IN
HUMAN RESOURCE MANAGEMENT”
A RESEARCH PAPER
by
SANTOSH BAGWE
1
Index
1. Introduction 3
2. Research Topic 6
3. Objective 15
6. Hypothesis 16
7. Terminology 17
8. Chanakya’s identity 21
9. Collection of material 22
10 Analyses 23
2
“Arthashastra is nothing but the Science of Government.”
1. Introduction
The well educated Indian, like their counterpart in the Western and now also in the
Eastern world, is under the implicit impression that such systematic thinking on
management started only in the 20th century. However, given the complexity of
managing a kingdom or a country, it would not be surprising if treatises on management
were written in the ancient past also. In fact, a search for such management literature in
India and in the world yields fruitful results. Some of the well known works that deserve
attention are the following:
1
http://www.book-of-thoth.com/thebook/index.php/Chanakya
3
political thought and social order. His ideas remain popular to this day in India. In
Jawaharlal Nehru's Discovery of India, Chanakya has been called the Indian Machiavelli.
Nehru [1998, p. 123] describes Chanakya as follows: "He sat with the reins of empire in
his hands and looked upon the emperor more as a loved pupil than as master. Simple
and austere in his life, uninterested in the pomp and pageantry of high position."
2
The centuries to come and the centuries that went by, are recorded in history talking of
the great men and legendary characters who shaped time through their vision and
exemplary actions. Chanakya, perhaps is the only personality who has been accepted
and revered as a genius both by Indian and Western scholars. He is a historical
milestone in the making of India amidst tremendous upheavals and myriad’s of
reversals. Celebrated as a shrewd statesman and a ruthless administrator, he comes
across as the greatest of diplomats of the world. He had the guts to speak his heart out
even in front of the rulers, which shows his strong inclination to democratic values and
the audacity to put his views through. Although, he lived around the third century BC, his
ideas and principles show concurrence and validity in the present day world. Politics was
his forte. Diplomacy in a politically charged environment shows his self-confidence and
the ability to stay calm in trying situations.
His foresight and wide knowledge coupled with politics of expediency founded the
mighty Mauryan Empire in India. He was a great laureate of economics with a glittering
intellect to perceive the intricate dynamics of the various economic activities and
principles.
The centuries that succeeded him show distinct effects of his thoughts on the way a
kingdom is managed and other facets of economic administration. Even today, one of
his maxims on taxation is very much alive and calls for adherence by the governments of
the world. According to Chanakya, "Taxation should not be a painful process for the
people. There should be leniency and caution while deciding the tax structure. Ideally,
governments should collect taxes like a honeybee, which sucks just the right amount of
honey from the flower so that both can survive. Taxes should be collected in small and
not in large proportions".
2
http://www.chanakya.com/chanakya.htm
4
1.3 How Chanakya is different
3
The Panchatantra consists essentially of 69 case studies compiled by the Guru to reach
“management of people” to three grown up sons of a kind in a six month residential
training programme. Hitopadesa is a similar treatise that borrows heavily from
panchatantra, and has an identical narrative style. But unlike Arthashastra, these two
deals only with one aspect of management – managing people. Chanakya’s
Arthashastra deals with all the different aspects of managing a kingdom, including
management of men. Arthashastra is the earliest known and available treatise of this
kind in the history of the world. In Arthashastra, Chanakya deals with all aspects of
administering a state – from training and establishing a government hierarchy, selecting
people and levying taxes, to laying down laws, to deciding punishment for breaking the
law, etc. Incidentally, Chanakya refers to views of several earlier (over 600 years) Indian
authorities on management. He then states his own view, giving reason for differing from
the earlier views. One presumes that he wrote the Sutras with a view to make it easy for
his students of management, in a manner that will prove useful in actual practice
The Chanakya Sutras have the unique distinction of being the principles which have
been demonstrated to have been used successfully in practice to achieve good results
on a sustainable basis. We do need to look for those principles that are likely to make
sense in our own social and work culture. These would hopefully deliver better results for
all concerned – the customers, the investors, the employees, the vendors and the
society.
Several of the current attempts at developing an Indian ethos in management turn to our
philosophical or religious text. Such efforts, though commendable, suffer from three
disadvantages. Firstly, the philosophical religious texts were written primarily in the
context of doing one’s ordained duties as individual. Secondly, these do not address the
many different aspects of managing an enterprise. Thirdly, when we choose the
scriptures of any one religion in India, the managers belonging to other religions find it
really difficult to accept the concepts which are not to be found in the same form in their
own religion. So from amongst these, the one complete system of looking at all aspects
of management is Chanakya’s Arthashastra.
