(i) Era of Industrial Revolution

 

Modern P.M evolved from number of significant inter-related developments prior to beginning of Industrial Revolution.

Prior to IRE existed several distinct Employer-Employee Relationships.

Termed as Slaver, Guild System

Initial State of Guild System seeded Per. Mgt for well-knit groups (Masters, Traveling journeymen & Apprentices)

System involved “ selection, Trg, development, rewarding, maintaining workers”

‘Wage Salary Admn & Collective Barging’ over wage & working conditions were in evidence.

But Economic& Social changes Overtook Old Eco-Soc-Political System.

Indl-Revolution used Mech. Energy/ Machines consequently start of factories with Larger workforce

Productive power/ man increased

Machine efficiency triggered further sub division of labor

Led to specialization in One-Task than skills in No. of Jobs

 

IRE Expanded Mass Production

Mod. Indl Corporations Applied Science & Tech to all Facets of Work 

It affected Personnel Admn. System Profusely:

Work Place – home to Common Roof

Production Methods-Manual skills to Machine skills

Migration-Rural to Urban concentration

Separation- of Owners &Managers, Employer-employee affected

Mechanization- Women & child labor replaced Men

Complexity of Prodn-Process & Adv-Tech : New class of employees commanding power in Coy.

New Jobs suited white collars/ managerial groups replacing Blue collars /artisans

Specialization- produced Specialists: Engineers/Lab-Relation Mgrs/Safety Engineers

Ills of IRE:

Small Dingy Factories

Concentration of people & Machines

Unhygienic & Unsatisfactory Working Conditions

Working Hours: 11 hrs-Adult, 15 hrs-Child

Government – Non-interfering

Labor looked upon – Commodity to be bought & sold

Division of Work -Monotony & Boredom, no pride in jobs

Rules-Strict Discipline

Bondage- Live by clock or else fired

 

IRE: Brought Heights of Business & Economy but materialism, monotony, discipline, boredom, job displacement, work interdependence, poor working conditions, average citizen/ labor exploitation 

 

(ii) Era of Trade Unionism

 

Shortly after Advent of Factory System, collected, discussed common Probs.

Initially Child Labor, Long work Hours

Later, Economic, Employee Benefits, Poor Working Conditions

Workers Joined commonly to ‘Improve Their Lot’

Underlying philosophy- Force Mgt to listen & redress their Grievances

Weapon-Strikes, Slowdowns, Walkouts, Picketing, Boycotts, Sabotage

Influenced-Personnel Management in areas:

Adopting Grievance Handling System,

Accept Arbitration as a means of Resolving Conflicts & Rights, Disciplinary Practices, Employee Benefit Prog, Liberalize Holiday & Vacation Time, Clear Definition of Job Duties/ Job Rights through Seniority, Installing Rational, and Defensible Wage structures

Managements Created:

Organizational Units to deal “ Union-Representative Relationships”

Sponsoring Unions as a means to controlling their Activities

Facilities, consequent to wage hike issues, to Study jobs, Improving methods, Connecting wage to performance, Careful selection of personnel

 

(iii) Social Responsibility Feeling Era

 

In the past, Employers were not very sympathetic towards employees

Robert Owen (1913) – A British Businessman, Reformer, Humanitarian, pioneered fatherly attitude towards the employees

Robert Owen believed that:

 The Principal Socio-economic Environments influence Physical, Mental, Psychological development of workers

To enhance productivity – improve Environment by providing more of Satisfactory Living/Working Conditions

Devote More attention to Vital Machine (workers) than to Inanimate Machine

Owen Implemented Philosophy By:

Building Model Villages next his Mills.

Factory- unheard facilities:  Windows, Ventilations, Shower Bath, & Clean Toilets

Schools- Day (children), Night (workers)

Child Labor- Min. Age Raised to 11yrs, later abolished

Treated Workers- as own children who must be cautiously guided, trained, & protected

Other humanitarians supported  views, like:

‘If each one work for his own economic self-interest, Society will gain’- Adam Smith

‘Emphasis on Mutuality of Interests between Employer-Employee and on Division of Labor to enhance productivity on use of resources;- Charles Babbage

“Hard work high productivity were source of good wages and higher profits for employers” concept of Charles Babbage denounced by Unionisation

 

(iv) Scientific Management Era

 

Movement Began in 1900, Peaked in1930, Dwindled in Relative Importance, Remained Alive to Present Times

Owes to Frederick W.Taylor (1856-1955)- Father of Scientific Management

He started Experiments in Steel industry (Midvale & Bethelem Plants)

Taylor Developed Four Principles of Mgt:

The Development of a True Science for each job

Scientific selection of: Right Person for Right Job

Train a Person to Perform Job in a Scientific Manner

Friendly Cooperation Between MGT & MEN.

