From Evolution to Transformation of HRM.

 

(Paycom, 2021) 

The evolution of HRM (Human Resource Management) terms is of very recent origin. It began revolving around the 1980s. During the ancient period, for a long time, goods were produced mainly by skilled craftsmen and artisans. They were responsible for handling all the processes, generating it, producing it, and finally selling it. Let us have a look at how the evolution of the concept of human resource management came into existence.

HRM Defined

Human resource management can be defined as a strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations. It was defined by Boxall and Purcell (2003: 1) as ‘all those activities associated with the management of employment relationships in the firm’. A later comprehensive definition was offered by Watson (2010: 919):

HRM is the managerial utilization of the efforts, knowledge, capabilities and committed behaviors which people contribute to an authoritatively coordinated human enterprise as part of an employment exchange (or more temporary contractual arrangement) to carry out work tasks in a way which enables the enterprise to continue into the future (Armstrong and Taylor, 2014).

Human Resource Management (HRM), being the department responsible for maintaining discipline, has come a long way. The term HRM is relatively a very new term for handling employees in every organization. It is still evolving and will keep on evolving to keep up with the changing world.

Pre-Industrial Revolution

HRM was apparent during the Pre-Industrial Revolution era with informal practices and a perception of workers as commodities, emphasizing manual labor without regard for their welfare.

At that time, there was no job specialization, and workers were required to possess diverse skills. Wages were meager, and working conditions were substandard, with no legal requirement for employers to ensure a safe working environment or provide benefits to their employees.

The recruitment and training of workers were not standardized, with employers hiring based on physical strength and the capacity to work long hours, and training limited to on-the-job learning and apprenticeships.

The Industrial Revolution brought about substantial changes in the workforce and HRM processes, with the establishment of factories and the adoption of advanced technologies to enhance productivity. This surge in production demanded a more organized approach to HRM, resulting in the rise of personnel management in the early 20th century.

Before the Industrial Revolution, there was widespread worker exploitation and minimal formal HRM procedures. The evolution of HRM was a critical response to the shifting requirements of the workforce and the changing economic and social environment.

The Industrial Revolution

Managing workers at companies began at the time of the Industrial Revolution, during the late eighteenth century. Before this era, many large organizations existed, but without advanced technology, it was hard to maintain them. During this time, the work atmosphere was very unfavorable, and the employees used to put in endless hours in the company for very little pay.

The Industrial Revolution brought about discipline, monotony, materialism, job displacement, work interdependence, and impersonality. In economic terms, the revolution increased the accumulation of capital and goods to a large extent.

 

Trade Unionism

With the emergence of the factory system, the workers started to establish their own union on the basis of their common interest which was named as Trade Unions. The basic aim behind these associations was to protect the interest of the members and deal with the grievances of the workers that may arise due to child labor, long hours of work and pathetic working conditions.

Other working issues also became prevalent such as economic issues, fewer wages, worker’s benefits and other services. To give a backfire to these problems, the Trade Union did strikes, slowdowns, walkouts, boycott and so on as their underlined weapon. All these issues reflected the need for employee Grievance handling system, disciplinary practices; expand the benefits of employees, holidays and vacation time and defensible structure for a wage.

Social Responsibility

A humanistic, as well as paternalistic approach, was adopted towards the factory workers by the first decade of the 20th century. At the short note, it signifies that the worker is like a child for their owner and the owner is the father who took care of the entire labor.

Some additional facilities and concessions are given to the labor by the industrialists who were working on this policy such minimize the hours of working, improved working conditions, shelters to workers and so on. This is a social approach that was adopted to combat the problem of workers and it is considered as a welfare scheme to control the workers.

Scientific Management

FW Taylor introduced scientific management in the twentieth century.

