Human Resource as a refined domain took time to evolve. Tracing down the evolution of HRM Environment.

1. Evolution Of HRM
Environment
External & Internal Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2015-16

2. TYPES OF ENVIRONMENTS
External Labor Market
Unions
Legal Mandates and
Prohibitions
Interest Groups
Stakeholders
Societal Norms
Professional Ethics
Competing Organizations
Collaborating Organizations
Demands for Service
(Customers)
Technology
Economic and Social
Change
Internal Structure of Organization
Allocation of Tasks
Availability of Resources
Organization of Workforce Rules
Development and Training
Process
Rewards and Benefits
Structure
Strategic Uses of
Compensation and Benefits
Adaptations to Organizational
Change
Static
Changing

3. EVOLUTION OF HRM CONCEPT
 The Commodity Concept
 The Factor Of Production (FOP) Concept
 The Goodwill Concept
 The Paternalistic Concept
 The Humanitarian/Human Relations Concept
 The Human Resource/Modern Concept
 The Emerging Concept

4. COMMODITY CONCEPT
 Workers were considered as a commodity
like any other factor of production which can
be bought.
 The working conditions were worst, workers
worked from dawn to dusk under unhygienic,
unsafe working conditions for low wages
FACTORS OF PRODUCTION
 Scientific methods of production, scientific
selection, training of workers, and
compensating them handsomely for
achieving output standards

5. GOODWILL CONCEPT
 Welfare measures like safety, first
aid, lunch room, rest room were
provided to have a positive
impact on worker’s productivity
PATERNALISTIC CONCEPT
 Management assumed a fatherly and protective
attitudes towards employees
 The approach of management was as if they offering
a favour rather than giving as rights

6. HR CONCEPT
 Considers human resources as an asset for a
sustainable competitive advantage
 Conscious effort to realize organizational
goals by satisfying needs and aspirations of
employees
EMERGING CONCEPT
 Today's workforce considers themselves as partners in
industry.
 Employee empowerment practices like stock option
plans, profit sharing plans and more autonomy and
challenging responsibilities for workforce.

7. Evolution of HRM in the west
(1) Industrial Revolution:
a. Adam Smith: specialization and division of labor.
b. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of
employees)
(2) Scientific Management: Frederick Taylor: Father of scientific management
a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components
and rearranging them into the most efficient combination.
b. Steps: Job analysis—selection—training—rewards.
(3) Industrial Psychology:
a. Henri Fayol’s management functions: Planning, organizing, communicating, coordina- ting and
controlling.
b. F. & L. Gilbreth’s principles of work simplification (time and motion studies).
c. Henry Gantt’s principles of work scheduling.
d. Continuation of scientific management.
(4) Human Behavior And Relations
a. The Hawthorne Studies by Westing House
b. The happy workers are the most productive workers. (The Pet Milk theory)
c. Max Weber: the Ideal Bureaucracy.
d. Chris Argyris: Individual and organization—mutual adjustment.
e. Affected by the theories of behavioral science and system theory.

8. Three Stages Of Growth Of
HRM
a. File Management (1900-1964):collecting and storing
data of each employee.
b. Government Accountability (1964-1980): Compliance
to government regulations.
c. Human Resource Management:
 Treating human resource as an asset.
 Emphasizing joint responsibilities of line managers and
staff managers.

9. Current Business Issues
and the Effect on HR
 Technology changes
 Privacy
 Workplace security
 Globalization; offshoring
 Immigration
 AIDS epidemic
 Aging workforce
 Employment regulation
 Litigation

10. The Sustainability Challenge
 Knowledge is becoming more valuable
 Intellectual capital refers to the creativity, productivity, and service
provided by employees
 Knowledge workers are employees who contribute to the company not
through manual labor but through a specialized body of knowledge
 Empowerment means giving employees responsibility and authority to
make decisions regarding all aspects of product development or
customer service
 A learning organization embraces a culture of lifelong learning,
enabling all employees to continually acquire and share
knowledge
 The psychological contract describes what an employee expects
to contribute and what the company will provide to the employee
for these contributions
 Alternative work arrangements include independent contractors,
on-call workers, temporary workers, and contract company
workers

11. The Global Challenge
 Companies are finding that to survive they must
compete in international markets as well as fend off
foreign corporations’ attempts to gain ground in the
U.S.
 Every business must be prepared to deal with the
global economy. This is made easier by technology.
 Offshoring refers to the exporting of jobs from
developed countries to less developed countries.
 Many companies are entering international markets
by exporting their products overseas, building
manufacturing facilities in other countries, entering
into alliances with foreign companies, and engaging
in e-commerce

12. The Technology Challenge
 Technology has reshaped the way we play, plan our lives, and where we
work
 The overall impact of the Internet
 The Internet has created a new business model – e-commerce – in which
business transactions and relationships can be conducted electronically
 Advances in technology have:
 changed how and where we work,
 resulted in high-performance models of work systems,
 increased the use of teams to improve customer service and product quality,
 changed skill requirements,
 increased working partnerships,
 led to changes in company structure and reporting relationships,
 increased the availability of Human Resource Information Systems (HRIS), which are
used to acquire, store, manipulate, analyze, retrieve, and distribute HR information,
 increased the availability of e-HRM, which is the processing and transmission of
digitalized information used in HRM,
 increased the competitiveness of high performance work systems.

13. “
”
Thank you…!!
Questions ??