Introduction

Human resource management (HRM, or simply HR) is a function in organizations designed

to maximize employee performance in service of an employer's strategic objectives. HR is
primarily concerned with the management of people within organizations, focusing on
policies and on systems.

The world’s first management book, titled ‘Arthashastra’, written three millennium before
Christ, codified many aspects of human resource practices in Ancient India. However, in
much more recent times, John Patterson, the president of the East India Company,
formed a personnel department to manage the grieves of workers after a bitter union strike
in 1901.

In Western countries Human Resource Management (HRM) had its primitive beginning in
1930s. Not much thought was given on this subject in particular and no written records or
document existed on this subject even as a philosophy in the Western ancient literature. The
philosophy of managing human being, as a concept was found developed in ancient
literatures in general in Indian philosophy in particular.

In the ancient times, the labourers were looked down upon. It was considered menial to
work for a livelihood. But gradually the factory system came into existence and later
industrialisation followed by urbanisation.

This led to a greater emphasis on’ labour management’. Earlier it was known as ‘Personnel
Management’, then ‘Human Resource Management’ and in recent times as ‘ Human
Resource Development’.

In ‘Personnel Management’, the employees were treated as mere labourers who required
constant supervision. The human element was not given due importance. Later Elton Mayo’s
“Hawathorne Experiments’ gave rise to “Human Resource Management’. Here the ‘Human
element’ was emphasized.

But the buzz word today is ‘Human Resource Development’. Unlike HRM, here the main
objective is not just identifying an individual employee’s existing potentials but also those
capabilities innate in him. HRD aims at bringing out the hidden potentials of an employee
and help him develop as an individual.
Industrial Revolution

The Industrial Revolution led to the decline of the craft system.What did this mean for
human resource management? A new class of employee appears in the workplace - the
manager. Unlike under the craft system, managers were often not owners of the company.
Some managers had responsibility for supervising employees in their work task. Unlike
under the craft system, however, it was not necessarily the case that managers actually knew
how to do the work they were supervising. Their role was to ensure employees did their
work.

Trade Union Movement Era:

The conditions of workers in the aftermath of factory system as an outcome of industrial
revolution were very pathetic. The First World War further worsened their conditions. This
was the period when state intervention to protect the worker s interest was felt necessary.

The Royal Commission of Labour in India (1911) under the chairmanship of J H, Whitley
recommended the abolision of the ‘jobber’ system and the appointment of labour officers in
industrial enterprise to perform the recruitment function as well as to settle the worker’s
grievances. Also, workers started forming their associations which was subsequently known
as ‘trade unions’ to improve their lots. Trade Union Act, 1926 was passed in India.
Social Responsibility Era:

In the starting decade of 20th century, some factory owners/employers started showing
humanistic approach towards the workers. Robert Owen, a British industrialist towards
workers. He viewed that the principal social and economic environments influence the
physical mental and psychological development of workers.

The philosophy underlying in Owen’s paternistic approach was that worker’ is just like a
child and owner is just like a father. Therefore, the owner should take care of a worker just
like a father takes care of his child. Accordingly, Owen himself implemented this philosophy
in his cotton mill at Scotland by introducing facilities such as shower baths and toilets in the
factory premises, model villages for workers, raising minimum wage of employment of child
labour to 11 years and reducing working hours from 12 to 10 hours.

Scientific Management Era:

The concept of scientific management was introduced by Fredrick Winslow Taylor’ in the
USA early in the 20th century as an alternative to the prevailing system of management by
initiative and incentive.

Based on his shop floor job experience, Taylor developed four principles of scientific
management:

1. Development and use of scientific methods in setting work standards, determining a fair
day’s work, and best way of doing work.

2. Scientific selection and placement of workers best suited to perform the various tasks and
provision of their training and development for maximum efficiency.

3. Clear cut division of work and responsibility between management and workers.

4. Harmonious relations and close cooperation with workers to secure performance of work
in accordance with the planned jobs and tasks.
Human Relations Era:
By 1920, it was felt that earlier approaches to human resource management were incomplete
as these did not recognize workers as human beings having their feelings, attitudes and
needs. It was between 1925 and 1935; many experts expressed their opinions towards the
human aspects of organisational activities. Elton Mayo and his associates conducted a series
of experiments from 1924 to 1932 at the Hawthorne plant of the Western Electric company
in the USA.

Based on their findings, the researchers developed a human relations approach to HRM. It
was based on the view that the modern organisation is a social system in which the social
environment and inter-personal relations govern the behaviour of employees.

Behavioural Science Era:

The behavioural science era assumes human behavior as a means to achieve efficiency in
performance. Behavioural approach to HRM is based on the findings of intensive research
carried out by behavioural scientists belonging to the disciplines of sociology, social
psychology, anthropology and management experts.

The major contributions made by the behavioural scientists are in the areas of motivation,
leadership, communication, organisational change and development, organisational culture,
and individual and group dynamics .

