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    PGPA-03Human Resource Management

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    STUDY MATERIAL P.G.P.A. PAPER 3 MODULES : I-IV POST GRADUATE PUBLIC ADMINISTRATION PREFACE in the currcnlar structure introduce by this University for students of Post-Graduate degree programme, the opportunity to pursue Post Graduate couree in a Subjects 9s inroduced by ths University i equally available tall eamer, Instead of being guided by any presumption about abil level, it would perhaps stand to reason ifzeceptivity of & leaner is judged inthe course ofthe Leaming process. That would he entirely in keeping ‘with the objectives of open education which docs not believe in artificial differentiation. Keeping this in view, study materials of the Post-Graduate level in diferent subjects are being prepared on the basis of 2 well laid-out syllabus. The course structure combines the best elements in the approved syllabi of Central and State Universities in respestive subjects, I has been so designed as to be upgradable with the addition, of new information as well as results of fresh thinking and analysis. “The acepted methodology of distanze education has been followed in the preperation ofthese sud materials. Co-operation in every form of experienced scholars i indispensable fora work ofthis kind. We, therefore, owe an enormous debt of gratitude to everyone ‘whose tireless efforts went info the writing iting and devising of proper lay-ou: ofthe, ‘materials. Practically speaking, theirrole amounts ton involvement in ‘invisible teaching’ For, whoever makes use of these stady materials would virually dete the bencfit of fearing under thet colletve cae without each being seen by the other ‘The more a learner would seriously pursue these study materials the easier it will be for him or her 0 reach out to larger horizons of 2 subject. Care las also been taken to sake the language lucid and presentation attractive so that they may be rated as quality elearning materials. Lf anything remains sil obscure or difficult to fllew, arangenncats are theze to come to terms with them through the counselling sessions regularly available at the network of study centres set up by the University. [Needless to add, a great deal of these efforts are still experimental-in fact, pioneering in certain areas, Naturally, there is every possibilty of some lapse or deficiency here and there. Fiowover, these do admit ef revtfication and futher improvement in due course. On the whole, therefore, these study materials are expected to evoke wider appreciation the mote they receive serious attention of all concerned, Professor (Dr.) Subjia Sankar Sarkar Vice-Chancellor ‘Third Reprint — January, 2020 $$$ ie eer yes Printed in accordance withthe regulations of the Distance Education Bureau of the University Grants Commission, Post Graduate : Public Administration [PGPA.] Paper-IlL Module - 1 Module I, TH, 1V Course Writing Course Writing Prof. Biswanath Ghosh Prof, Biswanath Ghosh Kditing Prof: Asok Mukhopadhaya ‘Notification ‘All rights reserved. No part of this Study material may be repoduced in any form ‘without permission in writing ftom Netaji Subhas Open University. ‘Mohan Kumar Chattopadhyay Registrar ) NETAJI SUBHAS P.GP.A. I W ) OPEN UNIVERSITY oe Module - 1 Unit 1 Basic Concepts 7-26 Unit 21 Women as Human Resource 27-33 Unit 3 1 Changing Contours of the Civil Service : 34-41 Unit 4G Reservation Policy in India 42-47 Module 20 Rec it and Selection 48 - 106 Module 3. Compensation 107- 156 Module 4 0 Motivation 187 - 210 Th AS ean BALI VVIARA TIA AIO UNIT 1 O BASIC CONCEPTS ‘Structure 1.1, Concept of Human Resources Management 1.2 Principles Underlying Human Resources Management 1.3 Human Resources in the Changing Environment 1.4 Human Resources Development Department and its Functions 1.5 Stages in the Evolution of Human Resources Management 1.1 CONCEPT OF HUMAN RESOURCES MANAGEMENT Since the 1980s the nature of Personnel Management is undergoing change and personnel function is shiling the locus ofits foaus. Amongst personnel specialists, the tarm, ‘Personnel Management is being substituted by that of ‘Human Resources Management. It is felt that Personnel Management is being directed mainly at company employees and is not being completely identified with managerial needs. Personnel men have all along been mediating in between the management and the employees communicating the neads of each other. To maintain credibility with ‘employees, mediating personnel men have to look after their welfare, At the same time to justily their existence with management, they must show to their managers, 18 concern for the efficiency of tabour utlisation as well as ensure that start interasts are always subservient 1o those of organisational effectiveness. Human Resources Management, by contrast, is directed marnly towards managerial needs for people resources in organisations, with greater emphasis being placed on planning, monitoring and control rather than on problem solving and mediation. Whereas traditional Personnel Management is committed to the idea that employees’ neads should be looked after, since employees are ettective only When their needs are satisied. Human Resources Management retlecte a different set of beliefs. These are, that deploying of human resources in correct numbors with the right skis at the right price és more important than a patronizing involvement with people's personal affairs, HRM (Human Resources Managemen) is significantly diferent from Personnel Management. HRM is proactive rather than reactive, is systemavide rather than pplecerneal, treats labour as social capital rather than as a variable cost, is goal= ‘oriented rather than relationship-oriented and is ultimately based on commitment father than compliance, ‘Torrington has argued that Personnel Management has grovn through assimilating ‘a number of additional emphases to produce an ever-ticher combination of expertise HRI is no revolution but a further dimension to a mult-faced role. While Personnel Management is supply-criven, HEM js demand-iven, Personnel Management is directed .mainly at the employees of the erganisation- finding and training them, arranging their pay and contracts of ernployment, exoiaining what is expected of them; justifying what the management is doing and trying 10 ‘modify any management action that could produce an unwelcome response from the employees. In contrast, the HRIM starts not from the organisation's emplayoos, but from the organisation's naed for human resources; with demand! rather than the supply, Al first sight, @: revolution seems to be taking place in Personnel Management all over the world. Not only are there major changes in practice which go tar beyond the choice of this or that technique, there Is also sald to be & paradigm shift ‘courting in the thinking on Personnel Management which shows @ new theoretical sophistication. The new paradigm seems capable of both describing and explaining the changes in practice and of providing the rationale tor elevating Personnel Management or to use the mare modern term, HAM to strategic Importance in the running of organisations. Basically, it sees management, faced with aver increasing ‘competition in the context af the glcbalization of the economy, forced to rethink the ‘sources of competitive advantage and to make strategic choices about fuure dlteationa, 1.2 PRINCIPLES UNDERLYING HUMAN RESOURCES MANAGEMENT The staring point of Hunan Resources Management 1s the recognition that people are not simply one of the factors of production like money er machinery but {he major source of competitive edvantage. How companies recruit, train, reward, motivate and discipline thir omployeos is of crucial importance to business success, ‘An impetiant corollary is that there has to bp a fundamental change in th traditional ‘methods of managing men. ‘A HRM philosophy emerges wherever pecple are perceived, not as a cost of ding business but as the only 1esource capable of turning inanimate factors of production into wealth, Peoplo provide tho soures of creative anergy in any direction ‘the organisation dictates and foste’s, HAM Which has a base in beliavioural scionces, ls concemed with the Induction and development of individual employees. and enhances the performance and froductiviy of the organisation. 