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International and Comparative HRM

Introduction to Human Resource

Daminda Geeganage
DipM(UK), MCIM(UK), MSLIM(SL), PgdEcon(Col), MEcon(Col), MIOD(SL), MCPM(SL

Introduction to Human Resource

Management has 3 Integral parts
Human Resources, it self
Organizations, where human
resource is used
Evolution of Human Resource

Human Resources

What is human Resource

Human Resource refer to the individuals or
personnel or workforce within an organization
responsible for performing the tasks given to
them for the purpose of achievement of
goals and objectives of the organization
William R. Tracey, inThe Human Resources
Glossary defines Human Resources as: "The
people that staff and operate an organization
as contrasted with the financial and
material resources of an organization."

Human Resources is also the

organizational function that deals
with the people and issues related to
people such as compensation,
hiring,performance management,
and training.
AHuman Resourceis a single person
or employee within your

Why it is a resource
In contrast to material and Finance resources,
Human are the driving forces of other two
resources for achieving of organizational
Behind the production of every product or
service there is human mind, effort and man
hours (working hours). no product or service
can be produced without help of human being.
Human being is the fundamental resource for
making or constructing anything.

Need of Human (Resources) in

Today many experts claim that machines and
technology are replacing human resource and
minimizing their role or effort.
But even machines and technology have
been build by the human aid and besides
companies have been continuously in search
for talented, skilled and qualified professionals
to further develop latest machines and
technology, which again have to be controlled
or used by humans to bring out products.

The Strategic direction of the organization is

design and defined by humans in the
organization(Corporate Management)
The Growth and Profits objectives are planned by
them & Implement, Monitor & control by them
thus achieve the objective on YoY
Action plans and adopting for external shocks
are done by experts in different departments of
the organizations (PESTEL & Competition)
Innovations are done by the experts in the
organization to achieve high profitability

What is Human Resource

Human Resource Managementis the
process of recruitment, selection of employee,
providing proper orientation and induction,
providing proper training and the developing
skills, assessment of employee (performance
of appraisal), providing proper compensation
and benefits, motivating, maintaining proper
relations with labor and with trade unions,
maintaining employees safety, welfare and
health by complying with labor laws of
concern state or country.

HRM is also a strategic and comprehensive

approach to managing people and the
workplacecultureand environment.
Diversity in cultures and its impact of the
organizations in managing HR is pivitol
Effective HRM enables employees to
contribute effectively and productively to
the overall company direction and the
accomplishment of the organization's goals
and objectives

Why name human resource

Human:refer to the skilled workforce in the
Resource:refer to limited availability or
Management:refer to maximize or proper
utilization and make best use of limited and
a scarce resource.


What is an organization
Organization is the foundation upon which the whole
structure of management is built in a business entity.
Organization is related with developing a frame work where
the total work is divided into manageable sections in order
to facilitate the achievement of objectives or goals.
Further it can be explained as a socialunitof people that
isstructuredand managed to meet aneedor to pursue
collectivegoals. All organizations have a management
structurethat determines the relationship between
differentactivitiesand themembers, and subdivides
andassignsroles,responsibilities, andauthorityto carry
out differenttasks.

What is an organization
Different scholars have defined organizations in different
According to Louis A. Allen, "Organization is the process
of identifying and grouping the work to be performed,
defining and delegating responsibility and authority, and
establishing relationship for the purpose of enabling
people to work most effectively together in
accomplishing objectives."
According to keith Davis, "Organization can be defined as
a group of individuals, large of small, that is cooperating
under the direction of executive leadership in
accomplishment of certain common object."

Objectives of Organizations
Irrespective of what business, that the
organization involves in, there are key main
objects that are in common to all of them.

Growth Horizontal and Vertical ,

Profits - Increase profits YoY
Value Creation Create value to shareholders
Sustainable Business With CSR

Key Characteristics / Features of

Outlining the Objectives:Key objectives of an
organization is the profitable manufacturing/creating services
and selling its products. Other objectives must be established
by the administration from time to time to aid and support
this main objectives.
Identifying Activities:After the objectives are selected,
the management has to identify total task involved and its
break-up closely related component activities that are to be
performed by, and individual or division or a department.
Assigning the Duties:When activities have been grouped
according to similarities and common purposes, they should
be organized by a particular department. Within the
department, the functional duties should be allotted to
particular individuals.

Defining and Granting the Authority:The authority

and responsibility should be well defined and should
correspond to each other. A close relationship between
authority and responsibility should be established.
Responsibility with out authority and vise versa shall not
drive organizations any where.
Creating Authority Relationship:After assigning the
duties and delegations of authority, establishing the
relationship is important. It involves deciding who will work
under whom, who will be his/her subordinates, what will be
his/her span of control and what will be his/her status in the
organization. Apart from that these formal relationships,
some informal organizations should also be developed.

