Legacy Of HRM
The legacy of HRM needs to be analysed from two different perspectives to get a better insight into its nature. These are (a) the Western context (b) the Indian context.
(a) Western Context : The origin of HRM, as is known today, date back to ancient times. One find a reference of HR policy as early as 400 B.C., when the Chaldeans had a sound incentive wage plan. All that has changed over the years is the status of the employees, their roles and relationship-inter personal and intergroup. The status of labour prior to industrial revolution was extremely low and the relationships were characterised by slavery, seldom and guild system. The slaves performed manual tasks to agricultural, military and clerical responsibilities. The efficiency levels were low due to over-dependence on negative incentives and negligence of positive incentives.
The slavery structure was replaced by seldom, were neither slaves nor hired labourers. The structure was related to rural and agrarian pursuits. Workers were offered positive incentives which resulted in enhanced productivity and reduced need for supervision. Seldom disappeared during Middle Ages with growth in manufacturing and commercial enterprises. It was replaced by the Guild System.
The guild system involved the owners, the journeyman and the apprentice. It was here that real HRM started. One noticed, proper selection procedures being adopted, workers being imparted training and collective bargaining being adopted to settle issues pertaining to wages and working conditions.
With the advent of Industrial Revolution, the guild system disappeared. The doctrine of laisser-faire was advocated and the cottage system got transformed to factory system leading to enhanced specialisation. But this period was dominated by many unhealthy practices like unhealthy work environment, long working hours, increased fatigue rate, monotony, strains, likelihood of accidents and poor work relationship. Progressive entrepreneurs like Owen believed that healthy work environment could be effectively used to improve productivity. But his opinion faced severe opposition.
A major change was noticed in personnel practices after the World War I. The modern HRM started in 1920. Groups were formed to conduct research on personnel problems. A number of studies were undertaken to analyse the fallacies in the personnel field. For the first time, psychology was applied to management. The Hawthorne studies advocated the need to improve industrial relations for increasing production. The application of psychology brought a dramatic change in the work relationship and productivity started increasing. But this prosperity ended during the great depression. Thereafter, organisations started offering fringe benefits to workers to induce them to work. Findings of behavioural science were used to enhance productivity.
Increasing number of organisations adopting manpower planning, management development, techniques of personnel management, etc. Personnel departments started stressing on management-individual employee relationships. This was followed by setting up of labours relations department to negotiate and administer collective bargaining. Federal interest gave rise to manpower management department. The members of these departments were technically competent in testing, interviewing, recruiting, counselling, job evaluation negotiation and collective bargaining. They also acquired expertise in wage and salary administration, employee benefit schemes and services, training and development and other allied services. The top management started encouraging line managers in middle management to consult personnel departments in these respects. This department, later on acquired recognition as staff to the working-line. This led to multiplicity of personnel jobs instead of a single, stereotyped task. The personnel or human resource manager became a part of top management.
In todays world, stress is on scientific selection, training and development. There is an increasing emphasis on interrelationship between the leader, follower and the environment. Attempts are also on to provide scope to an individuals personal dignity, status and sense of achievement. The concern is increasing profits through people.
HRM in India is centuries old. The first reference of HRM was provided by Kautilya as early as 4th century B.C. in his book 'Arthashastra‘. The work environment had logical procedures and principles in respect of labour organisation such as 'Shreni‘ Wages were paid in terms of quantity and quality of work. Workers were punished for unnecessary delay or spoiling of work. Kautilyas contribution was based on 'Shamrastra Concepts like job description, qualifications for jobs, selection procedures, executive development, incentive system and performance appraisal were very effectively analysed and explained.
The guild system prevailed in the Indian economy too. It was based on 'Varnashram‘ or caste system and resulted in division of labour accordingly. In the course of time, professions became hereditary. From 14th century B.C. to the latter half of 10th century B.C., the relationship of employer-employee was marked with justice and equity.
The HRM experienced full in mediaeval India due to foreign aggressions over the next 700 years. During the Mughal rule, Karkhanas‘ were established, but the artisans and craftsmen were poor and lived on starvation level and the productivity was low.
During the British rule, the work environment was appalling and full of inhuman cruelties. This continued till 1881 when the Factory Act was enacted. This Act provided for (i) weekly holidays (ii) fixation of working hours (iii) fixation of minimum age for children at 7 years subject to a maximum working period of 7 hours a day.
In 1890, the first labour organisation was formed and was known as Bombay Mill Hands Association. This association started working for improving the work environment and for getting the workers their rightful dues. The success of this association Few amongst these were Printers Union Calcutta (1905), Postal Union, Bombay (1907) and Madras Labour Union (1918).
The union movement was very weak till the early thirties. But the situation showed marked improvement 5 years before and after the Second World War. After independence, the activities of the personnel department have multiplied.
Human resource department is expected to take care of welfare activities, employment, safety, training, wage and salary administration, promotions, transfers, lay-off, improvement in living and working conditions, health services, safety measurers, prevention and settlement of disputes, etc.
