 Assalamu alaikum dear students, I am Muhtar Ahmad with Virtual University's course Human Resource Management and today we will be discussing about lecture number 6. I hope you are doing fine and you are learning something, so far we have covered 5 chapters and today we will be discussing chapter number 6. But as usual before starting next topics, we have to go back a bit just to discuss a summarize few things from chapter number 5. So, remember what did we cover in chapter number 5, let us see we started with the organization behavior in the basic philosophy and we cover the basic components the individual, the group and the effect of team within the organization. So, what did we see in the groups and when we discussed the individuals, what did we understand in that? Why individuals are important because they are the basic units of any organization or the unit. And when you can understand the group, so we started with individuals. And then we discuss about groups, and then we also covered why people join groups. So, why they join groups, what was the reason for this, what was the justification for security purpose, to take advantage of it, to have more say whatever you are saying, peer pressure was also there, yes and so on. And then we saw what were the teams, so you have to differentiate between a group and a team. So, how can you differentiate between team and group, yes team is that group where the members of that particular group are independent on each other, they depend on each other, no that is the problem solving team. Virtual team is basically where the members are not necessarily present at one place, they can sit at some other place and help each other, they can give performance to their team. So, what we covered after that, let us see that was how you can turn individuals into team. Do you remember a quotation we put in a slide that you can unite good people, but making them a team member is something very special, something very important. So, to make a team, we discussed three things, one was to select the right person, and number two was to train them, so that they should become the team members or the individuals and then attach them with incentive, with reward, so naturally that team will be effective or performance giving team. So, I think we are doing fine. So, let us see what we have to discuss today. Today you may have a boring subject, but this is also important, this is also necessary that we should also discuss this topic too. What was today's topic? History, yes. And what do we say about history? History, its story. Why do we listen to and read someone's story? So that we get to know how someone has achieved and achieved something. So that we can easily get ahead of it. So, today we will talk about history about what? Personal management and human resource management. These are the two words that we mix up and use when we are talking about human resource management. So, today we will cover the first topic, we will try to understand the concept of personal management. And then we will discuss few things about the history of personal management. I do not want to go into that much detail where we will discuss the year wise and everyone who has worked on it. But I will try to give you some idea of how this subject was developed. And then how personal management was shifted to human resource management. And what is the difference between these two? If there is, then what are the basis? So, let us start with the first topic, the personal management. Generally, we use personal management and human resource management in daily life. But technically, there is a little difference in approaches. Let us see what is personal management? In some books, it is defined as a study of how employers utilize, obtain, maintain what? Right persons, right number of people for the right job. Directly, about human resource, about personnel, the different activities of the employer, the study is called personal management. But as I said last time, its concept was different. Prior to mid 60s, this subject was known something different. Of course, they used the word personal management. But they were saying that it is a health and happiness career. Why they call it health and happiness career? Because in their mind, the concept of personal management developed at that time, some preliminary activities were called basic activities relating to human resource or personnel was the main function of those people who were involved in personal management. Nowadays, the human resource management, which we call as advanced, is very advanced level. We go to the strategic level and involve it. But at that time, it was just for basic routine work and basic routine activities of personnel. As I told you, way back till 60s, when personnel management was developing, they were doing some preliminary and primary activities that were very simple. Let's guess what they should have done. They did some activities of daily life that were directly related to human resource. Not official purpose, not kind of like today we are doing recruitment, hiring and these type of things. Some other activities, you see they were called happiness career, social activities type, like what? They were planning picnics, fun part. They had to go somewhere with their employees to organize parties for them. They had responsibilities like personnel department or personnel management. They were also responsible for scheduling locations. Who has to go on a holiday this time? Next month, who has to go on a holiday? And these type of activities are also kind of managed by personnel department. What else? They were also enrolling their worker, their employees for some kind of insurance. There were health care activities of the coverage. At that time, with the hospital. They had to be documented if they are sick. For that, they had to talk to some insurance. The other formalities like that, that was also responsible. Responsibility of our personnel department of that time. And they were also responsible for retirement parties. They retired. They transferred someone. For that, the parties that were arranged in aggression, that was also a job of that personnel department. So, what is the difference? Earlier in the second lecture, we touched on some basic functions. What are the functions of human resource management? We will try to do some things in future lectures. So, you see the difference? How this subject started? This department started? And how it was growing? Let's talk about history. History, again, as I said, it seemed to be some time people say it is a very boring subject. History subjects are always afraid that they will fall into it. Because they