evolution of human resource mangement

Theoretical Evolution of HRM Concept ANDHRM12

AcknowledgmentI would like to express my foremost acknowledgement and thank to our lecturer Mr. Y. Ratnayake at National Institute of Business Management Katugasthota, Kandy for his guidance, inspiration and encouragement given, to complete this project.

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AbstractHuman resource management is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success.

In this project, it will be widely explained about what is Human resource management, and The theoretical evolution of Human resource management concept.

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List of ContentAcknowledgment...................................................................................................... 1

Abstract.................................................................................................................... 2

List of Content...........................................................................................................3

List of Drafts and Images........................................................................................... 5

Chapter One : Introduction to Human Resource Management...................................6

The Concept of Human Resource Management.................................................................................7

Human Resource Management: Beliefs..............................................................................................8

Definitions for HRM............................................................................................................................ 9

Objectives of Human Resource Management..................................................................................10

Human Resource Management: Scope.............................................................................................11

Personnel aspect.......................................................................................................................... 11

Welfare aspect..............................................................................................................................11

Industrial relations aspect............................................................................................................11

HRM : Strategic Role and Functions..................................................................................................12

Strategic Role................................................................................................................................12

Functions of HRM......................................................................................................................... 12

Factors in Human Resource Management........................................................................................14

Human Resource Model................................................................................................................... 15

Chapter two : Theoretical Evolution of HRM Concepts.............................................16

Evolution of Management Thinking..................................................................................................17

Classical Perspective.....................................................................................................................17

Humanistic Perspective................................................................................................................ 24

Management Science Perspective................................................................................................27

Early ages of Human Resource Management...................................................................................28

Stages to Modern HRM.....................................................................................................................30

Evolution of the Concept of HRM.....................................................................................................32

The Commodity Concept..............................................................................................................32

The factor of Production Concept................................................................................................32

The Paternalistic concept.............................................................................................................32

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The Goodwill Concept.................................................................................................................. 32

The Humanitarian Concept...........................................................................................................33

The Human Resource Concept.....................................................................................................33

The Emerging Concept..................................................................................................................33

Personal management......................................................................................................................34

Chapter Three : Conclusion......................................................................................36

Reference................................................................................................................38

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List of Drafts and Images 1.1 : Scope of HRM.................................................................................................. 11

1.2 : Model of HRM................................................................................................. 15

2.1 : Frederick Taylor (Father of scientific management)..........................................17

2.2 : Scientific management in practice....................................................................19

2.3 : Max Weber......................................................................................................20

2.4 : Henry Fayol......................................................................................................22

2.5 Mary Parker Follett............................................................................................24

2.4 Chester Barnard.................................................................................................24

2.6 Hawthorne factory workers...............................................................................24

2.6 Hawthorne factory workers 2............................................................................25

2.7 : Evolution of Human Resource Management....................................................32

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Chapter One : Introduction to Human Resource Management

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The Concept of Human Resource Management

Human resources is a term used to refer to how people are managed by organizations. It was basically a traditionally administrative function but with time it focuses and recognizes talented and engaged people and organizational success.

Human resources have at least two related interpretations depending on context. The original usage was traditionally called labour it is a measure of the work done by human beings. This perspective is changing as function of new and ongoing research into more strategic approaches. This first usage is used more in terms of 'human resources development', and can go beyond just organizations to the level of national importance. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as 'human resources management’.

The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, "personnel management" as a description of the processes involved in managing people in organizations.

Human resource management is to maximize the return on investment from the organization's human capital and minimize financial risk. Presently Human Resource Management is an integral but distinctive part of management. Its objective is the maintenance of better human relations in the organization by the development, application and evaluation of policies, procedures and programs relating to human resources to optimize their contribution towards the realization of organizational objectives. HRM helps in attaining maximum individual development, desirable working relationship between employees and employers, employees and employees, and effective modeling of human resources as contrasted with physical resources. It is the recruitment, selection, development, utilization, compensation and motivation of human resources by the organization.

Generally, human resource management refers to the management of the entire workforce of an organization in a reliable, honest and professional manner. It is the responsibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner. That’s why the demand of Human Resource (HR) management has been dramatically increased these days. From corporate sector to banking industry, from nonprofit organizations to human protection groups, from IT solution companies to printing industry; human resource management is playing a critical role in all the other sectors of the economy.

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Human Resource Management: BeliefsThe Human Resource Management philosophy is based on the following beliefs:

1. Human resource is the most important asset in the organization and can be developed and increased to an unlimited extent.

2. A healthy climate with values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resource.

3. HRM can be planned and monitored in ways that are beneficial both to the individuals and the organization.

4. Employees feel committed to their work and the organization, if the organization perpetuates a feeling of belongingness.

5. Employees feel highly motivated if the organization provides for satisfaction of their basic and higher level needs.

6. Employee commitment is increased with the opportunity to discover and use one's capabilities and potential in one's work.7.It is every manager's responsibility to ensure the development and utilization of the capabilities of subordinates.

