Evolution of HRM

Evolution of Human Resource Management

In early stages, employees working in factories were treated harsh condition with minimum wages or without wages in poor working condition. The government interferes on basic protection for labors/employees in factories by introducing statutory regulations.

It results in evolution of Human Resource department where factory owners agreed and the concern person looks into employee welfare and wages. Human Resource Management, in other words organization’s manpower or workforce management or personnel management. Before industrial revolution, the entire population was influenced on agriculture economy with minimum production level. Since production level is less compared to post revolution, manpower was minimum and communication among them also inadequate.

During industrial revolution, there was a change in economy, people acquires awareness on modernization. It determines a new way for industrial setup, where it concentrates on employee wages and welfare.

In this period, companies adopted new concept known as “merger and acquisition” for maximizing workforce and uses automated web-based HR systems.

As soon as the industry grows, an important incident occurred in industrial revolution i.e development in Labor Union. In order to manage labors and their issues in workplace and wages related, organization forms a separate function named Personnel Management department.

During 1980’s, new theories and strategies are implemented for change management, motivation and team building. Personnel Management department major responsibility is to resolve politics and diplomacy. So, this is the place where an industrial relation department raised.

Job enrichment concepts would be implemented in organization which is abundant skilled labor forces. Frederick W. Taylor formulated principles of scientific management which leads to evolution of scientific human resource management. It explains about,

  • Training for workers
  • Maintaining wage uniformity
  • Focus on better productivity

Hawthorne studies states about Hawthrone experiment, results on increase in worker’s productivity leads to worker’s efficiency through greater work satisfaction. Based on organization scope, Human resource role has been changed periodically as mentioned below,

  • Welfare officer – 1890 to 1913
  • Labor Manager – 1914 to 1939
  • Personnel Management – 1945 to 1979
  • Human Resource Management – 1980 to 1990’s

HR business partner and Human capital – Till now

In present situation, HR department focus on operation of personnel administration and concentrates on hiring right employees, training and developing workforce and performance management.

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