HUMAN RESOURCE MANAGEMENT1

DIAGRAMMATIC VIEW
HRM MODEL
Framework
& Challenges

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Historical
Societal
Organizational
Professional
International
Equal Employment

Employee
Relation
&
Assessment

Preparation
&
Selection
OBJECTIVES
Societal
Organizational
Functional
Personal

Compensation
&
Protection

Development
&
Evaluation

SOCIETAL

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CHAPTER - 2

ENVIRONMENTAL
CHALLENGES

HISTORICAL FOUNDATION

RELEVANT PERSPECTIVES
EARLY CAUSES & ORIGIN
SCIENTIFIC MANAGEMENT & HUMAN NEEDS
MODEM INFLUENCES

HISTORICAL FOUNDATION
EARLY CAUSES & ORIGIN
Blurred Traces No precise origins of HR managements (mangt) are
known, however, the early HR managers or pioneers led HRM to todays
most substantive & sophisticated framework
Small Groups Except the religious orders (e.g Rome Catholic Church) &
Govt ( e.g military) most of the work was done/performed in small
groups ( small shops , in houses ) with no formal HR mangt
Surfacing of Industrial Revolution Nature of work changed, when the
industrial (e.g big coal mines, mills/factories , expansive machines /
engines) revolution emerged & led for HR mangt dept, because of the
massive human resource involvement
Creation of Welfare / Social Secretary (secty) Post

HR problems started arising in 1800 as some employees reacted to

human problems (unpleasant working conditions etc)caused due to
industrialization

HISTORICAL FOUNDATION
As a result to HR problems, the welfare secty posts were
created
who marked the birth of specialized HRM as
distinct
feature from
routine employees
supervision by the managers
Welfare /Social sectys used to address the employees
issues such as:+ To improve working conditions
+ To solve social /personal problems (education, medical,
housing etc)
+ To prevent from making & joining the Unions
+ To help managers & act as bridge between employees
& managers

HISTORICAL FOUNDATION
SCIENTIFIC MANAGEMENT & HUMAN NEEDS
Advocacy Despite effective appearance of welfare/social sectys
researchers began to advocate the significance of scientific mangt
Due Worth Initially these depts were not given that way importance as
other (e.g production, finance or marketing) but slowly due to the
increased contributions & responsibilities its worth magnified in many folds
Tests Program During World War I (WW-I), a selection program of tests
was developed (as a segment scientific mangt ) to match the recruits with
their roles in US Army, hence led to the industrial use of tests & goes on
even today under HR depts
Growth Role End of WW-I, until Great Depression period-1930 HR depts
played a growing role in handling compensations, unions & employees
needs
Balanced Goals Many studies highlighted that the efficiency goals of
scientific mangt had to be balanced against human needs

HISTORICAL FOUNDATION
Exhibition Scientific mangt exhibited/showed the world that its
systematic study of work could lead to effective & improved
efficiencies
Replacement With the scientific mangt practices, the welfare
/social sectys were replace with primitive personnel depts that
contributed to orgl effectiveness by:-

Maintaining wages at proper level

Screening job applications

Handling grievances
Meeting employees needs
Improving working conditions

Dealing /negotiation with Unions

HISTORICAL FOUNDATION
MODEM INFLUENCES
Govt Intervention During 1930s people lost their faith on the
ability of businesses to meet societys needs & turned towards the
Govt for its intervention to give the workers:-

Unemployment compensations
Social security
Minimum wages
Federally protected rights to join Unions

Legislation During 1930, legislation helped shape the modern

role of HR dept by adding legal obligations. As a result following
developments took place:Orgs were pressured by the force of law to consider social
objs
Elevated the importance of personnel dept
Unions grew dramatically
Personnel depts begin replacing paternalism (fatherly)
Adoption of proactive approaches by taking employees
desires in account-Dealing with the Unions also fell under
the domain of personnel dept

