Changing dimensions of hr unit ii
- 1. CHANGING DIMENSIONS OF HR by Sumona Ghosh
- 2. HUMAN RESOURCE MANAGEMENT Human Resource Management in its simplest definition means management of organization’s manpower or workforce or human resources.
- 3. PRE INDUSTRIAL REVOLUTION Though it is said that P/ HRM a discipline is of recent growth, it has had its origin dating back to 1800 B. C. For example, the minimum wage rate and incentive wage plans were included in the Babylonian Code of Hammurabi around 1800 B. C. The Chinese as early as 1650 B. C. had originated the principle of division of labour and they understood labour turnover even in 400 B.C. The span of management and related concepts of organization were well understood by Moses around 1250 B.C. and the Chaldeans had incentive wage plans around 400 B. C. Kautilya , in India ( in his book Arthashahtra) made reference to various concepts like job analysis, selection procedures, executive development, incentive system and performance appraisal.
- 4. Medieval Guilds • Medieval Guilds played an important role in medieval towns as guilds attempted to guarantee standards amongst crafts in Medieval England. • A group of skilled craftsmen in the same trade might form themselves into a guild. A guild would make sure that anything made by a guild member was up to standard and was sold for a fair price. Membership of a guild was an honour as it was a sign that you were a skilled worker who had some respect in society. • Some members of a guild were chosen to check that other members of the guild were working up to standard. Those guild members who were found to be cheating the public would be fined or made to do work again but at their own cost. The worst punishment was to be expelled from your guild as it meant that you could no longer trade in your town. A guild would look after you - as a member of it - if you were sick. It would help the families of dead guild members. • They were taught a trade by a guild member. Once an apprenticeship was over, the young person now became a journeyman. He would be paid a wage and once he had saved enough money, he could start up a business of his own
- 6. THE INDUSTRIAL REVOLUTION There was an unprecedented explosion of new ideas and new technological inventions which created an increasingly industrial and urbanised country. This was the Industrial Revolution. Hundreds of thousands of miles of roads, railways and canals were built. Great cities appeared and scores of factories and mills sprang up. The world entered a new age of mechanisation and industrialization. Hard manual labour and its attendants – slavery, serfdom and servitude – were replaced by production lines, where workers carried out very specific, repetitive tasks in exchange for wages.
- 7. The Industrial Revolution gave birth to a new class: The White Collar Worker: • Those that traded brain instead of brawn for wages •Could look forward to higher rates of pay than those on the factory floor • engaged in repetitive tasks, such as typing and accounting and the typical office was run much like the factory floor •With designated start and stop times, prescribed breaks • very detailed job descriptions • little room for creativity and innovation.
- 8. TRADE UNIONS “The worker becomes all the poorer the more wealth he produces, the more his production increases in power and range. The worker becomes an ever cheaper commodity the more commodities he creates. With the increasing value of the world of things proceeds in direct proportion to the devaluation of the world of men. Labour produces not only commodities; it produces itself and the worker as a commodity -- and does so in the proportion in which it produces commodities generally.” Marx, Economic and Philosophic Manuscripts (1844) During the late 1700's and early 1800's governments began to feel pressure from the working class masses who started to question and defy the power of the aristocracy. The working class began to form workplace combinations and trade organisationsto provide a collective voice for their rights.
- 9. EMERGENCE OF THE PERSONNEL DEPARTMENT Modernization and increased means of communication gave way to industrial setup. A department was set up to look into workers wages, welfare and other related issues. This led to emergence of personnel management with the major task as - Worker’s wages and salaries - Worker’s record maintenance - Worker’s housing facilities and health care -fair terms and conditions of employment It was expected that results from providing justice and achieving efficacy in management of personnel activities will outcome ultimately in attaining organizational success.
