Presentation is extracted from Therories,issues and influences in HRM,

1. Tanveer Ahmed
BS-Textile Engineer
ME/MS Textile Engineer
MS/M.phil Quality Management 2nd
Semester

2. LOGO
Table of Contents
 Introduction
 Personnel Management and HRM
 History and Origins of HRM
 Management Theories and Impact on HRM
 Stages in the Development of HRM
 HRM Concepts and Model
 HRM Roles and Functions and Strategies
 Ethical Perspective in Contemporary HRM

3. LOGO
Introduction
• Organizations Variety of purpose and
objectives rely on several kind of
resources
• Finance (banks, credit unions, stock broking
companies)
• Technology ( Telecommunication,
manufacturing, IT)
• People (Key ingredient for Organizational
success)

4. LOGO
Introduction
• People design, operate and repair
technology
• People control the financial resources
• People manage other people
• For achieving organizational objectives
• Human resource effectively managed
and their work needs are satisfied
• Recent development transform the nature of
job and work place
• Influence of globalization and technological
development
• Economic and social changes associated
with amendment to IR system and process

5. LOGO
Introduction
• Globalization has broadened the market
• IT and telecommunication system
demand new kinds of jobs, new forms of
workplace and innovative approach to all
HRM Functions.
• Economic, political and social
development some times resist changes
and some time facilitated them.
• Demands of information era enable
Changes to IR process including
• Increased flexibility
• Cooperation b/w employers, employees
and unions

6. LOGO
Personnel Management & HRM
• Personal management refers to a set of Function or
activities
• Recruiting
• Selection
• Training
• Salary administration
• Industrial relations
• Often performed effectively but with little relationship
between overall organizational objectives.
• Recent concepts of HRM assumes that all personnel
activities are integrated and strategically linked to
organizational goals/ objectives.

7. LOGO
Personnel Management & HRM
• Peter Coppleston explains HR function as an investment
area rather than a cost to the organization.
• Other writers emphasis HR Should viewed as :
• Human capital
• Human asset
• Intellectual capital
• And HR Manager utilize them as
• Critical investment
• And create and environment in which strategy is
likely to emerge

8. LOGOHISTORY AND Origins of HRM
• HRM Existed in one form or another since the beginning of time informally .
• Personnel Management in the UK and US developed earlier than in Australia due to
mass production following industrial revolution,
• The concentration of workers focus pubic attention upon condition of employment
and enable workers to collectively achieve better conditions.
• Early 1900s this led to growth of trade unionism and IR systems.
• Govt in UK and US passed a series of laws to regulate the hours of work, to
establish minimum wages and to protect workers from unhealthy working conditions.
• Theories developed and applied by both HR Specialist and General
Management reflect:
– Changes attitude to jobs
– Work process and
– Organizational structures

9. LOGOHISTORY AND Origins of HRM
• The classical school , puts emphasis on the
– Job itself
– Efficient adaptation of workers to work processes
• The Behavioral School focuses on
– workers themselves
– Satisfaction of their needs
– To achieve greater organizational productivity
• Subsequent /later management theories attempt to build on earlier ideas to benefit
both workers and their organization, particular industries, economic and social
situations.
• Relevance to HRM is twofold
– First Personnel management has historically developed into HRM by incorporating
Management theories
– Second a sound knowledge of these theories can Assist HR Managers to practice.

11. LOGO
Classical Management Theory
(Scientific Management)
• This theory of management asserts that:
– Jobs can be scientifically analyzed
– Employs can be scientifically selected
– Training ensures jobs and employee fit
– Management and employee relationships
should be friendly, cooperative and
productive
Fredrick W.Taylor (1856 – 1915)
employed this theory in his factory
By incorporating earlier ideas of
Robert Owen (1771 -1858) about The natural cooperation b/w management and
employees.
Taylor work has been developed by
Henry L.Gantt and Frank and Lillian
Gibreth.
Including the Idea of productivity
bonuses and work redesign.
TIME and MOTION studies are
example

12. LOGOClassical Organization Theorists
• The work of Henry Fayol and Max Weber
exemplifies these theories.
• Fayol identified the major management
functions as those of
– Planning
– Organizing
– Commanding
– Coordinating and
– Controling
• Later theorist reduce these to
– Planning, Organizing, Leading and
Controlling (POLC)
Webber (1864 – 1920 )
Classified organizations by
Authority structures as
• Chrismatic
• Traditional or Rational - legal

13. LOGOTransitional Theorists
• Marry Parker Follet (1868 – 1933),
• Chester l.Barnard (1886 – 1961) and
• Lyndall F.Urwick ( 1891 – 1983)
• Represent traditional Human Relation theorists.
• Situated b/w classical management and Behavioral
approaches to the Employment relationship.
• All these writers emphasis on the
– Importance of Social Factors at work,
– Including work team,
– Leadership Style and
– Informal Systems in organizations.

