DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 2 Development of Human Resource Management

DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 2 Development of Human Resource Management

Question 1.
Discuss the evolution of personnel management skill the industrial revolution in England ?
What are those various stages through vehicle modern personnel management was evolved ?
Evolution Of Personnel Management:
Modem personnel management has emerged through many stages which may be summarized as follows—

1. Industrial Revolution. Industrial revolution during later part of 18th century and earlier part of 19th century had a vital influence on the development of industry and commerce. Industrial revolution brought in revolutionary changes in methods and techniques of industrial production which re-moved the hindrances in production faced by the producers and manufacturers of that time, inventions of Spinning genny in 1764 by James Hargreaves, Water frame in 1779 by Richard Awkright and many other inventions in quick succession such as ‘mule spinner’ by Crompton and Power loom by Cartwrighs. Again the invention of Steam engine enabled to drive the machine by power. Thus, development in machines and methods was linked with power.

The following changes necessitated the emergence of personnel man-agement principles and practices—

  1. The industrial revolution gave rise to factory system and mass production.
  2. Large number of workers were employed to man the machines.
  3. Division of labour and increased specialisation were practised.
  4. New class of technical and professional employees was emerged.
  5. The work place shifted from residence to factory. The employer lost the personnel touch with the employee.
  6. ncreased mechanisation and specialisation made work routine and monotonous.
  7. Due to increase in demand for labour, labour was migrated from rural areas to urban areas.
  8. Materialism increased.
  9. Large number of workers and their adjustment in hew work environment gave rise to many labour problems and therefore, rise to many labour problems & therefore, it became necessary to appoint a specialist to handle new and new labour problems at the work place,
  10. Labour was looked upon as commodity that could be purchased and sold freely.
  11. The role of the Government was not to interfere in the production system.

2. Trade Unionism. With the rise of factory system, the workers face several problems which were ignored by the employers as there were regarded as commodity at that time. They got lower wages with poor working conditions. The labour started united into trade unions to improve their lot. The basic philosophy was that by collective support they could force the management to redress their grievances.

The weapons used were strikes, slowdowns, walkouts, picketing boycotts and sabotage. The trade union movement influenced the practices of personnel management. Employers adopted grievance handling system, recognition to their collective strength (through collective bargaining), the acceptance of arbitration as a means of resolving conflicts, disciplinary practices, expansion of employees benefit programme and introduction of many other personnel policies giving relief to workers and improving their working conditions.

Because of influence of trade unions, several employers in the USA improved their personnel policies and launched schemes for workers’ participation in management and invested a large sums on welfare activities. Several companies set up personnel departments to look after labour interests.

3. Scientific Management. Introduction of scientific management by F.W. Taylor (Frederick Winslow Taylor) in personnel management brought about many far-reaching changes.

Taylor’s contribution has two dimensions — (a) mechanical and (b) philosophical. On mechanical side, Taylor introduced time and motion studies, standardisation of tools, methods and working conditions, differential piece-rate wage system etc. the philosophical side. We tried to develop the science of management based on scientific investigation and experiment.

To understand the Taylor’s philosophy, the following principles laid down by Taylor should be given due consideration—

  1. Replacement of Role of Thumb by developing a true science for each element of man’s work based on scientific investigation.
  2. Scientific selection and training of workers through a scientific selection system and training method so as to avoid use of wrong methods of work.
  3. Heartly cooperation between labour and management with a view to
    change mental attitudes of the workers and management towards each other. Taylor called it Mental Revolution. This is necessary to achieve maximum output. ,,
  4. Equal Division of work and Responsibility between workers and management.. The management is responsible for planning and organising tne work whereas, workers are responsible for the execution of work.

