Unit 1 - Introduction to Human Resource
Management
Definition:
● It is the process of managing people in organisations in a structured and thorough
manner
● The management of people in organisations from a macro perspective, i.e. managing
people in the form of a collective relationship between management and employees
**Evolution of HRM:
Trade Union Movement Era (Late 19th to Early 20th Century):
The Industrial Revolution (mid-1800s) led to harsh working conditions in Western Europe
and the USA. Conditions worsened further during World War I.
Key Developments:
● Recognizing the need for state intervention, the Royal Commission of Labour in India
(1911), led by J.H. Whitley, recommended the abolition of the ‘jobber’ system and the
appointment of labour officers for recruitment and grievance resolution.
● The Trade Union Act (1926) in India formalised trade unions, aiming to address
issues such as child labour, long working hours, and poor working conditions.
● Trade unions utilised strikes and other tactics to advocate for worker rights, leading to
practices like collective bargaining, grievance handling, and structured wage
systems.
Social Responsibility Era (Early 20th Century):
During the early 1900s, some employers began adopting a more humane approach towards
workers.
Key Figures:
● Robert Owen, a British industrialist, was a pioneer in this approach. He believed
improving workers' living and working conditions would enhance productivity.
● Owen introduced reforms like better factory conditions, model villages for workers,
and reduced working hours. Critics argue that such measures were often adopted
more to control labour unrest than from a genuine concern for workers’ welfare.
,Scientific Management Era (Early 20th Century):
Frederick Winslow Taylor introduced scientific management principles in the early 1900s as
a systematic approach to improve efficiency.
Key Principles:
● Development of scientific methods to determine work standards and optimal ways of
performing tasks.
● Scientific selection and training of workers to ensure maximum efficiency.
● Clear division of work and responsibility between management and workers.
● Promoting cooperation between workers and management.
Techniques:
● Taylor developed techniques such as
○ Time studies (to analyse job durations)
○ Motion studies (to eliminate wasteful motions)
○ Standardisation of tools and conditions
○ Incentive wage plans
● His focus was on optimising performance through efficiency and technology, often
overlooking the human aspects of work.
Human Relations Era (1920s-1930s):
In response to earlier management theories, this era focused on the human and social
aspects of work.
Key Findings:
● The Hawthorne Experiments, led by Elton Mayo and colleagues, revealed that:
○ Physical work environment had a lesser impact on productivity compared to
workers' attitudes and morale.
○ Fulfilling social and psychological needs of workers improved their
performance.
○ Employee groups and social interactions played a significant role in
influencing work performance.
○ Motivation was not solely driven by economic rewards; job security and
recognition were also crucial.
○ Human Relations Approach: Emphasised the importance of employee
satisfaction and social interactions in enhancing productivity.
Behavioral Science Era (Mid-20th Century):
This era expanded on the human relations approach by incorporating insights from various
behavioural sciences.
Key Contributions:
● Behavioural scientists explored motivation, leadership, communication,
organisational culture, and group dynamics.
● Emphasised that individual behaviour is influenced by group behaviour and informal
leadership.
● Recognized that people generally enjoy work and are motivated by self-development.
● Focused on expanding employee influence, self-control, and self-direction to improve
efficiency.
,Systems Approach Era (Late 20th Century):
Organisations were viewed as complex systems with interrelated parts.
Key Concepts:
● Organisations consist of technical (formal relationships), social (informal group
relations), and power (influence) sub-systems.
● Effective communication and interaction between these subsystems are essential for
achieving organisational goals.
● Technical Sub-system, i.e., formal relationships among the members of an
organisation.
● Social Sub- system, i.e., social satisfaction to the members through informal
group relations.
● Power Sub-system, i.e., exercises of power or influence by individual or
group.
The interaction of the various sub-system forms the total system. There is also interaction
between total system/sub-systems and environment. Environment itself may influence or be
influenced by the system or subsystem.
The systems approach integrates various HRM activities to make optimal use of resources.
It emphasises feedback mechanisms and the continuous flow of information for planning and
control.
Contingency Approach Era (Late 20th Century to Present):
Recognizes that there is no one-size-fits-all approach to management; strategies should
adapt to specific situations.
Key Ideas:
● The best management practices depend on the specific context of the situation.
● Solutions should be tailored based on the characteristics of the situation, such as
using scientific management for simple tasks and job enrichment for skilled workers.
● Emphasises situational analysis and flexibility in management practices.