HISTORICAL FOUNDATION
Credibility & Importance The recruitment & training demands
of WW-II & explosive growth of employee benefits also increased
the importance & credibility of personnel / HR depts
Central Shaping Force During 1960s to 70s, the legislation
was again a central shaping force of HRM. The laws were passed
to:Eliminate differences in pay between men & women
End the discrimination in employment due to sex, race, age,
religion & national origin
Address to safety & health, veterans status, disability,
pension law &
pregnancy issues
Status The above acts gave HR dept a larger voice , which
alined its status to following depts in major corporations :Productivity
Finance
Marketing

VARIOUS CHALLENGES

EXTERNAL CHALLENGES
ORGANIZATIONAL CHALLENGES
PROFESSIONAL CHALLENGES

EXTERNAL
CHALLENGES

EXTERNAL CHALLENGES
STEPS DEALING ENVIRONMENTAL CHALLENGES
Monitor the Environment Stay informed of occurred changes by:Attending various forums, seminars , workshops &
presentations
Having professional associations & interactions
Enhancing their formal arena of latest learning (education &
reading)
Evaluate the Impact Acquired information be evaluated for :What is it to org ?
What impact ( today or tomorrow) it has on the org ?
What future diagnostic indicators subject to existing changes ?
Take Proactive Measures Once changes very precisely evaluated
for its real impacts & determined as challenges for the org than :Immediately suggest remedial action
Initiate & implement proactive measures
Obtain & Analyze Feedback Evaluate the outcomes for desired
objs against initiated measures through feedback mechanism

EXTERNAL CHALLENGES
WORK FORCE DIVERSITY
Salient Aspects
Sources Of Diversity The mixture of different national origins
(people) from around the globe with wider diversity become the
sources such as :Cultures
Religions
Languages & dialects
Education attainments
Values
Skills
Ages
Races
Other many differentiating variables
Proactive Efforts HR dept in the face of increased diversity has
to make more proactive efforts to develop proactive policies &
practices

EXTERNAL CHALLENGES

knowledge & Harnessing HR depts knowledge of challenging

variables & the harnessing ways to diverse employees skills, can
help org to achieve its objs
Individuals Diversity Proactive managers & HR departments
value individuals diversity because it brings a rich source of
innovative perspectives to org
Demographic Characteristic The knowledge about diversity
comes from personal observations & trough demographic
characteristic (statistical population study)
-

Growing no of immigrants
Language of immigrants
Education quality level

EXTERNAL CHALLENGES
TYPES OF DIVERSITY
Cultural & Attitudinal Diversity The diversity in the work force is
strongly
influenced by cultural values & social (attitudinal) norms
Cultural Example the changing values & laws have greatly contributed for
increased participation of women in the employment market that
created a
variety of implications for HR depts:- Parental /Maternity leave & child care demands led to family programs
- Creation of elementary schools & child care facility with in the vicinity
Attitudinal Example - the changes in the attitude about the work have
forced the orgs to find ways to motivate the employees. The manager & HR
dept
confronted with a worthy employee requesting for a longer leave may allow
him/her to work at home than coming to the office
Social Example Different viewpoints about illegal drugs use & sexual
freedoms have also impacted the HR depts
+ Submission of drugs tests by employees
+ Employees concerns of working with AIDS infected

EXTERNAL CHALLENGES
Diversity Through Immigration & Migration All advanced
economies face
some diversity within the workforce
Guest workers
- This diversity may come from immigration across national borders or
from migration within a country
- Countries such as Germany & Saudi Arabia have large number of guest
workers (foreigners), who are granted work visas but not the citizenship
Digital Equipment
- In the light of Digital Equipments emplacement the Boston factory s 350
employees come from 44 countries & speak 19 languages but when
factory issues written announcements, these are printed in number of
different languages ensuring comfortable message & understanding
Immigrants
- Immigration will furthers reshape the workforce & add to its variety, as
the Digital Equipment example suggests
- immigrants are not free riders however, they can generate
resentment among a countrys citizen