Techniques of Scientific Management. Taylor and his associates suggested the following techniques to put his philosophy into action—

  1. Scientific task setting or standardising the tasks.
  2. Work study includes the following studies-
    (a) motion study (b) method study, (c) Time study, and (d) Fatigue study
  3. Planning the task. Taylor advocated that planning work should be separated from execution work. The management or the planning department should plan what type, quality and quantity a worker should produce.
  4. Standardisation of tools, equipments, costing system and other items should there. Everything should be made standarise.
  5. Scientific selection and trading programmes and procedures should be developed to have deservingremployees/workers.
  6. Differential Piece wage Plan. Taylor suggested two piece rates for work. One lower rate and the other higher rates. Workers who can work at with standard efficiency, they would get higher rate and who fail to meet the standard would be given lower ate. The standard of efficiency is fixed by time and motion study.
  7. Specialisation. Taylor advocated a team of eight foreman to control the various aspect of production.

4. Industrials Psychology. Industrial psychology stressed matching of employees skills with the jobs. Hugo Munsterbergs contributed significantly to analysis of jobs in terms of workers mental and emotional requirements and development of testing devices. The psychological study of workers influence the selections placement, testing and training etc.

5. Human Relations Movement. Elton Mayo (a psychologist) and Pritz J. Roethlisberger (a sociologist) of Harvard Graduate school of Business Ad-ministration and William J. Dickson of Western Electric company conducted some experiment (known as Hawthrone experiments) in the field of industrial psychology between 1927 and 1932. Hawthrone Experiments and subsequent research focussed attention on attitudes and feelings of workers and their influence on productions.

These factors are important in improving industrial relations. The role of informal groups and informal leaders was highlighted as they took an important part in setting and enforcing group norms. Workers do not act or react individually but as members of group. The study showed that non-economic rewards and sanctions play a significant role in influencing the behaviours of workers. It was suggested that inter-personal relations should be improved to realise fuller potential of individual and groups.

6. Behavioural Sciences. Research in behavioural sciences like anthro-pology, sociology, psychology has also enriched the field of personnel management/Human resource management. The research in behavioural science stressed how a man behaves in different circumstances/environment as an individual or in groups. Behavioural science era led to the development of new techniques of motivation and leadership e.g. job enrichment, employee participation, two way communication or management by objectives etc. A H. Maslow, Douglas Me Gregore and Fredrick Herzberg, Resis Likart and many other contributed significantly towards behavioural sciences approach.

7. Welfare Aspect. Scope of Personnel management has increase con-siderably with the dawn of welfare era. It is not only concerned with the recruitment, selection and training of personnel in industries, but also manages to develop employee benefits programme and industrial relations systems in industry.

Question 2.
Write an essay on the contribution of industrial psychology to personnel management / Human Resource Management.
Contribution Of Industrial Psychology To Hrm :
Industrial psychology suggests the matching of employee skills with his jobs in the industry. How a person behaves in a particular situation to the subject matter of psychology. Hugo Munsterberg, known as the father of industrial psychology has contributed significantly to analysis of jobs in terms of their mental and emotional requirements and development of testing devices. Advances were made in selection placement, testing, training and research practices. Industrial psychology introduced matching of employees to jobs. Different jobs, therefore, require different skills, and abilities. It emphasised the use of psychology in the field of personnel testing, interviewing, attitude measurement, learning theory, training, monotory study, safety, job analysis, and human engineering.

A number of psychologists such as Poffenberger, Burtt, Hepner and Munsterberg made significant contribution to the field of industrial psychology. He applied psychology to solve the industrial problems in many ways He introduced job analysis in terms of mental and emotional requirements of the job. Motivational and leadership problems really belong to industrial psychology. In USA a number of companies added personnel departments during 1920’s for the first time. Personnel consulting firm began to appear, many colleges, universities and institutes began to offer new courses in industrial psychology and its application to men in jobs. The major areas of specialisation of the personnel managers during 1920’s were selection, placement, training, methods improvements and employer welfare.

Question 3.
Describe the changing concepts of human resource management.
Changing Of Concepts Of Human Resource Management :
The concept of human resource management has developed through various stages as follows—

1. The commodity concept. Before the industrial revolution, the guild system was the beginning of the personnel management. Thus concept emphasised that a worker was nothing more than a commodity which could be purchased and sold easily in the market as and when the management liked.

