eHR01
Human Resources Management
Prof R K Singh
AIMA-CME
eHR01: Evolution of HRM in India
Evolution of HR Functions :
1929: Royal Commission on Labour-GOI
1931: Appointment of Labour Officers.
Scope :Employment, Dismissal and
Working Conditions.
1945: Labour Officers got designated as
Welfare Officers.
Scope : + Housing, Medical, and
Recreational Activities
AIMA-CME
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eHR01: Evolution of HRM in India
Evolution of HR Functions :
1946: Industrial Disputes Act
1947: Factories Act
Scope :+ Management of Leave, Wages,
Bonus & Retirement Benefits
1960s-1970s : Need for Attracting & Retaining
Right People (Growth in Business, Competition
& Increased size of Business)
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eHR01: Evolution of HRM in India
Formulation of HR Policies on :
• HR Planning
• Recruitment and Selection
• Training & Development
• Performance & Potential Appraisal
• Internal Mobility &
• Compensation Management
Welfare Officers  Personnel Managers
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eHR01: Evolution of HRM in India
1980s-1990s :
Further recognition of the
importance of Human Resources
and their contribution to the survival
of the Organizations.
Personnel Managers
Manager-HR
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eHR01 : Evolution of HRM in Europe
1.1 History of HRM:
• Formation of Guilds of workers in England to
improve the work conditions.
• Industrial Revolution (18 Century) laid the basis
for a new and complex industrial society.
• Working conditions, social patterns, and division
of labour were significantly altered.
• A new kind of employee-a “Boss”, who wasn’t
necessarily the owner, came into existence.
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eHR01 : Evolution of HRM in Europe
1.1 History of HRM:
• Emergence of Scientific Management Approach
and Industrial Psychology (Later19 Century)
focused on the job & efficiencies and the
maximum well-being of the worker respectively.
• Changes in Technology, growth of organizations,
the rise of unions, and government concern and
intervention concerning working people resulted
in development of Personnel Departments.
(Around 1920)
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HRM and Personnel Management :Differences
1. Orientation :
Personnel : Maintenance Oriented
HRD : Development Oriented
2. Structure :
Personnel : An independent function with
independent sub-functions
HRD : Consists of inter-dependent parts
3. Philosophy :
Personnel : Reactive function, responding to
events as and when they take place
HRD : Proactive function, trying to anticipate
and get ready with appropriate responses.
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HRM and Personnel Management :Differences
4. Responsibility:
Personnel : Exclusive responsibility of Personnel
department.
HRD : Responsibility of all managers in the
organization
5. Motivators :
Personnel : Emphasis is put on monitary rewards
HRD : Emphasis is on higher-order needs such as
- how to design jobs with stretch, pull and
challenges, how to improve creativity and
problem solving skills, how to empower people
in all respects, etc
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HRM and Personnel Management :Differences
6. Outcomes :
Personnel : Improved performance is the
result of improved satisfaction and
morale.
HRD : Better use of human resources leads
to improved satisfaction and morale.
7.Aims :
Personnel : Tries to improve the efficiency
of people and administration.
HRD : It tries to develop the organization
and its culture as a whole.
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HRM : Definition
Human Resource Management is a
broad concept referring to the
philosophy, policies, procedures, and
practices used in managing people
throughout the organization.
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Defining HRM
HRM is the systematic control of a network of
fundamental organizational processes affecting
and involving all organization members; these
processes include :
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Human Resource Planning
Job & Work Design
Job Analysis, Staffing
Training and Development
Performance Appraisal and Review
Compensation and Reward
Employee Protection & Representation
Organization Development
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eHR01: Objectives of HRM
• Helping the organization reach its goals.
• Providing the organization with well-trained
and well-motivated employees.
• Employing the skills and abilities of the
workforce efficiently.
• Increasing to the fullest the employees’ job
satisfaction and self actualization.
• Communicating HRM policies to all employees
• Helping to maintain ethical policies and socially
responsible behaviour
• Managing change to the mutual advantage of
individuals, groups, the enterprise, and the
public.
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Strategic Importance of HRM: Key Concepts
• Analyzing and Solving problems from a profitoriented, not just a service oriented, point of view
• Assessing and interpreting costs or benefits of
HRM issues
• Using planning models that include realistic,
challenging, specific, and meaningful goals.
• Training the HR Staff and emphasizing the
strategic importance of HRM and the importance
of contributing to the firm’s profit.
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eHR01 : Concept and Scope of HRM
1.4 Who Performs HRM Activities?
-HR Managers and Operating Managers.
Operating Managers (Supervisors, Department
Heads, Vice Presidents of non-HR Department)
are involved in HRM activities because they are
responsible for effective utilization of all the
resources at their disposal.
Operating managers must see to the training,
performance, and satisfaction of employees.
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eHR01 U1: Concept and Scope of HRM
Scope of HRM
(According to IIPM)
• Personnel Aspect
• Welfare Aspect
• Industrial Relations Aspect
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eHR01: Concept and Scope of HRM
1.5 Activities of HRM Department
Personnel Aspect :
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Manpower Planning
Recruitment and Selection
Placement
Transfer
Promotion
Training and Development
Lay off and Retrenchment,
Remuneration
Productivity and Incentives, etc.
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eHR01 U1: Concept and Scope of HRM
1.5 Activities of HRM Department
Welfare Aspect :
• Working Conditions and Amenities such as
-Canteen
-Creches
-Rest and Lunch Room/s
-Housing
-Transport,
-Medical Assistance
-Education
-Health and Safety and Recreation Facilities, etc.
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eHR01 U1: Concept and Scope of HRM
Activities of HRM Department
Industrial Relations Aspect :
• Union-management relations
• Joint Consultations
• Collective Bargaining
• Grievance and Disciplinary Procedures
• Settlements of Disputes, etc.
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eHR01: Emerging HR Functions
Assessment Centre:
A mechanism to identify the potential for growth.
It’s a procedure and not a location.
It uses situational tests to observe specific job
behaviour.
Empowerment :
It provides greater freedom and discretion to employees
so that they develop mutual trust, liberal sharing of
information, become team player and release their full
potential to contribute to the organizations.
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eHR01: Emerging HR Functions
Job Enrichment:
It provides discretion, flexibility and variety to
the job to increase the employees’ willingness to
contribute.
Parity and Justice:
To ensure that the constitutional and legislation
guarantees are not ignored/violated by
individual managers and/or organization.
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