You are on page 1of 21

EVOLUTION OF HRM

There is no magic in the success of companies. The secret of their success is simply the way that treat their employees
Akio Morita Founder, Sony Corporation

OF HRM EVOLUTION

HR HISTORY
Hiring & Firing Unions emerged: Labour relations specialists Welfare Subspecialties as :

Staffing /Training/Compensation/Appraisal System


Late 70s HR professionals mastered the activities of

Staffing, Development, Appraisals & Rewards.


By 1980s organizational design and communication, got added

OF HRM EVOLUTION

HOW IS PM DIFFERENT FROM HRM


Personnel Management and HRM differ in scope
PM is viewed as a tool. The behavior of which could be manipulated for the benefit of the organization and replaced when it is worn out. It was a routine activity meant to hire new employees and to maintain personal records. It was never considered as a strategic management of business.

HRM would view people as an important source or asset to be used for the benefit of the organization , employees and society.

OF HRM

HOW IS PM DIFFERENT FROM HRM


PERSONNEL FUNCTION Maintenance oriented Orientation An independent function with independent subfunctions Reactive, responding to events when they occur Exclusive responsibility of personnel department Emphasis on monetary rewards Improved performance is a result of improved satisfaction & morale Tries to improve the efficiency of people & administration Consists of inter-dependant parts Structure Philosophy Responsibility Motivators Outcomes Aims Emphasis on higher order needs eg. Empowering people Better use of human resources leads to improved satisfaction & morale Tries to develop the organisation as a whole & its culture Proactive, trying to anticipate & get ready with appropriate responses Responsibility of all managers in the organisaiton POINTS OF DISCUSSION Development oriented HRM

EVOLUTION

OF HRM

ESSENTIALS IN THE DEFINITION OF HRM


It is people who staff the organization and manage organizations
HRM involves application of management functions and principals. Functions and principals are applied to acquisitioning, developing , maintaining and remunerating employees Decisions on different aspects of employees must be consistent with other decisions on HR Decisions made must influence the effectiveness of the organization, i.e. it should result in betterment of services to customers or productivity

EVOLUTION

OF HRM EVOLUTION

DEFINITIONS OF HRM

HRM is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organization and the employees to achieve their objective.

HRM is concerned with the people dimension in management. Since every organization is made up of people , acquiring their services, developing their skills , motivating them to higher levels of performance and ensuring that they continue to maintain their commitments to the organization are essential to achieving organizational objectives.

EVOLUTION

OF HRM

DEFINITIONS OF HRM

HRM is management in planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social responsibilities are accomplished.

OF HRM EVOLUTION

MANAGERIAL FUNCTIONS OF HRM


Planning: Determination in advance of a personal program that will contribute to goals established for the enterprise Organising : This is required to carry out the plans. Designing the structure of relationships among jobs , personnel and physical factors. Directing : Before the action is started direction is necessary; this may be in the form of motivation actuation or command .This is to get people to work willingly and effectively Controlling: Observation of action and its comparison with plans and correction of any deviation that may occur at any time.

OF HRM EVOLUTION

OPERATIVE FUNCTIONS OF HRM


Procurement: Obtaining proper kind and number of personnel necessary to accomplish organizational goals Development: Increasing the skill through training that is necessary for proper job performance Compensation: Adequate and equitable remuneration of personnel for their contribution to organization objectives. Integration : It is concerned with a reasonable reconciliation of individual , societal and organizational interests . Maintenance: Maintenance is concerned with the continuation of this state , this is heavily effected by communication with employees. Separation : Separations and return of that person to society. Could be retirement , lay off , out-placements and discharge

OF HRM EVOLUTION

THE HUMAN RESOURCE CYCLE


HRM Concept Michigan School

Rewards

Selection

Performance Management

Performance

Development

1. Selection: 2. Appraisal: 3. Rewards:

Matching available human resources to jobs Performance management It must reward short as well as long-term achievements Developing high quality employees

4. Development:

OF HRM EVOLUTION

THE HARVARD FRAMEWORK FOR HRM

Stakeholder Interests Shareholders Management Employee groups Government Community

