MODULE 1

MODULE 1Introduction to Human Resource ManagementPresented by-Sreelakshmi Nair MBA/10002/15Shipra Shresth MBA/10004/15Navneet Kumar MBA/10001/15Priyamvada Ankita Lal MBA/10003/15

EVOLUTION OF PERSONAL MANAGEMENT AND HRM

Personal Management Managing personnel is the process of making sure the employees are as productive as they can be. This can include hiring, firing, or transferring people to/from jobs they can do most productively.

Human Resource Management Human represents the dimension of HRM which relates to the soft aspects such as commitment of employees through participation and the most important assets being the employees. Resource represents the hard aspects such as the strategy link of HRM and the importance of efficient utilization of employees. Management represents the role of HRM as part of management that implies that its not only an administrative function that carries out the formulated policies but also a managerial function that contributes to strategy formulation.

Human resource management(HRM, or simplyHR) is themanagementof anorganization'sworkforce, orhuman resources. In circumstances where employees desire and are legally authorized to hold acollective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually alabour union).

Difference between personal and hrm

DIMENSIONPERSONAL MANAGEMENTHRMAPPROACHTRADITIONALMODERNFOCUS ONPERSONAL ADMINISTRATION,EMPLOYEE WELFARE &LABOR RELATIONACQUISTION,DEVELOPMENT,MOTIVATION&MAINTAINANCE OF HRASSUMPTIONPEOPLE AS INPUT VALUABLE RESOURCEJOB DESIGNDIVISION OF LABOURTEAM WORKTRAINING &DEVELOPMENTLESSMOREDECISION MAKINGTOP MANAGEMENTMADE COLLECTIVELYEMPHASIS ONINCREASED PRODUCTION & SATISFIED EMPLOYEESEFFECTIVENESS,CULTURE,PRODUCTIVITY& EMPLOYEE PARTIFICATIONCONCERNED WITHPERSONAL MANAGERALL LEVEL OF MANAGERSFUNCTIONROUTINESTRATEGIC

Evolution & Growth of Personal Management

FIRST WORLD WARThe First World War accelerated change in the development of personnel management, with women being recruited in large numbers to fill the gaps left by men going to fight, which in turn meant reaching agreement with trade unions (often after bitter disputes) about dilution accepting unskilled women into craftsmens jobs and changing manning levels.

1920SDuring the 1920s, jobs with the titles of labor manager or employment manager came into being in the engineering industry and other industries where there were large factories, to handle absence, recruitment, dismissal and queries over bonuses and so on. Employers federations, particularly in engineering and shipbuilding, negotiated national pay rates with the unions, but there were local and district variations and there was plenty of scope for disputes.

1930SDuring the 1930s, with the economy beginning to pick up, big corporations in these newer sectors saw value in improving employee benefits as a way of recruiting, retaining and motivating employees. But older industries such as textiles, mining and shipbuilding which were hit by the worldwide recession did not adopt new techniques, seeing no need to do so because they had no difficulty in recruiting labor.

In 1920-30s emphasis is on welfare management and paternalistic concept Status is of clerical level Roles played are of welfare administrator and policeman

SECOND WORLD WARThe Second World War brought about welfare and personnel work on a full-time basis at all establishments producing war materials because an expanded Ministry of Labor and National Service insisted on it, just as the Government had insisted on welfare workers in munitions factories in the previous conflict. The government saw specialist personnel management as part of the drive for greater efficiency and the number of people in the personnel function grew substantially; there were around 5,300 in 1943.

By 1945, employment management and welfare work had become integrated under the broad term personnel management. Experience of the war had shown that output and productivity could be influenced by employment policies. The role of the personnel function in wartime had been largely that of implementing the rules demanded by large-scale, state-governed production, and thus the image of an emerging profession was very much a bureaucratic one.Following the development of poor industrial relations during the 1960s a Royal Commission under Lord Donovan was set up.

