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 E

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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 HRME

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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

Consists of inter-dependant parts

Reactive, responding to events when they occur

Philosophy

Proactive, trying to anticipate & get ready with

appropriate responses

Exclusive responsibility of personnel

department Responsibility

Responsibility of all managers in the organisaiton

Emphasis on monetary rewards

Motivators

Emphasis on higher order needs eg. Empowering

people

Improved performance is a result of improved

satisfaction & morale Outcomes

Better use of human resources leads to improved

satisfaction & morale

Tries to improve the efficiency of people &

administration Aims

Tries to develop the organisation as a whole & its

culture

ESSENTIALS IN THE DEFINITION OF HRME

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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 HRME

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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 HRME

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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 HRME

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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 HRME

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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 CYCLEE

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HRM Concept – Michigan School

1. Selection: Matching available human resources to jobs

SelectionPerformance

ManagementPerformance

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 HRME

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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 HRME

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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 WHEELSE

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HR areas output:

Quality of work life

Productivity readiness

for change

Union/ Labor

relationsEmployee

assistanceT& 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.

HUMAN RESOURCE WHEELSE

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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.

HUMAN RESOURCE WHEELSE

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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

En

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t

Organisational

Goals

Competent &

Willing workforce

THE

HRM

MODEL

HUMAN RESOURCE FUNCTIONSE

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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 FUNCTIONSE

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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 HRME

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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

CONCLUSIONE

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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