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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

Introduction to Management
j Management is the process of designing and

maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. j Management can be defined as ensuring an organization makes the most effective and efficient use of resources in order to achieve agreed objectives. j The process of getting things done, effectively and efficiently, through and with other people

j Organization A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizationsfor-profit as well as not-for-profit organizations. Where managers work (manage).
Common Characteristics of Organizations

Management Activities
Defining goals and establishing action plans

Determining what needs to be done, in what order, and by whom

Effective Management
Monitoring activities to ensure that they are achieving results

Guiding and motivating all involved parties

Model of Management

Models of Management
Planning Select goals and ways to attain them Resources
Human Financial Raw Materials Technological Information

Performance Controlling Monitor activities and make corrections Organizing Assign responsibility for task accomplishment
Attain goals Products Services Efficiency Effectiveness

Leading Use influence to motivate employees

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.

Fundamental Management Skills

jTechnical Skills necessary to accomplish or understand the specific kind of work being done in an organization. jInterpersonal The ability to communicate with, understand, and motivate both individuals and groups. jConceptual The managers ability to think in the abstract. jDiagnostic The managers ability to visualize the most appropriate response to a situation.

Fundamental Management Skills (contd)

jCommunication The managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. jDecision-Making The managers 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. jTime-Management The managers ability to prioritize work, to work efficiently, and to delegate appropriately.

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.

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)


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 its not only an administrative function that carries out the formulated policies but also a managerial function that contributes to strategy formulation.


History and Evolution of HR

j 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. j The terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources."

History and Evolution of HR

j 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.

History and Evolution of HR

j 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. j 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.

History and Evolution of HR

j 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) j Furthermore, during the 1970s, HRM gained status as a recognized profession with the advent of human resource programs in colleges


History and Evolution of HR

j 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. j HR also now has more input on business strategies - training, safety, globalization, etc


Evolution of HR in the Subcontinent (Specially in India)

Period 19201930 19401960 19701980 19902000 2000Developme Outlook nt Status Beginning Struggling for recognition Achieving sophisticati on Promising Emphasis Status Clerical

Pragmatism Statutory, welfare, of Capitalists paternalism Technical, legalistic Introduction of techniques

Professional, Regulatory, Managerial legalistic and conforming, imposition of standards on other impersonal
functions Philosophical Human Values, Productivity through people


Professional Dynamism

Business Partner and Strategic change agent

Evolution in HR in Bangladesh
j 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 j 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. j 1980 to 90: The Personnel management concept has started with recognition j 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.

Objectives of HRM
j HRM objectives are four fold j 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 j Organizational Objectives: To recognize the role of HRM in bringing about organizational objectives. Example-HRP, Employee relation, Selection, TRD, PA etc j Functional Objectives: To maintain the departments contribution at a level appropriate to the organizations needs. Ex-Recruitment, selection, PA etc j Personal Objectives: To assist employees in achieving their personal goals, at least insofar as these goals enhance the individuals contribution to the organization. Ex-TRD, Placement, compensation, assessment

HR Practices in BD
j 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: j 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.


HR Practices in BD
j 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.


HR Practices in BD
j 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.
j 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
j Formation of the Bangladesh Society for Human

Resources Management- A platform for HR Professionals in Bangladesh