Lecture 2 Date: Topics Discussed: Nature and Development of Personnel Management. Instructor: Mr.

Parikshit Joshi
EVOLUTION OF HRM Earlier References: In Western countries HRM had its primitive beginning in 1930s. Not much thought was given on this subject in particular and no written records or documents existed on this subject even as a philosophy in Western ancient literature. However, it is quite interesting to note HRM concepts were available, in ancient philosophies of Greek, Indian and Chinese. This is not to suggest that industrial establishment and factories system, as it is known today, existed in ancient Greece, India or China. The philosophy of managing human being, as a concept was found developed in ancient literatures in general and in Indian philosophy in particular. Some references are given in Table 1.

Table 1 Personnel Functions: Till 1930s, it was not felt necessary to have a separate discipline of management called "Personnel Management". In fact, this job was assigned as part of the factory manager. Adam Smith's concept of factory was that it consists of three resources, land, labour and capital. This factory manager is expected to "procure, process and peddle (sell or get rid of)" labour as one of the resources. The first time when such a specialist “person” was used; it was to maintain a "buffer" between employer and employee to meet the "legitimate need" of employees. However, it is the employer who decided what “legitimate need” of his employees is. In fact, the specialist "person" was more needed to prevent "unionisation" of employees. This was the case before 1930s all over the world. Environmental Influences on HRM: Since 1930s, certain developments took place which greatly contributed to the evolution and growth of human resources management (HRM). These developments are given below: • Scientific Management • Labour Movements • Government Regulations

and (iv) The labour officer should fulfill many duties. a labour officer be appointed for this purpose. qualifications and conditions of service of officers employed under sub-section (i). The importance of labour officers in Indian industry was realised as early as 1929. (ii) The qualities required of a labour officer should be integrity. The Factories Act of 1948 provides for the statutory appointment of a welfare officer in a factory. The Mines Act. these officers were generally entrusted with the handling of welfare and labour administration. (2) the state government may prescribe the duties. Section 49 (1) and (2) of the Factories Act lays down that: (1) in every factory wherein 500 or more workers are ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be prescribed. the Commission recommended the appointment of a labour officer in order to "protect the workers from the evils of jobbery and indebtedness. public concern for improving labour administration and the growth of the modern management movement. who were required to attempt to settle grievances and disputes. These officers were entrusted with the responsibility of setting up food shops. the Bombay Mill owners Association appointed labour officers on their own. (iii) All labour should be engaged by him. instead. 1952 also provides that every mine wherein 500 or more persons are . labour legislation being one of them. According to the Plantations Labour Act. Similar officers were appointed in the jute industry in Bengal under the directions of the Jute Mills' Association. as in other countries (the USA and the UK). If he is of the right type. to act as a spokesman of labour and to promote an amicable settlement between the workers and management. personality. During the Second World War. Personnel officers in the textile industry came up from the department concerned with recruitment and the settlement of grievances rather than from one administering welfare activities. energy. Their functions thus included activities relating to welfare.P ERSONNEL M ANAGEMENT IN INDIA The Personnel Management in India has been a product of various factors. personnel and industrial relations. Their functions as Industrial Relations Officers to handle grievances and prevent disputes were stressed from the beginning. and should particularly initiate and administer welfare measures. promoting sports and welfare activities. qualifications. the workers will rapidly learn to place confidence in him and regard him as a friend. In 1931. The state government may prescribe their duties. 1951 every plantation wherein 300 or more workers are ordinarily employed the employer shall employ such number of welfare officers as may be prescribed. and conditions of service. In 1931." The Commission observed that: (i) The jobber should be excluded from the engagement and dismissal of labour and that. and none should be dismissed without consulting him. Their functions were subsequently enlarged and were influenced by the social reform movement in the country. when the Royal Commission on Labour was set up. and the gift of understanding individuals and he should have a linguistic facility.