‘Taylorism’, the scientific management movement pioneered by Taylor (1911), which was based on the belief that the most efficient way to do tasks was to remove the responsibility for how to do the work from the individual employee to engineers or managers (Armstrong and Taylor, 2014). He gathered that there was ‘one best way’ to handle every role in every company to make it run more efficiently and smoothly. Taylor examined the job and narrowed it down into essential elements, i.e. job specialization.

He believed that employees could be trained at one job role to become an expert, but he completely ignored the fact that doing the same job every day will get boring and mundane for the employees. During this Revolution, science and technology started being applied to all elements of work in modern industries.

 

The Development of The HRM Concept

The term HRM has largely taken over that of ‘personnel management’, which took over that of ‘labor management’ in the 1940s, which took over that of ‘welfare’ in the 1920s (the latter process emerged in the munitions factories of the First World War).

Attribute	HRM	Personnel Management
Focus	Strategic focus on managing people as valuable assets.	Operational focus on managing employees as resources.
Approach	Proactive and long-term approach	Reactive and short-term approach
Scope	Broader scope covering all aspects of managing people.	Narrower scope focusing on administrative tasks.
Employee Relations	Emphasis on building positive relationships with employees.	Focus on enforcing rules and regulations.
Decision Making	Decentralized decision-making involving employees.	Centralized decision making by management.

 

HRM largely replaced the human relations approach to managing people founded by Elton Mayo (1933) who based his beliefs on the outcome of the research project conducted in the 1920s known as the Hawthorne studies. Members of this school believed that productivity was directly related to job satisfaction and that the output of people would be high if someone they respected took an interest in them. HRM also shifted the emphasis away from humanism – the belief held by writers such as Likert (1961) and McGregor (1960) that human factors are paramount in the study of organizational behavior and that people should be treated as responsible and progressive beings. An early reference to human resources was made by Bakke (1966). Later, Armstrong (1977: 13) observed that in an enterprise ‘the key resource is people’ (Armstrong and Taylor, 2014).

 

(On HRM, 2023)

Generations of the Evolution Of HRM

Human Resource Management (HRM) has evolved over time to meet the changing needs of organizations and the workforce. Here are some of the key types of the evolution of HRM, those are;

Administrative HRM

Behavioral HRM

Strategic HRM

International HRM

Digital HRM

 

1. Administrative HRM

The earliest form of HRM was administrative, where HR was primarily responsible for record-keeping and compliance with employment laws and regulations.

This approach focused on transactional activities, such as hiring, payroll, and benefits administration.

2. Behavioral HRM

In the 1950s and 1960s, HRM evolved to focus on the behavioral aspects of managing employees.

 

This approach emphasized employee motivation, communication, and leadership development. It also saw the emergence of performance management systems, employee training and development programs, and team-building initiatives.

 

3. Strategic HRM

Strategic HRM emerged in the 1980s and 1990s as a response to the changing business environment.

This approach focuses on aligning HR strategies with business strategies and objectives. It emphasizes the development of high-performance work culture, the evolution of human behavior, talent management, and workforce planning.

BASIS FOR COMPARISON	HRM	SHRM
Meaning	Human resource management (HRM) implies the governance of manpower of the organization in a thorough and structured manner.	SHRM is a managerial function which implies framing of HR strategies in such a way to direct employee’s efforts towards the goals of organization.
Nature	Reactive	Proactive
Responsibility lies with	Staff specialist	Line manager.
Approach	Fragmented	Integrated
Scope	Concerned with employee relations.	Concerned with internal and external relations.
Time horizon	Short term	Long term
Basic factor	Capital and products.	People and knowledge
Change	Follows change.	Initiates change.
Accountability	Cost center	Investment center
Control	Stringent control over employees	It exhibits leniency.

 

4. International HRM

With globalization and the rise of multinational corporations, HRM has evolved to include an international dimension. International HRM focuses on managing employees from different cultures, in different countries, and with different legal requirements.

It also involves developing global HR policies and practices that balance standardization with local adaptation.

