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MODULE 1:
An Introduction to Human Resource Management: Stages and
growth in HRM; the concept of HR and its Objectives; Scope and
functions of HR; Challenges in HRM; HRM in changing scenario;
Roles and Responsibilities of HR Managers and Structure of the
Department
HRM – Meaning
PLAY
Cont..
The industrial revolution
• The industrial revolution began in Great Britain in the late eighteenth century and spread to America in early
nineteenth century.
• The industrial revolution gave rise to the factory system.
• The factory system:
• Greatly expanded production and created a new class of workers and managers
• Led to the shift from an agricultural based society to an industrial and manufacturing based society
• Gradually replaced the self-employed house-holds and handcraft
• Created a class of permanent wage earners
• Brought together many workers
• Brought rationalization of work and division of labour
Scientific Management
• The scientific management movement originated in America’s business and engineering schools in the late 1880s as
an effort to understand human behaviour in the workplace.
• The key representative of the scientific management movement is Fredrick Taylor who endeavored to develop
theories of work organizations, which would improve effectiveness and raise productivity.
Cont..
Trade Union Movement Era:
• Collective bargaining, unfair labor practices, grievance handling, disciplinary procedures,
pay and benefits
Human Relations Movement
• Hawthorne experiments by Elton Mayo demonstrated that employee productivity was
affected not only by the way the job was designed and employee economically rewarded but
also by certain social and psychological factors. Includes supervisory training programs,
strengthen bonds between labor and management and counseling programs
Cont..
Human Resources Approach
• Pet Milk theory that happy workers are productive workers or happy cows give more milk was rejected.
Workers are unique with their own needs and motivation levels. This Approach assumes that job is the
primary source of satisfaction and motivation to the employees. Emphasis on individual involvement in the
decisions were made in the organization.
• Theory Y- Most people can exercise a great deal more self-direction, self-control and creativity than are required
in their current jobs.
• Manager’s job is to use untapped human potential.
• Manager should create a healthy, safe and convenient environment.
• Manager should provide self-direction to the subordinates.
• Expanding subordinates influence Work satisfaction
Play
Cont..
HR as a Business Function
• An HR function is available in an organization, responsible for managing employee data, takes care of payroll, time and
attendance and the setting of company policies.
• The role is largely that of Personnel Administration focused on Compliance both internal & external, and on Management
of employee records.
HR as a Business Partner
• As a Business Partner, the role of HR is to meet the “existing business needs” of the organization so that the organization
could grow at a measurable rate.
• At this stage of evolution, the focus of the HR shifts to competency based Recruitment, Total Compensation, Employee
Development, Communication and Organization Design.
HR as a Strategic Partner
• Organizations that view their HR as a strategic business partner believe in full maturity of their HR function. Such
organizations are focused on attaining leadership positions rather than an year-on-year growth. Bottom-line and top-line
growth are expected to be achieved automatically.
• As a strategic partner HR uses a variety of automation tools for Learning Management, Performance Management,
Compensation Planning, Recruitment and On-boarding, Succession Planning, Alignment and Employee feedback.
Labour welfare measures in Tata steel
Objectives of HRM
Cascio identifies two objectives