Important Points for IC 90 - Human Resource Management (HRM) Exam

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  • Max weber, in his book titled, The Theory of Social and Economic Organisation described a formal organisation as a Legal-Rational system based on precisely defined and organised across-the-board competencies of various offices and individuals. He called such a system a Bureacucracy.
  • The essential components of a formal bureaucratic organisation, as described by Weber, are: Division of labour, Hiearchy of positions, Uniformity of rules, Impersonality and Primacy of Merit.
  • The school of management thought which became famous under the name of Scientific Management, was developed by Frederick W.Taylor(1856-1915).
  • Taylors idea of scientific management was based on the following principles: Time and Motion studies should be the basis for comparing jobs to decide on wages and qualifications required for recruitment, replacing Rule of Thump methods, Workers should be given detailed instruction on how to do the work and also supervised closely to avoid waste of resources, Workers should be given proper training and helped to grow instead of leaving it to themselves to learn on their own.
  • Henri Fayol a French industrialist, put forward the first theory of general management which came to be known as the Administration Theory. In 1916, Fayol enumerated fourteen principles of management.

Human Resource Management (HRM)