14. LOGO
Behavioral School
(Industrial Psychology)
• This approach attempts to apply
psychological research to the
– Employers vs employee relationship
• Hugo Munsterberg ( 1863-1916) applied
– Personality research to employee
selection,
– Work design and
– Training program
Walter Dill Scott and James Mckeen
Cattell Developed
Personality Tests for
the recruitment of sales and
managerial Staff
Elton Mayo (1880-1949) initiated human relations (Hawthorn
Study – Hawthorn works US Electric Company)
Study of the relationship b/w satisfaction of employee needs and
productivity, Concluded that
 employees reacted positively to management concern (effective
communication and employee participation in mgt policies and
procedure)
Drive from his work ( QWL, Abraham Maslow, Fredrick Herzberg)

15. LOGO
Management Science:
(Quantitative School)
• This approach measuring the
– Outcomes of Jobs and
– Work system
• Application include
– Production Schedule
– Productivity strategies
– Consequent management
Planning
– Control Mechanisms
Integrated Theory:
(Systems Theory)
• The System approach sees organization as
• Unified system with specific inputs and
outputs.
• Important Features include
• Interaction b/w Jobs
• Technology
• Environment
• Control mechanism
• HR Aspects include communication between
the
• Various subsystem
• Coordination with Input /output
• Effective interaction b/w employee and
technological systems

16. LOGOContingency Theory
• This theory developed by the writers such as
– Tom burns
– Henry Mintzberg
– Heshey and
– Blanchard
• Contends that every organization and every
environment is different and therefore
requires a different approach
– Scientific management
– Organization theory
– Behavioral science or management science
may or may NOT Apply according to
business circumstances.
Excellence Theory
• Popular in 1980s is based upon
• Research studies of Tom Peters
and Bob Waterman.
• These researchers argue that
productivity and profitability are the
• Direct result of excellent
employment management
• Which is largely based on
Employee centered approach
• Due to decline of identified excellent
companies
• Research has been discredited

17. LOGOTotal Quality Management (TQM)
• Proposed by Dr.W.Edward Deming, Total quality
management, effectively applied in
– Japanese and US industry after the 2nd world war
• Deming advocate the following Principles of
Management
– Constancy/loyalty of Purpose toward
product/service improvement
– Maintain ongoing improvement / cost reduction
– Adopt new philosophy
– Adopt Meaningful measure of quality
– Adopt modern training method
– Setup education and training programs
– Statistically validate quality
• drive out fear
• Remove barriers
• Breakdown organizational
barriers through team work
• Eliminate arbitrary numerical
goals / visible figures
• Eliminate work standard and
numerical quotas
TQM has been applied in some organizations
to their competitive strategies.
However criticized due to procedures driven

19. LOGO
• Wayne Cascio divides the development in HRM in the
US into three Distinct Phases
– File Maintenance Phase Until 1960s
– The Govt accountability phase during 1960s to 70s
– The gaining and sustaining competitive advantage
phase 1980s to 1990
• Slightly different perspective Stella Nkomo
describes
– Defensive stage – Administrative / Anti Union
– Manpower Planning as derived demand (beginning
of labour needs forecasting, early recruitment and
training program)
– SHRM

20. LOGOIn Australia HRM Development Stages
Welfare and administrative (1900 to 1940s)
Welfare, admin, staffing and training
personnel management and Industrial
Relation (1940s to Mid 1970s)
HRM (Mid 1970s to 1990s)
HRM in the new
Millennium(2000)

21. LOGO
Stage One– Welfare , Administrative
(1900 to 1940)
• Personnel functions were performed by
– Supervisors
– Line managers
– Early specialist (e.g. Recruitment officer, trainers, welfare officers) long before the
establishment of HRM.
• The early management theories contributed ideas later incorporated into
– Personnel management theory & practice
• Scientific management helped to refine personnel management through
– Job design
– Structured reward system
– Scientific selection techniques
• Behavioral science added
– Psychological testing and motivational systems
• Management science contributed to
– Performance management program

