Evolution of human resource management

Evolution:

Evolution is defined as “Slow process of change from one level to a better or

higher one, or that brings into being a superior”.

Resource:

Resource is defined as “Economic or productive factor required to accomplish an

activity or as means to undertake an enterprise and achieve desired outcome”.
Three most basic resources are,
1) Land
2) labor and
3) Capital.

Human Resource:

Human Resource is defined as “Scarcest and most crucial productive resource that
creates the largest and longest lasting advantage for an organization”.

Human Resource Management:

The terms "human resource management" and "human resources" (HR) have
largely replaced the term "personnel management" as a description of the processes
involved in managing people in organizations. In simple sense, HRM means employing
people, developing their resources, utilizing, maintaining and compensating their services
in tune with the job and organizational requirement.

Definition:

“HRM is a distinctive approach to employment management which seeks to

achieve competitive advantage through the strategic deployment of a highly committed
and capable workforce, using an array of cultural, structural and personnel techniques”

Since the mid-1980’s Human Resource management (HRM) has gained

acceptance in both academic and commercial circles.

Evolution of HRM:
 The founder of Sony corporation Mr. Akio morita says that there is no magic in
the success of companies the secret of their success is simply “the way that treat their
employees”

Difference between HRM and PM:

Personnel Management and HRM differ in scope.

o PM is viewed as a tool. It was a routine activity meant to hire new

employees and to maintain personal records. It was never considered as a
strategic management of business.
o HRM would view people as an important source or asset to be used for the
benefit of the organization, employees and society.

Managerial Functions of HRM:

Planning:

Determination in advance of a personal program that will contribute to goals

established for the enterprise EVOLUTION.

Organizing:

This is required to carry out the plans. Designing the structure of relationships
among jobs, personnel and physical factors.

Directing:

Before the action is started “direction “ is necessary; this may be in the form of
“motivation “ “ actuation “ or “ command “.This is to get people to work willingly and
effectively.

Controlling:

Observation of action and its comparison with plans and correction of any
deviation that may occur at any time.

Operative Functions of HRM

Procurement:

Obtaining proper kind and number of personnel necessary to accomplish

organizational goals.

Development:

Increasing the skill through training that is necessary for proper EVOLUTION job
performance.

Compensation:

Adequate and equitable remuneration of personnel for their contribution to

organization objectives.

Integration:

It is concerned with a reasonable reconciliation of individual, societal and

organizational interests.

Maintenance:

Maintenance is concerned with the continuation of this state, this is heavily

effected by communication with employees.

Separation:

Separations and return of that person to society. Could be retirement, lay off, out-
placements and discharge.

The human resource cycle of HRM:

Michigan School explained the human resource cycle that consists of four
functions. They are,

Selection:

Matching available human resources to jobs.

Appraisal:

Performance management.

Rewards:
 It must reward short as well as long-term achievements.

Development:

Developing high quality employees.

Rewards

Selection Performance Performance

Management

For figure refer biswajeet book page 4.

Human resource wheels of HRM:

Refer Biswajeet book page 4

Relevance of HRM:

Refer Biswajeet book page 8

Challenges faced by HRM:

Refer Biswajeet book page 9

Conclusion of HRM:

Organizations are now defined as : • The core competencies within the

organization EVOLUTION • The people within the organization • The organizational
culture or shared values and knowledge or learning. The HR systems needs to be retained
and constantly upgraded and changed: People will always need to be hired and trained
Process will always need to be created and upgraded Cultures will always need to be
established and transformed.