Chronological Growth of Per.

Mgt (i) Era of Industrial Revolution (ii) Era of Trade Unionism (iii) Era of Social Responsibility Feeling (iv) Scientific Management Era (v) Indl. Psychology Era (incl.Human Relations) (vi) The Behavioral Era (vii) Personnel Specialist Era (i) Era of Industrial Revolution Modern P.M evolved from number of significant inter-related developments prior to beginning of Industrial Revolution. Prior to IRE existed several distinct Employer-Employee Relationships. Termed as Slaver, Guild System Initial State of Guild System seeded Per. Mgt for well-knit groups (Masters, Traveling journeymen & Apprentices) System involved selection, Trg, development, rewarding, maintaining workers Wage Salary Admn & Collective Barging over wage & working conditions were in evidence. But Economic& Social changes Overtook Old Eco-Soc-Political System. Indl-Revolution used Mech. Energy/ Machines consequently start of factories with Larger workforce Productive power/ man increased Machine efficiency triggered further sub division of labor Led to specialization in One-Task than skills in No. of Jobs IRE Expanded Mass Production Mod. Indl Corporations Applied Science & Tech to all Facets of Work It affected Personnel Admn. System Profusely: Work Place home to Common Roof Production Methods-Manual skills to Machine skills Migration-Rural to Urban concentration Separation- of Owners &Managers, Employer-employee affected Mechanization- Women & child labor replaced Men Complexity of Prodn-Process & Adv-Tech : New class of employees commanding power in Coy. New Jobs suited white collars/ managerial groups replacing Blue collars /artisans Specialization- produced Specialists: Engineers/Lab-Relation Mgrs/Safety Engineers Ills of IRE: Small Dingy Factories Concentration of people & Machines Unhygienic & Unsatisfactory Working Conditions Working Hours: 11 hrs-Adult, 15 hrs-Child Government Non-interfering

Labor looked upon Commodity to be bought & sold Division of Work -Monotony & Boredom, no pride in jobs Rules-Strict Discipline Bondage- Live by clock or else fired IRE: Brought Heights of Business & Economy but materialism, monotony, discipline, boredom, job displacement, work interdependence, poor working conditions, average citizen/ labor exploitation (ii) Era of Trade Unionism Shortly after Advent of Factory System, collected, discussed common Probs. Initially Child Labor, Long work Hours Later, Economic, Employee Benefits, Poor Working Conditions Workers Joined commonly to Improve Their Lot Underlying philosophy- Force Mgt to listen & redress their Grievances Weapon-Strikes, Slowdowns, Walkouts, Picketing, Boycotts, Sabotage Influenced-Personnel Management in areas: Adopting Grievance Handling System, Accept Arbitration as a means of Resolving Conflicts & Rights, Disciplinary Practices, Employee Benefit Prog, Liberalize Holiday & Vacation Time, Clear Definition of Job Duties/ Job Rights through Seniority, Installing Rational, and Defensible Wage structures Managements Created: Organizational Units to deal Union-Representative Relationships Sponsoring Unions as a means to controlling their Activities Facilities, consequent to wage hike issues, to Study jobs, Improving methods, Connecting wage to performance, Careful selection of personnel (iii) Social Responsibility Feeling Era In the past, Employers were not very sympathetic towards employees Robert Owen (1913) A British Businessman, Reformer, Humanitarian, pioneered fatherly attitude towards the employees Robert Owen believed that: The Principal Socio-economic Environments influence Physical, Mental, Psychological development of workers To enhance productivity improve Environment by providing more of Satisfactory Living/Working Conditions Devote More attention to Vital Machine (workers) than to Inanimate Machine Owen Implemented Philosophy By: Building Model Villages next his Mills. Factory- unheard facilities: Windows, Ventilations, Shower Bath, & Clean Toilets Schools- Day (children), Night (workers) Child Labor- Min. Age Raised to 11yrs, later abolished Treated Workers- as own children who must be cautiously guided, trained, & protected Other humanitarians supported views, like:

If each one work for his own economic self-interest, Society will gain- Adam Smith Emphasis on Mutuality of Interests between Employer-Employee and on Division of Labor to enhance productivity on use of resources;- Charles Babbage Hard work high productivity were source of good wages and higher profits for employers concept of Charles Babbage denounced by Unionisation (iv) Scientific Management Era Movement Began in 1900, Peaked in1930, Dwindled in Relative Importance, Remained Alive to Present Times Owes to Frederick W.Taylor (1856-1955)- Father of Scientific Management He started Experiments in Steel industry (Midvale & Bethelem Plants) Taylor Developed Four Principles of Mgt: The Development of a True Science for each job Scientific selection of: Right Person for Right Job Train a Person to Perform Job in a Scientific Manner Friendly Cooperation Between MGT & MEN. Taylor Believed that: Planning be the Result of Mgt-Worker Cooperation, incentive provisions be made to compensate workers Financially Worker were untapped-energy source to be utilized if trained and treated fairly Anticipated the Modern Suggestion System & Recommended Cash Bonuses for Developed Suggestions from workers ideas By Scientific Measurement of Work most of sources of Mgt-Workers conflicts disappear Time study, method Study Job classifications, Standardization of Tools, Differential piece-rate System etc. Scientific Management Has: Had great influence on Management and Employee- Employer Relationships Elevated MGT. by Plan, System, Design but declined Mgt. by Hunch/ Intuition Professioalised Management Taylors Approach Improved / Led to: Management Methods, Procedures & Supervision Strengthened Production & Supervision Labor-Mgt. Consensus on Mutual Benefits of Productivity - More Profit for Mgt, more Money & Better lives to Workers Separate Discipline called Human Engg It Studies, People At Work and Of Work Methods Studies, Equipment Design, Pacing of Work, Hours of Work, Environment of Conditions of Work. Purpose: To Improve PRODUCTIVITY & JOB SATISFACTION Taylors Approach After 30 Years Popularity As it led to know that Mgt. Problems were result of Human & not Mech. Factors

Taylors Approach Stressed: Need for Techniques that ensure higher performance at work & Eliminate unnecessary movements gave greater importance to Technology than Men at work. Fragmentation of operation/ Mechanistic conception at work led to Alienation, Frustration, Conflicts, and loss of Production This experience invited New Thinkers Douglas McGregor in U.S.A and Eric Trist in U.K They pointed out Best Results were obtained when Human Beings were treated in Totality of their Physical & Psychological Characteristics Henry Gantt, Frank & Lillian Gilbreth Modified Taylors views: Gantt propounded Task & Bonus System- worker paid Hourly Guaranteed Rate + 20% on touching Std-Output + High Pc-Rate for crossing Std-Output Frank Gilbreth extensively used Motion Picture of Task done analyzing Body movements, led to Popular Laws of Efficient Motions Lillian Gilbreth produced First time book Psychology of Mgt- application of Psychology to the Principles of Scientific management (v) Indl. Psychology & HR Era Psychologists Entered for Systematic Study of Personnel Problems Father of Indl. Psychology Hugo Munsterberg His Book Psychology & Indl. Efficiency Owes Development of Indl. Psychology His Notable Contributions -Analyzing Jobs in terms of Mental & Emotional Requirements and Development of Testing Devises Advances witnessed in Areas of Selection, Placement, Testing, Trg. & Research Practices Indl. Psychology Introduced & Emphasized: Matching Employees to Jobs Diff Jobs need Diff Skill & Abilities Use of Personnel Testing, Interviewing, Attitude Measurement, Learning Theory, Trg., Failure & Monotony study, Safety, Job Analysis and Human Engg. But Major Applications Areas Recruitment, Testing for Employment, Job replacement, Promotion & Trg Human Relation Movement Outcome of Reaction Against Impersonality of Scientific Management Human Resources M.Imptt. Valuable Assets without which other Resources are useless- Top Mgt. Personnel. Elton Mayo, Roethlisberger, Dickson Conducted Experiments at Hawthorne Works, Western Electric, Chicago (Late1920s- Early 1930).