cannot retain all those numbers, figures, dates. And what sequence events are happening. But we will look at it in a different style. We will try to relate it with each other. And we will see how this shift came. How this personnel department, which was involved in just a few basic activities, was becoming so important in today's society, in today's aggression. This is not a new subject. Way back in the 1890s, it is also mentioned that in some departments, even at that time, in the late 18th century, in the 1890s, in the USA, we get some references that departments like this were also formed. And in the beginning, it was a different approach. As I said, they were not concerned about the development of people. They were mainly concerned about the basic management theories. If you have read them, I will suggest that you see the rule. I will not be able to discuss them in such detail, because that will be a different plan. Chapter will be opening a couple of different chapters. In the meantime, the basic scientific management theory and how they were thinking, as I discussed with you in some lectures in the beginning, they were treating people like commodities. They were not concerned about their welfare or their attitude, their behavior. They were mainly concerned about the numbers. How many machines do you have? How many cars do you have? How many cars do you have? How many people do you have? And the number of people. The people who could do something healthy, they were mainly concerned about those things. And the approach was totally different. Till the 1950s, 1960s, some things were changed. Why that change was there? Let's discuss at least one or two events, which shifted in. The one who brought the humanistic approach or the human relational approach to the concept was so many different things like when we will study the theory of Maslow, we will study the theory of Harakia of need. There is also a thing to explain that a person has different needs on different stages and in the same base, motivation develops. Similarly, a study was done which is a very famous study known as Hawthorne Studies and that was conducted at the western electric company of USA. The electric company did a study in which of course the people of academia were also included. They said let us see how we can increase work performance or productivity through different things. One of the things they tried to study was what is the difference in light intensity and what is the effect of productivity. And as normal research activities, they divided the group like control and then they have certain kind of intensity different. One basic thing was that without any change, they observed a person's productivity and then with some people, in some places they changed the light intensity and increased it. They tried to observe and see what the difference is in their productivity. So you know what happened? As the light intensity increased, productivity was increasing, very good result. Directly core relationship, you increase the light intensity and you can have more productivity. So they thought why don't we just start reducing the light intensity and let's see what is the result. Now logically the way we have increased productivity by increasing the light intensity. So logically what should have happened? By reducing the light intensity, their productivity would have decreased. But very strangely, they find out that as compared to control, even if you reduce the light intensity, their productivity was getting better. And this was kind of strange result. Now how do we justify it? It was very easy, if the light intensity increased, their productivity increased or the intensity decreased, their productivity would have decreased. So that was a very nice kind of results or a good research work came out. But now they got different kind of results. Now these results were strange. But they did not have the courage. They understood that something else is working here. And they continued doing certain kind of different kind of activities, research activities. They figured out what is going on. And it took more than 10 years. But they come up with very nice results. Which brought this person to a different kind of approach. And what were their findings? Their finding was, it is the human psychology that if they know somebody is watching them, somebody is observing them, somebody is giving them importance, they will try to be careful and they will perform extra and they will perform better. Doesn't matter if they were increasing the light or decreasing the light, that was one factor. But the other factor, the main factor which was affecting their performance was the basic human psychology. These things, the activities of that time, the findings and other research activities, the management thinking that humans are commodities can make a shift. And people started realizing, no, this commodity is very important. The human, they have the feelings. They got different attitude. They got different motivations. This thing, wake, history and the major shift, trend changed. And people started looking after the welfare and other relevant kind of activities for human being. And all this happened in the 50s and 60s. Because in the last one or two decades, the activities of the Hawthorne study and Rista, because of that, the shift came towards behavior sciences. Today it is called humanistic or human relations movement. It changed towards that. After that, in the 70s, when people got to know that we are important, they started coming towards unionism and groups. They started showing their importance. And there was different kind of legal problems, agnation were facing. So what did agnation start doing? They started focusing on the legislation, on the rule regulation, so that the better the regulations are in agnation, the better they can control. And they can settle issues outside the courts. And then, different kind of changes started taking place in the world. Technology will not start coming. Boundaries will start changing. Next to our topic, that is very important, what are the environment challenges? What are the new trends? We will discuss these things in that as well. But change was the buzz word. Things were changing very fast. So agnation was also responsive. And the more people were becoming important, as those new changes were taking place. And then, due to these changes, due to the competitive pressures, the concept of globalization, the new technologies, the concept of human resource management emerged, shifting from personnel to human resource management. Because in the beginning, as I told you, they were only concerned about numbers, but slowly, with the passage of time, with new findings, that shift was there. And today, what we saw in the 20th century, the main issue of the 20th century, was the quality of work life of the human resource, and the other activities, about what agnation should be done. So, agnation also changes as the time changes. And anyway, we always use this quotation, the change as the environment change. If you will not change, according to the changing environment, you will become history. Only you will remember, because you will not be in reality. So, let's look at history again. Let's look at some decades and look at the agnation. What were the primary concerns at that time? How much should go back? 50 years? 