Institute of Management, Nirma University

MBA – FT Batch 2021-23 Term - II

Human Resource Management
The changing context of HRM
Group No. 1, Section C

Submitted By:

Muskan Babel 211197

Submitted To:
Sanket Agarwal 211219
Prof. Deepa Sanghvi
Tauhid Sheikh 211230

Anand RS 211163
Content –

a) Evolution of Business
b) Evolution of HRM
c) How HRM thoughts and Practices have changed
d) Development of HRM
e) New practices in HRM
f) The current practices of HRM in the industry
g) Conclusion

Evolution Of Business:

The evolution of business has always been an interesting topic to discuss upon. The
evolution of business has numerous aspects to be considered as it is a historical
concept that examines the history of firms, business methods, government
regulation, and the effects of business on society. It also includes biographies of
individual firms, executives, and entrepreneurs. It is related to economic history. So,
to generalize the evolution, major steps of the evolution are being considered in
broad categories. They are as follows:

a. The first and the foremost stage of the business evolution was the Household
economy, in which man started hunting animals, agriculture, and
domestication of animals to feed his family
b. Barter system stage, due to the increase in the wants of the family, the
families started exchanging surplus goods and hence came barter system into
existence. It was an Exchange of commodity to the commodity without
involving any common unit of exchange
c. Money economy stage, this stage solved all the problems of the barter system
as money came into existence. The business was now done with respect to a
common unit of exchange called money
d. Town economy stage, the introduction of money and specialization of labor
made people settle down at a fixed place called villages or towns. They
became commercial centers
e. The national economy, the market from town extended to the whole country
and hence was introduced national economy. A middle man came into
existence and commerce at this time became considerably developed
 f. World market stage, where large scale production and distinguished services
widened the market to international level. This stage can be called the present
case scenario

Evolution of HRM –

a) Industrial revolution era— 19th century

b) Trade union movement era — end of 19th century
c) Social responsibility era — initial 20th century
d) Scientific management era— 1900-1920s
e) Human relations era— 1930s-1950s
f) Behavioral science era— 1950s-1960s
g) Systems and contingency approach era – from 1960
h) Human resource management era — 1980 onwards

How HRM thought and practice have changed?

HR is a process of all human relations movements and also creating the value of the
business through strategic management of the workforce. Initially, HR was all about
recruitment and providing benefits such as payroll and initiative benefits but now
due to globalization and certain modifications in the corporate sector eternal
focused more on strategic initiatives, talent management, labor relations, and
diversity.

Development of HRM - The history of personnel management began at the end of

the 19th century when benefit officers will be really concerned with the protection of
women and girls, they also created a harshness as per industries and coupled various
pressure extensions the influence of trade unions and the labor movement and
campaigning was also lightened and this was for the industrial betterment.

The First World War accelerated the growth of the human resource sector and
women were being recruited in a large number and many of the unskilled women
were also recruited for Craftsman jobs.
In 1920 laborers were taken care of really well and their pay was negotiated by
unions.

In the 1930s when the economy was growing and new corporations were setting up,
they saw value in increasing employee benefits by motivating and retaining them.
The Second World War is all about Duval’s favor and the efficiency of the workers on
a full-time basis.

By 1945 employee management was also covered under personnel management and
the role of the personnel function in wartime was also demanded by rules of large
scale and state governed production.

In the 1960s and 70s employment boosted up and so is personnel techniques by

some schools and hence, theories of organizational behavior and motivation came
up.

Then, around in the mid-1980s, the term human resource came up in the US and it
suggested that employees were an asset or resources of greater use, also HR
appeared to emphasize employee commitment and motivation.

New practices in HRM (as a response)

Selective Hiring - Today's competition is tough, with many firms struggling to

recruit, secure and maintain the greatest possible talents. In order to hire the
greatest personnel, your firm requires a recruiting process that attracts the top
prospects. It is also important to make the greatest use of the roles of
interviews. Selective recruitment helps you attract people who are most suited
to the function and culture of your business.

