1. Evolution of Human Resource Management
Period before Industrial Revolution – The society was primarily an agriculture
economy with limited production. Number of specialized crafts was limited and was
usually carried out within a village or community with apprentices assisting the master
craftsmen. Communication channel were limited.
Period of Industrial Revolution (1750 to 1850) – Industrial revolution marked the
conversion of economy from agriculture based to industry based. Modernization and
increased means of communication gave way to industrial setup. A department was set
up to look into workers wages, welfare and other related issues. This led to emergence
of personnel management with the major task as
- Worker’s wages and salaries
- Worker’s record maintenance
- Worker’s housing facilities and health care
An important event in industrial revolution was growth of Labour Union (1790) – The
works working in the industries or factories were subjected to long working hours and
very less wages. With growing unrest , workers across the world started protest and this
led to the establishment of Labour unions. To deal with labour issues at one end and
management at the other Personnel Management department had to be capable of
politics and diplomacy , thus the industrial relation department emerged.
Post Industrial revolution – The term HRM saw a major evolution after 1850. Various
studies were released and many experiments were conducted during this period which
gave HRM altogether a new meaning and importance. A brief overview of major
theories release during this period is presented below.
•Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the
evolution of scientific human resource management approach which was involved in
- Worker’s training
- Maintaining wage uniformity
- Focus on attaining better productivity.
•Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthrone experiment shifted the focus of Human
resource from increasing worker’s productivity to increasing worker’s efficiency
through greater work satisfaction.
•Douglas McGregor Theory X and Theory Y (1960)
•Abraham Maslow’s Hierarchy of needs ( 1954) – These studies and observations led
to the transition from the administrative and passive Personnel Management
approach to a more dynamic Human Resource Management approach which
considered workers as a valuable resource.

2. Table 1: Milestones in the Development of Human
Resource Management
• 1890-1910
• Frederick Taylor develops his ideas on scientific
management. Taylor advocates scientific selection of
workers based on qualifications and also argues for
incentive-based compensation systems to motivate
employees.
• 1910-1930
• Many companies establish departments devoted to
maintaining the welfare of workers. The discipline of
industrial psychology begins to develop. Industrial
psychology, along with the advent of World War I, leads to
advancements in employment testing and selection.
• 1930-1945
• The interpretation of the Hawthorne Studies' begins to
have an impact on management thought and practice.
Greater emphasis is placed on the social and informal
aspects of the workplace affecting worker productivity.
Increasing the job satisfaction of workers is cited as a
means to increase their productivity.
• 1945-1965
• In the U.S., a tremendous surge in union membership
between 1935 and 1950 leads to a greater emphasis on
collective bargaining and labor relations within
personnel management. Compensation and benefits
administration also increase in importance as unions
negotiate paid vacations, paid holidays, and insurance
coverage.

3. As a result of these principles and studies , Human resource
management became increasingly line management function , linked
to core business operations. Some of the major activities of HR
department are listed as-
Recruitment and selection of skilled workforce.
Motivation and employee benefits
Training and development of workforce
Performance related salaries and appraisals.
Strategic Human Resource Management Approach
With increase in technology and knowledge base industries and as a
result of global competition , Human Resource Management is
assuming more critical role today . Its major accomplishment is
aligning individual goals and objectives with corporate goals and
objectives. Strategic HRM focuses on actions that differentiate the
organization from its competitors and aims to make long term impact
on the success of organization.

4. THE HISTORICAL BACKGROUND OF
HUMAN RESOURCE MANAGEMENT
Human resource management has
changed in name various times
throughout history. The name change
was mainly due to the change in
social and economic activities
throughout history.
THE HISTORICAL BACKGROUND OF
HUMAN RESOURCE MANAGEMENT
Human resource management has
changed in name various times
throughout history. The name change
was mainly due to the change in
social and economic activities
throughout history.