Types of Organizations
Broadly there are few types of organizations that
are available in commercial sector
1. Manufacturing, Producing and Marketing
2. Trading Organizations
3. Service Providing Organizations

Banking Finance and Insurance

Hotels(City hotels and resorts)
Investment Trusts
Power and Energy
Information Technology

Land and property

Motor vehicle industry
Other diversified trading sectors



Beverage, food and tobacco

Chemicals and pharmaceuticals
Construction and Engineering
Manufacturing and Production

Forms of Business

Sole Proprietorship
Private Limited Companies
Public Limited Companies
Government Co operations
Public Private Partnerships
Representation/ Liaison Office
Joint Ventures
Multinational Co operations

History of Organizations in the World

1. Kongo Gumi
Found in 578 AD
The world's oldest continuously operating family business
ended its impressive in year 2006. Japanese temple builder
Kongo Gumi, in operation under the founders' descendants
since 578, succumbed to excess debt and an unfavorable
business climate in 2006.
Hoshi Ryokan
The Hoshi Ryokan is listed in the Guinness Book of World
Records as the oldest hotel still in operation (ryokan is
Japanese for traditional inn). Located in Japan's Ishikawa
Prefecture, the hotel began as a spa on an underground hot
spring which was built by the Hoshi family because,
according to legend, the god of Mount Hakusan ordered it.
Today, the Hoshi Ryokan has 100 rooms and can
accommodate 450 people. The hotel has been in business for
more than 1300 years, and operated by the same family for
forty-six generations.

3. Chateau de Goulaine
Founded: 1000
Located in Haute Goulaine, France, the Chateau de Goulaine is a
historical castle that is owned by the Goulaine family and open to the
public for weddings and other functions. It has a renowned museum
on its premises as well as a collection of rare butterflies. On most
days, hundreds of butterflies can be found flying freely to the delight
of visitors. The Chateau de Goulaine is also famous for its vineyards
and elegant wines.
4. Fonderia Pontificia Marinelli
Founded: 1000
This bell foundry was founded by the Marinelli family in Agnone, Italy,
a small town in the Appenine hills. The Fonderia Pontificia Marinelli
still uses traditional techniques to create its bells: they first make a
bell out of wax then overlay it with metal. Some of the company's
bells can be found in Jerusalem, New York, Beijing, Korea and some
places in South America. The foundry currently employs 20 people,
including five Marinelli family members, led by managing director
Pasquale Marinelli. There is also a museum beside the foundry that
showcases the sculptures of Ettore Marinelli, Pasquale's brother.

Few other Oldest Businesses in the


Organizational Behaviour (OB)

Organizational Behavior is an integral part of Human
Resources where it describe how human behavior in
an organizations.
Organizational behavior is a discipline concerned with
describing, understanding, predicting, and controlling
human behavior in an organizational environment.
Organizational Behaviour is particularly concerned
with group dynamics, how individuals relate to and
participate in groups, how leadership is exercised,
how organizations function, and how change is
effected in organizational settings.
Keith Davis defined Organizational Behavior is the
study and application of knowledge about how people
as individual or as groups act within organizations.

Elements of Organizational Behavior

People:People make up the internal social system in
the organization. They consist of individuals and
groups. Groups may be large or small, formal and
informal, official or unofficial. Human organization
changes every day. People are living, thinking and
feeling beings that created the organization and try to
achieve the objectives and goals.
Structure:Structure defines the formal relationship
and use of people in the organization. Different people
in an organization are given different roles and they
have certain relationship with others. Those people
have to be related in some structural way so that their
work can be effectively coordinated.

Technology:The technology imparts the physical

and economic conditions within which people work.
The nature of technology depends very much on
the nature of the organization, influences the work
or working conditions.
Social System:Social system provide external
environment within which organization operates. A
single organization can not exist alone. It is a part
of the whole. A single organization cannot give
everything and therefore, there are many other
organizations. All these organizations influence
each other.

Factors that influence Organizational

Behavior Internal Employees
Peoples perceptions are also differ when they see
an object. Perception on one for any object differs
from another one where two people shall interprets
what they sees according to his lifetime of
experience and accumulated value
Motivated behavior:
An employee has so many needs inside him. So,
they want to fulfill those needs. Thats why, they
have to perform well in the organization. Some
motivations are needed to enrich the quality of work

Mutual interest:
In order to develop the organization behavior mutually
of interest organizations and people is necessary.
Organizations need people and people in tern need
organizations. People satisfy their needs through
organization and organization accomplish their goal
through people.
In order to attract and retain valuable employees in an
era in which good workers are constantly required away,
ethical treatment is necessary. To succeed, organization
must treat employees in an ethical fashion. Every
Company is required to establish codes of ethics,
publicized statements of ethical values etc