In 1940-60s emphasis on expanding the role to cover labour , welfare, industrial relation and personal administratorStatus is of administratorRoles played are of appraisal, advisor, mediator, legal advisor & firefighting In 1970-80s the focus was on efficiency , effectiveness of production. The emphasis was on human values, aspirators, dignity and usefulness Status was developmental Roles played by personal manager was of integrator, trainer and educator

1990 onwards emphasis was on incremental productivity gain through humanizer Status is proactive and growth oriented Roles played is of developer ,councillor ,coach, mentor, philosopher, facilitator and problem solver

Evolution of Human Resource Management

Evolution of HRM:Industrial RevolutionTrade UnionismSocial responsibility eraScientific Management EraHuman Relations EraBehavioural Science EraSystem Approach EraContingency Approach Era

Industrial revolutionThe seed of HRM were sown during Industrial revolution 1850s in Western Europe and USA.The wind gradually reached to India in beginning of 20th century.During this period:-Machines were bought inTechnology made rapid progress Workers were treated like machine toolsEmployers were keen to meet production targets rather than satisfy workers.Govt. didi very little to protect the interests of workers.

Trade Unionism:- This was the period when state intervention to protect the workers 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 workers interest and to sort out their problems like Child labour, Long hours of work, Poor working conditions.The unions used strikes, lockouts etc as weapons for acceptance of their problems.

These activities of trade unions gave rise to personnel practices such as:-Collective bargainingGrievances redrassalArbritrationEmployee benefits programsInstallation of rational wage structures.

Social Responsibility era:-Robert Owen, a 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 practised the following:-Provision for reduced working hoursHousing facilitiesEducation of workers and their childrenHe admired for giving human treatment to workers.

Scientific Management era:-This concept was introduced by Fredrick.W.Taylor in USA early in 20th 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 and responsibility between management and workers.Harmonious relations and close cooperation with workers.His study focused physical characteristics of the human body as it responds to routine and clearly defined jobs.

He developed following techniques for the same:-Time studyMotion studyStandardization of tools, equipments and machinery and working conditions incentive wage plan with differential piece rate of wages.

Human Relations era:-This particular period focused on the feelings,attitude 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 organisation.

Between 1924 to 1932,Elton Mayo conducted a series of experiments at hawthorne plant of western electric company in USA. Main findings were:-Physical environment should be goodFavourable attitudes of workers and work team towards their workFulfillment of workers social and psychological needsWorkers can be motivated through job security, right to express their opinion on matters related to them.

Behavioural science era:-It was concerned with social and psychological aspects of human behaviour. Some of important elements were:-Individual behaviour is linked with group behaviourInformal leadership rather than formal leadershipMotivation by self control and self developmentImproving efficiency through Self operating

Systems approach era:Technical subsystem : formal relationships.Social subsystem : informal group relationsPower subsystem : exercise of power

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 analyse different situations and then use the best suitable in that particular situation.

Concepts Of HRM

Earlier known as personnel managementAdministration of humanRecruitment and selection,reward,grievance handling,retirement and so forthDeveloped in the bureaucratic set upOrganisation and administration of man power

HRM is a process in which human resources are recruited and mobalised in such a way that it helps in achieving the organisational objectives.Management of human energies and competencies. Right man,for the right position and at the right time in the changing environment.

Acquisition,development,motivation and maintenance of human resources.Acquisition: getting peopleDevelopment: preparing them for workMotivation: activating themMaintenance: keeping them retained in the organization.

Growth Of HRM

THE COMMODITY CONCEPTTHE FACTOR OF PRODUCTION CONCEPTTHE GOODWILL CONCEPTTHE PATERNALISTIC CONCEPTTHE HUMANITARIAN CONCEPTTHE HUMAN RESOURCE CONCEPTTHE EMERGING CONCEPT

The Commodity Concept

Human resource was referred as a commodityTo be bought and sold,Use and throw.Wages were decided on the basis of demand and supply forces,Or the time they worked for.Government did not care much about the work force.

The Factor of Production ConceptLabour is treated as any other factor of production, viz:money,material,land,etc Factors of production may also refer specifically to the primary factors, which are land, labour, and capital goods applied to production. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour and capital.

The Goodwill Concept

Welfare measures like safety, first aid, lunch room, rest room etc.These measures proved to be a source of boosting up the morale of workers,Thereby enhancing their performance.Focus on labour productivity.