8 Koith Sisson applies the term HRM in the most general sense to refer to the policies, procodures and processes involved in the management of people in work organisation. Sisson suggests that there are four main features increasingly assosiated with HAM, Sieson's Features of HRM (A stress on the integration of personnel policies with business planning, (i) The loous of responsibility for Personnel Management no longer resides with specialist managers but fs now assumed by senior ine management (ii) The foous shifts from managemant-trade union relations to management. employeo relations, from collectivism to individualism. (iv) There isa stross on commitment and tho exercise of initiave, with managers ‘now donning the role of ‘enabler’, “ompowored and ‘facilitator, “The first point suggests thai HRM is not only a strategie activly in ise, but one ‘hich is now central to the achievement of business objectives; the human resource Is now recognised and utilised as the most valuable ofall organisational assets. The ‘second point identifies the neec for personnel managers to ‘give away’ responsiblity, for the management of human assets to senior (ine) management. Features of Traditional Taylorist Methods = ‘There are three main featwes of the traditional Taylorist methods. The first is hierarchy in which there Is a separation of decision making from doing, and in which ‘the few at the top give orders to the many below. ‘The second is bureaucracy, 2, a system of explicit rules and procedures which are designed to achieve control and compliance of subordinates to the orders of those who command organisations. “The third Is specialisation in which functions, jobs and tasks are broken down and defined narrowly in the belief that this brings the greatest efficiency. ‘The traditional methods in tre present context are dysfunctional. The reasons are the changing context of business. In place of Taylorism, total quality management, kkaizen of continuous improvement and the direct participation of workforce is necessary. Principles of HR Approach Human Resources approach to managing people embodies the following three principles: [i) People are the most important resources an organisation has and managing’ them effectively is the key to organisational succes 9 (i) human resouree policies and procodures need to be closely linked with the achiovemenis of organisational objectives andi strategie plans; (i) the culture ofthe organisation needs to be one that values human resources and pervades the organisation rom top to bottom so that all members of the organisation work together with a shared purpose; all managers ate, thus, responsi for human resource management HRM is no longar the sole province of the personnel spools, i isa prioity for very manager who was line responsibly for sal ‘A major concer, which Is relevant for the developed European and American {economies isthe impact of ie “denographictime-boma" the substantial reduction in the numnber of young people coming inte the labour market over the next decade in ‘most developed countries. This has led te a netion thatthe labour marketin the future ‘may bea seller's rather than a buyers market with employees avan beingin a postion to choose thelr preferred employer rather than the ollier way round) In addtion, thore are preseures which are generated in product market. This Is equally relevant for developed and developing economies. Technology has also played part in bringing about a global economy. There is thus the emoryonce of 2 large number of multinational corporations which operate on a worldwide basis. ‘As ofthe global market place, wo developments are very important. Ones the iso ‘of manufacturers in ow labour-cost counties who are able to take advantage of modern technology and challenge the established procucar counties, Companies intractional producer counties cannot compete without taking redical measures. The second is ‘he Japanese companies’ growing dominenee of markets in such manufacturing industries as automobiles and electronics. In this case, it isnot cheap labour which has been critical but the suocessil use of "ean production” systems involving new ‘working methods, Yra/zen (continuous improvement) and the direct participation of ‘the workforce, The latter has meds it possible for Japanese Companios to Improve ‘Quality and reduce costs simultaneously by cuting out the layors of management and ‘contol systems necessary under ‘acitional Taylorst mothods. The remedy lies in switching from mass production to “flexible specialisation” which means geting much closer to the customer to establish his desires and introducing “total quality management” (TOM), designed to achiove continuous Improvement as well as reduction in cost, ‘The most important aim is tho development of a highly committed and adaptable workforce willing and ablo to lea now skills and take on new tasks, They include the elevation of the managomnt of people to the very highest levels of decision= ‘making inthe organisation and its integration Into the sirategc planning process an 10 omphasis on trust and respect rather than rules and procedures and a new role for managers-they become leaders whose job Is to facilitate cultural change by securing tho co-operation of others. There are three senses in which the tern HRM is being used. These are a reiting of Personnel Management, a reconceptualising and reorganising of personne} foles and a distinetivaly diferent and new approach to managing people. We accept the third view. HRM is new and there Is new approach to managing people in ‘which the line executives will play a key role. Armstrong's Principles of HRM According to Armstrong, HAM is based on four fundamental principles: () Human resources are an organisation's most important assets. (i) Personnel policies should make a major contribution to achieve corporate goals and strategic plans. (ii) Corporate culture exerts @ major influence on achieving excellence and must therefore be managed. (iv) Whilst integration of corporate resources is an important alm of HAM, it ‘must also be recognised that all organisations are pluralist socleties sn which people have differing interests and concems which they may well {fool the need 10 be defended collectively. ‘There are three aspects of HAM which are new. One isthe link between managing human resources and business strategy; 1 !s the state of competition wnioh 1s tequiring management to make changes. A second Is the’ Key role which senior line ‘managers are expected to