3
Page 3 of “Canakya on Management” authored by Ashok Garde published by Jaico Publishing
House
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2. Research Topic
Workforce management has become increasingly complex. The heritage and growth of
the human resource management profession is closely linked to people's attitudes about
work, the evolution of employment-related laws and sociological trends. The HR field
today recognizes the dynamic relationship between strategy, people, technology and the
processes that drive organizations. Although this dynamic relationship appears obvious
now, the evolution of the profession has often been slow.
One could argue that the HR field dates back to the first working arrangement between
master craftspeople and their apprentices. Before the industrial Revolution, working
arrangements involved close relationships between mentors and apprentices dedicated
to learning a particular trade. Apprentices were often required to live in the shop or home
of the master craftsperson. If an apprentice was injured or sick, the master's family was
responsible for restoring the young worker's health and welfare. Master and apprentice
shared in good times and bad, in profit and in loss.
The usefulness of this age-old relationship came to an abrupt end with the advent of the
Industrial Age. In one powerful stroke, the notion of work moved from guilds and home
shops to steam-driven factories. The introduction of the assembly line brought a need for
low-skilled employees capable of performing repetitive tasks. Management philosophy at
the turn of the century was epitomized by Henry Ford, who often wondered why workers
brought their heads to work when all he really needed was their hands and feet.
Assembly line production required that large numbers of people come together for work,
but these workers were interchangeable and, to some extent, expendable, because few
skills were required for most factory jobs. Employers' attentions focused on consumer
demands, the speed at which new machines produced goods and the processes that
drove production -- concerns that were sometimes placed well ahead of the needs of
employees.
By the late 1800s, people problems were a very real concern in the workplace. For the
average blue-collar worker, most jobs were low-paying, monotonous and unsafe. Some
industries experienced difficulty recruiting and retaining employees because of the poor
working conditions workers were exposed to. As the means of production continued to
shift from farmlands and guilds to city factories, concerns grew about wages, safety,
child labor and 12-hour workdays. Workers began to band together in unions to protect
their interests and improve living standards. Government stepped in to provide basic
rights and protections for workers.
4
Michael Losey "HR comes of age - history of human resource management". HR Magazine.
FindArticles.com. 07 Jan, 2010.
6
attempted to solve worker problems with such basic personnel management functions
as employee selection, training and compensation.
It's believed that the first personnel management department began at the National Cash
Register Co. (NCR). NCR faced a major strike at the turn of the century but eventually
defeated the union after a lockout in 1901. After this difficult union battle, company
President John H. Patterson decided to improve worker relations by organizing a
personnel department to handle grievances, discharges, safety and other employee
issues. The department also kept track of pending legislation and court decisions and
these first personnel managers provided training for supervisors on new laws and
practices.
NCR was not alone in its efforts to address employee grievances. Other employers were
looking for management solutions that would alleviate employee disenchantment. Many
attempted to ease labor unrest by increasing wages. For example, Ford experienced
employee turnover ratios of 380 percent in 1913; in 1914, the company doubled the daily
salaries for line workers from $2.50 to $5, even though $2.50 was a fair wage at that
time.
Although industrial giants were beginning to understand that they had to do more than
just hire and fire if they were going to meet consumer demands for products, most of the
objectives of early personnel professionals were one-sided. Business leaders still viewed
the work itself as infinitely more important than the people doing it, and production rates
remained the top concern. Because employers believed employees would accept more
rigid standards if they received extra pay and benefits, most employer-sponsored
business solutions were aimed at making employees more efficient. From this mind-set
grew scientific management approaches based on the work of Frederick W. Taylor and
other experts whose goal was to get people to perform as efficiently as machines.
Of course, such approaches did little to improve worker morale or improve working
environments. To counter the growing strength of the labor movement, some employers
hired strikebreakers or kept blacklists of union members. Others made workers sign
"yellow-dog" contracts -- agreements that they would not join unions. Still others
attempted to protect their interests by creating company unions to pre-empt the influence
of outside union activities.
Government stepped up to help those who were less fortunate through reforms of work
hours, new laws governing the work of children and workers' compensation laws aimed
at protecting employees injured on the job. In Congress created the U.S. Department of
Labor "to foster, promote and develop the welfare of working people, to improve their
working conditions and to enhance their opportunities for profitable employment."
