SHRM points out that, "Tomorrow's HR leaders will need to be bigger, broader thinkers, and they'll have to be tech-savvy and nimble enough to deal with an increasingly agile and restless workforce. Leaders who understand HR's enormous value in the workplace will have a unique, big picture view from both the company perspective and employee perspective.
The 19th century "industrial betterment" is light years away from HR's future opportunities to form a highly satisfied, productive and happy workforce. In other words, the future of human resource management puts emphasis on humans; less so on humans as a resource. See the bottom-line benefit of a motivated team, and learn how to create and sustain a successful employee experience by downloading our ebook, Improve Retention and Engagement by Enhancing the Employee Experience.
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Up to , the Human Resource Management had taken a definite form. Staff line organization became the basis of Human Resource Management. The opposition of scientific management movement by workers introduced the need of industrial psychology.
Industrial psychologists developed many new techniques like psychological testing, interviewing, workers training and non-financial incentives. They helped to give a professional form to Human Resource Management. When Prof. Elton Mayo and his companions conducted Hawthorn experiments, it was the beginning of recognition of the fact that human resources have greater influence on production than other psychical resources.
A worker must be treated as a human being. His social, psychological and moral instincts should be fully recognized by the management. Due to these experiments the commodity concept of labour changed to social concept. The decade of was very important for the development of Human Resource Management. During that decade, many new techniques were developed for the selection, training and induction of workers.
The human resource philosophy became people-oriented. Trade unions flourished and provision of fringe benefits for the workers became common. The history of Human Resource Management since up to current times is the age of modern developments. It is the period of the citizenship concept of labour where the workers have full right to be consulted in determining the rules and regulations under which they work.
The concept of industrial democracy has imposed many new responsibilities upon the human resource managers of industrial houses. In modern times, Human Resource Management is widely accepted as an independent discipline. One finds two important developments during this period, after , the Human Resource Management began to be realized as a behavioural science which centred completely on human elements with the study of organizational behaviour as its main crux.
In modern times, Human Resource Management is fully recognized as a profession dealing with the management of human resources. These developments widened the scope of Human Resource Management. Especially, the HRM growth was particularly marked in the inter-war era. It has branched out specifically along the domains of applied psychology and sociology. While the former has proceeded as the behavioural science movement.
Following stages explain the process involved for reaching to the current HRM stage:. Formal beginnings of HRM may have emerged from industrial disputes and conflicts. An enquiry on determining reasons for industrial disputes and conflicts gave light to several problems related to living and working conditions of employees across industries. This enquiry highlighted limitations of businesses that perceived human resources as machines for obtaining increased productivity and more profits at lower costs.
Workers worked long hours in strenuous working conditions that led to the formation of trade unions. When labour welfare issues were provided legal assurances, organisations began focusing on behaviour of employees at all levels at an individual, group and overall organisational basis.
HRM aims at maximising employee performance in accordance to the objectives set by an organisation. HRM is a result of increasing organisational size, changing social and cultural norms, easy access to information via technology and globalisation. Accordingly, it attempts to build worker-employees relationship more humanely through motivation, training and development, retention, worker protection, etc.
Also, under HRM, HR managers need to obtain and incorporate knowledge about possible changes that may affect the overall organisation. The concept of human resource management has emerged from the personnel management. The term personnel management has emerged in after the World War. During this stage, the personnel managers distinguished themselves from other managerial functions, and personnel function being declared as a separate managerial function. The concept of HRM has evolved through various stages of Industrial revolution, trade union, scientific management, Behavioural science and human relations.
HRM is the most appropriate name to deal with human resource, as it highlights the significance of the human beings working in an organisation. The evolution of HRM has evolved through the stage of the industrial revolution in the 18th century to the modern times:.
The momentum for the industrial revolution started in 17 th century. Technical advances and improved agriculture methods resulted into mass production of goods. The advancement in technology initiated the need for skilled and trained labour and improved work methods for producing goods on large scale. Hence, this period witnessed rapid technological improvement and led to the beginning of the industrial revolution. However, this approach failed to benefit the employees, as the government failed to protect the interest of employees.
In , Charles Babbage further elaborated the concept of division of labour in his work, and explained the advantages of division of labour. Trade union is a group or an organisation of workers formed to achieve common goals. These trade union organisations may compose of workers, professionals, or unemployed workers. The working class also formed general union of all workers irrespective of the trade and industry.
The basic purpose of the trade union is to bargain with employers on behalf of its members for better ways. Working conditions grievance redressal, rules governing hiring and promotion, workers benefits i. Trade unions become very popular in many countries during Industrial Revolution.