Hawthorne Findings: Human & Social Factors (Not Physical Variables) Accounted For Productivity Phenomenon Special Aspect of Work-performance is to understand Needs of Mgt & Workers Impersonal Relationships (worker- supervisor) be fostered to Realize fullest potential of Individuals & groups As a Result of this Experiment: Employee Productivity Began to be Analyzed in terms of Team Works, Participation, Cohesiveness, Loyalty & Esprit De Corpse Instead of Engg. Terms Triggered ENTRY of Several Concepts (Social system, Informal organisation, Group control of behavior, Equilibrium etc) into fields of Personnel Mgt and Human Relations Scientific management treated origination as Tech-Economic System while HR Movement viewed it as Social System (vi) The Behavioral Era Era is an Outgrowth of Human Relations Studies (Began Around 1955; Major Impact Lasted 10-15 yrs) Behavioral Sciences include Sociology, Social Psychology, Psychology Mathematical Biology, Medicine & Psychiatry Anthropology, Economics, History, Philosophy Research in these Areas catered subject matter for Personnel management Behavioral Scientists are Concerned with the: *Impact of Methods of Pay and Individual Performance And Effect of Diff. Leadership Style & Philosophy on total Org-Performance *Job-design its Relationship to Personality Growth; Impact of Diff. Appraisal Systems, Group Influences and Organization Communications on Productivity & Change Research Data generated used for Theory Building. Three Popular Theories 1. Theories of Motivation Maslows Hierarchy of Need -Higher needs cannot be satisfied unless Lowers Are. Herzbergs Two-factor Theory: Hygiene / Maintenance Needs (money, job, supervision, Working conditions) and Motivators (achievement, responsibility, advancement, recognition)

2. McGregor formulated Two-Management Beliefs or Views (Theory X& Theory Y). Theory X (Traditional beliefs , Hard Approach) strict supervision, coercion and threat breed restriction of output Theory Y ( Modern, democratic beliefs ,Soft Approach) 3. Rensis Likerts Two Basic Systems of Organizations System I (based on Theory XAssumption) and System IV (based on Theory Y Assumption) is based on This is Also Known as Human Relation ApproachTries to Understand Human Behavior At Work Utilize/ Modify Behavior to Achieve Org-Objective/ Employee Aspiration H R-Approach Led to Development of Sound Mgt. Practices:2-Way Communication Employee Participation in Decision-Making, Individual Goal Setting (MBO) Informal Organizations Treating Work Place a Social System Management Development Management of change (vii) Personnel Specialist Era With introduction of Factory system, 1000 of employees under one roof were to be controlled to realize Org-Goals Administrative office recruited Clerks/Manual Employees responsible to hire workers Later concerned with the Recruitment, Selection, & Placement Organization size grew: Functions allotted to Full Time Manager Separate Personnel Executives installed to develop - Systematic Methods, Job Discipline, Job Description & Specifications Further Duties enlarged to cover Employees Befits & Services Arrangements added to train existing employees Training Manager appointed. Ultimately Many Specialists introduced: Safety Experts, Physicians, Behavior Researchers, Labor relation Specialist & others For Administrative & Org-Effectiveness- All merged into a single function Personal Manager or Welfare Officer Subsequently adding: Organizational Planning, & Manpower Planning, Manpower Selection, other significant problems of Mgt of Managers, Mgt of Talent power. Change Emerged: High Talent Personnel were the key Human Resources Personnel management -TURNED into Present Day Structure

Emphasis Now is on MANAGEMENT OF HUMAN RESOURCES The Present day Personnel management: Entrusted with 3-Chief Responsibilities 1. To Assist Line Managers in Manning the Organization & Help & Maintain Force at Optimum level, through: Recruitment, Induction, Placement Wage & salary Admn Trg. Key non-Mgt Personnel Admn. Of Benefits & Allied Services Dev. Of Employees Communication Programs 2.To Provide Task Force to MGT. in the Areas of: Union-Mgt. Relations Mgt. of Staff Development Functions Trg. Key non-Mgt Personnel Development of Grievance procedure Development of Personnel Policies & Procedures 3.To Control Employee Services Functions Housing, Transport Promotion of and Recreational facilities Financial Aid to Employees Educational Activities Conclusively Personnel Management Entrusted with Multiple Personnel Jobs Social, Economic, Political, Technological & Cultural Factors Influenced Nature & Scope of Personnel Administration History of Per. Mgt is Evolutionary and Not Revolutionary Changes Occurred were caused by Gradual Cultural & not By Drastic Events HRM Evolution-India Indian experts account growth since 1920 This period related to post I-World War difficult conditions that called for State intervention & Trade Unions. The Royal Commission (1931)- recommended to appoint of Lab-Welfare-Officer for selection of workers & settling grievances The Factories Act, 1948- compulsory Welfare officer (workers 500 & 500+) In course of time: Two Professional Bodies set up. IIPM ( Kolkota ) & NILM (Mumbai), premier Traditional Industrial Centers. Post II- World War & Indian independence- witnessed increased Awareness & Expectations of workers

