Human Resource Management Chapter 1 Introduction to HRM

Human Resource Management Chapter 1 Introduction to HRM Topics to be covered We will cover the following: – – – Introduction to Management Organization Introduction to HRM Evolution & History of HRM Objective of HRM Important terminology Published by Lecturesheet. iiuc 28 a 9. com 1

Introduction to Management ¨ Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. ¨ Management can be defined as ensuring an organization makes the most effective and efficient use of resources in order to achieve agreed objectives. ¨ The process of getting things done, effectively and efficiently, through and with other people 2

Organization ¨ Organization – A systematic arrangement of people brought together to accomplish some specific purpose; applies to all organizations—for-profit as well as not-for-profit organizations. – Where managers work (manage). Common Characteristics of Organizations 3

Management Activities Organizing Planning Determining what needs to be done, in what order, and by whom Defining goals and establishing action plans Effective Management Controlling Monitoring activities to ensure that they are achieving results Leading Guiding and motivating all involved parties Model of Management 4

Models of Management Planning Select goals and ways to attain them Performance Resources • Human • Financial • Raw Materials Organizing Assign responsibility for task accomplishment Controlling Monitor activities and make corrections • Technological • Information • Attain goals • Products • Services • Efficiency • Effectiveness Leading Use influence to motivate employees 5

Management Levels (typical) SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, “Chutes and Ladders: Growing the General Manager, ” Sloan Management Review (Spring 1989), 27 -37. 6

Fundamental Management Skills ¨Technical – Skills necessary to accomplish or understand the specific kind of work being done in an organization. ¨Interpersonal – The ability to communicate with, understand, and motivate both individuals and groups. ¨Conceptual – The manager’s ability to think in the abstract. ¨Diagnostic – The manager’s ability to visualize the most appropriate response to a situation. 7

Fundamental Management Skills (cont’d) ¨Communication – The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. ¨Decision-Making – The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities. ¨Time-Management – The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately. 8

A Definition of Personnel Management Managing personnel is the process of making sure the employees (not the customers) are as productive as they can be. This can include hiring, firing, or transferring people to/from jobs they can do most productively. 9

A Definition of HRM? Human resource management is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques (Storey J. , Human Resource Management - A Critical Text) 10

Human Resource Management § “Human” represents the dimension of HRM which relates to the soft aspects such as commitment of employees through participation and the most important assets being the employees. § “Resource” represents the hard aspects such as the strategy link of HRM and the importance of efficient utilization of employees. § “Management” represents the role of HRM as part of management that implies that it’s not only an administrative function that carries out the formulated policies but also a managerial function that contributes to strategy formulation. 11

History and Evolution of HR ¨ Key principles and practices associated with HRM date back to the beginning of mankind. Mechanisms were developed for the selection of tribal leaders, for example. More advanced HRM functions were developed as early as 1000 and 2000 B. C. Employee screening tests have been traced back to 1115 B. C. in China, for instance. ¨ The terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources. " 12

History and Evolution of HR ¨ The need for an organized form of HRM emerged during the industrial revolution, as the manufacturing process evolved from a cottage system to factory production. As the United States shifted from an agricultural economy to an industrial economy, companies were forced to develop and implement effective ways of recruiting and keeping skilled workers. 13

History and Evolution of HR ¨ There were two other particularly important contributing factors to the origination of modern HRM during 1880 s to 1940 s. The first was the industrial welfare movement, which represented a shift in the way that managers viewed employees—from nonhuman resources to human beings. ¨ The second factor was Frederick W. Taylor's (1856 -1915)Scientific Management, a landmark book that outlined management methods for attaining greater productivity from low-level production workers. 14

History and Evolution of HR ¨ In the 1960 s and 1970 s the federal government furthered the HRM movement with a battery of regulations created to enforce fair treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA) ¨ Furthermore, during the 1970 s, HRM gained status as a recognized profession with the advent of human resource programs in colleges 15

History and Evolution of HR ¨ The whole evolutionary activities and concept of HR recently help to shift the orientations: such as changes from personnel to human resources, from administration to management, and from human relations to organizational effectiveness so now HR has aligned with Senior Management. ¨ HR also now has more input on business strategies - training, safety, globalization, etc 16

Evolution of HR in the Subcontinent (Specially in India) Period Developme Outlook nt Status 19201930 Beginning Pragmatism Statutory, welfare, of Capitalists paternalism Clerical 19401960 Struggling for recognition Achieving sophisticati on Technical, legalistic Administrative 19701980 Emphasis Introduction of techniques Status Professional, Regulatory, Managerial legalistic and conforming, imposition of standards on other impersonal functions Philosophical Human Values, Productivity through people 19902000 Promising 2000 - Professional Dynamism Executive Business Partner and Strategic change agent

Evolution in HR in Bangladesh ¨ There is no specific records for the evolution of HRM in Bangladesh. But it is assumed that Before 1970 the whole activities was maintained directly under the administrative department ¨ 1970 -80: the importance of Personnel management or HRM is being recognized for the settlement of some industrial disputes under the Factory, Industrial & labor law. ¨ 1980 to 90: The Personnel management concept has started with recognition ¨ 1990 to till date: After 1990 The HR concept has started narrowly. From 1997 to 2000 HR concepts tried to achieve the recognition. After that it has recognized. Some organization started to set HR department. But till today this concept is struggling to achieve the mass recognition. 18

Objectives of HRM ¨ HRM objectives are four fold ¨ Societal Objectives: To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. Example - Legal compliance, union management, benefits ¨ Organizational Objectives: To recognize the role of HRM in bringing about organizational objectives. Example -HRP, Employee relation, Selection, TRD, PA etc ¨ Functional Objectives: To maintain the department’s contribution at a level appropriate to the organization’s needs. Ex-Recruitment, selection, PA etc ¨ Personal Objectives: To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organization. Ex-TRD, Placement, compensation, assessment 19

HR Practices in BD ¨ HR practice in Bangladesh is better than the past. But there are scope to be improved. The following areas on which the concept has been improvably practiced: ¨ Functional Concept: – HR role was concentrated to hiring firing and letter issuance-dispatching-filing stage – Now change to Employee motivation, Employee development, employee retention, facilitating organizational development initiatives etc. 20

HR Practices in BD ¨ Investment Concept: – Treated as a cost centre, so no initiative for the development of HR – Now HR treats as investment centre. As such in many organizations, employee development is viewed as part of business plan. 21

HR Practices in BD ¨ Relationship: Employer - Employee relationships is better than the past. But till now there a lot of scope to improve in the employer-employee relation as well as employee-employee relations. ¨ Recognition: Employers now started to recognition of the employees’ participation in business planning, major decision making and organizational change process has increased. But till today this practice is suffering with lots of limitations ¨ Formation of the Bangladesh Society for Human Resources Management- A platform for HR Professionals in Bangladesh 22