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TOPICS

1.EVOLUTION OF
HUMAN RESOURCE MANAGEMENT

2. DEFINITION OF HUMAN RESOURCE


MANAGEMENT

3. DIFFERENCE BETWEEN HUMAN


RESOURCE MANAGEMENT AND
PERSONNEL MANAGEMENT
Presented BY

THOUFEEK. A
tt87@in.com
0994 6666 584
1.EVOLUTION OF
HUMAN RESOURCE MANAGEMENT
Eleven stages
1. Human resource in pre-industrial era

2. Industrial revolution and the factory system

3. Emergence of modern corporation and


managerial capitalism

4. Scientific management, welfare work and


industrial psychology
5. World war 1 and the emergence of HRM
as a profession

6. Period 1940 to 1970

7. The golden age of industrial relations and


the personnel management maintenance
function, 1935-1970
8. Quality of work life era

9. The emergence of contemporary HRM function

10.Strategic focus era

11.The HRM function today


Stage 1- HUMAN RESOURCE IN PRE
INUSTRIAL ERA

• 1400 A.D to 1700s

• Absence of HRM function in organisations

• Cessation of feudalism- release of labour


from land and beginning of the free
employment relationship
• Shift from subsistence agriculture to a
commercial based economy

• Spectacular growth of towns and


villages along with middle class
Stage 2- INDUSTRIAL REVOLUTION AND
THE FACTORY SYSTEM

• In UK- late 18 th century, USA 19 th century


and in INDIA the second half of 20 th century

• Replacement of human effort and skill by the


work of machines

• Development of factory system


- displaced self employment household
and handicraft
Stage 2 cont…….

-rationalisation of work and division


of work

- necessity of supervision of large


number of workers

- personnel system practices became


autocratic, based upon a commodity
concept of labour
- management responsibility delegated
to foremen or first line supervisors

- foreman usually used force and fear


for controlling the workers
Stage 3- EMERGENCE OF THE MODERN
CORPORATION AND MANAGERIAL
CAPITALISM

• From 1860 to the turn of the century

• Emergence of the modern HRM practice

• Transfer of employment from agriculture to


industrial, from small scale to large scale.
• modern business enterprise along with
capital management

• Separation of the operation from the


ownership of firms and employment of
salaried managers
Stage 4- SCIENTIFIC MANAGEMENT,
WELFARE WORK, INDUSTRIAL
PSYCHOLOGY AND HAWTHORNE STUDIES

Scientific management
- F.W. TAYLOR
- “the one best way” and the fastest time a
worker could perform a particular task.
1. science, not the rule of thumb
2. harmony not discord
3. co-operation not individualism and
4. maximum output, in place of
restricted output
Scientific management cont………..

• Each worker would be compensated


according to their out put

• SM represented a new attitude towards


management

• Taylor proposed functional management as a


part of SM
Contribution of scientific management to
HRM

• Taylor‟s proposal for functional


management called attention to the need
for a separate human resource
function

• Work and jobs can be systematically


studied analysed, redesigned or improved
upon
Contribution cont……..

• Importance of proper selection


procedures and training methods

• Differential payment system

• Taylor highlighted the need of workers


to be won over and led by management
Stage 4- cont……..

WELFARE WORK
• Efforts made in the 19 th and early 20 th
century

• To improve the working condition of factory


workers

• More systematic approach to labour problems


Purpose of Welfare work

• The averting of industrial conflict and


unionisation

• The promotion of good management and worker


relations

• The efforts to increase worker productivity and


reduce turn over
Stage 4- cont….

INDUSTRIAL PSYCHOLOGY
 Focused on the worker and decreasing the
psychological and physiological costs of work

 Began in 1931 HUGO MUNSTERBERG


published Psychology and Industrial
efficiency
psychology could provide in the areas
of employment testing, selection,
training, efficiency and motivation
Hawthorne studies

 1920-32, conducted by
Elton Mayo in Western Electric company

 The studies on psychological aspects


highlighted the followings

-importance of team work, participation,


loyalty
• Importance of sociology and psychological
aspect on productivity

• Shift from scientific management like „human


engineering‟ and standards to „human
relations‟
• Organisation is considered as a social system
and not a techno economic system as viewed
by SM
Stage 5- WORLD WAR 1 AND THE
EMERGENCE OF HRM AS A PROFESSION

• Scientific personnel administration and


centralising

• Personnel management department was


emerged

• Labour turnover increased


Stage 5 cont……..

 Labour shortage, increased wages and


demand for employees for war production

 In UK and USA firms established personnel


departments in between 1920 & 1950

 Firms adopted functional management

 Unsystematised HRM practices


Stage 6- Period 1940 to 1970

Behavioural school of thought


- by 1950

- Major architects in this field are


-Abraham Maslow with his need
hierarchical theory

- Herzberg two factor motivation theory


 Douglas McGregor proposed theory x and
theory Y

they advocated ways and means of


behavioural modification by managers and
workers
• On the part of managers they suggested
different leadership style

• In order to modify the behaviour of workers

-improved communication

-participation
• MBO

• Job redesign to reduce boredom and fatigue

• Management development
and training programmes

• Financial incentive scheme

• Job enrichment and job enlargement


Human relations movement

• Associated with Elton mayo and


Fritz Roethlisberger

• Increasing productivity through discovering


the needs of workers

• It began in 1945 as a result of Hawthorne


experiment and continued till 1960
Stage 6- cont……..