5. •It all started when Mary Wood was asked to start engaging girls
during the 1st world war.
• In the 1st world war personnel development increased due to
government initiatives to encourage the best use of people.
• In 1916 it became compulsory to have a welfare worker in
explosive factories and was encouraged in munitions factories.
•A lot of work was done in this field by the army forces.
•The armed forces focused on how to test abilities and IQ along
with other research in human factors at work.
•In 1921 the national institute of psychologists established and
published results of studies on selection tests, interviewing
techniques and training methods.
Recruitment and Selection
Acquisition of other Personnel Activities
•During the 2nd world war the focus was on
recruitment and selection and later on training;
improving morale and motivation; discipline;
health and safety; joint consultation and wage
policies.
•This meant that a personnel department had
to be established with trained staff.

6. Legislation
•In the 1970's employment legislation increased
and the personnel function took the role of the
specialist advisor ensuring that managers do not
violate the law and that cases did not end up in
industrial tribunals
Flexibility and Diversity
•In the 1990's a major trend emerged where employers were
seeking increasing flexible arrangements in the hours worked by
employees due to an increase in number of part-time and
temporary contracts and the invention of distance working.
•The workforce and patterns of work are becoming diverse in
which traditional recruitment practices are useless.
• In the year 2000, growth in the use of internet meant a move to
a 24/7 society.
•This created new jobs in e-commerce while jobs were lost in
traditional areas like shops.
•This meant an increased potential for employees to work from
home.
•Organizations need to think strategically about the issues these
developments raise. HRM managers role will change as changes
occur.

7. Information Technology
•Some systems where IT helps HRM are: Systems for e-
recruitment; On-line short-listing of applicants;
Developing training strategies on-line; Psychometric
training; Payroll systems; Employment data; Recruitment
administration; References; Pre-employment checks.
•IT helps HR managers offload routine tasks which will
give them more time in solving complex tasks.
• IT also ensures that a greater amount of information is
available to make decisions.
Evolution of Human Resource
Industrial Revolution
Trade Unionism
 Social responsibility era
 Scientific Management Era
 Human Relations Era
Behavioral Science Era
 System Approach Era
Contingency Approach Era

11. HUMAN RESOURCE POLICIES :--
Definition Policy : A set of policies are principles, rules,
and guidelines formulated or adopted by
an organization to reach its long-term goals and
typically published in a booklet or other form that is widely
accessible.
Policy and Procedure :
Policies and procedures are designed to influence and
determine all major decisions and actions, and
all activities take place within the boundaries set by them.
Procedures are the specific methods employed to express
policies in action in day-to-day operations of the organization.
•Together, policies and procedures ensure that a point of
view held by the governing body of an organization is
translated into steps that result in an outcome compatible with
that view.
Human Resource Policies
Human resource policies are
systems of codified decisions,
established by an organization, to
support administrative personnel
functions, performance
management, employee relations
and resource planning.
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12. Purpose
• HR policies allow an organization to be clear with
employees on:
–The nature of the organization
– What they should expect from the company
– What the company expects of them
– How policies and procedures work at your
company
–What is acceptable and unacceptable behavior
– The consequences of unacceptable behavior
70
Human Resource Policies
• Each policy should include all the elements needed
for easy revision and effective implementation:
– Carefully researched policy language,
– Thorough analysis of underlying management
issues, and
– Comprehensive legal documentation with clear
explanations.
71

13. Human Resource Policies
• Analyze about each potential policy:
– How have we handled this issue in the past?
– Does the size of our workforce justify having a
policy about this issue?
– Are we willing to invest the time it takes to keep
the policy up to date?
– What do we hope to accomplish with this policy?
What are the outcomes?
– Will this policy foster something our organization
believes in ?
73
Human Resource Policies
• Analyze about each potential policy:
– How have we handled this issue in the past?
– Does the size of our workforce justify having a
policy about this issue?
– Are we willing to invest the time it takes to keep
the policy up to date?
– What do we hope to accomplish with this policy?
What are the outcomes?
– Will this policy foster something our organization
believes in ?
73

