The History and the Evolution of Human Resources Management

 

It is very interesting to observe the History of the HRM and how it has been subjected to Evolution. Although now the Human Resources Management concept is well respected and treated while considering it as the most important resource in any organization, the scenario in history is different than the present.

Let us see how it had been driven through the past up to now.

19th Industry - Pre Industrial Era

• That time, the business organizations were very small family business organizations that were mainly built up in the agricultural sector. The essential labor was mainly supplied by own family members and through their personal relationships, and hence, there had not been such a big requirement to consider on the well-being of human resources, and the business owners were not highly considering human resources as a separate entity. 

• Therefore, HR practices are not seen much in that period.

The period of year 1750 to 1900 - The Industrial Revolution 

• During this era there had been a mass development and enhancement in the production. A large number of factories were opened, and the world had been urbanized. During this era, the idea of controlling and maintaining the human resources occurs, and business owners realize the importance of human resources.

• But during this era, the wages were lower when compared with the workload done by workforce, and most of the laborers were dissatisfied with this nature in their working environment. As a result, the labor unions began to establish them-selves during this era.

The period of early 1900's - The Rising of Personnel Management 

• Realizing the struggles faced by the laborers in the previous era and considering the negative outcomes, the business owners or the managers start thinking of solutions to overcome the current situation and the ways of managing human resources in a positive way.

• Therefore, the development of personnel management as a basic and formal function is introduced in this era.

• Factors like division of labor, job specialization, wage systems, minimum salary criteria, and the introduction of labor laws can be seen in this era. This was the era in which personnel management was purely established and human resource began to be treated with due respect.

The period of 1930 - 1950 -  The Human Relations era

• This is the era in which the HRM shifted from administrative tasks to employee relations and strategies. More focus was given to improving the motivation and the morale of employees.

• A huge improvement in employee welfare development is widely seen in this era, and the HRM was highly concerned with the psychological and mental well-being of the workforce during this era.

The Modernization of HRM - 1950s to 1970s.

• This is the era after World War II. Whole nations were looking to rebuild the world economy, and the business organizations were starting to expand during this era. As a result, the leaders of the businesses further realized the importance of managing the HR, and finally, the HRM became more structured and recognized.

• During this era, training & development widely improved, labor laws were expanded and established, corporate culture was expanded, and especially employee benefits and rewards were improved. This is considered an era of revolution in HRM. The main focus on HRM functions was well expanded during this period.

The Strategic era of HRM - 1980s to 1990s.

• The most important thing that is visible in this era is that HRM was shifted from operational management to strategic management. 

• As the whole world was witnessing the effect of technological advancement and the globalization, the HRM was also strategically improved during this era.

• The business strategies and organizational objectives were well connected with HRM, and the HRM was aligned with them well during this era. 

• A huge technological improvement is visible in HRM during this era. The performance management and employee rewards were expanded in the HR industry. As a whole, the HRM of the organization became a key decision-making authority, and the HRM structure of the organization decided the future of the organization.

The HRM and the Digital Transformation - from 2000s to present.

• With digitalization, the whole world is going through a revolution and so is the HRM. Now in this era, data-driven functions have been included in the classic HRM functions.

• The Artificial Intelligence and the automation of HRM processes are now visible.

• Most of the HRM departments of the organizations now use digital platforms for basic HRM functions. Unlike the good old days, the selection and recruitment are well supported by the digital platforms as, job advertising has now become easier with the modern digitalization.

• Hence now, this is the transformation era of human resources management where classic HRM is now functioning with the impacts of digitalization.

WATCH THE FOLLOWING VIDEO THAT DESCRIBES THE EVOLUTION OF HRM IN A DETAILED WAY TO GRAB MORE FACTS!!

SUMMARY

The HRM nowadays is not the HRM which was behaving in History. It has evolved well with the times and with the changes that occurred in the world.

Now HRM is digitalized and is far advanced than the early eras.

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References :

Bratton, J., & Gold, J. (2017). Human Resource Management: Theory and Practice. Palgrave Macmillan.

Taylor, F.W. (1911). The Principles of Scientific Management. Harper & Brothers.

Mayo, E. (1933). The Human Problems of an Industrial Civilization. Macmillan.

Ulrich, D. (1997). Human Resource Champions: The Next Agenda for Adding Value and Delivering Results. Harvard Business Review Press.

Armstrong, M. (2020). Armstrong’s Handbook of Human Resource Management Practice. Kogan Page.

Cascio, W. F., & Boudreau, J. W. (2016). The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People. McGraw-Hill Education.

https://eajournals.org/wp-content/uploads/History-Evolution-and-Development-of-Human-Resource-Management-A-Contemporary-Perspective.pdf

PocketHRMS, online : https://www.pockethrms.com/blog/the-evolution-of-hrm-human-resource-management/

SHRM,online : https://www.shrm.org/topics-tools/news/hr-magazine/how-got-75-year-evolution-shrm-hr