EVOLUTION OF HUMAN RESOURCE MANAGEMENT

KULDEEP MATHUR M.B.A.JIWAJI UNIVERSITY GWALIOR

DEFINATION

Human resource management (HRM) is the management of various activities designed to enhance the effectiveness of an organisation’s workforce in achieving organisational goals.

STAGES IN EVOLUTION1. Human resource in pre-industrial era, Industrial revolution an

d the factory system2. Emergence of modern corporation and managerial capitalism3.

Scientific management, welfare work and industrial psychology

4. World war 1 and the emergence of HRM as a profession 5. The golden age of industrial relations and the personnel man

agement maintenance function, 1935-19706. Quality of work life era7.

The emergence of contemporary HRM function And Strategic focus era

8. The HRM function today

PERSONAL MANAGEMENT

According to the Institute of Management(U.K). “ Personal Management is an integral but distinctive part of management, concerned

with people at work and their relationships within the enterprise.”

Dimension HRM PM

1. Communication Direct Indirect

2.Team workHRM is invested in working

with people, team-building & team-work.

PM is invested in the ordinary way of administration of

personal policies and programs

3.Motivation HRM concentrates more on motivation ,morale-boosting

and job satisfaction

PM concentrate more on selection , recruitment &

appraisal of personal

4.Speed of decision Fast decision are taken by the HRM

Slow decisions are taken by the PM

5. Job design Team work Division of labour

Differences between HRM and PM

CONCLUSION By doing complete analysis of evolution of

HRM the conclusion is their will be modern trends will be occurring in HRM like strategic human resource management it is mandatory for every organization to treat all employees in a well manner because they are the assets of an organization which helps in achieving organization goal

Thank You

Stage 1- Human resource in pre-industrial era, Industrial revolution and the factory system

• 1400 A.D to 1700s.Absence of HRM function in organisations

• Shift from subsistence agriculture to a commercial based economy

• Spectacular growth of towns and villages along with middle class

• Industrial revolution• In UK- late 18 th century, USA 19 th century and in INDIA the second

half of 20 th century

• Replacement of human effort and skill by the work of machines

• Development of factory system• - displaced self employment household and handicraft• -rationalisation of work and division of work

• - necessity of supervision of large number of workers

• - personnel system practices became autocratic, based upon a commodity concept of labour

Stage 2-Emergence of modern corporation and managerial capitalism• From 1860 to the turn of the century

• Emergence of the modern HRM practice

• Transfer of employment from agriculture to industrial, from small scale to large scale.

• modern business enterprise along with capital management

• Separation of the operation from the ownership of firms and employment of salaried managers

Stage 3- SCIENTIFIC MANAGEMENT, WELFARE WORK, INDUSTRIAL PSYCHOLOGY.

• Scientific management- F.W. TAYLOR• - “the one best way” and the fastest time a worker could

perform a particular task.science, not the rule of thumb, harmony not discord,co-operation not individualism and ,maximum output, not restricted output

• Differential payment system • Taylor proposal for functional management called attention

to the need for a separate human resource function as a part of SM.

• Importance of proper selection procedures and training methods

• WELFARE WORK• Efforts made in the 19 th and early 20 th century To improve

the working condition of factory workers• More systematic approach to labour problems The averting

of industrial conflict and unionisation• The promotion of good management and worker relations

The efforts to increase worker productivity.

Stage 4-World war 1 and the emergence of HRM as a profession• Scientific personnel administration and

centralising• Personnel management department was

emerged• Labour turnover increased• Labour shortage, increased wages and

demand for employees for war production• In UK and USA firms established personnel

departments in between 1920 & 1950• Firms adopted functional management• Unsystematised HRM practices

Stage 5-The Golden age of industrial relations• In the period of great depression

• Increase the need for the practice of HRM as a result of growth in union and collective bargaining

PROVISION OF LEGISLATION From 1945 to 1970 the primary focus of the employment

relationship was on IR The passing of several acts in USA encouraged

unionisation.The pro-union legislation was followed by world war 2 which created an extraordinary demand for labour

GOLDEN AGE OF IR Between 1948 and 1958,The general focus of HRM was on

IR because the primary need of many organisation was to operate in the collective bargaining framework of labour relations

Firms had depreciated personnel department by the effect of depression

Govt. involvement in the economy during the war created a need for personnel department in all companies

Stage 6- QUALITY OF WORK LIFE ERA

• Began in 1960s and continued till 1970s.Rise in the view of the importance of HR as an assets, not liabilities

• Series of efforts directed as satisfying the interests of both employees and firms

• Policies and practices which maximised organisation performance and employee

Practices and programmes implemented• Job design and enrichment with career

planning and development,For improving the psychological quality of employees

• Create more committed employees through employee participation

Stage 7- THE EMERGENCE OF CONTEMPORARY HRM FUNCTION

FACTORS LEADING TO TRANSFORMATION OF HRM FUNCTION• Environmental changes occurred after world war 2• The shift from manufacturing employment to service sector employment

continued• Growth in international competition, domestic competition, deregulation,

globalisation and technological change Union avoidance policies• Dealing with employees directly as individual rather than on management-

union relations• Develop employees as assets by Increasing competitiveness of employees

to assist the organisation’s goals• Successful application of Total Quality Management• In the late 1970s there was a considerable change in image, status and

importance of HRM function in organisationsStrategic Focus Era• In 1970s business strategy was included in the MBA syllabus• Redesigning and restructuring of organisations.The old hierarchical type

structure with tight control have given way to flatter structure and larger span of control

• New structure focus on employee self control rather than old tradition of external control

• Need for sound human resource strategy to effectively manage the highly diverse work force

Stage 8-The HRM function today

• Integration of the traditional PM activities and as well as HRM’s involvement in overall organisational planning and change

• HRM today is characterised as a partner in organisational change, creator of organisational culture, and facilitator of organisational commitment

• The decentralisation of traditional HRM activities from personnel specialist to senior line management

• Focus on individual employee rather than on collective management-trade union relation

• Considering employee as the single most important organisational asset

• HRM has become a partner with other management functions

• HRM become increasingly responsible to cultivate the requisite culture that is conductive of required behaviours

Click icon to add pictureFunctions Of HRM