Human Resource Management

Presentation Outlines
1. 2. 3. 4. Meaning & definition of HRM The development of HRM concept Personnel management Vs HRM HRM functions

Meaning & Definition of HRM

Meaning of HRM
HRM is concerned with the management of human energy and competencies. It aims at achieving organizational objectives through the productive contribution of people. Competencies consist of Knowledge, skills, attitude and potentials. Knowledge: (What the employee needs to know. Knowledge can be professional, technical or commercial)

Contd
Skills: (Ability of the employee. It can be intellectual, mental, perceptual, social)

Attitude :( disposition of employee to perform job)

Potentials :( Capabilities to face challenges)

Definition of HRM
Human resource management is comprised of the acquisition, development, motivation and maintenance function
-DeCenzo and Robbins

The development of HRM concept

Early scientific management era Rowntree and Cadbury business houses began appointment of welfare officer in the 18th century. They also made provision for unemployment benefit, sick pay and subsidies housing for employees.

Contd
Industrial revolution started from the late 18th century. Labors were treated as commodities. The main feature of industrial revolution was advent of machine power, mass production and efficient transportation. At the end stage of industrial revolution emphasis was given to administer the personnel matters such as recruitment of qualified labor, welfare management and enough compensation scheme to support mass production.

Scientific Management Era

F.W Taylor invented principles of scientific management in the 19th century. He suggested to plan work and gave methods to maximize productivity and minimize inefficiencies. That was the earliest effort in the development of personnel management. Time & Motion study Scientific selection of labors Financial incentives

Human Relations Movement

Elton Mayo studies the causes of low productivity. The Hawthrone studies (19271932) laid the foundation for the human relations movement . Informal relationship at work place, Value to the workers Importance of relations between individual sentiment towards working environment.

Contd
During 1935-60 a labor relations movement in the form of presence of labor union and collective bargaining practice emerged. The HRM era began in 1950s. Peter Drucker had suggested how an effective management contributes to direct all managers towards a common goal.

Human Capital Concept (T. Schulz)

Theodore Schulz invented human capital theory and cited examples of how qualified and committed human resources contributed in the post war economy of Germany and Japan.

Concept of corporate culture

Concept of corporate culture(values, belief, attitudes and behavior held by its members) The book The art of Japanese management written by Pascale and Athos in 1981 stated the shared values of management and workers are the secrete of Japanese management.

The New HRM Era

US industries were challenged by inside and outside competition 1970s. Mainly due to adverse union-management relations, lower employee motivation etc. It challenged the traditional American personnel management. The new HRM practices developed in the 1980. It arrived in UK around 1985-1986

Personnel Mgmt Vs. HRM

The personnel mgmt was used from the early 19th century. During 1900 and 1935 personnel mgmt and industrial relations were just professional functions. At the time of WWI labor shortage increased. To retain employees, personnel mgmt and industrial department emerged as a strong professional service department.

Contd
Again, at the time of great depression, demand of goods declined and that created problem of labor cut, increased unemployment and declining working condition in factory. To encounter with these problems, between 1935 and 1960, personnel mgmt enjoyed dominant position in various organizations.

Contd
In 1989, the American society for personnel Administration(ASPA) voted to change its name to the society for Human Resource Management(SHRM).

Personnel Mgmt Vs. HRM

Deals with employees, their pay roll and employment law Focuses on personnel mgmt. skills Reactive Administers people or employees Independent from an Deals with mgmt of work force and contributes to organizational success. Focuses on team work Proactive Build dynamic culture An integral part of a

Regards investments in Regards investment in people as a variable cost. people is a social capital capable of development. Aims at non managers- More concerned with specialists and the managers specifically professionals- to increase developing the the skills of employee. management team In a unionized The concern of HRM is organization, mainly employees commitment. concerned with participation are negotiating and emphasized collective agreement.

HRM Functions
A) Staffing function(hiring qualified employees): i) Strategic HR planning ii) Recruiting iii) Selection B) Training and development i) Orientation ii)Employee training iii) Employee development iv)Career development

HRM Functions
C) Motivation: i) Performance appraisal ii) Reward and compensation iii) Employee benefit
D) Maintenance i) Safety and health ii) Communication iii) Employee relations

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