-EVOLUTION OF HRM

-DIFFERENCE BETWEEN PERSONNEL MANAGEMENT

AND HRM

UNIT - 1
EVOLUTION
 Since the ancient times with the development
and conception of group, with the
development of various means of livelihood
the importance of work force were felt.
 Growth of HRM can be summed up in three
important stages;
 1: LABOUR WELFARE STAGE
 2: PERSONNEL MANAGEMENT STAGE
 3: HUMAN RESOURCE STAGE
 LABOUR WELFARE STAGE :During ancient times the
production of goods were mainly by skilled
craftsmen.They themselves owned the tools &
instruments.produced articles and sold these in the
market. Employers managed their employees
themselves and with the help of the family members.
 During the slavery period manpower were considered
to be as slave. They could be sold and purchased as
commodities. The purchasers of the slave had a
control over them.
 …..cont..
 The masters of the slave took variety of
work from them such as carrying heavy
loads .on the part of the remuneration
they were paid in the form of
food,clothing ,shelter.
 They were subjected to strict
supervision and non-compliance of the
orders were punishable with physical
tortures.
 During the 19th century with the
Industrial development ,the rapid
growth of factories, large scale
production the demand of labour from
different categories increased. The
insufficiency of supply of labour made
the employers to advance a lucrative
amount of money to the workers and of
entering into agreement to work with
them for a stipulated period of time.
 Management of indentured(bound) labour was
different from that of slaves and serfs.The
labourers were abided by the terms and
conditions so long as they remained with them.
breaking of the contract was a punishable
offence.The labourers had to face several
problems such as low wages, excessive hours of
work, hazardous physical working conditions and
job insecurity. These all resulted into organising
of labourers for improving their conditions.
2.PERSONNEL MANAGEMENT STAGE
 With the intervention by the government to provide basic rights
and protection of workers and need to comply with statutory
regulations resulted to set up a formal mechanism to look into
worker’s wages and welfare by factory owners. This led to the
emergence of personnel management .
 It was primarily concerned with :
 -employee record keeping
 -adherence to the stated policies such as recruitment, training and
development , wage administration
 -enforcement of scientific management approach
 -Dealing with trade unions and trying to solve industrial disputes
through collective bargaining
 -conducting performance appraisal to determine pay and
promotions.
HUMAN RESOURCE MANAGEMENT STAGE
 With Industrial revolution and rapid growth of
factories, with the increased rate of literacy raised the
importance of human resources.Now the human
resources are considered as an asset and valuable
source.
 HRM is a mix of labour welfare and Personnel aspect.It
aims at maximising employee performance in
accordance with the objectives set by an organisation.
It attempts to build worker –employees relationship
more humanely through motivation,training and
development ,retention,workers protection etc.
 CHANGES THAT INFLUENCED
 -Encouragement of innovation and
creativity.
 -Performance and talent management
 -Stress on total quality management
 -Motivation through work experience
 Several theories were given by different scholars time to
time in the 20th century that were focused on the human
aspect of the organisation.Important are
 -Scientific management theory- emphasised on
maximum production through the scientific manner.
 -Behavioural theory –given by prof. Elton Mayo and
companions .stressed upon the behaviour and social
needs of employees.
 -Systems and contingency theory- given by Gareth
Morgan,Joan Woodward .They suggesed organisation is a
system and consists of several sub-systems. Every sub
system is interconnected.
 After 1950s till modern times period is considered to be
the modern developments of HRM. It is the period of
citizenship concept of labour where labours have full
right to be consulted in determining the rules and
regulations.
 In modern times HRM is widely accepted as an
independent discipline.
 1960s are considered to be as a behavioural science
where human elements and organisational behaviour
are prioritized.
 In modern times HRM is fully recognised as a profession
dealing with the management of human resource.
 We may sum up as human resource
management is the management of the
human factor.Management in terms of
development,retention, performance
appraisal,wefare, protection of rghts.
etc