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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 ??