The Paternalistic ConceptManagement must assume a fatherly and protective attitude towards employees.It does not mean merely providing benefits but it signifies to satisfy various needs of employees just as parents meet the requirements of children.

The Humanitarian ConceptTo improve the productivity,physical,social and psychological needs of workers must be fulfilled.Their viewpoints were heard respected.Money is less a factor in determining output, than group standards, incentives and securities.The organization is a social system that has both economic and social dimensions.

The Human Resource ConceptEmployees are the most valuable assets of an organization.Convey the organizational goals to the employeesThere should be a conscious effort to realize organizational goals by satisfying needs and aspirations of employees.

The Emerging ConceptEnhance the quality of work life.Achieve Profitability, productivity, innovation and excellence.

Significance of HRM Human resources are the valuable assets of the corporate bodies. they are their strength. to face the new challenges on the fronts of knowledge, technology and changing trends in global economy needs effective HRM.

Organizational significanceIt contributes to the achievement of organizational objectives.attracting and retaining the best people.Development of skills and attitude.Securing willing cooperation.Effective utilization of available human resources.A team of competent and dedicated employees.

Social significanceNeed satisfaction of personnel.Welfare of the society.Employment opportunities multiply.Conservation of physical and mental health.Scarce talents are put to best use.

Professional significanceProviding a healthy environment to employees.By meeting challenge of their job.Promoting team-work and team-spirit.Offering excellent growth opportunities.Incentives for developing and utilizing creativity.

Miscellaneous Recruitment and training.Performance appraisal.Managing disputes.Developing public relations.Future manpower needs.Coping with change.Uncertainty reduction.

Principles of Human Resource ManagementPrinciples are fundamental beliefs, generally constant and unchangeable. The principles of human resource management are touchstones which enable managers to exercise judgement in a variety of situation.

Principles of HRM is designed to:Provide an enabling set of standards to guide managers in making decisions about managing the people in their organisationsProvide a source for all corporate policies related to human resource managementProvide managers with a principles-based approach to managing people

Principles of HRMMeritFairnessDiversityEquityReasonablenessTransparencyNatural JusticePublic Interest

MeritThe principle of merit means that decisions about appointments and pay are based on an unbiased assessment of ones competencies.

Example : Knowledge, Skills and abilities

FairnessFairness refers to conduct that is unbiased, just and honest.It means treating employees consistently. The principle of fairness, enshrined in The Labour Relations Act, 1998, is fundamental to employees relations.

DiversityDiversity recognises that people have characteristics that make then distinct from others, including:

*Age *Language *Culture *Ethnicity *Skills *Gender *Abilities *Talents *Perspectives

EquityMeans applying the principles of justice to correct or supplement employment practices to redress disadvantages experienced by individuals in the workplace

ReasonablenessMeans conduct which is sensible, in moderation and based on sound judgementThe principle of reasonableness is a key concept in The Labour Relations Act, 1998

TransparencyRefers to policies that are clear, frank and accessibleAlso refers to conduct being free from pretence or deceit

Natural JusticeNatural justice means that all administrative procedures are fair and are perceived to be fair because due process has been followedThe rules of natural justice are the minimum standards of fair decision-makingimposed on persons or bodies acting in a judicial capacity

Public InterestPublic Interest is served when all actions and decisions of public officials and managers are based on merit, fairness and reasonable consideration of the publics need for service, efficiency, effectiveness, representation and access to information and opportunities.

This principle is fundamental to The Civil Service Act.

What are polices?A course or principle of action adopted or proposed by an organization or individualMain components of an HR policiesEqual Employment Opportunity policiesEmployee classificationsWorkdays, paydays, and pay advancesOvertime compensationMeal periods and break periodsPayroll deductionsVacation policiesHolidaysSick days and personal leavePerformance evaluations and salary increasesPerformance improvementTermination policies

ADVANTAGES OF HUMAN RESOURCE POLICIESCommunication with employeesCommunication with managers and supervisorsTime SavingsCurbing litigation

PracticesBamboo Wacom

78 percent of HR professionals surveyed HRIS users noting that they use their system to generate reports of strategic and demographic employee data68 percent of surveyed payroll management HRIS users reporting that their system is used to process payroll in their businessesHRIS

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