Evolution of the concept of HRM - PowerPoint Presentation

Slide1

Evolution of the concept of HRM

Introduction

Evolution

The early part of the century saw a concern for improved efficiency through careful design of work.

During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity.

Recent decades have

focussed

on the demand for technical personnel, increased concern for the quality of working life, total quality management and renewed emphasis on productivity.

Evolution of the Personnel Function

Concept

What is it all about?

The Commodity concept

Labour

was regarded as a commodity to

be bought and sold. Wages were based on demand and supply, government did very little to protect workers.

The factor of Production

concept

Labour

is like any other factor of production like money, materials, land etc. Workers are like machine tools.

The Goodwill concept

Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers productivity

The

Paternalistic concept

Management must assume a fatherly and protective attitude towards

employees. Paternalism does not mean merely providing benefits but satisfying various needs of the employees as parents meet the requirements of the children.

Evolution of the Personnel Function

Concept

What is it all about?

The Humanitarian concept

To improve productivity,

physical, social and psychological needs of workers must be met. The

organisationnis

a social system that has both economic and social dimensions

The Human Resource concept

Employees

are the most valuable assets of an

organisation

. There should be a conscious effort to

realise

organisational

goals by satisfying needs and aspirations of employees

The Emerging concept

Employees should be accepted as partners,

must offer better quality of working life and offer opportunities to people to exploit their potential fully.

Growth in India

Early Phase: Though HRM is a discipline of recent growth, it had its origin dating back to 18 B.C for

eg

: the minimum wage rate and incentive wage plans were included in the Babylonian code of

Hammurabi around 1800 B.C.

The

chinese

during 1650 B.C had originated the principle of division of

labour

and they understood

labour

turnover even in 400 B.C

Kautilya

in India in his book

Arthashatra

made reference to various concepts like Job analysis, selection procedures, executive development, incentive system and performance appraisal.

Growth in India

Legal Phase: The early roots of HRM in India could be traced back to the period after 1920.

The Royal commission on

labour

in 1931 suggested the appointment of

labour

officer to protect workers interest and act as a spokesperson of

labour

.

Meanwhile two professional bodies

viz

, the Indian Institute of Personnel Management (IIPM) Kolkata and the National Institute of

Labour

Management (NILM) Mumbai have come into existence in 1950s.

Growth in India

Welfare Phase: During the 196s the scope of personnel function has expanded a bit, covering

labour

welfare, participative management, industrial harmony etc.

The legalistic preoccupations slowly gave way to harmonious industrial relations and good HR practices.

Growth in India

Development Phase: in 1960s and 70s the HR professionals focused more on developmental aspects of human resources

The emphasis was on striking a harmonious balance between employee demands and

organisational

requirements.

Using HRM to attain Competitive advantage

It is the ability of a firm to win consistently over the long term in a competitive situation.

It occurs when the firm does something that others cannot do .

For

eg

: Dell has a competitive advantage of selling its products directly to the customers.

Human resource professionals have agreed that the key to a firm’s success depends on a set of core competencies in the form of skills, knowledge, experience and ability to use these to the advantage of the firm when required which separates the firm from its rivals.

Competitive Advantage

Organisations

can achieve a sustained competitive advantage through people if they meet the following conditions

Superiority : requires single-minded focus on customer needs and expectations

Federal express was one of the first companies to introduce package tracking capability

HR can bring that plus value to the firm by hiring best talent that actually matches with

organisational

culture

;

Competitive Advantage

Inimitability: to gain the edge the firm must erect barriers and must offer product or service that is not easy to imitate or copy.

An

organiation

should always try to be unique in its industry.

Starbucks are known for creating unique culture that are difficult to imitate.

Competitive Advantage

Durability: sustaining for a longer period

IBM and GE have over the years, perfected the art of blending the diverse skill sets of people and deploying them on challenging assignments .

To conclude, for delivering superior value and offer unmatched service, every firm requires the services of a committed and competent workforce.

Competitive Advantage

There is increasing research evidence indicating that employees are most productive if:

They are loyal to the company, informed about its mission, strategic and current level of success.

Trusted to take right decisions

Involved in teams which collectively decide

how things are to be done.