EVOLUTION OF HRM

EVOLUTION OF HRMThere is no magic in the success of companies.The secret of their success is simply the way that treat their employeesAkio MoritaFounder, Sony Corporation

HR HISTORY E V O L U T I O N O F H R M Hiring & Firing

Unions emerged: Labour relations specialists Welfare Subspecialties as : Staffing /Training/Compensation/Appraisal System

Late 70s HR professionals mastered the activities of Staffing, Development, Appraisals & Rewards.

By 1980s organizational design and communication, got added

HOW IS PM DIFFERENT FROM HRME V O L U T I O N O F H R MPersonnel Management and HRM differ in scope

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

HOW IS PM DIFFERENT FROM HRME V O L U T I O N O F H R M

ESSENTIALS IN THE DEFINITION OF HRME V O L U T I O N O F H R M It is people who staff the organization and manage organizations

HRM involves application of management functions and principals. 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

DEFINITIONS OF HRME V O L U T I O N O F H R M 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. 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.

DEFINITIONS OF HRME V O L U T I O N O F H R M 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.

MANAGERIAL FUNCTIONS OF HRME V O L U T I O N O F H R M Planning: Determination in advance of a personal program that will contribute to goals established for the enterpriseOrganising : 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 effectivelyControlling: Observation of action and its comparison with plans and correction of any deviation that may occur at any time.

OPERATIVE FUNCTIONS OF HRME V O L U T I O N O F H R M Procurement: Obtaining proper kind and number of personnel necessary to accomplish organizational goals Development: Increasing the skill through training that is necessary for proper job performanceCompensation: 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

THE HUMAN RESOURCE CYCLEE V O L U T I O N O F H R MHRM Concept Michigan SchoolSelection:Matching available human resources to jobsSelectionPerformanceManagementPerformanceRewardsDevelopmentAppraisal:Performance managementRewards:It must reward short as well as long-term achievementsDevelopment:Developing high quality employees

THE HARVARD FRAMEWORK FOR HRME V O L U T I O N O F H R MHRM policiesEmployee influenceHuman resource flowReward systemsWork systemsHRM outcomesCommitmentCompetenceCongruenceCost - effectivenessLong-termconsequencesIndividual well-beingOrganizational effectivenessSocietal well-being

Stakeholder InterestsShareholdersManagementEmployee groupsGovernmentCommunitySituational factorsWorkforce characteristicsBusiness strategy and conditionsManagement philosophyLabour marketUnionsTasks technologyLaw & societal values

THE 5-P MODEL OF STRETEGIC HRME V O L U T I O N O F H R M

Organization Strategy Strategic Human Resources Management Activities

Human Resources Philosophy - Expresses how to treat and value peopleHuman Resources Policies - Guidelines for action on people related business and HR programsHuman Resources Programs - Help to address and change major people related business issuesHuman Resources Practices - Motivates needed role behaviorHuman Resources Processes - Defines how these activities are carried out Internal Characteristics External Characteristics Strategic business needs

HUMAN RESOURCE WHEELSE V O L U T I O N O F H R M

HR areas output:Quality of work lifeProductivity readinessfor changeUnion/ LaborrelationsEmployeeassistanceT& DPersonnelresearch andinformationsystemsHRPSelectionand staffingCompensation/BenefitsOrganization/Job designThe American Society for Training & Development (ASTD) has developed a Human Resource Wheel in 1983 highlighting different functions of HRM leading to quality of work life, productivity and readiness for change.

HUMAN RESOURCE WHEELSE V O L U T I O N O F H R MT & D focusIdentifying, assessing and through planned learning---helping develop the key competencies which enable individuals to perform current or future jobs.OD focusAssuring healthy inter- and inter-personal relationships and helping groups initiate and manage change.Organization/Job design focusDefining how tasks, authority and systems will be organized and integrated across organization units and in individual jobs.HRP focusDetermining the organizations major HR needs strategies and philosophies.

HUMAN RESOURCE WHEELSE V O L U T I O N O F H R MSelection and staffingMatching people and their career needs and capabilities with jobs and career paths.Personnel research and information systemsAssuring a personal information base.Employee assistance focusProviding counseling to individual employees, for personal problem-solving.Union/Labour relations focusAssuring healthy union/organization relationships.Compensation/Benefits focusAssuring compensation and benefits fairness and consistency.

Nature of HRMHuman Resource PlanningJob analysisRecruitmentSelectionPlacementTraining &developmentRemunerationMotivationParticipative ManagementCommunicationSafety, health & WelfarePromotions etc.Industrial relations

Trade UnionismDisputes & their settlementInternational HRMEthical issues in HRM

Environment

Organisational Goals

Competent &

Willing work

forceTHE HRMMODEL

HUMAN RESOURCE FUNCTIONSE V O L U T I O N O F H R MRecruiting and selecting personnel to fill specific jobs within an organization.Carrying out job analysis to establish the specific requirements for individual jobs within an organization.Forecasting the human resource requirements necessary for the organization to achieve its objective both in terms of number of employees and skills.Developing and implementing a plan to meet the manpower requirements.Orienting and training employees.Designing and implementing management and organizational development programmes.Designing systems for appraising the performance of individuals.

HUMAN RESOURCE FUNCTIONSE V O L U T I O N O F H R MDesigning and implementing compensation system for all employee and have systems for promotions and transfer Departmental administration programs Planning, record keeping, reporting ,policy formulation , and general administration.Implement activities to ensure proper health and sanitation and safe work placeAdherence to Government norms and regulationsEmployee communication , personal counseling, personal research etc Assisting employees in developing career plans.

CHALLENGES FACED BY HRME V O L U T I O N O F H R MGlobalization

Build value chain for business competitivenessTechnology Attracting and retaining intellectual capitalProfitable through cost and growthCapability FocusChange

CONCLUSIONE V O L U T I O N O F H R MOrganizations are now defined as : The core competencies within the organization The people within the organization 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

Sheet1

Development orientedConsists of inter-dependant parts

Proactive, trying to anticipate & get ready with appropriate responsesResponsibility of all managers in the organisaitonEmphasis on higher order needs eg. Empowering peopleBetter use of human resources leads to improved satisfaction & morale

Tries to develop the organisation as a whole & its cultureOrientationStructure

Philosophy

Responsibility

Motivators

Outcomes

Aims Maintenance orientedAn independent function with independent sub-functionsReactive, responding to events when they occurExclusive responsibility of personnel department Emphasis on monetary rewardsImproved performance is a result of improved satisfaction & morale Tries to improve the efficiency of people & administrationHRDPoints of distinctionPersonnel Function

Sheet2PERSONNEL FUNCTIONPOINTS OF DISCUSSIONHRMMaintenance orientedOrientationDevelopment orientedAn independent function with independent sub-functionsStructureConsists of inter-dependant partsReactive, responding to events when they occurPhilosophyProactive, trying to anticipate & get ready with appropriate responsesExclusive responsibility of personnel departmentResponsibilityResponsibility of all managers in the organisaitonEmphasis on monetary rewardsMotivatorsEmphasis on higher order needs eg. Empowering peopleImproved performance is a result of improved satisfaction & moraleOutcomesBetter use of human resources leads to improved satisfaction & moraleTries to improve the efficiency of people & administrationAimsTries to develop the organisation as a whole & its culture

Sheet3