History of HRM PDF

History of HRM Personnel Management to HUMAN HRM HRM and its RESOURCE functions HRM Systems MANAGEMENT  What is HRM? A variety of activities regarding people working in an organization; Managerial function that matches the organ...

History of HRM Personnel Management to HUMAN HRM HRM and its RESOURCE functions HRM Systems MANAGEMENT  What is HRM? A variety of activities regarding people working in an organization; Managerial function that matches the organization’s need to the skills and abilities of employees; HUMAN RESOURCES MANAGEMENT Homo-sapiens - Human Planning Social animals Physical Organizing Financial Staffing Technical Leading Informational Controlling HRM ties together three organizational components: people, purpose, structure  The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, Human Resources Management “Human resource management (HRM) refers to the constellation of decisions and actions associated with managing individuals throughout the employee life cycle to maximize employee and organizational effectiveness in attaining goals. This includes functions that range from analyzing and designing jobs; managing diversity and complying with local, national, and global employee laws; recruiting individuals to apply for jobs; selecting individuals to join organizations; training and developing people while they are employed; helping to manage their performance; rewarding and compensating employee performance while maintaining healthy labor relations and helping keep them safe; and managing their exit, or departure, from the organization. In defining HRM.. Mark 1 Staffing Objectives Performance Objectives Change Management Objectives Administration Objectives Reputational Objectives Mark 2 Personnel Management (Workforce centered) HRM (resources centered)  Pre-historic: HRM principle were used in selecting tribal leaders and knowledge recorded included those on safety, health, hunting and gathering people; Chinese: the first to use employee screening techniques (1115BC); History of HRM Greeks and Babylonians: started “the apprentice” system; Industrial revolution (18th century): shift of US economy from agri-based to industry-based high recruitment need for a well-organized structure from steam power and machinery time consuming hand labor Result: widening gap between workers and owners and new “boss”  Scientific management (Frederick W. Taylor): effort to deal with inefficiencies in labor and management through work methods, time and motion study, and specialization. “one best way” – productivity could be maximized by taking a scientific approach to the process of designing jobs; History of Scientific management – (1) science, not rules of thumb; (2) harmony, not discord; (3) cooperation, not HRM individualism; (4) maximum output, not restricted output. Resulted to mechanistic approach – very simple jobs and lacking in meaningfulness reduced need for high- ability individuals less dependency on individual workers Bottomline: workers are replaceable  Appearance of Personnel departments due to technology changes, growth of organizations, rise of union, government concern and intervention about workers; - welfare secretaries – first personnel administrators tasked to bridge the gap between management and workers; History of Human relations movement (Elton Mayo &Fritz Roelthisberger): based on the results of the Hawthorne HRM studies (from 1924 -1933), they incorporated two human factors into work; organizational behavior (social interaction and work groups) Passing of several acts (1960’s &1970’s): Equal Pay Act, Civil Rights Act, Employee Retirement Income Security Act and Occupational Safety and Health Act were enacted HR department to avoid potential law suit; In Theme 1: Social Justice short..the Theme 2: Humane Bureaucracy Evolution Theme 3: Negotiated Consent came in Theme 4: Organization different Theme 5: Human Resource Management themes.. Theme 6: Anew HR (i.e. SHRM)  Pre-Spanish: no formal organization; master servant relationship; Spanish era: limited relationship between HRM in the employer-employee because of Code of Commerce (commercial transactions); Philippines: No labor laws to protect workers Harsh and cruel work conditions & abuse by employers American era: little improvement in work conditions due to introduction of Unionism Japanese era: working conditions became more abusive and harsh  Post-war period: growing awareness of personnel management; Establishment of personnel departments due to concerns related to government regulations/ requirements (DOL, GSIS/SSS,NYMC) Formation of formal groups of HR management people (PMAP) HRM in the Martial Law era: parliamentary form of government Philippines: Government ban on strike – curtailed freedom of expression Economic crisis resulted in organizations limiting personnel programs and projects HRM was slowly being introduced but not yet well accepted under the political and economic environment Post Martial Law era: many management-labor problems Still limitations on freedom to organize labor unions were stifled HRM was not a priority at that time; Current State: widespread recognition of the strategic role of HRM for global competitiveness  Refer to same thing: concern for personnel who work