22. LOGO
Stage Two– Welfare , Administration,
staffing and Training
(1940 to Mid1970)
• The beginning of a specialist and more professional approach to
– Personnel management in Australia
• The 2nd world war had significant impact
– Business ,Economy, Labor market
– Increase in problems & performance of existing employees
– Financial, Social and family pressure hinder the productivity and output of such
employees who replace their brothers/husbands in military
• When the war ended (Industrial welfare division)
– Returning soldiers flooded labor market with few skills
– Employers encouraged to promote the welfare functions/ services
– Offering emergency training as well as Psychological testing and leadership
• Many organizations began to employee specialist to conduct
– Recruitment
– Training and
– Welfare activities
– Taking away these functions from Line Managers

23. LOGO
Stage Two– Welfare , Administration,
staffing and Training
(1940 to Mid1970)
• This 2nd stage can be characterized by
– Expansion of necessary personal functions
• Welfare, recruitment, selection, training
• A gradual move from specialist to more general approaches
– Adoption of overseas theories
– Including scientific, behavioral and human relations
– Emergence of professional association and courses
• The resurgence / reappearance of Unionism can not be overlooked during this
decade. Unions in a buoyant /floating economy
– Focused on pay and work conditions issues
– Forcing personnel activities to include industrial relations considerations (IR)
• Earlier established Complex IR structure developed during this period
• Functions performed by personnel specialist expanded during this period
• personnel specialist were Isolated from one another
– without any consideration of their impact on overall organizational effectiveness

24. LOGO
Stage Three– HRM
(Mid1970 TO 1990s)
• Personnel Management was becoming
– HRM
– Representing a change towards the integration of personnel
function
– Strategically focused on overall organizational fucntions
• Concepts of HRM correspondence with
– US models and British Development
• Unlike previous periods, this stage represents the
– Integration of personnel management and
– Industrial relation into a coordinated and strategic approach to the
management of the organizations employee
• SHRM Can be perceived as MACRO Perspective (strategic and
policies)
• HRM represent MICRO Approach (e.g. activities, functions and
processes)
• SHRM and HRM both are intertwined

25. LOGO
Stage Four– HRM in
the new Millennium
(2000…)
• It is difficult to predict nature of HRM in future
• HRM Theory and Practice will be transformed as a consequence of
– Globalization
– New technology
– Associated Fundamental changes in the nature of work and Job
• At this stage it is suggested that earlier concepts of HRM and Role of
HR Professionals
– Will need to change significantly in order to remain relevant in the
information era.
• HR Thought leaders Such as Ulrich, Huselid etc imply that the new
HRM will either specialize in HRM
– Value management
– Strategic partnering
– And establish HR architecture for organizational Success
– Or will combine with MACRO Connections with the development
– Or outsourcing of traditional HR Functions respectively to line managers
and external HR consultants

27. LOGOHRM Concepts
• HRM differs from earlier personnel management models in relation to its focus,
its principles and its applications. Thus, the focus of HRM today is
– Effective overall management of an org workforce
– In order to contribute to the achievement of desired objectives and goals
• All HR Functions ( i.e Recruitment, HR development, performance appraisal,
remuneration ) are seen
– To be integrated component of overall HRM Strategies
• As David Guest points out
– ‘ HRM was born out of the failure of PM to manage people effectively in the
pursuit /search of the strategic (organizational ) imperative /necessary …

28. LOGOUnitarist HRM
• A Unitarist approach, often
reflected in American Models of
HRM assumes
– common interests between
employers and employees
• Attempts to encourage
commitment by both inclusive
– i.e communication
– Consultation
– Rewards system
• Exclusive
– Discouragement of union
membership
– Greenfield sites
• Pluralism, recognizes that employers
and their employees will
• Inevitably experience conflicts of
interest,
• Which HRM will need to negotiate and
resolve in order to meet
• Organizational goals

29. LOGOHard HRM
• Hard HRM has a strategic and
managerial focus,
• Emphasizing the effective
utilization of
– Human resources towards
the broad org goals and
objective.
• Soft HRM infers the involvement of
employees through such means as
• Consultation
• Empowerment
• Commitment
• communication

30. LOGO
Harvard Model of HRM Shows HRM as broad policy ‘Choices’
in response to the demand of Organizational characteristics
Within the context of external labor market and social economic
and political conditions
Choices of HRM Policies encompasses the nature of all traditional
HR functions, and hopefully lead to desirable HR Outcomes and
Long consequences for the organization.