Self- Managed teams - A lot of modern management thought is about

disassembling and replacing the old hierarchy of management, team leaders,
and employees with self-managed teams. Rather, everyone works together to
achieve a shared objective, while team members lead specific projects on the
basis of their knowledge and experience. Self-managed teams empower
everyone to assume responsibility for corporate success via personal
performance liability.
Effective training - To keep your workers up to speed with the newest advances
in their industry, consistently enhance their abilities, and keep them interested,
enthusiastic, and motivated in their employment, it’s crucial to give them a
chance to learn on an ongoing basis. But training in itself isn’t necessarily
successful. In addition, the new abilities they have gained must be used in the
practice. Second, the training approach must meet the demands and the skills
of the employee.

Performance management - The concept that managers and employees carry

out an annual performance assessment has been around for some time
now. However, this annual gathering alone is not sufficient to promote
meaningful changes in performance. Goal and appropriate feedback are
gathered from a number of employees' connections, including their managers,
colleagues, subordinates, and outside contacts, in a comprehensive
performance management system.

Employee feedback mechanisms - Switched organizations realize that there are

two methods to get feedback. While giving employees the correct feedback to
enhance their performance is essential, it allows employees to express their
views about the company to improve. Managers should utilize this input to
address workplace or management problems in order to help employees feel
more appreciate

Paperless HR processes – Documents are also digitally saved, which makes it

simple to retrieve and structured and automated HR processes less susceptible
to mistakes. Paperless HR employs software to automate many of the most
typical and time-intensive tasks of HR, including recruiting, onboarding,
management of performance, and training.

HR moved to clouds - - HR software provides several advantages to a firm that

contributes to HR efficiency. A Cloud-based HR application holds all data on
staff, job information, and staff documents, such as contracts, to increase
 accessibility and to maintain confidentiality and data protection with roles-
based access. In addition, a user-friendly HR platform such as Kissflow HR Cloud
companies may save time, save costs, minimize bugs and make the HR process
consistent.

The current practice of HRM in the industry today to bring out the alignment
between the changes in the external environment and the response of the
companies (in its people management practices).

The COVID-19 pandemic-induced lockdowns and associated global recession of

2020 have created a highly uncertain labor market outlook and hastened the
arrival of the future of work. The Future of Jobs Report 2020 seeks to shed light on
(World Economic Forum, 2020, 5)

The pandemic-related disruptions that have occurred thus far in 2020,

contextualized within a longer history of economic cycles.
The expected outlook for technology adoption jobs and skills over the next five years.

● In 2018 It talked about the 4th Industrial revolution. The age of Tech and
Automation
● Updated Report 2020, In this report Covid has Fastrack the age of
technology.
● The future of Job report provides details for the labor workforce to discover
future jobs.
● This job report is the third edition. And it is dedicated for the coming 5
years.

1. Virtual Work (Work from Home) and Hybrid:

As a result of the Fourth Industrial Revolution and the COVID-19 recession, day-
to-day digitalization has accelerated, with a large-scale shift to remote working
and e-commerce, resulting in an increase in work-from-home arrangements and
the creation of a new marketplace for remote work. However, it has also resulted
in significant well-being issues as workers struggle to adapt to new ways of
working in a short period of time. with a large-scale shift to remote working e-
commerce, causing an increase in work-from-home arrangements and the
creation of a new marketplace for remote work. (World Economic Forum, 2020,
5) It was possible because of covid. According to the most recent report, more AI
and digitalization are on the way, which will be accelerated by Covid 19.
According to IBM's Covid 19 Trilemma tradeoff report, Prior to the COVID-19
lockdown, only 10% of people claimed to be working from home. By July 2020,
that figure had nearly quadrupled to nearly 45 percent. While employers
received mixed reviews for how they handled the pandemic, one thing stood
out. They could do something that would appeal to the majority of employees
and that is offer continuing options to working from home Eighty percent of
those who work remotely say they would like to continue working away from
the office at least occasionally, while 58% would like this to be their primary
mode of operation Indeed, among that Only one out of every ten people who
work remotely full-time say they want to continue doing so. (IBM Institute for
Business Values, 2021, 7)

2. Technology adoption and Deployment prioritization:

Given the shift to a more virtual and disconnected workplace, another trend
expected to see is a
focus on what has been dubbed "digital-first work." This has far-reaching
implications for businesses as they try to figure out how this new era will shape
their culture and values.

