Evolution of HRM

PGDM-HR 2011-2013 International Management Institute

Group 2 Akanksha Bansal Atul Kumar Mishra Kartik Agrawal Poorva Vashisht Shweta Shukla

The Early Days:

Pre- Industrial Era (1400-1700s)

Absence of any formal HRM function in organizations Cessation of feudalism Shift from agricultural to commercial based economy Development of putting out or domestic system

Industrial Revolution and the Factory System

Shift from agricultural society to industrial society. Replaced human effort and workers skill by machines. Autocratic rule was followed. Total neglect of the human effort.

The emergence of Modern Corporation and Managerial Capitalism

Set the stage for partnership and business enterprise. To improve the production size and technology. No improvement in human resource management.

Scientific Management, Welfare Work & Industrial Psychology

Science, not the rule of thumb & Cooperation not individualism . Maximum output, in place of restricted output & Each worker gets compensated according to their output. SM represented a new attitude towards management & Functional Management as a part of SM.

World War 1 & The emergence of HRM as a profession (1911-1914)

Scientific personnel administration and centralizing. 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. Unsystemised HRM practices.

The Human Relations Movement

Associated with Elton Mayo and Fritz Roethlisberger. An alternative and opposite approach to scientific management. Importance of sociology and psychological aspects on productivity

The Personnel Management Maintenance (19351970)

Golden Age of IR: Focus shifted towards the industrial relations function. Increased need for the practice of HRM as a result of growth in union and federal legislations. Social security means initiated : the NorrisLaGuardia act, National Labor Act (NLRA) and Wagner Act(1935).

Quality of Work Life Era (1960s-1970s)

HR as an asset and not a liability Policies and practices implemented to maximize the performance of both employee and the firm.

The Emergence of Contemporary HRM Function (1970s-Present)

Fall in Private sector unionism Building employer-employee relationship Use of TOTAL QUALITY MANAGEMENT

HRM Evolution Ladder

Quality of Work Life Era (1960s-1970s) Personnel Management Maintenance Human Relations Movement

World War I & HRM as a profession Scientific Management, Welfare Work & Industrial Psychology Modern Corporation & Managerial Capitalism Industrial Revolution & Factory System Pre- Industrial Era (1400s-1700s)

Contemporary HRM Function

However HR develops, understanding its customer & segmenting services will determine its success HR has considerably evolved over the past ten years

Understanding your workforce enables HR to add value to business both now and in the future

HR in 2020
Lessons learnt from others experience will enable organizations to jump steps on their evolution

Technology adoption rate will increase and Social Media is here to stay
HR capability need to be raised to enable it to support the strategic aspects of business

Thank You!