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Human Resource Management

Chapter 1

Introduction to HRM

Topics to be covered
We will cover the following:
– Introduction to Management
– Organization
– Introduction to HRM
– Evolution & History of HRM
– Objective of HRM
– Important terminology

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Introduction to Management
♦ Management is the process of designing and
maintaining an environment in which individuals
working together in groups, efficiently accomplish
selected aims.
♦ Management can be defined as ensuring an
organization makes the most effective and
efficient use of resources in order to achieve
agreed objectives.
♦ The process of getting things done, effectively and
efficiently, through and with other people
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Organization
♦ Organization
– A systematic arrangement of people brought
together to accomplish some specific purpose;
applies to all organizations—for-profit as well
as not-for-profit organizations.
– Where managers work (manage).

Common Characteristics of Organizations

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Management Activities
Organizing
Planning Determining what
Defining goals and needs to be done, in
establishing what order, and by
action plans whom
Effective
Management
Controlling
Leading
Monitoring activities
Guiding and
to ensure that they
motivating all
are achieving
involved parties
results

Model of Management 4
Models of Management

Planning
Select
go als an d
ways to
Resources a t t a in t h e m Performance
•H
Hu m an •At
At t a in
Controlling Organizing go als
•F
F in a n c ia l
M o n it o r As s ig n
•R
Ra w •P
Pr o d u c t s
a c t iv it ie s a n d r e s p o n s ib il it y
M a t e r ia l s
make fo r tas k •S
S e r v ic e s
•T
Te c h n o l o g i c o r r e c t io n s a c c o m p l is h m e n t •E
E f f ic ie n c y
c al
•E
E f f e c t iv e n e
•In
In f o r m a t io n Leading ss
U s e in f l u e n c e t o
m o t iv a t e
emplo yees

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Management Levels (typical)

SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager,” Sloan Management Review ( Spring 1989) , 27-37.

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Fundamental Management Skills
♦Technical
– Skills necessary to accomplish or understand the specific
kind of work being done in an organization.
♦Interpersonal
– The ability to communicate with, understand, and motivate
both individuals and groups.
♦Conceptual
– The manager’s ability to think in the abstract.
♦Diagnostic
– The manager’s ability to visualize the most appropriate
response to a situation.

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Fundamental Management Skills (cont’d)

♦Communication
– The manager’s abilities both to convey ideas and
information effectively to others and to receive ideas and
information effectively from others.
♦Decision-Making
– The manager’s ability to recognize and define problems and
opportunities correctly and then to select an appropriate
course of action to solve the problems and capitalize on
opportunities.
♦Time-Management
– The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.

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A Definition of Personnel
Management
Managing personnel is the process of making sure the
employees (not the customers) are as productive as they
can be. This can include hiring, firing, or transferring
people to/from jobs they can do most productively.

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A Definition of HRM?
Human resource management is a distinctive approach
to employment management which seeks to achieve
competitive advantage through the strategic deployment
of a highly committed and capable workforce, using an
array of cultural, structural and personnel techniques
(Storey J., Human Resource Management - A Critical Text)

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Human Resource Management

 “Human” represents the dimension of HRM which relates to


the soft aspects such as commitment of employees through
participation and the most important assets being the
employees.
 “Resource” represents the hard aspects such as the strategy
link of HRM and the importance of efficient utilization of
employees.
 “Management” represents the role of HRM as part of
management that implies that it’s not only an administrative
function that carries out the formulated policies but also a
managerial function that contributes to strategy formulation.

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History and Evolution of HR
♦ Key principles and practices associated with HRM
date back to the beginning of mankind.
Mechanisms were developed for the selection of
tribal leaders, for example. More advanced HRM
functions were developed as early as 1000 and
2000 B.C. Employee screening tests have been
traced back to 1115 B.C. in China, for instance.
♦ The terminology used to describe the role and
function of workers has evolved from "personnel"
to "industrial relations" to "employee relations" to
"human resources."

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History and Evolution of HR
♦ The need for an organized form of HRM
emerged during the industrial revolution, as
the manufacturing process evolved from a
cottage system to factory production. As the
United States shifted from an agricultural
economy to an industrial economy,
companies were forced to develop and
implement effective ways of recruiting and
keeping skilled workers.

