Nature of HRM: Functional/ Transformational

Issues that this topic discusses are:

• Some general terms in managing people in orgs.
Nature of
Human Resource Management • HR in the organizational process

• Traditionally, two components of HRM: PM & IR

--Emergence of a new meaning of HRM: session 2
Professor Debi S. Saini
(debisaini@mdi.ac.in)
Management Development Institute, Gurgaon • HR’s roles and duties in the organizational functioning

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• Stages of development of HRM: General & in India 2

General
What is meant by an organization?

Social arrangements

People in where a number of people

Organization Process with highly individualized background

make available their skills and interests

to pursue institutionalized goals

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 Importance of Corporate/other Orgs.
• Org. is 20th centurygreatest accomplishment
• Organizations’ central role in people’s lives
• Orgs. as epitome of socio-economic values
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Effective & efficient utilization
Efficient use means:
• Using minimum resources
• And producing more output
Effective use means:
• Producing right goods & services
• that customers want
(e.g. providing economic & reliable car)
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HR and HRM
Personnel/HR means: People in organizations
Personnel Mgt.: Mgt of personnel function
Simply speaking, What is meant by HRM?
• Managing systems and processes
• which facilitate
• efficient & effective utilization of people
• in achieving org.’s goals/strategy/plans 6
Three Types of Authority in Management
What is meant by line authority?
• Authority of those managers directly responsible
• in the organization's chain of command
• for achieving organizational goals
What is meant by staff authority/function?
• The authority of those groups of individuals
• who provide line managers
• with advice and services 8
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3 Types of Authority in Management contd…
What is meant by functional authority?

• The authority of staff department members

Nature of
• to control the activities of other deptts. HRM
• related to their specific functional responsibilities

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Personnel Management (PM)

PM refers to that field of management
HR Planning
that relates to: planning, organizing, directing, controlling Managing
Careers & Recruitment &
Succession Selection
the procurement, development, reward, appraisal,

Integration, maintenance, and utilization [IR=Regulation] Managing

Human Resource Learning &
Employee
Management Development
of a workforce relations

for attaining organizational goals.

Compensation Managing
Mgt. Performance
PM/HRM: two aspects: 1. Mgrl./Directive 2. Operative
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Larger Connotation has two focus areas: PM & IR Human Resource System: As Traditionally Seen

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 Personnel/HR’s Duties in Organizing Personnel/HR’s Duties in Organizing contd…
.
1. Devising & organizing main HR Systems 4. Promotion of Communication
––Selection––Trng./Development––PA––Reward ––Newsletters ––Circulars ––Meetings

2. Organizing employee well-being 5. Facilitation of organizational Change

––Health/safety––Welfare––QWL
6. Industrial Relations Functions
––Discipline––Grievances
––Disputes Resolution
3. Helping promote employee commitment: ––Collective Bargaining
––Motivation––Participation/EI––Culture building ––Managing separation: Dismissal/discharge/retrenchment
13 ––Labour law enforcement 14

Emergence of Human Resource Management

Simply speaking, HRM involves:

• Effective use of people

• to realize organizational goals

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Key HR challenges and Roles (Ulrich, 1997)
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 Features of HRM
• Four key roles of HR globally accepted

• Concerns: Behavioural/Control/Emotions of Indiv. & Groups

Locating
• Involves HRD : Skills/Competencies/Potentiality/development
HR’s Place in
• Covers all levels of employees in the Org. Organizational Process
• HRM is a continuous function

• Not just responsibility of HR Deptt. —but a line concern

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Organizational Process: CEO & Functional Areas
Organizations have CEO: as a person at the wheel
• He gives direction: Goals/Strategy/Policies/change direction
• Shapes: Orgl. objectives/strategies/plans/policies
Orgl. Process: CEO & Functional Areas contd…
Managing involves 3 major sets of activitoes:
• Strategists : Decide goals, strategies, policies

What does strategy involve? • Operations Managers: They are line managers
• Involves a mission & vision to shape future and realize goals

• Collecting data, collating resources, programming the vision • Staff Mgrs : Functional specialists––Advice/Service

What are policies? HR specialists play key in the organizing process

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• Statements that guide as to how org’s plans/goals are to be realized

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Orgl. Process: How does HR Helps this Process contd…
How Does HR help the CEO & the top mgt.?

