Human Resource Management

Chapter 1

Introduction to HRM

Topics to be covered
We will cover the following:
Introduction to Management
Organization
Introduction to HRM
Evolution & History of HRM
Objective of HRM
Important terminology

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 Introduction to Management
Management is the process of designing and
maintaining an environment in which individuals
working together in groups, efficiently accomplish
selected aims.
Management can be defined as ensuring an
organization makes the most effective and
efficient use of resources in order to achieve
agreed objectives.
The process of getting things done, effectively and
efficiently, through and with other people

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 Organization
Organization
A systematic arrangement of people brought
together to accomplish some specific purpose;
applies to all organizationsfor-profit as well
as not-for-profit organizations.
Where managers work (manage).

Common Characteristics of Organizations

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 Management Activities
Organizing
Planning Determining what
Defining goals and needs to be done, in
establishing what order, and by
action plans whom
Effective
Management
Controlling
Leading
Monitoring activities
Guiding and
to ensure that they
motivating all
are achieving
involved parties
results

Model of Management 4
 Models of Management

Planning
Select goals and
ways to attain
them
Resources Performance
Human Attain goals
Controlling Organizing
Financial Products
Monitor activities and Assign responsibility
Raw Materials make corrections for task Services
Technological accomplishment Efficiency
Information Effectiveness

Leading
Use influence to
motivate employees

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 Management Levels (typical)

SOURCE: Adapted from Thomas V. Bonoma and Joseph C. Lawler, Chutes and Ladders: Growing the General Manager, Sloan Management Review (Spring 1989), 27-37.

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 Fundamental Management Skills
Technical
Skills necessary to accomplish or understand the specific
kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, and motivate
both individuals and groups.
Conceptual
The managers ability to think in the abstract.
Diagnostic
The managers ability to visualize the most appropriate
response to a situation.

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 Fundamental Management Skills (contd)

Communication
The managers abilities both to convey ideas and
information effectively to others and to receive ideas and
information effectively from others.
Decision-Making
The managers ability to recognize and define problems and
opportunities correctly and then to select an appropriate
course of action to solve the problems and capitalize on
opportunities.
Time-Management
The managers ability to prioritize work, to work efficiently,
and to delegate appropriately.

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 A Definition of Personnel
Management
Managing personnel is the process of making sure the
employees (not the customers) are as productive as they
can be. This can include hiring, firing, or transferring
people to/from jobs they can do most productively.

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 A Definition of HRM?
Human resource management is a distinctive approach
to employment management which seeks to achieve
competitive advantage through the strategic deployment
of a highly committed and capable workforce, using an
array of cultural, structural and personnel techniques
(Storey J., Human Resource Management - A Critical Text)

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 Human Resource Management

Human represents the dimension of HRM which relates to

the soft aspects such as commitment of employees through
participation and the most important assets being the
employees.
Resource represents the hard aspects such as the strategy
link of HRM and the importance of efficient utilization of
employees.
Management represents the role of HRM as part of
management that implies that its not only an administrative
function that carries out the formulated policies but also a
managerial function that contributes to strategy formulation.

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 History and Evolution of HR
Key principles and practices associated with HRM
date back to the beginning of mankind.
Mechanisms were developed for the selection of
tribal leaders, for example. More advanced HRM
functions were developed as early as 1000 and
2000 B.C. Employee screening tests have been
traced back to 1115 B.C. in China, for instance.
The terminology used to describe the role and
function of workers has evolved from "personnel"
to "industrial relations" to "employee relations" to
"human resources."

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 History and Evolution of HR
The need for an organized form of HRM
emerged during the industrial revolution, as
the manufacturing process evolved from a
cottage system to factory production. As the
United States shifted from an agricultural
economy to an industrial economy,
companies were forced to develop and
implement effective ways of recruiting and
keeping skilled workers.

