Evolution of Human Resource Management

Period before Industrial Revolution – The society was primarily an agriculture

economy with limited production. Number of specialized crafts was limited and was

usually carried out within a village or community with apprentices assisting the master

craftsmen. Communication channel were limited.

Period of Industrial Revolution (1750 to 1850) – Industrial revolution marked the

conversion of economy from agriculture based to industry based. Modernization and

increased means of communication gave way to industrial setup. A department was set

up to look into workers wages, welfare and other related issues. This led to emergence

of personnel management with the major task as

- Worker’s wages and salaries

- Worker’s record maintenance

- Worker’s housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790) – The

works working in the industries or factories were subjected to long working hours and

very less wages. With growing unrest , workers across the world started protest and this

led to the establishment of Labour unions. To deal with labour issues at one end and

management at the other Personnel Management department had to be capable of

politics and diplomacy , thus the industrial relation department emerged.

Post Industrial revolution – The term HRM saw a major evolution after 1850. Variousstudies were released and many experiments were conducted during this period whichgave HRM altogether a new meaning and importance. A brief overview of majortheories release during this period is presented below.

•Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to theevolution of scientific human resource management approach which was involved in- Worker’s training- Maintaining wage uniformity- Focus on attaining better productivity.

•Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940). –Observations and findings of Hawthrone experiment shifted the focus of Humanresource from increasing worker’s productivity to increasing worker’s efficiencythrough greater work satisfaction.

•Douglas McGregor Theory X and Theory Y (1960)

•Abraham Maslow’s Hierarchy of needs ( 1954) – These studies and observations ledto the transition from the administrative and passive Personnel Managementapproach to a more dynamic Human Resource Management approach whichconsidered workers as a valuable resource.

Table 1: Milestones in the Development of Human Resource Management

• 1890-1910

• Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees.

• 1910-1930

• Many companies establish departments devoted to maintaining the welfare of workers. The discipline of industrial psychology begins to develop. Industrial psychology, along with the advent of World War I, leads to advancements in employment testing and selection.

• 1930-1945

• The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity.

• 1945-1965

• In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage.

As a result of these principles and studies , Human resource

management became increasingly line management function , linked

to core business operations. Some of the major activities of HR

department are listed as-

Recruitment and selection of skilled workforce.

Motivation and employee benefits

Training and development of workforce

Performance related salaries and appraisals.

Strategic Human Resource Management Approach

With increase in technology and knowledge base industries and as a

result of global competition , Human Resource Management is

assuming more critical role today . Its major accomplishment is

aligning individual goals and objectives with corporate goals and

objectives. Strategic HRM focuses on actions that differentiate the

organization from its competitors and aims to make long term impact

on the success of organization.

THE HISTORICAL BACKGROUND OF

HUMAN RESOURCE MANAGEMENT

Human resource management has

changed in name various times

throughout history. The name change

was mainly due to the change in

social and economic activities

throughout history.

THE HISTORICAL BACKGROUND OF

HUMAN RESOURCE MANAGEMENT

Human resource management has

changed in name various times

throughout history. The name change

was mainly due to the change in

social and economic activities

throughout history.

•It all started when Mary Wood was asked to start engaging girls

during the 1st world war.

• In the 1st world war personnel development increased due to

government initiatives to encourage the best use of people.

• In 1916 it became compulsory to have a welfare worker in

explosive factories and was encouraged in munitions factories.

•A lot of work was done in this field by the army forces.

•The armed forces focused on how to test abilities and IQ along

with other research in human factors at work.

•In 1921 the national institute of psychologists established and

published results of studies on selection tests, interviewing

techniques and training methods.

Recruitment and Selection

Acquisition of other Personnel Activities

•During the 2nd world war the focus was on

recruitment and selection and later on training;

improving morale and motivation; discipline;

health and safety; joint consultation and wage

policies.

•This meant that a personnel department had

to be established with trained staff.

Legislation

•In the 1970's employment legislation increased

and the personnel function took the role of the

specialist advisor ensuring that managers do not

violate the law and that cases did not end up in

industrial tribunals

Flexibility and Diversity•In the 1990's a major trend emerged where employers were seeking increasing flexible arrangements in the hours worked by employees due to an increase in number of part-time and temporary contracts and the invention of distance working. •The workforce and patterns of work are becoming diverse in which traditional recruitment practices are useless.• In the year 2000, growth in the use of internet meant a move to a 24/7 society. •This created new jobs in e-commerce while jobs were lost in traditional areas like shops. •This meant an increased potential for employees to work from home. •Organizations need to think strategically about the issues these developments raise. HRM managers role will change as changes occur.