In this era management adopted hire and fringe policy of labour recruitment. According to the theory, the labour can be procured as cheaply as possible and utilised to the fullest. So, at this stage labour was exploited to the fullest.

2. Machine or Factor of Production Concept. Under this concept, the personnel were considered to be a factor of production just like capital, land ” and machine. It is assumed that if machinery can be made more productive by extremes specialisation, so can the man. Taylor’s scientific management stressed upon proper selection and training of employees so as to maximise, production. The employees were considered as an appendage in the process
of production. This concept was an improvement over commodity concept in so far as the workers gained through better working condition and higher earnings.

3. Paternalistic Concept-  Growth of trade unions and increasing faith in democracy made some employers to assume the role of paternalistic employers. They started assuming fatherly and protective attitude towards workers and started a number of new schemes favouring workers. Such schemes included housing facilities, medical facilities, pension facilities, education and recreational facilities etc. The main purpose of introducing such schemes was to gain employees gratitude and loyalty. In several factories, welfare officer were appointed to provide welfare services to workers.

4. The Humanistic/ Social System Approach. The paternalistic approach died during the great depression of 1930s as the management did not have resources to invest in welfare activities. In 1920s and 1930s industrial psychologists and human relation activities advocated the adoption of social system or humanistic approach in industry. This approach was based on work of psychologists like Mayo and his associates, Argyris Me Gregor and sociologists and gained popularity.

The organisations were considered as social system composed of numerous’ interacting parts. The social approach recognised the employer as human being and so humanly treatment was rec-ommended to them. It emphasised that investment in labour was as beneficial as investment in machinery. If employees is treated properly, their many psychological and social problems would be solved automatically or amicably. The approach recognised that labour cooperation should be sought in the solution of common problems of organisation. It was propounded by the followers of this approach that workers psychological and social needs should be recognised by the employers and therefore, non-economic incentive could also be sued to motivate the employees along with the economic incentive. Human relations were considered as the key to higher productivity, higher morale and satisfaction of workers.

5. Human Resources/Behavioural Science Approach. During 1950s, several studies were conducted analysing the behaviour of human beings at the workplace. This gave birth to the human resource concept which considered workers as human resources who are living entities with distinct needs, aspirations and personality. Because of the efforts of behavioural scientists, motivation leadership, group dynamism organisational climate, organisational conflicts etc. become popular concepts. Efforts were made to integrate the organisational goals with workers aspirations so that the two may be achieved simultaneously. Focus was also shifted towards management practices like two way communication management by objectives, employees centered leadership, quality circles etc. ,

7. The Partnership Concept. The modern view is to view employees as partners in industry workers, participations in management is broadly followed in modern organisation. Several companies have launched stock option plans to retain employees and achieved their commitment to the organization. The employee are treated as a valuable resource and human resource development has became a catchword in the industry circles. Workers representations are being appointed on the Board of directors of many organisations. The emerging trend is aimed at creating a feeling among workers that the organisation belongs to them and they should be loyal to the organisation.

Thus, personnel management began as a record keeping function, later on administration of labour agreements became its main task. Later, the focus was shifted to ccientific aspect. Now, the labour is considered as a resource, an asset and an opportunity.

Question 4.
State the reasons for the growth of personnel management.
Reasons For The Growth Of Personnel Management:
Robert Owen can be regarded as the founder of personnel management. He wrote a book “A New View of Society” where he has emphasised that there is a need for better labour relations and improvement in service conditions during 19th century. There was no radical development due to lack of industrial development during first quarter of 20th century. The emphasis was laid on personnel management because of the various problems arising due to the formation and development of labour unions. During this period thoughts of F.W. Taylor were greatly appreciated. During the second quarter of 20th century Elton Mayo and his’associates initiated human relations in industry through various studies.

