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UNIT-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 Psychology
Acc. 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 Technical and Paternalism Administrative


Recognition Legalistic

1970-1990 Introduction of Impersonal and Regulatory Management


Sophisticated Professional conformance
Techniques
1990-2000 Promising Philosophical Human values, Executive
Productivity
through people
After 2000 Bright Psychological Development of Top Level
potential
Definition 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 Employees are made for Rules and regulations are meant
rules and regulations for employees.
Nature Confined to procurement Also integrated with corporate
and training of personnel management.
Slow and downward Fast and both upward and
Communication
downward.
Slow Fast
Decisionmaking
Approach
Work People + work oriented
oriented
Job design
Division of labor Team work
Management’s role
Transactional Transformational
Level of trust

low 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
FUNCTIONS OF HRM

Managerial Function Operative Function

Planning Procurement

Organizing Development

Staffing
Compensation

Directing
Integration

Controlling
Maintenance
Scope of HRM
Nature of HRM

Employee Hiring
Prospects
of HRM

HRM Employee executive


implementation
Industrial
Relation

Employee Employee
Maintenance Motivation
Objectives of HRM

Personnel
Objective

Functional Objective

Organizational Objective

Social Objective
IMPORTANCE OF HRM

SOCIAL PROFESSIONAL SIGNIFICANCE


SIGNIFICANCE SIGNIFICANCE FOR INDIVIDUAL
ROLE OF HR MANAGER

PERSONNEL CLASSICAL MISCELLANEOUS


ROLE ROLE ROLE

WALFARE FIREFIGHTING
ROLE ROLE
HRM Model
Nature of HRM
HR Planning
Job analysis
Recruitment & selection
Placement
T&D
Remuneration
Motivation
Competent & Willing Organizational
Participative Management workforce Goals
Communication
Safety & Health
Welfare
Promotions
Industrial Relations
Trade Unionism
Dispute & their Settlement
Future of HRM
Comparison b/w HRM & HRD
Dimensions HRM HRD
 Status An independent function with An integrated system consisting
independent sub-function of interdependent sub-system
A service & reactive Function A proactive function
 Orientation

Seeks to improve the Seeks to develop the total


 Aims
efficiency of people & organization its culture
administration
 Incentives Salary & economic rewards Focus on challenges, creativity &
used
motivation
Only of HR Manager Of all the managers
 Responsibility

 Morale
Improved satisfaction & Morale Improved performance as the
Productivity
Relationship as the cause of improved cause of improved satisfaction
performance
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

Employment Officer Training Officer Wage & Salary Officer Welfare Officer

clerks clerks clerks clerks


H R Department in Functional
Organizational Structure
C.E.O.

H R Manager

Employment Officer Training Officer Wage & Salary Officer Welfare Officer

clerks clerks clerks clerks


H R Department in Line & Staff
Organizational Structure
C.E.O.

H R Manager

Employment Officer Training Officer Wage & Salary Officer Welfare Officer

clerks clerks clerks clerks

Line Function
Staff Function
H R Department in Divisionalised
Organizational Structure
C.E.O.

H R Manager

H R Officer H R Officer H R Officer H R Officer


(Northern Division) (Southern Division) (Eastern Division) (Western Division)

Employment Officer Training Officer Wage & Salary Officer Welfare Officer

clerks clerks clerks clerks


H R Department in Matrix
Organizational Structure
C.E.O.

G.M.

Engineering H. R. Finance Marketing


Department Department Department Department

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 Policy
Identify 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

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