Evolution of HRM

Emerging trends in HRM

 Stages of evolution of personnel
management

Industrial Scientific
Mgmt era Industrial
Revolution Paternalistic
(Taylor-father of Psychological
Era Era (TU) Scientific mgmt) Era
(Robert Owen- (Hugo Muntsberg-father of
Father of personnel mgmt Industrial psychology)

Human Relations Era

(Hawthorne experiments)

Personnel Behavioral
Welfare era
Specialists Science
Era (HRD) Era
(Maslow, Herzberg, Gregor
Industrial revolution
(later part of 18th century )
 Important ∆s brought about by IR:
• Use of power driven m/cs
• Dev.t of engineering, coal mining, iron making, chemical
industry etc
 Changes that necessitated the emergence of personnel
mgmt principles n practices:
• Large scale production
• Employment of large no. of workers in factory
• Intro of div of labor
• Growth of new class of technical n professional employees
• Migration of labor from rural 2 urban areas
• Rise of materialism
• Monotony n boredom in jobs
Growth of TU
 Factory sys lead to exploitation-lower wages n
poor working conditions
 Workers organized themselves into TU
 Through collective support employers can b
forced
 Weapons used-strikes, slowdown, walkouts,
boycott n sabotage.
Scientific mgmt (1900s)
 5 principles:
1. Replacement of rule of thumb method
2. Scientific selection n trng of work
3. Co-operation bet labor n mgmt- Mental revolution
4. Maximum output
5. = ÷ of responsibility
 Techniques of Sc mgmt:
• Scientific task setting-std task which av worker should do during a
working de
• Work study-method study, motion study, time study/work measurement,
fatigue study (mental or physical )
• Plng the task- w.r.t. type, qlty n qty of products 2 b produced
• Standardization- of tools, cost sys etc
• Sc selection n trng- so as 2 have rt men at rt job
• Differential piece wage plan- if a worker finishes work within std
time/produces more than std output within the std time he will b given a
higher piece rate vs below std a lower piece rate
• Specialization
 Criticism:
• Workers as m/cs
• ÷ of work led 2 boredom n monotony
• It tried 2 weaken TU
Industrial psychology
(early 19th century)

 Use of psychology in testing,

interviewing, attitude measurement,
learning theory, training, JA etc.
HRs movement (1924-1933)
Experiments conducted by Elton Mayo n
Roethlisberger of Harvard with Dickson at Hawthorne

plant of Western electric Company

 Experiments:
 Illumination experiment (1924-1927)
 Relay assembly test room experiment (1927-1932)
 Interviewing prog (1928-1931)-12,000 employees interviewed
 Bank wiring observation room experiment (1931-1932 )-gp of 14 workers.
Individual wage +bonus based on gp effort

 Conclusions:
 The amount of work 2 b done by the worker is not is not determined by his
physical capacity but by the social norms thus org is a social sys.
 Employees were not only eco beings but social n psychological beings as well
 Non eco rewards n sanctions play a significant role in influencing behavior of
employees
 Gnrly workers do not act or react as individuals but as members of gp
 Informal leaders play an important part in setting n enforcing the gp norms
Behavioral Sciences
(1940s)
 It tries to bring existing n newly developed
theories, methods n techniques of the relevant
social sciences such as psychology, sociology,
social psychology n anthropology upon the study
of human behavior
 A key feature of this philosophy: the productivity
is directly related to workers’ individual n gp
feelings of morale, motivation n job satisfaction.
Personnel mgmt/HRD
concept
 Employees as partners in industry
 HRD is core of a large sys HRSys
wherein HRD concerned with
providing learning exp 2 employees
thru behavioral processes
Welfare
 Laws were made to ensure that the mgmts
appointed a person exclusively to look after
the welfare of their workers n help them in
discharging their statutory obligations w.r.t
welfare measures
 Hence functions: supervision, counseling,
advising, liasion with workers n mgmt etc
Contemporary issues n
challenges
 Globalization
• Integration of economies
• Outsourcing
• Global benchmarking
• ∆ in mgmt style-knowledge mgmt
• Future of public enterprises
 Changes in workforce profile/diversity
• Increase in education level
• Change in skill level
• Wisdom worker n psycho-socio worker
• Age gp n aspirations of workers
• Mobility of professionals
 Technological advances-ITES
 Changes in PEST
 Role of govt-legal env
 Recession-right sizing
Emerging trends
in/challenges of HRM
 Revolution of IT-creating need for building up
knowledge capital
 Advancement of technology=obsolescence of
present skills
 Eco n industrial policy ∆s
 ∆ing intl env
 ∆ing profile of workforce
 ∆ing needs n expectations of customers

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