The Labor Department grew rapidly during World War I as the war effort became a
national priority. By the war's end, the Labor Department -- through the War Labor
Administration (WLA) -- had set numerous policies to ensure that wage, hour or working
condition problems did not hinder the war effort and industrial growth. WLA initiatives
were model programs but frequently fell short of business needs. They could not meet
the challenges that would soon stop the industrial explosion in its tracks.
In 1929, the onset of the Great Depression drastically changed the rules of business.
With profits dwindling, employers first eliminated voluntary welfare program, then jobs.
7
The government led by President Franklin Roosevelt, provided some assistance by
creating jobs ranging from road building to painting murals on government buildings
through the Civil Works Administration and later the more extensive Works Progress
Administration. New social programs, including old-age pensions, labor standards and
minimum wages for some industries, were developed.
With dreams of the good life fading for most workers, unions established strong roots in
many industries and gathered political clout with Congress. The Norris-LaGuardia Act
changed the rules of the game in labor-management relations by making "yellow-dog"
contracts unenforceable and severely restricting the use of federal court injunctions in
labor disputes. Union organizations grew in power after passage of the National Labor
Relations Act (NLRA) in 1935, also known as the Wagner Act.
As employers began to understand the need for professionals who could play a middle
role between employees and employers, the personnel manager's role emerged. It was
during this first movement that employers began to truly understand that employees
were more than machines with interchangeable faces. The personnel managers of this
period did not have all the answers, but the developing practices and concerns of the era
set the stage for continuing study and investment in the role of effective human resource
management.
The field of human relations -- or industrial and personnel relations -- that emerged in the
1920s provided a new focus for the profession. In an effort to increase productivity,
personnel programs expanded to include medical aid and sick benefits, vaccinations,
holidays, housing allowances and other new benefits. New personnel roles emerged as
unions began challenging the fairness and validity of Taylor's scientific management
theories.
Although the study began as an effort to quantify the levels of lighting and other physical
conditions that would maximize employee productivity, Mayo and his researchers soon
found a much greater link between employee productivity and the level of attention
managers paid to employees and their behavior. The studies concluded that, in
motivating workers, human factors were often more important than physical conditions.
For the first time, productivity research put forth the controversial proposition that
workers' feelings were important. Mayo's work propelled further developments in HR
management.
The concept of employee motivation increased in importance in the 1940s. When World
War II ended the nation's economic drought and brought full production and full
employment to the industrial giants, labor was again in short supply. As men were called
to serve their country, shortages emerged, and women and teens were called on to keep
the engines of industry rolling. For the first time, people of color took jobs previously not
8
open to them. Expanded job growth also meant expanded roles for the personnel
manager -- recruiting, testing, training, mediating, and keeping an eye on employee
morale and production efficiency.
As the 1940s moved forward, Mayo's work and real-world business experiences
launched a greater understanding of the dynamics of work groups and the social needs
of employees. Business leaders began to appreciate the production that resulted when
managers acted less like taskmasters and more like good leaders, counselors and
facilitators. Non-monetary rewards became an important supplement to monetary
rewards for motivating employees. New theories on the benefits of improving the
relationships between management and employees abounded.
But many Americans awoke to harsh realities after World War II. Returning war veterans
were ill equipped to meet the technological demands of the new workplace. The federal
government responded with measures such as the GI Bill of Rights, which granted
university-level educational assistance to returning veterans and was instrumental in
developing new leaders and a powerful new workforce for the United States.
After the war, the country was also rocked by severe inflation and labor unrest. After
enduring wage freezes imposed during the war, unions sought to make up for the lost
time. Union membership had grown from about 6 percent when the NLRA was passed to
about 23 percent in 1947. Strikes became more frequent and union tactics in some
cases more militant. strong anti-union sentiment emerged and against this backdrop
Congress overrode President Truman's veto of the 1947 Labor-Management Relations
Act, better known as the Taft-Hartley Act. The new law banned the use of "closed
shops," which required workers to join the union to be hired, and placed government in
the role of mediating union and management disagreements. But as the turbulent 1940s
came to an end, a new turbulence was brewing in the Far East. Once again, the country
mobilized for war production with the outbreak of the Korean War.
After the Korean War, a new class of college-educated managers emerged with a
greater sense of social responsibility than their predecessors. Throughout the second
half of the 20th century, social well-being coupled with social upheaval -- best
exemplified by the struggle for desegregation -- changed the thinking of employees in
the United States.