Similarly, according to the 2021 Deloitte Global Human Capital Trends report,
"introducing digital collaboration platforms" is the most important factor in
sustaining this new way of working. (Deloitte, 2021, 14).
 Mental Health gets the attention it requires: One of the most visible consequences
of the pandemic has been its impact on mental health.
According to an SHRM report from the first half of 2020, up to 35% of
employees surveyed experienced depression symptoms on a regular basis,
while 41% reported work burnout and 45% felt "emotionally drained from their
work." (SHRM, 2021)

3. Data Becomes the New Currency

Flashy modern developments like cryptocurrency, blockchain and the IoT have
been billed as the currencies of the future. When you break it down, though, there
is one digitally-driven area of
business that has been operating as the “new oil” of the tech era for far longer:
“Data”. Data has taken the world by storm in the wake of the commercialization
of the internet. Due to which the top strategic focus of HR over the next few
years, is a focus on data. The shift to remote work caused by the pandemic
means employers had to increasingly rely on tools to gauge how engaged and
productive employees were, and, by extension, turn to data insights for direction.
Thus, the data is taking the center stage in the company by

● First, it shows how successful HR practices are in adding value at the

strategic or business level.
● Second, data allows HR to identify ways to enhance practices and the
employee experience.
● Third, it enables HR to show how its various functions align with
related strategies and commercial demands.

4. Team Play an Essential Role -

Today, with business competition, customer expectations, new technology, and

many other
developments, it is more critical than ever to build teamwork in your organization.
The many challenges that your organization faces, the more critical it becomes
that teamwork is effective. The key elements to successful teamwork are trust,
communication, and effective leadership; a focus on common goals with a
collective responsibility for the success

The concept and formation of virtual teams that accompany virtual work will
become a major issue in 2021. The whole process of organizational teamwork
must begin with a company leadership team that creates a business strategy
and focus on the critical goals of the enterprise. Deloitte also
highlighted “superteams” as the way of the future. A superteam combines
people and technology to produce outcomes more quickly and at a greater scale
than would otherwise be possible. Factors that contribute to successful
superteams, according to their survey data, include: (Deloitte, 2021, 24)

● Creating a “culture that celebrates growth, adaptability and resilience”

(45% of executives surveyed).
● Enabling a capable workforce “through upskilling, reskilling and mobility”
(41% of executives surveyed).
● “Implementing new technologies” (35% of executives surveyed).

5. Employee value Feedback is being received and acted upon:

Employee feedback is defined as a process of giving constructive suggestions to

the employees by their reporting managers, supervisors, and peers. Feedback can
help employees and the organization constantly get better at what they do.
Employee feedback is an integral part of the employee experience process and a
mechanism that will increasingly help employees get better at their job and for
the organization to develop a better workplace culture. According to a Qualtrics
report, gathering employee feedback and then acting on it is the best way to
improve Employee Experience, with 65 percent of employees saying it's very or
extremely important for their company to listen to feedback. The study also
 discovered the following advantages to "turning feedback into action": (Qualtrics
XM, 2020) Employees are twice as engaged in companies that do have a listening
program. Almost 70% are very or extremely likely to stay with a company for a
longer period of time

Conclution:

We basically learned about the evolution and need for human resources as the
corporate world's dynamics and complexities changed. We discovered how workers
or employees were handled in the beginning, necessitating the creation of HR
legislation. Any company's most valuable asset is its employees. Every firm must
develop its workforce by aligning its human resource strategy with the most recent
trends in order to be successful. The Human Resource (HR) departments of
businesses have evolved over time as technology has progressed. The global COVID
19 outbreak has spurred HR managers to respond rapidly to critical business needs,
manage workforce variations, and take advantage of cutting-edge technology.
Human resources are an organization's most precious asset, and they must be
completely and properly utilized rather than exploited.

