UNIT-IUNIT-I

HISTORY OF HRM (Stages to Modern HRM)

The Industrial Revolution Trade Unionism Scientific Management

“F.W.Taylor developed 4 principles of scientific management -Development of true sciences-scientific selection and training of workers-friendly cooperation b/w management & workers-development of every worker to his fullest potential

Industrial PsychologyAcc. to “Hugo Munster berg” theory ‘matching the worker’s skills with job.

Human Relations Movement‘Hawthorn Experiment’ came in to existence.

Behavioral Sciences‘Frederick Hertzberg’, ‘Maslow’,’likert’ and other theories related with

Motivation and Leadership came into existence. Human Resource Specialist & Employee Welfare

Evolution of the Concept of HRM

The Commodity Concept The factor of Production Concept The Paternalistic concept The Humanitarian Concept The Human Resource Concept The Emerging Concept

Genesis and Growth of HRM in INDIA 1920- Concern for welfare of Factory Workers 1931- Royal Commission came into existence & Appointment

of ‘Labor Officer’ 1948- “Factory’s Act” came into existence & state that Factories

employing 500 or more workers have to appoint ‘Welfare Officer’

1950- Two professional bodies were established- Indian institute of Personnel Management (NIPM),Kolkata National Institute of Labor Management (NILM), Mumbai

1960- Labor Welfare, Industrial Relation, HR administration emerged as the complimentary parts of HRM.

1970- Welfare shifted to higher efficiency. 1980- IIPM & NILM become National Institute of Personnel

Management (NIPM),Kolkata 1990- HRM as a distinct and important part of any organization

PERIOD DEVELOPMENT OUT-LOOK FOCUS STATUS

1920-1940 Beginning Legalistic Statutory welfare Clerical

1940-1970 Struggling for Recognition

Technical and Legalistic

Paternalism Administrative

1970-1990 Introduction of Sophisticated Techniques

Impersonal and

Professional

Regulatory conformance

Management

1990-2000 Promising Philosophical Human values, Productivity

through people

Executive

After 2000 Bright Psychological Development of potential

Top Level

Definition of HRMDefinition of HRM

“HRM is the planning, organizing, directing, controlling of the procurement, development, compensation, integration, maintenance and reproduction of HR to the end that individual organizational and social objectives are accomplished.”

-FLIPPO

Difference b/w HRM & Personnel Management

DIMENSIONS PERSONNEL MGT HUMAN RESOURCE MGT

Philosophy

Nature

Communication

Decision makingApproach

Job designManagement’s roleLevel of trust

Employees are made for rules and regulationsConfined to procurement and training of personnelSlow and downward

Slow

Work oriented

Division of laborTransactional

low

Rules and regulations are meant for employees.Also integrated with corporate management.Fast and both upward and downward.Fast

People + work oriented

Team workTransformational

High

Features of HRM Comprehensive Function Continuous Function Pervasive Function Challenging Function Staff Function People Oriented Action Oriented Individual Oriented Development Oriented Future Oriented Science as well as Art Interdisciplinary Nervous System

Managerial Function

Planning

Organizing

Operative Function

Directing

Staffing

Controlling

Procurement

Development

Integration

Compensation

Maintenance

FUNCTIONS OF HRM

Scope of HRM

Nature of HRM

Employee Hiring

Employee executive implementation

Employee Motivation

Prospects of HRM

Industrial Relation

Employee Maintenance

HRM

Objectives of HRM

Personnel Objective

Functional Objective

Social Objective

Organizational Objective

IMPORTANCE OF HRM

SOCIALSIGNIFICANCE

PROFESSIONALSIGNIFICANCE

SIGNIFICANCEFOR INDIVIDUAL

ROLE OF HR MANAGER

PERSONNELROLE

WALFAREROLE

CLASSICALROLE

FIREFIGHTINGROLE

MISCELLANEOUSROLE

HRM ModelNature of HRM

HR Planning

Job analysis

Recruitment & selection

Placement

Participative Management

Motivation

T & D

Remuneration

Dispute & their Settlement

Future of HRM

Communication

Promotions

Industrial Relations

Trade Unionism

Welfare

Safety & Health

Competent & Willingworkforce

OrganizationalGoals

Comparison b/w HRM & HRDDimensions HRM HRD Status

Orientation

Aims

Incentives used

Responsibility

Morale Productivity Relationship

An independent function with independent sub-functionA service & reactive Function

Seeks to improve the efficiency of people & administrationSalary & economic rewards

Only of HR Manager

Improved satisfaction & Morale as the cause of improved performance

An integrated system consisting of interdependent sub-systemA proactive function

Seeks to develop the total organization its culture

Focus on challenges, creativity & motivationOf all the managers

Improved performance as the cause of improved satisfaction

HRM in Organizational Structure

Organizational Structure

It defines and describes the authority and responsibility relationship b/w various positions.

It indicates the location of decision centers in the organization.

It provides the channels of communication among the members.

Types of organizational structure

H R Department in Line Organizational Structure H R Department in Functional Organizational

Structure H R Department in Line & Staff Organizational

Structure H R Department in Divisionalised Organizational

Structure H R Department in Matrix Organizational Structure

H R Department in Line Organizational Structure

C.E.O.

H R Manager

Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer

clerks clerks clerksclerks

H R Department in Functional Organizational Structure

C.E.O.

H R Manager

Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer

clerks clerks clerksclerks

H R Department in Line & Staff Organizational Structure

C.E.O.

H R Manager

Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer

clerks clerks clerksclerks

Staff Function

Line Function

H R Department in Divisionalised Organizational Structure

C.E.O.

H R Manager

Training OfficerEmployment Officer Wage & Salary Officer Welfare Officer

clerks clerks clerksclerks

H R Officer(Northern Division)

H R Officer(Southern Division)

H R Officer(Eastern Division)

H R Officer(Western Division)

H R Department in Matrix Organizational Structure

C.E.O.

G.M.

H. R. Department

Engineering Department

FinanceDepartment

MarketingDepartment

Project A

Project B

Project C

H R Policies

A policy is a predetermined course of action established to guide the performance of work towards the expected objective.

Policy is a type of standing plan that serves to guide subordinates in the execution of their task.

“Personnel or Labor or industrial relations policy provides guidelines for a wide variety of employment relationship in the organization. These guidelines identifies the organizational intention in Recruitment, Selection, Promotion, Development, Compensation, Motivation & otherwise leading and directing people in the working of the organization”.

- Dale yoder

Essentials of a sound H R Policy

It should express the intention of top management. It should represents the principles which will guide the action. It should be based on the objective of the organization. It should be longlasting and realistic It should be definite, positive and clear. It should be brief, general and flexible, It should be in written form. It should be based on the careful analysis of facts and

information. It should be fair and equitable. It should be capable of being executed.

Formulation of PolicyIdentify the Needs

Gathering Information

Examining policy Alternatives

Putting the policy in Written form

Getting Approval

Implementation

Evaluation and Appraisal

Types of H R Policy

Written and Unwritten Policy General Policy Specific Policy Imposed Policy Originated Policy Appealed Policy

Importance of H R Policy Clear thinking Uniformity and consistency of administration Continuity and stability Sense of security Delegation of authority Team work and loyalty More control Prompt decision making Improve confidence Eliminates biasness

Limitations of H R policy

Less flexibility High cost for formulation High time in formulation High energy in formulation It can not cover all the problems It can not change before certain time