EXTERNAL CHALLENGES
Diversity & Professionals The diversity & the professionalism creates
challenges to the manager, HR dept & the org
Women Workforce Participation
- Since women remain the primary care givers of children, they are confronted
with responsibilities of both job & child care arrangements
- The giving care issues challenges the HR depts to deal with. To negotiate
the
issue the big & strong orgs:+ Prepare & execute a flexible schedule of work
+ Creation of child care facilities
+ Establish the elementary schools
Workforce Participation
- According to a research, in 1948, the 89% of all men between 55 to 64 years
of age were in the labor & by year 2000, it dropped to 68% reflecting a trend
of early retirement & slow growth
- To retain the valued & experienced senior employees when the workforce is
growing slowly become a challenge to HR dept

EXTERNAL CHALLENGES
Diversity & Competitive Edge
- HR must embrace diversity & make it a source of competitive advantage &
not merely a part of orgs social responsibilities
- Diversity particularly in managerial, professional & sales positions may
give
an org competitive edge in language & culture sensitivity in international
market
- Home country values does not apply internationally such as long standing
tribal , cast, religion or ethic differences may not permit the same degree
of
work force diversity

EXTERNAL CHALLENGES
TECHNOLOGICAL

Artificial Intelligence Jobs & job skills are changed by technology

causing enormous challenges to HR dept since the industrial
revolution called artificial intelligence
Mechanical Power Industrial revolution allowed employer to make
greater use of mechanical power to increase productivity than
through massive number of workforce
Knowledge & Decision Making Computerized programs captured
the knowledge & decision making approaches of the experts
Problem Solving Artificial intelligence gave people greater problem
solving powers via machines /equipments & jobs along with the skills
which, changed the overall setup dramatically, affecting:Employment
Training
Development
Compensation
Employee relations & activities of HR departments

EXTERNAL CHALLENGES
ECONOMICAL
Economical Boom Global competition pressurized all the firm industry to
be more productive for the economical boom
Economic Impact Robots & other technological advancement boosted the
productivity & having direct & intense impact on the economy
Economic Challenges In the wake of artificial intelligence followed by
foreign competitions compel HR professionals to :Find more innovative ways to help managers for increased productivity
through people
Adjust changes in their organizations business plans because expansion
of economy invites new specialized employees & training programs
Recession/Depression It creates a need to maintain a complement
workforce & reduce labor costs. An out sourced contractual work force pay
dividend
Proactive Policies HR departments has to develop proactive policies that
can anticipate changes in the business cycle

EXTERNAL CHALLENGES
GOVERNMENT
Public Policy Govt involvement in the employment relationships is
meant to achieve social objectives usually the elimination of practices
that are contrary to public policy
Enforcement of Laws Govt has a direct & immediate impact on the
managers & the HR functions subject to enforcement of laws such as
occupational safety & health act & the civil rights act etc
Knowledge of Laws, The law regulating the employee & employer
relationship, challenges HR depts for concerted professional efforts &
comprehensive knowledge of relevant Govts laws ( rules & regulations)
Compliance & Proactive Efforts Govt involvement requires
compliance & proactive efforts to minimize orgl consequences in the light
its social purpose
Importance of HR The impact of these laws have helped elevate the
importance of HR decisions, however Laws related to employment,
discrimination, compensation Unions, will remain challenges for HR
managers

ORGANIZATIONAL
CHALLENGES

ORGANIZATIONAL CHALLENGES
UNIONS
Unionized Orgs
In HR dept environments, union represents an actual challenge
to the unionized orgs
In unionized orgs, the employer signs agreement with the union
(specify certain compensation & conditions), which limits the HR
activities of supervision & HR depts

Non Unionized Orgs

Unions also represent a potential challenge to nonunionized
orgs
Labor costs & competitiveness is another challenge when nonunionized
competes with unionized orgs

ORGANIZATIONAL CHALLENGES
INFORMATION SYSTEM
Information & Decision
Large amount of relevant information ensures quality of
decision making by the managers & the HR depts
Focused & concerted efforts are to be initiated for obtaining &
refining the depts information data base
Suggested questions for seeking information may include that
what are the:Duties & responsibilities of every job in the org ?
Skilled posses by every employ ?
Orgs future HR needs ?
External constrains & how they affect the org ?
Current trends in compensations of employees ?