Historical Influences:
● Mary Parker Follett’s concept of the “Law of the Situation” and earlier theorists like
F.W. Taylor and Henry Fayol had also acknowledged the importance of situational
factors in management.
, Evolution of HRM in India:
● Historical Context: HRM in India, like in the UK and USA, evolved out of necessity
due to difficult post-World War I conditions, including labour malpractices and
industrial disputes.
● Early Reforms: In 1931, the Royal Commission of Labour recommended abolishing
the 'jobber' system and appointing labour officers to handle recruitment and
grievances.
● Post-Independence Legislation: The Factories Act, 1948, required companies with
500 or more workers to appoint Welfare Officers with specific qualifications.
● Professional Bodies: The Indian Institute of Personnel Management (IIPM) in
Kolkata and the National Institute of Labour Management (NILM) in Mumbai emerged
as key institutions in personnel management.
● Expansion of Functions: In the 1960s, the scope of personnel management
expanded to include Labour Welfare, Industrial Relations, and Personnel
Administration.
● Growth of Public Sector: The Second Five Year Plan (1956-61) and growth of the
public sector led to a more professional approach to management.
● Shift in Approach: By the 1970s, there was a shift from a welfare-focused approach
to one centred on efficiency. IIPM and NILM merged in 1980 to form the National
Institute of Personnel Management (NIPM).
● Emergence of HRM: In the 1990s, the focus shifted to Human Resource
Management (HRM) and Human Resource Development (HRD), emphasising
employee development and productivity.
● Current Trends: HRD has become the primary focus in Indian organisations, with
many using HRD-related labels rather than formal HRM policies.
Challenges of HRM:
● Changes in socio-economic and political conditions are bound to bring about
changes in the environment within the organisations.
● The personnel managers of today may find themselves obsolete because of the
rapidly changing business environment, and therefore they should constantly update
their knowledge and skills by looking at the organisation‘s needs and objectives.
Some of the important challenges are:
Vision penetration:
● Evolving the right vision is an entrepreneurial or top management function, but its
utility increases immensely if it percolates, and is understood and accepted down the
line.
● Vision not only provides the fuel and direction to business strategy, but also helps
managers evaluate management practices and make decisions.
● Penetration of vision shall therefore become an important, integral part of man
management in future.
Management
Definition:
● It is the process of managing people in organisations in a structured and thorough
manner
● The management of people in organisations from a macro perspective, i.e. managing
people in the form of a collective relationship between management and employees
**Evolution of HRM:
Trade Union Movement Era (Late 19th to Early 20th Century):
The Industrial Revolution (mid-1800s) led to harsh working conditions in Western Europe
and the USA. Conditions worsened further during World War I.
Key Developments:
● Recognizing the need for state intervention, the Royal Commission of Labour in India
(1911), led by J.H. Whitley, recommended the abolition of the ‘jobber’ system and the
appointment of labour officers for recruitment and grievance resolution.
● The Trade Union Act (1926) in India formalised trade unions, aiming to address
issues such as child labour, long working hours, and poor working conditions.
● Trade unions utilised strikes and other tactics to advocate for worker rights, leading to
practices like collective bargaining, grievance handling, and structured wage
systems.
Social Responsibility Era (Early 20th Century):
During the early 1900s, some employers began adopting a more humane approach towards
workers.
Key Figures:
● Robert Owen, a British industrialist, was a pioneer in this approach. He believed
improving workers' living and working conditions would enhance productivity.
● Owen introduced reforms like better factory conditions, model villages for workers,
and reduced working hours. Critics argue that such measures were often adopted
more to control labour unrest than from a genuine concern for workers’ welfare.
,Scientific Management Era (Early 20th Century):
Frederick Winslow Taylor introduced scientific management principles in the early 1900s as
a systematic approach to improve efficiency.
Key Principles:
● Development of scientific methods to determine work standards and optimal ways of
performing tasks.
● Scientific selection and training of workers to ensure maximum efficiency.
● Clear division of work and responsibility between management and workers.
● Promoting cooperation between workers and management.
Techniques:
● Taylor developed techniques such as
○ Time studies (to analyse job durations)
○ Motion studies (to eliminate wasteful motions)
○ Standardisation of tools and conditions
○ Incentive wage plans
● His focus was on optimising performance through efficiency and technology, often
overlooking the human aspects of work.
Human Relations Era (1920s-1930s):
In response to earlier management theories, this era focused on the human and social
aspects of work.