play-managing human resources becomes their major aclvty. A third is the emphas's on the integration of policies and practices with each ‘other as woll as with business strategy. Versions of HRM. ‘There are two versions of HRM; a hard version and @ soft version, The hard version lays stress on the quantitative, celculative and business strategic aspects ‘of managing the headcounts resource in as rational a way as for any other economic factor. By contrast, tho soft version traces its reots to the human relations schcols; I emphasises communication, motivation and leadership. Both versions share the key elements of the new paradigm : that the organisations: ‘are under pressure to rethink their approach to managing People; that thay should be seeking a batter fit between their human resource strategies and business strategies and that they should change their practice. However, the two versions cliffer fundamentally in their viows on the direction that this transformation should ” take, The soft version involves a rengo of speaific policies and practices which ere ‘essentially people-contrad. The hard version admits anything that fits the business strategy. 1.3 hal RESOURCES IN THE CHANGING ENVIRON- Management scholars suggest that the enterprise of the future will be, it not completely unstructured, very loosely organised. It will be flexible, entrepreneurial, Innovative, boundaryless and a ‘earning organisation’. Sometimes the phrase ‘posimodem’ is used to deseribe such an organisation. The days of commanel-and- ‘control machine bureaucracies are numbered. ‘One strong pressure for this development has been the rise in the fixed costs of labour, due to rising labour cost rates and in some counties, groater employes protection through Goverriment legislation ‘Companies are therctore conceied to minimise the number of direct long-torn employees. Ways of doing this include the use of primary and secondary labour markets within the firm, employmant of people on short-term contracts, use of ‘agenoy staff, giving contracts to self-employed individuals (who may poform the ‘werk at home), sub-contracting work {o smal firms, This results In the ‘core-periphery’ ‘model organisation structur. Another pressure on firms to adopt the ‘oore-periphery’ structure may come from ‘technological developments. For example, in some high-technology industries, tasks fare 80 complex that there is much use of self-contained task units, Another technological development is the increased availabilty ot information technology, 1.4 HUMAN RESOURCES DEVELOPMENT DEPART- MENT AND ITS FUNCTIONS Organising the HRD Department. In management tha concept of Human Resources Development (HRD) was {formally introduced in 1969 by Prof. Len Nadler in America at American Society for Training and Development Conference, In India, Larsen and Tubro Ltd. was the fst to introduce this concept in 1975 ‘among private sector compaines with the object of faciitating growth of employees, 2 Among the Publo Sector Gevermant Comparies it was Sarat Heavy Elaticals Limitec which Intedueed this concept. Human Resources Management is more than furction of management Wis a piiloscphy whieh must be raflctodin the values, belies and activities of managers throughout the organisation. What Is HRD : At the organisational level, HRD may be defined to include the activities and processes underaken to promote tie intlectial, moral, peychologta, cultural, seclal and esonome development of the Individuals in an organsaion inorder to hep them to achieve highest human potential as a resource for the community HAD hap beon defined by Cattur as a system and process concemed wih an organised series of earning aces wihin spectied time iis, designed Wo produce behavioural changes in the leamer In such a way that it acquires desire level of competence for present or ftir reles. HAD is not a plocomee or & ono tine fexereae but is @ continuous process. Nowi-0-days HRD is considered as the key to higher productuty, belle relations © and greater prota for ary ongristin, Needless to say that peape In an organisation play a very crucial role. Homy Fore once sai: take out my bling, take cut my machines, teke out al capt but leave my men wih me and | wll become Henry Ferd aaain” Ine field of management sclenoes, 1960s and 1990s can be called the decades of compuiers aid HRD. It ls reoognised everywnere that human competency dayelopment is an essential precenaon for any development effort. Many organizations havo set up new department known as HAD Deparment, and others changed their Personnel Deparment into HRD depariment vinich emphasised the importance of pecpie's competency development HAD is nota set cf tecmriques but a process of helping people to acauite competencies aa slrency stated In the organisational context, HAD sa process by ‘which the employees of an organisation are helped in a continuous and planned way 10 (), acquire oF sharpen capabiiies required to perform varus functions of thelr present an futre roles; (i) develop hee genera apatites as indvduas an bring ott nner potenti for organisational development purposos, {i develop an organisatonal culture which i conducive to motvation and pride oF employees, and 18 (iv) HRD process is fectated by mochanisms like performance appraials, job rotation, training and careor development. People need competencies - knowledge, atiudes, values and skills to perform tasks. Without continuous development of competencies of people, an organisation ceannet achieve its goals. ‘There ere dlferent ways of strengthening the HAD function. Some of them are: {Using the existing Personnel Department. As HRD is an intogral part of Prsonnel function, there is no need fora separate HRD department. (SAIL) {i Strengthening the Personnel Department by equipping them with now ‘competencies (ii). Creating a new role for HRD managers or (i) Setting up HRD departments Tho HRD is a new concept and is gradually driving out the tracitional Personnel Managernent concept. It is not simply old wine in a new bottle but there are also conceptual diferences. HAD Is a holistic concept while taciional personne! functions were exclusively departmental, HRD is looked upon a5 a subsystom of a larger system. HRD has, haen widely aoveptod as ono of the most effective tools for effective developmont ofthe organisation, The traditional personnel function is the exclusive responsibility df the Personnel Department, but HIRD is the concem of all managers in the fotganisation, The success of HRD vill be attained when every employee sees himself ax @ develaner of his subortinates. HRD Funetions : In a small organisation, the proprietor performs all the functions. But as the ctganisation grows, delegation of duties is essential. He employs other people and legates some of his duties and responsibiltes to them. In this way he creates, ‘another level in his organisation. With the furher growth of an organisation, there is a need for greater specialisation of functions. To a small businessman, salary siruoture of his employees raquites no specialised krowiedge bul a big company omploying several thousand employees needs the assistance of a specialist to manage Wage and salary administration. In this way menegetial assistance of a specialised nature is required, Ths Is the orign of stat function’ separated from the “ine function” ‘The torm line Is used to Indicate tho fino of authority as with diferent ranks in the armed foros whore the line