References-

https://www.itagroup.com/insights/evolution-of-human-resources-management

https://www.mjvinnovation.com/blog/hr-4-0-technology/

https://www.itagroup.com/insights/evolution-of-human-resources-management

https://www.reflektive.com/blog/hr-changing/
https://www.process.st/hr-best-practices/

https://www.humanresourcesmba.net/worlds-30-innovative-corporate-human-
resources-departments https://www.shrm.org/hr-today/trends-and-
forecasting/research-and surveys/Documents/SHRMIndiaBestworkplaces.pdf

https://www.thehrdirector.com/top-trends-in-human-resource-management-in-
2021/

https://www.tinypulse.com/blog/how-hr-has-changed-over-the-last-10-years
https://www.reflektive.com/blog/hr-changing/
FROM INDUSTRY 1.0 TO INDUSTRY 4.0 –
THE CHANGING CONTEXTS FOR HUMAN
RESOURCE MANAGEMENT
Group No. - 1
Sec. - C
Term -II

Submitted by -
Tauhid Sheikh - 211230
Sanket Agarwal - 211219
Muskan Babel - 211197
Anand R S - 211163

Submitted to -
Prof. Deepa Sanghavi
Industry 1.0
In 1784, the first weaving loom was introduced.

Small firms went from serving a small number of

Machines powered by water and steam were utilised clients to large organisations with owners,
to assist employees in bulk production of managers, and employees serving a larger number
commodities. of consumers as production efficiency and scale
increased.
Industry 2.0
Compared to water and steam-powered
machinery, electrical machines were more cost and
effort efficient to operate and maintain.

During this time period, the first assembly line was

The creation of electrically powered devices was the established, substantially streamlining the mass
revolution's most significant achievement. production process.
Industry 3.0
The Third Industrial Revolution began in the 1970s,
It all started with the introduction of the first with the use of electronics and IT (Information
computer. These early computers were frequently Technology) to increase production automation.
crude, clumsy, and disproportionately huge in Internet availability, connectivity, and renewable
comparison to the computational power they could energy all helped manufacturing and automation
deliver, but they set the framework for a society that improve significantly.
is difficult to envision today without computer
technology.
Industry 4.0
The Industrial Internet of Things (IIoT) as we know it
today allows for this information exchange. The
following are some of the key aspects of Industry
4.0:
A mechanical device that is controlled by
computer-based algorithms is referred to as a
cyber-physical system.
The Fourth Industrial Revolution ushers in a new era
of smart devices, storage systems, and The Internet of Things (IoT) is a network of
manufacturing facilities that can communicate, networked machines and vehicles with
trigger operations, and control one another without computerised sensing, scanning, and monitoring
the need for human participation. capabilities.
Cloud computing refers to the hosting and backup
of data on a remote network.
Cognitive computing refers to artificial intelligence-
based technological platforms.
Evolution of Business:
From barter system to introduction of currency
From local stores to expansion across geographical boundaries
From traditional ways of book keeping to digitalization of the
process
Standardisation of output
Introduction o electrical energy
Establishing supply chain network
Increase in scale
 Pre-1900s Human
Resources
Management:

1920s–1950s Human
Resources

How HRM
Management:

changed
1960s–1980s Human
Resources
Management:

over 1990s–2010s Human

years:
Resources
Management:
Differences brought
by HR Evolution:

HR as Strategic Business Partner

Culture Building
Reinventing Reviews
Managing the Remote Workforce
Major HR Changes
over the Last 10
Years:
Engaging Employees to Increase Productivity Culture
Building
Strengthening Culture to Create Long-Lasting Team
Bonds
Managing Talent to Retain Employees
The Future for HR
Leaders:
Accept Analytics
Recognize your employees life stage
Change Attitude from Reactive to Proactive
Spend time developing your employer
brand message
Ongoing new
strategies
performed by HRM:
Promote Diversity and Inclusion
Cultivate Critical Thinking, Soft Skills, Digital Skills
Employee Wellness Programs
Artificial Intelligence (AI) and Machine Learning
Creativity in Recruitment and Learning Management System (LMS) for
Training
Fluid Task Management with Gig Economy
THANK YOU!