WHAT IS HRM; EVOLUTION OF HRM; THE CHANGING ENVIRONMENT, AND SUBSEQUENT ROLE OF HRM.

1

A DEFINITION OF HRMA DEFINITION OF HRMHuman Resource Management is a management function Human Resource Management is a management function that

helps managers to recruit, select, train and develop pople for an organization. Obviously, HRM is concerned with the people’s dimension in organizations.

Again, it is a process of bringing people and organization together so that the goals of each are met. It is that part of the management process which is concerned with the management of human resource in an organization.

“HRM means activities necessary for staffing the organization and sustaining high employee performance.” (S.P Robbins)

According to Dessler, it is the process of acquiring, training, appraising and compensating employees, and of attending to their labor relations, health & safety and fairness concerns.

2

5 FUNCTIONS OF 5 FUNCTIONS OF MANAGEMENT PROCESSMANAGEMENT PROCESS

3

Key principles and practices associated with HRM date back to the beginning of mankind. Mechanisms were developed for the selection of tribal leaders, for example.

More advanced HRM functions were developed as early as 1000 and 2000 B.C. Employee screening tests have been traced back to 1115 B.C. in China, for instance.

The terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources " 4

HISTORY AND EVOLUTION OF HR There were two other particularly important

contributing factors to the origination of modern HRM during 1880s to 1940s.

Industrial welfare movement which represented a shift in the way that managers viewed employees—from nonhuman resources to human beings.

The second factor was Frederick W. Taylor's (1856-1915)Scientific Management, a landmark book that outlined management methods for attaining greater productivity from low-level production workers to top level management people. 5

HISTORY AND EVOLUTION OF HR

In the 1960s and 1970s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA)

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

6

HISTORY AND EVOLUTION OF HR

The whole evolutionary activities and concept of HR recently help to shift the orientations: such as

- changes from personnel to human resources - from administration to management - from human relations to organizational

effectiveness. So now HR is aligned with Senior Management

level.

HR also now has more input on business strategies - training, safety, globalization, etc 7

EVOLUTION IN HR IN BANGLADESH

There is for the evolution of HRM in Bangladesh. But it is assumed that Before 1970 the whole activities was maintained directly under the administrative department

1970-80: the importance of Personnel management or HRM is being recognized for the settlement of some industrial disputes under the Factory, Industrial & labor law.

1980 to 90: The Personnel management concept has started gaining recognition

1990 to till date: After 1990 The HR concept has started narrowly. From 1997 to 2000 HR concepts tried to achieve the recognition. After that it has recognized. Some organization started to set HR department. Though till today this concept is struggling to achieve the mass recognition.

8

HR PRACTICES IN BD

HR practice in Bangladesh is getting better now than the past. But there are scope to be improved. The following areas on which the concept has been improvably practiced:

Functional Concept: HR role was concentrated to hiring firing and

letter issuance-dispatching-filing stageNow change to Employee motivation,

Employee development, employee retention, facilitating organizational development initiatives etc. 9

HR PRACTICES IN BD

Investment Concept: Treated as a cost centre, so no

initiative for the development of HRNow HR treats as investment centre.

As such in many organizations, employee development is viewed as part of business plan.

10

HR PRACTICES IN BD

Relationship: Employer - Employee relationships is better than the past. But till now there are a lot of scope to improve in the employer-employee relation as well as employee-employee relations.

Recognition: Employers now started to recognition of the employees’ participation in business planning, major decision making and organizational change process has increased. But till today this practice is suffering with lots of limitations

Formation of the Bangladesh Society for Human Resources Management (BSHRM)- A platform for HR Professionals in Bangladesh

11

FACTORS AFFECTING HRM PRACTICE IN BANGLADESH

Attitude of top management towards employees Weakness inbuilt in the job Nature of the Labor forces Weak & Unenlightened labor movement Lack of qualified & experienced people in the

right profession Lack of Long range planning Lack of support from line managers/top level

12

IMPORTANCE/ SIGNIFICANCE/ OBJECTIVES OF HRMHRM is not a separate part of management rather “a basic

function of management allowing all levels and all types of management”----Pigors and Myers.

HRM is the necessary part of the organizing function of management- Selecting, training, and evaluating the work force.

As an important strategic tool HRM helps establish an organization’s sustainable competitive advantage.

It adds value to the firm Meeting economic competition Controlling labor cost and overall cost of production Making valuable investment effective Keep pace with the technological development Increase in total employment and efficient workforce of the country Multinational operation becomes easier

13

A line function - direct activities in own department A coordinated function - ensuring line manager’s duties Staff functions - carrying out ‘innovator’ role by providing up-to-

cc date information - assisting line managers in HR activities - playing ‘employee advocacy’ role by

representing employee interests 14

HR MANAGER’S 3 DUTIES INCLUDE:-

FUNCTIONS OF HRM:

15

FUNCTIONS OF HRM

16

1. Acquisition: It means the estimation of demand and supply of labors. This function includes-Human resource planningRecruiting -Internal -ExternalEmployee socialization

2. Development: Development as a function of HRM means employee training, Management development, and career development.

3.Motivation: Motivation is a set of forces- drive, desire, wish that influence to exert high level of effort to perform tasks. It includes-Job designPerformance evaluationRewardsJob evaluationCompensation &benefits Discipline

4.Maintenance: The final function of HRM is Maintenance. It is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organization. It includes-Safety & healthEmployee Relations

Functions of HRMFunctions of HRM

17

CHALLENGES TO HRM

18

Globalization Sales Expansion

New Foreign Products

Cut labor costs

Forming Partnership

Technological Trends

Trends in nature of workforce High Tech Jobs

Service Jobs

Knowledge work and Human Resource capital

Deregulation = Freedom of owning

Ethical Issues

Managing within the Law Equal employment laws Occupational safety and health

laws Labor laws

Demographic Trends Gen ‘Y’

Retirees

Non traditional workers

Creating High Performance Work System (HPWS)

Again, HR strategies are the courses of action HR uses to help the company achieve its strategic aims. For example Fed Ex’s strategic aims to achieve superior levels of customer service and high profitability through committed employee. Its basic HR OBJECTIVE is thus to build a committed workforce…….

19

STRATEGIC ROLE OF HRM

HRM should be strategic business partner of an organization

Should support business strategies In addition to internally representing the employees

(people dimension), should also have external focus Forward thinking and proactive Assist the organization in creating and maintaining

competitive edge Should try to work as profit center and economies its

operations Should add value to the organization

20