human resource management introduction and evolution

Introduction to Human resource management and its evolution

1. “ ONE MACHINE CAN DO THE WORK OF FIFTY ORDINARY MEN. NO MACHINE CAN DO THE WORK OF ONE EXTRAORDINARY MAN” --Elbert Hubbard

2. What is HRM? Human : The skilled workforce in the organization Resource : R efer to limited availability or scarce Management : Refer to maximize or proper utilization and make best use of limited and a scarce resource. “ you must treat your employees with respect and dignity because in the most automated factory in the world, you need the power of human mind. That is what brings in innovation. If you want high quality minds to work for you then you must protect the respect and dignity.” --- Mr. N. Narayana Murthy

3. Definitions of HRM 1 . “ Human resource management is concerned with the people dimension management. Since every organization is made of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization, essential for achieving organizational objectives. This is true, regardless of the type of organization government, business, education, health recreation of social action -- by Decenzo and Robbins 2. “ Personnel management is 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 objectives are accomplished” --by Edwin B. Flippo 3. “The term human resources can be thought of as “the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s workforce, as well as the values, attitudes and beliefs of the individuals’ involved” --by Leon C. Megginson ,

4. Personnel Management vs. Human Resource Management Personnel Management Human Resource Management Personnel means persons employed . And which means management of employees Employees in PM is mostly treated as an economic man as his/her services are exchanged for wage/salary Employee is viewed as a commodity or tool or equipment which can be purchased and used Employees are treated as cost centre and therefore management controls the cost of labor Employees are used mostly for organizational benefit Personnel function is treated as only an auxiliary HRM is the management of employees skills, knowledge, abilities, talents aptitudes, talents creative abilities etc., Employee in HRM is treated not only as economic man but also as social and psychological man. Thus, the complete man is viewed under this approach. Employee is treated as a resource. Employee is treated as a profit centre and therefore, invests capital for HR development and future utility. Employees are used for the multiple mutual benefit of the organization, employees and their family members. HRM is a strategic management function.

5. Evolution of HRM 1750-1900 - Industrial Revolution 1900 -Social responsibility era 1910 -Scientific management era 1926 -Trade Unionism 1930 -Human relations era 1936 -Behavioral science era 1960 - 1970 -System approach era 1964 -Contingency approach era 1980 -Operational approach

6. Industrial Revolution (1750-1900) Industrial Revolution: Was the transition to new manufacturing processes in Europe and US 1760 to sometime between 1820 and 1840 and later on to India. . It includes going from: hand production methods to machines new chemical manufacturing iron production processes the increasing use of steam power the development of machine tools and the rise of the factory system.

7. Industrial revolution (Cont..) The seed of HRM were sown during Industrial revolution 1850’s in western Europe and USA. The wind gradually reached to India in beginning of 20 th century. During this period: Replacement of human effort and skill by the work of machines i.e.. Machines were bought in Development of factory system Rationalization of work and division of work Commodity concept of labor Employers were keen to meet production targets rather than satisfy workers Govt did very little to protect the interests of workers .

8. Social Responsibility era(1900) Robert Owen , British industrialist is considered to be the first to adopt humanistic and paternalistic approach. He viewed that the social and economic environment influence the physical, mental and psychological development of workers His philosophy was that owner is like a father and worker is like a child . He practiced the following: Provision for reduced working hours Housing facilities Education of workers and their children He admired for giving human treatment to workers

9. Scientific Management era (1910) ALSO KNOWN AS TAYLOSRISM OO One of the earliest attempts to apply science to the engineering of processes and to management. Themes like rationality, emparicism,work ethics, efficiency and elimination of waste and standardization of best practices Transformation of craft production in to mass production at a larger scale. Knowledge transfer between workers

10. Scientific management era (Cont..) This concept was introduced by Fredrick Winslow Taylor in USA early in 20 th century. He developed following four principles: Use of scientific methods in setting work standards Scientific selection and placement of workers best suited for the tasks. Also provision for training. Clear cut division of work ad responsibility between management and workers. Harmonious relations and close cooperation with workers. He developed following techniques for the same: Time study Motion study Standardization of tools, equipments and machinery and working conditions Incentive wage plan with differential piece rate of wage s.

11. Trade Unions (1926) This was the period when state intervention to protect the worker’s interest was felt necessary. During this period: Workers started to form their associations Trade Union Act, 1926 was passed in India . The basic philosophy was to safeguard worker’s interest and to sort out their problems like: Child labor Long hours of work Poor working conditions

12. Trade unions (Cont..) The unions used strikes, lockouts etc. as weapons for acceptance of their problems and these activities of trade union gave rise to personnel practices such as: Collective bargaining Grievances redressal Arbitration Employee benefits programs Installation of rational wage structures.

13. Human relations era (1930) This particular period focused on the feelings, attitudes and needs of the workers as human beings. Between 1925 and 1935 Hugo Munsterberg a psychologist suggested the use of psychology in selection, placement, testing and training the employees in an organization Between 1924 to1932, Elton Mayo conducted a series of experiments at Hawthorne plant of western electric company in USA..

14. Human Relations Era(Cont..) Main findings of Hawthorne experiments were: physical environment should be good Favorable attitudes of workers ad work team towards their work Fulfillment of workers social and psychological needs’ Workers can be motivated through job security, right to express their opinion on matters related to them other than monetary benefits.

15. Human Relations Era (cont..) Based on findings it was quoted Relation between superior and subordinate should relate to social and psychological satisfaction of employee Ultimate goal is to make employee productive and it can be done by attaining satisfaction of employee

16. Behavioral Science Era( 1936) It was concerned with social and psychological aspects of human behavior. Some of important elements were: Individual behavior is linked with group behavior Informal leadership rather than formal leadership Motivation by self control and self development Improving efficiency through self operating Human Relations Era: Happy Worker = Productive Worker Behavioral Science Era: Human Behavior as a means to achieve efficiency in performance .

17. Systems Approach Era(1960-1970) A system is a set of interrelated but separate elements or parts working towards a common goal. The enterprise procures and transforms inputs such as physical, financial and human resources in to outputs such as products, services and satisfaction offered to people.

18. Systems Approach Era(Cont..) To carry out enterprise operations, each enterprise has certain departments known as sub systems such as: Production sub-system Finance sub-system Marketing sub-system HR sub-system Technical subsystem: resources needed Social subsystem: informal group relations Power subsystem: exercise of power

19. Contingency Approach( 1964) The contingency approach is a management theory that suggests the most appropriate style of management is dependent on the context of the situation and that adopting a single rigid style is inefficient in the long term. Organization are individually different, face different situations (contingency variables). And require different ways of managing. Contingency managers typically pay attention to both the situation and their own styles and make efforts to ensure both interact efficiency.

20. Operations Approach(1980) Management is the study of what managers do . It emphasis on management function and various concepts and principles involved in performing these functions Management functions are universal irrespective of the type of organization or level of management in organization. The conceptual framework of management can be constructed on the basis of the analysis of management process and identification of management principles. The central core of managing revolves around plannning,organisingstaffing,directing,and controlling. This central core of management is unique and is not found I other activities

21. Contingency approach era According to contingency, the best way to manage varies with situation. There may not be the universal way of managing all the situations. It is imperative for managers to analyze different situations and then use the best suitable in that particular situation

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