EVOLUTION
OF HRM
Human Resource Management
Human Resource Management in its simplest definition means management of
organization’s manpower or workforce or human resources.
Evolution of HRM
The evolution of the concept of Human Resource Management is presented
below
Period before industrial revolution – The society was primarily an agriculture
economy with limited production. Number of specialized crafts was limited and
was usually carried out within a village or community with apprentices
assisting the master craftsmen. Communication channel were limited.
Period of industrial revolution (1750 to 1850) – Industrial
revolution marked the conversion of economy from agriculture based to industry
based. Modernization and increased means if communication gave way to
industrial setup. A department was set up to look into workers wages,
welfare and other related issues. This led to emergence of personnel management
with the major task as
- Worker’s wages
and salaries
- Worker’s record
maintenance
- Worker’s
housing facilities and health care
An important event in industrial revolution was growth of Labour Union
(1790) – The works working in the industries or factories were subjected
to long working hours and very less wages. With growing unrest , workers across
the world started protest and this led to the establishment of Labour
unions. To deal with labour issues at one end and management at the other
Personnel Management department had to be capable of politics and diplomacy
, thus the industrial relation department emerged.
Post Industrial revolution – The term Human resource Management saw a major
evolution after 1850. Various studies were released and many experiments were
conducted during this period which gave HRM altogether a new meaning and
importance.
A brief overview of major theories release during this period is
presented below
·
Frederick W. Taylor gave principles of scientific management (1857 o
1911) led to the evolution of scientific human resource management approach
which was involved in
- Worker’s
training
- Maintaining wage
uniformity
- Focus on
attaining better productivity.
·
Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger
(1927 to 1940). – Observations and findings of Hawthorne experiment shifted the
focus of Human resource from increasing worker’s productivity to increasing
worker’s efficiency through greater work satisfaction.
·
Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslow’s
Hierarchy of needs ( 1954) – These studies and observations led to the
transition from the administrative and passive Personnel Management approach
to a more dynamic Human Resource Management approach which
considered workers as a valuable resource.
As a result of these principles and studies , Human resource management
became increasingly line management function , linked to core business
operations. Some of the major activities of HR department are listed as-
1. Recruitment and
selection of skilled workforce.
2. Motivation and
employee benefits
3. Training and
development of workforce
4. Performance
related salaries and appraisals.
Strategic Human Resource Management Approach
With increase in technology and knowledge base industries and as a
result of global competition , Human Resource Management is assuming more
critical role today . Its major accomplishment is aligning individual goals and
objectives with corporate goals and objectives. Strategic HRM focuses on
actions that differentiate the organization from its competitors and aims to
make long term impact on the success of organization.