of authority is clear. In organisation theory, the word ‘tine’ usually refers to those functions which have direct responsibilty for ‘accomplishing the major ebjectives of the enterprise and the word ‘stat to those 14 functions that help the ine in accomplishing those objectives and are only indirectly {elated to the mejor objectives. [na manufacturing firm production, purchase and ‘sales are line-funetions and personnel, finana, accounting and research are staff functions. The distinction between line and staff is a means of determining who ‘makes decisions directly related to the altainmont of end results and who provides ‘advioe and service in making those decisions, Itis the funolion ofthe stat executives to saive the line executives, All managers are in @ sense human resources managers, since they all got involved in recruiting, interviewing, selecting, training, ole, Yat most firms also have a Personnel or Human Resources Department with its HRD managers, How are the duties of this manager related the Personnel Managernent dutios of other line managers in the firm ? Line managers are authorised to direct the work of subordinates - they aro always ‘someone's boss. In adeition, line managers are in charge of accomplishing the basic ‘goal in the organisation. On the other hand, staff managars are authorised to assist ‘and aduise line managers in accomplishing these basic goals In the organisation, ‘The det handling ofpeopie isan integral part of every ne manager's responsibilty, ‘As already sai, line managers may carry oul all the personnel management cuties lunassistod. But a8 the firm grows, they need the assistance of a specialised personnel (or HRD staff. The HRD Department provides this specialised assistance. In doing so. the HRD Manager cartles out thrae major functions as follows : () A tine tunctior The HAD personnel performs a ‘ine’ function by directing the actvitios of the People in his own department and in service areas, He exer line authority within ‘own HAD department, (ii) A Co-ordinative function : HRD executives also function as co-ordinators of the personne! activities, a duly Usually referred to as “functional control”. The HRD manager and his department at as th right arm of the top executive to assure him that personnel cbjectives, policies and procedures which have been adopted by the line organisation are boeing consistently carried out by line managers. (iil) Stalf (Servico) function + Service to line management is the “bread and butter" of the HRD manager's jab. HAD manager assists in hiring, fring, rewarding end evaluating employees at all levels and administers various wolfaro programmes. ‘The term ‘statt’ refers to the junction of a ‘stick or staff cartied by @ person for support. Thus the staff performs supporting role, It supports the line in its 18 poriormance. The objective of staff function is to help line executives by relieving thom of cortain specialized activities. While onthe overall organisation chart of a company, the HAD manager is a statiman to the est af the orgenisation, his relationship with his own subordinates in his department is aluays ‘ine’. Ho ranagos a department which may run as high fs hundred employoos and his managerial duties are as heavy as those of most fine managers. Like them, he is concerned with production, quality of work, planning, ‘organising and controling the etfors ct his epartment as wall as with the recruitment, selection and placement of people as his staff and their taining, leadership and motivation. Formal organisation refers to the manrier in which its personnel are grouped into different departments and clvisions. The different departments of an organisation ‘ean be formally s\ruetured in three major ways-by function, by division of by matrix struture, In the functional form, all personnel who can contribute to the performance of & specific funotian are clustered togethor. Under suc a system all personnel concerned with personne! administration are grouped together in the HRO department, all persons concamed with the marketing function are grouped together in the marketing dopartment and so on. ‘One important advantage ofthis functional form is that each function is performed by a spacialist. Owing to spacialiation, skis of employoos in a functional organisation’ can be mote effectively utlised, Fut tha omployaas have several bosses, co-ordination Js very difiall lo achieve and the organisation cannot opernic ao a total integrated ‘systom, The other way of grouping axganisatianal members is by divisionalisation. Here we aggregate all the specialste required fo produce a given product, if a company pptoduoas and sells four different products, it may set up four divisional centres, one {or each-produot. Within each division all the needed production, marketing, finance ‘and othier manpower services are assembled. Divisionaligation may be of different types. There may be divis‘onalisation by product of by territory, Advantage of divisionalisation is that here it is easy to compare performancas but It involves duplication of stall and unnecessary wastage. ‘An organisation's departments can be structured in the matrix form 1.6. Ctgenisational members aro placed under tvio bosses, ona boss will he the head Of the department to which the employees belong and the other boss will be the head of the project to which they are temporarily involved. Matrix form is alse known fs the “multiple command syster, In @ big enginnering firm, technical personnel of various dapariments are assigned to @ project. When this particular project 1s 18 ‘complete, they go back to thelr respective departments until the next assignment to another project is given. One great advantage of the matvix organisation or project organisation is thal specilized knowhow and skill is availablo to all projects (on an equal basis but it violates the traditional organisational principle of unity of command and fosters conflict. ‘The organisational structure of the Human Resources Deparment has @ pyran like shape with the HRD Maneger or HRD Director at the head. In many largo ‘organisations, the HRD Manager is also a Member of the Board, and would be dosignatod as HAD Direcior or Vice-Presient, HRD, Where he is not a Member of the Board, the appropriate designation would naturally by HRD Managor. Right below the HRD Managor thera is another lovel with personnel officers who will reper directly to the HRD Manager. HAD Manager or Vice President, HAD ‘Fesaarch Officer esonnel OFea] sonnel Ofer] ——_[Feronnat Oe Industrial Wage and Salary Recruitment Relations ‘Aiton Peters Trang Figuo 4 The figure above incites tht the 1op HAD Manager delagates the performance of certain {unctions to personnel oticers, The number of visions depend upon the ‘xian of the activites which vary from company to company. Within the Personnel Deparment, the HRD Manager has tine authority over all tho personne! officers Under him. Within the department isll there is @ Raseareh Olfieer who performs 2 staff function with regard to the HAD or Personne! Department. Thus within the Personnel Department, which performs stati function in relation with other ddopartiments in the organisation there can be both ine and statf authonty. HRD-A Professional Innovation : HAD is nota mere theoretical concept tis a protessional innovation necessitated by the exigencies of the situation, fueled by human idealism, supported by a growing knowledge about hhumen