Evolution of Human Resource Management

 during war time was small that to implement the rules
EVOLUTION OF HUMAN RESOURCEdemanded to produce large scale goods but it was
MANAGEMENTnot focusing on other aspect of managing human
ABSTRACTresource that is by motivation, promotion, increasing
In the competitive environment of open economymorale, performance appraisal etc but the role of
human resource management with the increasednegotiation of union has gain important role.  
modern trends becoming significant factor for the              But there is an increasing in
efficient running of organization  Human resourcethe bargaining between employer and unions during
management emerged from personnel managementpre world war. During there is an enormous growth in
and personnel management emerged from manpoweran engineering industry but in 1950,s and 60,s there
planning. The consideration of changes taking place inwas an enormous growth in other type of industry
managing human resource led to adaptation ofwhich leads to the increasing the role of personnel
strategic HRM the consideration of strategy and HRMmanagement at same time large companies wanted
system jointly led to the emergence of strategicto develop their own employment policies which suites
human resource management SHRM which is crucialto their company which leads to improve emerging
for achieving a corporation’s long term goal. Thisnew aspect in personnel management.
article attempts to bring the historical evolution of HRM              The bargaining power of
and changing roles of HR professional  from time tounions has increases which resulted in unnecessary
time in order to considered employees as an importantofficial and unofficial strikes which were damaging the
assets which helps in attaining goals of theeconomy particularly manufacturing industry in UK the
organization. The article finally draws attention to thestrikes were in huge number and it became famous in
fact that SHRM and not PM or HRM are peoplemaintain poor industrial relation and the number of
considered for modern industrialization that is to beworking days lost due to strike which resulted in closer
used for creating and sustaining competitiveof number of factories. The situation becoming worse
advantage for the firm.and worse it was critical for both employers and
INTRODUCTIONunions due to this reason personnel manager was
American writers Terrey and Franklin (1996) mentionedblaming for lacking of negotiation skill to resolve these
about the 6 Ms of management, viz.  Men andsituation and plan for industrial relationship strategies
women, material, money, market and method. Butbecause of these deficiencies personnel management
among these, men and women - the only living being-was not given high priority these leads to management
do the effective coordination and utilization of theseto think something higher profile which have all the skill
human and non-human resources. All the activities ofto negotiate to motivate.
any enterprise are initiated and                              In
 the year mid of 1960’s organization started giving
             Human resource gained moremuch importance to employ the personnel specialist to
attention as the workforce considered to be anperform different activities in order to make the
important resource to gain competitive advantage ofemployees as a whole package to perform in the
organization and also it helpful in utilizing the resourcesorganization. the world is becoming global village and
of an organization to a optimum extent in order tolabour started moving from one country to another this
achieve organizational goal.resulted in managing the workforce diversity this
 become the challenge for the personnel management
             Managing human resource is anto manage these workforce diversity.
complex process. As Harzing and Ruysseveldt said a                           In the
better way to understand the philosophy of humanyear 1960 Even the domestic rules and regulation was
resource management demands a thoroughincreased towards employability the new legislation
understanding about the evolution of the concept itselfwas introduced towards employment, training, and
from the ancestral concept personnel management. Inredundancy payments, equal pay opportunities,
1990 due to liberalized government policies of variousemployment protection. The year 1960 was high
countries the human resource started floating frominflation so there was a regulation on wages paid by
one country to another this led to diversification ofthe employer personnel manager has to understand
workforce and cross culture took place as a resultthis new aspect of regulation regarding inflation to
employees from one nation migrating to another nationdevelop policies to implement new measures which
and bringing their culture with them this led to mixedaligned with employee’s satisfaction level.
organization culture so the HR professional has to play                        
major role in coordinating the workforce of differentImprovement in selection training appraisal and new
culture in an organization.management techniques has been expanded to
 improve the performance of the employees which
                  Approaches towardsdemands to improve the profile of personnel
recruitment of staff focused to geocentric frommanagement.
ethnocentric and polycentric which is more efficientPersonnel management perform different function
because workforce will be selected based on talentsuch as
regardless of nationality. Method of recruiting also- Collective bargaining role
changed towards efficient policies like using of head- Implementation of legislation role
hunters, cross national advertising, E- recruitment.- Bureaucratic role
 - Social conscience of the business role
EVOLUTION OF PERSONNEL MANAGEMETN- Growing performance improvement role
 RISING ROLE OF HRM
                                             The role of
      Evolution of Personnel management startedHRM has gain more important in the year 1980. There
in 19th century at that time there was a boom inwas a complete shift from post war collectivism and
industrialization which leads to increase in franchisingtowards individualism and changes in structure of
and influence of trade unions and harshness ofeconomy. Some people thought that HRM was
industrial condition called for the better of industrialevolved to solve union problem as there is an demand
condition. There was no department as such for takingto take care of employees of an organization as a
care of above problem only welfare officers camewhole it performs different function.
