EVOLUTION OF HRM (PERSONNEL TO HRM )

THE EVOLUTION OF HRM :

The evolution / development of HRM goes back to 400 BC in the era of industrial revolution when factories established personnel departments to look into wages and welfare of workers.

 

THE PERSONNEL MANAGEMENT APPROACH :

The Personnel Management approach that remained in vogue for much of the 20th Century remained administrative in nature. 

Arising out of the need to enforce statutory compliance, it concerned itself primarily with :

• Employee record keeping. 
• Adherence to the stated policies while implementing functions such as recruitment, training and wage administration.
• Taking welfare oriented measures such as providing medical care, vaccinations, housing facilities.
• Attempting to increase productivity through wage increases and training, and enforcement of standards derived from work studies influenced by the scientific management approach promulgated by Frederick Taylor .
• Dealing with trade unions and trying to solve industrial disputes through collective bargaining and other industrial relations approaches.
• Conducting performance appraisals or report card of past performance to determine pay and promotions.

The Personnel Management approach tried to convince workers of the business interests, and convince management of workers interest and social obligations. It rarely had a direct say in the company’s strategy and did not involved itself with operations aspects, remaining a purely staff function.

THE STRATEGIC HUMAN RESOURCE APPROACH :
THE MODERN ERA HRM :

The evolution of Human Resource Management took a new turn at the end of the century. Increased free market competition at global level and the proliferation of technology and knowledge based industries raised the importance of human resources, and from an obscure role a century ago, human resource management rose to become the most critical function of an enterprise.

The workforce, hitherto considered as “resources” now became “assets” and a valuable source of competitive advantage. The thrust of human resource management now lies in trying to align individual goals and objectives with corporate goals and objectives, and rather than enforce rules or dictate terms, act as a facilitator and promotes a participative approach.

These changes influenced Human Resources functions in many ways :

• New dimensions for training and development function by encouraging and facilitating innovation and creativity. 
• Performance and Talent Management displacing performance appraisals
• Strategic Human Resource Management blurs the distinction between a specialized Human Resource Management function and core operational activity, and very often, Human Resource 
• Management drives interventions such as Total Quality Management and the like.
• Motivation through enriching the work experience .

  DIFFERENCE BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT (HRM):

BASIS	PERSONNEL MANAGEMENT	HRM
1. APPROACH OF MANAGING	Personnel management is a traditional approach of managing people in the organization.	Modern approach of managing people and their strengths in the organization.
2. FOCUS	Focuses on personnel administration, employee welfare and labor relation.	Focuses on : acquisition, development, motivation and maintenance of human resources in the organization.
3. ASSUMPTION	Personnel management assumes people as a input for achieving desired output.	Human resource management assumes people as an important and valuable resource for achieving desired output.
4. FUNCTION	Under personnel management, personnel function is undertaken for employee's satisfaction.	Under human resource management, administrative function is undertaken for goal achievement.
5.JOB DESIGN FUNCTION	Under personnel management, job design is done on the basis of division of labor.	Job design function is done on the basis of group work/team work.
6.EMPLOYEE TRAINING	Under personnel management, employees are provided with less training and development opportunities.	Under human resource management, employees are provided with more training and development opportunities.
7.DECISION MAKING	In personnel management, decisions are made by the top management as per the rules and regulation of the organization.	In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc.
8.CONCERN	Personnel management is concerned with personnel manager.	Human resource management is concerned with all level of managers from top to bottom.
9. TYPE OF FUNCTION	Personnel management is a routine function.	Human resource management is a strategic function.