HUMAN RESOURCE MANAGEMENT FOR DEVELOPMENT PRACTICE Dr Deepa

HUMAN RESOURCE MANAGEMENT FOR DEVELOPMENT PRACTICE Dr. Deepa Rasheed

Background of Human Resource Management § References of Personnel Management( Earlier name for Human Resource Management) was found in Arthashastra. § It included Job description of supervisor and performance linked pay for goldsmiths. § Traditionally Indian society was organized according to occupations. § Chanakya and his work on Arthashastra

Evolution of HRM in India Establishment Company. of English East India § East India Company The British rulers institutionalized system for running the government. Formation of labour and social security legislations. Royal Commission on Labour (19291931) recommended appointment of § Trade Union Movement labour officers. Formation of trade unions with link with Mahatma Gandhi. These moves paved way to the development of personnel management

Evolution of HRM in India § Tata steel introduced a series of welfare measures for its workers before the introduction of labour laws. § Post Independence era encouraged mixed economy- public and private sectors. § Public sector employer. became the largest § The constitution of India had the objective of promoting socialist society. § Hence various legislations were put forward by government to protect workers. § Thereby welfare officers were appointed in factories and plantations by § Picture of Earlier century textile factory

Industrialization and Trade Union Movement in India Stage 1 Trade Unions Stage 2 Awareness among workers Stage 3 Union Activism Stage 4 Manageria l unionism Formed associations. The rapid growth of trade unions paved way for development of Personnel System In 1970 and 1980 Personnel Function developed in Organisation Due to union activism and employee behaviour like absenteeism made employers depend on laws Greatly influenced decision making Adopted tools and techniques that improved efficiency and productivity

Evolution of Modern Human Resource Management Milestones Plant wide work study conducted by Indian Aluminium Company Limited at Alupuram, Kerala. Based on the study various factors like work output, staffing patterns and productivity based incentive scheme was devised. Establishment of Institutions like ASCI, XLRI &IIM helped to imbibe modern management principles and thoughts.

HUMAN RESOURCE MANAGEMENT TO HUMAN RESOURCE DEVELOPMENT A Paradigm Shift

Human Resource Development § Professor Udai Pareek and T. V. Rao were among the pioneers who introduced the human resource development (HRD). § They also helped many organisations in designing HR systems. § It was recognised that systematic attention to human resources was the only way to increase organisational effectiveness. § This awareness created direct involvement of managers and line managers in the HRM process. top

IMPACT CREATED BY HUMAN RESOURCE DEVELOPMENT Based on scientific studies

Add FINDINGS OF THE STUDY ON HRD § HR function was in the lower order of hierarchy in terms of importance. § Lack of top management support and lack of meaningful research inputs to the profession. § Change in role and status of the HR profession within organisation. § 30 per cent of 54 companies studied had separate HRD Departments. § 38 per cent had separate HRD function as part of personnel department

An era of Human Resource Management

EMERGENCE OF TOTAL HUMAN RESOURCE MANAGEMENT • Reorganisation, privatisation and sale of PSUs- February 1992. • Established a social security system for displaced workers through National Renewal Fund. • The objectives of NRF include retraining, skill development, employment opportunity creation and job loss compensation. • Workforce attrition became an important topic for discussion in HR world. • IITs, NITs& IIMs created a focussed pool of professionals. • IT sectors like Infosys, Wipro, TCS became reliable suppliers of Human Resources to International Companies.

New Trends in HRM • Knowledge Workerindividualistic, and ambitious. skilled, • More emphasis on work life balance practices like flexible working hours, work from home options, employee support services. • India was gaining recognition as a cost effective location for outsourcing work especially IT sector. • The advantages of India were english speaking, university educated population and less operating cost. • New jobs and career opportunities in large numbers

STRUCTURE OF HUMAN RESOURCE MANAGEMENT There are two models of HRM • Harvard Model of HRM based on the work of Beer, Spector, Lawrence, Mills and Walton from the book “Managing Human Assets in 1984”. • Michigan Model of HRM arises from Fombrun, Tichy and Devanna’s 1984 work Strategic Human Resource Management.

HARVARD STYLE OF HRM- SOFT HRM Focus on employees as a key factor of production. Development and potential employees is the focal point. of Attaining competitive advantage by cooperation of employees. HRM is tied Management participation. to total quality and employee The Harvard approach is pluralist in its philosophical basis. Compromise with workforce and union aspirations while achieving business strategies. (Boxall, 1993 a, 654)

MICHIGAN STYLE OF HRM- HARD HRM Focuses on the employees as the key factor in production. Linking strategic management to employee management (Boxall, 1993 a) Employee as a resource to be utilised as efficiently and effectively as possible for maximum strategic benefit of the organisation. Competitive advantage by judicious use of employee skills and abilities. Focus on behaviour outcomes, rational, calculative for organisational