Information Technology

•Some systems where IT helps HRM are: Systems for e-

recruitment; On-line short-listing of applicants;

Developing training strategies on-line; Psychometric

training; Payroll systems; Employment data; Recruitment

administration; References; Pre-employment checks.

•IT helps HR managers offload routine tasks which will

give them more time in solving complex tasks.

• IT also ensures that a greater amount of information is

available to make decisions.

Evolution of Human Resource

Industrial Revolution

Trade Unionism

Social responsibility era

Scientific Management Era

Human Relations Era

Behavioral Science Era

System Approach Era

Contingency Approach Era

HUMAN RESOURCE POLICIES :--

Definition Policy : A set of policies are principles, rules,

and guidelines formulated or adopted by

an organization to reach its long-term goals and

typically published in a booklet or other form that is widely

accessible.

Policy and Procedure :

Policies and procedures are designed to influence and

determine all major decisions and actions, and

all activities take place within the boundaries set by them.

Procedures are the specific methods employed to express

policies in action in day-to-day operations of the organization.

•Together, policies and procedures ensure that a point of

view held by the governing body of an organization is

translated into steps that result in an outcome compatible with

that view.

Human Resource Policies

Human resource policies aresystems of codified decisions,established by an organization, tosupport administrative personnelfunctions, performancemanagement, employee relationsand resource planning.

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Purpose• HR policies allow an organization to be clear with

employees on:

– The nature of the organization

–What they should expect from the company

–What the company expects of them

–How policies and procedures work at your company

–What is acceptable and unacceptable behavior

– The consequences of unacceptable behavior

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Human Resource Policies

• Each policy should include all the elements needed for easy revision and effective implementation:

– Carefully researched policy language,

– Thorough analysis of underlying management issues, and

– Comprehensive legal documentation with clear explanations.

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Human Resource Policies• Analyze about each potential policy:

–How have we handled this issue in the past?

– Does the size of our workforce justify having a policy about this issue?

– Are we willing to invest the time it takes to keep the policy up to date?

– What do we hope to accomplish with this policy? What are the outcomes?

– Will this policy foster something our organization believes in ?

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Human Resource Policies• Analyze about each potential policy:

–How have we handled this issue in the past?

– Does the size of our workforce justify having a policy about this issue?

– Are we willing to invest the time it takes to keep the policy up to date?

– What do we hope to accomplish with this policy? What are the outcomes?

– Will this policy foster something our organization believes in ?

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Functions of HR Department

• Workforce Management

• Recruitment and Selection

• Training and Development

• Compensation and Benefits

• Performance Management

• Labor Relations

• Personnel Administration

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Succession Planning

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• Assess the potential vacancies in leadership and other key positions

• Assess the readiness of current staff to assume the positions

• Develop strategies to address these needs based on the skill gaps

HIRING

/

RECRUITMENT

&

SELECTION

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Key Aspects of Hiring Policy

· Recruiting Sources· Selection and Hiring Procedures· Offer Letter· Reference Checking· Background Investigations· Rejecting An Applicant· Equal Employment Opportunity and Hiring· Physical and Educational Requirements· Medical Inquiries and Examinations

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Sources of Recruitment

• Internal Sources

– Retrenched Employees

– Retired Employees

– Dependent of deceased employees

– Internal Job Postings

– Promotions

– Demotions

– Moving across verticals

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Sources of Recruitment

• External Sources

– Placement Agencies and Consultants

– Campus Recruitments

– Off-campus Recruitments

– Employees working in other organizations

– Employment Agencies

– Referrals

– Walk-Ins

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TRAINING

&

DEVELOPMENT

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Training and Development

• The field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings.

• The objective is to make sure the availability of a skilled and willing workforce to an organization

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Training and Development policy structure

• introduction/definitions/scope (purpose and reach of policy)

• cultural/philosophical (values, vision, ethos, guiding principles, etc)

• legal (health and safety, discrimination, etc)

• people (where people stand in organizational priorities, input, care, etc)

• methods (career development, succession)

• systems/tools (training manuals, knowledge and information management

• process/operations (how T&D relates to operations)

• financial (planning, budgets, prioritization, etc)

• responsibility/authority (how T&D is managed, enabling voluntary and extra T&D)

• social responsibility (CSR, ethics, environment, sustainability, diversity)

• review and measurement (accreditation, qualifications, independent audit, etc)

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Compensation and Benefits

• Employee benefits in kind are various non-wage compensations provided to employees in addition to their normal wages or salaries.

• Some of these benefits are:

– HRA

– Medical Reimbursement

– Insurance (health, dental, life etc.)

– Conveyance

– Retirement Benefits

– Profit sharing etc.

• The Compensation policy should state the proportion of fixed and variable components.

• The policy should be formulated considering the tax implications.

