Introduction of HRM growth policies and practices of hrm

1. Introduction to Human Resource
Management
Presented by-
Sreelakshmi Nair MBA/10002/15
Shipra Shresth MBA/10004/15
Navneet Kumar MBA/10001/15
Priyamvada Ankita Lal MBA/10003/15

2. EVOLUTION OF PERSONAL
MANAGEMENT AND HRM

3. Personal Management
Managing personnel is the process of
making sure the employees are as
productive as they can be. This can
include hiring, firing, or transferring
people to/from jobs they can do most
productively.

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

5.  Human resource management (HRM, or simply HR)
is the management of an organization's workforce,
or human resources.
 In circumstances where employees desire and are
legally authorized to hold a collective bargaining
agreement, HR will also serve as the company's
primary liaison with the employees' representatives
(usually a labour union).

6. Difference between personal and
hrm

7. DIMENSION PERSONAL
MANAGEMENT
HRM
APPROACH TRADITIONAL MODERN
FOCUS ON PERSONAL
ADMINISTRATION,
EMPLOYEE WELFARE
&LABOR RELATION
ACQUISTION,
DEVELOPMENT,
MOTIVATION&
MAINTAINANCE OF HR
ASSUMPTION PEOPLE AS INPUT VALUABLE RESOURCE
JOB DESIGN DIVISION OF LABOUR TEAM WORK
TRAINING
&DEVELOPMENT
LESS MORE
DECISION MAKING TOP MANAGEMENT MADE COLLECTIVELY
EMPHASIS ON INCREASED PRODUCTION
& SATISFIED EMPLOYEES
EFFECTIVENESS,CULTURE,
PRODUCTIVITY&
EMPLOYEE
PARTIFICATION
CONCERNED WITH PERSONAL MANAGER ALL LEVEL OF MANAGERS
FUNCTION ROUTINE STRATEGIC

8. Evolution & Growth of Personal
Management

9. FIRST WORLD WAR
 The First World War accelerated change in the
development of personnel management, with women
being recruited in large numbers to fill the gaps left by
men going to fight, which in turn meant reaching
agreement with trade unions (often after bitter disputes)
about ‘dilution’– accepting unskilled women into
craftsmen’s jobs and changing manning levels.

10. 1920’S
 During the 1920s, jobs with the titles of ‘labor manager’
or ‘employment manager’ came into being in the
engineering industry and other industries where there were
large factories, to handle absence, recruitment, dismissal
and queries over bonuses and so on.
 Employers’ federations, particularly in engineering and
shipbuilding, negotiated national pay rates with the
unions, but there were local and district variations and
there was plenty of scope for disputes.

11. 1930’S
 During the 1930s, with the economy beginning to pick up,
big corporations in these newer sectors saw value in
improving employee benefits as a way of recruiting,
retaining and motivating employees.
 But older industries such as textiles, mining and
shipbuilding which were hit by the worldwide recession
did not adopt new techniques, seeing no need to do so
because they had no difficulty in recruiting labor.

12.  In 1920-30s emphasis is on welfare management and
paternalistic concept
 Status is of clerical level
 Roles played are of welfare administrator and policeman

13. SECOND WORLD WAR
 The Second World War brought about welfare and
personnel work on a full-time basis at all establishments
producing war materials because an expanded Ministry of
Labor and National Service insisted on it, just as the
Government had insisted on welfare workers in munitions
factories in the previous conflict.
 The government saw specialist personnel management as
part of the drive for greater efficiency and the number of
people in the personnel function grew substantially; there
were around 5,300 in 1943.

14.  By 1945, employment management and welfare work had
become integrated under the broad term ‘personnel
management’. Experience of the war had shown that
output and productivity could be influenced by
employment policies.
 The role of the personnel function in wartime had been
largely that of implementing the rules demanded by large-
scale, state-governed production, and thus the image of an
emerging profession was very much a bureaucratic one.
 Following the development of poor industrial relations
during the 1960s a Royal Commission under Lord
Donovan was set up.

15.  In 1940-60s emphasis on expanding the role to cover
labour , welfare, industrial relation and personal
administrator
 Status is of administrator
 Roles played are of appraisal, advisor, mediator, legal
advisor & firefighting
 In 1970-80s the focus was on efficiency , effectiveness of
production. The emphasis was on human values,
aspirators, dignity and usefulness
 Status was developmental
 Roles played by personal manager was of integrator,
trainer and educator

16.  1990 onwards emphasis was on incremental productivity
gain through humanizer
 Status is proactive and growth oriented
 Roles played is of developer ,councillor ,coach, mentor,
philosopher, facilitator and problem solver

17. Evolution of Human Resource
Management

18. Evolution of HRM:
 Industrial Revolution
 Trade Unionism
 Social responsibility era
 Scientific Management Era
 Human Relations Era
 Behavioural Science Era
 System Approach Era
 Contingency Approach Era

19. Industrial revolution
The seed of HRM were sown during Industrial revolution
1850’s in Western Europe and USA.The wind gradually
reached to India in beginning of 20th century.During this
period:-
 Machines were bought in
 Technology made rapid progress
 Workers were treated like machine tools
 Employers were keen to meet production targets rather
than satisfy workers.
 Govt. didi very little to protect the interests of workers.

