Human Resource Management

Personnel to HRM

Personnel departments were once called Health and Happiness departments Individuals who were past their prime were assigned Seen as a place where less-productive employees were placed, with minimal damage to operations Perceived as those responsible for planning company picnics, vacation schedules & retirement parties Personnel, as an activity, was seen as a necessary, but unimportant, part of the organization
Contd

Personnel to HRM

As field of management began to mature, more emphasis was being placed on the workers Studies revealed recognizing workers could influence their productivity Workers were becoming more demanding in what they wanted from a job Society, by means of laws and legislation, was placing new demands on employers

Contd

Personnel to HRM

Personnel could no longer be treated as a detour on the road to success Companies had to hire the best-qualified candidate without regard to race, religion, color, sex or national origin Employees needed to be trained to function effectively Companies had to provide a means of continuing the personal development of each employee Finally, work conditions had to be established such that the work environment retained the workers, as well as attracted new applicants

Evolution of HRM

The Commodity concept :

Labor

was regarded as a commodity to be bought and sold

Wages were based on demand and supply

Govt. did very little to protect workers

Evolution of HRM

The Factor of Production concept :

Labor

is like any other factor of production (money, materials, land, etc.)

Workers are like machine tools

Evolution of HRM

The Goodwill concept :

Welfare

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

Evolution of HRM

The Paternalistic concept or Paternalism :

Management It

must assume a fatherly protective attitude towards employees

and

means satisfying various needs of the employees as parents meet the requirements of children

Evolution of HRM

The Humanitarian concept :

To

improve productivity, physical, social and psychological needs of workers must be met is less a factor in determining output, than group standards, group incentives and security organization is a social system that has both economic and social dimensions

Money

The

Evolution of HRM

The Human Resource concept :

Employees A

are the most valuable assets of an organization conscious effort to realize organizational goals by satisfying needs and aspirations of employees

Evolution of HRM

The Emerging concept :

Employees

should be accepted as partners in the progress of a company They should have a feeling that the organization is their own Managers must offer better quality of working life and offer people opportunities to exploit their potential fully The focus should be on Human Resource Development

Strategic HRM

Is the pattern of planned human resource developments and activities intended to enable an organization to achieve its goals.
This means accepting the HR function as a strategic partner in both the formulation of the companys strategic, as well as in the implementation of those activities through HR activities.

Strategic HRM

HR plays a vital role, especially in identifying and analyzing external threats and opportunities (environmental scanning).
HR can offer competitive intelligence that may be helpful in strategic plans (new incentive plans used by competitors, etc.).

Strategic HRM
HR can throw light on companys internal strengths and weaknesses (Eg. IBMs decision to buy Lotus). Some companies even develop their strategies based on their own HR-based competitive advantage. Software majors like Wipro, TCS have not slowed down their recruitment efforts during the lean periods.

Strategic HRM

HR has a great role to play in the execution of strategies.

Eg: HDFCs strategy to differentiate itself from its competitors by offering superior customer service at attractive rates.

HDFCs workforce offers a crucial competitive advantage

Strategic HRM

HR can help strategy implementation by restructuring and downsizing efforts without rubbing employees on the wrong side -

through placing employees, linking rewards to performance, reducing welfare costs, retraining employees.

Strategic HRM
Due to globalization and technological innovation, there is a need for faster and more competitive organizations. Employee behavior and performance is seen as the best bet to push competitors to a corner and enhance productivity and market share.

Strategic HRM

HR practices build competitiveness through strategic implementation, create a capacity for change and instill strategic unity.