systems and chiseled by plonaering practitioners. w Since 1980 "High Pertormance Work Systems” has bacome increasingly popular In this changing context, total human resource management, the holistic approach: and not the partial Personnel Menagement would be relevant. Desoribing people as a ‘resourcs’ isa relatively recent practice in India. it uncerines the fact that people are as important as other resources. Managers and workers ‘together represent the human resources of an organisation. Personnel Bepariment in any organisation should have a policy, planning and research role in addition to providing personnel services such as recruiting, information and guidance to line managers on matters such as industrial relations This contrasts with Drucker's criticism of the:personnel functions that the work of the Personnel Department consisted of partly a file cleri’s job, and partly fire {fighting to hoad off union trouble or to sate it Last but not least, the personel function has a key role in facilating change. ‘This is because most organisations today must change in order to survive. Change hhas mainly to do with people. Many cf the Industrial problems which we face today. have to deal with change-changes of values, changos in methods of working, Introduction of new technology, changos in perosived cateer patterns and adaptation {0 external social values and expectation in the country. ‘There are two conceptual limitations of HAM : First, rather than a general theory ‘of employee management, HAM is more appropriately viewed as an umbrella term for @ series uf pravlivus ait have come to prominence during the past decade, Second, as simply a set of practices, HAM does rot represent a conceptual "took Kit for the analysis of the more fundamental issues of mangementsuorker relations; Issues of power, control, conflict, consent and dependence. HRM is the latest ‘management response to these issues, not an explanation of them. 1.5 STAGES IN THE EVOLUTION OF HUMAN RESOURCES MANAGEMENT ‘The development and evolution of the practice and solence of HAM has gone through a number of stages beginning prior to the Industrial Revolution in Britain ‘and continuing upto the present, STAGE 1 ; PRE-INDUSTRIAL ERA ‘The frst stage isthe pre-industral era, beginning around 1400 A. D. and continuing Until the late 1700s. While the presindustria| period is characterised by an absence 18 ‘of any formal HFM function within organisations, several dramatic chenges occurred ‘during this first stage thal represent seeds from which modem HAM lator grow. Firstly, there was a concessation af feudalism, release of labour trom land and the beginning of the free employment relationship on which modem labour markets are based. ‘Secondly, there was a shift from subsistence agriculture to @ cornmercial mixed economy, the tise of urban economy, a diffusion of economic control and the distribution of woalth and income. Thirdly, there was a spectacular growth of towns and villages along with the rise (of middle class that included skiled crafjsmen and merchants who were the forerunners of factory owners. Fourthly, domestic or putting out system was developed as a result of which crattsmen increasingly came under the service of merchants who served as ‘middlomen. STAGE II : INDUSTRIAL REVOLUTION AND THE FACTORY SYSTEM ‘The Industrial Revolution bagan in Britain in the late 18th Century, in USA tn the {oth century and in India in the second half of the 20th century. Industialization completely changed the way paopl9 earned thoir living. It was mado possible by the ‘eplacemant of human effort and skill by the work of machines. One of the contributions of the Industrial Revolution was the development of the: “factory” system. The factory was central to the proves in 19th century industrializtion and to the development of the practice of HRM. Factories were places of production based on wage labour and fixed capital. Factories greatly expanded production and created a nev class of workers and managers. ‘The factory system brought about many changes in the organisation of industry It displaced the selfempioymert household and handicraft. The factory brought together many workers who no longer could own the tools of production and had no ether way to eam a livelihood. The factory system gave birth to a rationalisation Cf work and a division of work. Another change brought about by the fectory system was the necessity of supervising large number of workers. With the advent of the factory system personnel practices became autocratic, based upcn a commodity concept of labour. Labour was purchased at terms designed to raximise the employer's profits. Consequently, there was a total neglect of the human factor - the focus was yon materials, marksts and production. 19 The factory owner delegated management responsibilities to the foreman or fitst= lino supervisor. The foreman was responsible for successfully running the entire factory. The control of workers by the foreman usually took the form of the drive system of management thal was characterized by the use of force and foar. STAGE MM; EMERGENCE OF THE MODERN CORPORATION AND MANAGERIAL CAPITALISM From 1860 to the tum of the century, there was @ period of dramatic industria! growth and organisational restructuring in UK, that set the stage for the emergence of the modem HAM practice. This period witnessed a fundamental transformation of employment from being primarily agricultural to industrial, ftom small scale employing craitsmen to large scale omploying semi-skilled operators. During this ‘time, the modem business enterprise along with managerial capitalism emerged. The period witnassed a growth in the corporate form of organisation, the separation of the operation frbri the ownership of firms and the employment of salaried rnangers. Inspite of organisational growth and technological changes during the second, halt of the 19th century, there was no commonsurate improvement inhuman resources manayement. Tho foous of attention in the factory was mainly on improvement in technology of production and not on improvement of human methods ‘of work, Labour continued to be viewed as a commodily. The traditional factory management practicas continued which were responsible for low productivity and wages, extremely high rates of tumover and afi.increage in the labour and ‘management conflict. Ine development of HRM during the 2oth century included a primery industrial relations component which management would use to operate in the collective bargaining framowot. STAGE IV : SCIENTIFIC MANAGEMENT, WELFARE WORK AND INDUSTRIAL PSYCHOLOGY Scientific Management (SM!) and Welfare Work represent two separate and concurrent movements that began in the 19th contury and along with contributlans {rom Industrial psychology, mergod around the tIme of World War | ta form the fiele of HRM. Scientific Management and Welfare Work were both responses by ‘management to worker-telated problems in the factory. SM represented an effort to deal with iabour and management inetticiencies through reorganisation of production ‘methods and rationalisation of work. Welfare Work represented efforts to deal with labour problems by improving worker conditions, Indusitial psychology represented the application of psychological principles towards ineroasing the efficiency of industrial workers. 