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Evolution of the concept of HRM

Evolution of the concept of HRM. Introduction. Evolution. The early part of the century saw a concern for improved efficiency through careful design of work. During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity.

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Evolution of the concept of HRM

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  1. Evolution of the concept of HRM Introduction

  2. Evolution • The early part of the century saw a concern for improved efficiency through careful design of work. • During the middle part of the century emphasis shifted to the availability of managerial personnel and employee productivity. • Recent decades have focussed on the demand for technical personnel, increased concern for the quality of working life, total quality management and renewed emphasis on productivity.

  3. Evolution of the Personnel Function

  4. Evolution of the Personnel Function

  5. Growth in India • Early Phase: Though HRM is a discipline of recent growth, it had its origin dating back to 18 B.C for eg: the minimum wage rate and incentive wage plans were included in the Babylonian code of Hammurabi around 1800 B.C. • The chinese during 1650 B.C had originated the principle of division of labour and they understood labour turnover even in 400 B.C • Kautilya in India in his book Arthashatra made reference to various concepts like Job analysis, selection procedures, executive development, incentive system and performance appraisal.

  6. Growth in India • Legal Phase: The early roots of HRM in India could be traced back to the period after 1920. • The Royal commission on labour in 1931 suggested the appointment of labour officer to protect workers interest and act as a spokesperson of labour. • Meanwhile two professional bodies viz, the Indian Institute of Personnel Management (IIPM) Kolkata and the National Institute of Labour Management (NILM) Mumbai have come into existence in 1950s.

  7. Growth in India • Welfare Phase: During the 196s the scope of personnel function has expanded a bit, covering labour welfare, participative management, industrial harmony etc. • The legalistic preoccupations slowly gave way to harmonious industrial relations and good HR practices.

  8. Growth in India • Development Phase: in 1960s and 70s the HR professionals focused more on developmental aspects of human resources • The emphasis was on striking a harmonious balance between employee demands and organisational requirements.

  9. Using HRM to attain Competitive advantage • It is the ability of a firm to win consistently over the long term in a competitive situation. • It occurs when the firm does something that others cannot do . • For eg: Dell has a competitive advantage of selling its products directly to the customers. • Human resource professionals have agreed that the key to a firm’s success depends on a set of core competencies in the form of skills, knowledge, experience and ability to use these to the advantage of the firm when required which separates the firm from its rivals.

  10. Competitive Advantage • Organisations can achieve a sustained competitive advantage through people if they meet the following conditions • Superiority : requires single-minded focus on customer needs and expectations • Federal express was one of the first companies to introduce package tracking capability • HR can bring that plus value to the firm by hiring best talent that actually matches with organisational culture • ;

  11. Competitive Advantage • Inimitability: to gain the edge the firm must erect barriers and must offer product or service that is not easy to imitate or copy. • An organiation should always try to be unique in its industry. • Starbucks are known for creating unique culture that are difficult to imitate.

  12. Competitive Advantage • Durability: sustaining for a longer period • IBM and GE have over the years, perfected the art of blending the diverse skill sets of people and deploying them on challenging assignments . • To conclude, for delivering superior value and offer unmatched service, every firm requires the services of a committed and competent workforce.

  13. Competitive Advantage • There is increasing research evidence indicating that employees are most productive if: • They are loyal to the company, informed about its mission, strategic and current level of success. • Trusted to take right decisions • Involved in teams which collectively decide how things are to be done.

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