1.

1 DEFINITION AND CATEGORIZATION OF RESOURCE IN ORGANIZATION

i.Human Resource Management is the process of making the efficient and effective use of human
resources so that the set goals are achieved.
Or
Is the planning, organizing, directing and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organizational and social objectives are accomplished.
ii. Human Resource Development is a framework for helping an employee develop their personal
and organizational skills, knowledge and ability.
OR
Is the integrated use of training and career development efforts to improve the performance of
the individual or groups as well as overall organizational effectiveness.
iii. Human Resource Manager is someone who oversees the administrative and organizational
functions of a company or business.
iv. Human Resource Developer is the person or manager responsible for training and improving
employees’ skills, knowledge and ability in achieving the organization’s goal.
v. History of Human Resource Management

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Some serious thoughts were applied towards the effective utilization of the labour force in
industrial organizations after the industrial revolution that started in the 19th century. Since then,
organized practices relating to the management of people, initially labour force and subsequently
managerial personnel also, started taking place and literature describing these practices started
emerging.

From the industrial revolution era to the present era, various stages of development of
management of human resource practices may be classified as follows:

1. Industrial Revolution era— 19th century

2. Trade union movement era — close to the 19th century

3. Social responsibility era — beginning of the 20th century

4. Scientific management era— 1900-1920s

5. Human relations era— 1930s-1950s

6. Behavioural science era— 1950s-1960s

7. Systems and contingency approach era – 1960 onwards

8. Human resource management era — 1980 onwards

The classification of various stages of development of management of human resources in terms

of the period shows the beginning of that era. In each era, emphasis has been put on a particular
approach to managing people at work. A succeeding era does not mean the complete end of the
preceding era but there has been overlapping in these.

The main features of these eras and the type of practices related to managing human
resources are as follows:

1. Industrial Revolution Era:

The systematic development of HRM started with the industrial revolution that started during
the 1850s in Western Europe and the USA. The industrial revolution consisted, essentially, of
the development of machinery, the use of mechanical energy in production processes, and
consequently the emergence of the concept of the factory with a large number of the workforce
working together.

The factory system replaced the old cottage system. The Industrial Revolution brought out a
number of changes centralized work locations with a large number of workers working
together, mechanized production process, migration of workers from their place of origin,
and indirect contact between factory owners and workers.

In order to manage people in the factory system of the industrial revolution, three systems of
HRM were developed- recruitment of workers, training for workers, and control of workers.
However, the basic philosophy of managing workers revolved around the master-servant
relationship

2. Trade Union Movement Era:

Shortly after the emergence of the factory system, workers started to organize themselves based
on their common interests to form workers’ associations which were subsequently known as
trade unions. The basic objectives of these associations were to safeguard the interests of their
members and to sort out their problems which arose primarily because of the employment of
child labour, long hours of work, and poor working conditions.

Later, other aspects of work such as economic problems and wages, employee benefits and
services, etc. also became issues. These trade unions started such weapons as strikes, slowdowns,
walkouts, boycotts, etc., for the acceptance of their demands.

These activities of the trade unions forced owners and managers to adopt employee grievance
handling systems, arbitration as a means of resolving conflicts between owners/managers and
workers, disciplinary practice, expansion of employee benefit programmes, holiday and vacation
time, clear definition of job duties, job rights through seniority, and installation of rational and
defensible wage structures.

3.Social Responsibility Era:

In the first decade of the 20th century, some factory owners started adopting a more humanistic
and paternalistic approach towards workers. The paternalistic approach to labour management
is based on the philosophy that labour is just like a child and the owner is just like a father and
the owner should take care of his labour just like a father takes care of his children.

Those industrialists who adopted a paternalistic approach offered a number of concessions and
facilities to the labour force like reduced number of work hours, improved facilities at the
workplace, model villages to workers, etc. All these practices led to the development of the social
welfare aspect of labour management.

Many critics of the paternalistic approach viewed that this approach was adopted to overcome
the problems posed by the labour union movement as plenty of trade unions emerged which
frequently interrupted work performance. Employers observed that workers were going out of
their control and to overcome this problem, they implemented a welfare scheme. Thus, this was
a compulsion rather than a philosophy.
4. Scientific Management Era:

Around the beginning of the 20th century, Taylor started to find out the ‘one best way of doing
things based on time and motion studies. On the basis of his experiments, he was able to increase
workers’ productivity considerably and wrote many papers based on these experiments and a
book on scientific management.