5. Digital HRM

In recent years, the evolution of HRM includes digital technologies and analytics. Digital HRM encompasses the use of HR information systems, online recruitment, e-learning, social media, and data analytics to enhance HR operations, improve decision-making, and optimize the employee experience.

These are some of the key types of the evolution of Human resource management, and it’s important for organizations to understand these changes and adapt their HR strategies accordingly to meet the needs of their employees and the business.

 

(KPMG US, 2021)

How have technological advancements impacted the development and transformation of HRM practices?

Technological Influence on HRM Development

Technological advancements hold a significant impact on human resource management (HRM) practices. They transform traditional methods, making HRM operations more efficient.

Recruitment Process Upgrade

One clear demonstration of this transformation is within the recruitment process. Online platforms now simplify job advertising and applicant sorting.

Convenient Training and Development Programs

Moreover, technology paves the way for convenient online training and development programs. These technological tools enable professionals to attain valuable skills at their convenience.

Employee Performance Management

Progress in technology also changes how HR manages employee performance. Various assessment tools now deliver precise, real-time performance data, enabling effective management decisions.

Paperless HR Operations

Technology also enables a shift towards paperless HR operations. Digital storage and data management systems eliminate the necessity for physical files, reducing cost and improving efficiency.

Improved Employee Communication

Lastly, advancements in communication technology foster workplace collaboration and employee engagement. This digital transformation ensures seamless information flow across different organizational levels.

The Shift to Remote Work

The advent of cloud computing facilitates remote work, allowing HRM to adapt to this new employment model. HR tools have been designed to track and monitor remote employees' performance, tasks and hours worked efficiently.

AIHR - Academy to Innovate HR ,2019)

Conclusion

Human Resource Management has evolved into several others over the years to address the changing workforce and business needs. From administrative HMR, to behavioral HRM, strategic HRM, international HRM, and digital HRM, each of these evolutions has emphasized a special concern and strategy of managing employees. HRM has been in between. Therefore, organizations must decide HR creative strategy doing business in the new work or conducting their employees. This step is essential for establishing a high-performance work culture, proper talent management, and achieving the business’s objectives.

Technology provides a platform to practice HRM practices in an efficient, time-saving, and cost-effective manner. However, HR personnel should remain updated with the technology to access the benefits. In conclusion, an understanding of technology’s powerful role in HRM is essential to for an organization in the current world. The role will continue to be more vital as the digital world continues to expand.

List of References

 

AIHR - Academy to Innovate HR (2019) The future of HR is digital. Are you ready? [video]. Available from https://youtu.be/gdqQfTQOLaE [Accessed on 30 March2024]

Armstrong, M (1977) A Handbook of Personnel Management Practice, 1st edn, London, Kogan Page

Armstrong, M. and Taylor, S. (2014). Armstrong’s handbook of human resource management practice. 13th ed. KoganPage.

Bakke, E W (1966) Bonds of Organization: An appraisal of corporate human relations, Archon, Hamden

Boxall, P F and Purcell, J (2003) Strategy and Human Resource Management, Basingstoke, Palgrave Macmillan

KPMG US (2021) Future of HR role of the future: Data Scientist[video]. Available from https://youtu.be/JxnfMgCC3-Q [Accessed on 30 March2024]

Likert, R (1961) New Patterns of Management, New York, Harper & Row

Mayo, E (1933) The Human Problems of an Industrial Civilisation, London, Macmillan

McGregor, D (1960) The Human Side of Enterprise, New York, McGraw-Hill

On HRM (2023) History, Evolution and Development of Human Resource Management[video]. Available from https://youtu.be/LZdxWm1eBpQ [Accessed on 05 April 2024]

Paycom (2021) HR:evolution: The Position of HR[video]. Available from https://youtu.be/LZdxWm1eBpQ [Accessed on 05 April 2024]

Watson, T J (2010) Critical social science, pragmatism and the realities of HRM, The International Journal of Human Resource Management, 21 (6), pp 915–31