EVOLUTION OF HRM

There is no magic in the success of companies.

The secret of their success is simply the way that treat their employees
Akio Morita
Founder, Sony Corporation
Dr.Nitin Vazirani
Dean- HR
SIES College Of Management Studies,Nerul.
vazirani.nitin@gmail.com

Human Resource Management: Primary Activities
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HUMAN RESOURCE WHEELS
HUMAN RESOURCE WHEELS
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HR areas output:
Quality of work life
Productivity readiness
for change
Union/ Labor
relations
Employee
assistance
T& D
Personnel
research and
information
systems
HRP
Selection
and staffing
Compensation/
Benefits
Organization/
Job design
The American Society for Training & Development (ASTD) has developed a Human
Resource Wheel in 1983 highlighting different functions of HRM leading to quality of
work life, productivity and readiness for change.
HR and technology
Basic HR systems demand paperwork

70% of HRs employees time = paperwork

Off the shelf forms from Office Depot/OfficeMax

Online forms

Human Resource Information Systems (HRIS)

HR on the Internet
HR and Technology
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HR portals
Employees can
answer their own
questions
HR moves from
reactive to proactive
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HR portals
HRM Function
Human Resource Management is the
process of acquiring, training,
appraising, and compensating
employees and attending to their
labor relations, health and safety,
and fairness concerns.
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Definition
HR means performance
Can HR have a measurable
impact on a companys
bottom line?
Better HRM translates into
improved employee attitudes
and motivation (e.g., working
at home)
Well run HR programs drive
employee commitment
TOYOTA
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HR Means Performance
A Case Study
Dells dual HR roles
Deals with staff
- benefits
- compensation
- call center
Deals with management
- education
- recruitment
- planning
- training
- personnel needs
OPERATIONS MANAGEMENT
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HR Case Study
HUMAN RESOURCE WHEELS
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T & D focus
Identifying, assessing and through planned learning---helping develop the key
competencies which enable individuals to perform current or future jobs.
OD focus
Assuring healthy inter- and inter-personal relationships and helping groups initiate
and manage change.
Organization/Job design focus
Defining how tasks, authority and systems will be organized and integrated across
organization units and in individual jobs.
HRP focus
Determining the organizations major HR needs strategies and philosophies.
HUMAN RESOURCE WHEELS
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Selection and staffing
Matching people and their career needs and capabilities with jobs and career paths.
Personnel research and information systems
Assuring a personal information base.
Employee assistance focus
Providing counseling to individual employees, for personal problem-solving.
Union/Labour relations focus
Assuring healthy union/organization relationships.
Compensation/Benefits focus
Assuring compensation and benefits fairness and consistency.
THE HUMAN RESOURCE CYCLE
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HRM Concept Michigan School (Fomburn et al., 1984
1. Selection: Matching available human resources to jobs
Selection
Performance
Management
Performance
Rewards
Development
2. Appraisal: Performance management
3. Rewards: It must reward short as well as long-term achievements
4. Development: Developing high quality employees
THE HARVARD FRAMEWORK
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The Harvard Framework of HRM was developed by Beer et al (1984).
The Harvard School suggested that HRM has two characteristics features:
(a) line managers accept more responsibility for ensuring the alignment of
competitive strategy and personnel policies.
(b) The personal function has the alignment of competitive strategy and
personal activities are developed and implemented in ways that make
them more mutually re-enforcing.
THE HARVARD FRAMEWORK FOR HRM
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HRM policies
Choices
Employee
influence
Human
resource flow
Reward
systems
Work systems
HRM outcomes
Commitment
Competence
Congruence
Cost -
effectiveness
Long-term
consequences
Individual well-
being
Organizational
effectiveness
Societal well-
being
Stakeholder Interests
Shareholders
Management
Employee groups
Government
Community
Situational factors
Workforce
characteristics
Business strategy
and conditions
Management
philosophy
Labour market
Unions
Tasks technology
Law & societal
values
RELEVANCE OF HRM
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Change Management
HRM is more relevant in todays context due to the following compulsions:
Competence
Commitment
Congruence of objectives
Motivation
CHALLENGES FACED BY HRM
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Vision penetration
Internal environment
Change in industrial relations
Building organizational capabilities
Job design and organizational structure
Increasing size of workforce
Changing psycho-social system
CHALLENGES FACED BY HRM
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Satisfaction of higher level needs
Equalitarian social system
Technological advances
Computerized information system
Changes in legal environment
Management of human relations
Satisfaction of higher level needs
HUMAN RESOURCE FUNCTIONS
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Ensuring that the organization fulfils all of its equal employment opportunities and
other government obligations.
Carrying out job analysis to establish the specific requirements for individual jobs
within an organization.
Forecasting the human resource requirements necessary for the organization to
achieve its objective both in terms of number of employees and skills.
Developing and implementing a plan to meet these requirements.
Recruiting and selecting personnel to fill specific jobs within an organization.
HRM is Important to all Managers.
Dont Let These Happen to You
The wrong person
High turnover
Poor results
Useless interviews
Court actions
Safety citations
Salaries appear unfair
Poor training
Unfair labor practices
HRM IS IMPORTANT TO ALL
LET THESE THINGS NOT
HAPPEN

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If HR IS NOT DONE PROPERLY THEN.
Strategic HRM

Strategic human resource
management: linking HRM
with strategic goals and
objectives to improve
business performance and
develop organizational
cultures fostering innovation
and flexibility.
Clarify the business
strategy
Realign the HR
functions and key
people practices
Create needed competencies
and behaviors
Realization of business
strategies and results
Evaluate and refine
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Strategic Human Resource Management
CONCLUSION
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(b) While organizations are becoming conscious of the potential of new
technologies, they must also realize the crucial role that human being
play s in managing that technology.
(a) Workers must no longer be seen as liability, but as a key resource
which needs to be carefully nurtured and constantly developed.
(c) Those organization which are able to give relevant training to their
personnel and maintain their willingness to learn new ways to do things
can hope to survive in todays economic environment.
(d) There is serious need for all of us to try and transform at least that part
of the organization, where we have the power, into learning segments
which could then be synthesized into a learning whole.