Systems Approach Era:

A system may be defined as a set of interdependent parts forming an organised unit or

entity. The system is defined as “an organised and complex whole: an assemblage or
combination of things or parts forming a complex unitary whole.” The parts, also known as
sub-systems, interact with each other and are subject to change. These sub-systems are
inter-related and interdependent.

Contingency Approach:
Contingency approach of management and for that matter HRM emphasizes on
two points:
1. It focuses attention on situational factors that influence managerial decision.

2. It highlights the need for developing skills for managers in situational analysis.

Transition of HR-

Personnel management
Personnel management can be defined as obtaining, using and maintaining a satisfied workforce. It is
a significant part of management concerned with employees at work and with their relationship within
the organization.

According to Flippo, “Personnel management is the planning, organizing, compensation, integration and
maintainance of people for the purpose of contributing to organizational, individual and societal goals.”

According to Brech, “Personnel Management is that part which is primarily concerned with human
resource of organization.”

Scientific Management
Scientific Management, also called Taylorism, is a theory
of management that analyzes and synthesizes workflows. Its main objective is improving economic
efficiency, especially labor productivity. It was one of the earliest attempts to apply science to
the engineering ofprocesses and to management.
 Scientific management is a distinct theory or school of thought was obsolete by the 1930s, most of
its themes are still important parts of industrial engineering and management today. These include
analysis; synthesis; logic; rationality; empiricism; work ethic; efficiency and elimination of
waste; standardization of best practices; disdain for tradition preserved merely for its own sake or
to protect the social status of particular workers with particular skill sets; the transformation of craft
production into mass production; and knowledge transfer between workers and from workers into
tools, processes, and documentation.

Human resources management

Human resource management (HRM, or simply HR) is a function in organizations designed to
maximize employee performance in service of an employer's strategic objectives.[1] HR is primarily
concerned with the management of people within organizations, focusing on policies and
on systems.[2] HR departments and units in organizations typically undertake a number of activities,
including employee benefits design employee recruitment, "training and
development", performance appraisal, and rewarding (e.g., managing pay and benefit
systems).[3] HR also concerns itself with industrial relations, that is, the balancing of organizational
practices with requirements arising from collective bargaining and from governmental laws

HR is a product of the human relations movement of the early 20th century, when researchers
began documenting ways of creating business value through the strategic management of the
workforce. The function was initially dominated by transactional work, such
as payroll and benefits administration, but due to globalization, company consolidation,
technological advances, and further research, HR as of 2015 focuses on strategic initiatives
like mergers and acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion.

Strategic HRM
Strategic HRM defines the organization’s intentions and plans on how its business goals
should be achieved through people. It is based on three propositions: first, that human
capital is a major source of competitive advantage; second, that it is people who
implement the strategic plan; and, third, that a systematic approach should be adopted to
defining where the organization wants to go and how it should get there.

Strategic HRM is a process that involves the use of overarching approaches to the
development of HR strategies, which are integrated vertically with the business strategy
and horizontally with one another.

These strategies define intentions and plans related to overall

organizational considerations, such as organizational effectiveness, and to more specific
aspects of people management, such as resourcing, learning and development, reward and
employee relations.

Timeline of Evolution of HR:

This timeline extends since quite ancient times. Here, we have tried to explain some of the
important landmarks in the history of HRM. The political, social and economic circumstances at
different points in time which shaped the form of HRM as we see it today are stated. Important ones
are the more recent ones from 1901 - present.

• Early records about Personnel management in Arthashastra which indicates job description
of supervisor and performance linked pay for gold smiths were found.

• Master servant relationship in 17th century started to bloom.

• 1828-Robert Owen father of co-operative movement wrote a book titled as “New view
society”-Improving working conditions and work life of laborers.

• After 1850 British rulers institutionalized for running the government which leads to
personnel management system.

Industrial revolution in 1900s

• 1911 F W Taylor: The Principles of Scientific Management was published. This influential
monograph, which laid out the principles of scientific management, is a seminal text of modern
organization and decision theory and has motivated administrators and students of managerial
technique

• 1921-Hawthorn studies: The Hawthorne studies found that workers were more responsive to group
involvement and managerial attention than to financial incentives.

• 1931-Role of Royal commission of labour

The Royal Commission on Labour in 1931 pointed out the need for systematic collection of labour
statistics. It observed that the policy must be built on facts as the uncertainty of facts would lead to
confusion and conflict regarding its aim.

• 1941-First tripartite labour conference took place.

• 1948-Factories Act: The Factories Act 1948 was an Act of Parliament passed in the United
Kingdom by the Labour government of Clement Attlee. It was passed with the intention of
safeguarding the health of workers. It extended the age limits for the medical examination
of persons entering factory employment, while also including male workers in the
regulations for providing seats and issuing extensive new building regulations.