60 years? No, let's go at least one century back. And let's look at the main focus area at that time, what were the main concerns? Let's see before the 90s. What was the main concern of agnation before that? There were main concerns about producing more and more. There were main concerns about creating new kind of systems. What should be done to increase our production? How many people should be brought? How do you get the free labor, or how do you get the labor of the slaves? But the main concern was production. It should be produced in bulk. You will say, even today, it is the same. Ultimately, it is the same. You want to have more market share. But now, the method has changed, and the approach has changed. What happened next year? A little bit of agnation. About people, about workers, they thought about welfare. Should they get food? They should also think a little bit. But that was not the main focus, which we have right now. That was a bit different as compared to the one that was before the 90s, that even they were considered to be human beings. What happened in the 30s and 40s? That was the time when unionism was going on a big peak. And along with that, productivity was also becoming an issue. Because unionism, this is also a topic that we will discuss in the last, around 40 or 40, in which we will discuss the concept of unionism. What is the benefit and what is the loss? And with the arrival of unionism, productivity was also a concern. When people got together, they learned from mob psychology, certain issues were there for agnation. So, the main concern at that era was how to manage unions. How to make sure that your productivity is right. At least as much as the benchmark should have been. What was the main concern, our main focus of next decade? Economic security. At that time, it was that time when the situation was changing in the big world. The world war was over. The economic security was the main concern. Whatever you can resource, economic resources you can have, the more important that was the main concern. And then as we said at the beginning, during that time, there were a lot of studies and other activities. So, there was a new shift which was called human relations or humanistic approach which was thought for the benefit of the human part. So, that was in the 50s and 60s. And then in the 70s, we discussed earlier on the rule regulation, on the legal aspect, to save the agnation from the courts. That was the time and that was the main focus of that time of agnation that we have to make the rule regulations strong. And that was the main concern of those agnation. And in the 70s and 80s, till that time, the humanistic approach or human relations concept was getting very strong and agnation started feeling the importance of quality of work life. Now, what is this quality of work life? A good environment to work is a safe environment where stress is less and the chair you are sitting on, you know that it can break at any time. So, I think your concentration will be diverted. You might be listening to me and you might be paying attention. It can break at any time. And that is the reason that you can go around and see how much agnation and investing on the workplace where you have to work. Good furniture should be there. Good equipment should be there. Even people are concerned about the color that you take with you to any office where you have to work. That is also very important. Working changes the mood. You must have studied in different institutions. Nowadays, computer science, IT which has new labs and these requirements are coming. Now, let's see that in those labs, air condition is applied with good resources. Their furniture is good. Good equipment is there. Even you can spend more than that quality of work life. It's not just about the environment and there are so many other things too. How much agnations are concerned about their welfare. Stress-free which is called environment. That is very important. And that was the era where agnation started focusing on the quality of work life. And that is continued. Even today, compromise is not done on these things. It is fun to work in a good environment. And you have a little bit hostile environment. So then, naturally your productivity will be less. What happened after that? Let's see what was in the 90s. 90 was the time where new technologies were coming. People started differentiating. What is good and bad? What is good and bad? What is good and bad? And the procedures and the process they started to simplify slowly agnation was feeling that they have more employees than are required there. So the concept of downsizing and less environment of the agnation started to become a wider span of control. It created a lot of chaos in the agnations and need of a day. So agnation has to make a lot of adjustments. Where 10 people had to work they analyzed it again. New technology came and they figured out that 4 people are enough. Similarly, instead of typewriter computers came. So the 10 people who used to work as a worker that was enough. New equipment came. The concept of downsizing I always use the word right sizing. It is not downsizing. This doesn't mean that many people will be useless by coming to this new technology. In fact, when new technology comes new ways also come out. Would that depend how smart we are? If we are smart enough the same thing changed as environment changed we should quickly adjust ourselves. And with changing environment we should also prepare ourselves for a new place. Let's see what happened after that. In the era of 1992-2000 the main concern was productivity, efficiency. But the main concern was quality. The words you hear ISO 9000 and so on will become international standard in the future. And every organization's main concern came that unless we will produce quality thing we cannot survive. And then international pressure was also there. Your stakeholder was so smart that the buyer the user of your product or services they got