Evolution Of Hrm, Difference b/w PM & HRM, Functions, Wheels Of HRM, Harvard framework of HRM, Challenges faced by HRM, 5- P Models of strategic HRM-- By Akio Morita, Founder, Sony Corporation.

1. EVOLUTION OF HRM
“There is no „magic‟ in the success of companies.
The secret of their success is simply the way that treat their employees”
Akio Morita
Founder, Sony Corporation

2. HR HISTORY
OF HRM
• Hiring & Firing
• Unions emerged: Labour relations specialists
EVOLUTION
• Welfare
• Subspecialties as :
Staffing /Training/Compensation/Appraisal System
• Late 70’s HR professionals mastered the activities of
Staffing, Development, Appraisals & Rewards.
• By 1980’s organizational design and communication, got added

3. HOW IS PM DIFFERENT FROM HRM
OF HRM
Personnel Management and HRM differ in scope
PM is viewed as a tool. The behavior of which could be manipulated for the
EVOLUTION
benefit of the organization and replaced when it is worn out. It was a routine
activity meant to hire new employees and to maintain personal records. It
was never considered as a strategic management of business.
HRM would view people as an important source or asset to be used for the
benefit of the organization , employees and society.

4. OF HRM
HOW IS PM DIFFERENT FROM HRM
PERSONNEL FUNCTION POINTS OF DISCUSSION HRM
EVOLUTION
Maintenance oriented Development oriented
Orientation
An independent function with independent sub- Consists of inter-dependant parts
functions Structure
Proactive, trying to anticipate & get ready with
Reactive, responding to events when they occur
appropriate responses
Philosophy
Exclusive responsibility of personnel Responsibility of all managers in the organisaiton
Responsibility
department
Emphasis on higher order needs eg. Empowering
Emphasis on monetary rewards
people
Motivators
Improved performance is a result of improved Better use of human resources leads to improved
satisfaction & morale satisfaction & morale
Outcomes
Tries to improve the efficiency of people & Tries to develop the organisation as a whole & its
administration culture
Aims

5. ESSENTIALS IN THE DEFINITION OF HRM
OF HRM
It is people who staff the organization and manage organizations
HRM involves application of management functions and principals.
EVOLUTION
Functions and principals are applied to acquisitioning, developing
, maintaining and remunerating employees
Decisions on different aspects of employees must be consistent with
other decisions on HR
Decisions made must influence the effectiveness of the
organization, i.e. it should result in betterment of services to
customers or productivity

6. DEFINITIONS OF HRM
OF HRM
HRM is a series of integrated decisions that form the employment
relationship; their quality contributes to the ability of the organization and
EVOLUTION
the employees to achieve their objective.
HRM is concerned with the people dimension in management. Since every
organization is made up of people , acquiring their services, developing
their skills , motivating them to higher levels of performance and ensuring
that they continue to maintain their commitments to the organization are
essential to achieving organizational objectives.

7. DEFINITIONS OF HRM
OF HRM
EVOLUTION
HRM is management in planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and
social responsibilities are accomplished.

8. MANAGERIAL FUNCTIONS OF HRM
OF HRM
Planning: Determination in advance of a personal program that will
contribute to goals established for the enterprise
EVOLUTION
Organising : This is required to carry out the plans. Designing the structure of
relationships among jobs , personnel and physical factors.
Directing : Before the action is started “direction “ is necessary; this may be
in the form of “motivation “ “ actuation “ or “ command “.This is to get
people to work willingly and effectively
Controlling: Observation of action and its comparison with plans and
correction of any deviation that may occur at any time.

9. OPERATIVE FUNCTIONS OF HRM
OF HRM
Procurement: Obtaining proper kind and number of personnel necessary to
accomplish organizational goals
Development: Increasing the skill through training that is necessary for proper
EVOLUTION
job performance
Compensation: Adequate and equitable remuneration of personnel for their
contribution to organization objectives.
Integration : It is concerned with a reasonable reconciliation of individual
, societal and organizational interests .
Maintenance: Maintenance is concerned with the continuation of this state , this
is heavily effected by communication with employees.
Separation : Separations and return of that person to society. Could be
retirement , lay off , out-placements and discharge

10. THE HUMAN RESOURCE CYCLE
OF HRM
HRM Concept – Michigan School
EVOLUTION
Rewards
Performance
Selection Performance
Management
Development
1. Selection: Matching available human resources to jobs
2. Appraisal: Performance management
3. Rewards: It must reward short as well as long-term achievements
4. Development: Developing high quality employees