. it cannot be properly performed by a personnel officer. to report on and assist the organisation in dealing with mostly discipline and getting rid of trouble-makers.. partly as a house-keeping job. i. The line executives are often regarded as those who get the material. At this stage. In the beginning." "personnel officer. while staff executives are those who attempt to prevent the line boys from doing their jobs. personnel management was neither given any particular attention nor place in the organisation system.The attitude of the employees towards personnel officers has not been favourable." has moved on to be known as "labour welfare officer. But since the personnel function is a line responsibility and a staff functions. constructive role to play. Subsequently. satisfying the statutory requirements. the owner. including those concerned with welfare. Incidentally.. nor did professionals find themselves involved in the process.e. However. The "personnel man. agent or manager has to appoint a suitably qualified person as welfare officer. partly as social worker’s job and partly as a firefighter to head off union trouble or settle it. with day-to-day personnel administration and with industrial relations. it was mostly engaged in "fire fighting tasks". Its existence without any apparent assignment or responsibility was the usual picture and the so called champions and protectors of labour welfare used to remain only on the fringe of industrial activities as an appendage to the system. cut it up and hold it together and ship it out. the use of welfare officers for aiding and abetting the exploitation of the working class by certain organisations brought them on the periphery of notoriety. Management in India is still traditional and does not take the personnel officer into its Confidence. i. In the words of Peter Drucker. The plethora of labour laws has encouraged trade unions to keep some matters always under litigation for the advancement of their selfish interests. he has neither the time nor inclination for long-range planning. As a result." Impediments to the progress of HRM in India There are various factors which have hindered the growth and development of personnel management in India. it was at this stage that." who was initially known as "welfare officer. at times. Some of the important reasons are:1.ordinarily employed. without any specific. "the personnel manager tends to conceive his job partly as a file clerk's job." 3. their salaries and conditions of service. their appointment in industries remained only symbolic. This factor keeps a personnel officer preoccupied in litigation and away from his more important duties. These Acts also prescribed the manner of their recruitment. going to the forefront at the moments of crisis. without having carried out any preventive or organising action. Personnel Officers are even now required to spend a major portion of their time in attending to disputes and the grievances of workers. 2. and also laid down an elaborate list of duties to be performed by them. it was entrusted with the policing /unction within the organisation.e." Such ideas about the role of the personnel managers generate frustration among them.'" "industrial relations officer" and is now identified as "human resource manager. by and large.The legal status of a Personnel Officer requires him to work in the field of welfare and day-to-day personnel administration and industrial relations.

Lack of professional training facilities.4. They should shed this trait and make an effort to integrate the expectations of all other professionals in industry without creating the feeling of an imposition. This fact makes the profession an easy prey to politicization by government machinery. the personnel mean — whether due to professional zeal or personal ambition — have tried to impose their will on other professions. The professional courage to disagree is a rare virtue. when actually put in it. The inability to take decisions and the lack of courage to take responsibility for decisions based on their advice have been their greatest handicaps. a sense of insecurity and lack of job satisfaction among a large number of personnel executives drive them away from the profession. 12. trade unions as well as the government. 11. 7. the acceptance of "man-management" as a profession has to come from employers. Many a time. which keeps them from being developed. This tendency has been responsible for their alienation. Further. 9. Absence of such professional courage of conviction and lack of confidence in their own competence often compel them to take the line of least resistance. 8. 10. In their behaviour. where the result of any faulty action or decision becomes almost immediately obvious. 6. including the organisations. It is because unlike professions such as engineering and medicine. By and large such professionals have not been tested in any trying situation and. The urge for updating the personnel people themselves is also mostly absent. One of the reasons being that this profession is still considered by many to be somewhat like a pinjrapole. have still the ageold curriculum which falls far short of equipping the incumbents with the desired type of fast changing knowledge and skill — which could enable them to deal with human problems effectively at the first instance. trade unions and even by those within the organisation. Their pre-occupation with their own personal aspirations make them overlook and. personnel management has not yet been accorded the totality of acceptance by all concerned. at times. the loss felt and the person responsible identified. 5. The educational institutions which supply the 'material'. ignore the expectations of all others. Finally. an abode of useless cows. Mostly those of ordinary caliber have found place in this profession. . the result of faulty decision on the management of human resources is not. have generally emerged as failures succeeding rarely. by and large felt immediately and the responsibility for it can safely be shifted to someone else. unlike other professions. tendencies like making false promises for cheap popularity and taking credit for the performance of others make it difficult for them to be acceptable to others. The lack of initiative renders them obsolete and incompetent for the challenging jobs. The profession has not so far attracted the most meritorious among young persons.

