Page 31 - IC90 Human Resource Management

4. Developments affecting HRM

There were four main developments that made managements realise that

people could not he treated as mere means of production.

a) Governments actively intervened through legislations, laying down

minimum wages, overtime allowances, retirement benefits,

gratuities and other welfare measures, like job security, working

conditions, leave facilities, etc., to ensure that workers are not

exploited. Mechanisms were created for the redressal of grievances

and industrial disputes. Many judgements handed down by the

courts of law pointed to the necessity of treating employees with

dignity and respecting their rights.

b) Trade unions became very active to seek better prospects and

benefits for the workers.

c) Various studies like those of Elton Mayo (which have already been

referred in the earlier chapter) revealed the complex nature of

human beings who are influenced by social factors more than by