11. THE HARVARD FRAMEWORK FOR HRM
OF HRM
Stakeholder Interests
EVOLUTION
• Shareholders
• Management
HRM policies HRM outcomes Long-term
• Employee groups
• Employee • Commitment consequences
• Government
• Competence • Individual well-
influence
• Community
• Human • Congruence being
• Cost - • Organizational
resource flow
• Reward effectiveness effectiveness
• Societal well-
systems
• Work systems being
Situational factors
• Workforce
characteristics
• Business strategy
and conditions
• Management
philosophy
• Labour market
• Unions
• Tasks technology
• Law & societal
values

12. THE 5-P MODEL OF STRETEGIC HRM
OF HRM
Organization Strategy
EVOLUTION
External Characteristics
Internal Characteristics
Strategic business needs
Strategic Human Resources Management Activities
Human Resources Philosophy - Expresses how to treat and
value people
Human Resources Policies - Guidelines for action on
people related business and HR programs
Human Resources Programs - Help to address and change major people
related business issues
Human Resources Practices - Motivates needed role behavior
Human Resources Processes - Defines how these activities are carried out

13. HUMAN RESOURCE WHEELS
OF HRM
The American Society for Training & Development (ASTD) has developed a Human
Resource Wheel in 1983 highlighting different functions of HRM leading to quality of
work life, productivity and readiness for change.
EVOLUTION
Union/ Labor
relations
Employee
T& D
assistance
HR areas output:
Compensation/ Organization/
Quality of work life
Benefits Job design
Productivity readiness
for change
Personnel
research and
HRP
information
Selection
systems
and staffing

14. HUMAN RESOURCE WHEELS
OF HRM
T & D focus
Identifying, assessing and through planned learning---helping develop the key
competencies which enable individuals to perform current or future jobs.
EVOLUTION
OD focus
Assuring healthy inter- and inter-personal relationships and helping groups initiate
and manage change.
Organization/Job design focus
Defining how tasks, authority and systems will be organized and integrated across
organization units and in individual jobs.
HRP focus
Determining the organization‟s major HR needs strategies and philosophies.

15. HUMAN RESOURCE WHEELS
OF HRM
Selection and staffing
Matching people and their career needs and capabilities with jobs and career paths.
EVOLUTION
Personnel research and information systems
Assuring a personal information base.
Compensation/Benefits focus
Assuring compensation and benefits fairness and consistency.
Employee assistance focus
Providing counseling to individual employees, for personal problem-solving.
Union/Labour relations focus
Assuring healthy union/organization relationships.

16. Nature of HRM
Human Resource Planning
THE
Job analysis
HRM Recruitment
MODEL Selection
Placement
Training &development
Remuneration
Environment
Motivation Competent &
Participative Management Willing work
force
Communication
Safety, health & Welfare
Promotions etc. Organisational
Goals
Industrial relations
Trade Unionism
Disputes & their settlement
International HRM
Ethical issues in HRM

17. HUMAN RESOURCE FUNCTIONS
OF HRM
Forecasting the human resource requirements necessary for the organization to
achieve its objective – both in terms of number of employees and skills.
Developing and implementing a plan to meet the manpower requirements.
EVOLUTION
Carrying out job analysis to establish the specific requirements for individual jobs
within an organization.
Recruiting and selecting personnel to fill specific jobs within an organization.
Designing systems for appraising the performance of individuals.
Orienting and training employees.
Designing and implementing management and organizational development
programmes.

18. HUMAN RESOURCE FUNCTIONS
OF HRM
Designing and implementing compensation system for all employee and have
systems for promotions and transfer
EVOLUTION
Assisting employees in developing career plans.
Employee communication , personal counseling, personal research etc
Departmental administration programs – Planning, record keeping, reporting ,policy
formulation , and general administration.
Implement activities to ensure proper health and sanitation and safe work place
Adherence to Government norms and regulations

19. CHALLENGES FACED BY HRM
OF HRM
Globalization
EVOLUTION
Build value chain for business competitiveness
Profitable through cost and growth
Capability Focus
Change
Technology
Attracting and retaining intellectual capital

20. CONCLUSION
OF HRM
Organizations are now defined as :
• The core competencies within the organization
EVOLUTION
• The people within the organization
• The organizational culture or shared values and knowledge or learning.
The HR systems needs to be retained and constantly upgraded and changed:
People will always need to be hired and trained
Process will always need to be created and upgraded
Cultures will always need to be established and transformed.
HR practices must
Be aligned to business realities, meeting deadlines , making profits, leveraging
technology, satisfying investors and to serving customers ,.
HRM is to create organizational capabilities that will lead to competitiveness