 

Taylor Believed that:

‘Planning be the Result of Mgt-Worker Cooperation, incentive provisions be made to compensate workers Financially’

‘Worker were untapped-energy source to be utilized if trained and treated fairly’

‘Anticipated the Modern Suggestion System & Recommended Cash Bonuses for Developed Suggestions from workers ideas’

By Scientific Measurement of Work most of sources of Mgt-Workers conflicts disappear – Time study, method Study Job classifications, Standardization of Tools, Differential piece-rate System etc. 

 

Scientific Management Has:

Had great influence on Management and Employee- Employer Relationships

Elevated MGT. by Plan, System, Design  but declined Mgt. by Hunch/ Intuition

Professioalised Management

 

Taylor’s Approach Improved / Led to:

Management Methods, Procedures & Supervision

Strengthened Production & Supervision

Labor-Mgt. Consensus on Mutual Benefits of Productivity - More Profit for Mgt, more Money & Better lives to Workers

Separate Discipline called “ Human Engg”

It Studies, ‘People At Work and Of Work Methods’

Studies, Equipment Design, Pacing of Work, Hours of Work, Environment of Conditions of Work.

Purpose: To Improve PRODUCTIVITY & JOB SATISFACTION

 

Taylor’s Approach After 30 Years Popularity

As it led to know that Mgt. Problems were result of ‘Human & not Mech. Factors’

Taylor’s Approach Stressed:

Need for Techniques that ensure higher performance at work

&  Eliminate unnecessary movements gave greater importance to Technology than ‘Men at work.

Fragmentation of operation/ Mechanistic conception at work led to Alienation, Frustration, Conflicts, and loss of Production

 

This experience invited New Thinkers Douglas McGregor in U.S.A and Eric Trist in U.K

They pointed out “ Best Results were obtained when Human Beings were treated in Totality of their Physical & Psychological Characteristics”

Henry Gantt, Frank & Lillian Gilbreth Modified Taylor’s views:

Gantt propounded “Task  & Bonus System”- worker paid Hourly Guaranteed Rate + 20% on touching Std-Output + High Pc-Rate for crossing Std-Output”

Frank Gilbreth extensively used ‘Motion Picture of Task done analyzing Body movements, led to Popular ‘ Laws of Efficient Motions’

Lillian Gilbreth produced First time book “ Psychology of Mgt”- application of Psychology to the Principles of Scientific management

 

 

(v) Indl. Psychology  & HR Era

 

Psychologists Entered for Systematic Study of  Personnel Problems

Father of Indl. Psychology Hugo Munsterberg

His Book ‘Psychology & Indl. Efficiency’ Owes Development of Indl. Psychology

 

His Notable Contributions -Analyzing Jobs in terms of

‘Mental & Emotional Requirements’ and ‘Development of Testing Devises’

 

Advances witnessed in Areas of  – Selection, Placement, Testing, Trg. & Research Practices

 

Indl. Psychology Introduced & Emphasized:

Matching Employees to Jobs – Diff Jobs need Diff Skill & Abilities

Use of Personnel Testing, Interviewing, Attitude Measurement, Learning Theory, Trg., Failure & Monotony study, Safety, Job Analysis and Human Engg.

But Major Applications  Areas – Recruitment, Testing for Employment, Job replacement, Promotion & Trg

 

Human Relation Movement Outcome of Reaction Against Impersonality of Scientific Management

“Human Resources M.Imptt. Valuable Assets without which other Resources are useless”- Top Mgt. Personnel.

 

Elton Mayo, Roethlisberger, Dickson Conducted  Experiments at Hawthorne Works, Western Electric, Chicago (Late1920s- Early 1930).

