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WHAT IS HRM; EVOLUTION OF HRM; THE
CHANGING ENVIRONMENT, AND SUBSEQUENT
ROLE OF HRM.
1
A DEFINITION OF HRMA DEFINITION OF HRM
Human Resource Management is a management functionHuman Resource Management is a management function that
helps managers to recruit, select, train and develop pople for an
organization. Obviously, HRM is concerned with the people’s
dimension in organizations.
Again, it is a process of bringing people and organization together
so that the goals of each are met. It is that part of the
management process which is concerned with the management
of human resource in an organization.
“HRM means activities necessary for staffing the organization and
sustaining high employee performance.” (S.P Robbins)
According to Dessler, it is the process of acquiring, training,
appraising and compensating employees, and of attending to their
labor relations, health & safety and fairness concerns.
2
5 FUNCTIONS OF5 FUNCTIONS OF
MANAGEMENT PROCESSMANAGEMENT PROCESS
3
 Key principles and practices associated with HRM date
back to the beginning of mankind. Mechanisms were
developed for the selection of tribal leaders, for
example.
 More advanced HRM functions were developed as early
as 1000 and 2000 B.C. Employee screening tests have
been traced back to 1115 B.C. in China, for instance.
 The terminology used to describe the role and function
of workers has evolved from "personnel" to "industrial
relations" to "employee relations" to "human resources
" 4
HISTORY AND EVOLUTION OF HR
 There were two other particularly important
contributing factors to the origination of modern HRM
during 1880s to 1940s.
 Industrial welfare movement which represented a shift
in the way that managers viewed employees—from
nonhuman resources to human beings.
 The second factor was Frederick W. Taylor's (1856-
1915)Scientific Management, a landmark book that
outlined management methods for attaining greater
productivity from low-level production workers to top
level management people.
5
HISTORY AND EVOLUTION OF HR
 In the 1960s and 1970s the federal government
furthered the HRM movement with a battery of
regulations created to enforce fair treatment of workers,
such as the Equal Pay Act of 1963, the Civil Rights Act
of 1964, the Employee Retirement Income Security Act
of 1974 (ERISA)
 Furthermore, during the 1970s, HRM gained status as a
recognized profession with the advent of human
resource programs in colleges
6
HISTORY AND EVOLUTION OF HR
 The whole evolutionary activities and concept of HR
recently help to shift the orientations: such as
- changes from personnel to human resources
- from administration to management
- from human relations to organizational
effectiveness.
So now HR is aligned with Senior Management level.
 HR also now has more input on business strategies -
training, safety, globalization, etc
7
EVOLUTION IN HR IN BANGLADESH
 There is for the evolution of HRM in Bangladesh. But it is
assumed that Before 1970 the whole activities was maintained
directly under the administrative department
 1970-80: the importance of Personnel management or HRM is
being recognized for the settlement of some industrial disputes
under the Factory, Industrial & labor law.
 1980 to 90: The Personnel management concept has started
gaining recognition
 1990 to till date: After 1990 The HR concept has started
narrowly. From 1997 to 2000 HR concepts tried to achieve the
recognition. After that it has recognized. Some organization
started to set HR department. Though till today this concept is
struggling to achieve the mass recognition.
8
HR PRACTICES IN BD
 HR practice in Bangladesh is getting
better now than the past. But there are
scope to be improved. The following
areas on which the concept has been
improvably practiced:
 Functional Concept:
HR role was concentrated to hiring firing and
letter issuance-dispatching-filing stage
Now change to Employee motivation,
Employee development, employee retention,
facilitating organizational development
initiatives etc. 9
HR PRACTICES IN BD
Investment Concept:
Treated as a cost centre, so no initiative
for the development of HR
Now HR treats as investment centre. As
such in many organizations, employee
development is viewed as part of
business plan.
10
HR PRACTICES IN BD
 Relationship: Employer - Employee relationships is
better than the past. But till now there are a lot of
scope to improve in the employer-employee relation
as well as employee-employee relations.
 Recognition: Employers now started to recognition of
the employees’ participation in business planning,
major decision making and organizational change
process has increased. But till today this practice is
suffering with lots of limitations
 Formation of the Bangladesh Society for Human
Resources Management (BSHRM)- A platform for HR
Professionals in Bangladesh
11
FACTORS AFFECTING HRM
PRACTICE IN BANGLADESH
 Attitude of top management towards employees
 Weakness inbuilt in the job
 Nature of the Labor forces
 Weak & Unenlightened labor movement
 Lack of qualified & experienced people in the right
profession
 Lack of Long range planning
 Lack of support from line managers/top level
12
IMPORTANCE/ SIGNIFICANCE/
OBJECTIVES OF HRM
HRM is not a separate part of management rather “a basic function
of management allowing all levels and all types of
management”----Pigors and Myers.
