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The evolution of human resource management as a distinct profession dates back to to the
industrial revolution when factories established personnel departments to look into wages
and welfare of workers. The Personnel Management Approach gave way to the Human
Resource Approach. Read on to learn more
To understand the evolution of Human Resource Management, one must first understand
its basis. The origins of workforce management lies in the arrangements made for the
welfare of apprentices working with the master craftsmen in the putting out system that
prevailed during the medieval ages. The industrial revolution that led to the establishment
of factories displaced the putting out system.
The workers in the early factories faced long hours of works under extremely unhygienic
conditions, and mostly lived in slums. This soon resulted in several labor riots, the most
famous being Ludds riots of 1811 in Nottingham, England, precipitated by reduced
wages. The government soon intervened to provide basic rights and protections for
workers, and the need to comply with such statutory regulations forced factory owners to
set up a formal mechanism to look into workers wages and welfare, and redress other
issues concerning labor. This led to the emergence of Personnel Management as a distinct
profession.
All these changed soon led to the transition from the administrative and passive
Personnel Management approach to a more dynamic Human Resource Management
approach. This new approach considered workers as valuable resources, a marked
improvement from the earlier approach of considering them as mere cogs.
•The recruitment and skill enhancement of the workforce having a direct bearing on
organizational profitability, efforts began to increase worker’s commitment and loyalty.
•Motivation took the shape of challenging work environment, free holidays, creating an
active social community within the workforce, fringe benefits and the like, besides
monetary incentives.
•Training acquired a new “Training and Development” dimension with the focus on
behavioral training to change attitudes and develop basic skills rather than remaining
limited to inculcating work-related skills.
•Wage and Salary Administration became more complex with the introduction of
performance related pay, employee stock options and the like
•The report-card based performance appraisal systems become more proactive with new
techniques such as Management by Objectives, 360 degree appraisals and the like
•emphasis on leadership instead of managing
Image Credit: N Nayab
•Increased reliance on performance based short term contracts instead of long term
employment
•Direct linkage of compensation to the profitability of the enterprise and the employee’s
contribution towards such profitability
•New dimensions for training and development function by encouraging and facilitating
innovation and creativity
•Motivation through enriching the work experience
•Performance and Talent Management displacing performance appraisals
Strategic Human Resource Management blurs the distinction between a specialized
Human Resource Management function and core operational activity, and very often,
Human Resource Management drives interventions such as Total Quality Management
and the like.
Staff and Line Functions Defined. "Generally, a line function is one which is involved
in or contributes directly to the main business activity of a firm…. [While] Staff
functions are those functions which help or assist line functions accomplish the primary
objectives of the enterprise. They are activities which are indirectly related to the major
objectives of the firm" (Carvell, HRB p178). Additionally, Line functions are those
activities that give definition to the organization structure and which ensure that the
product or service is produced and reaches the customer at a profit. Whereas, Staff
functions are subsequently added to assist Line managers in accomplishing their goals.