Growth of HRM in India

Stages in the Evolution of HRM

Industrial Scientific
Paternalistic Era
Revolution Era Management Era

Behavioral Human Relations Industrial

Science Era Era Psychology Era

Personnel Welfare Era

Specialists Era
 Industrial Revolution Era
• Development of Machinery
• Mass Production of Goods
• Accumulation of Capital
• Business and Commerce were greatly accelerated

Design of Jobs
Selection of HR
Compensation
Welfare of Employees
 Industrial Revolution Era
• In late1800’s - Unions , Violent Strikes
• In Early 1900’s – Many components of HRM
were falling into place.
 Scientific Management Era

• Taylor’s contribution to management

• Frederick Winslow Taylor (20 March 1856-21 March 1915) was an

American mechanical engineer who sought to improve industrial
efficiency.

• It is the art of knowing what exactly you want from your men to
do & then seeing that it is done in best possible manner.

• In simple words it is just an application of science to management.

 Principles of scientific management
• Science not the rule of thumb
• Harmony not discard
• Cooperation between employers and employees –
Co-operation not Individualism
• Maximum output, in place of restricted output
• Scientific selection training and development
• The development of each man to his greatest efficacy and
prosperity
• Division of work/ responsibility
• Mental revolution
 Scientific Era
• The four principles of management.

1. The development of a true science.

2. The scientific selection of the workman.

3. The scientific education and development of the

workman.

4. Intimate and friendly cooperation between the

management and the men.
 Paternalistic Era
Robert Owen - a British Industrialist
Father of Personnel Management

• Worked for the Welfare of the workers

• Tried to improve working conditions
• Adopted a paternalistic attitude
 Industrial Psychology Era
Hugo Munsterberg – Father of Industrial Psychology

• Applications of Psychology to business and Industry

• The analysis of Job in terms of their Physical, mental

and emotional requirements

• The development of testing devises for selecting

workers
Human Relations Era - Elton Mayo

• Work is a group activity.

• The need for recognition, security and sense of

belonging is more important in determining
workers' morale and productivity than the
physical conditions under which he works.
 Elton Mayo
• Informal groups within the work plant exercise
strong social controls over the work habits and
attitudes of the individual worker.

• Group collaboration does not occur by

accident; it must be planned and developed.
 The Behavioral Science Era
• Productivity depends to an extent to which
the employees became a team and co-
operated wholeheartedly and spontaneously.

• Lack of coercion or force

• Participation in Decision Making

• Various theories formulated in this era –

Maslow’s Need Hierarchy Theory

Herzberg two Factors Theory
Mc Gregor’s Theory X & Y
 Personnel Specialist Era and
Welfare Era
• To assist the line managers to maintain
optimum efficiency of the work force

• To assist Management in the field of Human

Relations, Labor-management relations and to
develop personnel policies and procedures

• To manage welfare services

Growth of Personnel Function in
India
1) The Report of the Royal Commission on
Labour in India – (1929-31)
• Recommendations –

Appointment of Labour officers to deal with

recruitment

Qualities required – integrity, personality,

energy, ability of understanding individuals,
should have a linguistic facility
 The Royal Commission Observed
• All labour should be engaged by him, and none
should be dismissed without consulting him.

• Initiate and administer many welfare measures.

 Growth of Personnel Function in India
2) Appointment of Labour Officers
3) The Second World War –
Welfare and Labour Administration
They were to deal with –
Working Condition, Canteen, Ration shops, recreation
Facilities, medical facilities, worker’s housing etc.

Welfare Activities, Personnel Activities and Industrial

Relations
Growth of Personnel Function in India

4) Enactment of Industrial Disputes Act – 1947

Made adjudication compulsory – related to
conditions of service, wages and benefits

The welfare officer thus become the Industrial

Relations officer (with legal background)
Growth of Personnel Function in India

5) Enactment of Factories Act – 1948

6) 1960 and After

 Slow Growth of HRM in India
• Late arrival of the Factory System
• Low status of the Industrial Worker
• Professionalization of HRM
• Change of Govt. Attitude
• Social Responsibilities of Business
– Fair wages
– Adequate benefits
– Good working conditions
– Opportunity for growth
– Recognition of worker’s rights
– Co-operation
 Factors Impending the Growth of HRM in
India
• Abundance of cheap labour
• Weak Labour Movement
• Highly Authoritarian Culture
• Technological Backwardness
• Instability in Employment
• Unhealthy Growth of Trade Unions
• Migratory characteristic of Indian Labour
 Evolving Role of HR Man in India
• The Police Man
• The Welfare Man
• The Law Man
• The Liaison Man
• The HR Man
 Emerging Concept of HRM
1. Commodity Concept
• Labour as commodity to be bought and sold

• No/Little Govt. Intervention

• Remuneration of Labour was subjected to the law of

Demand and Supply

• Over look emotional and social characteristics upon the

working situation
 Emerging Concept of HRM
2. The Factor of Production Concept
• Employees as mere economic factors of
production

• Philosophy was – Labour should be treated as

other physical factors of Production ( Material,
Money, land etc.)
 Emerging Concept of HRM
3. The Machinery Concept (1800-1900)
• Emergence of Scientific Management Movement – Taylor

4. The Good Will Concept

• Various welfare measures for labour e.g. safety, first aid,
lunchrooms, rest rooms etc.
• Realized the relation between welfare of employees and
productivity.
• Still was more of a fashionable term
 Emerging Concept of HRM
5. The Natural Resources Concept
• Steps to protect the workers were initiated
• Child labour Law
• Working hours
• Workers compensation
• Workers health
• Many legislations etc.
 Emerging Concept of HRM
6. Paternalism
• Robert Owen- Many Welfare activities –
• Other then lunch rooms and rest rooms
Recreation facilities, Insurance plans, pension
programs etc.
 Emerging Concept of HRM
7. Humanitarian Concept (1910-1917)
• Physical and Mental Health
• Workers have some inalienable rights which should
be protected
• Human beings are equal with different
temperament and reactions
• Cooperation between labour and Management
• 1920 – Institution of Employee welfare prog. (was
the application of Social psychology)
 Emerging Concept of HRM
8. Human Relation Concept
• Hawthorne Experiment
• Conclusion -
• Sociological and psychological phenomenon
often exerted greater influence on production.
 Emerging Concept of HRM
9. Citizenship Concept
• As a citizen in democracy - Workers as Industrial
citizen
10. Partnership Concept
• Mutual Responsibilities as well as sharing the fruits
of a joint endeavors
• Workers as co-human beings
• Profit sharing
• Stock ownership scheme
 Emerging Concept of HRM
11. Future Concept
• Control of Organization
• E.G. JMEL – Jaipur Metals and Electrical Ltd.