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 History and Evolution of HR
There were two other particularly important
contributing factors to the origination of modern
HRM during 1880s to 1940s . The first was the
industrial welfare movement, which represented
a shift in the way that managers viewed
employeesfrom nonhuman resources to human
beings.
The second factor was Frederick W. Taylor's
(1856-1915)Scientific Management, a landmark
book that outlined management methods for
attaining greater productivity from low-level
production workers.
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 History and Evolution of HR
In the 1960s and 1970s the federal government
furthered the HRM movement with a battery of
regulations created to enforce fair treatment of
workers, such as the Equal Pay Act of 1963, the
Civil Rights Act of 1964, the Employee
Retirement Income Security Act of 1974 (ERISA)
Furthermore, during the 1970s, HRM gained
status as a recognized profession with the advent
of human resource programs in colleges

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 History and Evolution of HR
The whole evolutionary activities and concept
of HR recently help to shift the orientations:
such as changes from personnel to human
resources, from administration to
management, and from human relations to
organizational effectiveness so now HR has
aligned with Senior Management.
HR also now has more input on business
strategies - training, safety, globalization, etc

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 Evolution of HR in the Subcontinent
(Specially in India)
Period Developme Outlook Emphasis Status
nt Status

1920- Beginning Pragmatism Statutory, welfare, Clerical

1930 of Capitalists paternalism

1940- Struggling Technical, Introduction of Administrative

1960 for legalistic techniques
recognition
1970- Achieving Professional, Regulatory, Managerial
1980 sophisticati legalistic and conforming, imposition
on impersonal of standards on other
functions
1990- Promising Philosophical Human Values, Executive
2000 Productivity through
people
2000- Professional Dynamism Business Partner and Strategic
change agent
Evolution in HR in Bangladesh
There is no specific records for the evolution of HRM in
Bangladesh. But it is assumed that Before 1970 the whole
activities was maintained directly under the administrative
department
1970-80: the importance of Personnel management or
HRM is being recognized for the settlement of some
industrial disputes under the Factory, Industrial & labor
law.
1980 to 90: The Personnel management concept has started
with recognition
1990 to till date: After 1990 The HR concept has started
narrowly. From 1997 to 2000 HR concepts tried to
achieve the recognition. After that it has recognized. Some
organization started to set HR department. But till today
this concept is struggling to achieve the mass recognition.

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 Objectives of HRM
HRM objectives are four fold
Societal Objectives: To be ethically and socially
responsible to the needs and challenges of the society
while minimizing the negative impact of such demands
upon the organization. Example - Legal compliance, union
management, benefits
Organizational Objectives: To recognize the role of
HRM in bringing about organizational objectives.
Example-HRP, Employee relation, Selection, TRD, PA etc
Functional Objectives: To maintain the departments
contribution at a level appropriate to the organizations
needs. Ex-Recruitment, selection, PA etc
Personal Objectives: To assist employees in achieving
their personal goals, at least insofar as these goals enhance
the individuals contribution to the organization. Ex-TRD,
Placement, compensation, assessment
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 HR Practices in BD
HR practice in Bangladesh is better than
the past. But there are scope to be
improved. The following areas on which
the concept has been improvably
practiced:
Functional Concept:
HR role was concentrated to hiring firing
and letter issuance-dispatching-filing stage
Now change to Employee motivation,
Employee development, employee
retention, facilitating organizational
development initiatives etc.

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 HR Practices in BD

Investment Concept:
Treated as a cost centre, so no initiative for the
development of HR
Now HR treats as investment centre. As such
in many organizations, employee
development is viewed as part of
business plan.

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 HR Practices in BD

Relationship: Employer - Employee relationships is

better than the past. But till now there are a lot of
scope to improve in the employer-employee relation
as well as employee-employee relations.

Recognition: Employers now started to recognition of

the employees participation in business planning,
major decision making and organizational change
process has increased. But till today this practice is
suffering with lots of limitations

Formation of the Bangladesh Society for Human

Resources Management- A platform for HR
Professionals in Bangladesh
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