Evolution of HRM from Personal Management

Figure 1

Source: www.dreamstime.com

Introduction to Human Resource Management:

Human Resource Management (HRM) evolved through various stages of the industrial revolution, trade unions, scientific management, behavioral science, and human relations. Hence, the concept of HRM has gradually replaced the term Personnel Management. People Management and High-Performance teams have become key functions and goals for managers at all levels in organizations. The text is divided into four parts: foundations and frameworks; core processes and functions; patterns and dynamics; and measurement and outcomes. (Boxall, P. et al, 2008).

History of Modern HRM:

The term “human resource management” is of recent origin and came to be used from the 1980s onwards (Manashree, C., 2022).

In the medieval era, the production of goods was done mainly by skilled artisans and craftsmen with their own tools and instruments, and the product was sold in the market. They managed their affairs themselves and with the help of the family members and the question of employer-employee or master-servant relationship did not arise. However, many affluent craftsmen also employed apprentices and certain categories of hired labor. A very close relationship between the master craftsmen and the apprentices existed and they took care of the problems faced by the apprentices and their family members. A sort of human approach was involved in their relationship (Manashree, C., 2022).

Many apprentices established their own enterprises after a prolonged period of training and many others remained attached to their master craftsmen on lucrative terms. During the medieval period, skilled craftsmen also formed their guilds primarily with a view to protecting the interests of their respective trades. The formed guilds were responsible for determining the price of the product, determining the wages of the journeymen and hired laborers, and regulating the terms and conditions of their employment. The ancient and a major part of the medieval period also witnessed the prevalence of certain other distinct types of laborers. These comprised slaves, serfs, and indentured laborers (Manashree, C., 2022).

From the industrial revolution era to the present era, various stages to the development of management of human resource practices may be classified as follows:

• Industrial Revolution era— 19^th century
• Trade Union movement era — close to the 19^th century
• Social Responsibility era — beginning of the 20^th century
• Scientific Management era— 1900-1920s
• Human Relations era— 1930s-1950s
• Behavioral Science era— 1950s-1960s
• Systems and Contingency Approach era – 1960 onwards
• Human Resource Management era — 1980 onwards

The classification of various stages of development of management of human resources in terms of the period shows the beginning of that era. In each era, emphasis has been put on a particular approach to managing people at work. A succeeding era does not mean the complete end of the preceding era but there has been overlapping in these.

HRM growth can be summarized with the following important stages.

Industrial Relations: Trade Unions became prevalent in the 1920s and 1930s, and personnel management evolved into industrial relations. The focus of HR shifted to managing employee relations, including labor negotiations and conflict resolution. The primary goal was to maintain harmonious relations between employees and management and to prevent strikes and other work stoppages.

Human Relations:     The emphasis of HR function shifted to human relations in the 1940s and 1950s. The goal was to improve employee satisfaction and motivation through better communication, teamwork, and employee participation in decision-making. The Hawthorne Studies, conducted by Elton Mayo in the 1920s and 1930s, demonstrated that employee productivity was strongly influenced by social factors such as the work environment, relationships with colleagues, and feedback from supervisors (Dundon et al., 2019).

Strategic HRM:        The focus of HR shifted to strategic HRM in the 1980s and 1990s, which emphasized the alignment of HR strategies with business goals. The role of HR is enhanced to include talent management, performance management, and succession planning. The primary goal was to develop a competitive advantage through the effective management of human capital. With the emergence of the concept of HR Business Partner during this period, HR professionals worked closely with the business leaders to develop and implement HR strategies that support the overall business (Wright and McMahan, 2011).

Modern HRM:          According to Guest (2017), the focus of HR shifted to creating a positive employee experience that supports organizational goals. This involves leveraging technology to streamline HR processes and improve communication and collaboration among employees. Some of the key modern HRM practices include,

1.      Recruitment and Talent Management

2.      Employee Engagement

3.      Performance Management

4.      Diversity, Equity, and Inclusion (DEI)

Conclusion:

HRM has come a long way since its inception, and modern HRM practices have transformed the workplace in significant ways. The focus of HR shifted to employee engagement, talent management, performance management, and DEI. HR professionals can create a positive employee experience that supports organisational goals and drives business success. As technology continues to evolve, we can expect HRM to continue to adapt and evolve to meet the changing needs of the modern workplace. (Manashree, C., 2022).

  

             Figure 2

 Source:www.dreamstime.com

 

 Reference List:

Boxall, P., Purcell, J., Wright, P.M. (2008) The Oxford Handbook of Human Resource Management. [online] Oxford University Press. Available from https://academic.oup.com/edited-volume/34542 [Accessed 22 March 2023].

Dundon, T., Wilkinson, A., Marchington, M., and Ackers, P. (2019). The Sage Handbook of Human Resource Management, 2nd edition. [online] Sage Publications. Available from: https://in.sagepub.com/en-in/sas/the-sage-handbook-of-human-resource-management/book252259 [Accessed 22 March 2023].

Guest, D.E. (2017). Human Resource Management and Employee Well-being: towards a new analytic framework. [online] Human Resource Management Journal, 27(1), pp.22-38. Available from: https://onlinelibrary.wiley.com/toc/17488583/2017/27/1 [Accessed 22 March 2023].

Manashree, C. (2022) Evolution of Human Resource Management (HRM) [online] Available from https://www.economicsdiscussion.net/human-resource-management/evolution-of-human-resource-management-hrm/31460 [Accessed 22 March 2023].

Wright, P.M. and McMahan, G.C. (2011). Exploring human capital: putting ‘human’ back into strategic human resource management. [online] Human Resource Management Journal, 21(2), pp.93-104. Available from: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1748-8583.2010.00165.x [Accessed 22 March 2023].