The main principles of scientific management are:

(i) Replacing the rule of thumb with science, (ii) harmony, not conflict, (iii) cooperation, not
individualism, and (iv) development of each and every person. Scientific management
techniques relevant to the management of workers are- functional foremanship,
standardization and simplification of work, and the differential piece wage system.

5. Human Relations Era:

Around the 1920s, management researchers gave a close look at the human factor at work and the
variables that affected people’s behaviour. Before that, Hugo Munsterberg wrote a book on
‘Psychology and Industrial Efficiency’ which suggested the use of psychology in the field of
personnel testing, interviewing, attitude measurement, learning, etc.

This brief period was termed as ‘Industrial Psychology Era’. In 1924, a group of professors
from Harvard Business School, USA, began an enquiry into the human aspects of work and
working conditions at the Hawthorne plant of Western Electric Company, Chicago.

They conducted research from 1924 to 1932 and arrived at the conclusion that the productivity
of workers depended on- (i) social factors at the workplace, (ii) group formation and group
influence, (iii) the nature of leadership and supervision, and (iv) communication.

They concluded that in order to have better productivity, management should take care of
human relations besides the physical conditions at the workplace. Consequently, the concepts
of the social system, informal organization, group influence, and non-logical behaviour entered
the field of management of personnel.
6. Behavioural Science Era:

In contrast to human relations which assume that happy workers are productive workers,
behavioural scientists have been goal and efficiency-oriented and consider the understanding
of human behaviour to be the major means to that end. They have tried several sophisticated
research methods to understand the nature of work and the people in the work environment.

The contribution of behavioural scientists to management practices consists primarily of

producing new insights rather than new techniques. It has developed or expanded a useful way
of thinking about the role of the manager, the nature of organizations, and the behaviour of
individuals within organizations. As against the human relations model, they have given the
concept of the human resource model.

Major conclusions of the contributions made by behaviouralists are as follows:

i. People do not dislike work. If they have been helped to establish objectives, they will want to
achieve them. In fact, the job itself is a source of motivation and satisfaction for employees.

ii. Most people can exercise a great deal of self-direction and self-control and generate more
creativity than required in their current job. Therefore, their untapped potential remains
unutilized.

iii.Managers’ basic job is to use untapped human potential in the organization.

iv. Managers should create a healthy environment wherein all persons can contribute to the best
of their capacity. The environment should provide a healthy, safe, comfortable, and convenient
place to work.

v. Managers should provide an opportunity for self-direction by their subordinates and

they must be encouraged to participate fully in all important matters.

vi. Operating efficiency can be improved by expanding subordinate influence, self-direction,

and self-control.

vii. Work satisfaction may improve as a ‘by-product’ of subordinates making full use of
their potential.
The behavioural science era led to the development of two-way communication, participation of
employees in decision-making, joint goal-setting, group dynamics, management development,
and management of change in the organization. These contributions of the behavioural science
era are the backbone of the behavioural approach of human resource management even in the
present context.

7. Systems and Contingency Approach Era:

Systems and contingency approaches have attracted the maximum attention of thinkers in
management in the present era. It is an integrated approach which considers the management of
human resources in its totality based on empirical data. The basic idea of this approach is that
the analysis of any object must rely on a method of analysis involving simultaneous variations of
mutually-dependent variables. This happens when a systems approach is applied in managing
human resources.

8. Human Resource Management Era:

When the factory system was applied in production, a large number of workers started working
together. A need was felt there should be someone who should take care of recruiting,
developing, and looking after the welfare of these workers. For this purpose, the industrial
relations department came into existence in most large organizations which were concerned
mostly with workers.

However, as time passed and the complexity of managing human resources in large business
organizations increased, the scope of the industrial relations department was extended to cover
supervisory staff and subsequently managerial personnel. The industrial relations department
was named as personnel department.