 

 

 

 

Hawthorne Findings:

‘ Human & Social Factors (Not Physical Variables) Accounted For Productivity Phenomenon’

‘Special Aspect of Work-performance is to understand Needs of Mgt & Workers

Impersonal Relationships (worker- supervisor) be fostered to Realize fullest potential of Individuals & groups’

 

As a Result of this Experiment:

Employee Productivity Began to be Analyzed in terms of – Team Works, Participation, Cohesiveness, Loyalty & Esprit De Corpse Instead of  ‘Engg. Terms’

Triggered ENTRY of Several Concepts –(Social system, Informal organisation, Group control of behavior, Equilibrium etc) into fields of ‘ Personnel Mgt’ and ‘Human Relations’

Scientific management treated origination as ‘Tech-Economic System’ while HR Movement viewed it as ‘Social System’

 

 

(vi) The Behavioral Era

 

Era is an Outgrowth of Human Relations Studies

(Began Around 1955; Major Impact Lasted 10-15 yrs)

 

Behavioral Sciences include

Sociology, Social Psychology, Psychology

Mathematical Biology, Medicine & Psychiatry

Anthropology, Economics, History, Philosophy

Research in these Areas catered subject matter for Personnel management

 

Behavioral Scientists are Concerned with the:

*Impact of Methods of Pay and Individual Performance And Effect of Diff. Leadership Style & Philosophy on total Org-Performance

*Job-design its Relationship to Personality Growth; Impact of Diff. Appraisal Systems, Group Influences and Organization Communications on Productivity & Change

 Research Data generated  used for Theory Building.

 

Three Popular Theories

1. Theories of Motivation

     Maslow’s Hierarchy of Need -Higher needs cannot be satisfied unless Lowers Are.

     Herzberg’s Two-factor Theory: Hygiene / Maintenance Needs (money, job, supervision, Working conditions) and Motivators (achievement, responsibility, advancement, recognition)

 

 

 

2. McGregor formulated Two-Management Beliefs or Views (Theory ‘X’& Theory ‘Y’).

Theory ‘X’ (Traditional beliefs , Hard Approach) – strict supervision, coercion and threat breed restriction of output

 Theory ‘Y’ ( Modern, democratic beliefs ,Soft Approach)

    

3. Rensis Likert’s Two Basic Systems of Organizations – System I (based on Theory ‘X’Assumption) and System IV (based on Theory ‘Y’ Assumption)

is based on 

 

This is Also Known as ‘ Human Relation Approach’Tries to

Understand ‘ Human Behavior At Work’

Utilize/ Modify Behavior to Achieve Org-Objective/ Employee Aspiration

 

‘H R-Approach Led to Development of Sound Mgt. Practices:-

2-Way Communication

Employee Participation in Decision-Making,

Individual Goal Setting (MBO)

Informal Organizations

Treating Work Place a Social System

Management Development

Management of change

 

 (vii) Personnel Specialist Era

 

With introduction of Factory system, 1000 of employees under one roof were to be controlled to realize Org-Goals

Administrative office recruited Clerks/Manual Employees responsible to hire workers

Later concerned with the Recruitment, Selection, & Placement

Organization size grew:

Functions allotted to ‘Full Time Manager’

Separate Personnel Executives installed to develop - Systematic Methods, Job Discipline, Job Description & Specifications

Further Duties enlarged to cover ‘Employees Befits & Services’

Arrangements added to train existing employees – Training Manager appointed.

Ultimately Many Specialists introduced: Safety Experts, Physicians, Behavior Researchers, Labor relation Specialist & others

For Administrative & Org-Effectiveness- All merged into a single function’ Personal Manager’ or ‘Welfare Officer’

Subsequently adding:

Organizational  Planning, & Manpower Planning, Manpower Selection, other significant problems of  Mgt of Managers, Mgt of Talent power.

 

 Change Emerged:

‘High Talent Personnel’ were the key Human Resources

Personnel management -TURNED into Present Day Structure

Emphasis Now is on “ MANAGEMENT OF HUMAN RESOURCES”

The Present day Personnel management: Entrusted with 3-Chief Responsibilities

1. To Assist Line Managers in ‘Manning the Organization’ & ‘Help & Maintain Force at Optimum level’, through:

Recruitment, Induction, Placement

Wage & salary Admn

Trg. Key non-Mgt Personnel

Admn. Of Benefits & Allied Services

Dev. Of Employees Communication Programs

2.To Provide Task Force to MGT. in the Areas of:

Union-Mgt. Relations

Mgt. of Staff Development Functions

Trg. Key non-Mgt Personnel

Development of Grievance procedure

Development of Personnel Policies & Procedures

3.To Control Employee Services Functions

Housing, Transport

Promotion of and Recreational facilities

Financial Aid to Employees

Educational Activities

 

Conclusively

Personnel Management Entrusted with Multiple “ Personnel Jobs”

Social, Economic, Political, Technological & Cultural Factors Influenced Nature & Scope of ‘Personnel Administration’

History of Per. Mgt is Evolutionary and Not Revolutionary

Changes Occurred were caused by Gradual Cultural & not By Drastic Events

 

 

HRM Evolution-India

 

Indian experts account growth since 1920

This period related to post I-World War difficult conditions that called for State intervention & Trade Unions.

