Evolution Of Hr

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EVOLUATION OF HRM Presented By: Megha Shukla

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1 Human Resource Management and the Environment

McGraw-Hill/Irwin Human Resource Management, 10/e

© 2007 The McGraw-Hill Companies, Inc. All rights reserved.

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Objectives Define

the term human resource management.

Describe

the strategic importance of human resource management (HRM) activities.

List

the main objectives pursued by HRM units.

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Introduction Human

resource management (HRM) is the effective management of people at work The goal: make workers more satisfied and productive When an organization is concerned about people, its total philosophy, culture, and orientation reflect it Every manager must be concerned with people, whether or not there is a human resources department

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Introduction HRM

consists of numerous activities: Equal employment opportunity (EEO) compliance Job analysis Human resource planning Recruitment, selection, motivation, and orientation Performance evaluation and compensation Training and development Labor relations Safety, health, and wellness

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A Brief History of HRM The

Industrial Revolution in the 18th century laid the basis for a new, complex industrial society Changing work conditions, social patterns, and labor created a gap between workers and owners. During the world wars era, scientific management, welfare work, and industrial psychology merged

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A Brief History of HRM Frederick

W. Taylor, the father of scientific management, summarized scientific management as: Science Harmony Cooperation Maximum output Industrial psychology, initiated in 1913, focused on: The worker Individual differences The maximum well being of the worker

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A Brief History of HRM Personnel

departments were created to deal with: Drastic changes in technology Organizational growth The rise of unions Government intervention concerning working people Around the 1920s, more organizations noticed and acted on employee-management conflict

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Clarifying Meaningful HRM Objectives Strategy: The plan that integrates major objectives More specific

Objectives: Goals that are specific and measurable More specific

Policies: Guides to decision making More specific

Procedures/Rules: Specific directions for decision making

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Strategic Importance of HRM Today,

HRM plays a major role in: Clarifying the firm’s human resource problems Developing solutions for them

It

is oriented toward: Action The individual Worldwide interdependence The future

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Strategic Importance of HRM Strategic

HRM differs significantly from traditional

HRM In traditional arrangements, responsibility for managing human resources lies with different specialists in each department or division In a strategic approach, people management rests with an individual who is in direct contact with workers or line managers

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Strategic Importance of HRM Item

Traditional HRM

Strategic HRM

Responsibility for human resources

Specialists

Line managers

Objective

Better performance

Improved understanding and use of human assets

Role of HRM area

Respond to needs

Lead, inspire, understand

Time focus

Short-term results

Short, intermediate, long term

Control

Rules, policies, position power

Flexible, based on human resources

Culture

Bureaucratic, top-down, centralization

Open, participative, empowerment

Major emphasis

Following the rules

Developing people

Accountability

Cost centers

Investment in human assets

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Strategic Importance of HRM For

years, the HRM function was not linked to corporate profit Organizations focused only on current performance HR managers did not have a strategic perspective Executives categorized HRM in a traditional manner It was difficult to develop metrics for HRM activities

Recognition

of the importance of people made HRM a major player in developing strategic plans HRM strategies must reflect the organization’s strategy regarding people, profit, and effectiveness

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Strategic Importance of HRM Key

concepts that must be applied: Analyze and solve problems from a profit-oriented point of view Assess and interpret costs and benefits of HRM issues Planning models must include realistic, challenging, specific, and meaningful goals Prepare reports on HRM solutions to problems encountered by the firm

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Strategic Importance of HRM The

era of HRM accountability resulted from: Concerns about productivity Organizational downsizing and redesign An increasingly diverse workforce The need to effectively use all organizational resources to compete in an increasingly complex and competitive world

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HRM Helps to Measure Organizational Effectiveness Effectiveness

is measured by the balance of such complimentary characteristics as: Reaching goals Employing the skills/abilities of employees efficiently Ensuring the influx and retention of well-trained, motivated employees Three elements needed for firms to be effective: Mission and strategy Organizational structure HRM

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HRM Helps to Measure Organizational Effectiveness Changes

experienced by organizations: Growing global competition Rapidly expanding technologies Increased demand for individual, team, and organizational competencies Faster cycle times Increasing legal and compliance scrutiny Higher customer expectations

The

mechanized, routine-oriented workforce is giving way to a knowledge-based workforce

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HRM Helps to Measure Organizational Effectiveness Top

management has trouble making strategic planning decisions regarding people All other resources are evaluated in terms of money

Implementing

high performance management practices results in: Profitability gains Stock price increases Higher company survival rates

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CONCLUSION Effective Management of today’s organisations and the human resources that make them either go or not go is facing enormous challenges. Downsizing, diversity , the knowledge and information explosion , global competition , and total quality are not only some of the latest buzzwords, they are representative of the harsh reality facing managers now and in the future.There are many solution being offered of how to deal with these complex challenges. i.e “ PEOPLE ARE THE KEY OF LOCKS”