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Definitions for HRM"The Process of analyzing and managing organizations human resources needs to ensure satisfaction of its strategic objectives”

- Management –Hellriegel / Slocum

“The policies and practices involved in carrying out the ‘people’ or human resources aspects of a management position, including recruiting, screening, training and appraising.”

- Human resource management – Gray Dessler

"planning, organizing, directing, controlling of procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved."

- Edwin Flippo

Human Resource Management is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the emplpyees to achieve their objectives.

- Milkovich and Boudreau

Human Resource Management 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 commitment to the organization are essential to achieving organizational objectives. This is true regardless of the type of organization – government, business, education, health, recreation or social action.

- David A. Decenzo and Stephen P. Robbins

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Objectives of Human Resource ManagementObjectives are pre-determined goals to which individuals or group activity in an organization is directed. So objectives of HRM are influenced by organizational objectives and individual as well as social goals.

1. To help the organization reach its goals.

2. To ensure effective utilization and maximum development of human resources.

3. To ensure respect for human beings.

4. To identify and satisfy the needs of individuals.

5. To ensure reconciliation of individual goals with those of the organization.

6. To achieve and maintain high morale among employees.

7. To provide the organization with well-trained and well-motivated employees.

8. To increase to the fullest the employee's job satisfaction and self-actualization.

9. To develop and maintain a quality of work life.

10. To be ethically and socially responsive to the needs of society.

11. To develop overall personality of each employee in its multidimensional aspect.

12. To enhance employee's capabilities to perform the present job.

13. To equip the employees with precision and clarity in transaction of business.14.To inculcate the sense of team spirit, team work and inter-team collaboration.

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Human Resource Management: ScopeThe scope of HRM is very wide and vast, as seen in the diagram. All major activities in the working life of an employee come under preview of HRM. The activities can be broadly divided into three groups.

Personnel aspectThis is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.

Welfare aspectIt deals with working conditions and amenities such as canteens, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

Industrial relations aspectThis covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.

1.1 : Scope of HRM

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HRM : Strategic Role and Functions

Strategic Role HRM should be strategic business partner of an organization support business strategies In addition to internally representing the employees, should have external focus Forward thinking and proactive Assist the organization in creating and maintaining competitive edge. Should try to work as profit centre and economize its operations. Should add value to the organization.

Functions of HRMHRM involves two categories of function. Those are(a) Operative function and(b) Managerial function.The operative function belongs to such activities concerned with procuring, developing, compensating, utilizing, and maintaining an efficient workforce. The managerial functions are common to all managers and those are planning, organizing, coordinating, directing and controlling. One function cannot work without the other and they are interrelated. So the important functions of HRM can be listed below:

Staffingo Manpower or Human Resource Planning

Job Analysis : competency matrix Job Description / Position Description Job Evaluation Determination of actual number of employees needed

o Recruitment and Selection of people Attracting talent Selection process Motivating talent to join the organization

Training and Developmento Induction

Acclimatization process for new employeeso Training

Competency mapping and gap analysis Appraisal Training and assessment Training process

o Development Potential assessment Development process

o Career planning Fast track (talent management)

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Normal career path management Motivation

o Appraisal Appropriate appraisal system Appraisal process

o Competition and benefits Determination of salary and benefit packages

o Rewards Recognition Motivation Monetary Motivation

Maintenanceo Communication

Installing and maintaining two way communicationo Health

Design / selection and implementation of health schemso Safety

Awareness creation System for safe working condition

o Employee relations Establishing fairness Designing and implementing employee relations

o Legalities Dispute Grievances Unions Employment related legalities Health and Safety related legalities

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Factors in Human Resource ManagementIn the 21st century HRM will be influenced by following factors, which will work as various issues affecting its strategy:

1. Size of the workforce.

2. Rising employees' expectations

3. Drastic changes in the technology as well as Life-style changes.

4. Composition of workforce. New skills required.

5. Environmental challenges.

6. Lean and mean organizations.

7. Impact of new economic policy. Political ideology of the Government.

8. Downsizing and rightsizing of the organizations.

9. Culture prevailing in the organization etc.

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Human Resource Model

1.2 : Model of HRM

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Chapter two : Theoretical Evolution of HRM Concepts

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Evolution of Management Thinking

Classical PerspectiveThe classical perspective emerged during the 19th and 20th centuries. The factory system of the 1800s had challenges:

Tooling plants Organizing managerial structure Scheduling complex manufacturing and operations Dealing with increased labor dissatisfaction and resulting strikes

These new problems demanded a new perspective on coordination and control, make organizations efficient operating machines, Rational, scientific approach to management, The overall classical perspective as an approach to management was very powerful and gave companies fundamental new skills for establishing high productivity and effective treatment of employees. This perspective contains three subfields:

Scientific Management

Scientific Management tries to increase productivity by increasing efficiency and wages of the workers. It finds out the best method for performing each job. It selects employees by using Scientific Selection Procedures. It provides Scientific Training and Development to the employees. It believes in having a close co-operation between management and employees. It uses Division of Labour. It tries to produce maximum output by fixing Performance Standards for each job and by having a Differential Piece-Rate System for payment of wages.