 HRM is the necessary part of the organizing function of management-
Selecting, training, and evaluating the work force.
 As an important strategic tool HRM helps establish an organization’s
sustainable competitive advantage.
 It adds value to the firm
 Meeting economic competition
 Controlling labor cost and overall cost of production
 Making valuable investment effective
 Keep pace with the technological development
 Increase in total employment and efficient workforce of the country
 Multinational operation becomes easier
13
 A line function
- direct activities in own department
 A coordinated function
- ensuring line manager’s duties
 Staff functions
- carrying out ‘innovator’ role by providing up-to- cc
date information
- assisting line managers in HR activities
- playing ‘employee advocacy’ role by representing
employee interests
14
HR MANAGER’S 3 DUTIES
INCLUDE:-
FUNCTIONS OF HRM:
15
FUNCTIONS OF HRM
16
1. Acquisition: It means the estimation of demand
and supply of labors. This function includes-
Human resource planning
Recruiting
-Internal
-External
Employee socialization
2. Development: Development as a function of HRM
means employee training, Management development, and
career development.
3.Motivation: Motivation is a set of forces- drive,
desire, wish that influence to exert high level of effort to
perform tasks. It includes-
Job design
Performance evaluation
Rewards
Job evaluation
Compensation &benefits
Discipline
4.Maintenance: The final function of HRM is Maintenance.
It is concerned with providing those working conditions that
employees believe are necessary in order to maintain their
commitment to the organization. It includes-
Safety & health
Employee Relations
Functions of HRMFunctions of HRM
17
CHALLENGES TO HRM
18
 Globalization
 Sales Expansion
 New Foreign Products
 Cut labor costs
 Forming Partnership
 Technological Trends
 Trends in nature of workforce
 High Tech Jobs
 Service Jobs
 Knowledge work and Human
Resource capital
 Deregulation = Freedom of
owning
 Ethical Issues
 Managing within the Law
 Equal employment laws
 Occupational safety and health laws
 Labor laws
 Demographic Trends
 Gen ‘Y’
 Retirees
 Non traditional workers
 Creating High Performance
Work System (HPWS)
Again, HR strategies are the courses of action HR uses to help the company
achieve its strategic aims. For example Fed Ex’s strategic aims to achieve
superior levels of customer service and high profitability through committed
employee. Its basic HR OBJECTIVE is thus to build a committed
workforce…….
19
STRATEGIC ROLE OF HRM
 HRM should be strategic business partner of an
organization
 Should support business strategies
 In addition to internally representing the employees
(people dimension), should also have external focus
 Forward thinking and proactive
 Assist the organization in creating and maintaining
competitive edge
 Should try to work as profit center and economies its
operations
 Should add value to the organization
20

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Introduction to hrm

  • 1. WHAT IS HRM; EVOLUTION OF HRM; THE CHANGING ENVIRONMENT, AND SUBSEQUENT ROLE OF HRM. 1
  • 2. A DEFINITION OF HRMA DEFINITION OF HRM Human Resource Management is a management functionHuman Resource Management is a management function that helps managers to recruit, select, train and develop pople for an organization. Obviously, HRM is concerned with the people’s dimension in organizations. Again, it is a process of bringing people and organization together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resource in an organization. “HRM means activities necessary for staffing the organization and sustaining high employee performance.” (S.P Robbins) According to Dessler, it is the process of acquiring, training, appraising and compensating employees, and of attending to their labor relations, health & safety and fairness concerns. 2
  • 3. 5 FUNCTIONS OF5 FUNCTIONS OF MANAGEMENT PROCESSMANAGEMENT PROCESS 3
  • 4.  Key principles and practices associated with HRM date back to the beginning of mankind. Mechanisms were developed for the selection of tribal leaders, for example.  More advanced HRM functions were developed as early as 1000 and 2000 B.C. Employee screening tests have been traced back to 1115 B.C. in China, for instance.  The terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources " 4
  • 5. HISTORY AND EVOLUTION OF HR  There were two other particularly important contributing factors to the origination of modern HRM during 1880s to 1940s.  Industrial welfare movement which represented a shift in the way that managers viewed employees—from nonhuman resources to human beings.  The second factor was Frederick W. Taylor's (1856- 1915)Scientific Management, a landmark book that outlined management methods for attaining greater productivity from low-level production workers to top level management people. 5
  • 6. HISTORY AND EVOLUTION OF HR  In the 1960s and 1970s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA)  Furthermore, during the 1970s, HRM gained status as a recognized profession with the advent of human resource programs in colleges 6
  • 7. HISTORY AND EVOLUTION OF HR  The whole evolutionary activities and concept of HR recently help to shift the orientations: such as - changes from personnel to human resources - from administration to management - from human relations to organizational effectiveness. So now HR is aligned with Senior Management level.  HR also now has more input on business strategies - training, safety, globalization, etc 7
