Evolution of Hrm

History and Evolution of HRM Personnel Management Personnel departments were once called Health and Happiness departments. The people assigned to deal with personnel issues were often individuals, who were not able to do other jobs efficiently. Personnel Management’s as a corporate field developed in the early 1900s. It was seen as activity, necessary, but unimportant, part of the organization. Over the years personnel management came to focus on efficient procedures and rules for administering large numbers of employees in various firms.

Its aim was to manage difficulties, introduce fair systems and reduce costs. It also tended to focus on groups rather than individuals and, incidentally, reinforced labour-management divisions. The History of Human Resource Management The field of HRM as it currently exists has got through lot of transition. Following are the phases in the transition of HRM:- (a) The Individual Revolution: During this phase machines were introduced into various organizations and technology made rapid progress.

Due to fragmentation and specialization of work, many workers lost their jobs and many workers felt their work to be dull, boring and monotonous. Workers were treated like tools, and moreover employees were keen to increase the production targets rather than satisfy workers’ demands. (b) Scientific Management: With the introduction of Scientific Management given by F. W. Taylor, efficiency in organizations was increased . Work was rearranged according to systematic analysis into smallest mechanical elements which was mot effective combination.

Taylor emphasized on the fact that the individuals selected to perform the task should be perfectly matched, physically as well as mentally. Proper training should be given to the employees so that they can do their job more efficiently. (c) Trade Unionism: As the employees become more exploitive, the workers working in the organizations joined hands to fight against injustice done to them in the shape of Trade Unions tried to improve the problems faced by the workers through collective bargaining.

They helped in resolving the grievances of the workers relating to working conditions, pay and benefits, disciplinary actions, etc. (d) Human Relations Movement: The famous Hawthorne experiments conducted by Elton Mayo during 1930s and 1940s demonstrated that employee productivity was affected not only by the way job was designed, and the monetary aspects, but by certain social and psychological factors as well. The human relations movement led to various behavioral science techniques in industry for the very first time.

This movement included support for training programs, support and concern for workers, counseling programs for workers, etc. (e) Human Resource Approach: However, but during early 60s the “pet milk theory”…….. that happy workers are more productive workers as happy cow gives more milk ………. Of human relations was largely rejected. In human resource approach it was recognized that workers are unique in their own way – having individual needs. It was recognized that each employee is a unique and highly complex individual with different wants, needs and values.

Slowly but steadily, the trend moved towards treating employees as resources or assets. Evolution of the Concept of HRM The various stages or phases in the transition or evolution of Personnel Management into Human Resource Management are shown below: (a)The Commodity Concept:Labor was regarded as a commodity to a tool to be bought or sold (b) The Factor of Production Concept: labor is like any other factor of production, viz. money, materials, land etc. (c) The Goodwill Concept: Welfare measures like safety, first aid, lunch room, rest room will have a positive impact on workers’ productivity. d) The Paternalistic Concept: Management must assume a fatherly or protective attitude towards employee. It means satisfying the various needs of employees as parents meet the requirements of their child. (e) The Humanitarian Concept: To improve productivity, physical, social and psychological needs of workers must be fulfilled and met. (f) The Human Resource Concept: Employees are the most valuable assets in the organization. (g) The Emerging Concept: Employees should be accepted as partners of the organization.

They should belong to the organization as they are running their own organization. Scope of HRM The main aim of HRM is Competitive advantage through people. It involves the following points:- (a) Change in Thinking Process: Achieving competitive success through people involves fundamentally changing the thinking of the concerns, that how they think about the workforce consisting of people an the management-employment relationship. (b) Co-operation with Employees: It means achieving success by working with people, not by replacing them or limiting the scope of their activities. c) Strategic Viewpoint: It involves seeing the workforce as a source of strategic advantage, not just a cost to be minimized. Distinction – Personnel Management/HRM/HRD The sole purpose of personnel management was to attain advantage and best results for the organization. The individual’s interests, desires and aspirations were submerged into the organization objectives and goals. Where as, HRM projects the development of individual in accordance with his interests, desires & aspirations. So that the individuals would be motivated to make their best contribution towards the accomplishment of goals.

While personnel function was designed to respond to the organization objectives like profit of maximization, HRM visualized human elements of enterprise as important resources. The term human resources at the macro level spell the total sum of all the components (like skill & creative ability) possessed by all the people, where as the term personnel even at the macro level is limited to only employees of all organization. One must not be under impression that HRM has replaced traditional personnel management rather we can say that HRM has absorbed the personnel function in its refined form.

HRD is an integral part of Human Resource Management. Due to the amalgation of Personnel function in its refined way with HRM, it became necessary for every organization to develop skills, talents, potentialities, capabilities and attitude of company work to meet the emerging challenges. Hence HRD policies have been adopted. HRD strategies are supposed to bring forth necessary changes in skills capabilities and attitudes of people who are required to cope with the emerging changes. Thus HRD has become an integral part of Human Resource Management.

Personnel Management Human Resource Management Personnel Management | Human Resource Management| | | Labor is treated as a tool which is replaceable| Treats people as a resource or as an asset to be issued for the benefit of an organization | Interests of organization are upper most | A distinct philosophy aiming at mutuality of interests| A not so important function meant only to hire employees and maintain their records | Integrated into overall straight management | Precedes human resources management | Latest in the evolution of subject|