Trade unions are in the current scenario still an influential force to protect the social and economic development of its members in many countries around the world. Taylor is regarded as father of scientific management and a great leader of the efficiency movement. He advocated the principles of scientific management to improve industrial efficiency.
This principle stresses on the fact that workers should be capable of understanding the task they were doing. The concept of scientific management advocated the payment of wages should be linked to productivity.
The principles of scientific management have been challenged and criticised by trade unions, as well as social intellectuals. Industrial Psychology is also known as I-O psychology industrial organisational psychology work and organisational psychology occupational psychology and personnel psychology.
It applies psychology to industrial organisations and the work place. It attempts to achieve organisations goals by improving the performance and welfare of its employees. Human resource approach explored management from a social as well as psychological view.
Advocates of this approach are concerned with welfare of the employees, and treat them as people. It would make the worker more satisfied and productive. So these theorist advocated the need for scientific study of human relations aspect of organisation. Human Relations movement gained momentum as a result of contributions of management thinkers like Elton Mayo, Mary Parker Follet and Hawthrone Experiments.
This movement identified and encouraged the human relation factors which help improve the quantum of production and the level of satisfaction of employees. Mayo is known as father of Human Relations movement. This movement considered that organisation is not only a formal system but also a social system and principles of human relations and behavioural sciences can be successfully applied in it to achieve the organisations objectives.
Human relations approach realised the significance of informal human relations in management. HRM evolved over a period of years from the era of industrial revolution. The evolution of HRM dates back to 18 th century and the concept is very old in nature involving the management of human beings.
There were many phases of people management before reaching the current scenario as researched by many authors. A brief outline of the various stages of development of HRM stated below:. Workers were forced to indulge in monotonous and repetitive work activities.
Workers were treated earlier as machines and not as resources. The industrial revolution witnessed ill treatment and exploitation of workers. Workers joined together to form trade unions to protect their interests.
The movement started within the era of industrial revolution as there were common worker demands. The origin of Trade unions can be traced back to 18th century in Europe and later it spread to many other parts of the world. Scientific management was propounded by Frederick Winslow Taylor in It aimed to standardize workflows and improve labour productivity through reduction of effort Human factor at work was given more importance and procedures were simplified by time and motion studies.
The concepts of scientific management led to an awareness of improving procedures and productivity through work simplification.
In early s the famous research by Elton Mayo et. It revealed the impact of social factors, informal groups, motivation and employee satisfaction on productivity. This was the beginning of behavioural approaches and soft skill training to employees. The modern concept of HRM sprouted from such movements.
Other contemporary researchers like Abraham Maslow, David McClelland, Max Weber and others propounded different concepts on organizational behaviour and developed organizational theory. Motivation, leadership, workforce productivity and similar theoretical areas propped up and gained significance. The field of industrial and labour relations started getting importance in many industries as there were strained labour relationships.
Legal framework was developed to protect the interest of labour and amicably settle any industrial disputes. HR rooted itself strongly in the theoretical background of earlier researches backed by support from industrialists and professional associations. The personnel manager had the authority to negotiate deals about pay and other collective issues.
In the 's employment legislation increased and the personnel function took the role of the specialist advisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals. Flexibility and Diversity In the 's a major trend emerged where employers were seeking increasing flexible arrangements in the hours worked by employees due to an increase in number of part-time and temporary contracts and the invention of distance working.
The workforce and patterns of work are becoming diverse in which traditional recruitment practices are useless. This created new jobs in e-commerce while jobs were lost in traditional areas like shops.
This meant an increased potential for employees to work from home. Organizations need to think strategically about the issues these developments raise. HRM managers role will change as changes occur. IT helps HR managers offload routine tasks which will give them more time in solving complex tasks. IT also ensures that a greater amount of information is available to make decisions. Search this site. Facts It's believed that the first personnel management department began at the National Cash Register Co.
Patterson organized a personnel department to handle grievances, discharges, and safety, as well as training for supervisors on new laws and practices In the post-hire phase, the organization develops HRM practices for effectively managing people once they have "come through the door.
Recruitment and Selection It all started when Mary Wood was asked to start engaging girls during the 1st world war. Acquisition of other Personnel Activities During the 2nd world war the focus was on recruitment and selection and later on training; improving morale and motivation ; discipline; health and safety ; joint consultation and wage policies. Industrial Relations Consultation between management and the workforce spread during the war.
Legislation In the 's employment legislation increased and the personnel function took the role of the specialist advisor ensuring that managers do not violate the law and that cases did not end up in industrial tribunals.
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