EVOLUTION OF

HUMAN RESOURCE
MANAGEMENT

KULDEEP MATHUR
M.B.A.
JIWAJI UNIVERSITY GWALIOR
DEFINATION

 Human resource management (HRM) is

the management of various activities
designed to enhance the effectiveness of
an organisation’s workforce in achieving
organisational goals.
STAGES IN EVOLUTION
1. Human resource in pre-industrial era, Industrial revolution and the
factory system
2. Emergence of modern corporation and managerial capitalism
3. Scientific management, welfare work and industrial psychology
4. World war 1 and the emergence of HRM as a profession
5. The golden age of industrial relations and the personnel
management maintenance function, 1935-1970
6. Quality of work life era
7. The emergence of contemporary HRM function And Strategic
focus era
8. The HRM function today
PERSONAL MANAGEMENT

According to the Institute of Management(U.K).

“ Personal Management is an integral but
distinctive part of management, concerned
with
people at work and their relationships within
the enterprise.”
 Differences between HRM and PM
Dimension HRM PM

1. Communication Direct Indirect

HRM is invested in working with PM is invested in the ordinary way

2.Team work people, team-building & team- of administration of personal
work. policies and programs

3.Motivation HRM concentrates more on PM concentrate more on selection ,

motivation ,morale-boosting and recruitment & appraisal of personal
job satisfaction

4.Speed of decision Fast decision are taken by the Slow decisions are taken by the PM
HRM

5. Job design Team work Division of labour

 By doing complete analysis of evolution of HRM the conclusion is
their will be modern trends will be occurring in HRM like strategic
human resource management it is mandatory for every
organization to treat all employees in a well manner because they
are the assets of an organization which helps in achieving
organization goal
Thank You
 Stage 1- Human resource in pre-industrial era, Industrial revolution and
the factory system
• 1400 A.D to 1700s.Absence of HRM function in organisations

• Shift from subsistence agriculture to a commercial based economy

• Spectacular growth of towns and villages along with middle class
• Industrial revolution
•In UK- late 18 th century, USA 19 th century and in INDIA the second half
of 20 th century

•Replacement of human effort and skill by the work of machines

•Development of factory system

• - displaced self employment household and handicraft
• -rationalisation of work and division of work

• - necessity of supervision of large number of workers

• - personnel system practices became autocratic, based upon a

commodity concept of labour
 Stage 2-Emergence of modern corporation and managerial
capitalism
• From 1860 to the turn of the century

• Emergence of the modern HRM practice

• Transfer of employment from agriculture to industrial,

from small scale to large scale.
• modern business enterprise along with capital
management

• Separation of the operation from the ownership of firms

and employment of salaried managers
 Stage 3- SCIENTIFIC MANAGEMENT, WELFARE WORK, INDUSTRIAL
PSYCHOLOGY.
• Scientific management- F.W. TAYLOR
• - “the one best way” and the fastest time a worker could perform a particular task.science, not the
rule of thumb, harmony not discord,co-operation not individualism and ,maximum output, not
restricted output
• Differential payment system
• Taylor proposal for functional management called attention to the need for a separate human
resource function as a part of SM.
• Importance of proper selection procedures and training methods
• WELFARE WORK
• Efforts made in the 19 th and early 20 th century To improve the working condition of factory
workers
• More systematic approach to labour problems The averting of industrial conflict and unionisation
• The promotion of good management and worker relations The efforts to increase worker
productivity.
 Stage 4-World war 1 and the emergence of HRM as a
profession
• Scientific personnel administration and centralising
• Personnel management department was emerged
• Labour turnover increased
• Labour shortage, increased wages and demand for employees for war
production
• In UK and USA firms established personnel departments in between
1920 & 1950
• Firms adopted functional management
• Unsystematised HRM practices
 Stage 5-The Golden age of industrial relations
• In the period of great depression
• Increase the need for the practice of HRM as a result of growth in union and collective bargaining
PROVISION OF LEGISLATION
 From 1945 to 1970 the primary focus of the employment relationship was on IR
 The passing of several acts in USA encouraged unionisation.The pro-union legislation was followed
by world war 2 which created an extraordinary demand for labour
GOLDEN AGE OF IR
 Between 1948 and 1958,The general focus of HRM was on IR because the primary need of many
organisation was to operate in the collective bargaining framework of labour relations
 Firms had depreciated personnel department by the effect of depression
 Govt. involvement in the economy during the war created a need for personnel department in all
companies
 Stage 6- QUALITY OF WORK LIFE ERA

• Began in 1960s and continued till 1970s.Rise in the view of the importance
of HR as an assets, not liabilities
• Series of efforts directed as satisfying the interests of both employees and
firms
• Policies and practices which maximised organisation performance and
employee
Practices and programmes implemented
• Job design and enrichment with career planning and development,For
improving the psychological quality of employees
• Create more committed employees through employee participation
 Stage 7- THE EMERGENCE OF CONTEMPORARY HRM FUNCTION

FACTORS LEADING TO TRANSFORMATION OF HRM FUNCTION

• Environmental changes occurred after world war 2
• The shift from manufacturing employment to service sector employment continued
• Growth in international competition, domestic competition, deregulation, globalisation and technological change Union
avoidance policies
• Dealing with employees directly as individual rather than on management-union relations
• Develop employees as assets by Increasing competitiveness of employees to assist the organisation’s goals
• Successful application of Total Quality Management
• In the late 1970s there was a considerable change in image, status and importance of HRM function in organisations
Strategic Focus Era
• In 1970s business strategy was included in the MBA syllabus
• Redesigning and restructuring of organisations.The old hierarchical type structure with tight control have given way to
flatter structure and larger span of control
• New structure focus on employee self control rather than old tradition of external control
• Need for sound human resource strategy to effectively manage the highly diverse work force
 Stage 8-The HRM function today

• Integration of the traditional PM activities and as well as HRM’s involvement in overall

organisational planning and change
• HRM today is characterised as a partner in organisational change, creator of
organisational culture, and facilitator of organisational commitment
• The decentralisation of traditional HRM activities from personnel specialist to senior line
management
• Focus on individual employee rather than on collective management-trade union relation
• Considering employee as the single most important organisational asset
• HRM has become a partner with other management functions
• HRM become increasingly responsible to cultivate the requisite culture that is conductive of
required behaviours
Functions Of HRM