for a company; Personnel Historically, HRM was “personnel management” – formal system for the management of people within the Management organization; Personnel relations industrial relations employee relations vs Human human resources management (talent management) Peter Drucker described the job of personnel as “partly as Resource a file clerk’s job, partly a housekeeping job, partly a social worker’s job, and partly firefighting, heading of union Management trouble” “Functions as record – keeping unit that handed out 25-year tenure pins and coordinated the annual company party/picnic”  Distinguishing Between HRM and PM Personnel HRM Time and planning Short term, reactive Long term, proactive, ad hoc marginal Strategic, integrated Psychological contract Compliance Commitment Control Systems External Self-control Employee relations Pluralist, collective, Unitarist, individual, Low trust High trust Structures and systems Bureaucratic/mechanistic, Organic, devolved, flexible centralized, formal Roles Specialist/professional Largely integrated in management Evaluation criteria Cost minimization Maximum utilization (human asset accounting)  Integration of HRM into an organization’s corporate strategy and ensuring an HRM view in the decision and actions of line managers; - Involves selecting the HRM options consistent (and which promotes) the corporate strategy; - HRM options are determined by the type of Basic Goals employee behavior expected, that is needed to further the corporate strategy. of HRM Securing commitment through building strong cultures Achieve flexibility and adaptability to manage change and innovation in response to rapid changes consequent upon globalization.  Why the need for HRM? Factors Functions of HRM 1. Accommodating to Establish policies to reduce friction between workers’ needs organizational demands and family responsibilities; 2. Increased complexity of Assisting line managers in making strategic manager’s job business decisions and in matching human resource competencies to the organization’s mission; 3. Legislation and litigation To do efficient record keeping and reporting to comply with state laws regulating equal employment, compensation, safety and labor relations;  Why the need for HRM? Factors Functions of HRM 4. Consistency and equity Assists managers for fair and even decisions, within the organization such as in compensation and promotions; 5. Special expertise within Acquisition of specialized skills and complex personnel activities procedures for making HRM systems for objective; 6. Cost of Human To help maximize human resources, this Resources being the largest single expense and avoid costly common personnel mistakes. HRM Models  Seminal Models of HRM The ‘hard’ approach (Michigan model) The ‘soft’ approach (Harvard Model) Rooted in the manpower planning Rooted in the human relations school approach – concerned with aligning –concern for workers’ outcomes & human resource strategy with encourages commitment to the business strategy; organization by focusing on workers’ Sees employees as resource in the concerns; same way as any other business People are resources which are resource (equipment and raw different from other resources and materials); must be managed in a different way; Views people as a resource needed to Seen as a method of developing achieve organizational goals. strategies to encourage employee “People must be obtained as cheaply commitment; as possible, used sparingly, and Employees are significantly stakeholders in the organization. They have their own needs developed and exploited as much as and concerns along with other stakeholder possible” groups, hence they must be treated with an element of mutuality.  David Guest’s Model of HRM HRM is linked to the strategic management of an organization. Seeks commitment to organizational goals Focuses on the individual needs rather than the collective workforce. Enable organizations to devolve power and become more flexible; Emphasizes people as an asset to be positively utilized by the organization. 6 dimension: HRM strategy Behavior outcomes HRM practices Performance outcomes HRM outcomes Financial outcomes  1 Beliefs and assumptions That it is the human resource which gives competitive edge. That the aim should not be mere compliance with rules, but employee commitment. That therefore employees should, for example, be very carefully selected and developed. The new 2 Strategic qualities Because of the above factors, HR decisions are of strategic importance. Top management involvement is necessary. HRM HR policies should be integrated into the business strategy – stemming from it and even contributing to it. 3 Critical role of managers Model Because HR practice is critical to the core activities of the business, it is too important to be left to personnel specialists alone. Line managers are (or need to be) closely involved as both deliverers and drivers of the HR policies. Much greater attention is paid to the management of managers themselves. 4 Key levers Managing culture is more important than managing procedures and systems. Integrated action on selection, communication, training, reward and development. Restructuring and job redesign to allow devolved responsibility and empowerment.