Evolution of

HRM

Group 2Akanksha Bansal

Atul Kumar Mishra

Kartik AgrawalPoorva VashishtShweta Shukla

PGDM-HR 2011-2013

International

Management Institute

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

• 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.

Industrial Revolution and

the Factory System

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

of Modern Corporation

and Managerial Capitalism

• Science, not the rule of thumb & Co-operation 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.

Scientific Management, Welfare Work & Industrial Psychology

• 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.

World War 1 & The emergence

of HRM as a profession

(1911-1914)

• Associated with Elton Mayo and Fritz Roethlisberger.• An alternative and opposite approach to scientific

management.• Importance of sociology and psychological aspects on

productivityThe Human Relations

Movement

• 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 Norris-LaGuardia act, National Labor Act (NLRA) and Wagner Act(1935).

The Personnel Management Maintenance (1935-1970)

• HR as an asset and not a liability• Policies and practices implemented to maximize the

performance of both employee and the firm.Quality of

Work Life Era(1960s-1970s)

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

The Emergence of

Contemporary HRM

Function(1970s-Present)

Pre- Industrial Era (1400s-1700s)

Industrial Revolution & Factory System

Modern Corporation & Managerial

Capitalism

Scientific Management,

Welfare Work & Industrial

Psychology

World War I & HRM as a profession

Human Relations Movement

Personnel Management Maintenance

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

Contemporary HRM Function

HRM Evolution Ladder

HR in 2020

However HR develops, understanding its

customer & segmenting services will determine

its success Understanding your workforce enables HR to

add value to business both now and in the

future

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

Lessons learnt from other’s experience will enable organizations to

jump steps on their evolution

HR has considerably evolved over the past

ten years

Thank You!