14. Functions of HR Department
• Workforce Management
• Recruitment and Selection
• Training and Development
• Compensation and Benefits
• Performance Management
• Labor Relations
• Personnel Administration
76

15. Succession Planning
81
• Assess the potential vacancies in leadership and
other key positions
• Assess the readiness of current staff to assume the
positions
• Develop strategies to address these needs based on
the skill gaps
HIRING
/
RECRUITMENT
&
SELECTION
83

16. Key Aspects of Hiring Policy
· Recruiting Sources
· Selection and Hiring Procedures
· Offer Letter
· Reference Checking
· Background Investigations
· Rejecting An Applicant
· Equal Employment Opportunity and Hiring
· Physical and Educational Requirements
· Medical Inquiries and Examinations
85
Sources of Recruitment
• Internal Sources
– Retrenched Employees
– Retired Employees
– Dependent of deceased employees
– Internal Job Postings
– Promotions
– Demotions
– Moving across verticals
86

17. Sources of Recruitment
• External Sources
– Placement Agencies and Consultants
– Campus Recruitments
– Off-campus Recruitments
– Employees working in other organizations
– Employment Agencies
– Referrals
– Walk-Ins
87
TRAINING
&
DEVELOPMENT
88

18. Training and Development
• The field concerned with organizational
activity aimed at bettering the performance of
individuals and groups in organizational
settings.
• The objective is to make sure the availability
of a skilled and willing workforce to
an organization
89
Training and Development policy
structure
• introduction/definitions/scope (purpose and reach of policy)
• cultural/philosophical (values, vision, ethos, guiding principles, etc)
• legal (health and safety, discrimination, etc)
• people (where people stand in organizational priorities, input, care, etc)
• methods (career development, succession)
• systems/tools (training manuals, knowledge and information management
• process/operations (how T&D relates to operations)
• financial (planning, budgets, prioritization, etc)
• responsibility/authority (how T&D is managed, enabling voluntary and extra
T&D)
• social responsibility (CSR, ethics, environment, sustainability, diversity)
• review and measurement (accreditation, qualifications, independent audit,
etc)
90

19. Compensation and Benefits
• Employee benefits in kind are various non-wage compensations provided
to employees in addition to their normal wages or salaries.
• Some of these benefits are:
– HRA
– Medical Reimbursement
– Insurance (health, dental, life etc.)
– Conveyance
– Retirement Benefits
– Profit sharing etc.
• The Compensation policy should state the proportion of fixed and
variable components.
• The policy should be formulated considering the tax implications.
92
Performance Management
• A formal system for evaluating employee
performance can help the employer identify and
correct performance problems, plan employee
career development, assess readiness for transfer or
promotion, determine compensation, and improve
productivity by communicating goals and
expectations to employees.
94

20. Policy Structure
· Performance Appraisal
· Frequency of Appraisals
· Informal Discussion
· Significant Events
· Supervisor Training
· Factors to be Appraised
· Supervisors’ Recommendation and Documentation
· Action Plan
· Performance Goals
· Employee’s Opportunity to Comment
· Final Review
· Timing of Evaluations
· Accurate and Fair Evaluations
· Negligent Evaluation and Performance Review Defamation
95
Grievance Redressal
• Objective
– To create a work environment, which would be
free of hostility and try breed in a work culture
which propagates a free and open thought
process, encouraging growth and harmony free
from encumbrance of force.
97

21. Advantages of Good HR Policies
• Curbing litigation
• Communication with employees
• Communication with managers and
supervisors
• Time Savings
101
Job Analysis Job Description
Job Specification
Recruiting and
Selection Policies
Performance
Appraisal Policies
Compensation
Policies
Training and
Development
Policies
102