With the increasing competition for market share, competition for resources including human
talents, and increased knowledge in the field of managing human resources, people were not
treated merely as physiological beings but as socio-psychological beings as a prime source of
organizational effectiveness and large organizations change the nomenclature of their personnel
department of human resource department to reflect the contemporary view.

Even the American Society for Personnel Administration, the largest professional association in
the field of human resource management changed its name to the Society for Human Resource
Management in 1900. At the academic level, a similar pattern was followed and the title of the
personnel management course was changed to human resource management. Since then, the
expression is gradually replacing the hackneyed term ‘personnel management
VI. HISTORY OF HUMAN RESOURCE DEVELOPMENT (HRD)
Early Apprenticeship Training Programs
The origin of HRD can be traced by apprenticeship training programs in 18th C. During this time
small shops operated by skilled artisans produced entirely all household good such as furniture,
clothing and shoes. To meet the a growing demand for their products, craft-shop owners had to
employ additional workers. Without vocational or technical schools, the shopkeepers had to
educate and train their own workers. For little or no wages, these trainees or apprentices learned
the craft of master, usually working in the shop for several years until they became proficient in
their trade.
Apprentices who mastered all the necessary skills were considered “yeomen” and could leave
their master and establish their own craft shops however, most remained with their masters
because they could not afford to buy the tools and equipment’s needed to start their own craft
shops. To address a growing number of yeomen, master craftsmen formed a network of private
“franchises” so they could regulate such things as product quality, wages and hours and
apprentice- testing procedures.
Early Vocational Education Programs
In 1809, a man named DeWilt Clinton founded the first recognized, privately funded vocational
schools, also referred to manual school in New York City. The purpose of the manual school was
to provide occupational training to unskilled young people who were unemployed or had
criminal records.
Early Factory Schools
With the advent of Industrial revolution during late 1800’s machines began to replace the hand
tools of the artisans. Factories made it possible to increase production by using machines and
unskilled workers but they also created a significant demand for engineers, machinists, and
skilled mechanics needed to design, build and repair the machines. To meet this demand
factories created mechanical and machinist training programs which were referred to as factory
schools.
Early Training Programs for Semiskilled and Unskilled workers
Although both apprenticeship programs and factory schools provided training for skilled
workers, very few companies during this time offered training programme for unskilled or
semiskilled workers. This changed after significant historical events.
The first was the introduction of the Model T by Henry Ford in 1913. The Model T was the first
car to be mass produced using an assembly line, in which production required only the training
of semiskilled workers to perform several tasks.The new assembly line cut production costs
significantly and Ford lowered its prices, making the Model T affordable to a much larger
segment of the public.
Another significant historical event was the outbreak of World War One. To meet the huge
demand for military equipment many factories that produced non military goods had to retool
their machinery and retrain their workers include the semi skilled.
The Human Relation Movement
The Human relation movement advocated more human working conditions. It highlighted the
importance of human behaviour on the job. The movement continued into the 1940’s with World
War two as a backdrop. Abraham Maslow published his theory on human needs stating that
people can be motivated by both economic and non-economic incentives.
The Establishing of the Training Profession
With the outbreak of World War two, the industrial sector was once again asked to retool its
factories to support the war effort. The federal government established the Training within
Industry (TWI) service to coordinate training programs across defense-related industries. The
TWI trained company instructors to teach their programs at each plant.
In 1942, the American society for training Directors (ASTD) was formed to establish some
standards within this emerging profession.
Emergence of Human Resource Development
During 1960’s and 1970’s professional trainers realized that their role extended beyond the
training classroom. The move toward employee involvement in many organizations required
trainers to also coach and counsel employees.
This additional emphasis on employee development inspired the ASTD to rename itself as the
American Society for Training and Development (ASTD). The 1980’s saw even greater changes
affecting the Training and Development field. At several ASTD national conferences held in the
late 1970’s and early 1980’s, discussions centered on this rapidly expanding profession.
As a result, the ASTD approved the term Human resource development to encompass this
growth and change. In 1990’s effort were made to strengthen the strategic role of Human
Resource Development.
VII.FORMAL ORGANISATION
A formal organization is a structured group of people who work together to achieve common
goals. Formal organizations are typically created to accomplish specific tasks or objectives, and
they are characterized by a formal hierarchy of authority, clear lines of communication, and well-
defined roles and responsibilities.
SOME OF THE KEY CHARACTERISTICS OF FORMAL ORGANIZATIONS
INCLUDE:
Formal structure: Formal organizations are structured in a specific way, with clear lines of
authority and well-defined roles and responsibilities.
Hierarchical organization: Formal organizations are often structured hierarchically, with different
levels of authority and responsibility.