  • 8. EVOLUTION IN HR IN BANGLADESH  There is for the evolution of HRM in Bangladesh. But it is assumed that Before 1970 the whole activities was maintained directly under the administrative department  1970-80: the importance of Personnel management or HRM is being recognized for the settlement of some industrial disputes under the Factory, Industrial & labor law.  1980 to 90: The Personnel management concept has started gaining recognition  1990 to till date: After 1990 The HR concept has started narrowly. From 1997 to 2000 HR concepts tried to achieve the recognition. After that it has recognized. Some organization started to set HR department. Though till today this concept is struggling to achieve the mass recognition. 8
  • 9. HR PRACTICES IN BD  HR practice in Bangladesh is getting better now than the past. But there are scope to be improved. The following areas on which the concept has been improvably practiced:  Functional Concept: HR role was concentrated to hiring firing and letter issuance-dispatching-filing stage Now change to Employee motivation, Employee development, employee retention, facilitating organizational development initiatives etc. 9
  • 10. HR PRACTICES IN BD Investment Concept: Treated as a cost centre, so no initiative for the development of HR Now HR treats as investment centre. As such in many organizations, employee development is viewed as part of business plan. 10
  • 11. HR PRACTICES IN BD  Relationship: Employer - Employee relationships is better than the past. But till now there are a lot of scope to improve in the employer-employee relation as well as employee-employee relations.  Recognition: Employers now started to recognition of the employees’ participation in business planning, major decision making and organizational change process has increased. But till today this practice is suffering with lots of limitations  Formation of the Bangladesh Society for Human Resources Management (BSHRM)- A platform for HR Professionals in Bangladesh 11
  • 12. FACTORS AFFECTING HRM PRACTICE IN BANGLADESH  Attitude of top management towards employees  Weakness inbuilt in the job  Nature of the Labor forces  Weak & Unenlightened labor movement  Lack of qualified & experienced people in the right profession  Lack of Long range planning  Lack of support from line managers/top level 12
  • 13. IMPORTANCE/ SIGNIFICANCE/ OBJECTIVES OF HRM HRM is not a separate part of management rather “a basic function of management allowing all levels and all types of management”----Pigors and Myers.  HRM is the necessary part of the organizing function of management- Selecting, training, and evaluating the work force.  As an important strategic tool HRM helps establish an organization’s sustainable competitive advantage.  It adds value to the firm  Meeting economic competition  Controlling labor cost and overall cost of production  Making valuable investment effective  Keep pace with the technological development  Increase in total employment and efficient workforce of the country  Multinational operation becomes easier 13
  • 14.  A line function - direct activities in own department  A coordinated function - ensuring line manager’s duties  Staff functions - carrying out ‘innovator’ role by providing up-to- cc date information - assisting line managers in HR activities - playing ‘employee advocacy’ role by representing employee interests 14 HR MANAGER’S 3 DUTIES INCLUDE:-
  • 16. FUNCTIONS OF HRM 16 1. Acquisition: It means the estimation of demand and supply of labors. This function includes- Human resource planning Recruiting -Internal -External Employee socialization 2. Development: Development as a function of HRM means employee training, Management development, and career development.
  • 17. 3.Motivation: Motivation is a set of forces- drive, desire, wish that influence to exert high level of effort to perform tasks. It includes- Job design Performance evaluation Rewards Job evaluation Compensation &benefits Discipline 4.Maintenance: The final function of HRM is Maintenance. It is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organization. It includes- Safety & health Employee Relations Functions of HRMFunctions of HRM 17
  • 18. CHALLENGES TO HRM 18  Globalization  Sales Expansion  New Foreign Products  Cut labor costs  Forming Partnership  Technological Trends  Trends in nature of workforce  High Tech Jobs  Service Jobs  Knowledge work and Human Resource capital  Deregulation = Freedom of owning  Ethical Issues  Managing within the Law  Equal employment laws  Occupational safety and health laws  Labor laws  Demographic Trends  Gen ‘Y’  Retirees  Non traditional workers  Creating High Performance Work System (HPWS)
  • 19. Again, HR strategies are the courses of action HR uses to help the company achieve its strategic aims. For example Fed Ex’s strategic aims to achieve superior levels of customer service and high profitability through committed employee. Its basic HR OBJECTIVE is thus to build a committed workforce……. 19
  • 20. STRATEGIC ROLE OF HRM  HRM should be strategic business partner of an organization  Should support business strategies  In addition to internally representing the employees (people dimension), should also have external focus  Forward thinking and proactive  Assist the organization in creating and maintaining competitive edge  Should try to work as profit center and economies its operations  Should add value to the organization 20