20. Trade Unionism:-
This was the period when state intervention to protect the
worker’s interest was felt necessary. During this period:-
 Workers started to form their associations.
 Trade Union Act, 1926 was passed in India.
The basic philosophy was to safeguard worker’s interest and
to sort out their problems like Child labour, Long hours of
work, Poor working conditions.
The unions used strikes, lockouts etc as weapons for
acceptance of their problems.

21. These activities of trade unions gave rise to
personnel practices such as:-
 Collective bargaining
 Grievances redrassal
 Arbritration
 Employee benefits programs
 Installation of rational wage structures.

22. Social Responsibility era:-
 Robert Owen, a British industrialist is considered to be the
first to adopt humanistic and paternalistic approach.
 He viewed that the social and economic environment
influence the physical , mental and psychological
development of workers.

23. His philosophy was that owner is like a father and
worker is like a child. He practised the following:-
 Provision for reduced working hours
 Housing facilities
 Education of workers and their children
 He admired for giving human treatment to workers.

24. Scientific Management era:-
This concept was introduced by Fredrick.W.Taylor in
USA early in 20th century. He developed following
four principles:-
 Use of scientific methods in setting work standards.
 Scientific selection and placement of workers best
suited for the tasks. Also provision for training.

25.  Clear cut division of work and responsibility between
management and workers.
 Harmonious relations and close cooperation with
workers.
His study focused physical characteristics of the human
body as it responds to routine and clearly defined jobs.

26. He developed following techniques for the same:-
 Time study
 Motion study
 Standardization of tools, equipments and machinery
and working conditions
 incentive wage plan with differential piece rate of
wages.

27. Human Relations era:-
This particular period focused on the feelings,attitude and
needs of the workers as human beings.Between 1925 and
1935 Hugo Munsterberg, a psychologist suggested the use
of psychology in selection, placement, testing and training
the employees in an organisation.

28. Between 1924 to 1932,Elton Mayo conducted a series of
experiments at hawthorne plant of western electric company
in USA. Main findings were:-
 Physical environment should be good
 Favourable attitudes of workers and work team towards
their work
 Fulfillment of worker’s social and psychological needs
 Workers can be motivated through job security, right to
express their opinion on matters related to them.

29. Behavioural science era:-
It was concerned with social and psychological aspects of
human behaviour. Some of important elements were:-
 Individual behaviour is linked with group behaviour
 Informal leadership rather than formal leadership
 Motivation by self control and self development
 Improving efficiency through Self operating

30. Systems approach era:
 Technical subsystem : formal relationships.
 Social subsystem : informal group relations
 Power subsystem : exercise of power

31. Contingency approach era:-
 According to contingency, the best way to manage varies
with situation.
 There may not be the universal way of managing all the
situations.
 It is imperative for managers to analyse different
situations and then use the best suitable in that particular
situation.

32. Concepts Of HRM

33.  Earlier known as personnel management
 Administration of human
 Recruitment and selection,reward,grievance
handling,retirement and so forth
 Developed in the bureaucratic set up
 Organisation and administration of man power

34.  HRM is a process in which human resources are
recruited and mobalised in such a way that it helps in
achieving the organisational objectives.
 Management of human energies and competencies.
 Right man,for the right position and at the right time
in the changing environment.

35.  Acquisition,development,motivation and maintenance
of human resources.
 Acquisition: getting people
 Development: preparing them for work
 Motivation: activating them
 Maintenance: keeping them retained in the
organization.

36. Growth Of HRM
 THE COMMODITY CONCEPT
 THE FACTOR OF PRODUCTION CONCEPT
 THE GOODWILL CONCEPT
 THE PATERNALISTIC CONCEPT
 THE HUMANITARIAN CONCEPT
 THE HUMAN RESOURCE CONCEPT
 THE EMERGING CONCEPT

37. The Commodity Concept
 Human resource was referred as “a commodity”
 To be bought and sold,
 Use and throw.
 Wages were decided on the basis of demand and supply
forces,
 Or the time they worked for.
 Government did not care much about the work force.

38. The Factor of Production Concept
 Labour is treated as any other factor of production,
viz:money,material,land,etc
 Factors of production may also refer specifically to the
primary factors, which are land, labour, and capital goods
applied to production.
 Materials and energy are considered secondary factors in
classical economics because they are obtained from land,
labour and capital.

