EVOLUTION OF HRM

There is no magic in the success of companies. The secret of success is simply the way they treat their employees! -Akio Morito, Founder, Sony Corporation

By, Savita T Navya Theja Navya Siddarth Nagalakshmi

HISTORY

HRM has been a concept that was utilized ever since human beings started following an organized way of life. Some of the vital principles of HRM were used in prehistoric times. Knowledge was recorded and passed on to the next generation about safety, health, hunting, and gathering. 1000 B.C. to 2000 B.C. The Chinese are known to be the first to use employee screening techniques, way back in 1115 B.C. As early as in 1800 BCE itself, minimum wage rate and incentive wage plan were included in the Babylonian code of Hammurabi (present day Iraq). In India too, there has been evidence of the concern for the welfare of workers and also the need to manage them from time immemorial. Kautilyas (Chanakya) Arthashastra written in 300 BCE, had procedures outlined for the selection of ministers and Government officials and pay scale management of workers during the Mauryan Empire.

KATHRYN MCKEES CLASSIFICATION

Kathryn McKee has identified four stages in the evolution of HRM Mechanistic Period(1900s - 1950s): This is the period from 1900-1950s when manufacturing was the driving force in industry. The main focus was on administrative functions such as recruiting, dismissing, paying, dealing with labour unions and keeping records. Management of people was guided by the principles and ideas of scientific management advocated by Fredrick W. Taylor and Henri Fayol. As such efficiency was more important than human relations. Legalistic Period (1960s-1970s): This legalistic period was characterized by legislation in the civil,

social, political and employment areas. This involved regulation of the employment and labor markets through laws and policies. This period also ushered the computerization of HR information. Organistic Period (1980s): This is the period where globalization took place as a result of it gave rise to technological change which led to mergers, acquisition of organizations. Work force became more diverse as a result of immigration expansion of cross border business, more educated workers with increased awareness. Strategic Period: This is a period of more complicated organizations with complex structures and networks. The hallmarks of this period have increased competition due to globalization hence the need for survival. Organizations adopted strategic planning. The role of HR was elevated to the highest level in the organization reporting to CEO and Board of directors.

During the early 70s there was no division called HRD, there was a division which is called only personnel More focus on welfare of labors in organisation whose officers were in turn called Welfare officers. Administration shifted to men from women due to complexity. In the late 1970s due to change in the economic of the world organisations started considering labours work. At the decade 80 the concept of HRM was started and personnel management was shifted to HRM.

IN INDIA

In modern India, interests of workers were protected by appointing labour welfare officers in 1931. The Factories Act came into being in 1948, which made the appointment of labour officers compulsory. Labour welfare measure, industrial relations and personnel administration were all combined to ensure the interests of people and this came to be known as Personnel Management. But the five year plans which began in 1951, gave a thrust to economic activity. In 1970s, focus shifted from concern of welfare of people to performance of organizations. In 1980s, Personal Management came to be known as Human Resource Management as employee performance mattered more now.

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