ORGANIZATIONAL CHALLENGES
INFORMATION SYSTEM
Information Source
Acquiring & retrieval of information about other orgl dept is of
significant challenge, because most of the information of HR dept
come from the sources outside the dept
HR depts cooperation & maintaining of good working
relationships with other orgl sources ( managers /other persons)
having requisite information would pay dividend

Employee Privacy
HR dept increasingly rely on computer based information system
to store & retrieve the employees related information which,
has its on technical & procedural implication when it comes to
the factor of privacy factor
The massive computerized based information systems,
challenges the departments ability to safeguard the privacy of
employees records

ORGANIZATIONAL CHALLENGES
ORGANIZATIONAL CULTURE & CONFLICT
Orgl Culture
Each org has a unique culture as the by product of all its features such as its :History, customs, traditions & core values
Peoples behavior , intents , mutual relationships
Successes & failures
Real challenge of manager & HR specialists is to get proactively accustomed
to the orgs culture & chose the best fitting path of orgl culture to meet its
objs

Orgl Conflicts
Depending on the orgs culture & the attitude of its people , the HR
challenges may arise from conflicts among groups on certain issues like:Smokers addiction be entertained or nonsmokers are of paramount
value
Dealing with issues of coworkers infected with AIDS
Stakeholders rights to financial increase VS employees desire for
security
Employment of undocumented foreign aliens VS minority citizens

PROFESSIONAL
CHALLENGES

PROFESSIONAL CHALLENGES
CERTIFICATION
SHRM & Professionalism
Certification It is a letter of recommendation & experience
that recognizes the individuals performance & add as a
formal token to individual's future professional development
Standards & Credentials The Society for HRM (SHRM) in
1975 introduced certain standards & credentials to gauge
employees professional performance viz-a-viz acknowledge
him/her with certification. SHRM created two professional
designations
Professional in Human Resource (PHR) , applies to basic
generalists
Senior Professional in Human Resource (SPHR) , applies
to experienced generalists

PROFESSIONAL CHALLENGES
CERTIFICATION
Testing Mechanism Lately the credential were replaced
through testing mechanism that ensured minimum level of
competencies among those who receive a professional
designation from SHRM. For professional designations the
applicants have to complete a comprehensive tests on following
topics:Comprehension & credential
Employee & labor relations
Selection & placement
Training & development
Health, safety & security
Management practices

PROFESSIONAL CHALLENGES
OTHER PROFESSIONAL REQUIREMENTS
HR Profession Certification does not make the HR
management as profession because of following factors:HR dept is not an exclusively separate discipline like law,
medicine or
economics etc.
HR dept has a wide & an un-circumference radius that
draws
on variety
of disciplines
HR practitioners have limited grip over their activities
which,
limits their
professionalism
HR practitioners have limited rights & have to be
respondent
to top management
No legal sanctioned procedures/ certification/ licensing in
HR field to establish the minimum competences like other
disciplines mentioned
earlier

HRM
IN
PERSPECTIVE

HRM IN PERSPECTIVE
Existence of HR Dept
Despite the HR depts confrontations to a variety of challenges, it
exists
to enhance the orgs strategy with maximum effectiveness
& efficiency
in ethically & sociably responsible way
Researchers shows that executives & lower level managers have
different expectations about HR activities such as :+ Executives & the managers rank the selection differently from HR
specialists
+ HR specialists determine the area of concern among the different
group they support to ensure their authority

HR as Internal Constituent
In case of some hindrance caused by HR policies & practices, then
it
must submit to the needs of org
Operating managers rely heavily on their peoples skills while HR
dept
will be forced to deal with down sizing & other changes in
the org
In either case the HR dept will face the increased demand &
challenges

THANKS