industrial unrest took place. Through the efforts of R. N. By end of War. Membership of Indian TU's dropped from 2. for the first time. Period 1940 to 1970: Following are the major developments. Period 1900 to 1940. • In 1942. Indian TU Federation (ITUF) under moderates. Congress of Industrial Organisation (CIO) was formed in 1935. • President Woodrow Wilson's support to A. • Russian Revolution of 1917 and emergence of communist socialistic movement and unionism.R. 08.V. • First World War and favourable condition it created to unions. gave upper hand to labour.F. in 1937 after General Election. Red Trade Union (RTU) under communists and Independent Trade Union like that of Ail India Railwaymens Federation (AIRF). • Spurt of activities of TU after 1937-40. Gokhale. Illeffect continued up to 1935. Giri. AITUC was split into four parts viz AITUC. large-scale retrenchments. V. First time in 1927. This resulted in setting up a permanent. Split in TU movement in India (1930-35).071 in 1934. Tripartite Labour Conference was convened. 42. • Formation of ILO in 1919. . CIO represents all tradesmen of each Industry. • Formation of Congress Ministries under Government of India Act 1935. Important events occurred during this period are given below: • "Workers Welfare League of India" was formed in UK inl911 to protect labour interest and unity between British and Indian workers. till the end of First World War. there was no industrial dispute or unrest of importance. May Day (1st May) was celebrated in India at Bombay and Indian labour formed part of international labour movement. In USA. Joshi and others TU unification was brought about-in 1940 at Nagpur. withdrawal of amenities. • Growth of Indian national movement and participation of Industrial workers in this movement. All India Trade Union Congress (AITUC) was formed in 1920.L. Both AFL and CIO provided teeth to trade union movement in USA.Influence of Labour Movement on HRM: Even though modern industry began to grow in India from 1850s. (1) World War Period • Outbreak of Second World War and resignation of Congress Ministry in India (1940). Tripartite Consultative Machinery Consisting of the following.355 in 1930 to 2. Consolidation of TU in India.M. • Strikes and lock-out and reign of terror unleashed by British Government on workers and unions opposing to British War efforts. • Great Depression of 1930. While AFL represents trade of all industries. on account of high price rise and economic depression.

This was the period which saw favourable disposal towards labour. professionals. • Second World War period consolidated T. • Semi-skilled and manual labour in private and unorganized industries are enormously exploited. • This has enhanced the status of trade unions in India. an increase of 121. between developed nations and developing nations. Even though initially it helped TU eventually if went against long term TU interests because of political interference and outside leadership. CPM formed another TU called Centre of Indian Trade Union (CITU). • 1947-Indian National Trade Union Congress (INTUC) was formed owing allegiance to Congress party.484 by 1971 with a total membership of 5. (2) Post-War Period. of registered TU increased to 22. Communist party in Indian split into two CPI and CPM. • In 1970. • Multiple unionism. • In USA. No. Political interference and outside leadership are being resented by workers. Some of these issues are discussed here. This cause frustration of educated-unemployed and large scale migration. journalists and even government officers and teachers have organised unions.5 per cent and total membership to 8. Modern Period after 1970. • Public opinion goes against frequent strikes and labour unrest.1942 to 1946).5 million.* Plenary conference * Standing Labour Committee. Alienation between leaders and members often frustrate unionism. The problem and prospects of TU and labour force vary. union rivalries and lack of union leadership goes against working interests. A socialistic democratic government was set up which favours labour. Leftist formed United Trade Union Congress (UTUC) in the same year. Developing Nations like India • Problem of unemployment and under-employment. Hind Mazdoor Sabha (HMS) was supported by socialists.64 lakhs. Within a period of 4 years (viz. Following events took place during this period: • 1947-India becomes independent. This is mostly due to absence of realistic National Manpower Planning. • All types of workers. • Political patronage became a pattern of Indian Trade Union. Trade unionism and collective bargaining is an accepted phenomenon in India and world over. • In 1948. • Social security to employees is inadequate. technicians.U movements and employers acceded some of their demands like DA adjudication and setting up tripartite bodies. AFL and CIO merged together in 1955 to become strong trade union. . number of TU's increased from 562 to 1087. • Poor training leading to very low productivity.

its employees and the society as a whole Many Division of labor Reach temporary truce Controlled access to courses Personnel procedures Labor is treated as a tool which is expendable and replaceable Interests of the organization are upper most Precedes HRM Shared interests Evolution Mutuality of Interest Latest in the evolution of the subject . key task Performance related Harmonization Individual contracts Few Team work Manage climate and culture Learning companies Wide-ranging cultural. structural and personnel strategies People are treated as assets to be used for the benefit of an organization.Difference between Personnel Management and HRM Dimensions Employment contract Rules Guide to management action Behavior referent Managerial task vis-a vis labor Key relations Initiatives Speed of decision Management role Communication Prized management skills Selection Pay Conditions Labor management Job categories and grades Job design Conflict handling Training and development Focus of attention for interventions Respect for employees Personnel Management Careful delineation of written contracts Importance of devising clear rules Procedures Norms/customs and practices Monitoring Labor management Piecemeal Slow Transactional Indirect Negotiation Separate. impatience with rule Business need Values/mission Nurturing Customer Integrated Fast Transformational leadership Direct Facilitation Integrated. outlook. marginal task Job evaluation (fixed grades) Separately negotiated Collective-bargaining contracts Human Resource Management Aim to go beyond contract Can do.

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