As the 1960s and 1970s unfolded, a more personable group of managers emerged, and
their interests in people and feelings influenced all facets of business, including the
growth of market research, communications and public relations. This group of
managers emphasized the relationship between employers and employees, rather than
scientific management. Programs to increase wages and fringe benefits continued to be
developed. New studies linked greater productivity to management philosophies that
encouraged worker ideas and initiatives.
9
5
Rising role of HRM
The role of HRM has gain more important in the year 1980. There was a complete shift
from post war collectivism and towards individualism and changes in structure of
economy. Some people thought that HRM was evolved to solve union problem as there
is a demand to take care of employees of an organization as a whole it performs
different function.
During 1990, the success of large Japanese corporation in export market like
automobiles and electronic goods took surprise to many western companies but studies
say that the success of these Japanese firms is due to effective management of
workforce. The studies also show that the workforces of Japanese firms are more
productive and efficient than western firm. The key to success of Japanese companies
like Toyota, Matsushita are the practice adopted for efficient management of workforce.
As these companies started its operations in western countries, these practices of are
also implemented by western companies.
5
http://www.articlesbase.com/training-articles/evolution-of-human-resource-management-
1294285.html
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2.2 Sutras on HRM in Chanakya’s Arthashastra
6
Kautilya provides a systematic treatment of management of human resources as early
as 4th century B.C. in his treatise titled "Arthashastra". As it has been described in the
book, there prevailed logical procedures and principles in respect of labour organizations
such as Shreni or guild system and co-operative sector. The wages were paid strictly in
terms of quantity and quality of work turned out and punishment was imposed for
unnecessarily delay of work or spoiling it. The Government used to take active interest in
the operation of both public and private sector enterprises and provided well-enunciated
procedures to regulate employer-employee relationship. Kautilya provides an excellent
discussion on staffing and personnel management embracing job descriptions,
qualifications for jobs, selection procedure, executive development, incentive systems
(Sarasasaama- daana- bheda- danda- catura or Carrot and Stick approach) and
performance evaluation. We find several indications of prevalence of guild system
involving performance of work at the residence of the entrepreneurs themselves. In
course of time, the guild system was followed by cooperative sector consisting of
craftsmen and traders, and purporting to promote their professional interests. Indeed,
numerous professional societies were formed on these lines with their own systematic
procedures and policies to nurture their own interests. Again, there are several
indications regarding the operation of principles of the division of labour. The concept of
"Varnashram" or caste system was originally based on these principles. The individuals
who used to earn their livelihood by engaging themselves in activities such as teaching,
sacrifice or state management were designated as Brahmins while those specialising in
fighting were termed as Kshatriyas. Moreover, individuals engaged in the areas of trade,
business and agriculture were called Vaishyas and those devoting themselves in manual
work were known as Shudras. Later on, these professions emerged to be hereditary
which facilitated the transfer of skills and training from one generation to another
Numerous professions based on such specialised transfer of skills became hereditary
including goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers,
snake charmers, architects, sculptors, armourers which turned out to be separate
communities by themselves.
7
Some of the Sutras on HRM in Arthashastra
Chanakya has prescribed very clear tests for selecting ministers and also placing them
in proper department based on the results of test in Chapter VIII and Chapter XI of
Book 1.
2) Results of demotivation
6
http://recruitmentlink.in/topics/elaboration-on-the-evolution-of-human-resources-management
7
“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
11
The anger of employees and also of the society in general is the most to be feared,
because it is the worst anger that one can invoke or that happens to get generated when
actions are taken without a serious thought to their short and long term consequence.
agni-dahat api visistam vak-parusyam (Too harsh words are even more significant than
the burns from fire)
Scolding employee with very harsh word can be more harmful to the ego of the receiver
than monetary or corporal punishment.
6) Appraisal
12
2.3 Uniqueness of Chanakya
Chanakya, whose father had suffered injustice from the Nanda kings, knew the value of
ethical behaviour by the rulers for the happiness of their subjects, from his first hand
experience.
Neither following the ethical path nor performing one’s duties to others is a behavioural
pattern which is possible until the individual concerned has the money or the means –
resources – to fulfill the minimum needs of food, clothing and shelter.
10
prakti-kopah sarva-kopebhy gariyan (People’s anger is the greatest of all angers)
The anger of employees and also of the society in general is the most to be feared,
because it is the worst anger that one can invoke or that happens to get generated when
actions are taken without a serious thought to their short and long term consequence.
