History and Development of Human Resource Management - Essay Example

Introduction Modern organizations operate in a very dynamic and turbulent environment always trying to adapt to changes and retain competitiveness in the international market. Globalization has enabled organizations to operate in different parts of the world thus complicating the management of organizations further. For businesses to survive and achieve efficiency and effectiveness, the human resources who are the core of the organization need to managed effectively. The role of Human Resource Management has therefore gained a lot of importance in modern organizations. Traditionally, there was no clearly organized personnel management as most trades were carried out by individuals and their families (Koster, 2002). As time progressed and industries established, it became necessary to find innovative ways of managing human resources in order to achieve business success hence the introduction of personnel management which evolved into HRM and other concepts such as strategic HRM and international HRM. In view of this, the paper will discuss the history, development and the importance of HRM. History and Development of Human Resource Management Personnel management can be traced back to the time of Hammurabi, the king of Babylon who developed a code of laws that set wages for labourers (Bach & Sisson, 2000). Other aspects of personnel management were found in the way the craftsmen handled their trades and passed on skills to apprentices. There were no special people to oversee the work of others but each individual was responsible for his/her own work. However, as technology advanced the nature of work changed and also the manner in which work was managed. Most craftspeople started organizing into guilds to guard their trade from intruders and take care of the welfare of each other such as providing mutual insurance for those in need of assistance (Ivancerich, 2006). The industrial revolution which began in the middle of the 18 Th century changed the face of working relationship completely and prompted the search for ways of managing workers. It led to introduction of the factory system and wage labour instead of workers utilizing their skills to make items for sale on their own. They also started specializing in tasks as opposed to old system where one performed a range of tasks to complete an item hence interdependence of tasks (Koster, 2002). The nature of the factory system required rules to govern the behaviour of employees and to ensure they produced results hence the beginning of personnel management. The conditions under which individuals worked also changed in that they now worked in factories for long hours and low pay leading to dissatisfaction among workers and pressure for collaboration among workers to fight for their rights. Dissatisfied workers cannot be effective in producing the required output by factories. As such, people like Frederick Winslow Taylor began searching for new ways of managing workers so as to improve productivity and efficiency thus the introduction of scientific management (Koster, 2002). This involved analysing tasks and determining the skills needed for each task then selecting individuals to perform those tasks. However, individuals were trained on how to perform the tasks so as to improve efficiency unlike traditionally where each worker was responsible for developing his own skills. In this system, managers performed tasks which they felt they could perform effectively and left the rest to the workers but under close supervision. According to Bratton & Gold (2001), the scientific management laid the foundation for personnel management as work was performed according to principles; there was division of labour and concern about the welfare of the employees. Though scientific management was concerned with workers welfare, the industrial welfare movement was instrumental in the development of personnel management. The movement advocated for improvements in working conditions by ensuring reduction of working hours, provision of meals and staff housing, unemployment benefits and sick pay. However, these were to be carried out voluntarily by employers. The movement saw the installation of the first personnel officers to administer welfare programmes and the institute of welfare officers was established in 1913 in Britain which later became the Chartered Institute of Personnel Development which is prevalent today (Ivancerich, 2006). The CIPD ensures that personnel officers are qualified and up to date with current issues in HRM. The development of HRM was also influenced by the human relations movement which stressed the interpersonal relationships in the workplace. Besides better pay and good working conditions emphasized by the welfare movement, good relationships at the workplace contributed to productivity hence the beginning of the new HRM which stressed team work (Griffin, 2011). The work environment was also changing and required new ways of managing human resources to adapt to the changing environment. This required closer relationship and cooperation between the management and the workers unlike in personnel management where trade unions acted as link between employer and employee. It also required recruitment and selection of candidates who could adapt easily to the changing environment. Attraction and retention of talented employees thus became the central work of HRM. There was also a movement away from enhancing business success to ensuring the development of workers as well so as to improve their skills and gain their commitment. HRM also began concentrating on ways of enhancing motivation by rewarding and recognizing the efforts of individuals and improving communication between management and staff. Employee empowerment was also incorporated in HRM instead of use of unions and collective bargaining. Globalization and increased international competition coupled with growing complexity and size of the organization has led to a strategic HRM approach which involves aligning HR and business strategies for organizational effectiveness. Rather than rewarding employees based on jobs, the organizations link pay to performance which is evaluated on the basis of achieving organizational goals (Armstrong, 2008). The line managers also play a crucial role in managing human resources unlike in the past where personnel officers had sole responsibility to manage employees. The role of HR managers has also become complex as it involves managing employees not only locally but also internationally. Importance of Human Resource Management HRM is very crucial in organizations that aim at gaining competitive advantage and establishing a high-performance work culture. For the organization to function effectively it needs to have capable employees hence the role of HR managers of attracting and retaining talented employees is vital. Employees are the backbone of the organization thus needs to be managed effectively for better results. This involves recruiting and selecting the right people for the right job, motivating them, training and development and empowering them. HRM is also crucial in ensuring improved performance by putting systems in place that enhance productivity such as performance and reward systems, recognition programmes, as well as HR policies and procedures (Armstrong , 2008). There are also increased complexities due to globalization and poor HRM can result to detrimental results. Bauernberger (2007) acknowledges that organizations have to deal with diversity especially due to international cultures and hence need a sound HRM approach. A HR manager deals with people from different cultures thus have to understand the cultures and laws of those countries so as to be able to attract and retain talented employees and to avoid lawsuits which are costly. They also have to choose expatriates and this requires competence as expatriate failure is very costly (Griffin, 2011). HRM also ensures a highly committed and engaged workforce crucial for organization success through strategic HR policies and procedures. References Armstrong, M. 2008. Strategic Human Resource Management: A Guide to Action. 4th edn. USA: Kogan Page. Bach, S., Sisson, K. (Eds). 2000. Personnel management: a comprehensive guide to theory and practice, 3ed. Oxford: Wiley-Blackwell. Bauernberger, J. 2007. Human Resources in the Global Market. Germany: GRIN Verlag Bratton, J., Gold, J. 2001. Human Resource Management: Theory and Practice. 2 edn. London: Routledge. Griffin, R. 2011. Fundamentals of Management. 6edn. Mason, OH: Cengage Ivancerich, J. 2006. Human Resource Management. 10 edn. New York: McGraw-Hill Koster, M. 2002. Human Resource Management versus Personnel Management. Germany: Grin Verlag Read More