 

The Royal Commission (1931)- recommended to appoint of Lab-Welfare-Officer for selection of workers & settling grievances

The Factories Act, 1948- compulsory Welfare officer (workers 500 & 500+)

 

In course of time: Two Professional Bodies set up.

IIPM ( Kolkota ) & NILM (Mumbai), premier Traditional Industrial Centers.

Post II- World War & Indian independence- witnessed increased ‘Awareness & Expectations’ of workers

 

 

 

During 1960s Personnel Function began expanding beyond ‘ Labor welfare’

 Labor welfare, IR& Per-Administration merged into emerging profession - Per. Management (PM)

 

Shift in focus towards Professionalisation of MGT.-Massive thrust to heavy industry (II-Five Year Plan) & accelerated growth of public sector in Indian economy

1970s-Shift in Professional Values - Focus from welfare to focus on Efficiency

 

1980s-New Technologies, HRM challenges, HRD- Talk of Professionals

1980s-IIPM and NILM merged, birth of National Institute of Personnel Management (NIPM)1990- ASPM (USA) change to Society for Human Resource Management

1990s-Emphasis Shift to ‘ Human values & productivity through people’

 

 

 

HUMAN RESOURCE MANAGEMENT

Definition

Meaning (Semantic)

Scope of HRM

Objectives & Functions

 

HRM term: -

Relates to-‘People’ aspect in Mgt

Imply Philosophy, Policies, and Procedures & Practices relating to management of people inside organisation.

Getting peoples services, developing & stimulating them to higher performance for their commitment to the Org- objectives.

 Acquiring, developing, stimulating and maintaining outstanding work force will contribute to Org-Effectiveness to sustain survival. Human resource creates organizations and helps them survive & prosper.

 

Definition & Meaning

HRM is a Management function that helps managers Recruit, Select, Train & Develop the members of the organization.

 

5-Essential Core Points

The definition must embrace 5-core points

1. Organizations Are People who staff & Manage Organization

2. Functions & Principles are applied to Acquisitioning, developing, Maintaining & remunerating employees

3. Employees Related decisions be integrated / consistent with all HR-decisions

4. Decisions to influence Org-Effectiveness. Effectiveness must cater to high Quality Products/Services at reasonable Price to customer

5. HRM functions confined to all Types of Organizations

 

Definitions

 

“HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance, and ensuring that they continue to maintain their commitment to the organisation are essential to achieving organizational objectives. This is true regardless of organisation-government, business, education, health, recreational, or social action” - David, A.D  & Stephen, P.R

 

“HRM is planning, organizing, directing, and control of the procurement, development, compensation, integration, and separation of human resources to the end that individual, organizational, and social objectives are accomplished.”  -  Flippo, E.B.

                                 

Therefore HRM refers to a set of Programs, Functions, and Activities designed and carried out in order to maximize both Employee and Organizational Effectiveness.

 

 

 

HRM Semantic

Meaning:

Alike other discipline, HRM also face semantic problem – Two terms personnel management (PM) and HRM

These, basically differ in Scope & Orientation

 

HRM views people – Importt assets for benefit of Orgn-employees-society

HRM emerging as distinct Mgt-Philosophy Promoting Policies on Mutuality- (goals, respect, reward, responsibilities)

Mutuality- elicit commitment then to better eco-performance & HRD

HRM – integrated to Strategic Mgt. of business. HRM – latest term in evolution

 

PM- limited Scope & inverted Orientation

Labor is as  tool, manipulate & replace the worn-out.

Per. Deptt – was not respected and did have not-very-productive employees historically

Per. Function was used to do routine hiring new employees & maintaining records

PM was never considered part of Strategic Mgt. of business

 

 

DIFFERENCE BETWEEN HRM & PM: PLEASE REFER SHEET

 

HRD, PM, & Indl.Relations

HRD- Trg., Development, career panning & development and O.D-Part of HRM

Indl.Relations- Employees’ grievances, Settlement, Unionisation, PM, and Indl.Relations are all PART of HRM

 

 

 

 

 

 

Scope of HRM

The Scope is vast. All activities in the working life of a worker- from the time of his/ her entry till he/she leaves-come under the purview of HRM.

HR planning, Job Analysis & Design, Recruitment & Selection, Training & Development, Performance Appraisal, Job Evaluation, Employee & Executive Remuneration, Motivation & Communication, Welfare, Safety, Health, Ind