20 During the last quarter of the 18th century, professional mechanical engineers emerged as important providers of technical assistance for machine production. Out of their ranks came a number of engineers who introduced dramatic changes that rationalised factory production and industrial management systems. These engineors looked at the traditional factory system with autocratic management and unsystematised methods of work @s outdated, inafficient and incompatible with mote modern plants. Along with rationalising production processes, they introduced various personnel practices to rationalise employment procedures. FW. Taylor’s Scientific Management: It was F. W. Taylor who was the father of scientic management. Taylor was cconcemed with worker ineficlenoy and the need for managers to goin the cooperative effort of the employees. He stucied the elements of jobs, eliminating unnecessary motions and tiring the tasks, in an effort to discover the ‘one hest way" and the fastest time in which a worker could perform a particular task. Time and Motion study beoame the heart of SM and represented a way of accurately determining the amount of work @ man could do ‘Taylor declared that SM constituted a complete change in the mental atituds of workers and managers and he sums up SM as () Science, not the rule of thumb; (i) harmony, not discord (il). 66 operation, not individuntiom and (iv) maximum output, in piace of restricted ouput. ‘Taylor stated what the workmen want from their employers is high wages, and ‘what employers want froin their workmen is a low labour cost of manufacture, He pointed out that workers and managers have similar intorests and mutual benofits from increased production and argued that the application of SM represented a partial solution of the labour problem because It would increase production at lower ost to employers end would result in higher wages for the workers singe each ‘worker would be compensates) according to his output. ‘SM represented new attitude towards management and Taylor's work contributed Greatly to the formation and specialisation of management, Taylor argued that ‘management actualy 1s true science resting upon clearly defined laws, rules and principles, Taylor proposed fricional management as part of SM. Functional management delogated the trackional foreman's managerial responsibilties to eight separate employoes who wore specials at their functions, The purpose of functional management was to enable proper management of the employee by the separation at Cf the planning of work from its execution and the substitution of individual judgement in the rules and principles. Contributions of SMI to HRM SM contributed fo the practice of HRM In many ways. Firstly, Taylor's proposal for functional management called attention to the need for a separate human resources function in organisations. ‘Secondly, Taylor demonstyated the feasitiliy of job analysis as a basis for employee ‘selestion, training, job evaluation and compensation, ‘Thirdly, Taylor demonstrated that work and jobs can be systematically studied, ‘analysed, redesigned or improved upon, Fourthiy,, Taylor stressed tho importance of proper selection procedures and training methods. Fithly, Taylor advanced the idea of cifferential pay on the basis of praduativiy. Lastly, Taylor highlighted the need of workers to be won over and led by management. Limitations of SM : Inspite of its contributions, SM has several limitations ‘SM has an excessive engineering bias on the job to the neglect of the worker. IW looked upon the worker as a machine who could adap! to the job and saw no heed to incorporate human factors in its system. ‘Secondly, SM considered the Worker as an “economic man” who is exolusively ‘motivated to maximise his economic gain and therafore, neglected the basic social ‘and psychological drives of employees. Lastly, SM represented a form of industlal autocracy and control by management ‘over thie warkers. Management did all the planning of Work and workers were simply. to say ‘yos! to the Instructions. Weltare Work: Efforts were made in the 19ih and early 20th conturios to improve the working Concitions of factory workers. The welfare work movement became wieespraad during this period. Welfare Woik, ke SM, was an attempt ata more systematic ‘approach to labour problems. It has boon defined as anything done for the comfort and improvement, intellootual o- soci, of the employees, over and above wages paid, which is not a necessity of the industry, nor requifed by law. The primary purposes of welfare work Included 22 (the averting of industrial conflict and unionisation, (i, the promotion of good management and worker relations, (ii) the efforts to increase worker productivity and reduce tumover. Around 1900 A.D., some industries in USA hired wellara secretaries to administer wollare programmes. Industrial Psychology ‘Along with SM and wolfare work, Industrial paychology also contributed to the field of HRI. Whereas SM focused on the job, Industrial psychology focused on the ‘worker and individual differences. The objective of Industrial psychology was to incroase human efficiency by focussing on the maximum well-being of the worker and decreasing the physiological and psychological costs ot work. Industrial psychology began in 1813 when Hugo Munsterberg published Psychology and Industrial Efficiency (1949), Munsterberg drew attention to the contributions that psychology could provide in the areas of employment testing, selection, training, efficiency and motivation. William Gilbreth, a contemporary psychologist, sought to integrate psychology with scientific management by incorporating individuality in the selection study and motivation of employes. STAGE V : WORLD WAR | AND THE EMERGENCE OF HAM AS A PROFESSION World war | provided conditions that rasuited in the widespread recognition by business, of the need for HRM and the emergence of the field as a profession. The war brought attention to the need for ‘ecientiic personnel administration’ and ccentralising, under a personnel drector, activities promoting the welfare and etticlency of workers. At the close of the war, the Personnel Management Department had emerged as a primary function, taking its place alongside the financial, production ‘and sales departments in many organisations, The effect of the war on HAM was dramatic, () First, during this time there was a widespread labour shortage/L abour tumover increased drarraticaly as a result ofthe increase in job opportunities, for workers, (i) Second, the labour shertage accompanied by a rapid rise in wages and an increased demand for wartime production, ereated a need for employers to ‘more efficiently utlize the workers that they were able to procure, Business responded to the labour shortage, tumover and labour relations problems by widely embracing PM practices. This was evident in that, @ substantial number 23 ‘of industrial firms in UK and USA established Personnel Departments between 1915 and 1920. Firms adopted ‘unctional management which removed the hiring ‘and firing functions from the foreman and placod them in the hands ot employment ‘of Pereonno! Departments. In addition to contralizing hiring, there was an integration ‘of former unsystematized HRM activities such as, welfare work, job standardisation ‘and time study under the supenision of one executive who came to be knovm as the Personnel Manager, The year 1918 recorded the bith of a new profession- Personnel Management. Following World war | and continuing up until the lest