Improving labor productivity by scientifically analyzing and establishing optimal workflow processes. Explanation of Scientific Management of Frederick Winslow Taylor. (1911)

2.1 : Frederick Taylor (Father of scientific management)

Taylor had pragmatic and even good motives to free up the good worker (Schmidt) of one half of his work, who was carrying pig iron at Bethlehem Steel. And at the same time he wanted to alleviate poverty and eliminate waste of time, energy and human ability. But his methods were very hard and sometimes had the opposite effect when they fell into the hands of ruthless exploiters of workers. This is why Scientific Management is often referred to disparagingly as Taylorism.

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Frederick Winslow Taylor - Father Of Scientific Management. Biography

Frederick Winslow Taylor is born in 1856 to a wealthy Quaker family in Philadelphia. In 1874 he becomes an apprentice patternmaker and machinist at Enterprise Hydraulics Works, gaining shop-floor expertise. In 1878 he takes up an unskilled job at Midvale Steel Works where he does his first experiments. In 1881 he gains a master degree in mechanical engineering. In 1890 he is appointed to general manager of Manufacturing Investment Company (MIC). It is important to understand that the circumstances during the life of Taylor were quite different from those today: there had been a series of depressions and production methods at the time were very inefficient. Also there was a need to employ many immigrants into the US, to raise the living standards and to meet rising demands for goods of every sort. All of this influences Taylor when he publishes The Principles of Scientific Management in 1911. Taylor dies in 1915.

Usage Of Scientific Management. Applications

Basis or inspiration for many later management philosophies, including Management by Objectives, Operations Research, CSFs and KPIs and Balanced Scorecard, Just-in-time and Lean Manufacturing, Total Quality Management, Six Sigma and Business Process Reengineering.

As a contrast to modern business or management methods.

Old-fashioned, inefficient industrial environments.

Taylor was pragmatic and he was a strong advocate of Learning-by-Doing. Contrary to today's theorizing, hypothesis formation and testing, the One Best Way came from the workers, not from the managers or owners (Spender and Kijne, 1996). Peter Drucker saw Taylor as the creator of Knowledge Management, because the aim of scientific management is to produce knowledge about how to improve work processes.

Steps In Scientific Management. Process

Taylor's scientific management consisted of four principles:

1. Replace rule of thumb work methods with methods based on a scientific study of the tasks.

2. Select, train, teach and develop the most suitable person for each job, again scientifically, rather than passively leaving them to train themselves.

3. Managers must provide detailed instructions and supervision to each worker to ensure the job is done in a scientific way.

4. Divide work between managers and workers. The managers apply scientific management principles to planning and supervising the work, and the workers carry out the tasks.

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Strengths Of Scientific Management. Benefits

One of the first formal divisions between workers and managers.

Contribution to efficient production methods, leading to a major global increase of living standards.

Focus on the individual task and worker level. Compare: Business Process Reengineering (process level)

Direct reward mechanisms for workers rather than pointless end-of-year profit sharing schemes.

Systematic. Early proponent of quality standards.

Suggestion schemes for workers, who should be rewarded by cash premiums.

Emphasis on measuring. Measurement enables improvement.

Pragmatic and useful in times and circumstances.

Limitations Of Scientific Management. Disadvantages

Taylorism can easily be abused to exploit human beings. Conflicts with labor unions.

Not useful to deal with groups or teams.

Leaves no room for individual preferences or initiative.

Overemphasis on measuring. No attention for soft factors.

Mechanistic. Treating people as machines.

Separation of planning function and doing.

Loss of skill level and autonomy at worker level. Not very useful in current knowledge worker environments (except as an antithesis).

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2.2 : Scientific management in practice


Bureaucratic organization

Max Weber (1864-1920), who was a German sociologist, proposed different characteristics found in effective bureaucracies that would effectively conduct decision-making, control resources, protect workers and accomplish organizational goals. Max Weber's model of Bureaucracy is oftentimes described through a simple set of characteristics, which will be described in this article.

Max Weber's work was translated into English in the mid-forties of the twentieth century, and was oftentimes interpreted as a caricature of modern bureaucracies with all of their shortcomings. However, Weber's work was indented to supplant old organizational structures that existed in the earlier periods of industrialization. To fully appreciate and understand the work of

2.3 : Max WeberMax Weber, one therefore has to keep the historic context in mind, and not "just" see his work as a caricature of bureaucratic models.Definitions1. A group of workers (for example, civil service employees of the U. S. government), is referred to as "the bureaucracy." An example: "The threat of Gramm-Rudman-Hollings cuts has the bureaucracy in Washington deeply concerned."

