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
HRM HR HISTORY

Hiring & Firing

OF

•
Unions emerged: Labour relations specialists
EVOLUTION

•
Welfare
•
Subspecialties as :
Staffing /Training/Compensation/Appraisal System
•
Late 70’s HR professionals mastered the activities of
Staffing, Development, Appraisals & Rewards.

•
By 1980’s organizational design and communication, got added
HRM HOW IS PM DIFFERENT FROM HRM

Personnel Management and HRM differ in scope

OF

PM is viewed as a tool. The behavior of which could be manipulated for the

EVOLUTION

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.
HRM
HOW IS PM DIFFERENT FROM HRM
OF

P E R S O N N E L F U N C T I OP ON I N T S O F D I S C U S S I O N HRM

M a in te n a n c e o r i e n te d D e v e l o p m e n t o r ie n te d
EVOLUTION

O r ie n ta tio n
A n i n d e p e n d e n t f u n c t i o n w i t h i n d e p e n d e n Ct os un bs i- s t s o f i n t e r - d e p e n d a n t p a r t
fu n c tio n s S tr u c tu r e
R e a c t i v e , r e s p o n d i n g t o e v e n t s w h e n t h e y Po r co caucrt i v e , t r y i n g t o a n t i c i p a t e &
P h ilo s o p h y a p p r o p r ia te r e s p o n s e s
E x c lu s i v e r e s p o n s ib il ity o f p e r s o n n e l R e s p o n s i b i li ty o f a ll m a n a g e r s i
d e p a r tm e n t R e sp o n sib ility
E m p h a s is o n m o n e ta r y r e w a r d s E m p h a sis o n h ig h e r o rd e r n e e d
M o ti v a to r s p e o p le
I m p r o v e d p e r f o r m a n c e i s a r e s u l t o f i m p r o Bv e tdt e r u s e o f h u m a n r e s o u r c e s l
s a ti s fa c tio n & m o r a le O u tc o m e s s a ti s fa c tio n & m o r a le
T r i e s t o i m p r o v e t h e e f f i c i e n c y o f p e o p l e &T r i e s t o d e v e l o p t h e o r g a n i s a t i o
a d m in istr a tio n A im s c u l tu r e
HRM ESSENTIALS IN THE DEFINITION OF HRM

It is people who staff the organization and manage organizations

OF

HRM involves application of management functions and principals.

EVOLUTION

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
HRM
OF 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.
EVOLUTION

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.
HRM
OF
EVOLUTION 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.
HRM
OF MANAGERIAL FUNCTIONS OF HRM

Planning: Determination in advance of a personal program that will

contribute to goals established for the enterprise
EVOLUTION

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.
HRM OPERATIVE FUNCTIONS OF HRM

Procurement: Obtaining proper kind and number of personnel necessary to

accomplish organizational goals
OF

Development: Increasing the skill through training that is necessary for proper
EVOLUTION

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
HRM THE HUMAN RESOURCE CYCLE

HRM Concept – Michigan School

OF
EVOLUTION

Rewards

Performance
Selection Performance
Management

Development

1. Selection: Matching available human resources to jobs

2. Appraisal: Performance management

3. Rewards: It must reward short as well as long-term achievements

4. Development: Developing high quality employees

HRM
OF THE HARVARD FRAMEWORK FOR HRM

Stakeholder Interests
• Shareholders
EVOLUTION

• Management
• Employee groups HRM policies HRM outcomes Long-term
• Government
• Employee • Commitment consequences
• Community influence • Competence • Individual well-
• Human • Congruence being
resource flow • Cost - • Organizational
• Reward effectiveness effectiveness
systems • Societal well-
• Work systems being
Situational factors
• Workforce
characteristics
• Business strategy
and conditions
• Management
philosophy
• Labour market
• Unions
• Tasks technology
• Law & societal
values
HRM THE 5-P MODEL OF STRETEGIC HRM

Organization Strategy
OF

Internal Characteristics External Characteristics

EVOLUTION

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
HRM 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
OF

work life, productivity and readiness for change.

EVOLUTION

Union/ Labor
relations
Employee
assistance T& D

HR areas output:
Compensation/ Quality of work life Organization/
Benefits Productivity readiness Job design
for change
Personnel
research and
information HRP
systems Selection
and staffing
HRM HUMAN RESOURCE WHEELS

T & D focus
OF

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 organization’s major HR needs strategies and philosophies.

HRM HUMAN RESOURCE WHEELS

Selection and staffing

OF

Matching people and their career needs and capabilities with jobs and career paths.
EVOLUTION

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.

 Nature of HRM
THE Human Resource
Planning
Job analysis
HRM
Recruitment
MODE Selection
L
Placement
Training
&development
Remuneration
Motivation Competen
Participative t&
Willing
Management forc
work
Communication e
Safety, health &
t ne mnori v nE

Welfare
Promotions etc. Organisatio
Industrial relations nal Goals
Trade Unionism
Disputes & their
settlement
International HRM
Ethical issues in HRM
HRM 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.
OF

Developing and implementing a plan to meet the manpower requirements.

EVOLUTION

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.
HRM
OF HUMAN RESOURCE FUNCTIONS

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

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

HRM
OF CHALLENGES FACED BY HRM

Globalization

Build value chain for business

EVOLUTION

competitiveness
Profitable through cost and growth
Capability Focus

Change

Technology

Attracting and retaining intellectual capital

HRM
OF CONCLUSION

Organizations are now defined as :

• The core competencies within the organization

• The people within the organization
EVOLUTION

• 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