into being to take care of above situation. These                     During 1990,s the
welfare officers were only women’s who takesuccess of large Japanese corporation in export
care of protectionism of women and girls becausemarket like automobiles and electronic goods took
they feel it as worthy if women employee are sicksurprise to many western companies but studies says
they visit their home give food accommodation givethat the success of these Japanese firm is due to
moral welfare. As the role of women increasing likeeffective management of workforce the studies also
they were getting employed in modern industriesshows that the workforce of Japanese firm are more
where their work is packing assembly or other routineproductive and efficient than western firm. The key to
job so the quality required by these women employeesuccess of Japanese companies like Toyota
increased so these welfare officer who were womenMatsushita are the practice adopted for efficient
their responsibility also increased that is to recruitmentmanagement of workforce as these companies
training development.started opening its manufacturing plant in western
 countries the practice of these companies also started
           But ambiguity has been increasedpracticed by western companies. The practice include
due to increased in production and also increased inare:
paternalistic behavior relationship between employer- Strict and rigorous selection and recruitment
and employee and also aiming at moral protection of- High level of training, especially induction training and
women and girls and also side by side the aim ofon the job training
achieving economies of scale is also increased like- Team working
achieving higher output by minimizing cost by resolving- Multitasking
grievances control of sickness these leads to mixed- Better management-worker communications
aim of achieving organizational objective in order to- Use of quality circles and an emphasis on right first
achieve but at that time their was only a handful oftime quality
welfare officer was their they wanted to improve the- Encouragement of employee suggestions and
condition of working of women in 1900 there wereinnovation
only few welfare officer was their but in 1913 number- Single status symbols such as common canteens
of welfare officer has been increased to take care ofand corporate uniforms
the situation.                 The reason of above
 practice is create an organization atmosphere where
 GROWTH IN PERSONNEL MANAGEMENTworkers can grow and identify their own success and
1914-39goal which match with organization.
  
         The exact growth of personnelManagement practice
management started during First World War becauseControl
the number of munitions manufactured at a large scaleCommitment
so the number of employees needed to manufactureJob design
increased on the other hand the welfare officer alsoFocused on the individual
increased by 1300 to take care of employees it alsoFocused on the team
sought the supply of labor to munitions factories as thePerformance management
supply of welfare officer made mandatory byMeasured standards for minimum performance
government.Higher “stretch” objectives
 Management structure
                During war womenTop down and hierarchical. Emphasis on management
recruited at a large scale to fill the gap of men whosymbols
left the factories to joint war which in turn leads toFlat organisation structure. Minimum status differentials
dispute labour union to employ unskilled womenCompensation
          Individual pay linked to job evaluation
               The title labour manager orPay linked to skills and mastery
employment manager came in the yeat 1920 inEmployment
engineering industry and other industries where theEmployees viewed as variable cost
factories was very huge to handle absence,Assurances that participation will not result in job
recruitment, queries over business and so on.losses
 Employee voice
                  Companies startedEmployee input allowed on a narrow agenda.
merger and acquisition as strategy to grow in the midEmployee participation enacted on a wide range of
of 19th century due to large number of employeesissues
employed they created their own specialist personnelLabour management relations
department to unify the different policies and manageAdversarial labour relations
absence and recruitment with the objective ofMutuality with joint planning and problem solving
improving productivity. But this department is mainly 
concerned with hourly paid workers. As personnel                         Figure 1
management exist only in the emerging companies like        Walton’s control to commitment
plastic, chemicals and multiple retail. But during       (Source adopted from Walton 1985)
1930’s the economy started to grow at a rapid 
pace due to this big corporation came in to existenceRISE OF STRATEGIC HUMAN RESOURCE
they feel to improve the value of employee benefitsMANAGEMENT
like different kinds of allowances as a measure ofStrategic human resource management is a branch of
retaining motivating employee.human resource management. SHRM means
 SECOND WORLD WAR LEADS TOcombination of strategy and HRM. It also refers to
IMPROVEMENT IN PERSONNEL MANAGEMENT.linking of human resources with strategic goals and
Second world war increased the importance of havingobjectives to achieve goals of an organization it also
personnel department because of producing large warhelps in improving the performance of innovation
materials the ministry of labour and national servicesflexibility and competitive advantage. In an organization
insisted to combine both personnel department andSHRM means accepting and involving the HR function
welfare officer work on a full time basis. Again inas a strategic partner in the formulation and
second world war the number of women employeesimplementation of the company’s strategies
is more to fill the gap left by men who join the battlethrough HR activities.
field again re-training proper recruitment taken placeFEATURES OF STRATEGIC HUMAN RESOURCE
government saw the there is a huge neeed to haveMANAGEMENT
personnel department to take care of all employees in- Linkage of HR policy with organizational strategy in
well manner.  order to achieve organizational goals and objective
INDUSTRIAL REVOLUTION ERA- Linkage of individual HR intervention so that they are
               As the industrial revolutionmutually supportive.
take place simultaneously the factory system came inREASON FOR STRATEGIC HUMAN RESOUCE
to being that leads increase in working rules andMANAGEMENT
regulation to large number to employees increase in- Globalization and internationalization of market
the hierarchical structure also increased in workingintegration
hours but decrease in pay bad working condition, social- Increased technological change
distance between employee and employer has- Cross culture issues
increased, increased bureaucratization all these factor- Increased competition
results in increasing monotony boredom job- Increasing new concept
displacement impersonality due to these factorCONCLUSION
personnel management got higher attention.By doing complete analysis of evolution of HRM the
1945 – 1979 STARTED COLLECTIVEconclusion is their will be modern trends will be
BARGAINING POWER AND INDUSTRIALoccurring in HRM like strategic human resource
RELATION HAVE PRIMACY ROLE TO PLAY.management it is mandatory for every organization to
As in the Second World War the term employmenttreat all employees in a well manner because they are
manager started to take care of women employeesthe assets of an organization which helps in achieving
the combination of both welfare officers andorganization goal.
employment manager leads to personnelREFERENCES
management. Though in the war times the productivity-
increased due to number of employment policies- Documents and Settings\a\Desktop\What is
undertaken but the role of personnel managementStrategic Human Resource Management.