so many different options. You won't make anything good they will take it from someone else. So international's main focus and concern was quality. And when we are talking about quality that's what I said in the previous lecture that forget about if you can do any kind of business in the market unless you produce quality stuff. Quality is an essential part now. Now what is quality? Last two lectures I have discussed it. Yes, I gave you an example of your pen. If you have taken that for the things you are doing and you are doing the consistency and you are performing more than you expected then you say that this is quality. So in the 90s and 2000 the main focus was quality. It was not by choice but at the same time it was pressure from different stakeholders the groups and even today still organization of focusing on quality things that is also basic consideration. But what is the main concern after 2000 I have kept the question here food for thought think what is the main concern of today's organizations lot of competitive pressure are as technology is changing very fast and fitness will survive that is the law of the jungle for that today's organizations main focus main concern we can have different options 2-3 kinds of points your choice will be different but yes the main concern are the same because of competitive pressure survival is the issue how to survive this is the main concern especially after 2005 when WTO when it will be implemented concept of free trade lot of competitive pressure will be there so that should be the main concern you have to survive with the changing environment with the competitive pressures where there are big joints you have to compete and again here the human resource are the personnel they are going to play the key role to create competitive pressure here our history topic ends although this is a huge subject there are many things to discuss but do read it but no need to memorize those things just get the feeling what happened let's see how the shift was done in HRM in different books about this subject they shifted from personnel management towards HRM the last period was divided in different areas based on the main focus we have just discussed a little bit different but the same theme the time of 40 or 50 when the actual shift was towards human relation this was the time where the main focus was mechanistic period mechanics manufacturing was the main concern the maximum industry was towards manufacturing and it was understood that the performance of human resource is like a machine it was thrown at the same level of the machine this was the time when we call it the time of personal or industrial relationship and here as Mr. Taylor the basic idea of scientific theory of management they say human is an asset but as a commodity it was a concept of commodity that philosophy then it shifted this was the time in the 60s and 70s you have just discussed what was the main concern that was about the legislation rule regulation was made this kind of rules were made so that maximum control was done and the maximum was taken from people in a formal way so that things are more and more organized and then basically what happened HR function was more complex it was that important because they were the rule maker they were designing the basic formalities how they would work how someone would come apart from that the main legislation focused on human relation see the shift in the personnel where the basic parties were made they cared for your health they cared for you kept your holidays records they were a few steps ahead they were moving towards relationship policies were made procedures were made that human relations or the human part of your organization came to their benefit that was that era and it was too much because it was the same era when there was unionism management was doing the negotiation at that time HR people involved them negotiated them and made policies in which they cared for their welfare then the 80s how to strengthen the organization how can we make the organization more and more strong that was the era what happened in this we discussed down sizing apart from that workplace work environment change why people were doing those things because they had to make the organization efficient and effective profit oriented what did you think that human relations were carrying those things HR department was more involved because now you are interested to have maximum output with minimum input down sizing restructuring what happened in the organization HR people their responsibility increased not only those who are working or who you are shifting towards for them what kind of career planning you have and also to create some kind of environment where the people who are already with you now working they should feel comfortable and they should also feel secure gradually the HR department started with a few things from the beginning the involvement of HR in decision making and the strategies what happened when this down sizing and the era of this organization restructuring it was a consistent changes continued changes technology was not coming priorities were changing policies were not being made so HR department was more and more involved with the management with other top organization people their involvement increased and their role also changed then was diversity that is also subject of next structure workplace diversity will start redesigning of organization concept will start to develop so diverse kind of people started to work together in that the HR department of the particular organizations were more and more involved to create a harmonic environment so that those diverse component of the organization should work together again for a specific purpose and organization HR people their work was shifted towards directive first they were facilitating they were supporting other department now their role towards directive to manage started to shift then was next period strategic period 90s what happened HR's important role in strategic planning looking at its importance started to come to the surface and as the organization was changing their expertise and change was kind of as I said earlier it was the buzz word of that era and when talking about change total quality management concept restructuring concept downsizing concept paperless organization concept all these things will be discussed in lecture number 7 because of this shift HR's activities started to grow and its true function which shifted it from personnel to HR its strategic function was more obvious started to come to the surface and they were kind of HR department started acting as strategic they started doing the