The Evolution of Human Resource Management

The Evolution of Human Resource Management

Henry Gantt (1861-1919)

Frederic Taylor (1856-1915)

Robert Owen (1751-1858)

Charles Babbage (1772-1871)

• Best remembered for his task-and-bonus system and Gantt chart, comparing actual and planned performances.

• British professor of mathematics.
• Introduced idea of "work specialization"
• Devised profit sharing plan where bonuses were given for helpful suggestions of employees and wages were based upon profit of the organization.

• "Father of Scientific Management"
• Suggested that the use of scientific methods should be used to determine how specific job or task needed to be completed.
• Emphasized training employees for specific tasks .
• Established importance of harmonious relationships between employees and employers.
• Introduced "piece-rate incentive system" and "time-and motion" study.

• Successful British entrepreneur and pioneer of HRM in early 19th century.
• One of the earliest management thinkers to recognize how important HRM was.
• Believed workers performance depended on satisfaction.
• Proposed legislative reform that would limit amount of work hours per day, tried to improve living conditions of employees and restricted child labor.
• Argued that manager's best investment was in their workers.

What is Coming Next for HRM

Differences Between Personnel Management and Strategic HRM Today

Transition from Personnel Management to Strategic Human Resource Management

The Beginning of HRM: Industrial Revolution

First Signs of Human Resources

• Further Development of Globalization and Technology
• Areas in Need of Improvement:
• Fully developing HR's involvement in the company.
• Simplifying HR processes.

• Government intervened to introduce human rights and work safety.
• Factory owners were forced to comply.
• Factory owners and employers recognized that satisfied workers were more effective and productive.
• Competitive advantage.

• Chinese Government:
• Introducing recruitment and development of government employees.
• Ancient Greece: Sparta
• Training and developing military.

• Transitioned in the 1980's.
• Factors contributing to transition:
• evolution of employment legislation in 1970's
• changes in labor force demographics, technology, and globalization since 1980
• increased development of information and communication technology
• amplification of internet utilization and e-commerce.

• PM focused on immediate, short-term need of the labor force and traditional models of industrial relations.
• HRM considered a more developed and participative model focused on alignment of the needs of the workforce with the strategic objectives of the company.
• Shift from PM to HRM meant a shift from the activity reguarding knowledge of the value of employees to HR as a partner that contributes to significant business decisions, gives important advice and considers various aspects of employees.

Ancient Times

Personnel Management

The Future of HRM

HRM Today

Industrial Revolution

Strategic HRM Today

Personnel Management

The Beginning of HRM: Industrial Revolution

• Agriculture Industry was the leading industry before Industrial Revolution in 18th century.
• New factories required large amounts of workers.
• Workers treated like machines.
• Employee turnover rose significantly.

• HR Functions and Duties Today:
• Recruitment, selection and retention
• Training and development
• Compensation and benefits
• Performance evaluation
• Ensuring equal employment conditions
• Performing job analysis and HR planning
• Motivation
• Orientation
• Labor relations, safety, health and wellness.

• Used since 1920
• Concerned with:
• employee record keeping
• adherence to stated policies
• implementing functions like recruitment, training, and wage administration
• providing medical care, vaccinations, housing and facilities
• attempting to increase productivity through wage increase and training
• enforcing standards derived from work studies
• dealing with trade unions and industrial disputes
• conducting performance appraisals.

• Strategic Human Resources
• Goals today have shifted from quantity of activities to quality of outcomes.
• Aligns individual goals with corporate goals.
• Anchored to business strategy.
• Business within a business.
• Vision to create value.
• Increased globalization and technology development.

Theories X and Y

Elton Mayo (1880-1949)

• Introduced by Douglas McGregor in the 1960's.
• Two categories in which leaders deal with their subordinate:
• Theory X: Treats subordinates as avoiding responsibility, being indolent and needing supervision.
• Theory Y: Sees their subordinate as hard working an willing to accept responsibility.

• "Father of the Human Relations Approach"
• Conducted study at Western Electrics Hawthorn plant to evaluate attitudes and psychological reactions of workers in on-the job-situations.
• Concluded production has more of a function of attitude of workers toward one another and attention they received.
• Replaced Frederic Taylor's scientific management theory -- motivation is not always monetary.