Managing people…

• Age-old issue
• When did we start discussing
about it?
HRM_Evolution • With industrial revolution…
Sriji E S • Before that, what was the case?
• When slaves were managed in
very hierarchical, authoritarian
ways this was rooted in
assumptions that the elites of the
time were absolutely superior, &
• Had the right (even the divine
right), to manage the workers that
they saw as inferior to them.

Before … Industrial Revolution… After Industrial Revolution

• Machines were brought in
• Technology made rapid
progress
• Jobs were fragmented
• Large scale Industrial work • Specialization increased speed
• Small scale house hold Other work places and efficiency
production • Controller of production: • Workers were dull, boring, doing
Workplace monotonous jobs
• Controller of production: • Strict monitoring and drive system
Household • Lost autonomy, discretion • Foreman/supervisor: Behaved • Focus: Meet production targets
• Valuable is individual outside like a King(?), who mend
• Autonomy, Discretion on ‘When work, not household unpaid • Assumption: Workers need to be
and How to work’? people(?).
work managed
 Scientific Management Trade Unionism
• F W Taylor (Assumption: Money • Assumption: Employees have
motivated people, needs efficiency) psychological needs
• Focus: Speed and efficiency
• In the name of speed, efficiency &
• Systematic analysis & breakdown* of money, there was a tendency among
work, & make best combination
employers to exploit the workers.
• Break every job down into small,
standardized, repetitive tasks that • Workers joined through unions for
any unskilled worker could do. their welfare.
• *Who? : managers • Differential piece rate system for • Collective bargaining resolving issues
• Employee fit (physically, mentally, complying with supervisor’s on working conditions, pay and
exclude over qualifiers) specification of detailed procedure benefits, disciplinary actions etc.
• Training for employees, exactly as (incentive/high-piece rate)
specified by prior scientific analysis

Human Relations movement Human Resource Approach

• Reference: Hawthorne experiment • Rejected pet milk theory
• Assumption: Employees have psychological needs; social relationships are • Individuals differ: Each employee is a unique and highly complex
also important. individual with different wants needs and values
• Rising unionism: Wagner Act (Legal right to bargain collectively with • Slowly, trend towards treating employees as resources/assets emerged
employers over matters concerning wages, job security, benefits and
many other conditions at work)
• Human relations movement led to supervisory training programmes,
emphasizing support and concern for workers, programmes to
strengthen the bonds between labour and management, counseling
programmes etc.
Evolution of HRM in India IT_A new evolution of HRM in India
• Concept may be traced back to Arthashastra_Performance linked pay • The role of IT industry
• 17th century_Trade relations > Master-servant • ITES
• Formal industrial organizations_after 1850s > Awful conditions • The change they brought in!
• Textile Labour Association in Ahmedabad (1920) like initiatives.
• Attrition!
• Tata Steel in Jamshedpur
• Quality Standards!
• After independence in 1947, Public and private sectors > Various welfare
measures • Recession > 6th Pay
• 1970s and 1980s > Crisis or issues driven HRM • Second Career Internship Program
• Unions, Management training institutes and business schools > facilitate • Bereavement leave
adoption of modern management thoughts and principles.
• Work from home
• HRD