Value of the person:

An employee wants to be treated separately
from other factor of production. Appreciation and
valuing the quality of work that they render
towards the organization shall create the synergy
Desire for involvement:
Every employee is actively seeking
opportunities at work to involve in decisionmaking problems. They hunger for the chance to
share what they know and to learn from the

Evolution of Human

Humans contribution for

organizations were in different forms
in the history of world
Salves up to 1800
Workers up to 1820s
Workers with wages and benefits
(early Personnel Management) 1810s
to 1900
New era of management 1900

Slaves, were used in the world since the
inception of early ages, medieval stage to
recent centuries till 1800s
Owners of the slaves got all the work done
by them with out any wages and those
human beings were treated in
unacceptable manner for mankind.
However the owners got best use of the
salves to get maximum productivity of their
production activities thereby supper profits.

Theplantation economiesof the New World were

built on slave labor.
Seventy percent of the enslaved people brought
to the new world were forced to producesugar,
the most labor-intensive crop.
The rest were employed harvestingcoffee,cotton,
andtobacco, and in some cases inmining.
The West Indian colonies of the European powers
were some of their most important possessions,
so they went to extremes to protect and retain

Banning of Slavery
In late 1700s world trend work against slavery
and many organizations started lobbying the
governments to impose laws against slavery.
Denmark, which had been active in the slave
trade, was the first country to ban the trade
through legislation in 1792, which took effect
in 1803.
Britain banned the slave trade in 1807,
imposing stiff fines for any slave found aboard
a British ship

1800 - 1820
In the beginning of 1800s, with lobbing of many
human right organizations, all powerful countries
had to abolish slavery
Slavery workers were given some amount of
freedom with some amount of adequate basic needs
such as food, cloths, rest (little more time to sleep)
Some industries stated practicing to give wages , so
that worker were given chance to select and buy
what they want
With in two decades also, almost all organizations
recognized workers instead slaves

1810 to 1900
Evolving of Personnel Management
Personnel Management came in
industries by 1810 -20 during the
rapid transformation period of use of
human in organizations
Robert Owen (1771-1858),social
and educational reformer,is
identified as father of Personnel
Management has done tremendous
work for workers in factories and
production organization thereby to all

TheRobert Owenhad raised the demand

forten-hour day in year 1810, and instituted it
in his New Lanark cotton mills. By 1817 he had
formulated the goal of the8-hour day and
coined slogan 8 hours labor, 8 hours recreation,
8 hours full rest.
The 8-hour day movement forms part of the
early history for the celebration of the Labor
Day, and the May Day in many nations and
Owen translated his ideas to the United States,
attempting to establish a Community of Equality
at New Harmony (1824-28) in Indiana. This was
followed by a fantastic and abortive scheme to
colonies part of the new Mexican republic on
communitarian principles.

New Lanark cotton mills. By 1817 Robert Owen

had formulated the goal of the8-hour day

Personnel Management -Robet

Personnel Management -Personnel
Management is thus basically an administrative
record-keeping function, at the operational level.
Personnel Management attempts to maintain fair
terms and conditions of employment, while at
the same time, efficiently managing personnel
activities for individual departments etc.
It is assumed that the outcomes from providing
justice and achieving efficiency in the
management of personnel activities will result
ultimately in achieving organizational success.

1900 onwards
New Era of Management
Organization got higher output as result of development of
technology and efficient use of man power
Organizations achieved higher profits and growth
Use of human became management of human for better
outputs during this era referred to as Personal Management
Organizations stated moving out from national boundaries
and multinational organizations started evolving
Human involvement in organization became a resource
Thus Personal Management transformed in to Human
Resource Management

1920 onwards
Human Resource Management.
Elton Mayowas born in Adelaide,
South Australia on 26 December 1880
and died in Guildford, Surrey on
1 September 1949, was known as the father of
Human Resource Management.
Mayo went on to his most famous experiments - those
at the Hawthorne Works of the General Electric
Company in Chicago between 1924 and 1927.
He undertook further experimentation to find out
what effect fatigue and monotony had on job
productivity and how to control them through varying
rest breaks, work hours, temperature and humidity

Mayo carried out a number of investigations to look at

ways of improving productivity, for example changing
lighting conditions in the workplace. What he found
however was that work satisfaction depended to a
large extent on the informal social pattern of the work
group. Where norms of cooperation and higher output
were established because of a feeling of importance,
physical conditions or financial incentives had little
motivational value. People will form work groups and
this can be used by management to benefit the
Mayo identified that people's work performance is
dependent on both social issues and job content. He
suggested a tension between workers' 'logic of
sentiment' and managers' 'logic of cost and
efficiency' which could lead to conflict within

Summary of Mayo's Beliefs:

Individual workers cannot be treated in
isolation, but must be seen as members of a
Monetary incentives and good working
conditions are less important to the individual
than the need to belong to a group.
Informal or unofficial groups formed at work
have a strong influence on the behavior of those
workers in a group.
Managers must be aware of these 'social needs'
and cater for them to ensure that employees
collaborate with the official organization rather
than work against it.

