Evolution of HRM: A Synopsis

Evolution of Human resource management 

In simple terms, human resource management (HRM) is the management of organizational manpower. Armstrong has provided more detail and comprehensive definition, “strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives” (Armstrong, 2006). Modern-day HRM is derived from human relations with the organization which came to light during the 1970 and early 1980s in the USA (Henderson, 2011). Globalization and technological advancement have influenced the modern HR functions which are now focus on more of strategic initiatives. This article gives a brief account of the evolution of HRM. 

Pre-industrial Society 

Pre-industrial society was agriculture based and industries were less prominent. Cotton manufacturing was the only noticeable industry but all the work been done using hands. Workers lived in factories or in the home of the owners and the owner look after the needs of the worker. 

Industrial and post-industrial period  

With the industrial revolution in the 19th century, mass production came into effect. In the mid-19th century, the government has introduced laws, Factory acts of 1840, to ensure the welfare of the workers (Henderson, 2011). Some capitalist (Rowntree and Cadbury) may be due to their religiousness has taken measures to improve the working conditions and lives of factory workers. The application of scientific management (Taylorism and Fordism) for mass production increased labor productivity. Scientific management highlights the importance of methodical management of people. When the mass production is sailing well, the trade unionism came to the effect where collective demands such as better working conditions and higher wages, were made from the employers.

Emergence of HRM

A paradigm shift from the personnel management to HRM started in the 1970s and early 1980s in the United State, mainly because of technological advances, the influence of Japanese work culture and the loss of faith in scientific management in mass production (Henderson, 2011). Western corporates realized the need for a change of their approach to counter the Japanese influence. Increase utilization of technology by society (markets) put pressure on organizations to adopt advanced technology to maintain competitiveness. The employee needed new knowledge and skills in technology. Therefore, the training and development of the workforce were required to upgrade their skills.

Unionism and HRM

The rise of collective employment relations has modelled the HR practices. In a pluralistic relationship, the employer and the employee share different interests. Whereas in the unitarist perspective all stakeholders have similar interests. Demands for better working conditions and higher wages by the trade unions are a common practice in the pluralist work culture but in a unitarist relationship, trade unionism has less or no role to play.

Strategic HRM

Today, cutting edge technology and talented employees create the competitive advantage which is essential to positions and expand operation in the global market. This phenomenon leads to the idea that human capital is more important than capital investment. Therefore, HRM has earned a much important position in the contemporary business world.  

References

1. Armstrong M., 2006. Human resource management. In: M. Armstrong, ed. Human Resource Management Practice. 10 ed. London: Kogan Page Limited, p. 3.

2. Henderson I., 2011. People management: personnel management and human resource management . In: Human resource management for MBA student s. London: CIPD, p. 7.