HUMAN RESOURCE

MANAGEMENT
Evolution of HRM

HRM-type themes, including 'human capital theory' and 'human asset accounting'
can be found in literature dating as far back as the 1970s. But the modern view of
human resource management first gained prominence in 1981 with its introduction
on the prestigious MBA course at Harvard Business School.

The Harvard MBA provided a blueprint for many other courses throughout North
America and the rest of the world, making its interpretation of HRM particularly
influential (Beer et al, 1984; Guest, 1987; Poole, 1990). Simultaneously, other
interpretations were being developed in Michigan and New York.

These ideas spread to other countries in the 1980s and 1990s, particularly Australia,
New Zealand, parts of northern Europe - especially the UK, Ireland and Scandinavia -
and also South and South-East Asia and South Africa. Today, the HRM approach is
influential in many parts of the world.

Scientific approach to understanding Human Resource was introduced by F.W.

Taylor. He pointed out the need to select employees on scientific lines, their training
and also co-operation between management and employees. He was criticized for
considering humans as machines. Further studies by Maslow’s motivation theory
based on concept of hierarchy of human needs and Mc Gregor’s contribution of
Theory X and Theory Y defined more understanding of Human Resource. Mayo’s
Hawthorne experiments on understanding human relation s is also a major step in this
direction

In Modern times, Peter Drucker and Douglas McGregor have laid the foundation for
development of Human Resource. Peter Drucker said that” An effective management
must direct the vision and efforts of all managers towards a common goal”.
McGregor advocated management by Integration and Self Control. He suggested that
people should be managed by considering their attitudes and beliefs. The
management he suggested has a critical role to play in integration of these attitudes
and beliefs and developing them further.

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Evolution of HRM in India

The importance of personnel/human resources management is now universally

accepted and India is not an exception to this rule. In India, large business enterprises,
public sector enterprises and even medium and small enterprises appoint personnel
manager or human resources development (HRD) manager to look after the personnel
functions such as recruitment, promotions and transfers, training and manpower
development, provision of welfare facilities, compensation management and so on.
The term HRM is a relatively new term emerged during the 1970s. It is now used as a
better and meaningful substitute to personnel management. HRM is wider in scope
and has its distinct philosophy.

The process of industrial development started in India rather late. It was during the
British Rule and that too after the First World War that textile, jute, iron and steel
and other organized industries started in India. Recruitment, wage payment, welfare
facilities and other personnel problems were noted only when labour class was
employed on a large scale in the industrial sector. This is the starting period for
personnel management in India. In the early British period and prior to that
personnel management and personnel functions were absent, (Reference to some
personnel functions and systematic management of resources was made in Kautilya's
Arthashastra during the 4th century Be.) as industrial activities were extremely
limited. They were also conducted on a small scale. As compared to India, the
industrial growth was rapid in Europe. As a result, the concept of personnel functions
and personnel management made rapid progress. The concept of personnel
management function in India is based on similar concept developed in Europe much
earlier.

The personnel function in India has been the product(outcome) of various factors
such as industrial growth, labour, legislation, exploitation of workers in the early
period and their demand for certain basic necessities of life. (e.g. fair wage, weekly,
holiday, essential facilities at the work place)The need for labour officers in Indian
industry was felt/realized as early as 1929 for the protection of labour force in
industrial units.

In 1931, the members of Bombay Mill owners' Association appointed Labour Officers
in their textile mills (on voluntary basis) for the settlement of grievances and disputes
of employees. Similar arrangement was introduced in the jute mills in Bengal (under
the leadership of Jute Mills Association). The labour welfare officers were given the
responsibility to promote sports and welfare activities and provide food shops
(canteen facility) to workers.

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After Independence, many pro labour legislations were made for the protection and
welfare of workers. The scope of personnel management function was made more
broad and liberal. Many provisions regarding recruitment, salary payment and
conditions of service were laid down. This gave recognition to the personnel
management function in the industrial establishments.

Gradually, the need of personnel management and its role in cordial labour relations
and fair treatment to employees need were recognized by industrial organizations.
Personnel departments under the leadership of personnel managers were started in
the companies. Liberal welfare facilities were introduced for the benefit of employees.
Such measures taken for the protection and welfare of employees enlarged the scope
of personnel management. Even training and manpower development programmes
added new dimensions to the activities of personnel management. Many companies
have now, prepared well-defined personnel policies, grievance and other procedures
and liberal package of welfare facilities. Such additional activities/functions under
personnel management raised the importance and popularity of personnel
department.

Created by Soumi Rai.Copyright material

Created by Soumi Rai.Copyright material