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 workers 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- Factorys 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 1920-1940 1940-1970

DEVELOPMENT Beginning Struggling for Recognition Introduction of Sophisticated Techniques Promising

OUT-LOOK Legalistic Technical and Legalistic Impersonal and Professional Philosophical

FOCUS Statutory welfare Paternalism

STATUS Clerical Administrative

1970-1990

Regulatory conformance Human values, Productivity through people Development of potential

Management

1990-2000

Executive

After 2000

Bright

Psychological

Top Level

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
Philosophy

PERSONNEL MGT
Employees

HUMAN RESOURCE MGT

Rules

Nature

Communication

are made for rules and regulations Confined to procurement and training of personnel Slow and downward
Slow

Decision

making Approach
Job

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

Work

oriented

+ work oriented

design Managements role Level of trust

Division

of labor Transactional
low

Team

work Transformational
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
Planning Organizing Staffing Directing Controlling

Operative Function
Procurement Development Compensation Integration Maintenance

Scope of HRM
Nature of HRM

Employee Hiring Prospects of HRM

HRM
Industrial Relation

Employee executive implementation

Employee Maintenance

Employee Motivation

Objectives of HRM

Personnel Objective Functional Objective Organizational Objective

Social Objective

IMPORTANCE OF HRM
SOCIAL SIGNIFICANCE PROFESSIONAL SIGNIFICANCE SIGNIFICANCE FOR INDIVIDUAL

ROLE OF HR MANAGER

PERSONNEL ROLE

CLASSICAL ROLE

MISCELLANEOUS ROLE

WALFARE ROLE

FIREFIGHTING ROLE

HRM Model
Nature of HRM HR Planning

Job analysis
Recruitment & selection

Placement
T&D Remuneration Motivation Participative Management Communication Safety & Health Welfare Promotions Industrial Relations

Competent & Willing workforce

Organizational Goals

Trade Unionism
Dispute & their Settlement Future of HRM

Comparison b/w HRM & HRD

Dimensions

HRM
An

HRD
An

Status Orientation Aims

independent function with independent sub-function A service & reactive Function

Seeks

integrated system consisting of interdependent sub-system A proactive function

Seeks

Incentives used
Responsibility Morale Productivity Relationship

to improve the efficiency of people & administration Salary & economic rewards
Only

to develop the total organization its culture

Focus

of HR Manager

on challenges, creativity & motivation Of all the managers

Improved

satisfaction & Morale as the cause of improved performance

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

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 (Northern Division)

H R Officer (Southern Division)

H R Officer (Eastern Division)

H R Officer (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 Department Project A

H. R. Department

Finance Department

Marketing Department

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