• In 1950-1969, 3 five year plans-Private and public sector projects were focused greatly.

• 1980-Flexibility in Productivity agreements have increased labour productivity in England.

• 1990: Personnel management and industrial relations(IR) in public sector undertakings have
greatly increased productivity.

After 1990 the emphasis is shifted to human values and productivity through people
• 1990: Older Workers Benefit Protection Act: In 1990, Congress passed the Older Workers
Benefit Protection Act (OWBPA) which amended the Age Discrimination in Employment Act
(ADEA) to safeguard older workers’ employee benefits from age discrimination.

• 1990: Americans with Disabilities Act (ADA): An act to establish a clear and comprehensive
prohibition of discrimination on the basis of disability.

• 1991: Revision of the Civil Rights Act: The Civil Rights Act of 1991 is a United States statute
that was passed in response to a series of United States Supreme Court decisions which
limited the rights of employees who had sued their employers for discrimination.

• 1993: Family and Medical Leave Act (FMLA): FMLA is designed to help employees balance
their work and family responsibilities by allowing them to take reasonable unpaid leave for
certain family and medical reasons. It also seeks to accommodate the legitimate interests of
employers and promote equal employment opportunity for men and women.

• 1994: Uniformed Services Employment and Reemployment Rights Act (USERRA): The
Uniformed Services Employment and Reemployment Rights Act of 1994 was passed by U.S.
Congress and signed into law by U.S. President Bill Clinton on October 13, 1994 to protect
the civilian employment of non-full-time military personnel in the United States called to
active duty. The law applies to all United States uniformed services and their respective
reserve components.

• 1996: Illegal Immigration Reform and Immigrant Responsibility Act: This act states that
immigrants unlawfully present in the United States for 180 days but less than 365 days must
remain outside the United States for three years unless they obtain a pardon. If they are in
the United States for 365 days or more, they must stay outside the United States for ten
years unless they obtain a waiver. If they return to the United States without the pardon,
they may not apply for a waiver for a period of ten years.

• 1997- Focused on product and customer: A good customer value proposition will provide
convincing reasons why a customer should buy a product, and also differentiate your
product from competitors. Gaining a customer's attention and approval will help build sales
faster and more profitably, as well as work to increase market share. Understanding
customer needs is important because it helps promote the product. A brand is the
perception of a product, service or company that is designed to stay in the minds of targeted
consumers. It leads to customer satisfaction, bench marking, Application TQM, core
competence, empowerment and learning organization.
Conclusion
The world of work is rapidly changing. As a part of organization, Human Resource Management (HRM)
must be prepared to deal with effects of changing world of work. For the HR people it means
understanding the implications of globalization, work-force diversity, changing skill requirements,
corporate downsizing, continuous improvement initiatives, re-engineering, the contingent work force,
decentralized work sites and employee involvement.

HR professionals say that the three biggest challenges facing HR executives over the next 10 years are
retaining and rewarding the best employees (59%), developing the next generation of corporate leaders
(52%), and creating a corporate culture that attracts the best employees to organizations (36%). It also
explores investment challenges, talent management tactics, evolvement of the workforce, and critical HR
competencies and knowledge.

The HR systems needs to be retained and constantly upgraded and changed:

People will always need to be hired and trained

Process will always need to be created and upgraded

Cultures will always need to be established and transformed.

HR practices must be aligned to business realities, meeting deadlines , making profits,

leveraging technology, satisfying investors and to serving customers

HRM is to create organizational capabilities that will lead to competitiveness

Graphics
Starting
“There is no ‘magic’ in the success of companies.
The secret of their success is simply the way that treat their employees”

Akio Morita
Founder, Sony Corporation
Introduction
 Evolution

Transition of HR
PERSONNEL FUNCTION POINTS OF DISCUSSION HRM

Maintenance oriented Development oriented

Orientation
An independent function with independent sub- Consists of inter-dependant parts
functions Structure
Reactive, responding to events when they occur Proactive, trying to anticipate & get ready with
Philosophy appropriate responses
Exclusive responsibility of personnel Responsibility of all managers in the organisaiton
department Responsibility
Emphasis on monetary rewards Emphasis on higher order needs eg. Empowering
Motivators people
Improved performance is a result of improved Better use of human resources leads to improved
satisfaction & morale Outcomes satisfaction & morale
Tries to improve the efficiency of people & Tries to develop the organisation as a whole & its
administration Aims culture
Time line

Period Development status Emphasis Role

1920s-1930s Beginning Welfare clerical stroke disciplinary

,dismissal of workers]

1940s-1960s Struggling for Introduction to HR Administrative

Recognition techniques and IR
[leave, bonus, retirement
etc]
1970s-1980s Strong industrial Managerial
relations and
disputes,Regulatory [housing, medical leave etc]

1990s Promising Human values, Executive

productivity through
people [formulating policies, T&D
programs, MDPs etc] and
managerial role

Conclusion