Evolution Of HRM

EnvironmentExternal & Internal Ms. Anubha Rastogi

Astt. Prof, Vidya School Of Business2015-16

TYPES OF ENVIRONMENTS

External Labor Market

Unions

Legal Mandates and

Prohibitions

Interest Groups

Stakeholders

Societal Norms

Professional Ethics

Competing Organizations

Collaborating Organizations

Demands for Service

(Customers)

Technology

Economic and Social

Change

Internal Structure of Organization

Allocation of Tasks

Availability of Resources

Organization of Workforce Rules

Development and Training

Process

Rewards and Benefits

Structure

Strategic Uses of

Compensation and Benefits

Adaptations to Organizational

Change

Static

Changing

EVOLUTION OF HRM CONCEPT

The Commodity Concept

The Factor Of Production (FOP) Concept

The Goodwill Concept

The Paternalistic Concept

The Humanitarian/Human Relations Concept

The Human Resource/Modern Concept

The Emerging Concept

COMMODITY CONCEPT

Workers were considered as a commodity

like any other factor of production which can

be bought.

The working conditions were worst, workers

worked from dawn to dusk under unhygienic,

unsafe working conditions for low wages

FACTORS OF PRODUCTION

Scientific methods of production, scientific

selection, training of workers, and

compensating them handsomely for

achieving output standards

GOODWILL CONCEPT

Welfare measures like safety, first

aid, lunch room, rest room were

provided to have a positive

impact on worker’s productivity

PATERNALISTIC CONCEPT

Management assumed a fatherly and protective

attitudes towards employees

The approach of management was as if they offering

a favour rather than giving as rights

HR CONCEPT Considers human resources as an asset for a

sustainable competitive advantage

Conscious effort to realize organizational

goals by satisfying needs and aspirations of

employees

EMERGING CONCEPT

Today's workforce considers themselves as partners in

industry.

Employee empowerment practices like stock option

plans, profit sharing plans and more autonomy and

challenging responsibilities for workforce.

Evolution of HRM in the west

(1) Industrial Revolution:

a. Adam Smith: specialization and division of labor.

b. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

(2) Scientific Management: Frederick Taylor: Father of scientific management

a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination.

b. Steps: Job analysis—selection—training—rewards.

(3) Industrial Psychology:

a. Henri Fayol’s management functions: Planning, organizing, communicating, coordina- ting and controlling.

b. F. & L. Gilbreth’s principles of work simplification (time and motion studies).

c. Henry Gantt’s principles of work scheduling.

d. Continuation of scientific management.

(4) Human Behavior And Relations

a. The Hawthorne Studies by Westing House

b. The happy workers are the most productive workers. (The Pet Milk theory)

c. Max Weber: the Ideal Bureaucracy.

d. Chris Argyris: Individual and organization—mutual adjustment.

e. Affected by the theories of behavioral science and system theory.

Three Stages Of Growth Of

HRMa. File Management (1900-1964):collecting and storing

data of each employee.

b. Government Accountability (1964-1980): Compliance to government regulations.

c. Human Resource Management:

Treating human resource as an asset.

Emphasizing joint responsibilities of line managers and

staff managers.

Current Business Issues

and the Effect on HR

Technology changes

Privacy

Workplace security

Globalization; offshoring

Immigration

AIDS epidemic

Aging workforce

Employment regulation

Litigation

The Sustainability Challenge

Knowledge is becoming more valuable

Intellectual capital refers to the creativity, productivity, and service provided by employees

Knowledge workers are employees who contribute to the company not through manual labor but through a specialized body of knowledge

Empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or

customer service

A learning organization embraces a culture of lifelong learning,

enabling all employees to continually acquire and share

knowledge

The psychological contract describes what an employee expects to contribute and what the company will provide to the employee for these contributions

Alternative work arrangements include independent contractors, on-call workers, temporary workers, and contract company workers

The Global Challenge

Companies are finding that to survive they must compete in international markets as well as fend off foreign corporations’ attempts to gain ground in the U.S.

Every business must be prepared to deal with the global economy. This is made easier by technology.

Offshoring refers to the exporting of jobs from developed countries to less developed countries.

Many companies are entering international markets by exporting their products overseas, building manufacturing facilities in other countries, entering into alliances with foreign companies, and engaging in e-commerce

The Technology Challenge

Technology has reshaped the way we play, plan our lives, and where we

work

The overall impact of the Internet

The Internet has created a new business model – e-commerce – in which

business transactions and relationships can be conducted electronically

Advances in technology have:

changed how and where we work,

resulted in high-performance models of work systems,

increased the use of teams to improve customer service and product quality,

changed skill requirements,

increased working partnerships,

led to changes in company structure and reporting relationships,

increased the availability of Human Resource Information Systems (HRIS), which are used to acquire, store, manipulate, analyze, retrieve, and distribute HR information,

increased the availability of e-HRM, which is the processing and transmission of digitalized information used in HRM,

increased the competitiveness of high performance work systems.

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Thank you…!!

Questions ??