2. Bureaucracy is the name of an organizational form used by sociologists and organizational design professionals.

3. Bureaucracy has an informal usage, as in "there's too much bureaucracy where I work." This informal usage describes a set of characteristics or attributes such as "red tape" or "inflexibility" that frustrate people who deal with or who work for organizations they perceive as "bureaucratic."

Major Principles.

1. A formal hierarchical structure

Each level controls the level below and is controlled by the level above. A formal hierarchy is the basis of central planning and centralized decision making.

2. Management by rules

Controlling by rules allows decisions made at high levels to be executed consistently by all lower levels.

3. Organization by functional specialty

Work is to be done by specialists, and people are organized into units based on the type of work they do or skills they have.

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4. An "up-focused" or "in-focused" mission

If the mission is described as "up-focused," then the organization's purpose is to serve the stockholders, the board, or whatever agency empowered it. If the mission is to serve the organization itself, and those within it, e.g., to produce high profits, to gain market share, or to produce a cash stream, then the mission is described as "in-focused."

5. Purposely impersonal

The idea is to treat all employees equally and customers equally, and not be influenced by individual differences.

6. Employment based on technical qualifications

The bureaucratic form, according to Parkinson, has another attribute.

7. Predisposition to grow in staff "above the line."

Weber failed to notice this, but C. Northcote Parkinson found it so common that he made it the basis of his humorous "Parkinson's law." Parkinson demonstrated that the management and professional staff tends to grow at predictable rates, almost without regard to what the line organization is doing.

Criticism of Bureaucratic Organization

Bureaucratic organization is a very rigid type of organization. It does not give importance to human relations. It is suitable for government organizations. It is also suitable for organizations where change is very slow. It is appropriate for static organizations.Bureaucratic organization is criticized because of the following reasons :-

1. Too much emphasis on rules and regulations. The rules and regulations are rigid and inflexible.

2. No importance is given to informal groups. Nowadays, informal groups play an important role in all business organizations.

3. Bureaucracy involves a lot of paper work. This results in lot of wastage of time, effort and money.

4. There will be unnecessary delay in decision-making due to formalities and rules.

5. Bureaucratic model may be suitable for government organizations. But it is not suitable for business organizations because business organizations believe in quick decision making and flexibility in procedures.

6. Too much importance is given to the technical qualifications of the employees for promotion and transfers. Dedication and commitment of the employee is not considered.

7. There is difficulty in coordination and communication.

8. There is limited scope for Human Resource (HR)

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Administrative principles

Fayol was a qualified engineer and also held a high position industry: managing director of a large French company. A year after the death of Taylor, he published his most famous book entitled: General and Industrial Management.

Fayol attempted to develop a science of administration for management. In contrast to a later management expert, Peter Drucker, he believed that there was a universal science of management applicable to commerce, industry, politics, religion, war or philanthropy. He was not a theoretician and was one of the first practicing managers to draw up a list of management principles

2.4 : Henry Fayol

Fayol thought that his principles would be useful to all types of managers. He truly advocated the notion that if a manager wants to be successful, he only needs a certain set of management principles. If a manager climbed the corporate ladder and reached higher positions, this manager would depend less on technical knowledge and more knowledge of administration. When Fayol worked on his principles in France, Taylor’s scientific management was developing “independently” in the USA. Although he was trained as an engineer, he brilliantly realized that management of an enterprise required skills other than those he had studied.He emphasized the role of administrative management and concluded that all activities that occur in business organizations could be divided into six main groups.

1. Technical (production, manufacturing);

2. Commercial (buying, selling, exchange);

3. Financial (obtaining and using capital);

4. Security (protection of property and persons);

5. Accounting (balance sheet, stocktaking, statistics, costing);

6. Managerial (planning, organizing, commanding, coordinating, controlling).

He concluded that the six groups of activities are interdependent and that it is the role of management to ensure all six activities work smoothly to achieve the goals of an enterprise.

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Fayol’s 14 principles of management

1. Division of labor: work must be subdivided to facilitate specialization;

2. Authority: authority and responsibility should go hand in hand;

3. Discipline; discipline is important to develop obedience, diligence, energy and respect;

4. Unity of command: subordinates must report to one superior;

5. Unity of direction: all operations with the same objective must have one manager and one plan;

6. Subordination of individual interest to general interest: the interest of one individual or group should not dominate the interest of the enterprise as a whole;

7. Remuneration: remuneration and all other methods of payment should be fair;

8. Centralization: managers always hold final responsibility but should delegate certain authority to subordinates;

9. Scalar chain: a clear line of authority or chain of command should extend from the highest to the lowest level of an enterprise. This helps to ensure an orderly flow of information and complements the principle of unity of command;

10. Order: there is a place for everything and everything in its place. Proper scheduling of work and timetables to complete work is important. This can facilitate the channeling of materials to the right place at the right time;

11. Equity: employees should be treated with kindness and justice;

12. Stability of tenure of personnel: management should work towards obtaining long-term commitments from staff and avoid unnecessary turnover of staff which is costly and works against overall goal accomplishment;

13. Initiative: workers should feel like an active part of the organization through conceiving and executing plans in order to develop their capacity to the fullest;

14. Esprit de corps: harmony and union help to build the strength of an enterprise. It is an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication.

