The Evolution of Human Resource Management

The Evolution of Human Resource Management

Human Resource Management (HRM) is the strategic management of an organization’s human capital to enable the organization to achieve its objectives.

After World War II, HRM’s history changed significantly. During this era, ideas of human rights and self-realization began influencing the well-educated workers. They believed in behaviorally oriented management philosophies that supported the integration of initiatives and ideas of workers into the organization. In 1947, the Taft-Hartley Act, also called the Labour-Management Relations Act, prohibited the practice of only hiring workers from unions, and gave the government the responsibility of being a mediator when disagreements between the management and unions arose (Nayab, n.d). These changes influenced the making of labor legislation like the Equal Pay Act of 1963, the Civil Rights Act in 1964, the Occupational Safety and Health Act of 1970, and the Employee Retirement Income Security Act in 1974 (Nayab, n.d). These acts amplified the importance of the HR function in organizations.

In the post-World War II era of 1945-1960, personnel management focused on improving efficiencies by increasing the productivity of employees through different methods of motivation and complying with legalities (Tara, n.d.). The recruitment and selection process was improved through proper job descriptions. Trade unions were officially recognized in more countries, and compensation and evaluation strategies were implemented. The personnel function increased to incorporate recruitment, training, benefits, labor relations, and government relations categories. Technology advanced to add in payroll, accounts, and inventory. Also, the first HRM software called the Comprehensive Occupational Data Analysis Program (CODAP) was made in the US to work on allocating roles and in the job description (Rotich, 2015).

In the Social Issues era of 1963-1980, the Civil Rights Movement influenced management thinking. The civil rights act of 1964 eliminated workplace discrimination and emphasized on equal opportunities for employment. There was a shift from personnel management to Human Resource Management. The HR function was computerized to improve storage, speed, accuracy, and reporting of HR information, and the Human Resource Information System (HRIS) was developed. There was also increased participation of employees in decision making, and more advocacy on the improvement of employee welfare (Rotich, 2015).

The Cost-Effectiveness Era of 1980 to early 1990s saw a move from employee management to employee development and involvement. The HRM function started applying new theories about motivation, managing change, and team building (Tara, n.d.). “Hard HRM” or the Michigan Model of 1984 emphasized on the value of employees in furthering the interests of the organization. It became the foundation for the traditional human resource approach. “Soft HRM” or the Harvard Model was also developed in 1984. Soft HRM emphasized on leadership through motivation and communication rather than managing them and viewed employees as assets who have more value than resources. It became the foundation for the strategic human resource management approach (Nayab, n.d).

Technological Advancement Era from 1990 to the present is shaped by globalization. Increased technological advancements and business competition demand efficiency. HRM became a strategic business function. Social media and the internet have improved learning of best HR practices and networking to gain competitive advantage and have made long-distance working possible. Strategic HRM is the current trend (Rotich, 2015).

Though HRM has positively evolved, it still faces modern-day challenges, mainly as a result of globalization. Foreign companies struggle to find suitable candidates because the influence of their values and culture can make them biased. It has become harder for HR managers to develop an organizational culture because of workforce diversity today. The pressure to remain competitive has increased conflicts and stresses in organizations, and today’s HR managers have to be excellent at conflict resolution to avoid any damages. Recent emphasis on business values and ethics means that HR functions have to ensure employees are ethical to ensure sustainability and good reputation of the organization. HR managers today have to be innovative in motivating and retaining employees since globalization has presented many opportunities (Nasir, 2017).

References

Duggan, Tara. (n.d.). The Evolution of HR. Small Business – Chron.com. Retrieved on March 13, 2020, from https://smallbusiness.chron.com/evolution-hr-61238.html

N Nayab (n.d). Exploring Early Human Resource Management History. Retrieved on March 13, 2020, from https://www.brighthubpm.com/resource-management/77387-a-history-of-human-resource-management/

Nasir, S. Z. (2017). Emerging Challenges of HRM in 21st Century: A Theoretical Analysis. International Journal of Academic Research in Business and Social Sciences, 7(3), 216-223.

Rotich, K. J. (2015). History, evolution, and development of human resource management: a contemporary perspective. Global Journal of Human Resource Management, 3(3), 58-73.