Evolution of Hrm Systems

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Abstract……………………………………………………………………………………..2 Evolution of HR Function…………………………………………………………………..3 Tata Steel- Historical changes in the HR functions………………………………………...3 HR functions during Mergers & Acquisitions………………………………………………4 Historical development of the Korean HRM system………………………………………..5 Morality of HRM- Classic Ford example…………………………………………………...6 Future of HR system…………………………………………………………………………7 Conclusion…………………………………………………………………………………...8 Bibliography………………………………………………………………………………….9

1.

Abstract
“ HR should not be defined by what it does but by what it delivers- results that enrich the organization’s value to customers, invests and employees” --- David Ulrich
This article aims to study the relationship between an organization’s history and its human resource functions. Historically, HR functions were developed from a need for an employee grievance redressal system. As both external and internal environments to an organization kept changing, HR as a function developed into a multi faceted integral part of any organization. Today, HR is considered to be the key factor in the success of the organization.

I start with examining the formation and evolution of the HR function before the Second World War, notably the role played by JRD Tata and his deputy Mr. Russi Mody in the development of HR as a separate entity. The article then follows with study of the effect of resistance to change within an HR system among Korean business magnates and how its history inflicted a change in their HR approach. The article then moves on to study an important parameter in the path traversed by HRM systems – ‘Morality’. Organizations which are historically perceived as Ethical can bail themselves out of a potential Moral hazard, intentionally done or otherwise.

After a brief overview of the road ahead for HR functions, I conclude the article with my views on the historical influences on HR systems within organizations based on the arguments created within the scope of the study

Evolution of HR function
Today’s Human Resource (HR) function dates back to nearly eighty years. HR, which was earlier called Personnel focused on a handful of mundane tasks. It lacked authority, leadership, direction and clout. Gradually, however, it acquired additional responsibilities and began to attract a high caliber of practitioners. Soon, personnel evolved into HR in recognition of the fact that personnel reflected a more traditional reactive function while HR exhibited a commitment to management by anticipation. Today, HR is moving decisively toward becoming more strategically aligned with an organization’s business side. Organizations seeking to establish an HR function should be guided, in part, by staff ratios. Currently, the median ratio of HR staff per number of employees is 0.9 per 100 (Diane Arthur, Fourth Edition).

Tata Steel- Historical changes in the HR functions
Tata Steel (formerly TISCO) has to its credits many firsts, not only in India but also in the world (Dessler & Varkkey; 12th edition). It introduced the first 8 hour working day in 1912, free medical aid in 1915, leave with pay in 1920; schooling for children in 1917; workers provident fund schemes in 1920. These benefits were unknown even in the US and UK at that time. The company set up a Works Committee for handling grievances as early as 1919.In spite of these efforts; Tata Steel had the biggest strike in its history in 1928 lasting over 3 months. When JRD Tata (JRD, henceforth) became the chairman in 1938, he made a settlement with the then labor leader, Prof Abdul Bari for Rs 2.5 crore which many Board members did not approve. But the seeds of industrial harmony which JRD planted with Prof Bari survived and flourished under Mr. Michael John, successor of Prof Bari after his death. Between him and JRD there developed a rapport wherein each recognized in the other a thrust towards a common objective-...
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