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— 19th century
- Trade Union movement era — close to the 19th century
- Social Responsibility era — beginning of the 20th 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
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
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].
Well structured overview, George. My question to you is, do you see any overlaps between the SHRM and Modern HRM stages? If yes, how are they overlapping in your view, and what are the challenges associated with this overlap?
ReplyDeleteAppreciate your valuable comments Thanuki.
DeleteYes, there are overlaps between the SHRM and Modern HRM stages.
In SHRM, HR practices are aligned with organisational goals and strategies, and HR Managers are seen as strategic partners who contributes to the achievement of business objectives. The objective in modern HRM is also the same, but with a focus on employee engagement, satisfaction, and well-being.
The overlap between SHRM and Modern HRM also highlights the importance of HR managers possessing both strategic and interpersonal skills to effectively manage the HR function in a way that aligns with organisational goals and employee needs.
Great article George! It is interesting to see how HRM has changed from its early days throughout the Industrial Revolution to its modern, strategic form today. It's very interesting to understand how the focus of HR is shifting from managing labor relations to aligning HR strategies with corporate goals and making sure employees have a good time at work. It is also true to say that technology and DEI techniques are important parts of modern HRM. We are awaiting for your next article.
ReplyDeleteAppreciate your valuable comment Niluka.
ReplyDeleteThe introduction provides a good overview of the evolution of Human Resource Management (HRM) over time, from its early stages in the medieval era to its modern-day practices. It also highlights the different eras in the development of HRM and how the focus of HR has shifted from managing employee relations to creating a positive employee experience that supports organizational goals. Overall, the text provides a comprehensive overview of the evolution of HRM practices and the key stages in its growth.
ReplyDeleteHighly appreciate your comment Hansika.
ReplyDeleteWith a focus on employee engagement, talent management, performance management, and diversity, equality, and inclusion (DEI), the phrase properly captures how HRM has changed over time. Modern HRM procedures are designed to improve employee satisfaction, which supports organisational objectives and promotes economic success. In order to satisfy the changing demands of the modern workplace, HRM will continue to adapt and develop as technology develops. Overall, HRM is critical to determining workplace culture and determining the success of an organisation, and it must continue to develop if organisations are to survive and grow in the future.
ReplyDeleteUdesh you have given a very positive comment regarding the post. You have very correctly highlighted how critical is the modern HRM role in determining workplace culture and success.
DeleteGreat article George. The evolution of Human Resource Management (HRM) from Personnel Management can be traced back to the shifting focus from a transactional to a strategic approach in managing employees. According to Stone (2013), "Personnel Management was primarily focused on administrative tasks and compliance with labor laws, whereas HRM emphasises a strategic approach, aligning human capital with organisational goals and objectives" (p. 45). HRM has evolved to encompass strategic workforce planning, talent acquisition, employee development, performance management, and employee engagement, among others, to proactively support the achievement of organisational goals. The strategic orientation of HRM emphasises the need for a holistic and integrated approach to managing human capital, recognising employees as valuable assets for the organisation (Armstrong, 2014).
ReplyDeleteLasni, you have given a very good critical comment regarding the blog post. Your comment with different references further enhances the quality of the comment.
ReplyDeleteEvolution of HRM is essential for our collective understanding and applications in real-life work. This informative article shine a light in the process that HRM was undergone to finesse and stay relevant in today's world. Determined emerging trends are also welcomed, as businesses should set themselves up for future success by creating strong future-of-work strategies that foresee these trends and pro-actively handle emerging difficulties.
ReplyDeleteThanks for your valuable comment Pham
DeleteAdding to your view, I observe that HRM has evolved from personnel management to a more strategic and people-focused approach, influenced by the changing business environment, changing workforce demographics, legal and regulatory environment, labor market trends, employee engagement, and technological advancements. These factors have led to a shift in the focus of HRM from administrative tasks to strategic human resource management.
ReplyDeleteThanks for your valuable comment Jothi.
ReplyDeleteHRM has evolved through various stages of the industrial revolution, trade unions, scientific management, behavioral science, and human relations. It is divided into four parts: foundations and frameworks, core processes and functions, patterns and dynamics, and measurement and outcomes. In the medieval era, skilled artisans and craftsmen produced goods with their own tools and instruments and sold them in the market. Many apprentices established their own enterprises after a prolonged period of training, and guilds were formed to protect the interests of their respective trades. Other laborers included slaves, serfs, and indentured laborers.
ReplyDeleteIt's good view of HRM. Human resource management (HRM) is the practice of recruiting, hiring, deploying and managing an organization's employees. HRM is often referred to simply as human resources (HR). A company or organization's HR department is usually responsible for creating, putting into effect and overseeing policies governing workers and the relationship of the organization with its employees. The term human resources was first used in the early 1900s, and then more widely in the 1960s, to describe the people who work for the organization, in aggregate.The role of HRM practices are to manage the people within a workplace to achieve the organization's mission and reinforce the culture.
ReplyDeleteIn this article you explained about history of human resource management and modern.It is huge area but you explained it well. The term "human resource management" has been commonly used for about the last ten to fifteen years. Prior to that, the field was generally known as "personnel administration." The name change is not merely cosmetics. HRM developed in response to the substantial increase in competitive pressures American business organizations began experiencing by the late 1970s as a result of such factors as globalization, deregulation, and rapid technological change. These pressures gave rise to an enhanced concern on the part of firms to engage in strategic planning--a process of anticipating future changes in the environment conditions (the nature as well as level of the market) and aligning the various components of the organization in such a way as to promote organizational effectiveness.
ReplyDelete