Human Resource Management

Presentation Outlines

1. Meaning & definition of HRM

2. The development of HRM concept

3. Personnel management Vs HRM

4. 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 (1927-1932) 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 1950’s. 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. HRMDeals with employees, their pay roll and employment law

Deals with mgmt of work force and contributes to organizational success.

Focuses on personnel mgmt. skills

Focuses on team work

Reactive Proactive

Administers people or employees

Build dynamic culture

Independent from an organization

An integral part of a company.

Short term focused Long term focused

Regards investments in people as a variable cost.

Regards investment in people is a social capital capable of development.

Aims at non managers-specialists and professionals- to increase the skills of employee.

More concerned with the managers specifically developing the management team

In a unionized organization, mainly concerned with negotiating and collective agreement.

The concern of HRM is employees’ commitment. participation are emphasized

Concerned with the job satisfaction of employee.

Concerned with the development of organizational culture.

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

Thank You