After 1950 development of personnel management acquired a new face of professional management. Personnel management is now considered as Science of Human Relations, Human Engineering, Organisation System and Design. Personnel management has now become an intra-disciplinary knowledge where industrial psychology, behavioural science, labour laws etc. have been introduced. This has acquired more dimensions, scope and significance in the personnel management. The rapid growth of Personnel Management is because of following factors.

1. Industrial Revolution. Industrial revolution played a very significant role in the development of industries. Industrial revolution brought in revolutionary changes in the methods and techniques of industrial production.-Workshops manned by individuals turned into mills and factories employing more workers. Steam and power were substituted for the efforts and energy of people. Production processes were simplified by the use of new and new machineries and techniques. With the introduction of developed machineries and techniques, various complex problems emerged. To meet this situation personnel management was emphasised.

2. Experiments in Social Sciences. New experiments and research in social sciences also contributed to the growth of personnel management. Hawthron experiment in the field of psychology influenced the attitudes of the employers to a great extent. Researches in behavioural sciences also con-tributed to the development of personnel management. These experiments developed new techniques of selection and training.

3. Fast changes in technology. With the development of science and technology,’new methods of production were developed. New techniques and processes were developed in the fields of marketing and communication which affected the personnel relations and industrial development. To cope with the problems of industrial development new management principles were developed.

4. Awakening in labour. After World War I, workers began to become united and trade unions emerged. Trade unions expressed the concern of workers about working conditions — levels of wages, stability of employment and status in the society. Political movements, Russian Revolution in 1917, emergence of International Labour Organisation in 1919 also subscribed to the concept of industrial democracy.

5. Attitude of the government. The attitude of the Government towards labour management and business have changed considerably. Government’s participation in the economic areas has increased tremendously. Government comes to the rescue of the workers against the exploitation by employers. The idea of workers’ participation in management has been accepted by all the governments of the world. Governments have enacted various labour laws for the welfare of workers.-The government attitude was one of the factors in development of personnel management.

6. Culture and social changes. Education, population problem and changes in social value of the labour also contributed to the’development of personnel management. Education brought the change in the attitude of labour towards their work. They realised that work is worship and they would have been more benefited, if they had worked hard. They now differentiate between right and wrong. Population problem resulted in the problems of unemployment, wage fixation, migratory character of the labour and labour turnover. These problems resulted in the development of personnel management. Due to expansion of education, large scale production and advanced means of communication increased the social value of labour.

7. Change in the size of Business. With the increased use of machinery and capital large scale production become possible. Division of labour and specilisation functions were developed requiring a large number of workers. In order to get the work done by these people efficiently, the need of personnel management was felt.

8. Change in the attitude of management. Development of scientific management, industrial revolution, awakening of workers, favourable atti-tude of Government towards labour and change in the social value of workers compelled the management to make a change in its attitude towards labour. The workers which were regarded as commodity, or as slave in earlier years, are now regarded as partners in management.

9. Problem of Coordination and Control. Large scale production created the problem of control over the thousands of workers in art enterprise. The need of coordination between personnel objectives, developed methods and techniques and overall objectives of the organisation was realised. The problem of control and coordination gave birth to the personnel management.

10. Changes in the form of business organisation. Iii earlier years, business was carried on under sole proprietorship. With the advent of joint stock companies the size of the business has increased. So new management techniques were developed to cope with personnel.

Question 5.
Trace the evolution and growth of personnel management in India.
Attempt a brief note on the development of personnel management in India.
Development Of Personnel Management In India
The development of personnel management in India ns quite different from the development of personnel management in western countries. In U.K. and U.S.A. personnel management was developed by the efforts of the employers who provided the better labour welfare facilities voluntarily. But in India labour management relations were developed mainly due to the unsatisfactory recruitment systems, labour agitations and statutory provision of the various Acts to improve the working conditions of labour imindustries. The growth of personnel management can be divided into two periods—before independence and after independence.