31. LOGO
• The Harvard Model was postulated by Beer et al (1984) at Harvard University.
• The Harvard model acknowledges the existence of multiple stakeholders within the
organization.
• These multiple stakeholders include shareholders various groups of employees, government
and the community at large.
• The recognition of the legitimacy of these multiple stakeholders renders this model a neo -
pluralist model.
• This model emphasizes more on the human/soft side of HRM.
• Basically this is because this model emphasizes more on the fact that employees like any
other shareholder are equally important in influencing organizational outcomes.
• In fact the interest of the various groups must be fused and factored in the creation of HRM
strategies and ultimately the creation of business strategies.
•

32. LOGO
• A critical analysis of the model shows that it is deeply rooted in the human relations tradition.
• Employee influence is recognized through people motivation and the development of an
organization culture based on mutual trust and team work.
• The factors above must be factored into the HR strategy which is premised on employee
influences, HR flows, reward system etc.
• The outcomes from such a set up are soft in nature as they include high congruence,
commitment, competencies etc.
• The achievement of the crucial HR outcomes has got an impact on long term consequences,
increased productivity, organizational effectiveness which will in turn influence shareholder
interests and situational factors hence making it a cycle.
• It is thus important to note that the Harvard model is premised on the belief that it is the
organization’s human resources that give competitive advantage through treating them as
assets and not costs.
•

34. LOGO• The principle responsebility of HRM is to
ensure that organization have
• Right numbers
• Types
• skills mixes of employees
• At an appropriate time & cost
• To meet present / future requirements
• Practitioner need to operate at three levels
• Strategic (cooperate and HR planning)
• Operational (develop action plans to meet
present labour needs)
• Functional ( activities that ensure
employees are in the right place at right
time and for the right cost)
• The Roles, Functions and strategies
of HRM are many and varied, and ,
depend heavily on
– The nature of organization
– The vision
– Skills of practitioners
– Change in the external
environments of organization
• But such features have a significant
impact on the ways in which
practitioners carry out their roles
– Size
– History
– Ownership
– Government legislation
– Political factors

35. LOGO• As Dunphy suggest HRM is about
• Planning optimum kind of workforce
• Hiring the best people
• Skilling them appropriately
• Shifting the mix of talent w.r.t market
demand
• It is also about Building
• the satisfied
• Productive
• And flexible workforce
• Wayne cascio divide HR functions
into six principal activities:
– The attraction
– Selection
– Retention
– Development
– Assessment
– Adjustment of employees
• Robbin ,Low and Moursell suggest
roles
– Acquisition /procurement
– Development
– Motivation
– maintenance

36. LOGO• In order to carry out their role, many HR
professionals will need to acquire new
competencies
• Business capabilities ( HR Professional
need to know business of organization
thoroughly requires understanding of its
economic/financial capabilities)
• State of the art HRM Practice (HR
Professional behavioral science experts in
areas such as
staffing/development/appraisal/reward,
organizational design & communication)
• Management of change process (HR
Professional be able to manage change
processes so that HR activities are
effectively merged with the business of the
organization i.e. diagnosis, influence,
contracting, intervention, problem solving)
• HRM in near future will play a vital
role in
– Creating and sustaining competitive
advantage
• This role will requires SHRM to be
– Responsive to highly competitive
workplace & global business
structure
– Closely linked to business strategic
plan
– Focused on Quality, Customer,
productivity, employee involvement,
teamwork and work force flexibility

37. LOGO• The devolution/ transfer of HR Functions or
services such as
• Recruitment,
• Selection and
• Performance review to line managers
• Combine with the more recent outsourcing of
such activities as
• Employee information system
• Training and
• Occupational health and safety
services
• May enable HR Specialists to focus more on
strategy formulation and policy development.
• The separation of strategy and planning allows
HR Specialists to develop
• High level business planning competencies
• Encourage line mangers to refine their PM
Skills
• Assist the effectiveness through specialist
• HR Call centers
• HR Shared service centers
• HR response centers using web tech
• Variety of roles and competencies
depending on the nature of
– Industries and organizations.
• Ulrich and Saul Suggest
combination of roles
– Strategic partner
– Employee champion
– Administrative expert and
– Agent of transformation
• Lepak and Snell point out that
– Strategy formulation
– Policy development
– Cost containment and
– HR Service roles are some time
contradictory and required quite
different competencies.