During 1960s Personnel Function began expanding beyond Labor welfare Labor welfare, IR& Per-Administration merged into emerging profession - Per. Management (PM) Shift in focus towards Professionalisation of MGT.-Massive thrust to heavy industry (IIFive Year Plan) & accelerated growth of public sector in Indian economy 1970s-Shift in Professional Values - Focus from welfare to focus on Efficiency 1980s-New Technologies, HRM challenges, HRD- Talk of Professionals 1980s-IIPM and NILM merged, birth of National Institute of Personnel Management (NIPM)1990- ASPM (USA) change to Society for Human Resource Management 1990s-Emphasis Shift to Human values & productivity through people

HUMAN RESOURCE MANAGEMENT Definition Meaning (Semantic) Scope of HRM Objectives & Functions HRM term: Relates to-People aspect in Mgt Imply Philosophy, Policies, and Procedures & Practices relating to management of people inside organisation. Getting peoples services, developing & stimulating them to higher performance for their commitment to the Org- objectives. Acquiring, developing, stimulating and maintaining outstanding work force will contribute to Org-Effectiveness to sustain survival. Human resource creates organizations and helps them survive & prosper. Definition & Meaning HRM is a Management function that helps managers Recruit, Select, Train & Develop the members of the organization. 5-Essential Core Points The definition must embrace 5-core points 1. Organizations Are People who staff & Manage Organization 2. Functions & Principles are applied to Acquisitioning, developing, Maintaining & remunerating employees 3. Employees Related decisions be integrated / consistent with all HR-decisions 4. Decisions to influence Org-Effectiveness. Effectiveness must cater to high Quality Products/Services at reasonable Price to customer 5. HRM functions confined to all Types of Organizations

Definitions HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organizational objectives. This is true regardless of organisation-government, business, education, health, recreational, or social action - David, A.D & Stephen, P.R HRM is planning, organizing, directing, and control of the procurement, development, compensation, integration, and separation of human resources to the end that individual, organizational, and social objectives are accomplished. - Flippo, E.B. Therefore HRM refers to a set of Programs, Functions, and Activities designed and carried out in order to maximize both Employee and Organizational Effectiveness.

HRM Semantic Meaning: Alike other discipline, HRM also face semantic problem Two terms personnel management (PM) and HRM These, basically differ in Scope & Orientation HRM views people Importt assets for benefit of Orgn-employees-society HRM emerging as distinct Mgt-Philosophy Promoting Policies on Mutuality- (goals, respect, reward, responsibilities) Mutuality- elicit commitment then to better eco-performance & HRD HRM integrated to Strategic Mgt. of business. HRM latest term in evolution PM- limited Scope & inverted Orientation Labor is as tool, manipulate & replace the worn-out. Per. Deptt was not respected and did have not-very-productive employees historically Per. Function was used to do routine hiring new employees & maintaining records PM was never considered part of Strategic Mgt. of business DIFFERENCE BETWEEN HRM & PM: PLEASE REFER SHEET HRD, PM, & Indl.Relations HRD- Trg., Development, career panning & development and O.D-Part of HRM Indl.Relations- Employees grievances, Settlement, Unionisation, PM, and Indl.Relations are all PART of HRM

Scope of HRM The Scope is vast. All activities in the working life of a worker- from the time of his/ her entry till he/she leaves-come under the purview of HRM. HR planning, Job Analysis & Design, Recruitment & Selection, Training & Development, Performance Appraisal, Job Evaluation, Employee & Executive Remuneration, Motivation & Communication, Welfare, Safety, Health, Indl. Relations