Some of these ideas may seem self-evident today, but can be seen as being revolutionary in Fayol’s time. Until today, his principles remain important as they continue to have a significant impact on current managerial thinking. Fayol’s main contribution was the idea that management was not a talent related to genetic hereditary, but a skill that could be taught. He created a system of ideas that

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could be applied to many areas of management and laid down basic rules for managing large organizations.

Humanistic PerspectiveA management perspective that emerged around the late nineteenth century emphasized understanding human behavior needs and attitudes in the workplace.

Mary Parker Follett and Chester Barnard were early advocates of a more humanistic perspective on management that emphasized the importance of understanding human behaviors needs and attitude in the workplace as well as social interactions and group processes. These subfields based on the humanistic perspective: the human relations movement, the human resources perspective and the behavioral sciences approach.

The Human Relations Movement

The human relations movement was based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control.

This school of thought recognized and directly responded to social pressures for enlightened treatment of employees. The early work on industrial psychology and personnel selection received little attention because of the prominence of scientific management. Then a series of studies at a Chicago electric company, which came to be known as the Hawthorne studies, changed all that.

Hawthorne studiesA series of experiments on worker productivity begun in 1924 at the Hawthorne plant of Western electric company in Illinois attributed employees increased output to manager’s better treatment of them during the study.

America has always espoused the spirit of human equality. However, this spirit has not always been translated into practice when it comes to power sharing between managers and workers. The human relations school of thought considers that truly effective control comes from within the individual worker rather than from strict, authoritarian control. This school of thought recognized and directly responded to social pressures for enlightened treatment of employees The early work on industrial psychology and personnel selection received little

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2.4 Chester Barnard 2.5 Mary Parker Follett

2.6 Hawthorne factory workers


attention because of the prominence of scientific management. Then a series of studies at a Chicago electric company, which came to be known as the Hawthorne studies, changed all that.Beginning about 1895 a struggle developed between manufacturers of gas and electric lighting fixtures for control of the residential and industrial market. By 1909 electric lighting had begun to win, but the increasingly efficient electric fixtures used less total power. The electric companies began a campaign to convince industrial users that they needed more light to get more productivity. When advertising did not work, the industry began using experimental tests to demonstrate their arguments. Managers were skeptical about the results about the results, so the Committee on Industrial Lighting (CIL) was set up to run the tests. To further add to the tests’ credibility. Thomas Edison was made honorary chairman of the CIL. In one test location – the Hawthorne plant of the Western Electric Company some interesting events occurred.

The major part of this work involved four experimental and three control groups. In all five different tests were conducted. These pointed to the importance of factors other than illumination in affecting productivity. To more carefully examine these factors, numerous other experiments were conducted. The results of the most famous study, lead to first Relay Assembly Test Room (RATR) experiments were extremely controversial. Under the guidance of two Harvard professors Elton Mayo and Fritz Roethlisberger, the RATR studies lasted nearly six years (May 10, 1927, to May 4, 1933), and involved 24 separate experimental periods. So many factors were changed and so many unforeseen factors uncontrolled that scholars disagree on the factors that truly contributed to the general

increase in performance over that time period. Most early interpretation however, agreed on one thing: Money was not the cause of the increased output. It was believed that the factor that best explained increased output was human relations. Employees performed better when managers treated them in a positive manner. However, recent re-analysis of the experiments have revealed that a number of factors were different for the workers involved and some suggest that money may well have been the single most important factor. An interview with one of the original participants revealed that just getting into the experimental group had meant a huge increase in income.These new data clearly show that money mattered a great deal at Hawthorne. In addition, worker productivity increased partly as a result of the increased feelings of importance and group pride employees felt by virtue of being selected for this important project. One unintended contribution of the experiments was a rethinking of field research practices. Researchers and scholars realized that the researcher can influence the outcome fan experiment by being closely involved with research subjects. This has come to be known as the Hawthorne effect in research methodology. Subjects behaved differently because of the active participation of researchers in the Hawthorne experiments.

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2.6 Hawthorne factory workers 2


Human Resources Perspective

The human relations movement initially espoused a dairy farm view of management—contented cows give more milk, so satisfied workers will give more work. Gradually, views with deeper content began to emerge. The human resources perspective maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. The human resources perspective combines prescriptions for design of job tasks with theories of motivation.