22. What is a Job?
 Job
a task or piece of work, especially
one that is paid
Position
 The different duties and
responsibilities performed by
only one employee
 Job Family
 A group of individual jobs with
similar characteristics
Job
Job Job Job
 Job Specification
 Statement of the needed knowledge, skills, and
abilities (KSAs) of the person who is to perform the
job
 Job Description
 Statement of the tasks, duties, and responsibilities
(TDRs) of a job to be performed
Job Analysis
The process of obtaining information about jobs by
determining what the duties, tasks, or activities of jobs
are.
HR managers use the data to develop job
descriptions and job specifications that are the basis
for employee Recruitment & Selection, performance
appraisal and development.

23. Definitions (Continued)
 Job analysis - Systematic process of
determining the skills, duties, and
knowledge required for performing jobs in
an organization
 Job description – document providing
information regarding tasks, duties, and
responsibilities of job
 Job specification – minimum
qualifications to perform a particular job
5

24. Job Analysis
 Goal
 Determine the duties and
responsibilities of a particular job
 Determine how the job relates to other
jobs and the level of importance of the
job
 Determine the necessary qualifications
in order to perform the job
 Determine the working conditions
associated with the job.
Job Requirements
Its Importance
Recruitment
Selection
Performance
Appraisal
Training and
Development
Compensation
Management
Determine recruitment qualifications
Provide job duties and job specifications for
selection process
Provide performance criteria for evaluating
employees
Determine training needs and develop
instructional programs
Provide basis for determining employee’s rate
of pay

25. Types Of Job Analysis Information
Considerable information is needed, such
as:
 Worker-oriented activities
 Machines, tools, equipment, and work aids
used
 Job-related tangibles and intangibles
 Work performance
 Job content
 Personal requirements for the job
 Work activities
 Working conditions
 Machines and equipment
 Job performance
 Operations
 Standards
 Time
 Experience, training, and skills
 Supervision and promotion patterns
What is analyzed?

26. 11
Job Analysis: A Basic Human Resource Management Tool
Tasks Responsibilities Duties
Job
Analysis
Job
Descriptions
Job
Specifications
Knowledge Skills Abilities
Human Resource
Planning
Recruitment
Selection
Training and
Development
Performance Appraisal
Compensation and
Benefits
Safety and Health
Employee and Labor
Relations
Legal Considerations
Job Analysis for Teams
The
Process
of Job
Analysis

27. Summary of Types of Data Collected Through Job Analysis
 Work Activities – work activities and processes; activity records (in
film form, for example); procedures used; personal responsibility
 Worker-oriented activities – human behaviors, such as physical
actions and communicating on the job; elemental motions for
methods analysis; personal job demands, such as energy
expenditure
 Machines, tools, equipment, and work aids used
 Job-related tangibles and intangibles – knowledge dealt with or
applied (as in accounting); materials processed; products made or
services performed
 Work performance – error analysis; work standards; work
measurements, such as time taken for a task
 Job context – work schedule; financial and nonfinancial incentives;
physical working conditions; organizational and social contexts
 Personal requirements for the job – personal attributes such as
personality and interests; education and training required; work
experience
14
Sources of job analysis
informaiton
 Manager
 Incumbent
 SME
 Job analyst
 DOT Dictionary of Occupational Titles
 O*NET

28. 16
18

29. 19
Job Analysis and the Law
 Fair Labor Standards
Act – employees
categorized as exempt or
nonexempt
 Equal Pay Act – similar
pay must be provided if
jobs are not substantially
different as shown in job
descriptions
20
Job Analysis and the Law
(Continued)
 Civil Rights Act – basis for adequate defenses
against unfair discriminations charges in
selection, promotion, and other areas of HR
administration
 Occupational Safety and Health Act – specify
job elements that endanger health or are
considered unsatisfactory or distasteful by most
people
 Americans with Disabilities Act – make
reasonable accommodations for disabled
workers