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Performance Management

• A formal system for evaluating employee performance can help the employer identify and correct performance problems, plan employee career development, assess readiness for transfer or promotion, determine compensation, and improve productivity by communicating goals and expectations to employees.

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Policy Structure

· Performance Appraisal· Frequency of Appraisals· Informal Discussion· Significant Events· Supervisor Training· Factors to be Appraised· Supervisors’ Recommendation and Documentation· Action Plan· Performance Goals· Employee’s Opportunity to Comment· Final Review· Timing of Evaluations· Accurate and Fair Evaluations· Negligent Evaluation and Performance Review Defamation

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Grievance Redressal

• Objective

– To create a work environment, which would be free of hostility and try breed in a work culture which propagates a free and open thought process, encouraging growth and harmony free from encumbrance of force.

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Advantages of Good HR Policies

• Curbing litigation

• Communication with employees

• Communication with managers and supervisors

• Time Savings

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Job Analysis Job Description

Job Specification

Recruiting and Selection Policies

Performance Appraisal Policies

Compensation Policies

Training and Development

Policies

102

What is a Job? Job

a task or piece of work, especially

one that is paid

Position

The different duties and

responsibilities performed by

only one employee

Job Family

A group of individual jobs with

similar characteristics

Job

Job Job Job

Job Specification

Statement of the needed knowledge, skills, and

abilities (KSAs) of the person who is to perform the

job

Job Description

Statement of the tasks, duties, and responsibilities

(TDRs) of a job to be performed

Job Analysis

The process of obtaining information about jobs by

determining what the duties, tasks, or activities of jobs

are.

HR managers use the data to develop job

descriptions and job specifications that are the basis

for employee Recruitment & Selection, performance

appraisal and development.

Definitions (Continued)

Job analysis - Systematic process of

determining the skills, duties, and

knowledge required for performing jobs in

an organization

Job description – document providing

information regarding tasks, duties, and

responsibilities of job

Job specification – minimum

qualifications to perform a particular job

5

Job Analysis

Goal

Determine the duties and

responsibilities of a particular job

Determine how the job relates to other

jobs and the level of importance of the

job

Determine the necessary qualifications

in order to perform the job

Determine the working conditions

associated with the job.

Job Requirements

Its Importance

Recruitment

Selection

Performance

Appraisal

Training and

Development

Compensation

Management

Determine recruitment qualifications

Provide job duties and job specifications for

selection process

Provide performance criteria for evaluating

employees

Determine training needs and develop

instructional programs

Provide basis for determining employee’s rate

of pay

Types Of Job Analysis Information

Considerable information is needed, such as:

Worker-oriented activities

Machines, tools, equipment, and work aids used

Job-related tangibles and intangibles

Work performance

Job content

Personal requirements for the job

Work activities

Working conditions

Machines and equipment

Job performance Operations

Standards

Time

Experience, training, and skills

Supervision and promotion patterns

What is analyzed?

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Job Analysis: A Basic Human Resource Management Tool

Tasks Responsibilities Duties

Job

Analysis

Job

Descriptions

Job

Specifications

Knowledge Skills Abilities

Human Resource

Planning

Recruitment

Selection

Training and

Development

Performance Appraisal

Compensation and

Benefits

Safety and Health

Employee and Labor

Relations

Legal Considerations

Job Analysis for Teams

The

Process

of Job

Analysis

Summary of Types of Data Collected Through Job Analysis

Work Activities – work activities and processes; activity records (in

film form, for example); procedures used; personal responsibility

Worker-oriented activities – human behaviors, such as physical

actions and communicating on the job; elemental motions for

methods analysis; personal job demands, such as energy

expenditure

Machines, tools, equipment, and work aids used

Job-related tangibles and intangibles – knowledge dealt with or

applied (as in accounting); materials processed; products made or

services performed

Work performance – error analysis; work standards; work

measurements, such as time taken for a task

Job context – work schedule; financial and nonfinancial incentives;

physical working conditions; organizational and social contexts

Personal requirements for the job – personal attributes such as

personality and interests; education and training required; work

experience

14

Sources of job analysis

informaiton

Manager

Incumbent

SME

Job analyst

DOT Dictionary of Occupational Titles

O*NET

16

18

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Job Analysis and the Law

Fair Labor Standards Act – employees categorized as exempt or nonexempt

Equal Pay Act – similar pay must be provided if jobs are not substantially different as shown in job descriptions

20

Job Analysis and the Law

(Continued)

Civil Rights Act – basis for adequate defenses against unfair discriminations charges in selection, promotion, and other areas of HR administration

Occupational Safety and Health Act – specify job elements that endanger health or are considered unsatisfactory or distasteful by most people

Americans with Disabilities Act – make reasonable accommodations for disabled workers