In the human resources view, jobs should be designed so that tasks are not perceived as dehumanizing or demeaning but instead allow workers to use their full potential. Two of the best-known contributors to the human resources perspective were Abraham Maslow and Douglas McGregor. Abraham Maslow (1908–1970), a practicing psychologist, observed that his patients’ problems usually stemmed from an inability to satisfy their needs. Thus, he generalized his work and suggested a hierarchy of needs. Maslow’s hierarchy started with physiological needs and progressed to safety, belongingness, esteem, and, finally, self-actualization needs. Chapter 15 discusses his ideas in more detail. Douglas McGregor (1906–1964) had become frustrated with the early simplistic human relations notions while president of Antioch College in Ohio. He challenged both the classical perspective and the early human relations assumptions about human behavior. Based on his experiences as a manager and consultant, his training as a psychologist, and the work of Maslow, McGregor formulated his Theory X and Theory Y McGregor believed that the classical perspective was based on Theory X assumptions about workers. He also felt that a slightly modified version of Theory X fi t early human relations ideas. In other words, human relations ideas did not go far enough. McGregor proposed Theory Y as a more realistic view of workers for guiding management thinking.

Behavioral Sciences approach

The behavioral sciences approach uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting. This approach can be seen in practically every organization. When IBM conducts research to determine the best set of tests, interviews, and employee profi les to use when selecting new employees, it is using behavioral science techniques. When Best Buy electronics stores train new managers in the techniques of employee motivation, most of the theories and fi ndings are rooted in behavioral science research.

One specific set of management techniques based in the behavioral sciences approach is organization development (OD). In the 1970s, organization development evolved as a separate fi eld that applied the behavioral sciences to improve the organization’s health and effectiveness through its ability to cope with change, improve internal relationships, and increase problem-solving capabilities.37 The techniques and concepts of organization development have since been

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broadened and expanded to address the increasing complexity of organizations and the environment, and OD is still a vital approach for managers.

Other concepts that grew out of the behavioral sciences approach include matrix organizations, self-managed teams, ideas about corporate culture, and management by wandering around. Indeed, the behavioral sciences approach has influenced the majority of tools, techniques, and approaches that managers have applied to organizations since the 1970s.

All the remaining chapters of this book contain research findings and management applications that can be attributed to the behavioral sciences approach.

Management Science PerspectiveWorld War II caused many management changes. The massive and complicated problems associated with modern global warfare presented managerial decision makers with the need for more sophisticated tools than ever before. The management science perspective emerged to address those problems. This view is distinguished for its application of mathematics, statistics, and other quantitative techniques to management decision making and problem solving. During World War II, groups of mathematicians, physicists, and other scientists were formed to solve military problems. Because those problems frequently involved moving massive amounts of materials and large numbers of people quickly and efficiently, the techniques had obvious applications to large-scale business firms.

Management scholar Peter Drucker’s 1946 book Concept of the Corporation sparked a dramatic increase in the academic study of business and management. Picking up on techniques developed for the military, scholars began cranking out numerous mathematical tools for corporate managers, such as the application of linear programming for optimizing operations, statistical process control for quality management, and the capital asset pricing model.

These efforts were enhanced with the development and perfection of the computer. IBM introduced the first automatic, general purpose computer in 1944. It was essentially a calculator with 760,000 parts and 500 miles of wire that took 11 seconds to perform simple division.40 Further developments over the 1950s and 1960s made this new tool increasingly useful as a data processor, reporting system, and data repository for managers.41 Coupled with the growing body of statistical techniques, computers made it possible for managers to collect, store, and process large volumes of data for quantitative decision making.42 Let’s look at three subsets of the management science perspective.

Operations research grew directly out of the World War II military groups (called operational research teams in Great Britain and operations research teams in the United States).43 It consists of mathematical model building and other applications of quantitative techniques to managerial problems. Operations management refers to the field of management that specializes in the physical production of goods or services. Operations management specialists use quantitative techniques to solve manufacturing problems. Some commonly used methods are forecasting, inventory modeling, linear and nonlinear programming, queuing theory, scheduling, simulation, and break-even analysis.

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Information technology (IT) is the most recent subfield of the management science perspective, which is often reflected in management information systems.

Early ages of Human Resource ManagementFor any organization, the employees are the biggest resources. That's pretty much how the term was coined. However, the practice has been in existence, seems some time before it was given a name. This article will cover information on history of human resource management.

They say that communication is the oldest existential phenomenon on earth. Well, if that's the case then human resource management (HRM) would get the second place in the sibling hierarchy. In spite of being added as a subject in management courses fairly late, HRM has been a concept that was utilized ever since human beings started following an organized way of life.

Some of the vital principles of HRM were used in prehistoric times. Like, mechanisms being developed for selecting tribal leaders. Knowledge was recorded and passed on to the next generation about safety, health, hunting, and gathering. 1000 B.C. to 2000 B.C. saw the development of more advanced HR functions. The Chinese are known to be the first to use employee screening techniques, way back in 1115 B.C. And turns out it was not Donald Trump who started "the apprentice" system. They were the Greek and Babylonian civilizations, ages before the medieval times.

