The Evolution of HRM

Functional / classical approach (1800’s-

1930’s)
 Goal attainment through scientific
method
 Rules
 Characteristics
• Specialization
• Rules for job
• HR as a burden
• Pyramid organizational
Structure
Frederick Taylor Henry Fayol Max Weber
FREDERICK TAYLOR (1856- 1919)
Scientific Management
 The scientific management movement produced revolutionary
ideas for the time—ideas such as employee training and
implementing standardized best practices to improve productivity.

 Taylor’s theory was called scientific because to develop it, he

employed techniques borrowed from botanists and chemists, such
as analysis, observation, synthesis, rationality, and logic
Four Principles of Scientific Management

 "rule of thumb," or simple habit and common sense  use the

scientific method to study work and determine the most efficient
way to perform specific tasks.
 simply assign workers to just any job  match workers to their
jobs based on capability and motivation, and train them to work
at maximum efficiency.
 Monitor worker performance, and provide instructions and
supervision to ensure that they're using the most efficient ways of
working.
 Allocate the work between managers and workers
- the managers spend their time planning and training,
- the workers to perform their tasks efficiently.
Scientific management
1909-"The Principles of Scientific
Management.”
“Time and Motion" studies
Max Weber (1864 – 1920)
Bureaucracy

Weber noted six major principles:

1. A formal hierarchical structure

Each level controls the level below and is controlled by the level above. A formal
hierarchy is the basis of central planning and centralized decision making.

2. Management by rules

Controlling by rules allows decisions made at high levels to be executed consistently by

all lower levels.

3. Organization by functional specialty

Work is to be done by specialists, and people are organized into units based on the type
of work they do or skills they have.
4. An "up-focused" or "in-focused" mission

If the mission is described as "up-focused," then the organization's purpose is to serve

the stockholders, the board, or whatever agency empowered it. If the mission is to serve
the organization itself, and those within it, e.g., to produce high profits, to gain market
share, or to produce a cash stream, then the mission is described as "in-focused."

5. Purposely impersonal

The idea is to treat all employees equally and customers equally, and not be influenced
by individual differences.

6. Employment based on technical qualifications

(There may also be protection from arbitrary dismissal.)

The bureaucratic form, according to Parkinson, has another attribute.

Henry Fayol (1841-1925)
Classical Management
Henri Fayol (1841–1925) is often described as the ‘father’ of modern
management. He had been managing director of a large French mining
company, and was concerned with efficiency at an organisational level rather
than at the level of the task. Drawing on his experience of what worked well
in an organisation, he developed a general theory of business administration.

He first broke management down into five distinct elements:

forecasting and planning – looking into the future and drawing up action plans
organising – building up the material and human structure of the undertaking
commanding – maintaining activity amount personnel
coordinating – unifying and harmonising activity and effort
controlling – ensuring that things conform to rules and instructions
CONT….
 Henri Fayol's "14 Principles of Management" have been a
significant influence on modern management theory. His
practical list of principles helped early 20th century
managers learn how to organize and interact with their
employees in a productive way.

 Although the 14 Principles aren't widely used today, they

can still offer guidance for today's managers. Many of the
principles are now considered to be common sense, but at
the time they were revolutionary concepts for
organizational management.
 Division of Work – When employees are
specialized, output can increase because they
become increasingly skilled and efficient.
 Authority – Managers must have the authority
to give orders, but they must also keep in
mind that with authority comes responsibility.
 Discipline – Discipline must be upheld in
organizations, but methods for doing so can
vary.
 Unity of Command – Employees should have
only one direct supervisor.
 Unity of Direction – Teams with the same
objective should be working under the
direction of one manager, using one plan.
This will ensure that action is properly
coordinated.
 Subordination of Individual Interests to the
General Interest – The interests of one
employee should not be allowed to become
more important than those of the group. This
includes managers.
 Remuneration – Employee satisfaction
depends on fair remuneration for everyone.
This includes financial and non-financial
compensation.
 Centralization – This principle refers to
how close employees are to the decision-
making process. It is important to aim for
an appropriate balance.
 Scalar Chain – Employees should be aware
of where they stand in the organization's
hierarchy, or chain of command.
 Order – The workplace facilities must be
clean, tidy and safe for employees.
Everything should have its place.
 Equity – Managers should be fair to staff at
all times, both maintaining discipline as
necessary and acting with kindness where
appropriate.
 Stability of Tenure of Personnel – Managers
should strive to minimize employee
turnover. Personnel planning should be a
priority.
 Initiative – Employees should be given the
necessary level of freedom to create and
carry out plans.
 Esprit de Corps – Organizations should
strive to promote team spirit and unity.
Behavioral approach (late 1940s-
early 1950s)
 Hawthorne Study
Open system approach (1960s-1970s)

 Environment
 System theory:
Input-throughput-output
 CURRENT HUMAN RESOUCE
DEVELOPMENT (1980’S)

 Workers are very important

 Focus on motivation
 Concern about workers need
 Emphasize on skills and value kemahiran

 Structure of organization -
flatter
Current HR

 HR  asset
 characteristics:
• Senior leaders commitments towards change
• Employee participation and open communication
• HR in strategic planning

• Strategic investment in
workforce
 HRM is the utilization of individuals to
achieve organisational objectives –
Mondy (2008)

 HRM is particularly concerned with all

the activities that contribute to
succesfully attracting, developing,
motivating and maintaining a high-
performing workforce that result in
organisational success – Sims (2006)
 SHIFTS THAT ARE RE-SHAPING HR ROLES
FROM
Local markets, operations
Manufacturing, clerical work
Hierarchy
Intermediaries; face-to-face
Obedience to formal authority
Stability, efficiency, control
Full time job
Customer service
Work done by employees
Fixed work location
Loyal service
White, male workforce
Financial performance
“Get a job”
TO
Global markets, operations
Service, knowledge work
Networks
Direct access, virtual relationship
Questioning of formal authority
Change, creativity, flexibility, order
Part-time and project work
Shareholder, stakeholder value
Work done by many contributors
Diverse work locations
Marketable knowledge, skills
Diverse workforce
Triple bottom line (3BL- people,
planet, profit- eg. Sustainability)
“Get a life”
 Raymond Davies – 1965
 Managing people as a resource
 emerged in the 1980s
1990 – Kementerian Buruh  Kementerian
Sumber Manusia
“ to direct the attention to regarding people as
the key resource of organisations and
lending the management of personnel
increased importance”