Tuesday, September 11, 2012

History of Human Resource Management

How long has Human Resource Management or HRM been around? We need to be specific about which of these three aspects of the question do we want to know?
  1. How long has the term HRM been used?
  2. How long have functions typically covered by HRM today been studied and managed?
  3. How long has there been a dedicated unit, department or system taking care of HRM functions?
Definition of HRM
Let's define HRM first. Basically HRM is concerned with the policies, practices and systems that influence employees' workplace behaviour, attitudes and performance. HRM is a process of managing human talents/skills to achieve the organisation's objectives. Central to HRM is the core aim of all management, to increase predictability and achieve better control of events related to people in the organisation.
Examples of processes typically handled by HRM are
  • Compensation and benefits
  • Industrial relations
  • Performance and appraisal
  • Safety, security and occupational health management
  • Staffing - Job analysis, recruitment, selection and retention
How long has the term HRM been used?
  • The term HRM evolved in USA out of the earlier Personnel Management or PM in the early 1960s.
  • Merriam-Webster dictionary claims that the first recorded use of the term Human Resource is from 1961.
  • By the mid 1980s the term HRM or Human Resource Management started appearing and quickly replaced Personnel Management.
How long have functions typically covered by HRM today been studied and managed?
The functions typically covered by HRM today, have a much longer history than is widely believed. Many writers claim that the term Performance Management or PM in organisations was created, first in the USA to deal with the paperwork needed to hire employees and handle the payroll.
Though they did not use modern terms, there are many recorded instances of current HRM functions being named in ancient texts.
  • The ancient Code of Hammurabi from Babylon in 1750 BC sets minimum wages, obligations for expert craftsmen to transfer their skills to apprentices, quality standards for builders, and healthcare obligations for owners of slaves.
  • The Roman philosopher Pliny the Elder in the first century AD, warned about the health hazards of handling zinc and sulphur and prescribed the use of protective masks made from animal bladder.
  • In 1556, the German scientist Georgious Agricola in his De Re Metallica describes occupational hazards and methods for improving occupational health.
But the modern usage comes from USA especially after WWII, when Personnel Management practitioners wanted to different PM from other managerial functions.

How long has there been a dedicated unit, department or system taking care of HRM functions?

The first recorded modern dedication of a separate unit or department for HRM is from 1901 in USA. The National Cash Register Co. faced a disruptive strike yet won the battle with the unions. After this, the president of the company, John H. Patterson, organized a personnel department dedicated to improving worker relations by handling employee grievances, discharges, safety and other employee issues.
Though they were not called such, people dedicated to HRM functions started appearing in the USA in the 1920s when mass production started spreading. Personnel administrators were often called welfare secretaries in the 1920s. Much of the modern theoretical work on HRM began around this period. The studies conducted by George Elton Mayo (1880-1949), especially the Hawthorne Studies is credited as the foundation of the Human Relations Movement in management.
Only after WWII can we find specially designated units taking care of typical HRM functions. In many Western countries, collective bargaining defined industrial relations and HRM gained in importance.
From the 1960s, the rise of Japan as a commercial power also required efficient HR systems being adopted by the Japanese corporations.
Globally, the profile of HRM started becoming widely recognised by the 1980s. Universities and Business Schools started teaching different aspects of HRM in the 1990s. Cornell University's School of Industrial and Labor Relations was the first business school in the world for college-level study in HRM.
In the first decade of 2000, there was a strong movement to see HR as a strategic partner to business rather than as a support function system. The most recent areas where HR has become involved are corporate social responsibility and sustainable growth as well as environmental concerns.

Human Resource Management Dissertation

Since there were demand and supply towards human resources, especially in the business world, whether or not it was for either supply and mobilization of simple manpower or effective use of expert manpower, it is generally agreed that the activities of effectively and efficiently making use of people’s skills and relevant ability to the work and ,going further, applying these things into practice have been regarded as an essential factor in competing with rivals and making more profit by it.

With the advent of the term, it is true that the term has been gone through the process of redefinition several times by many scholars. What is more, people have had slightly different ,or sometimes quite different, evaluation and opinion about effective value and usefulness of it.

This essay will deal with the question as to how the term ‘Human Resource Management’ has been perceived. It will look at its history and recent theories as well as making attempt to show its impact in Britain.

In order to define and fully understand the term ‘Human Resource Management’, it is important to trace its origin and phases it passed through. The roots of this profession can be found in the nineteenth century when pressure for reform of working conditions from members of labour movement and work of social performers like Robert Owen and Rowntree, which had been called the movement towards ‘industrial betterment’ made possible emergence of the earliest attempts at welfare policies. At the beginning responsibilities of the first welfare workers were mainly in “dispensing benefits to the deserving and unfortunate employees

Definition of Human Resource Management

We have defined the human resource and now its need to define the term human resource management. Management specialists have defined human resource management as below.


"The Process of analyzing and managing an organizations human resources needs to ensure satisfaction of its strategic objectives”


“The policies and practices involved in carrying out the ‘people’ or human resources aspects of a management position, including recruiting, screening, training and appraising.”




We can mention a business approach for the definition of human resource management as follows.

"a model of personnel management that focuses on the individual rather than taking a collective approach. Responsibility for human resource management is often devolved to line management. It is characterized by an emphasis on strategic integration, employee commitment, workforce flexibility, and quality of goods and services."

Also, it has defined as "All methods and functions concerning the mobilization and development of personnel as human resources, with the objective of efficiency and greater productivity in a company, government administration, or other organization." too.

HRM Understandings

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers.

HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.