HRM has seen a lot of nick naming in its age. Since it was recognized as a separate and important function, it has been called "personnel relations" then it evolved to "industrial relations", then "employee relations" and then, finally, to "human resources". I strongly believe, that human resources is the most apt name for it. It, quintessentially, proves the importance of the human beings working in the organization.

With the Industrial Revolution, came the conversion of the US economy from agriculture-based to industry-based. This led them to require an extremely well-organized structure. Further, this led them to recruit a lot of people. More so, the industrial revolution brought in maddening amounts of immigration. Again, to create employment for all the immigrants, recruitment and management of the recruited individuals gained vitality. As such, there was a blaring need for Human Resource Management.

Early HR management, in general, followed a social welfare approach. It aimed at helping immigrants in the process of adjusting to their jobs and to an "American" life. The main aim behind these programs was to assist immigrants in learning English and acquiring housing and medical care. Also, these techniques used to promote supervisory training to ensure an increase in productivity.

With the advent of "labor unions" in the 1790s, the power in the hands of the employees multiplied considerably and increased at a rapid pace by the 1800s and furthermore in the 1900s. This led to the HR department being more capable of politics and diplomacy. The two feats that were quintessential to the importance of HR were; the fact that it was the HR department that got the management and the labor unions to come on common grounds. They basically worked on getting the management to see things from the labor perspective and grant them medical and educational

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benefits. The other would be Frederick W. Taylor's (1856-1915) Scientific Management. This book had tremendous impact on attaining better productivity from low-level production workers.

B.F. Goodrich Company were the pioneers in designing a corporate employee department to address the concerns of the employees in 1900. National Cash Register followed suit in 1902 by forming a separate department to handle employee grievances, record keeping, wage management and other employee-related functions. Personnel Managers started seeing more sunshine since the Wagner's Act (aka National Labor Relations Act) in 1935. There was a shift in focus from worker's efficiency to efficiency through work satisfaction, thanks to the Hawthorne studies around the 1930s to 1940s.

Between the 1960s and 1970s, the HRM movement gained further momentum due to the passing of several acts like the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA), and the Occupational Safety and Health Act of 1970. Now, the HR department was the apple of the corporate eyes because, the corporate placed a lot of importance on HR management to avoid plausible law suit.

So by the end of the 1970s, HRM had taken over the world! Almost all big and medium scale industries had a department to manage their recruitment, employee relations, record-keeping, salaries and wages, etc. Towards the 1980s, the importance of HR continued to intumesce for several reasons like increase in skilled labor, training, regulation compliance, dismissal, etc. The HR managers were the ones who did the hiring and the firing.

In today's date, HR has the same importance as the other departments, in some corporate, it has more. With the constant increase in education, technology and frequent fluctuations in economic status and structures.

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Stages to Modern HRM The Industrial Revolution

o The momentum for the industrial revolution grew through the 17th century.o Agricultural methods were continually improving, creating surpluses that were used

for trade.o In addition, technical advances were also occurring, for example the Spinning Jenny

and the Steam Engine.o These advances created a need for improved work methods, productivity and quality

that led to the beginning.

All the way back in the mid-18th century, the Industrial Revolution begins which was characterized by the development of machinery the linking of power to machines and the establishment of factoriesemploying many workers. The result was an increase in the jobspecialization and a great acceleration in the development of business and commerce.

in this time, labor was considered a commodity to be bought and sold and the laissez faire political philosophy prevailing in England kept government away from intervening in the plight of workers. Because of the way in which workers were used, they had organized themselves to bring about some alleviation in their poor condition. This results to the gradual emergence of more systematic attention to job design, choice of workers, provision of pay and benefits and welfare measures. Along with the advent of collective bargaining between labor and management and this development lay to the foundations of the HRM concepts as we understand them today.

Trade Unionism o During the late 1700's and early 1800'sgovernments began to feel pressure from the

working class masses who started to question and defy the power of the aristocracy.o There were also attempts to form general unions of all workers irrespective of trade.

William Benbow (a Lancashire shoemaker),Robert Owen and many others looked upon trade unionism not just as a means for protecting and improving workers' living standards, but also as a vehicle for changing the entire political and economic order of society.

Scientific Management

The famous name associated with this movement was Frederick Winslow Taylor during the 1800s and early 1900s. He was an instrumental in bringing the logic of efficiency to management. Taylor, the Gilberths, Gantt and others were involved, more or less simultaneously, in the search for principles of efficient operation, measurement standardization of performance, substitution of facts and the like. The organization was considered as a machine which could be made more efficient if universal principles could be applied. Scientific Management was founded with the principles of precision. Taylor, with the stopwatch as his Bible, began his experiments in the steel industry at the Midvale and Bethlehem plants in 1885.

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Human Relations Movement o It argues that people are not just logical decision makers but have needs for creativity

support, recognition and self-affirmationo It presents an alternative and opposite approach to scientific management as it

focuses on the individual and not the task.