39. The Goodwill Concept
 Welfare measures like safety, first aid, lunch room, rest
room etc.
 These measures proved to be a source of boosting up the
morale of workers,
 Thereby enhancing their performance.
 Focus on labour productivity.

40. The Paternalistic Concept
 Management must assume a fatherly and protective
attitude towards employees.
 It does not mean merely providing benefits but it
signifies to satisfy various needs of employees just as
parents meet the requirements of children.

41. The Humanitarian Concept
 To improve the productivity,physical,social and
psychological needs of workers must be fulfilled.
 Their viewpoints were heard respected.
 Money is less a factor in determining output, than
group standards, incentives and securities.
 The organization is a social system that has both
economic and social dimensions.

42. The Human Resource Concept
 Employees are the most valuable assets of an
organization.
 Convey the organizational goals to the employees
 There should be a conscious effort to realize
organizational goals by satisfying needs and
aspirations of employees.

43. The Emerging Concept
 Enhance the quality of work life.
 Achieve Profitability, productivity, innovation and
excellence.

44. Significance of HRM
Human resources are the valuable assets of the
corporate bodies. they are their strength. to face the
new challenges on the fronts of knowledge, technology
and changing trends in global economy needs effective
HRM.

45. Organizational significance
 It contributes to the achievement of organizational
objectives.
 attracting and retaining the best people.
 Development of skills and attitude.
 Securing willing cooperation.
 Effective utilization of available human resources.
 A team of competent and dedicated employees.

46. Social significance
 Need satisfaction of personnel.
 Welfare of the society.
 Employment opportunities multiply.
 Conservation of physical and mental health.
 Scarce talents are put to best use.

47. Professional significance
 Providing a healthy environment to employees.
 By meeting challenge of their job.
 Promoting team-work and team-spirit.
 Offering excellent growth opportunities.
 Incentives for developing and utilizing creativity.

48. Miscellaneous
 Recruitment and training.
 Performance appraisal.
 Managing disputes.
 Developing public relations.
 Future manpower needs.
 Coping with change.
 Uncertainty reduction.

49. Principles of Human Resource
Management
• Principles are fundamental beliefs, generally
constant and unchangeable.
• The principles of human resource
management are touchstones which enable
managers to exercise judgement in a variety
of situation.

50. Principles of HRM is designed to:
 Provide an enabling set of standards to guide
managers in making decisions about managing the
people in their organisations
 Provide a source for all corporate policies related to
human resource management
 Provide managers with a principles-based approach to
managing people

51. Principles of HRM
 Merit
 Fairness
 Diversity
 Equity
 Reasonableness
 Transparency
 Natural Justice
 Public Interest

52. Merit
 The principle of merit means that decisions about
appointments and pay are based on an unbiased
assessment of one’s competencies.
Example : Knowledge, Skills and abilities

53. Fairness
 Fairness refers to conduct that is unbiased, just and
honest.
 It means treating employees consistently.
 The principle of fairness, enshrined in The Labour
Relations Act, 1998, is fundamental to employees
relations.

54. Diversity
 Diversity recognises that people have
characteristics that make then distinct from
others, including:
*Age *Language
*Culture *Ethnicity
*Skills *Gender
*Abilities *Talents
*Perspectives

55. Equity
 Means applying the principles of justice to correct or
supplement employment practices to redress
disadvantages experienced by individuals in the
workplace

56. Reasonableness
 Means conduct which is sensible, in moderation and based
on sound judgement
 The principle of reasonableness is a key concept in The
Labour Relations Act, 1998

57. Transparency
 Refers to policies that are clear, frank and accessible
 Also refers to conduct being free from pretence or
deceit

58. Natural Justice
 Natural justice means that all administrative
procedures are fair and are perceived to be fair
because due process has been followed
 The rules of natural justice are the minimum
standards of fair decision-making imposed on
persons or bodies acting in a judicial capacity

59. Public Interest
 Public Interest is served when all actions and
decisions of public officials and managers are based
on merit, fairness and reasonable consideration of the
public’s need for service, efficiency, effectiveness,
representation and access to information and
opportunities.
 This principle is fundamental to The Civil Service
Act.

60. A course or principle of action adopted or
proposed by an organization or individual
Equal Employment Opportunity policies
Employee classifications
Workdays, paydays, and pay advances
Overtime compensation
Meal periods and break periods
Payroll deductions
Vacation policies
Holidays
Sick days and personal leave
Performance evaluations and salary increases
Performance improvement
Termination policies

61.  Communication with employees
 Communication with managers and
supervisors
 Time Savings
 Curbing litigation

62. Bamboo Wacom
 78 percent of HR professionals surveyed HRIS users
noting that they use their system to generate reports of
strategic and demographic employee data
 68 percent of surveyed payroll management HRIS users
reporting that their system is used to process payroll in
their businesses
HRIS

63. Thank You