• under human relations the manger


become responsible for integrating
employees into work situation in a way
that would motivate them to work
together co operatively and productively
and for assisting employees to
experience economic, psychological and
social satisfaction.
Stage 7- THE GOLDEN AGE OF INDUSTRIAL
RELATION AND THE PERSONNEL MANAGEMENT
MAINTENANCE FUNCTION

• In the period of great depression

• Increase the need for the practice of HRM as


a result of growth in union and collective
bargaining
PROVISION OF LEGISLATION
 From 1945 to 1970 the primary focus of the
employment relationship was on IR

 The passing of several acts in USA


encouraged unionisation

 The pro-union legislation was followed by


world war 2 which created an extraordinary
demand for labour
GOLDEN AGE OF IR
 Between 1948 and 1958

 The general focus of HRM was on IR because


the primary need of many organisation was
to operate in the collective bargaining
framework of labour relations
Firms had depreciated personnel
department by the effect of depression

Govt. involvement in the economy


during the war created a need for
personnel department in all companies
Stage 8- QUALITY OF WORK LIFE ERA

• Began in 1960s and continued till 1970s

• Rise in the view of the importance of HR as


an assets, not liabilities

• Series of efforts directed as satisfying the


interests of both employees and firms

• Policies and practices which maximised


organisation performance and employee
Practices and programmes implemented

 Job design and enrichment with career


planning and development

 For improving the psychological quality of


employees

 Create more committed employees through


employee participation
Stage 9- THE EMERGENCE OF
CONTEMPORARY HRM FUNCTION

FACTORS LEADING TO TRANSFORMATION OF


HRM FUNCTION
• Environmental changes occurred after world war 2

• Private sector unionism started to fall as a


percentage of the labour force

• The shift from manufacturing employment to service


sector employment continued
Stage 9- cont…… Changes in HRM policies

• Growth in international competition, domestic


competition, deregulation, globalisation and
technological change Union avoidance policies

• Dealing with employees directly as individual


rather than on management-union relations

• Dealing employees indirectly and collectively


Cont………

• Develop employees as assets

• Increasing competitiveness of
employees to assist the organisation‟s
goals

• Successful application of Total Quality


Management
Stage 10- STRATEGIC FOCUS ERA

• In the late 1970s there was a considerable change in


image, status and importance of HRM function in
organisations

• In 1970s business strategy was included in the MBA


syllabus

• One of the areas merge with business strategy was


HRM which helped the emergence of strategic HRM
Factors that have contributed to
HRM’s strategic role

• The realisation that the firms competitive advantage


is tied up with managing hr in a strategic way

• Redesigning and restructuring of organisations

• The old hierarchical type structure with tight control


have given way to flatter structure and larger span of
control
Factors cont…..

• New structure focus on employee self control rather


than old tradition of external control

• Need for sound human resource strategy to


effectively manage the highly diverse work force
Stage 11- THE HRM FUNCTIONS TODAY

• Integration of the traditional PM activities and as


well as HRM‟s involvement in overall organisational
planning and change

• HRM today is characterised as a partner in


organisational change, creator of organisational
culture, and facilitator of organisational commitment
Stage 11- cont…..

• The decentralisation of traditional HRM activities from


personnel specialist to senior line management

• Focus on individual employee rather than on


collective management-trade union relation

• Considering employee as the single most important


organisational asset
Stage 11- cont…..

• HRM has become a partner with other management


functions

• HRM become increasingly responsible to cultivate the


requisite culture that is conductive of required
behaviours
DEFINITION OF HRM AND
DIFFERECE BETWEEN HRM
AND PERSONNEL
MANAGEMENT
HUMAN RESOURCE
MANAGEMENT

Definition:
Human Resource Management is the
process of acquiring, training, appraising
and compensating employees, and
attending to their labour relations ,health,
safety and fairness concerns.
[Dessler]
Human Resource Management is defined as a
set of policies, practices and programmes
designed to maximize both personal and
organizational goals.
PERSONAL MANAGEMENT

According to the Institute of Management(U.K).


“ Personal Management is an integral but
distinctive part of management, concerned with
people at work and their relationships within
the enterprise.”
Differences between HRM and PM

Dimension HRM PM

1.Nature of function Line function Staff function

2.Team work HRM is invested in working PM is invested in the


with people, team-building ordinary way of
& team-work. administration of personal
policies and programs

3.Motivation HRM concentrates more on PM concentrate more on


motivation ,morale- selection , recruitment &
boosting and job appraisal of personal
satisfaction
4.Speed of decision Fast decision are taken by Slow decisions are taken
the HRM by the PM

5. Lay managers General / business/line Personal/IR specialists


managers
6. Communication Direct Indirect

7. Job design Team work Division of labour

8.Pay Performance related Job evaluation(fixed grades)

9. Management role Transformational leadership Transactional leadership

10. Managerial task Nurturing Monitoring

11. Training & development Learning companies Controlled access to courses

12. Selection Integrated, key task Separate , marginal task

13. Key relations Customer Labour management

14. Initiatives Integrated Piecemeal


15. Job categories Few Many

16. Respect for employees People are treated as Labour is treated as a tool
assets to be used for the which is expendable and
benefit of an organization, replaceable
its employees and the
society as a whole

17. Shares interest Mutuality of interests Interest of the organization


are uppermost

18. Evolution Latest in the evolution Precedes HRM


subject
REFERENCE

• NIRMAL SING, HUMAN RESOURCE


MANAGEMENT, GALGOTIA
PUBLICATIONS PVT LTD
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