11
a-vinits-svami-labhat a-svami-labhah sreyan (Not having a chief is preferable to having
a chief without humility/morality)
People or the employees would prefer not having a chief to having an arrogant one
without scruples.
12
gaja-pada-yudhamiva balavad-vigrahah (A clash with stronger is like the fight between
elephant-mounted and on-foot warriors)
13
rajnyah prati-kalam na acaret (Do not act or behave in opposition to the chief)
14
na deva-caritam caret (Do not behave like the gods have behaved)
Chanakya has put a lot of emphasis on ethical behaviour be as a normal human being or
king or prince or minister
15
dharmena dharyate lokah (The world is supported / looked after through ethics)
8
“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
11
“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
14
“Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
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Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
13
16
dharmena jayati loan (He wins over the people through ethics)
17
atma-vinasam sucayati a-dharma-buddhih (wanting to be unethical indicates self-
destruction)
18
Kautilya is credited with destroying the Nanda (tyrant) rule and installing Chandragupta
Maurya (321-297 B.C.E.) on the throne. He wanted that the kingdom should be secure
and that the administration should go on smoothly, bringing happiness to the people. He
thought that there were two ways of ensuring the happiness of the people. Firstly,
Amatya Rakshasa had to be made Chandragupta’s minister; Secondly, a book must be
written, laying down how a king should conduct himself, how he should protect himself
and the kingdom from the enemies, how to ensure law and order, and so on.
16
Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
17
Canakya on Management” authored by Ashok Garde published by Jaico Publishing House
18
http://www.accessmylibrary.com/article-1G1-126387162/kautilya-scope-and-methodology.html
14
3. Objective
19
Indian (Asian) management in particular, are still focusing in applying western models
of management practices due to the wealth of western management literature and
concepts available. Besides, many of the new generation of Indian Managers have
received their education in management from western countries (Muniapan, 2005a).
There is also some fear among the Asian academics that the management philosophy,
concepts and ideas from Asia will not be able to get acceptance from the West.
This research will be an in-depth analysis of Chanakya’s Arthashastra and will explore
the HR element from the literature. In general, the study of Chanakya’s Arthashastra in
the context of modern management practices especially HRD is indeed limited. So this
research is aimed to explore HR Element from Chanakya’s Arthashastra and to create
awareness to readers of management on the existence of many ancient literatures from
India like the Arthashastra which provide many valuable lessons in efficient and effective
corporate management specifically HRM.
Further, the differences and similarities in Modern HRM and Chanakya’s Arthashastra
will be also analyzed.
19
Muniapan (2008) explored Kautilya’s Arthashastra and Perspective on Organizational
Management
15
5. Limitation of the Research
There are disputes about the period in which Chanakya was born and brought up and
developed.
Many myths prevail on Chanakya’s life. There is no clear data available to check validity
of these myths and stories. So this will not be the part of research
Since very limited research is done on Management aspect of Chanakya, data will have
to be collected and analyzed.
6. Hypothesis
How relevant is Arthashastra in today’s competitive business world, where the whole
gamut is from managing business to make productive use of the available human
resources?
It’s not just a quick fix solution but provides total value based management guidelines.
These value based guidelines provide a total framework of the philosophy of the
organization. Based on this philosophy of the organization and the leadership a
corporate culture is developed which defines the values that are supposed to guide the
behavior of the members of the organization and check instances of unethical behavior.
16
7. Terminology
AiVYza%aR A supervisor
Apcar To misbehave
ApcarNa Fraud
17
Avadana Good conduct, pure conduct
Aanauga`aihk Beneficial
Aayau> An officer
AavaoSainanaU A workman
]<araQyaxa A supervisor
gaaNaina@ya Accounts
18
ga`amaBaRtk A village servant
%aaDna Punishment
i%araojanapd A foreigner
inaYËya Compensation
ParaQya- Best
Pa`iNaVana Employment
Pa`idYT Assigned
Pa`%yaadoSa Communicating
19
Pa`Baava Power, Might
saMsqaa An establishment,
saM#yaayak An account
20
8. Chanakya’s identity
20
Chanakya is credited with advising Chandragupta during the conquest of the Nanda
and the defeat of the Greeks, and on the formation of a strong efficient government,
which allowed the Mauryan Empire to rule almost the entire subcontinent (except the
area south of present-day Karnataka), as well as substantial parts of present-day
Afghanistan. He is best known, however, for his work, Arthashastra, an encyclopedic
work on political economy and government, which he refers to as “the science of
punishment. Each of its fifteen sections deals with some aspect of government, such as
fiscal policies, coinage, commerce, welfare, forests, weights and measures, agriculture,
law, international relations, and military strategy. The central purpose of Chanakya's
doctrine was to achieve the prosperity of king and country, and to secure victory over
rival neighboring states.
