Intro and evolution of hrm

EVOLUTION OF HRM
“There is no ‘magic’ in the success of companies.
The secret of their success is simply the way that treat their employees”
Akio Morita
Founder, Sony Corporation

HR HISTORY
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• Hiring & Firing
• Unions emerged: Labour relations specialists
• Welfare
• Subspecialties as :
Staffing /Training/Compensation/Appraisal System
• Late 70’s HR professionals mastered the activities of
Staffing, Development, Appraisals & Rewards.
• By 1980’s organizational design and communication, got added

HOW IS PM DIFFERENT FROM HRM
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Personnel Management and HRM differ in scope
PM is viewed as a tool. The behavior of which could be manipulated for the
benefit of the organization and replaced when it is worn out. It was a routine
activity meant to hire new employees and to maintain personal records. It
was never considered as a strategic management of business.
HRM would view people as an important source or asset to be used for the
benefit of the organization , employees and society.

HOW IS PM DIFFERENT FROM HRM
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PERSONNEL FUNCTION POINTS OF DISCUSSION HRM
Maintenance oriented
Orientation
Development oriented
An independent function with independent sub-
functions Structure
Consistsof inter-dependant parts
Reactive, responding to eventswhen they occur
Philosophy
Proactive, trying to anticipate &getready with
appropriate responses
Exclusive responsibility of personnel
department Responsibility
Responsibility of all managersin the organisaiton
Emphasison monetary rewards
Motivators
Emphasison higher order needseg. Empowering
people
Improved performance isa resultof improved
satisfaction &morale Outcomes
Better use of human resourcesleadsto improved
satisfaction &morale
Triesto improve the efficiency of people &
administration Aims
Triesto develop the organisation asa whole &its
culture

ESSENTIALS IN THE DEFINITION OF HRM
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It is people who staff the organization and manage organizations
HRM involves application of management functions and principals.
Functions and principals are applied to acquisitioning, developing ,
maintaining and remunerating employees
Decisions on different aspects of employees must be consistent with
other decisions on HR
Decisions made must influence the effectiveness of the organization,
i.e. it should result in betterment of services to customers or
productivity

DEFINITIONS OF HRM
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HRM is a series of integrated decisions that form the employment
relationship; their quality contributes to the ability of the organization and
the employees to achieve their objective.
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 commitments to the organization are
essential to achieving organizational objectives.

DEFINITIONS OF HRM
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HRM is management in planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and
social responsibilities are accomplished.

MANAGERIAL FUNCTIONS OF HRM
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Planning: Determination in advance of a personal program that will
contribute to goals established for the enterprise
Organising : This is required to carry out the plans. Designing the structure of
relationships among jobs , personnel and physical factors.
Directing : Before the action is started “direction “ is necessary; this may be
in the form of “motivation “ “ actuation “ or “ command “.This is to get
people to work willingly and effectively
Controlling: Observation of action and its comparison with plans and
correction of any deviation that may occur at any time.

OPERATIVE FUNCTIONS OF HRM
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Procurement: Obtaining proper kind and number of personnel necessary to
accomplish organizational goals
Development: Increasing the skill through training that is necessary for proper
job performance
Compensation: Adequate and equitable remuneration of personnel for their
contribution to organization objectives.
Integration : It is concerned with a reasonable reconciliation of individual ,
societal and organizational interests .
Maintenance: Maintenance is concerned with the continuation of this state , this
is heavily effected by communication with employees.
Separation : Separations and return of that person to society. Could be
retirement , lay off , out-placements and discharge

THE HUMAN RESOURCE CYCLE
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HRM Concept – Michigan School
1. Selection: Matching available human resources to jobs
Selection
Performance
Management
Performance
Rewards
Development
2. Appraisal: Performance management
3. Rewards: It must reward short as well as long-term achievements
4. Development: Developing high quality employees

