TOPICS

1.EVOLUTION OF
HUMAN RESOURCE MANAGEMENT

2. DEFINITION OF HUMAN RESOURCE

MANAGEMENT

3. DIFFERENCE BETWEEN HUMAN

RESOURCE MANAGEMENT AND
PERSONNEL MANAGEMENT
Presented BY

THOUFEEK. A
tt87@in.com
0994 6666 584
1.EVOLUTION OF
HUMAN RESOURCE MANAGEMENT
 Eleven stages
1. Human resource in pre-industrial era

2. Industrial revolution and the factory system

3. Emergence of modern corporation and

managerial capitalism

4. Scientific management, welfare work and

industrial psychology
5. World war 1 and the emergence of HRM
as a profession

6. Period 1940 to 1970

7. The golden age of industrial relations and

the personnel management maintenance
function, 1935-1970
8. Quality of work life era

9. The emergence of contemporary HRM function

10.Strategic focus era

11.The HRM function today

 Stage 1- HUMAN RESOURCE IN PRE
INUSTRIAL ERA

• 1400 A.D to 1700s

• Absence of HRM function in organisations

• Cessation of feudalism- release of labour

from land and beginning of the free
employment relationship
• Shift from subsistence agriculture to a
commercial based economy

• Spectacular growth of towns and

villages along with middle class
Stage 2- INDUSTRIAL REVOLUTION AND
THE FACTORY SYSTEM

• In UK- late 18 th century, USA 19 th century

and in INDIA the second half of 20 th century

• Replacement of human effort and skill by the

work of machines

• Development of factory system

- displaced self employment household
and handicraft
 Stage 2 cont…….

-rationalisation of work and division

of work

- necessity of supervision of large

number of workers

- personnel system practices became

autocratic, based upon a commodity
concept of labour
- management responsibility delegated
to foremen or first line supervisors

- foreman usually used force and fear

for controlling the workers
 Stage 3- EMERGENCE OF THE MODERN
CORPORATION AND MANAGERIAL
CAPITALISM

• From 1860 to the turn of the century

• Emergence of the modern HRM practice

• Transfer of employment from agriculture to

industrial, from small scale to large scale.
• modern business enterprise along with
capital management

• Separation of the operation from the

ownership of firms and employment of
salaried managers
 Stage 4- SCIENTIFIC MANAGEMENT,
WELFARE WORK, INDUSTRIAL
PSYCHOLOGY AND HAWTHORNE STUDIES

Scientific management
- F.W. TAYLOR
- “the one best way” and the fastest time a
worker could perform a particular task.
1. science, not the rule of thumb
2. harmony not discord
3. co-operation not individualism and
4. maximum output, in place of
restricted output
 Scientific management cont………..

• Each worker would be compensated

according to their out put

• SM represented a new attitude towards

management

• Taylor proposed functional management as a

part of SM
Contribution of scientific management to
HRM

• Taylor‟s proposal for functional

management called attention to the need
for a separate human resource
function

• Work and jobs can be systematically

studied analysed, redesigned or improved
upon
 Contribution cont……..

• Importance of proper selection

procedures and training methods

• Differential payment system

• Taylor highlighted the need of workers

to be won over and led by management
 Stage 4- cont……..

WELFARE WORK
• Efforts made in the 19 th and early 20 th
century

• To improve the working condition of factory

workers

• More systematic approach to labour problems

 Purpose of Welfare work

• The averting of industrial conflict and

unionisation

• The promotion of good management and worker

relations

• The efforts to increase worker productivity and

reduce turn over
 Stage 4- cont….

INDUSTRIAL PSYCHOLOGY
 Focused on the worker and decreasing the
psychological and physiological costs of work

 Began in 1931 HUGO MUNSTERBERG

published Psychology and Industrial
efficiency
psychology could provide in the areas
of employment testing, selection,
training, efficiency and motivation
 Hawthorne studies

 1920-32, conducted by
Elton Mayo in Western Electric company

 The studies on psychological aspects

highlighted the followings

-importance of team work, participation,

loyalty
• Importance of sociology and psychological
aspect on productivity

• Shift from scientific management like „human

engineering‟ and standards to „human
relations‟
• Organisation is considered as a social system
and not a techno economic system as viewed
by SM
 Stage 5- WORLD WAR 1 AND THE
EMERGENCE OF HRM AS A PROFESSION

• Scientific personnel administration and

centralising

• Personnel management department was

emerged

• Labour turnover increased

 Stage 5 cont……..

 Labour shortage, increased wages and

demand for employees for war production

 In UK and USA firms established personnel

departments in between 1920 & 1950

 Firms adopted functional management

 Unsystematised HRM practices

 Stage 6- Period 1940 to 1970

Behavioural school of thought

- by 1950

- Major architects in this field are

-Abraham Maslow with his need
hierarchical theory

- Herzberg two factor motivation theory

 Douglas McGregor proposed theory x and
theory Y

they advocated ways and means of

behavioural modification by managers and
workers
• On the part of managers they suggested
different leadership style

• In order to modify the behaviour of workers

-improved communication

-participation
• MBO

• Job redesign to reduce boredom and fatigue

• Management development
and training programmes

• Financial incentive scheme

• Job enrichment and job enlargement

 Human relations movement

• Associated with Elton mayo and

Fritz Roethlisberger

• Increasing productivity through discovering

the needs of workers

• It began in 1945 as a result of Hawthorne

experiment and continued till 1960
 Stage 6- cont……..