Division of labor: Formal organizations typically involve a division of labor, where different
individuals or teams are responsible for specific tasks or functions.

Rules and procedures: Formal organizations typically have established rules and procedures that
govern behavior and decision-making.

Clear communication channels: Formal organizations typically have clear lines of

communication, with well-defined channels for sharing information and making decisions.

Standardization: Formal organizations often rely on standardized processes and procedures to

ensure consistency and efficiency.

Focus on goals: Formal organizations are typically created to achieve specific goals or
objectives, and they are often focused on maximizing efficiency and productivity.

Overall, formal organizations are designed to be efficient and effective, with clear structures and
processes in place to ensure that everyone is working towards the same goals.
VIII.TYPES OF ORGANIZATION
-Meaning;
Organization refers to a collection of people towards a common goal and objective.
There are two broad categories of organization, which are;
 Formal organization
 Informal organization
1.Formal organization
-is the type of organization structure where authority and responsibility are clearly defined.
The organization structure has a defined delegation of authority, roles and responsibilities for
members. The formal organization has predetermined policies, rules, schedules, procedures and
programs.
The decision marking in a formal organization is mostly based on predetermined policies. There
are several types of formal organization based on their structure such as;
 Line organization
 Line and staff organization
 Functional organization
 Project organization
 Matrix organization
Line organization
This is the simplest organization structure and it also happen to be the oldest organization
structure. It is also known as scalar or military or departmental type of organization.
The authority flows vertically; from top -managerial level-subordinates-workers-to the end.
Advantages of line organization;
 Simple structure and easy to run
 Instructions and hierarchy clearly defined
 Rapid decision making
 Responsibility fixed at each level of organization
Disadvantages of line organization;
 It is rigid in nature
 It has a tendency to become dictatorial
 Each department will be busy with their work instead of overall development of
organization.
Line and staff organization.
This refers to an improved version of Line organization. The functional specialists are added in
the line. The staff is for assisting the line members in achieving the target effectively.

Advantages;
 Easy decision making as work is divided.
 Greater coordination between line and staff workers
 Provides workers the opportunity for growth
Disadvantages;
 Conflict may arise between line and staff members due to improper distribution of
authority.
 Staff member feel ignored because line members make decisions.
Functional organization.
This is a type of organization where the task of managing and directing the employees is
arranged as per the function they specialize.
There are three types of members such as Line members, Staff members and Functional
members.
Advantages;
 Manager has to perform a limited number of tasks which improves the accuracy of the
work.
 Improvement in product quality due to involvement of specialists.
Disadvantages;
 It is difficult in coordination
 Conflict may arise due to the members having equal positions.
Project organization.
This is a temporary form of organization structure that is formed to manage projects for specific
period of time. The organization has specialists from different departments brought together for
developing a new product.
Advantages;
 Increased coordination among the members due the presence of many specialists.
 Improves control of the process because each individual has a different set responsibility.
Disadvantages;
 There can be delay in completion of the project
 Project managers may find difficult to judge the performance of different specialists.
Matrix organization.
This is a combination of functional and project organizations. There are lines of authority, the
functional part of an organization and project management part of the organization. They have
vertical and horizontal flow of authority.
Advantages;
 Improved coordination between vertical and horizontal functions.
 Employees are motivated as every one will be working towards one project.
Disadvantages;
 There will be increased cost and paper work due to the presence of vertical and
horizontal communication.
  Having multiple supervision of workers leads to confusion and difficulty in
control.
2. Informal organization.
This refers to an organization which does not have a defined hierarchy of authority and
responsibility. The relationship between employees is formed based on common interests,
preferences and prejudices.

IX.CATEGORIES OF RESOURCES IN AN ORGANIZATION.