1. Before Independence. Before independence, nothing commendable was done either on the part of employers or on the part of government for the development of industrial relations. In 1920 few enterprises mainly in cotton textile mills of Ahmedabad an Bombay appointed labour welfare officers to look after the interest of the working people. In 1920 labour unrest was witnessed.

Some employers and the Government took various steps to develop better industrial relations including the recognition of trade unions. But, there was no satisfactory resolution of problems, In 1931, the Royal Commission on Labour recommended the abolition of Jobber system and the appointment of labour officers so that the labour recruitment problems might be reconciled amicably. In 1934, the Bombay Government also made the appointment of labour welfare officers compulsory in every industrial unit having 500 or more workers. On the recommendation of Royal Commission on labour and the provisions of the Bombay Government many mill owners appointed the labour officers to look after recruitment of employee, handle of grievances and administer welfare measures.

2. After Independence. The Government of India did commendable work in this direction in post-independence period. Several labour legislations were enacted such as Industrial Disputes Act 1947, Factories Act 1948, rules laying down the appointment, duties and qualifications of the welfare officer. Now the urgency of appointing welfare officer or personnel officer is being felt even in such industries where there is no legal compulsion to appoint welfare officer. It is so because there is a need of such agency to guide the management in tackling labour problems. But the services of labour welfare officers are not appreciable even now because of their taking a biased view in favour of management.

The Government has also arranged for the training of workers and management personnel in India and started several training centres and institutes for imparting training in industrial relations.

During 1960s the personnel function widened beyond the welfare aspect. Three major areas of practice viz. labour welfare aspect labour aspect, and industrial aspect were emerged as the complimentary parts of the personnel management.

Rapid industrialisations and the opening of public sector during five year plan accelerated the growth of personnel management.

In 1975 the Government took several administrative steps to eradicate the system of bonded labour, to give momentum to the scheme of workers’ participation in management and to extend the scheme of apprenticeship. After that several other measures have been taken by the government for the welfare of the labour. Presently the need of personnel management has been so widely recognised as a specialised function of the management that nearly all the organisations prefer to establish a personnel department to deal with the working force in the enterprise.

During 1990s, the overwhelming role of human factor was realised. Growing awareness about the significance of human side has led to the development of human resource management as distinct discipline.

In spite of all these developments, personnel functions in India has not developed in true sense. Personnel function is still playing an inactive role being surrounded by a web of role ambiguities and paying inadequate attention to self-audit and research. Factors which have impeded the growth and progress of personnel function in India can be summerised as following :

  1. Line manager are hostile to labour welfare officers appointed under Factories Act.
  2. Due to a large number of industrial relations laws and their legalistic approach, personnel executives have become preoccupied in litigation and they have very little time to attend to several other duties.
  3. The job of a personnel officer is still considered by a large number of employers as a fire-fighting function only to head off union troubles.
  4. The human relations approach to personnel management has not yet taken a firm foothold in our country due to following socio-cultural conditions.

(i) Highly authoritarian culture which militates against participation and free communication.
(ii) Abundance of cheap labour.
(iii) Weak and unenlightened labour movement. .
(iv) Technological backwardness
(v) Traditional management –
(vi) Illiteracy of workers ’
(vii) Poverty

The Personnel management in India can be successful of following conditions are fulfilled-
(i) The functions and duties of personnel officer should be well defined in every organisation. He should not merely be considered as an agent of the to carry out the dictates of the employers. He should work as a link between employers and employees.

(ii) The personnel officer should be given complete freedom to act in the interest of employers and employees. He should handle the grievances and demand of the workers and employers. They should explain the personnel policies to the workers in the right perspective so that proper understanding may result in good industrial relations.

(iii) The personnel manager should be regarded as having rode in ironing out the differences between the employers and employees in day to day working.

(iv) Workers participations in management is being widely emphasised both in public and private sectors. Now a days in all public and private sectors, personnel departments have been setup to attract, maintain and motivate the working force.

DU SOL B.Com 3rd Year Human Resource Management Notes

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