Human Resource
Human resource management is concerned with
the development and implementation of people
strategies, which are integrated with corporate
strategies, and ensures that the culture, values
and structure of the organization, and the quality,
motivation and commitment of its members
contribute fully to the achievement of its goals.
Human resource management is a collective
approach to the different functions of the

HRM is concerned with carrying out the SAME

functional activities traditionally performed by
the personnel function, such as HR planning,
job analysis, recruitment and selection,
employee relations, performance management,
employee appraisals, compensation
management, training and development etc.
But, the HRM approach performs these
functions in a qualitatively DISTINCT way, when
compared with Personnel Management.

Organizations started recognizing skills and

ability of workers and rewarded them to get
the optimum outputs
Evolving of different functions of organizations
and all that were skillful staff/human took
responsibilities of developing such
Production, Marketing , Finance,
Administration, and Human Resource
Departments were established in organizations

HRM Vs Personnel Management

Human resource management has changed a lot in
the past 100 years.
Previously, HRM was called personnel administration
or personnel management, that is, it had to do with
the staff or workers of an organization.
It was mainly concerned with the administrative
tasks that have to do with organizing or managing an
organization, such as record keeping and dealing
with employee wages, salaries andbenefits.
The personnel officer (the person in charge of
personnel management) also dealt with labor
relations, such as problems withtrade unions or
difficulties between employers (those who employ
workers) and their employees.

Main Differences between Personnel

Management and HRM
HRM has a long history of growing from a
simple welfare and maintenance function to
that of a board level activity of the
In recent years, the focus on people
management from human capital/intellectual
capital perspective is also shaping firmly.
However, the hard fact is that this growth can
be generally witnessed in management
literature and rarely in practice.

Peripheral observation of people management in

organization can mislead the observers since, hardly
there could be any organization that is yet to
rename its old fashioned title of industrial
department into HRM department.
But, in practice, these organizations continue to
handle the people management activities the way
they had been handling earlier. The reasons for this
could be many and varied. Among them, the
potential reason is lack of clear understanding about
the differences between personnel/IR and HRM.

Evolving of human activity in work

Theories of
place -> Industrial

Evolution of
1840 - 1900
Human Resource
Management in
Wealth of
Nation in
1900 onwards->
achieving outputs and
Revolution 1
economies of scale
1760 -1840
t evolve in
Started labor1820s
laws 8 hr per
day after
Slavery of
Human up
to 1800

Industrial Revolution - 1
TheIndustrial Revolutionwas the transition to
new manufacturing processes in the period from
about 1760 to sometime between 1820 and 1840.
This transition included going from hand
production methods to machines, new chemical
manufacturing and iron production processes,
improved efficiency ofwater power, the increasing
use ofsteam power, and the development
ofmachine tools.
It also included the change from wood and other

Industrial Revolution - 11
Steelis often cited as the first of several new areas for
industrial mass-production, which are said to
characterize a "Second Industrial Revolution",
beginning around 1850, although a method for mass
manufacture ofsteelwas not invented until the 1860s,
whenSir Henry Bessemerinvented a new furnace
which could convert moltenpig ironinto steel in large
However, it only became widely available in the 1870s
after the process was modified to produce more
uniform quality.Bessemer steel was being displaced by
theopen hearth furnacenear the end of the 19th

This second Industrial Revolution gradually grew to

include chemicals, mainly thechemical
industries,petroleum(refining and distribution),
and, in the 20th century, theautomotive industries,
and was marked by a transition of technological
leadership from Britain to the United States and
A new revolution began with electricity
andelectrificationin theelectrical industries. The
introduction ofhydroelectric power generation in
theAlpsenabled the rapid industrialization of coaldeprived northern Italy, beginning in the 1890s.

Adams Smiths Wealth

of Nation in 1776

Adam Smith(17231790) is popularly seen as

the father of modern political economy. His
1776 publicationAn Inquiry Into the Nature
and Causes of the Wealth of Nationshappened
to coincide not only with theAmerican
Revolution, shortly before the Europe-wide
upheavals of theFrench Revolution, but also
the dawn of a newindustrial revolutionthat
allowed more wealth to be created on a larger
scale than ever before

Increase of output in the

world after 1700s

Evolution of HRM has resulted with many
changes in the world such as recognizing value
of humans, industrializations, innovations and
technological developments
After 1920s , with introduction of HRM by
Mayo, many scholars came out with different
theories for HRM, resulted development of the
recognition of Human at work as un
compromise resource that would change the
directions of the organizations to achieve its

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