decade, Personnel Management or Personnel Administration wero used ae the labels for the practice of HAM. The recent widespread adoption of the term “Human Resources: Management’ by both academics and business organisations In place of Personnel Management, retlects an increasod realleation of the Importance of the human clement in organisations, STAGE VI :THE HUMAN RELATIONS MOVEMENT. The early focus of the HRM profession was “human relations’. The human relations ‘movernent was associated with the name of Elton Mayo and Fritz Roethlisberger. Human relations incorporated the’ human factor into SM.This human relations effort retlected the symbiotic combination of SM, welfare work and elements of Industrial Psychology in the personnel profession. The emphasis was on increasing productivity through discovering the needs of workers, the proper way of managing people ane Increasing productivity. Personnel managers in general, believed that conflict wes not inherent in labour relations, but was an indication of poor management and could be corrected by Proper worker managomont techniques. Asa result of he Hanthome experiments, the human relations movement began around 1945 and continued until the early 1960s when it was absorbed into the new discipline of organisational behaviour. Under human ralations, the manager hecane ‘responsible for integrating emplayees into the work situation in a way that would motivate them to work together co-operatively and productively and for assisting ‘employeos 10 experience economic, psychological and social satisfaction. MANAGEMENT AND ADMINISTRATION : Thote js lack of unanimity areng whters over the meaning and use of the words ‘management’ and ‘administration’ According to one group of writers, Sheldon, Spriegel, and Milward, administration involves ‘thinking’ It is @ top level function which centres around the determination 24 of plans, policies and objectives of a business enterprise. On the other hand, management involves ‘doing’. Itis a lowor level function which is concemed with the ‘execution and direction of policies and operations, Accordingly, at the top level, administration is more Important and as one moves down in the organisation, management becomes more. important. ‘According to the second view (expressed by .F L. Brech and others), management is a comprehensive generic term which includes administration. E.F-L. Brech regards management as a comprehensive generic function embracing the entire process of penning, organising, directing and controling. Administration, according to him, is ‘only 8 branch of management which encompasses two of ils furcions-planning and. ‘control: According to this view, che functions of management can be divided into two ‘categories : (a) administrative management and (b} operative management. The upper level of management is usually called administrative management and the Jawer lovol is known as operalive management. Aonording to another view expressed by Peter Drucker, the basic differance between management and administration tis in tho uso of these words in different fivids, The governance of non-business insttutions (such as Government, army, church, etc.) is generally celled administration, while the governance of busiess enterprises is called managernent, This being $9, economic performance becomes the chief dimension of managoment. A maniayer of a business enterprise must always, in every deoision and action put evonomic consoquences first. On the other hand, in governing non-business institulions, the economic consequences of decisions: are only seconciery for an administrator. For example, the chiot of staff of a military ‘organisation has to put military securly first and economic considerations next, This cifference of emphases in the governance of these two types of organisations js the teason why successful administrators sometimes fall as managers and vice versa. Public Administration - What is it ? = What Is public administration ? Vory simply stated, itis service for the people rendered by an organisation of people callad ‘Government’ whose main objective oF raison d'etre is ‘service.’ For ancing the service thus glven, the Government has to raise resources through collection of revenue from the people through taxes and duties. Ite alm Isto tako from those who have income and to distribute it equitably through services. Land revenue which constituted the major source of income for the Government until rocont times, particularly during the British period, [s supplemented by various methods and modes of taxation at the national, State and focal levels. 25 From Public Administration to Management: Many people wonder if public administration is the eame as management. As long as there are objectives and these are sought to be achieved through optimisation, that is with least cost and minimum tima, they can be considered, in principle, to be two sides of the same coin. But in the interpretation of optimisation or mayimisation, quite often the Government citters from private management, The Goverment is preaccupled with social gain and progress which may not be measurable but which is important from tho point of view of development and wellare’ot the people and for a good society. This cannot be equated with the priority of private enterprise whose survival depends on the balance of material profit and loss. ‘One cannot divorce public administration from the political context Its through the arrangement of the pollical executive, assisted by the administrative executive ‘or Giull Service that people's wl is translated or transcribed into action. The supremacy of:the legislature over tho excoutive la best ilusttated by the process by ‘Which public expenditure estimates have to bo presented to it and voted before any expenditure by the Government is considered legal or regular, The most important principle Is that the Government and its administrative agencies can act only within ‘the framework of powers granted by the Constiution. No one Is above the law, and Its by Rule cf Law that everyone, including the public administrator, is governed. ‘These reasons put public administration an a diffarant feeting from private enterprise and business management. Publicadministrators have to ensure that processes are {air and impartial, sometimes even at the cost of speed and quality of results, Parsons similarly placed must get similar treatment or benefits, Indeed, in business ‘management, ‘discrimination’ is necessary for achlevernent, Work atic, therefore, differs in these sectors. The difference also points to what should be done by the Goverment and what is best lell to private enterpriae. 