Decisions made must influence the effectiveness of the organization, i.e. it should result in betterment of services to customers or productivity
OF HRM DEFINITIONS OF HRM HRM is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organization andEVOLUTION the employees to achieve their objective. HRM is concerned with the people dimension in management. Since every organization 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 commitments to the organization are essential to achieving organizational objectives.
OF HRMEVOLUTION DEFINITIONS OF HRM HRM is management in planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social responsibilities are accomplished.
OF HRM MANAGERIAL FUNCTIONS OF HRM Planning: Determination in advance of a personal program that will contribute to goals established for the enterpriseEVOLUTION Organising : This is required to carry out the plans. Designing the structure of relationships among jobs , personnel and physical factors. Directing : Before the action is started “direction “ is necessary; this may be in the form of “motivation “ “ actuation “ or “ command “.This is to get people to work willingly and effectively Controlling: Observation of action and its comparison with plans and correction of any deviation that may occur at any time.
OF HRM OPERATIVE FUNCTIONS OF HRM Procurement: Obtaining proper kind and number of personnel necessary to accomplish organizational goals Development: Increasing the skill through training that is necessary for properEVOLUTION job performance Compensation: Adequate and equitable remuneration of personnel for their contribution to organization objectives. Integration : It is concerned with a reasonable reconciliation of individual , societal and organizational interests . Maintenance: Maintenance is concerned with the continuation of this state , this is heavily effected by communication with employees. Separation : Separations and return of that person to society. Could be retirement , lay off , out-placements and discharge
OF HRM THE HUMAN RESOURCE CYCLE HRM Concept – Michigan SchoolEVOLUTION Rewards Performance Selection Performance Management Development 1. Selection: Matching available human resources to jobs 2. Appraisal: Performance management 3. Rewards: It must reward short as well as long-term achievements 4. Development: Developing high quality employees
OF HRM THE HARVARD FRAMEWORK FOR HRM Stakeholder InterestsEVOLUTION • Shareholders • Management HRM policies HRM outcomes Long-term • Employee groups • Employee • Commitment consequences • Government influence • Competence • Individual well- • Community • Human • Congruence being resource flow • Cost - • Organizational • Reward effectiveness effectiveness systems • Societal well- Situational factors • Work systems being • Workforce characteristics • Business strategy and conditions • Management philosophy • Labour market • Unions • Tasks technology • Law & societal values
OF HRM THE 5-P MODEL OF STRETEGIC HRM Organization StrategyEVOLUTION Internal Characteristics External Characteristics Strategic business needs Strategic Human Resources Management Activities Human Resources Philosophy - Expresses how to treat and value people Human Resources Policies - Guidelines for action on people related business and HR programs Human Resources Programs - Help to address and change major people related business issues Human Resources Practices - Motivates needed role behavior Human Resources Processes - Defines how these activities are carried out
OF HRM HUMAN RESOURCE WHEELS The American Society for Training & Development (ASTD) has developed a Human Resource Wheel in 1983 highlighting different functions of HRM leading to quality of work life, productivity and readiness for change.EVOLUTION Union/ Labor relations Employee T& D assistance HR areas output: Compensation/ Quality of work life Organization/ Benefits Productivity readiness Job design for change Personnel research and HRP information Selection systems and staffing
OF HRM HUMAN RESOURCE WHEELS T & D focus Identifying, assessing and through planned learning---helping develop the key competencies which enable individuals to perform current or future jobs.EVOLUTION OD focus Assuring healthy inter- and inter-personal relationships and helping groups initiate and manage change. Organization/Job design focus Defining how tasks, authority and systems will be organized and integrated across organization units and in individual jobs. HRP focus Determining the organization‟s major HR needs strategies and philosophies.
OF HRM HUMAN RESOURCE WHEELS Selection and staffing Matching people and their career needs and capabilities with jobs and career paths.EVOLUTION Personnel research and information systems Assuring a personal information base. Compensation/Benefits focus Assuring compensation and benefits fairness and consistency. Employee assistance focus Providing counseling to individual employees, for personal problem-solving. Union/Labour relations focus Assuring healthy union/organization relationships.
Nature of HRMTHE Human Resource Planning Job analysisHRM RecruitmentMODEL Selection Placement Training &development Remuneration Environment Motivation Competent & Participative Management Willing work force Communication Safety, health & Welfare Promotions etc. Organisational Industrial relations Goals Trade Unionism Disputes & their settlement International HRM Ethical issues in HRM
OF HRM HUMAN RESOURCE FUNCTIONS Forecasting the human resource requirements necessary for the organization to achieve its objective – both in terms of number of employees and skills. Developing and implementing a plan to meet the manpower requirements.EVOLUTION Carrying out job analysis to establish the specific requirements for individual jobs within an organization. Recruiting and selecting personnel to fill specific jobs within an organization. Designing systems for appraising the performance of individuals. Orienting and training employees. Designing and implementing management and organizational development programmes.
OF HRM HUMAN RESOURCE FUNCTIONS Designing and implementing compensation system for all employee and have systems for promotions and transferEVOLUTION Assisting employees in developing career plans. Employee communication , personal counseling, personal research etc Departmental administration programs – Planning, record keeping, reporting ,policy formulation , and general administration. Implement activities to ensure proper health and sanitation and safe work place Adherence to Government norms and regulations
OF HRM CHALLENGES FACED BY HRM GlobalizationEVOLUTION Build value chain for business competitiveness Profitable through cost and growth Capability Focus Change Technology Attracting and retaining intellectual capital
OF HRM CONCLUSION Organizations are now defined as : • The core competencies within the organizationEVOLUTION • The people within the organization • The organizational culture or shared values and knowledge or learning. The HR systems needs to be retained and constantly upgraded and changed: People will always need to be hired and trained Process will always need to be created and upgraded Cultures will always need to be established and transformed. HR practices must Be aligned to business realities, meeting deadlines , making profits, leveraging technology, satisfying investors and to serving customers ,. HRM is to create organizational capabilities that will lead to competitiveness