Situational factors Workforce characteristics Business strategy and conditions Management philosophy Labour market Unions Tasks technology Law & societal values

HRM policies Employee influence Human resource flow Reward systems Work systems

HRM outcomes Commitment Competence Congruence Cost effectiveness

Long-term consequences Individual wellbeing Organizational effectiveness Societal wellbeing

OF HRM

THE 5-P MODEL OF STRETEGIC HRM


Organization Strategy

EVOLUTION

Internal Characteristics

External Characteristics

Strategic business needs

Strategic Human Resources Management Activities Human Resources Philosophy - Expresses how to treat and value people Human Resources Policies - Guidelines for action on people related business and HR programs Human Resources Programs - Help to address and change major people related business issues Human Resources Practices - Motivates needed role behavior Human Resources Processes - Defines how these activities are carried out

OF HRM EVOLUTION

HUMAN RESOURCE WHEELS


The American Society for Training & Development (ASTD) has developed a Human Resource Wheel in 1983 highlighting different functions of HRM leading to quality of work life, productivity and readiness for change.

Employee assistance

Union/ Labor relations T& D

Compensation/ Benefits Personnel research and information systems

HR areas output: Quality of work life Productivity readiness for change

Organization/ Job design

HRP Selection and staffing

OF HRM

HUMAN RESOURCE WHEELS


T & D focus Identifying, assessing and through planned learning---helping develop the key competencies which enable individuals to perform current or future jobs.

EVOLUTION

OD focus Assuring healthy inter- and inter-personal relationships and helping groups initiate and manage change.

Organization/Job design focus Defining how tasks, authority and systems will be organized and integrated across organization units and in individual jobs.

HRP focus Determining the organizations major HR needs strategies and philosophies.

OF HRM

HUMAN RESOURCE WHEELS


Selection and staffing Matching people and their career needs and capabilities with jobs and career paths. Personnel research and information systems Assuring a personal information base. Compensation/Benefits focus Assuring compensation and benefits fairness and consistency. Employee assistance focus Providing counseling to individual employees, for personal problem-solving. Union/Labour relations focus Assuring healthy union/organization relationships.

EVOLUTION

Nature of HRM

THE
HRM MODEL

Human Resource Planning Job analysis Recruitment Selection Placement Training &development Environment Remuneration Motivation

Participative Management
Communication Safety, health & Welfare Promotions etc.

Competent & Willing work force

Industrial relations
Trade Unionism Disputes & their settlement International HRM

Organisational Goals

Ethical issues in HRM

OF HRM EVOLUTION

HUMAN RESOURCE FUNCTIONS


Forecasting the human resource requirements necessary for the organization to achieve its objective both in terms of number of employees and skills. Developing and implementing a plan to meet the manpower requirements.

Carrying out job analysis to establish the specific requirements for individual jobs within an organization.
Recruiting and selecting personnel to fill specific jobs within an organization. Designing systems for appraising the performance of individuals. Orienting and training employees. Designing and implementing management and organizational development programmes.

OF HRM EVOLUTION

HUMAN RESOURCE FUNCTIONS


Designing and implementing compensation system for all employee and have systems for promotions and transfer

Assisting employees in developing career plans.

Employee communication , personal counseling, personal research etc

Departmental administration programs Planning, record keeping, reporting ,policy formulation , and general administration.

Implement activities to ensure proper health and sanitation and safe work place
Adherence to Government norms and regulations

OF HRM

CHALLENGES FACED BY HRM


Globalization

EVOLUTION

Build value chain for business competitiveness


Profitable through cost and growth

Capability Focus
Change Technology Attracting and retaining intellectual capital

OF HRM EVOLUTION

CONCLUSION
Organizations are now defined as : The core competencies within the organization The people within the organization The organizational culture or shared values and knowledge or learning. The HR systems needs to be retained and constantly upgraded and changed: People will always need to be hired and trained Process will always need to be created and upgraded Cultures will always need to be established and transformed. HR practices must

Be aligned to business realities, meeting deadlines , making profits, leveraging technology, satisfying investors and to serving customers ,.

HRM is to create organizational capabilities that will lead to competitiveness