Chanakya was a teacher at Takshasila monastery and was responsible for the creation
of Mauryan empire, the first of its kind on the Indian subcontinent.
21
He mixes the harsh pragmatism for which he is famed with compassion for the poor,
for slaves, and for women. He reveals the imagination of a romancer in imagining all
manner of scenarios which can hardly have been commonplace in real life.
22
“Arthashastra is a comprehensive work which deals not only with the political theories
and the actual organization of administrative machinery but also matters connected with
state and society, which could not form the subject matter of law, sociology and
economics. At first these subjects were treated in a section in the Dharma sutras and
later in Acharangesutras. The Arthashastra is the earliest extent work of this class, but it
contains references to a large number of treatises that were regarded as authoritative in.
20
http://www.newworldencyclopedia.org/entry/Chanakya
21
http://en.wikisource.org/wiki/Arthashastra
22
http://www.indianetzone.com/25/kautilya_s_arthasastra.htm
21
9. Collection of material
Chanakya has himself studied in-depth the earlier works by Maharshi Vyas’s
Mahabharata, Vedas, and Upnishadas. In Arthashastra, every where he has given
reference of work done by Bharadwaja, Visalaksha, Parasar, Pisuna and so on.
Based on the earlier work done by others, he had not only stated his own views but also
developed certain principles in such a manner that he has become an identity by
himself.
In the last century, a valuable work has been done on Kautilya by various authors like
R.P. Kangale and Shamasastri.
The omniscience work done by these two giants has inspired many more scholars who
have developed further research on various aspects of Arthashastra.
22
10. Analysis
But these traditional expressions are becoming less common for the theoretical
discipline. Sometimes even employee and industrial relations are confusingly listed as
synonyms,[4] although these normally refer to the relationship between management and
workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are
individuals with varying goals and needs, and as such should not be thought of as basic
business resources, such as trucks and filing cabinets. The field takes a positive view of
workers, assuming that virtually all wish to contribute to the enterprise productively, and
that the main obstacles to their endeavors are lack of knowledge, insufficient training,
and failures of process.
Synonyms such as personnel management are often used in a more restricted sense to
describe activities that are necessary in the recruiting of a workforce, providing its
members with payroll and benefits, and administrating their work-life needs. So if we
move to actual definitions, Torrington and Hall (1987) define personnel management as
being:
“a series of activities which: first enable working people and their employing
organisations to agree about the objectives and nature of their working relationship and,
secondly, ensures that the agreement is fulfilled" (p. 49).
23
http://en.wikipedia.org/wiki/Human_resource_management
23
The goal of human resource management is to help an organization to meet strategic
goals by attracting, and maintaining employees and also to manage them effectively.
The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between
the management of an organization's employees, and the overall strategic direction of
the company (Miller, 1989).
The basic premise of the academic theory of HRM is that humans are not machines;
therefore we need to have an interdisciplinary examination of people in the workplace.
Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies
and organizational psychology, industrial relations, sociology, and critical theories:
postmodernism, post-structuralism play a major role. Many colleges and universities
offer bachelor and master degrees in Human Resources Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich,
defines 4 fields for the HRM function:
• Strategic business partner
• Change management
• Employee champion
• Administration
However, many HR functions these days struggle to get beyond the roles of
administration and employee champion, and are seen rather as reactive as strategically
proactive partners for the top management. In addition, HR organizations also have the
difficulty in proving how their activities and processes add value to the company. Only in
the recent years HR scholars and HR professionals are focusing to develop models that
can measure if HR adds value.
Note that some people distinguish a difference between HRM (a major management
activity) and HRD (Human Resource Development, a profession). Those people might
include HRM in HRD, explaining that HRD includes the broader range of activities to
develop personnel inside organizations, including, eg, career development, training,
organization development, etc.
The HRM function and HRD profession have undergone tremendous change over the
past 20–30 years. Many years ago, large organizations looked to the "Personnel
Department," mostly to manage the paperwork around hiring and paying people. More
recently, organizations consider the "HR Department" as playing a major role in staffing,
training and helping to manage people so that people and the organization are
performing at maximum capability in a highly fulfilling manner.
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10.2 24HR in Chanakya’s Arthashastra
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L.N. Rangaraja; CHANAKYA The Arthashastra
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