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History and Evolution of HR
♦ There were two other particularly important
contributing factors to the origination of
modern HRM during 1880s to 1940s . The
first was the industrial welfare movement,
which represented a shift in the way that
managers viewed employees—from
nonhuman resources to human beings.
♦ The second factor was Frederick W. Taylor's
(1856-1915)Scientific Management, a
landmark book that outlined management
methods for attaining greater productivity
from low-level production workers.
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History and Evolution of HR
♦ In the 1960s and 1970s the federal government
furthered the HRM movement with a battery of
regulations created to enforce fair treatment of
workers, such as the Equal Pay Act of 1963, the
Civil Rights Act of 1964, the Employee
Retirement Income Security Act of 1974 (ERISA)
♦ Furthermore, during the 1970s, HRM gained
status as a recognized profession with the advent
of human resource programs in colleges

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History and Evolution of HR
♦ The whole evolutionary activities and concept
of HR recently help to shift the orientations:
such as changes from personnel to human
resources, from administration to
management, and from human relations to
organizational effectiveness so now HR has
aligned with Senior Management.
♦ HR also now has more input on business
strategies - training, safety, globalization, etc

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Evolution of HR in the Subcontinent
(Specially in India)
Period Developme Outlook Emphasis Status
nt Status

1920-19 Beginning Pragmatism Statutory, welfare, Clerical


30 of Capitalists paternalism

1940-19 Struggling Technical, Introduction of Administrative


60 for legalistic techniques
recognition
1970-19 Achieving Professional, Regulatory, Managerial
80 sophisticati legalistic and conforming, imposition
on impersonal of standards on other
functions
1990-20 Promising Philosophical Human Values, Executive
00 Productivity through
people
2000- Professional Dynamism Business Partner and Strategic
change agent
Evolution in HR in Bangladesh
♦ There is no specific records for the evolution of HRM in
Bangladesh. But it is assumed that Before 1970 the whole
activities was maintained directly under the administrative
department
♦ 1970-80: the importance of Personnel management or
HRM is being recognized for the settlement of some
industrial disputes under the Factory, Industrial & labor
law.
♦ 1980 to 90: The Personnel management concept has
started with recognition
♦ 1990 to till date: After 1990 The HR concept has started
narrowly. From 1997 to 2000 HR concepts tried to
achieve the recognition. After that it has recognized. Some
organization started to set HR department. But till today
this concept is struggling to achieve the mass recognition.

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Objectives of HRM
♦ HRM objectives are four fold
♦ Societal Objectives: To be ethically and socially
responsible to the needs and challenges of the society
while minimizing the negative impact of such demands
upon the organization. Example - Legal compliance, union
management, benefits
♦ Organizational Objectives: To recognize the role of
HRM in bringing about organizational objectives.
Example-HRP, Employee relation, Selection, TRD, PA etc
♦ Functional Objectives: To maintain the department’s
contribution at a level appropriate to the organization’s
needs. Ex-Recruitment, selection, PA etc
♦ Personal Objectives: To assist employees in achieving
their personal goals, at least insofar as these goals enhance
the individual’s contribution to the organization. Ex-TRD,
Placement, compensation, assessment
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HR Practices in BD
♦ HR practice in Bangladesh is better than
the past. But there are scope to be
improved. The following areas on which
the concept has been improvably
practiced:
♦ Functional Concept:
– HR role was concentrated to hiring firing
and letter issuance-dispatching-filing stage
– Now change to Employee motivation,
Employee development, employee
retention, facilitating organizational
development initiatives etc.

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HR Practices in BD

♦ Investment Concept:
– Treated as a cost centre, so no initiative for the
development of HR
– Now HR treats as investment centre. As such
in many organizations, employee
development is viewed as part of
business plan.

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HR Practices in BD

♦ Relationship: Employer - Employee relationships is


better than the past. But till now there are a lot of
scope to improve in the employer-employee relation
as well as employee-employee relations.

♦ Recognition: Employers now started to recognition of


the employees’ participation in business planning,
major decision making and organizational change
process has increased. But till today this practice is
suffering with lots of limitations

♦ Formation of the Bangladesh Society for Human


Resources Management- A platform for HR
Professionals in Bangladesh
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