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C o n f i d e n t i a l

MB0043-Human Resource Management

Unit-2 HRM Evolution

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Program : MBA

Semester : I

Subject Code : MB0043

Subject Name : HRM

Unit number : 2

Unit Title : HRM in India

Lecture Number : 2

Lecture Title : HRM evolution

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Objective

Objective :

To recall the history of Indian concepts in human resources management

To evaluate the impact of the countrys culture on the organisation culture

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Lecture Outline

Introduction

HRM History

Ancient

Employment Laws

Definition of Cultural Dimension

Summary

Check Your Learning

Activity

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Are you thinking how has HRM evolved?

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In the previous unit you are introduced to human resourcemanagement. In this unit you will study the history and evolution ofHRM in the Indian context.

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Managing human resource is a complex process, to understand thephilosophy of human resource management demands a thorough

understanding about the evolution of the concept

from the ancestral to Human resource Management concept.

Introduction

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Ancient Artha Shastra

Medieval

Oppression and poor working conditions in all industries

Post Independence Formation of personnel department in different public

and private sector

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HRM History

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Artha -Shastra

Artha Shastra was written by Kautilya in 4th century .

Artha Shastra gave early traces of HRM.

In Artha Shastra the principle of organizing labor was termed asShreni.

The incentives methods prescribed in Artha shastra were (Sarasa-saama- daana- bheda- danda- catura, the Carrot and Stick approach

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Ancient

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In ancient period, how was the society

divided or on what basis it was divided?

Ancient

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HR began to play a significant role with the early enactment of theseemployment-related laws:

The Workers Compensation Act of 1923 ensured that employerscompensate employees for work-related injuries.

The Trade Union Act of 1926 gave formal recognition to tradeunions.

The Industrial Disputes Act of 1947 led to the increased role ofindustrial relations (employees were distinguished by the workthey did such as permanent, temporary, trainee etc.).

The Factories Act of 1948 regulated the work environment infactories to ensure the safety of employees.

The Employees Provident Funds and Miscellaneous Provisions Actof1952 required employers to provide contributions forretirement.

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Employment Laws

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Liberalization played an important role, as human resource startedfloating from one country to another, leading to diversification of

workforce and cross culture environment. Employees migrate from

one to another nation and bring their culture with them leading to

mixed organization culture. And this increased the role of HR

professionals as they have to play major role in coordinating the

workforce of different culture in an organization.

Employment Laws

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The Minimum Wage Act of 1948 established minimum wages that varyfrom state to state.

The Payment of Bonus Act 1965 provides for a minimum bonus of 8.33percent of salary, even if the organization is not making any profit.

The Persons with Disabilities Act (PWD) of 1995 was landmark legislationfor disabled people in India.

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Employment Laws

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Find out what are the values, norms and beliefs of high powerdistance countries?

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Employment Laws

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Masculinity :Masculinity refers to a situation in whichthe dominant values in a society are success, moneyand other material things

Power distance: The degree to which organizations

and societies accept power.

Individualism:Individualism is the tendency of peopleto look after themselves and their family only.

Uncertainty avoidance: The degree to whichorganizations and societies avoid uncertainty byrelying on practices and procedures.

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Definition of Cultural Dimensions (GLOBE Study)

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Assertiveness: The degree to which individuals inorganizations or societies are assertive in socialrelationships.

Future orientation: The degree to which individualsin organizations or societies plan for the future.

Gender egalitarianism: The degree to whichorganizations or society promote gender equality.

Humane orientation: The degree to whichindividuals in organizations or societies rewardindividuals for positive behavior.

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Definition of Cultural Dimensions (GLOBE Study)

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MB0043 H R M

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HRM in India has been impacted both by its own history as well asmultinational companies that came and established their operations inthe country

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Summary

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MB0043 H R M t

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Check Your Learning

1.Which Act brought the first set of formal guidelines and rules that the

industries had to comply with?

Ans. Factory Act of 1881

2. Which is the first Labor organization and when it was established?

Ans. Bombay Mill Hands Association and it was established in 1905.

3.In which year formal implementation of the Indian Trade Unions Act

took place

Ans. It took place in 1926

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List out the salient features of Factory Act,1948.

Read Article Introduction to HRM

Read Blog Managing workforcehttp://resources.smude.edu.in/blogs/muzna/

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Activity

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MB0043 Slides Unit 02

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