MB0043-Human Resource Management Unit-2 HRM Evolution

Program Semester Subject Code Subject Name Unit number Unit Title Lecture Title

: MBA :I : MB0043 : HRM :2 : HRM in India : HRM evolution

Lecture Number : 2

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MB0043-Human Resource Management Unit-2 HRM Evolution

Objective
Objective :
To recall the history of Indian concepts in human resources management

To evaluate the impact of the countrys culture on the organisation culture

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MB0043-Human Resource Management Unit-2 HRM Evolution

Lecture Outline
Introduction HRM History Ancient Employment Laws Definition of Cultural Dimension Summary Check Your Learning

Activity

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MB0043-Human Resource Management Unit-2 HRM Evolution

Are you thinking how has HRM evolved?

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MB0043-Human Resource Management Unit-2 HRM Evolution

Introduction

In the previous unit you are introduced to human resource management. In this unit you will study the history and evolution of HRM in the Indian context.

Managing human resource is a complex process, to understand the philosophy of human resource management demands a thorough understanding about the evolution of the concept from the ancestral to Human resource Management concept.

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HRM History

Ancient
Artha Shastra

Medieval
Oppression and poor working conditions in all industries

Post Independence
Formation of personnel department in different public and private sector

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Ancient

Artha -Shastra

Artha Shastra was written by Kautilya in 4th century . Artha Shastra gave early traces of HRM. In Artha Shastra the principle of organizing labor was termed as Shreni. The incentives methods prescribed in Artha shastra were (Sarasasaama- daana- bheda- danda- catura, the Carrot and Stick approach

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Ancient

In ancient period, how was the society divided or on what basis it was divided?

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MB0043-Human Resource Management Unit-2 HRM Evolution

Employment Laws
HR began to play a significant role with the early enactment of these employment-related laws: The Workers Compensation Act of 1923 ensured that employers compensate employees for work-related injuries. The Trade Union Act of 1926 gave formal recognition to trade unions. The Industrial Disputes Act of 1947 led to the increased role of industrial relations (employees were distinguished by the work they did such as permanent, temporary, trainee etc.). The Factories Act of 1948 regulated the work environment in factories to ensure the safety of employees. The Employees Provident Funds and Miscellaneous Provisions Act of1952 required employers to provide contributions for retirement.

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Employment Laws

Liberalization played an important role, as human resource started floating from one country to another, leading to diversification of workforce and cross culture environment. Employees migrate from one to another nation and bring their culture with them leading to mixed organization culture. And this increased the role of HR professionals as they have to play major role in coordinating the workforce of different culture in an organization.

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Employment Laws

The Minimum Wage Act of 1948 established minimum wages that vary from state to state.

The Payment of Bonus Act 1965 provides for a minimum bonus of 8.33 percent of salary, even if the organization is not making any profit.

The Persons with Disabilities Act (PWD) of 1995 was landmark legislation for disabled people in India.

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Employment Laws

Find out what are the values, norms and beliefs of high power distance countries?

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Definition of Cultural Dimensions (GLOBE Study)

Masculinity :Masculinity refers to a situation in which the dominant values in a society are success, money and other material things

Power distance: The degree to which organizations and societies accept power.

Individualism:Individualism is the tendency of people to look after themselves and their family only.

Uncertainty avoidance: The degree to which organizations and societies avoid uncertainty by relying on practices and procedures.

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MB0043-Human Resource Management Unit-2 HRM Evolution

Definition of Cultural Dimensions (GLOBE Study)

Assertiveness: The degree to which individuals in organizations or societies are assertive in social relationships.

Future orientation: The degree to which individuals in organizations or societies plan for the future.

Gender egalitarianism: The degree to which organizations or society promote gender equality.

Humane orientation: The degree to which individuals in organizations or societies reward individuals for positive behavior.

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MB0043-Human Resource Management Unit-2 HRM Evolution

Summary
HRM in India has been impacted both by its own history as well as multinational companies that came and established their operations in the country

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Check Your Learning

1.Which Act brought the first set of formal guidelines and rules that the industries had to comply with? Ans. Factory Act of 1881 2. Which is the first Labor organization and when it was established? Ans. Bombay Mill Hands Association and it was established in 1905.

3.In which year formal implementation of the Indian Trade Unions Act
took place Ans. It took place in 1926

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Activity
List out the salient features of Factory Act,1948. Read Article Introduction to HRM Read Blog Managing workforce http://resources.smude.edu.in/blogs/muzna/

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