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FATEHABAD HARYANA

AUTOR
GAURAV BATHEJA JRF NET MBA MCOM

VALUE
NET/JRF
LEARNINGS COMMERCE
HRM
1…..CREATIVE ----WAY TO LEARN

2……QUALITY CONTENT-------CONCEPTUAL UNDERSTANDING

3……..AS PER EXAM REQUIRNMENT-RELEVANT MATERIAL

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Human Resource Management -----------EVOLUTION

• Human Resource Management in its simplest definition means management of

organization’s manpower or workforce or human resources.

Evolution of HRM

• The evolution of the concept of Human Resource Management is presented below

• Period before industrial revolution – The society was primarily an agriculture
economy with limited production. Number of specialized crafts was limited and was
usually carried out within a village or community with apprentices assisting the
master craftsmen. Communication channel were limited.
• Period of industrial revolution (1750 to 1850) – Industrial revolution marked the
conversion of economy from agriculture based to industry based. Modernization and
increased means if communication gave way to industrial setup. A department was
set up to look into workers wages, welfare and other related issues. This led to
emergence of personnel management with the major task as
– Worker’s wages and salaries
– Worker’s record maintenance
– Worker’s housing facilities and health care
• An important event in industrial revolution was growth of Labour Union (1790) –
The works working in the industries or factories were subjected to long working
hours and very less wages. With growing unrest , workers across the world started
protest and this led to the establishment of Labour unions. To deal with labour
issues at one end and management at the other Personnel Management
department had to be capable of politics and diplomacy , thus the industrial relation
department emerged.
• Post Industrial revolution – The term Human resource Management saw a major
evolution after 1850. Various studies were released and many experiments were
conducted during this period which gave HRM altogether a new meaning and
importance.
• A brief overview of major theories release during this period is presented below
• Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to
the evolution of scientific human resource management approach which was
involved in
– Worker’s training
– Maintaining wage uniformity
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– Focus on attaining better productivity.
• Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940).
– Observations and findings of Hawthrone experiment shifted the focus of Human
resource from increasing worker’s productivity to increasing worker’s efficiency
through greater work satisfaction.
• Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s Hierarchy
of needs ( 1954) – These studies and observations led to the transition from the
administrative and passive Personnel Management approach to a more dynamic
Human Resource Management approach which considered workers as a valuable
resource.
• As a result of these principles and studies , Human resource management became
increasingly line management function , linked to core business operations. Some of
the major activities of HR department are listed as-
• Recruitment and selection of skilled workforce.
• Motivation and employee benefits
• Training and development of workforce
• Performance related salaries and appraisals.
• Strategic Human Resource Management Approach
• With increase in technology and knowledge base industries and as a result of global
competition , Human Resource Management is assuming more critical role today .
Its major accomplishment is aligning individual goals and objectives with corporate
goals and objectives. Strategic HRM focuses on actions that differentiate the
organization from its competitors and aims to make long term impact on the success
of organization.

The new role of HR Managers

As HRM becomes more business oriented and strategically focused, four key roles for HR
managers can be identified:
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• strategic partner – a strategic partner role requires the ability to translate business strategy into
action. This role allows the HR manager to become part of the business team.

• administrative expert – to become administrative experts HR professionals must be able to:

re-engineer HR activities through the use of technology, rethinking and redesigning work
processes and the continuous improvement of all organisational processes; see HR as creating
value; and measure HR results in terms of efficiency (cost) and effectiveness (quality).

• employee champion – The HR professional must be able to relate to and meet the needs of
employees.

• change agent – The HR manager needs to act as a change agent, serving as a catalyst for
change within the organisation; by leading change in the HR function and by developing
problem-solving communication and influence skills.

HRM Activities
HRM involves the acquisition, development, reward and motivation, maintenance and departure
of an organisation's human resources. To do this successfully HRM must do all of the following:

• Job analysis
• Human resource planning
• Employee recruitment
• Employee selection
• Performance appraisal
• Human resource development
• Career planning and development
• Compensation
• Benefits
• Industrial relations
• Health and safety programs
• Manage diversity
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What is Human Resource Planning ?
Human Resource Planning (HRP) is the process of forecasting the
future human resource requirements of the organization and
determining as to how the existing human resource capacity of the
organization can be utilized to fulfill these requirements.
It, thus, focuses on the basic economic concept of demand and supply in
context to the human resource capacity of the organization.
It is the HRP process which helps the management of the organization in
meeting the future demand of human resource in the organization with the
supply of the appropriate people in appropriate numbers at the appropriate
time and place. Further, it is only after proper analysis of the HR
requirements can the process of recruitment and selection be initiated by
the management. Also, HRP is essential in successfully achieving the
strategies and objectives of organization. In fact, with the element of
strategies and long term objectives of the organization being widely
associated with human resource planning these days, HR Planning has
now became Strategic HR Planning.
Though, HR Planning may sound quite simple a process of managing the
numbers in terms of human resource requirement of the organization, yet,
the actual activity may involve the HR manager to face many roadblocks
owing to the effect of the current workforce in the organization, pressure to
meet the business objectives and prevailing workforce market condition.
HR Planning, thus, help the organization in many ways as follows:

▪ HR managers are in a stage of anticipating the workforce

requirements rather than getting surprised by the change of events
▪ Prevent the business from falling into the trap of shifting workforce
market, a common concern among all industries and sectors
▪ Work proactively as the expansion in the workforce market is not
always in conjunction with the workforce requirement of the
organization in terms of professional experience, talent needs, skills,
etc.
▪ Organizations in growth phase may face the challenge of meeting the
need for critical set of skills, competencies and talent to meet their
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strategic objectives so they can stand well-prepared to meet the HR
needs
▪ Considering the organizational goals, HR Planning allows the
identification, selection and development of required talent or
competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR

Planning to prevent any unnecessary hurdles in its workforce needs. An
HR Consulting Firm can provide the organization with a comprehensive HR
assessment and planning to meet its future requirements in the most cost-
effective and timely manner.
An HR Planning process simply involves the following four broad
steps:

▪ Current HR Supply: Assessment of the current human resource

availability in the organization is the foremost step in HR Planning. It
includes a comprehensive study of the human resource strength of
the organization in terms of numbers, skills, talents, competencies,
qualifications, experience, age, tenures, performance ratings,
designations, grades, compensations, benefits, etc. At this stage, the
consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities
they consider basic or crucial for various business processes.
▪ Future HR Demand: Analysis of the future workforce requirements of
the business is the second step in HR Planning. All the known HR
variables like attrition, lay-offs, foreseeable vacancies, retirements,
promotions, pre-set transfers, etc. are taken into consideration while
determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or
dismissals are also included in the scope of analysis.
▪ Demand Forecast: Next step is to match the current supply with the
future demand of HR, and create a demand forecast. Here, it is also
essential to understand the business strategy and objectives in the
long run so that the workforce demand forecast is such that it is
aligned to the organizational goals.
▪ HR Sourcing Strategy and Implementation: After reviewing the
gaps in the HR supply and demand, the HR Consulting Firm develops
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plans to meet these gaps as per the demand forecast created by
them. This may include conducting communication programs with
employees, relocation, talent acquisition, recruitment and
outsourcing, talent management, training and coaching, and revision
of policies. The plans are, then, implemented taking into confidence
the mangers so as to make the process of execution smooth and
efficient. Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any
untoward situation coming from the employees.

Hence, a properly conducted process of HR Planning by an HR Consulting

Firm helps the organization in meeting its goals and objectives in timely
manner with the right HR strength in action.

Job Analysis - Job Description and Job Specification

Job analysis is primary tool in personnel management. In this
method, a personnel manager tries to gather, synthesize and
implement the information available regarding the workforce in the
concern. A personnel manager has to undertake job analysis so
as to put right man on right job.
There are two outcomes of job analysis :

1. Job description
2. Job specification

The information collected under job analysis is :

1. Nature of jobs required in a concern.

2. Nature/ size of organizational structure.
3. Type of people required to fit that structure.
4. The relationship of the job with other jobs in the concern.
5. Kind of qualifications and academic background required for
jobs.
6. Provision of physical condition to support the activities of the
concern. For example- separate cabins for managers,
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special cabins for the supervisors, healthy condition for
workers, adequate store room for store keeper.

Advantages of Job Analysis

1. Job analysis helps the personnel manager at the time of

recruitment and selection of right man on right job.
2. It helps him to understand extent and scope of training
required in that field.
3. It helps in evaluating the job in which the worth of the job has
to be evaluated.
4. In those instances where smooth work force is required in
concern.
5. When he has to avoid overlapping of authority- responsibility
relationship so that distortion in chain of command doesn’t
exist.
6. It also helps to chalk out the compensation plans for the
employees.
7. It also helps the personnel manager to undertake
performance appraisal effectively in a concern.

A personnel manger carries analysis in two ways :

a. Job description
b. Job specification

1. JOB DESCRIPTION is an organized factual statement of job

contents in the form of duties and responsibilities of a
specific job. The preparation of job description is very
important before a vacancy is advertised. It tells in brief the
nature and type of job. This type of document is descriptive
in nature and it constitutes all those facts which are related
to a job such as :
1. Title/ Designation of job and location in the concern.
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2. The nature of duties and operations to be performed in
that job.
3. The nature of authority- responsibility relationships.
4. Necessary qualifications that are required for job.
5. Relationship of that job with other jobs in a concern.
6. The provision of physical and working condition or the
work environment required in performance of that job.

Advantages of Job Description

7. It helps the supervisors in assigning work to the

subordinates so that he can guide and monitor their
performances.
8. It helps in recruitment and selection procedures.
9. It assists in manpower planning.
10. It is also helpful in performance appraisal.
11. It is helpful in job evaluation in order to decide
about rate of remuneration for a specific job.
12. It also helps in chalking out training and
development programmes.
2. JOB SPECIFICATION is a statement which tells us
minimum acceptable human qualities which helps to perform
a job. Job specification translates the job description into
human qualifications so that a job can be performed in a
better manner. Job specification helps in hiring an
appropriate person for an appropriate position. The contents
are :
1. Job title and designation
2. Educational qualifications for that title
3. Physical and other related attributes
4. Physique and mental health
5. Special attributes and abilities
6. Maturity and dependability
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Advantages of Job Specification

7. It is helpful in preliminary screening in the selection

procedure.
8. It helps in giving due justification to each job.
9. It also helps in designing training and development
programmes.
10. It helps the supervisors for counseling and
monitoring performance of employees.
11. It helps in job evaluation.
12. It helps the management to take decisions
regarding promotion, transfers and giving extra benefits
to the employees.

From the above advantages, we can justify the importance of job

analysis and it’s related products. Both job description as well as
job specification are important for personnel manager in
personnel management function. Therefore, job analysis is
considered to be the primary tool of personnel management.