Development of HRM Concept

Development of HRM Concept

The development of human resources management concept is as follows:
1. Industrial revolution stage: Industrial revolution brought the three major developments
  • The development of machinery 
  • The linkage of human power to machine
  • The establishment of factories.
Due to the industrial revolution, people specialized in their job. Workers organized themselves into trade unions to achieve better conditions of employment. Labor laws were enacted to protect the interest of worker. Collective bargaining between labor and management was used to settle industrial disputes.
Robert Owen reduced working hours and built houses and schools for workers. After industrial revolution, problems related to human resources led towards taking care of employees. It can be considered as the first stage of human resources development.

2. Scientific management movement stage: This stage aimed at improving worker efficiency through proper selection, training and compensation. F.W. Taylor suggested the following tips
  • Individuals who are selected for the jobs should be physically and mentally ready to demand of jobs. 
  • Employees should not be called upon to work at the time that would be detrimental to their health.
  • Education and development of the workers, properly trained and developed workers produced best.
  • Incentive system to “earn more be performing more” properly paid workers.
  • Specialization through division of work to achieve efficiency.
3. Industrial psychology: An employee having positive attitude can faster industrial efficiency. Efficiency can be increased by testing intelligence test of the employee. Thus to increase the efficiency, human psychology should be studied through different test and should developed a good interest, and positive attitude on the work in them.

4. The human relation movement stage: This stage focuses people element in personnel management. Hawthorne studies serve as the beginning of human relation movement. It advocates the following personnel management aspects.
  • Participative management and teamwork.
  • Importance of social setting and group dynamics in employee productivity.
  • Need for improved communication among managers and employees.
5. The period of labor legislation: To control, direct and motivate the labor, there should be strong need of some kinds of legislation. The civil right act was passed in 1964. Discrimination law, pension laws, health and safety laws, federal regulatory agencies and their interpretive, guidelines, and cowed ruling affected virtually every aspect of employment.

6. Organizational development movement stage: The organization development (OD) movement of the 1960s and 1970s was closely associated with the concept of behavioral science. The OD approach concentrates on overall organizational effectiveness, especially with regard to process how people behave in situation where they are constantly interacting with one another. Team development and management of change were often important features of an OD programme. Particular attention was paid to the analysis of group process and OD consultants evolved methods of analyzing organization behavior, especially within and between group, and of solving conflict problems.

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