Evolution of hrm

11 Dec 2013

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Evolution of hrm

  2. • Human resource management (HRM, or simply HR) is the management of an organization's workforce, or human resources. • It is responsible for the attraction, selection, training, assessment, and r ewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. • In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will also serve as the company's primary liaison with the employees' representatives (usually a labor union).
  3. • HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. • The function was initially dominated by transactional work such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion.
  4. EVOLUTION • The history of personnel management begins around the end of the 19th century, when welfare officers (sometimes called ‘welfare secretaries’) came into being. • They were women and concerned only with the protection of women and girls. • Their creation was a reaction to the harshness of industrial conditions, coupled with pressures arising from the extension of the franchise, the influence of trade unions and the labor movement, and the campaigning of enlightened employers, often Quakers, for what was called ‘industrial betterment’. • As the role grew there was some tension between the aim of moral protection of women and children and the needs for higher output.
  5. FIRST WORLD WAR • The 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 craftsmen’s jobs and changing manning levels.
  6. 1920’S • During 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.
  7. 1930’S • During 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.
  8. SECOND WORLD WAR • The 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.
  9. • 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.
  10. • Reporting in 19681, it was critical of both employers and unions; personnel managers were criticised for lacking negotiation skills and failing to plan industrial relations strategies. • At least in part, Donovan suggested, these deficiencies were a consequence of management’s failure to give personnel management sufficiently high priority.
  11. • In the 1960s and 70s employment started to develop significantly. • At the same time personnel techniques developed using theories from the social sciences about motivation and organisational behaviour; selection testing became more widely used, and management training expanded. • During the 1970s, specialisms started to develop, with reward and resourcing, for example, being addressed as separate issues. • Around the mid-80s, the term ‘human resource management’ arrived from the USA. • The term ‘human resources’ is an interesting one: it seemed to suggest that employees were an asset or resource-like machines, but at the same time HR also appeared to emphasise employee commitment and motivation.
  12. EVOLUTION OF INDUSTRIAL REVOLUTION (1) Industrial Revolution: a. Adam Smith: specialization and division of labor. b. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)
  13. 2) Scientific management Frederic Taylor: Father of scientific management a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. b. Steps: Job analysis—selection—training—rewards.
  14. (3) Industrial psychology a. Henry Fayol’s management functions: Planning, organizing, communicating, coordinating and controlling. b. F. & L. Gilbert's principles of work simplification (time and motion studies). c. Henry Gantt’s principles of work scheduling. d. Continuation of scientific management.
  15. (4) Human behavior and relations a. The Hawthorne Studies by Westing House The happy workers are the most productive workers. (The Pet Milk theory) b. Max Weber: the Ideal Bureaucracy. c. Chris Argyris: Individual and organization— mutual adjustment. d. Affected by the theories of behavioral science and system theory.
  16. 5. HRM in China (1) Administration: a. Ministry of Labor b. Ministry of Organization of the Central Committee. (2) Worker participation in China: a. Worker Innovation and Workers’ Congress. b. Stock sharing and voluntary grouping. (3) Trade Union and its functions. (4) Types of organizations and their HRM activities
  17. • Early labor: – No human resource management. • Onset of industry: – Manage factors of production. • Unions: – Industrial relations professional. • End of WWII: – Peacetime industry and prosperity. – Personnel administrator. • Civil Rights and Litigation: – Human resource manager / compliance • Global Business: – Strategic human resource management
  18. • • • • • 1990: Older Workers Benefit Protection Act. 1990: Americans with Disabilities Act (ADA). 1991: Revision of the Civil Rights Act. 1993: Family and Medical Leave Act (FMLA). 1994: Uniformed Services Employment and Reemployment Rights Act (USERRA). • 1996: Illegal Immigration Reform and Immigrant Responsibility Act.
  19. • Social Security Act of 1935. • Fair Labor Standards Act (FLSA): – Minimum wage - $.25/hour. – 40-hour workweek. – Overtime at time-and-one-half. – Standards for child labor.
  20. • October 1929: Stock market crash. • 1933: Stocks down 80 percent. – 25 percent unemployment. – Drought – farm migration. – Foreclosure and homelessness.
  21. • Human Resource Management Requirements • BUS 362 Survey of Human Resource Management • BUS 363 Labor and Employment Law • BUS 364 Organizational Staffing • BUS 412 Compensation and Benefits
  22. • Recognition that Human resources are critical. • A shift from position management to work and employees. • More innovation. • ong range effectiveness • Asset development and cost control.
  23. HRM in India • References about Personnel management in Artasastra which indicates job description of supervisor and performance linked pay foe gold smiths • Tradional craftsman goods shipped to Europe • Master servant relationship in 17th centuary
  24. Evolution… • 1828-Robert Owen father of co-operative movement wrote a book titled as “New view society”-Improving working conditions and work life of labourers • After 1850 British rulers institutionalized for running the government which leads to personnel management system • 1890 NMLokhande • 1911 F W Taylor • 1921-Hawthorn studies • 1931-Role of Royal commission of labour • Industrial revolution • Awakwning of labour • Government attitude towards labour
  25. • • • • • • • • • • 1941-First tripartite labour conference 1948-Factories Act Cultural and social changes Changes in social value of labour Changes in managerial value 1950-1969 III five year plans-Private and public sector projects 1970- Militancy in textile sector in Mumbai 1980-Productivity agreements 1990Personnel management and IR in public sector undertakings
  26. • After 1990 the emphasis is shifted to human values and productivity through people • Role of Public sector companies like BHEL, SAIL and SBI • 1995 Progressive efforts of in HR • 1997- Focused on product and customer • Leading to customer satisfaction, bench marking, Application TQM, core competence, empowerment and learning organisation
  27. • • • • • • Transition of HRLabour relatios Personnel management Human resources management Human capital management Strategic HRM