Organizational resources consist of the concrete materials and tangible assets that support
programs, practices improvements, and service delivery.
Resources can be broken down into four key sub dimensions;
 Staffing
This refers to a right number of people with the capabilities and time to apply desired
practices and deliver services. Calls for attention to caseload and workload management
and maintaining an adequate workforce.
 Fiscal resources
Means adequate funding to implement and sustain practices and innovation. This
includes the available funding streams, opportunities to braid or blend funding from
multiple sources, and budget allocation.
 Facility, equipment, and technology
The non-human assets (things) that support implementation, such as office space, and
computer software.
 Informational resources
The content (e.g., curricula, program guidelines, best practice information) that guides
practice, innovation, and service delivery.

1.2 IMPORTANCE OF MANAGING HR IN EDUCATIONAL ORGANISATIONS

1.2.1 Importance of human resource as the most important of all resources in an
organisation
Human resources are the most important resources in an organization because they are the ones
who manage all other resources, including financial and material resources. Human resources are
essential because they are the ones who bring knowledge, skills, and creativity to an
organization. They are responsible for carrying out the organization's objectives, goals, and
strategies.
Moreover, human resources contribute to the overall productivity and success of an organization.
They are responsible for recruiting, hiring, training, and retaining the right employees who have
the necessary knowledge and skills to carry out the tasks assigned to them. They also create a
positive work environment, which can improve employee morale, engagement, and job
satisfaction.

In addition, human resources are responsible for ensuring that the organization complies with
various laws and regulations. This includes employment laws, health and safety regulations, and
labor standards. They also manage employee benefits, compensation, and other perks, which can
help to attract and retain top talent.

Overall, human resources are important because they are the backbone of an organization. They
are responsible for managing all other resources, ensuring compliance with various laws and
regulations, and creating a positive work
Effective management of human resources can provide several benefits for an organization,
including:1.2.2
Improved productivity: When employees are managed effectively, they tend to be more engaged,
motivated, and productive. They have a clear understanding of their roles and responsibilities
and are supported in their work by effective communication and training.

Reduced turnover: Effective human resource management can help to reduce employee turnover
by fostering a positive work environment, providing ongoing training and development, and
offering competitive compensation and benefits packages.

Enhanced employee satisfaction: By ensuring that employees are treated fairly and equitably,
and by providing opportunities for growth and development, HR management can improve
employee satisfaction and retention. This can lead to a more committed and engaged workforce
that is willing to go the extra mile for the organization.

Improved organizational culture: Human resource management plays a critical role in shaping
the organizational culture, which can impact the attitudes and behaviors of employees. By
fostering a positive and supportive work environment, HR management can create a culture of
collaboration, innovation, and high performance.
Legal compliance: Effective human resource management ensures that the organization is in
compliance with various employment laws and regulations, reducing the risk of legal and
financial liabilities.

Overall, effective human resource management can contribute significantly to an organization's

success and growth by improving productivity, reducing turnover, enhancing employee
satisfaction, promoting a positive organizational culture, and ensuring legal compliance.

