HRM - Evolution & Strategic

8/3/2019 HRM - Evolution & Strategic

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Human Resource Management


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Personnel to HRM

Personnel departments were once called Healthand Happinessdepartments

Individuals who were past their prime wereassigned

Seen as a place where less-productive employeeswere placed, with minimal damage to operations

Perceived as those responsible for planningcompany picnics, vacation schedules & retirementparties

Personnel, as an activity, was seen as anecessary, but unimportant, part of theorganization

Contd


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Personnel to HRM

As field of management began to mature,more emphasis was being placed on theworkers

Studies revealed recognizing workers couldinfluence their productivity

Workers were becoming more demanding inwhat they wanted from a job

Society, by means of laws and legislation, wasplacing new demands on employers

Contd


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Evolution of HRM

The Commodity concept :

Labor was regarded as a commodity to bebought and sold

Wages were based on demand and supply

Govt. did very little to protect workers


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Evolution of HRM

The Factor of Production concept :

Labor is like any other factor of production(money, materials, land, etc.)

Workers are like machine tools


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Evolution of HRM

The Goodwill concept :

Welfare measures like safety, first aid, lunchroom, rest room will have a positive impact onworkersproductivity


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Evolution of HRM

The Paternalistic concept or Paternalism :

Management must assume a fatherly andprotective attitude towards employees

It means satisfying various needs of theemployees as parents meet the requirements of

children


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Evolution of HRM

The Humanitarian concept :

To improve productivity, physical, social andpsychological needs of workers must be met

Money is less a factor in determining output,than group standards, group incentives and

security

The organization is a social system that hasboth economic and social dimensions


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Evolution of HRM

The Human Resource concept :

Employees are the most valuable assets of anorganization

A conscious effort to realize organizational goalsby satisfying needs and aspirations of

employees


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Evolution of HRM

The Emerging concept :

Employees should be accepted as partners in theprogress of a company They should have a feeling that the organization is

their own

Managers must offer better quality of working lifeand offer people opportunities to exploit theirpotential fully

The focus should be on Human ResourceDevelopment


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Strategic HRM

Is the pattern of planned human resourcedevelopments and activities intended toenable an organization to achieve its goals.

This means accepting the HR function as astrategic partner in both the formulation of

the companys strategic, as well as in theimplementation of those activities throughHR activities.


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Strategic HRM

HR plays a vital role, especially in identifyingand analyzing external threats andopportunities (environmental scanning).

HR can offer competitive intelligence thatmay be helpful in strategic plans (new

incentive plans used by competitors, etc.).


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Strategic HRM

HR can throw light on companys internalstrengths and weaknesses (Eg. IBMsdecision to buy Lotus).

Some companies even develop theirstrategies based on their own HR-basedcompetitive advantage.

Software majors like Wipro, TCS have not

slowed down their recruitment efforts duringthe lean periods.


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Strategic HRM

HR has a great role to play in the executionof strategies.

Eg: HDFCs strategy to differentiate itselffrom its competitors by offering superiorcustomer service at attractive rates.

HDFCs workforce offers a crucial competitiveadvantage


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Strategic HRM

HR can help strategy implementation byrestructuring and downsizing efforts withoutrubbing employees on the wrong side -

through placing employees, linking rewards to performance, reducing welfare costs, retraining employees.


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Strategic HRM

Due to globalization and technologicalinnovation, there is a need for faster and

more competitive organizations.

Employee behavior and performance is seenas the best bet to push competitors to a

corner and enhance productivity and marketshare.


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Strategic HRM

HR practices build competitiveness through

strategic implementation, create a capacityfor change and instill strategic unity.

HRM - Evolution & Strategic

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