• Building & implementing people-mgt. policy/strategy

so as to acquire, develop, retain, remunerate people in a way so that

they have competence & are engaged to help realize org’s strategy

• CEO as chief HR strategist: Different CEOs look at HR role differently:

--Case Examples: Flaxo to Classic strips to GE

21 Traditional line and staff conflicts frequently involve HR & Ope rating Managers:
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HR and some other departments are seen as P&A

Bur Often, HR Professionals Seen Thinking Indifferently

I’m glad the hole

HR People isn’t in our end . . .

Line People Stages in

Development of
HRM

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The New HRM is expected to build cooperative relations

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 Evolution of HR Roles Over the Years Evolution of HR Roles Over the Years contd..
1. Social reformer: 4. Consensus Negotiator
––Indl. Revolution/exploitation; PM enforced law ––After world war II: full employment in Western world:
––Led to rise of trade unions, pluralism, CB, WPM

2. Acolyte (Follower) of Benevolence 5. Organization Man

Welfare officers appointed by enlightened employers:
Sick pay––subsidized housing––unemployment benefit In 1960s: integration of mgrl. activity––OD and mgt. dev.

6. Manpower Analysts
3. Human Bureaucrat
––Taylor’s machine man (Sc. method, selection, trng., reward) ––In 1970s: attempt to quantify people-related decisions
––Human Relations School ( Mayo, 1933) lead to human bureaucracy ––HRIS, HR Audit, HR A/cing––HR Planning––Computers
Challenged sc. mgt.: PM developed to humanize work 25 26

Evolution of HR Roles Over the Years

contd… Evolution of HRM Discipline
7. HR management in 1980s (two approaches):
Strategic HRM & Talent Management
I. Resource centredness: people are like other resources (hard HRM)
––Focus: planning, monitoring, control; right no. at right place
Human Resources Management

––Contribution to strategic objectives

Personnel Mgt. & Indl. relations

II. People concern (soft HRM): People are resourceful humans Employee Welfare

––Trust––Diversity––Commitment––Empowerment––Culture

Time Keeping
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 HR Function in India: Evolution
• PM launched by pragmatic capitalists (1920’s & 30’s)
––Welfare/paternalism––Clerical role ––In India Tatas did it

• Welfare officer
HR Function ––Whitley Commission (1931) recommendations
in India ––Sec. 49 of the Factories Act talks of Welfare Officer

• Struggle for recognition: (1940s to 1960s)

––Rise of unionism––labour laws––interpretation of courts
––Persl. mgrs. viewed as children of IDA: Tackling IDA dynamics
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HR Function in India: Evolution contd… What did we Try to Learn in this session
• Three types of authorities in organizations
• Sophistication in attitude (1970s & 1980s)
––Professionalism began, though still legalistic attitude
• HR specialists deal with people-mgt. issues
––Imposition of standards on other functions

• There are 4 transactional functions of HR

--But more if we treat IR as part of HR
• Promising and philosophical (1980s & 1990s)
––HRD/HRM philosophy a catchword –– HRD Network • Emergence of new roles of HR: Ulrich’s HR role typologies
––Emphasis on human values (soft) & technology (hard)

––Focus on development, commitment and productivity respectively • In actuality, CEO is chief HR strategist: Values, leadership

• Covert de-unionization policies & empowerment (since 1991) • HR supports strategy implementation
––Exit policy––privatization––productivity––HRD––Culture-building––Talent mgt.
31 • HR has emerged through stages of evolution 32

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Thank you
for your
Kind
Attention!

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