UNIT 1.3 ORGANISATIONAL STRUCTURE, CULTURE AND HUMAN RESOURCE

MANAGEMENT
1.3.1
i.Organizational structure refers to the formal system of authority, communication, roles,
responsibilities, and decision-making within an organization. It defines how work is divided and
coordinated among different levels and departments of the organization.
The structure of an organization can take different forms depending on factors such as the size,
complexity, and goals of the organization. Here are some common types of organizational
structures:
Functional structure: In this structure, employees are grouped according to the functions they
perform, such as marketing, finance, or operations. Each function operates independently and is
headed by a functional manager.
Divisional structure: In a divisional structure, the organization is divided into self-contained
divisions, each responsible for a specific product, service, or geographical region. Each division
has its own resources and is headed by a divisional manager.
Matrix structure: A matrix structure combines elements of both functional and divisional
structures. In this structure, employees are organized into cross-functional teams to work on
specific projects, and report to both a functional manager and a project manager.
Flat structure: A flat structure has few or no layers of management between the top-level
executives and the front-line employees. This structure emphasizes collaboration, open
communication, and empowerment.
Hierarchical structure: A hierarchical structure is characterized by multiple layers of
management, with each layer responsible for a specific level of decision-making and authority.
The choice of organizational structure depends on various factors, such as the nature of the work,
size of the organization, level of hierarchy required, and the desired level of collaboration and
coordination. A well-designed organizational structure can help to improve communication,
increase efficiency, and ensure that the organization is aligned with its goals and objectives.
1.3.2
ii. Organizational culture refers to the shared values, beliefs, attitudes, behaviors, and practices
that characterize an organization. It is the way things are done within an organization, and it
shapes the behavior and attitudes of its employees.
Organizational culture can be shaped by various factors, such as the organization's mission,
vision, and values, its history and traditions, its leadership style, its communication and reward
systems, and the behavior of its employees.
Here are some key features of organizational culture:
Shared values: Organizational culture is built on shared values and beliefs that are widely
accepted and practiced within the organization.
Norms and behaviors: Organizational culture is expressed through the norms and behaviors that
are encouraged or discouraged within the organization.
Symbols and artifacts: Organizational culture is often expressed through symbols and artifacts,
such as the physical layout of the workplace, the dress code, or the language used by employees.
Communication style: Organizational culture is expressed through the communication style of
the organization, such as the level of openness, transparency, and collaboration.
Employee engagement: Organizational culture can impact employee engagement and motivation,
as employees are more likely to be engaged and motivated when they feel a sense of alignment
with the values and goals of the organization.
Organizational culture can have a significant impact on the success and growth of an
organization. A positive culture can promote collaboration, innovation, and high performance,
while a negative culture can lead to low morale, high turnover, and decreased productivity.
Therefore, it is important for organizations to actively manage and shape their culture to ensure
that it aligns with their goals and values
1.3.3
THE RELATIONSHIP BETWEEN ORGANIZATIONAL STRUCTURE AND HUMAN
RESOURCE MANAGEMENT (HOW ORGANIZATIONAL STRUCTURE INFLUENCE
HUMAN RESOURCE MANAGEMENT)
 Framework of relationship is formed between people and organization.
Different types of organization are present such as functional, divisional. The position of HR
department in the total organization is largely dependent whether a particular unit of organization
is small or large. In small organization there might not be a separate HR department and human
resource functions might be conducted with the help of an office manager. As in large
organization there is a separate HR department.
 Influence the company’s ability to attract and retain proper human resource talent
 Provide the framework to align resources with the priorities defined in the business
strategy
 Embody the organization culture
 It shows clear specialization of work
 It gives a clear direction on who workers reach out for support.(Chain of Command)

ORGANIZATIONAL CULTURE AND HUMAN RESOURCE MANAGEMENT ARE

CLOSELY RELATED, AS THE CULTURE OF AN ORGANIZATION CAN IMPACT
HOW HUMAN RESOURCES ARE MANAGED, AND HOW HUMAN RESOURCES
ARE MANAGED CAN IMPACT THE CULTURE OF AN ORGANIZATION. HERE
ARE SOME WAYS IN WHICH THE TWO ARE RELATED: 1.3.4

 Culture shapes HR policies and practices: The culture of an organization can shape its
HR policies and practices. For example, a company that values innovation may have
policies and practices that encourage employees to experiment and take risks.

 HR practices shape organizational culture: Similarly, HR practices can shape the culture
of an organization. For example, a company that provides extensive training and
development opportunities may have a culture that values continuous learning and
improvement.

 Culture impacts employee engagement: The culture of an organization can impact

employee engagement and motivation. A positive culture that values teamwork,
collaboration, and open communication can lead to higher levels of employee
engagement.

 HR practices impact employee satisfaction: HR practices such as compensation and

benefits, performance management, and career development opportunities can impact
employee satisfaction and retention.
  Culture impacts recruitment and retention: The culture of an organization can also impact
its ability to recruit and retain top talent. A strong culture that aligns with the values and
goals of prospective employees can be a powerful tool for attracting and retaining talent.

Overall, the relationship between organizational culture and human resource management is
complex and interdependent. A positive culture can enhance HR practices and lead to higher
levels of employee engagement and satisfaction, while effective HR management can help to
shape a positive culture that promotes high performance and success.