• under human relations the manger

become responsible for integrating
employees into work situation in a way
that would motivate them to work
together co operatively and productively
and for assisting employees to
experience economic, psychological and
social satisfaction.
 Stage 7- THE GOLDEN AGE OF INDUSTRIAL
RELATION AND THE PERSONNEL MANAGEMENT
MAINTENANCE FUNCTION

• In the period of great depression

• Increase the need for the practice of HRM as

a result of growth in union and collective
bargaining
PROVISION OF LEGISLATION
 From 1945 to 1970 the primary focus of the
employment relationship was on IR

 The passing of several acts in USA

encouraged unionisation

 The pro-union legislation was followed by

world war 2 which created an extraordinary
demand for labour
GOLDEN AGE OF IR
 Between 1948 and 1958

 The general focus of HRM was on IR because

the primary need of many organisation was
to operate in the collective bargaining
framework of labour relations
Firms had depreciated personnel
department by the effect of depression

Govt. involvement in the economy

during the war created a need for
personnel department in all companies
Stage 8- QUALITY OF WORK LIFE ERA

• Began in 1960s and continued till 1970s

• Rise in the view of the importance of HR as

an assets, not liabilities

• Series of efforts directed as satisfying the

interests of both employees and firms

• Policies and practices which maximised

organisation performance and employee
 Practices and programmes implemented

 Job design and enrichment with career

planning and development

 For improving the psychological quality of

employees

 Create more committed employees through

employee participation
 Stage 9- THE EMERGENCE OF
CONTEMPORARY HRM FUNCTION

FACTORS LEADING TO TRANSFORMATION OF

HRM FUNCTION
• Environmental changes occurred after world war 2

• Private sector unionism started to fall as a

percentage of the labour force

• The shift from manufacturing employment to service

sector employment continued
Stage 9- cont…… Changes in HRM policies

• Growth in international competition, domestic

competition, deregulation, globalisation and
technological change Union avoidance policies

• Dealing with employees directly as individual

rather than on management-union relations

• Dealing employees indirectly and collectively

 Cont………

• Develop employees as assets

• Increasing competitiveness of
employees to assist the organisation‟s
goals

• Successful application of Total Quality

Management
 Stage 10- STRATEGIC FOCUS ERA

• In the late 1970s there was a considerable change in

image, status and importance of HRM function in
organisations

• In 1970s business strategy was included in the MBA

syllabus

• One of the areas merge with business strategy was

HRM which helped the emergence of strategic HRM
 Factors that have contributed to
HRM’s strategic role

• The realisation that the firms competitive advantage

is tied up with managing hr in a strategic way

• Redesigning and restructuring of organisations

• The old hierarchical type structure with tight control

have given way to flatter structure and larger span of
control
 Factors cont…..

• New structure focus on employee self control rather

than old tradition of external control

• Need for sound human resource strategy to

effectively manage the highly diverse work force
Stage 11- THE HRM FUNCTIONS TODAY

• Integration of the traditional PM activities and as

well as HRM‟s involvement in overall organisational
planning and change

• HRM today is characterised as a partner in

organisational change, creator of organisational
culture, and facilitator of organisational commitment
 Stage 11- cont…..

• The decentralisation of traditional HRM activities from

personnel specialist to senior line management

• Focus on individual employee rather than on

collective management-trade union relation

• Considering employee as the single most important

organisational asset
 Stage 11- cont…..

• HRM has become a partner with other management

functions

• HRM become increasingly responsible to cultivate the

requisite culture that is conductive of required
behaviours
DEFINITION OF HRM AND
DIFFERECE BETWEEN HRM
AND PERSONNEL
MANAGEMENT
 HUMAN RESOURCE
MANAGEMENT

Definition:
Human Resource Management is the
process of acquiring, training, appraising
and compensating employees, and
attending to their labour relations ,health,
safety and fairness concerns.
[Dessler]
 Human Resource Management is defined as a
set of policies, practices and programmes
designed to maximize both personal and
organizational goals.
 PERSONAL MANAGEMENT

According to the Institute of Management(U.K).

“ Personal Management is an integral but
distinctive part of management, concerned with
people at work and their relationships within
the enterprise.”
 Differences between HRM and PM

Dimension HRM PM

1.Nature of function Line function Staff function

2.Team work HRM is invested in working PM is invested in the

with people, team-building ordinary way of
& team-work. administration of personal
policies and programs

3.Motivation HRM concentrates more on PM concentrate more on

motivation ,morale- selection , recruitment &
boosting and job appraisal of personal
satisfaction
4.Speed of decision Fast decision are taken by Slow decisions are taken
the HRM by the PM

5. Lay managers General / business/line Personal/IR specialists

managers
6. Communication Direct Indirect

7. Job design Team work Division of labour

8.Pay Performance related Job evaluation(fixed grades)

9. Management role Transformational leadership Transactional leadership

10. Managerial task Nurturing Monitoring

11. Training & development Learning companies Controlled access to courses

12. Selection Integrated, key task Separate , marginal task

13. Key relations Customer Labour management

14. Initiatives Integrated Piecemeal

15. Job categories Few Many

16. Respect for employees People are treated as
assets to be used for the
benefit of an organization,
its employees and the
society as a whole
Labour is treated as a tool
which is expendable and
replaceable

17. Shares interest Mutuality of interests Interest of the organization

are uppermost

18. Evolution Latest in the evolution Precedes HRM

subject
 REFERENCE

• NIRMAL SING, HUMAN RESOURCE

MANAGEMENT, GALGOTIA
PUBLICATIONS PVT LTD
THANK YOU