Principles and policies of hrm

related to HRM

1. PRINCIPLES AND POLICIES OF HRM Padmini y.s

2. PRINCIPLES OF HUMAN RESOURCE MANAGEMENT   Principle of individual development – to offer full and equal opportunities to  every employee to realise his/her full potential. Principle of scientific selection – to select the right person for the right job.  Principle of free flow of communication - to keep all channels of  communication open & encourage upward, downward, horizontal, formal &  informal communication. Principle of participation – to associate employee representatives at every  level of decision making.  Principle of fair remuneration - to pay fair & equitable wages & salaries  commiserating with jobs . Principle is a fundamental truth established by research, investigation and  analysis

3. Principle of incentive – to recognise and reward good performance.  Principle of dignity of labour – to treat every job holder with dignity and  respect.  Principle of labour management co-operation – to promote cordial industrial  relations.  Principle of team spirit – to promote co-operation & team spirit among  employees.  Principle of contribution to national prosperity – to provide a higher  purpose of work to all employees and to contribute to national prosperity. 

4. HUMAN RESOURCE POLICIES   Examples of specific HR policies :  Policy of hiring people with due respect to factors like reservation, sex,  marital status etc.  Policy on terms & conditions of employment- compensation policy &  methods, hours of work, overtime, promotion, transfer, lay-off.  Policy with regard to medical assistance-sickness benefits, company medical  benefits.  Policy regarding training & development – need for, methods, frequency of  training and development.  Policy regarding housing, transport, uniform & allowances.  Formulating Policies  - A policy is a plan of action. It is a statement of intention committing the  management to a general course of action.

5. F ive principle sources for determining the content and meaning of  policies .   Past practice in the organisation  Prevailing practice in rival companies  Attitudes & philosophy of founders of the company as also its directors  & top management.  Attitudes & philosophy of middle & lower management.  Knowledge and experience gained from handling countless personal  problems on a day-to-day. 

6. Evolution and Development of Human Resource Management (HRM) Trade Union Movement Era Social Responsibility Era Scientific Management Era Human Relations Era Behavioural Science Era Systems Approach Era Contingency Approach Era

7. 1.TRADE UNION MOVEMENT ERA Condition of workers was pathetic in the aftermath of factory system, industrial revolution and first world war State intervention was felt; abolition of ‘jobber system’ and the appointment of labour officers in industrial enterprise to perform the recruitment function as well as to settle the worker’s grievances Workers started forming associations – Trade Unions- Trade Union Act 1926

8. 2.SOCIAL RESPONSIBILITY ERA Humanistic and Patristic Approach was seen by some Industrialist In the starting decade of 20 th   century Robert Owen being one of them. He viewed that the principal social and economic environments influence the physical mental and psychological development of workers. Therefore, in order to improve the productivity, it is necessary to improve, conditions of employees by removing them from an adverse environment or by changing the environment with the provisions of more satisfactory living and working conditions.

9. 3.SCIENTIFIC MANAGEMENT ERA Fredrick Winslow Taylor’ in the USA early in the 20th century developed four principles of scientific management 1. Development and use of scientific methods in setting work standards, determining a fair day’s work, and best way of doing work . (Time study, Motion Study, Standard tools and techniques) 2. Scientific selection and placement of workers best suited to perform the various tasks and provision of their training and development for maximum efficiency . (incentive and differential piece wage system) 3. Clear cut division of work and responsibility between management and workers. 4. Harmonious relations and close cooperation with workers to secure performance of work in accordance with the planned jobs and tasks.

10. HUMAN RELATIONS ERA B etween 1925 and 1935 many experts expressed their opinions towards the human aspects of organisational activities Hugo Munsterberg in his book “Psychology and Industrial Efficiency” suggested the use of psychology in selection, placement, testing and training of employees in an organisation. Elton Mayo and his associates conducted a series of experiments from 1924 to 1932 at the Hawthorne plant of the Western Electric company in the USA

11. Findings of the Hawthorne Experiments were as follows: 1. Physical environment at the work place do not have any material impact on the efficiency of work . 2. Favourable attitudes of workers and work-team towards their work were more important factors determining efficiency. 3. Fulfillment of the worker’s social and psychological needs had a beneficial impact on the morale and efficiency of workmen. 4. Employee groups based on social interactions and common interests exercised a strong influence on worker’s performance. 5. Workers cannot be motivated solely by economic rewards. More important motivators are job security, recognition, right to express their opinion on matters related to them.

12. 4.BEHAVIOURAL SCIENCE ERA B ehavioural science era assumes human behaviour as a means to achieve efficiency in performance B ased on the findings of intensive research carried out by behavioural scientists belonging to the disciplines of sociology, social psychology, anthropology and management experts

13. Important elements of the behavioural approach of HRM Individual behaviour is linked with the group behaviour . Informal leadership rather than the formal leadership of manager is more effective in influencing people to achieve standards of performance By nature, people do not dislike work they are motivated by self- control and self development. Expanding subordinate influence, self- control and self- direction can improve operating efficiency.

14. 5.SYSTEMS APPROACH ERA S ystem is defined as “an organised and complex whole: an assemblage or combination of things or parts forming a complex unitary whole.” Any working organisation usually consists of three broad sub-systems Technical Sub-system , Social Sub- system , Power Sub-system Activities relating to procuring and transforming inputs into outputs are viewed as enterprise operations.

15. S ystem approach is characterized by the following features: 1. A system is a group of inter-related elements which are separate entities/units. 2. All the elements are inter-related in an orderly manner. 3. There is the need for proper and timely communication to facilitate interaction between the elements. 4. The interaction between the elements should lead to achieve some common goal.

16. 6.CONTINGENCY APPROACH ERA B elieves that there is no one way of managing that works best in all situations I t is imperative for managers to analyse different situations and then use the best approach best suitable in that particular situation