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

Published by Lecturesheet.iiuc28a9.com
1

Introduction to Management
Management is the process of designing and

maintaining an environment in which individuals

working together in groups, efficiently accomplish
selected aims.
Management can be defined as ensuring an
organization makes the most effective and
efficient use of resources in order to achieve
agreed objectives.
The process of getting things done, effectively and
efficiently, through and with other people
2

Organization

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
Organizing

Planning

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

Defining goals and

establishing
action plans

Effective
Management
Controlling
Monitoring activities
to ensure that they
are achieving
results

Leading
Guiding and
motivating all
involved parties

Model of Management

Models of Management
Planning
Select goals and
ways to attain
them
Performance

Resources
Human
Financial
Raw Materials

Organizing
Assign responsibility
for task
accomplishment

Controlling
Monitor activities and
make corrections

Technological
Information

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

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

Fundamental Management Skills (contd)

Communication
The managers abilities both to convey ideas and
information effectively to others and to receive ideas and
information effectively from others.
Decision-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.
Time-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)

10

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.

11

History and Evolution of HR

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.
The terminology used to describe the role and
function of workers has evolved from "personnel"
to "industrial relations" to "employee relations" to
"human resources."
12

History and Evolution of HR

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.
13

History and Evolution of HR

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 employeesfrom
nonhuman resources to human beings.
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.
14

History and Evolution of HR

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

15

History and Evolution of HR

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

16

Evolution of HR in the Subcontinent

(Specially in India)
Period

Developme Outlook
nt Status

19201930

Beginning

Pragmatism Statutory, welfare,

of Capitalists paternalism

Clerical

19401960

Struggling
for
recognition
Achieving
sophisticati
on

Technical,
legalistic

Administrative

19701980

Emphasis

Introduction of
techniques

Status

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

19902000

Promising

2000-

Professional Dynamism

Executive

Business Partner and Strategic

change agent

Evolution in HR in Bangladesh
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
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.
1980 to 90: The Personnel management concept has started
with recognition
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.
18

Objectives of HRM
HRM objectives are four fold
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
Organizational Objectives: To recognize the role of
HRM in bringing about organizational objectives.
Example-HRP, Employee relation, Selection, TRD, PA etc
Functional Objectives: To maintain the departments
contribution at a level appropriate to the organizations
needs. Ex-Recruitment, selection, PA etc
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
19

HR Practices in BD
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:
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.

20

HR Practices in BD
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.

21

HR Practices in BD
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.
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

Formation of the Bangladesh Society for Human

Resources Management- A platform for HR

Professionals in Bangladesh
22