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SCIENTIFIC MANAGEMENT

Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth



INDUSTRIAL/ORGL PSYCHOLOGY
Munsterberg, Scott, Cattell

HUMAN RELATIONS MOVEMENT
Hawthorne Studies, Mayo, Follett, Lewin

GROWTH OF GOVERNMENTAL REGULATIONS
Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT
Professional HR Societies & HRCI (Certification Institute)

Management
the process of coordinating work activities so
that they are completed efficiently and
effectively with and through other people
elements of definition
Process - represents ongoing functions or primary
activities engaged in by managers
Coordinating - distinguishes a managerial
position from a non-managerial one

Management Strives For:
Low resource waste (high efficiency)
High goal attainment (high effectiveness)
Resource
Usage
Efficiency (Means)
Goal
Attainment
Effectiveness (Ends)
Low Waste High Attainment
Utilization of individuals to
achieve organizational objectives
All managers at every level must
concern themselves with human
resource management
Five functions

1
Human
Resource
Management
Safety and
Health
Human Resource Management Functions
Job analyses
Labor needs
Recruit
Select candidates
Orient and train
Wages and salaries
Incentives and
benefits

Performance
Communicate
Train and develop
Employee commitment
Equal opportunity
Health and safety
Grievances/labor
relations

EMPLOYMENT / STAFFING
RECRUITMENT
SELECTION
TRAINING AND DEVELOPMENT
APPRAISAL
EDUCATION AND DEVELOPMENT
COMPENSATION
SALARIES, WAGES AND BENEFITS
INCENTIVE PLANS
EMPLOYEE RELATIONS
GRIEVANCE RESOLUTION
UNION RELATIONS
HR PLANNING AND RESEARCH
FORECASTING
JOB ANALYSIS
ATTITUDE SURVEYS
VALIDATION STUDIES
Staffing - Process through which organization ensures it
always has proper number of employees with
appropriate skills in right jobs at right time to achieve
organizational objectives
Job analysis - Systematic process of determining skills,
duties, and knowledge required for performing jobs in
organization
Human resource planning - Systematic process of
matching the internal and external supply of people with
job openings anticipated in the organization over a
specified period of time .
Recruitment - Process of attracting individuals on a
timely basis, in sufficient numbers, and with appropriate
qualifications, to apply for jobs with an organization
Selection - Process of choosing from a group of applicants
the individual best suited for a particular position and the
organization


Training - Designed to provide learners with knowledge and
skills needed for their present jobs
Development - Involves learning that goes beyond today's job;
it has more long-term focus
Career development - Formal approach used by organization to
ensure that people with proper qualifications and experiences
are available when needed
Organization development - Planned process of improving
organization by developing its structures, systems, and
processes to improve effectiveness and achieving desired goals
Performance management - Goal-oriented process directed
toward ensuring organizational processes are in place to
maximize productivity of employees, teams, and ultimately, the
organization
Performance appraisal - Formal system of review and
evaluation of individual or team task performance


Direct Financial Compensation - Pay that
person receives in form of wages, salaries,
bonuses, and commissions.
Indirect Financial Compensation (Benefits) -
All financial rewards not included in direct
compensation such as paid vacations, sick
leave, holidays, and medical insurance.
Nonfinancial Compensation - Satisfaction that
person receives from job itself or from
psychological and/or physical environment in
which person works.
Employees who work in safe environment
and enjoy good health are more likely to be
productive and yield long-term benefits to
organization.

Safety - Involves protecting employees from
injuries caused by work-related accidents
Health - Refers to employees' freedom from
illness and their general physical and mental
well being
Private-sector union membership has fallen
from 39 percent in 1958 to 7.8 percent in 2005.
Business is required by law to recognize a union
and bargain with it in good faith if the firms
employees want the union to represent them
Is the function of HR to control workers, or to
help them and act as their advocate?
Resolving personnel grievances and
disagreements fairly in both union and union-
free environments
Impact on you as employees

Impact on you as managers

Potential future roles as HR professionals

Impact of HRM on organizations
HR Department
Organizational Chart
EMPHASIS ON STRATEGIC PLANNING &
SUCCESSION
VP of HR is a Strategic Manager, Management Succession Planning

EMPHASIS ON COST-RELATED ISSUES / COST
CONTROL
Global Competition, Outsourcing and Downsizing

NEW SPECIALTIES EMERGING IN HR
HR Planning, International HR, Employee Assistance Programs

GROWTH OF GOVERNMENTAL REGULATIONS
Wages (1930s), Unionization (1940s), Employment (1960s)

PROFESSIONALIZATION OF HR MANAGEMENT
Professional HR Societies & HRCI (Certification Institute)

THE INTERNET REVOLUTION
Electronic Recruiting, Records Management, and HRIS
System approach to Human Resource Management
(4 inter related factors)
Human resource approach people constitute a form of capital
and act as one of essential assets
Personnel climate personnel environment conducive for
development of Human Capital as long term investment capable
of yielding rich dividends
Human resource program to achieve the twin aims of
productivity and satisfaction
Human Resource System with relevant inputs , processing and
outputs
Five separate sub-systems are
Employment
Development
Utilization
Compensation
Maintenance


HR Subsystem
Procurement
Training
Compensation
Appraisal
Rewards
Product
subsystem
Marketing
Subsystem
Technical
subsystem
Finance
Subsystem
Possibility of never-ending workday
BlackBerrys, cell phones, text
messaging, and e-mail create endless
possibilities for communication
Some workers believe their employer
wants them available 24/7
More strategic (not strictly focused on day-
to-day operational needs)
More proactive (less reactive)
More of a consultant to line management
(less of a bureaucratic specialist)
More of an employee champion (less of an
organizational cop)
Personal credibility