26 UNIT : 2 WOMEN AS HUMAN RESOURCE Structure 2.1 Women and Work 2.2 Women and the International Labour Organisation (ILO) 2.3 Women and Publle Employment in India 24 Utilisation of Human Resources 2.1 WOMEN AND WORK ‘Sharing of economic activity by women is neither a nev phenomenon nor a new development, The magnitude of their involvement, however, is correlative to socio. ‘sconomic and poltical-conditions prevalent in a country. From time immemorial, Women in india have been working both in the active economic fleld and at homes though not in the strict sense of eaming wages. With the change in tho outlook, attitudes and approach towards living, it has now become necessary largely for the {families with inadequate incomes to supplement their requirements through adltional fearnings. Women can fil this gap, and, breaking social conventions and religous taboos, they have come fonvard to meet the challenge enthusiastically. This Is, no doubt, @ healthy development. However, in a country lke India, the processes of development are bound to be a litle slow due to the prevailing literacy among women. In India, the right of women to public employment is recognised under the Constitution, Articlas 16(1) and 16(2) of tho Constitution grant the right of equal ‘opportunities in regard to employment to men and women without any distinction ‘The bulk of women workors have been engaged in agriculture and allied activities. But then, with the spread of education, particularly in urban areas, new vistas of employment opportunities for women in commercial, clerical and administrative work have opened up. While gencrally conceding that, wages of women workers have been lower than those-of men, the differences have tendod to narrow down mainly ‘cue to standardisation of wages for aifferent jobs. Equality of women Is one cf the important principles of democracy and of respect ‘of human rights as also one of the most important conditions of social progress. The LUN Resolution mentions that the struggle of women against discrimination towards them with regard to their right to work and remuneration must be supported. 2 ‘The social reforms initiated in tne earlier pait of the 10th century gained add force and momentum in the wake of the struggle for freedom, The emancipation of ‘wornen was undoublediy a major cart of tho programme of sosial reforms under the Inspiration of Mahatma Gandhi. Thus, the struggla for pollical freedom started drawing women along with men. With the advent of Independence tho spade work {or a solid foundation for the role jhat women are expected to play wes laid down, In ancient India, particularly during the Vedic ago, women enjoyed high status at home as well as outside, Unfortunately, over the centuries, women gradually lost their original position. With the adoption of certain evil social practices ik the Purdah system, practice of Sati, child mariage, polyandry, ete. the position of women in India was considerably whittied. in the beginning of the 19th century efforts were made to improvo the position of women and to eradicate the evit social ‘customs forced on them. n the eaily days of induetvalisation, women folk belonging to the lower strata of the society sought employment in the plantations, factories, and mines which had a strong tural base. Sheer economic necessity puished them into the factories. in agriculture, wornen have been traditionally working shoulder lo shoulder with men. Gone are the days wiven employment of women in any kind of ‘occupation other than their own homes was looked upon with disfavour. Today, we ‘ind women employed almost in every field, staging an uphill struggle fer their rights ‘and working with enormous zeal for the dovolopment of the country along with the men. The future holds immense possibilty for the employment of wonten, ‘Tho United Nations has been working for the advancement of women since its very inespltion. Besides, the Charter of Unitod Natlone and the Univetsel Declaration (of Human’ Rights for Safeguarding Interest of Women in 1946, the United Nations constituted a Commission on the Status of Women followed by several Conventions and Resolutions like the Equal Reniuneration Convention 1951, Convention on the Political Rights of Women, 1952, International Covenants of Economic, Social and ‘Cultural Rights and Social and Poltical Rights; the Discrimination (employment anil ‘occupation) Convention 1958, the General Assombly's Declaration of Elimination of Discrimination against women in 1987 ete. Despite these provisions and notwithstanding the progress made during the last two decades, a considerable gap) stil persists all over the world in the sogial and ecanomio, political and cultural life of women, and itis being increasngly realised that discrimination against women is incompatible with human dignity and vith the weltare of the family and sorely. ‘The labour legislation in India fas boon designed in such a manner as to protact women and children from undue exploitation, But, law itself cannot offer protection unless there is a sonse of awareness of its existence among the Workers. In this, direction, education of women recuires to bo given top most priority so that they may not only become conscious of their rights and responsbillies but also take advantage of the statutory privileges. 28 It wil be pertinent to: mention the recommendations mace by the National Commission-on Labour regarting employment of women ele, which are as follows: Recommendation No. 215 : The right of a woman to employment should in 90 ‘way be considered subordinate or secondary 10 that of a man. The necessary training facilities should be creatediaugmented; vocational guidence programmes wil serve a useful purpose in giving required information to women. It will be dosirable to give preference to women for traning in those trades and occupations for which they have special apitude. Recommendation No..216 : Implamentation of the principle of equal pay for equal work should be more satisfactory than at present. Recommendation No. 217(h): Women will have to be absorbed more and more in skiled categories of work to make their employment mote economic to their ‘employer (8) With proper skill generation and rational distribution of women labour force ls a part of social and economic planning, it should be possible for an employer to follow a non-discriminatory policy in employing women. 2.2 WOMEN AND THE INTERNATIONAL LABOUR ORGANISATION (ILO) Baoioally, the ILO is an ageney for the bettorment of tho conditions of labour, by such means as the regulation of the hours of work, the regulation of labour supply, the prevention ef unemployment, the provioion of an adoquato living wage, the protection of the worker against sickness, disease and injury arising out of his employment, provision for old age and injury, etc. Inthe Preamble to the Constitution of the ILO, the protection of women, children and young persons has been @ special responsibilty of the ILO, ever since it came into existence, ‘Aimost all th 140 Conventions and the 148 Recommendations which make up the 1LO's Internetional Labour Gade show concem as much to women as to man workers. The Intemational Labour Conference has adopted a number of Canventions land Recommendations which apply:to women. These instruments are of two main |ypae-promotional and protective, The promotional instruments are aimed at primey ‘overcoming economic and socal discrimination against women in mailers of work. ‘The protective standards are concemed with providing thiem the special protection: they require beoause of thelr bological and sacial function of matamiy. In addition, there are some Conventions and Recommendations which apply generally to all workers but contain special provisions concerning women workers. 29 NON-DISCRIMINATION AGAINST WOMEN AND OCCUPATION : The principle of non-dserimination is expressed in a numbor of ILO instruments, “Thus, the Discrimination (Employment and Occupation) Convention (No. 111), which ‘was adopted by the Conference in 1958 lays down the pricipla of non-ciscrimination in employment and occupation on the ground of sex. It cals expressly for tho ddociaration of a national poiey of non-

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