strategic function but same time they started creating the policies more and more simple and more and more toward delegations of power and in today's time we call it as catalytic stage what do we call it it is a scientific term we call it as living coenzyme and it is chemical catalyst and its main function is to speed up the reaction it accelerates things so in today's time new trends are coming in the organization now HR is playing the catalyst role the main force behind all those changes and that is what is the emerging role today's HR department what is happening in that there are big mergers that big organizations are merging acquiring other organizations so that they can share resources and who is doing all these things who is the main force behind that the HR the human resource and within the organization doing all those type of activities similarly the concept of globalization we will discuss in chapter 7 the international exposure people are going beyond their boundaries the national boundaries are going out of business in this HR department is playing very vital role see the simplest the actions that were started by the parties the retirement parties how complex and the main strategic part of HR department will be involved that is how the personal department is shifted to human resource management or human resource department apart from that people are getting more selective now people have more options HR department again very much active in creating career development things deciding about the training and keeping in view of the future need do you remember I discussed with you what are the challenges of today's organization regarding HR and that was to attract people to develop them to keep them motivated and to retain them so from that again the working of HR the positioning there was a difference and the management increased and teamwork became more important rather than individualism now people are more toward teamwork and the more it is toward teamwork more this HR department is becoming important because who is instrumental here those policy making which are making policies are procedure for human part of your organization similarly HR serve as a HR your people who as a business consultant will start working policy making strategies formation they become important component of organization to wind up people have created three stages of HR development as much as we have discussed with different styles sometimes in the form of history sometimes in the form of concerns of the organization sometimes the name of different periods if we simplify it we can divide them into three phases what was the first stage in which their work only to keep records of young people to arrange their insurance or medical facility to party during retirement or even if we will discuss the initial stages of HR which shifted from basic personnel at that time their main function was record keeping but with the time it was changed to regulatory accountability to arrange services and that was stage number two where their facilities their monitoring their benefits pace packages training part and that was second layer second stage of shifting of HR development of HR such an important role reached this second stage and then the last third stage came that was competitive advantage stage how to use HR for competitive advantage strategic planning involvement HR manager became strategic manager for the organization because main strategy is depending now on people but what is the difference in personnel management and HRM and women logists use it in one place and in reality yes it is the same thing the difference it is not based on some kind of different substance it is the approach in personnel management it was just to facilitate certain activities of personnel related or human related in the organization but with the passage of time with the more toward human relations and giving the humanistic approach it has attained a position where now they are playing the strategic role basically not only facilitating not only creating policies and all those but they are also playing very vital role in the strategic formulation of the organization why today we are thinking that HR is playing strategic role because this is the only component of the organization through which you can create competitive advantage now people an organization have recognized it that if you want to create competitive advantage you have to depend on people the human being this is why its role its key important strategic level baby and that is the shift so difference approaches in the beginning record keeping facilitation fun part serious effort shift department area strategic role adopt now what is next yes but as I in beginning I said that history something sometime it is boring why it is boring when it is boring when you have to memorize it it is very interesting when you have to learn the lesson from it history we have to read history and today we have to try to read it learn something from it and see how things are shaped up in the world and how we have to move forward as usual before wind up we have to yes summarize what we have covered today we have discussed personal management history how it is shifted scientific management toward human relation and humanistic approach and then its strategic role and then we also try to understand how it was shifting from personal to HRM and personal management HRM management make a basic difference as such it is not a substance it is a different approach from the simplest form and now they have reached at the complex form a very important form of strategic role so I hope you have understood it we will go ahead but what is ahead what we are going to discuss in chapter number 7 yes very interesting subjects HRM in this changing environment and environment play a very important role in the decision making in the policy making and in response and when we talk about environment it is microbial it affects you immediately it affects everyone in a broader spectrum and then after that we will discuss about the new trends at workplace there is a lot of changes there if we compare today's organization of couple of decades back we will discuss them and I hope you will enjoy that but for that it is important that you have to read and after chapter 6 for chapter 7 you will have a good chapter in environment and trends whether you will read it or you will listen then you will enjoy environment is not like that you will have to make efforts you and I too so let's hope we see each other next time for chapter 7 you will be prepared and I will be prepared and we together will make the difference with this thought Allah Hafiz and Salam Alaikum