THE HARVARD FRAMEWORK FOR HRM
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HRM policies
• Employee
influence
• Human
resource flow
• Reward
systems
• Work systems
HRM outcomes
• Commitment
• Competence
• Congruence
• Cost -
effectiveness
Long-term
consequences
• Individual well-
being
• Organizational
effectiveness
• Societal well-
being
Stakeholder Interests
• Shareholders
• Management
• Employee groups
• Government
• Community
Situational factors
• Workforce
characteristics
• Business strategy
and conditions
• Management
philosophy
• Labour market
• Unions
• Tasks technology
• Law & societal
values

THE 5-P MODEL OF STRETEGIC HRM
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Organization Strategy
Strategic Human Resources Management Activities
Human Resources Philosophy - Expresses how to treat and
value people
Human Resources Policies - Guidelines for action on
people related business and HR programs
Human Resources Programs - Help to address and change major people
related business issues
Human Resources Practices - Motivates needed role behavior
Human Resources Processes - Defines how these activities are carried out
Internal Characteristics External Characteristics
Strategic business needs

HUMAN RESOURCE WHEELS
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HR areas output:
Quality of work life
Productivity readiness
for change
Union/ Labor
relations
Employee
assistance
T& D
Personnel
research and
information
systems
HRP
Selection
and staffing
Compensation/
Benefits
Organization/
Job design
The American Society for Training & Development (ASTD) has developed a Human
Resource Wheel in 1983 highlighting different functions of HRM leading to quality of
work life, productivity and readiness for change.

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T & D focus
Identifying, assessing and through planned learning---helping develop the key
competencies which enable individuals to perform current or future jobs.
OD focus
Assuring healthy inter- and inter-personal relationships and helping groups initiate
and manage change.
Organization/Job design focus
Defining how tasks, authority and systems will be organized and integrated across
organization units and in individual jobs.
HRP focus
Determining the organization’s major HR needs strategies and philosophies.

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Selection and staffing
Matching people and their career needs and capabilities with jobs and career paths.
Personnel research and information systems
Assuring a personal information base.
Employee assistance focus
Providing counseling to individual employees, for personal problem-solving.
Union/Labour relations focus
Assuring healthy union/organization relationships.
Compensation/Benefits focus
Assuring compensation and benefits fairness and consistency.

Nature of HRM
Human Resource Planning
Job analysis
Recruitment
Selection
Placement
Training &development
Remuneration
Motivation
Participative Management
Communication
Safety, health & Welfare
Promotions etc.
Industrial relations
Trade Unionism
Disputes & their settlement
International HRM
Ethical issues in HRM
Environment
Organisational
Goals
Competent &
Willing work
force
THE
HRM
MODEL

HUMAN RESOURCE FUNCTIONS
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Recruiting and selecting personnel to fill specific jobs within an organization.
Carrying out job analysis to establish the specific requirements for individual jobs
within an organization.
Forecasting the human resource requirements necessary for the organization to
achieve its objective – both in terms of number of employees and skills.
Developing and implementing a plan to meet the manpower requirements.
Orienting and training employees.
Designing and implementing management and organizational development
programmes.
Designing systems for appraising the performance of individuals.

HUMAN RESOURCE FUNCTIONS
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Designing and implementing compensation system for all employee and have
systems for promotions and transfer
Departmental administration programs – Planning, record keeping, reporting ,policy
formulation , and general administration.
Implement activities to ensure proper health and sanitation and safe work place
Adherence to Government norms and regulations
Employee communication , personal counseling, personal research etc
Assisting employees in developing career plans.

CHALLENGES FACED BY HRM
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Globalization
Build value chain for business competitiveness
Technology
Attracting and retaining intellectual capital
Profitable through cost and growth
Capability Focus
Change

CONCLUSION
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Organizations are now defined as :
• The core competencies within the organization
• The people within the organization
• The organizational culture or shared values and knowledge or learning.
The HR systems needs to be retained and constantly upgraded and changed:
People will always need to be hired and trained
Process will always need to be created and upgraded
Cultures will always need to be established and transformed.
HR practices must
Be aligned to business realities, meeting deadlines , making profits, leveraging
technology, satisfying investors and to serving customers ,.
HRM is to create organizational capabilities that will lead to competitiveness

Intro and evolution of hrm

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