38. LOGO• The functional Areas that constitute an HR
Program
– HR Policy
– HR Planning
– HR information system
– Work and job analysis, design and evaluation
– Recruitment and selection
– Diversity management
– Carrier management
– Training & development for employees and
management
– Counseling, discipline and separation
– Performance and Quality mgt
– Remuneration (pay) and benefits
– IR management
– Financial Management of employee schemes
– Overall accountability and evaluation
– Occupational Health and Safety
• Pro-active HR practitioner sees the
functions
• As pert of a whole
• Or strategic approach to their
role
• Each function should be clearly
linked with
• All other functions in cost
effective ways
• Reflect organizational goal
• Functional activities will differ
• From org to org
• From industry to industry
• According to pressures
• HR Manager needs to be
generalists with
• Clear business skills
• Concerned with corporate
strategy, structure, org
culture
• Direct links to org power
bases

40. LOGO• The HRM managers of the 21st
Century need to go
– Beyond the traditional functional &
task roles
– To become involved in more
strategic responsibilities
• The idea of HRM as the link in the
– Future integration of Internal and
External societal values
– Therefore consistent with
development of many societies and
economies
• The HRM Role needs to monitor and
maintain
– Behavioral norms within an org
• The Role of HR in the negotiation of
Values and Behavior is of
– Paramount Importance
• The Behavioral lapses of employee and
managers create immense hidden cost to
enterprise through such issues
• Delayering
• Mergers
• Sexual Harassment
• Inadequate diversity management
• Unfair dismissals
• Poor recruitment
• Loss of productivity
• Good behavioral Norms for individuals and
groups arise from
• Clear value system,
• Guiding policies and practices
understood by all
• Value driven organizations generate
• Sound and ethical HRM
• The ethics of an enterprise can be best
communicated through
• Value held and
• Behavior exhibited by the employees of
an org

41. LOGO• The Ethics of an Org revealed
through the
– Behavioral of its people
• An effective HR manager aims to
deal with employees
– Openly and
– Transparent std of behavior
• Ethics in HRM can be define as
– The contribution to the design
of right values and behavior
– And maintenance of such
values in the social and
operational context
ETHICAL STANDARD FOR HRM PROFESSIONAL
• In a study of HR professionals by Wiley
(2000), the ethical code of five US HR related
organizations were
• Examined against six key stakeholder
obligation/duty/responsibilities
1. Employers
2. Clients
3. Colleagues
4. Society
5. The profession
6. Professional societies
• Five Organizations were
1. American compensation association (ACA)
2. American Society of Training & development
(ASTD)
3. International Association of Human Resource
Information Management (IAHRIM)
4. International Personnel Management
Association (IPMA)
5. Society for Human Resource Management
(SHRM)

42. LOGO• Ulrich (1997) suggested that future
HR professionals need to go
– Beyond the roles of Policy
– Or acting as regulatory
watchdogs
– To become Partners, players
and pioneers in delivering
value
• In order for such transformation of
HRM into Strategic “Soul” of
organization to occur
– Incorporation of ETHICS as a
core anchor to its practice is
urgent necessity.
• HRM Practices also link the
individual , group and the
enterprise to contribution and
responsibilities
– To maintain a civil society
THE SUBSTANTIAL Challenges facing HR
Professionals
 Favoritism in employment
 Divergence in Promotion and opportunities
 Global consistency in occupational / work
related health and safety
 Gender and Race Issues
 HR manager face the problem of dual
loyalty
 The role of HRM in workplace ethics needs to
go
 Beyond the monitoring of legal compliance
towards establishing the “ARCHITECUTE”
of ethical culture
 A HR approach to business partnership based
on integrity combine concerns for competitive
use of Human capital with managerial
responsibility
 For the ethical dimensions of an enterprise
strategic operations.
 Without integrity oriented approach to business
partnership, HR Professional may continue
 In the administrative – service role under
the guise of being a strategic player.

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