Key Findings:
● The Hawthorne Experiments, led by Elton Mayo and colleagues, revealed that:
○ Physical work environment had a lesser impact on productivity compared to
workers' attitudes and morale.
○ Fulfilling social and psychological needs of workers improved their
performance.
○ Employee groups and social interactions played a significant role in
influencing work performance.
○ Motivation was not solely driven by economic rewards; job security and
recognition were also crucial.
○ Human Relations Approach: Emphasised the importance of employee
satisfaction and social interactions in enhancing productivity.
Behavioral Science Era (Mid-20th Century):
This era expanded on the human relations approach by incorporating insights from various
behavioural sciences.
Key Contributions:
● Behavioural scientists explored motivation, leadership, communication,
organisational culture, and group dynamics.
● Emphasised that individual behaviour is influenced by group behaviour and informal
leadership.
● Recognized that people generally enjoy work and are motivated by self-development.
● Focused on expanding employee influence, self-control, and self-direction to improve
efficiency.
,Systems Approach Era (Late 20th Century):
Organisations were viewed as complex systems with interrelated parts.
Key Concepts:
● Organisations consist of technical (formal relationships), social (informal group
relations), and power (influence) sub-systems.
● Effective communication and interaction between these subsystems are essential for
achieving organisational goals.
● Technical Sub-system, i.e., formal relationships among the members of an
organisation.
● Social Sub- system, i.e., social satisfaction to the members through informal
group relations.
● Power Sub-system, i.e., exercises of power or influence by individual or
group.
The interaction of the various sub-system forms the total system. There is also interaction
between total system/sub-systems and environment. Environment itself may influence or be
influenced by the system or subsystem.
The systems approach integrates various HRM activities to make optimal use of resources.
It emphasises feedback mechanisms and the continuous flow of information for planning and
control.
Contingency Approach Era (Late 20th Century to Present):
Recognizes that there is no one-size-fits-all approach to management; strategies should
adapt to specific situations.
Key Ideas:
● The best management practices depend on the specific context of the situation.
● Solutions should be tailored based on the characteristics of the situation, such as
using scientific management for simple tasks and job enrichment for skilled workers.
● Emphasises situational analysis and flexibility in management practices.
Historical Influences:
● Mary Parker Follett’s concept of the “Law of the Situation” and earlier theorists like
F.W. Taylor and Henry Fayol had also acknowledged the importance of situational
factors in management.
, Evolution of HRM in India:
● Historical Context: HRM in India, like in the UK and USA, evolved out of necessity
due to difficult post-World War I conditions, including labour malpractices and
industrial disputes.
● Early Reforms: In 1931, the Royal Commission of Labour recommended abolishing
the 'jobber' system and appointing labour officers to handle recruitment and
grievances.
● Post-Independence Legislation: The Factories Act, 1948, required companies with
500 or more workers to appoint Welfare Officers with specific qualifications.
● Professional Bodies: The Indian Institute of Personnel Management (IIPM) in
Kolkata and the National Institute of Labour Management (NILM) in Mumbai emerged
as key institutions in personnel management.
● Expansion of Functions: In the 1960s, the scope of personnel management
expanded to include Labour Welfare, Industrial Relations, and Personnel
Administration.
● Growth of Public Sector: The Second Five Year Plan (1956-61) and growth of the
public sector led to a more professional approach to management.
● Shift in Approach: By the 1970s, there was a shift from a welfare-focused approach
to one centred on efficiency. IIPM and NILM merged in 1980 to form the National
Institute of Personnel Management (NIPM).
● Emergence of HRM: In the 1990s, the focus shifted to Human Resource
Management (HRM) and Human Resource Development (HRD), emphasising
employee development and productivity.
● Current Trends: HRD has become the primary focus in Indian organisations, with
many using HRD-related labels rather than formal HRM policies.
Challenges of HRM:
● Changes in socio-economic and political conditions are bound to bring about
changes in the environment within the organisations.
● The personnel managers of today may find themselves obsolete because of the
rapidly changing business environment, and therefore they should constantly update
their knowledge and skills by looking at the organisation‘s needs and objectives.
Some of the important challenges are:
Vision penetration:
● Evolving the right vision is an entrepreneurial or top management function, but its
utility increases immensely if it percolates, and is understood and accepted down the
line.
● Vision not only provides the fuel and direction to business strategy, but also helps
managers evaluate management practices and make decisions.
● Penetration of vision shall therefore become an important, integral part of man
management in future.