- 10. POST INDUSTRIAL REVOLUTION A brief overview of major theories release during this period is presented below Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the evolution of scientific human resource management approach which was involved in - Worker’s training - Maintaining wage uniformity - Focus on attaining better productivity. Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). – Observations and findings of Hawthrone experiment shifted the focus of Human resource from increasing worker’s productivity to increasing worker’s efficiency through greater work satisfaction. Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy of needs ( 1954) – These studies and observations led to the transition from the administrative and passive Personnel Management approach to a more dynamic Human Resource Management approach which considered workers as a valuable resource.
- 11. HUMAN RESOURCE MANAGEMENT BECAME INCREASINGLY LINE MANAGEMENT FUNCTION, LINKED TO CORE BUSINESS OPERATIONS. SOME OF THE MAJOR ACTIVITIES OF HR DEPARTMENT ARE LISTED AS- • Recruitment and selection of skilled workforce. • Motivation and employee benefits • Training and development of workforce • Performance related salaries and appraisals
- 12. STRATEGIC HUMAN RESOURCE MANAGEMENT APPROACH The evolution of Human Resource Management took a new turn at the end of the century. Increased free market competition at global level and the proliferation of technology and knowledge based industries raised the importance of human resources. The workforce, hitherto considered as “resources” now became “assets” and a valuable source of competitive advantage. The thrust of human resource management now lies in trying to align individual goals and objectives with corporate goals and objectives, and rather than enforce rules or dictate terms, act as a facilitator and promotes a participative approach.
- 13. These changes influenced Human Resources functions in many ways. •Increased reliance on performance based short term contracts instead of long term employment •Direct linkage of compensation to the profitability of the enterprise and the employee’s contribution towards such profitability •New dimensions for training and development function by encouraging and facilitating innovation and creativity •Motivation through enriching the work experience •Performance and Talent Management displacing performance appraisals
- 14. Outsourcing refers to the exercise of having another company to provide some services. The HR duties which are most likely to be outsourced are employee support and counseling, salaries, allowances, a part of requirement process and background and criminal background checks. The major companies working in this field are Accenture, Hewitt etc. E-HRM uses IT in a dual manner: First, technology assists as a medium with goal of linking and incorporation in an office or on different countries. Second, technology assists actors by partly or completely – replacing for them in performing HR activities.
- 15. THE RELATIONSHIP BETWEEN IHR STRATEGY (THE DECISION TO STANDARDIZE OR LOCALIZE) AND IHR CONTROL SYSTEMS (THOSE POLICIES AND PRACTICES ADOPTED TO GOVERN A SUBSIDIARY)HAS BEEN NEGLECTED. HUMAN RESOURCE PLANNING FROM INTERNATIONAL HUMAN RESOURCE MANAGEMENT POINT OF VIEW IS RATHER DIFFICULT AND COMPLEX COM PARED TO THAT OF DOMESTIC HUMAN RESOURCE MANAGEMENT. THIS IS DUE TO THE FACT THAT INTERNATIONAL HUMAN RESOURCE PLANNING SHOULD CONSIDER A NUMBER OF ADDITIONAL ISSUES LIKE LANGUAGE, CULTURE, SPOUSE AND FAMILY ADAPTABILITY IN ADDITION TO JOB SKILLS, TALENTS AND KNOWLEDGE REQUIREMENT. International Human Resource Management
- 16. CORPORATE GOVERNANCE Corporate Governance is typically therefore perceived as dealing with problems that result from the separation of ownership and governance, so that a company may be governed independently of the promoters and professionally in keeping with the best practices. Therefore, it would focus on: •The internal structure and rules of the board of directors •The creation of independent audit committees •Rules for disclosure of information to shareholders and creditors •Control of the management • •
- 17. CORPORATE SOCIAL RESPONSIBILITY Ethics consists of moral philosophies that refers in particular to the specific principles or rules that people use to decide what is right or wrong. They present guidelines for determining how conflicts in human interests are to be settled and for optimizing mutual benefit of people living together in groups. Corporate Social Responsibility is concerned therefore, with political, economic, legal, ethical, social and cultural activities of a business entity as adapted to the values and expectations of society
- 18. Thank You