EVOLUTION OF

HUMAN RESOURCE
MANAGEMENT
HRM, a relatively new term, emerged during the 1970s. Many of the people
continue to refer to the discipline by its older, more traditional titles such as
personnel management or personnel administration.

HRM, states that concern for the welfare of

workers in the management of business enterprises
has been in existence since ages.

Kautilya’s Arthasastra states that there existed sound base for

systematic management of resources as early as the 4th century
B.C
 Government then took an active interest in the operation of public and
private sector enterprises and provide employer-employee relationship.

As early as 1800 B.C ‘Minimum wage rate’ and ‘Incentive wage plan’
were included in the Babylonian code of Hammurabi.

Growth of the subject HRM only since the 1920s. This was the period
when state intervention to protect the interests of workers was felt necessary
because of the difficult conditions which followed the first world war, and
emergence of trade union

The royal state commission (1931) recommended the appointment

of labour welfare officers to deal with the selection of workers and to settle
the grievances.

The factories act, 1948 made appointment of welfare officers

compulsory.

IIPM ( headquarters in Calcutta ) and NILM (in Mumbai ) are the

two professional bodies were set up and these two places were the premier
centres of traditional industry.
 The aftermath of the second world war and country's political
independent witnessed increased awareness and expectations of workers.

During the 1960s the personnel function began to expand beyond the
welfare aspects, with the labour welfare, industrial relations and personnel
administration integrating into the emerging profession called Personnel
Management.

By the 1970s a shift from the concern of welfare to a focus on

Efficiency.

In the 1980s professional began to talk about the new technologies,

HRM Challenges and Human resource development (HRD).

IIPM and NILM merged in 1980s to form the National Institute of

Personnel Management.

In the 1990s the emphasis shifted to human values and productivity

through people and The American Society for Personnel Administration
(ASPA), was renamed as The Society for Human Resources
Management(SHRM).
PERIOD DEVELOPMENT OUTLOOK EMPHASI STATUS
STATUS S

1920s- Beginning Pragmatis Statutory, Clerical

1930s m of welfare,
capitalists paternalis
m
1940s- Struggling for Technical, Introductio Administrat
1960s recognition legalistic n of ive
techniques

1970s- Achieving Professiona Regulatory, Managerial

1980s sophistication l, legalistic, conforming
impersonal ,
imposition
of
standards
on other
function
1990s Promising Philosophic Productivit Executive
al y
HRM Model
The HRM Model contains all the activities of HRM.

When these activities are discharged effectively they will

result in competent and willing workforce who will help
realise organisational goals.

There is another variable in this model is Environment.

It is influenced by several external and internal forces like

economic technological, political, legal, organisational,
and professional conditions.
 Nature of HRM
Human resource planning
Job analysis
Recruitment
Selection
Placement
Training and development
Remuneration
Motivation
Participative management
Communication
Safety and health
Welfare and promotions
Industrial relations
Trade unionism
Disputes and their settlement
Future of HRM
QUESTIONS
Which are the two professional bodies ?

Which is the struggling period for recognition ?

HRM model activities result in ?

The royal commission recommends ?

Which act made appointment of welfare officers

compulsory ?