Evolution Workforce management

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Presentation transcript:

Evolution Workforce management

Overview The history of human resource management started with providing welfare measures to apprentices putting The first personnel department came in the early 20th century. Human resource management has evolved through the ages and gained importance with each passing age.

The earliest forms of human resource management were the working arrangements between craftsmen and their apprentices during the pre-Industrial cottage-based system. The apprentice lived in the workshop or home of his master, and the master took care of his health and welfare.

The Industrial Revolution of the mid-eighteenth century led to the emergence of large factories and the displacement of cottage-based manufacturing. The unhygienic and demanding work in factories led to many labor riots, and the government stepped in to provide basic rights and protections for workers. The need to comply with such regulations forced factory owners to set up a formal mechanism to redress issues concerning labor.

First Personnel Department The National Cash Register Company (NCR) established the first personnel management department to look into issues such as grievances, safety, dismissals, court cases, and also record keeping and wage management, in the aftermath of a bitter strike and lockout in 1901. Many other factories soon set up similar personnel departments. The role of such labor departments in factories was a continuation of their previous commitment to monitor wages, safety, working hours, and related issues, but this change meant there were formal personnel departments that ensured statutory compliance.

Personnel Management (Early 20th Century) By the early 1900s, increased competition and pressing demands to fulfill orders made factory owners take serious note of productivity, and issues such as employee absenteeism and high turnover came into focus. The dominant philosophy during this time was that employees would accept rigid standards and work faster if provided training and more wages. This approach led to Frederick W. Taylor’s scientific management theory that involved time studies in an attempt to establish the most productive way to undertake a process.

The personnel department during this time was a tool in the hands of the employer to ensure maximum productivity. Side-by-side with providing training and wages, it broke strikes by blacklisting union members and forcing workers to sign an agreement not to join unions.

Elton Mayo’s Experiments Elton Mayo, the father of human relations, had conducted his famous Hawthorne Studies (1924 -1932) and concluded that human factors or non-monetary rewards were more important than physical factors or monetary rewards in motivating employees. Trade unions now began to challenge the fairness of Taylor’s scientific management theories, forcing employers to take a more behavioral-oriented approach. Personnel programs now expanded to include new benefits such as sick benefits, vaccinations, holidays, housing allowances, and similar measures, and to implement the new behavioral-oriented theories.

World War II - Era World War II increased the importance of keeping factories running, and with most workers away in war, the workforce now began to include the women and native Americans. This laid the foundation for a multicultural workforce, and along with it, new challenges for the human resource department.

Traditional Human Resource Management (Late 20th Century) This era witnessed well educated workforce influenced by ideas such as human rights and self-actualization. They took the various behavioral oriented management philosophies to heart and adopting management philosophies that encouraged incorporation of worker ideas and initiatives.

Strategic Human Resource Management (21st Century) This era witnessed well educated workforce influenced by ideas such as human rights and self-actualization. They took the various behavioral oriented management philosophies to heart and adopting management philosophies that encouraged incorporation of worker ideas and initiatives.

In sharp contrast to the attitude of the early 1900s when workers were cogs in the industrial machine, the highly skilled knowledgeable workers of today control the machines, and with technology freely available, the skill of such workers becomes the major source of competitive advantage for firms. The human resource department tries to retain such knowledgeable workers by facilitating a conducive work environment, enriching the work, communicating objectives clearly, encouraging innovation, and many other behavioral interventions.