Human Resource Approach Behavioral Sciences

‘Frederick Hertzberg’, ‘Maslow’, ’likert’ and other theories related with Motivation and Leadership came into existence.

Human Resource Specialist & Employee Welfare

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Evolution of the Concept of HRM

2.7 : Evolution of Human Resource Management

The various stages or phases in the transition or evolution of Personnel Management into Human Resource Management are shown below:

The Commodity ConceptLabour was regarded as a commodity or a tool to be bought or sold.

The factor of Production ConceptLabour is like any other factor of production, viz, money, materials, land, etc.

The Paternalistic conceptManagement must assume a fatherly or protective attitude towards employee It means satisfying the various needs of employees as parents meet the requirements of their child

The Goodwill ConceptWelfare measures like safety, first aid, lunch room, rest room will have a positive impact on worker’s productivity

The Humanitarian ConceptTo improve productivity, physical, social and psychological needs of workers must be fulfilled and met.

The Human Resource ConceptEmployees are the most valuable assets in the organization

The Emerging ConceptEmployees should be accepted as partners of the organization They should belong to the organization as they are running their own organization

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Personal managementPersonal management is related to administrative discipline of hiring and developing employees so that they become more valuable to the organization. It includes (1)conducting job analyses, (2)planning personnel needs, and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8)resolving disputes, (9) communicating with all employees at all levels.

It is the part of management that is concerned with people and their relationships at work. Personnel management is the responsibility of all those who manage people, as well as a description of the work of specialists. Personnel managers advise on, formulate, and implement personnel policies such as recruitment, conditions of employment, performance appraisal, training, industrial relations, and health and safety. There are various models of personnel management, of which human resource management is the most recent.

Differences between Personal Management (PM) & Human Resources Management (HRM)

A primary goal of human resources is to enable employees to work to a maximum level of efficiency. So, when a difference between personnel management & human resources is recognized, human resources are described as much broader in scope than personnel management.

Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization.

Personnel management includes administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involve ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce.

Personnel management is considered an independent function of an organization. It is typically the sole responsibility of an organization’s personnel department. Human resource management, on the other hand, tends to be an integral part of overall company function. With human resources, all of an organization’s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.

Personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators.

There are fifteen (15) differences between Personal Management (PM) and Human Resource Management (HRM). Those are as follows

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1. Personnel mean employed persons of an organization. Management of these people is PM. HRM is the management of employee’s knowledge, aptitude, abilities, talents, creative abilities and skills / competencies

2. PM is traditional, routine, maintenance oriented, administrative function whereas HRM is continuous, ongoing development function aimed at improving human processes.

3. PM is an independent function with independent sub functions. HRM follows the system thinking approach. It is not considered in isolation from the larger organization and must take into account the linkages and interfaces.

4. PM is treated like a less important auxiliary function whereas HRM is considered a strategic management function.

5. PM is reactive, responding to demands as and when they arise. HRM is proactive, anticipating, planning and advancing continuously.

6. PM is the exclusive responsibility of the personnel department. HRM is a concern for all managers in the organization and aims at developing the capabilities of all line managers to carry out the human resource related functions.

7. The scope of PM is relatively narrow with a focus on administrative people. The scope of HRM views the organization as a whole and lays emphasis on building a dynamic culture.

8. PM is primarily concerned with recruitment, selection and administrative of manpower. HRM takes effort to satisfy the human needs of the people at work that helps to motivate people to make their best contribution.

9. Important motivators in PM are compensation, rewards, job simplification and so on.HRM considers work groups, challenges and creativity on the job as motivators.

10. In PM improved satisfaction is considered to be the cause for improved performance but in HRM it is the other way round (performance is the cause and satisfaction is the result).

11. In PM, employee is treated as an economic unit as his services are exchanged for wages/salary. Employee in HRM is treated not only as economic unit but also a social and psychological entity.

12. PM treats employee as a commodity or a tool or like equipment that can be bought and used. Employee is treated as a resource and as a human being.

13. In PM employee are considered as cost centers and therefore, management controls the cost of labour, HRM treats employees as profit centers and therefore, the management invests in this capital through their development and better future utility.

14. PM’s angle is that employees should be used mostly for organizational benefits and profits. HRM angle emphasizes on the mutual benefits, both of employees and their families and also the company.

15. PM preserves information and maintains its secrecy. In HRM communication is one of its main tasks which take into account vertical, lateral and feedback type communication.

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Chapter Three : Conclusion

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Conclusion for the Evolution of HRM ConceptThe history of Human Resource Management has progressed through the ages from times when people were abused in slave like working conditions to the modern environment where people are viewed as assets to business and are treated accordingly.

The Human Resource function will have to adapt with the times as staff become more dynamic and less limited in their roles and bound by a job description.

Organizations are now defined as :

The core competencies within the organization The people within the organization The organizational culture of 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

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evolution of human resource mangement

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