ORIGIN AND GROWTH OF PERSONNEL MANAGEMENT

Employment practices differ from country to country Industrially developed nations have different management practices than less industrialized economies Issues are different, practices are different and necessitates innovative strategies News paper reflectVRS,FDS, downsizing/ rightsizing, job-cut, pruning HR issues are globally relevant plant level to international level

 ORIGIN
Guild system Migration

CLOSED ECONOMY

OPEN ECONOMY

Labour problem

Industrial centres

Capital Labour separation

 ROLE & STATUS

Like production, marketing, finance importance given to personnel mgt. Recruiter---welfarepersonnelHRM Change in nature of relationship, rising competition, complexities of organizations, effectiveness, retention, value addition, controlling prices, social change, composition of labour market-----focus on personnel Department Man-machine-adjustment, Mgt.by exception Anticipating & coping with change Various approaches: Scientific mgt., Human relations thought, X-Y thought, Fayolism, Webers rules developed

International Human

Personnel Labour Jobber/ Interpreter Welfare Management Resource Management HRM ( Fig-I : Changing Functional Role of HRM)

Fig-II: Factors Influencing HRM

Information Technology

Individual efficiency

Finance

HRM
Marketing

Political

Group effectiveness

Improving performance

Personnel Management
Phase of management which deals with effective control and use of manpower distinguished from other resources of power. Personnel Administration is the field of management which has to do with planning, organizing, directing and controlling with various operational activities as procuring, developing, maintaining and utilizing labour force. (Prof. Jucious) Edwin B. Flippo: for betterment of individuals, organization and society.

 Personnel Management is that part of management function which is primarily concerned with human relations on a basis of which by consideration of wellbeing of individuals enables all these engaged in the undertaking to make their maximum personal contribution to the effective working of the undertaking. (IPM,London, 1943) Personnel Management is that part of management which is concerned with people at work and their relationship within an organization. Its aim is to bring together and develop an effective organization where men and women who make an enterprise and wellbeing of the individuals and working groups to make best contribution to its success. (IPM, 1963)

ER

PM

Personnel Administration

IR

HUMAN RESOURCE MANAGEMENT

WHAT IS HRM ? FUNCTIONS OF HRM DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HRM MODELS OF HRM GENERAL MANAGEMENT Vs. HRM

 WHAT IS HRM ?
It is a management function Essentially requires an integrated and inter related approach to manage human resources Interdependence among tasks and functions performed Based on systems approach Gaining competitive advantage

 Personnel Management
Personnel Management old terminology

Vs HRM
HRM

Change in departmental structure Working people Work/job related manpower Performance oriented Labour part Reactive approach

new terminology (old wine in new bottle) new structure inflow of human resources, reward system, work system, utilization of human resources Human Resources ( total knowledge skill, creative abilities, talents, apt., values, attitudes, belief of people) organizational citizenship Human capital Policies, practices, system, behaviour, performance. Proactive approach

 Personnel Management
Personnel Management No way concerned with all aspects Organizational growth Record keepers /Time officers Manager (Time office) Traditional approach

Vs HRM
HRM

HR Skills, Technical skills & Conceptual skills Report for basic human rights, greatest good for greatest no. Individual growth & development Social obligation ( social responsibility of business) Manager (HR) Larger, smaller, medium ; IT sector service sector; important

FUNCTIONS OF HRM
MANAGERIAL : planning, organizing, directing, coordinating, budgeting. OPERATIVE : procuring/hiring, utilizing, developing, integrating, maintaining

MODELS OF HRM
Competitive edge in todays market Traditional model inappropriate in our dynamic work environment Global competition Managerial control three aspects: - organizations & job design - organizations culture - personnel techniques & policy HR Manager industrial architect No best way to manage organizations

Overall management
politics

science

management

control

arts

HRM activities
staffing

rewards

development

Employee maintenance

Fomburn, Tichy & Devanna model of HRM

Human Resource development selection performance appraisal

rewards

Havard Model of HRM

Stake holders Interest Shareholder Management Employee group Govt. Community unions

Situational Factors Workforce Busisness Labour mkt. Union Technology Law values

HR Philosophy Hr flow, Reward, Work -system

HR outcome Commitment Cost competence

Longterm Consequence Individual Orgn.wel -being, Societal.

(Fig-III: Changing focus of HR)

Past

Current

Intervention
At Individual level

Emotional---------------------------Attitudinal Belongingness-------------------Commitment Employee centered-------------Customer/client centered Individual appraisal--------------Team appraisal Career planning ------------------Fast track-careers Individual goal setting-----------Participative goal setting Rewards----------------------------Performance linked compensation Unifunctional-----------------------Multifunctional Monotonous recruitment practice----------------------------Creative recruitment practice No transparency in sharing information------------- Information sharing Cash ---------------------------------Capacity building perks Cost cutting--------------------------Cost effective Employee centered-------------- Organization centered Employee---------------------------Human capital Organizational environment---Business environment Human focus---------------------- Economic focus Individual outcomes-------------Organizational outcomes Employee satisfaction-----------Customer satisfaction

At Group level

At Organization Level

Guest Model of HRM

HRM
Strategy

HRM
Practices

HRM
Outcomes

Behav.
Outcomes
Effort/

Perform. Finance

Outcome Outcomes

Differenti Selection

Commitment

Motivation

High:

Profits

-ation Focus

Training Appraisal Rewards Job design Involvement Quality

Cooperation Productivity Quality Involvement Innovation

Low:
Flexibility Organizational

ROI

Cost
(CostReductn.)

Status and Security

Absence L.turnover

citizenship

conflict complaint

Area

PM compliance
-Fair days work For fair days pay -External -Pluralist -Collective -Low trust Mechanistic Formal/ defined roles Top-down Centralised

HRM commitment
Internal Unitarist Individual High Trust Organic Flexible roles Bottom-up Decentralised

Reciprocal commitmen

Psychological Contract
Locus of control Employee relations Organizing principles

Policy goals

Administrative efficiency -Standard performance -Cost minimization

Adaptive work-force Improving performance Maximum utilization

Warwick Model of HRM

Outer context Socio-technical Politics,competition Inner context -culture -structure -politics Leadership HRM context Role Definition HR output

Business Strategy content Objectives Product market Strategy & tactis

HRM content

HR flows Work systems Reward systems Employee relations