Business mastery

HR mastery

Change mastery
(Broadbank and Ulrich, 1994)

Society for Human Resource Management

Human Resource Certification Institute

American Society for Training &
Development

American Compensation Association
STRATEGIC
HUMAN RESOURCE MANAGEMENT
Strategic Management
The process of identifying and executing the
organizations mission by matching its capabilities
with the demands of its environment.
Strategy
A chosen course of action.
Strategic Plan
How an organization intends to balance its internal
strengths and weaknesses with its external
opportunities and threats to maintain a competitive
advantage over the long-term.
Vision
A general statement of an organizations
intended direction that evokes emotional feelings
in organization members.
Mission
Spells out who the company is, what it does, and
where its headed.
Diversificatio
n Strategy
Geographic
Expansion
Strategy
Vertical
Integration
Strategy
Corporate-
Level
Strategies
Consolidation
Strategy
Cost Leadership Focus/Niche
Business-Level/
Competitive
Strategies
Differentiation
The Fit Point of View (Porter)
All of the firms activities must be tailored to or
fit the chosen strategy such that the firms
functional strategies support its corporate and
competitive strategies.
Leveraging (Hamel and Prahalad)
Stretch in leveraging resources
supplementing what you have and doing more
with what you havecan be more important than
just fitting the strategic plan to current resources.
Strategic Human Resource Management
The linking of HRM with strategic goals and
objectives in order to improve business
performance and develop organizational cultures
that foster innovation and flexibility.
Involves formulating and executing HR systems
HR policies and activitiesthat produce the
employee competencies and behaviors that the
company needs to achieve its strategic aims.
Corporate
productivity and
performance
improvement
efforts
Increased HR
team
involvement in
design of
strategic plans
Basic Strategic
Challenges
Expanded role of
employees in the
organizations
performance
efforts
Strategy
Execution
Role
Strategic
Planning
Roles
Strategy
Formulation
Role
Human Resource
Professionals
Employee
Behaviors and
Competencies
Components of a
Strategic HRM
System
Human Resource
Policies and
Practices
Characteristics of HPWS
multi-skilled work teams
empowered front-line
workers
extensive training
labor-management
cooperation
commitment to quality
customer satisfaction

HR
Activities
Organizationa
l Performance
Emergent
Employee
Behaviors
Strategically
Relevant
Organizationa
l Outcomes
Achieve
Strategic
Goals
1
2
3
4
5
Outline value chain activities
Define the business strategy
Outline a strategy map
Identify strategically required
outcomes
Identify required workforce
competencies and behaviors
6
7
8
9
10
Create HR Scorecard
Identify required HR policies
and activities
Choose HR Scorecard
measures
Summarize Scorecard
measures on digital dashboard
Monitor, predict, evaluate
The 10-Step HR Scorecard Process
Human resource management attracts, develops, and
maintains a talented workforce.
Government legislation protects workers against
employment discrimination.
Employee rights and other issues complicate the legal
environment of work.
Labor relations and collective bargaining are closely
governed by law.
Govt or state machinery regulates the relationship between
workers organizations and employers organizations.

It does it through :
- Statutes and legislations,
- The judiciary- labor courts industrial tribunals
- An executive machinery- that lays down rules, procedures and
gives awards and monitors them
Discrimination
When someone is denied a job or position for non job related reasons
Equal Employment Opportunity
The right to employment and advancement without regard to race,
religion, sex, color or national origin
Affirmative Action
An effort to give preference in employment to women or other
minorities
Employment criteria justified by capacity to perform a job
Comparable Worth
Persons performing jobs of similar worth should receive comparable
pay
Bona-fide Occupational Qualifications
Employment criteria justified by capacity to perform a job







Workplace Privacy
The right to privacy while at work
Independent Contractors
Hired on temporary contracts and are not part of the organizations permanent
work force
Labor Union
An organization that deals with employers on the workers collective behalf
Labor Contract
A formal agreement between a union and employer about the terms of work for
union members

U.S. labor union facts:
U.S. union membership was 12.5% in 2004, down from 20.1% in 1983.
8% of private sector workers belong to unions, and 36% of government
workers.
Many of the fastest growing unions represent white-collar workers.
75% of U.S. adults believe unions improve wages and working conditions;
67% believe unions are too involved in politics.
India being a welfare state has taken up itself the responsibility of
extending various benefits of social security and social assistance to
its citizens.
Although the constitution of India is yet to recognize social security
as a fundamental right, it does require state to promote the welfare
of the people by providing social, economic and political justice
Constitution requires companies to make effective provisions for
making effective provisions for securing right to work, to educate
and public assistance in case of unemployment, old age, sickness
and disablement. Securing just and humane conditions of work.
Raise level of nutrition and standard of living, improvement of
public health etc
A social security division has been set up under the ministry of
labor and employment.
In the context of labor , social security aims at reducing risks
against
loss of earnings or earning capacity due to old age, illness or work-
related injuries.
Social security to the workers is provided through 5 major Acts:

1. The Employees State Insurance act, 1948
2. Employees provident Fund and Miscellaneous provisions Act
3. The Workers Compensation Act
4. The Maternity Benefit Act
5. The payment of Gratuity Act
In addition there are large number of welfare funds also for some
specific segments
Major thrust of social security relating to labor is on:
a) Provisions relating to medical facilities, compensation benefits
and insurance coverage incase if accidents, incapacity, illness
etc..
b) Provisions relating to provident fund and gratuity

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