Evolution of Human Resource Management

The term human resources is used to refer to how people are managed by organizations. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. 1. Industrial Revolution The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions in the world. The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way. 1 During this phase machines were introduced into various organizations and technology made rapid progress. Due to fragmentation and specialization of work, many workers lost their jobs and many workers felt their work to be dull, boring and monotonous. Workers were treated like tools, and moreover employees were keen to increase the production targets rather than satisfy workers demands. 2. Scientific Management Scientific management (also called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes workflows, with the objective of improving labor productivity. The core ideas of the theory were developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his monographs, Shop Management (1905) and The Principles of Scientific Management (1911). Taylor believed that decisions based upon tradition and rules of thumb should be replaced by precise procedures developed after careful study of an individual at work. Its application is contingent on a high level of managerial control over employee work practices.2 # Propounders: Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth 3. Industrial And Organizational Psychology Industrial and organizational psychology is the study of the behavior of people in the workplace.3 Industrial and organizational psychology attempts to apply psychological results and methods to aid workers and organizations. I-O study identifies how behaviors and attitudes can be improved through hiring practices, training programs, and feedback systems.4 # Propounders: Munsterberg, Scott, Cattell

4. Human Relations Movement Human Relations Movement refers to those researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1920s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.5 George Elton Mayo (26 December 1880 - 7 September 1949) was an Australian psychologist, sociologist and organization theorist. The research he conducted under the Hawthorne Studies of the 1930s showed the importance of groups in affecting the behavior of individuals at work. He carried out a number of investigations to look at ways of improving productivity, for example changing lighting conditions in the workplace. What he found however was that work satisfaction depended to a large extent on the informal social pattern of the work group. Where norms of cooperation and higher output were established because of a feeling of importance, physical conditions or financial incentives had little motivational value. People will form work groups and this can be used by management to benefit the organization. He concluded that people's work performance is dependent on both social issues and job content. He suggested a tension between workers' 'logic of sentiment' and managers' 'logic of cost and efficiency' which could lead to conflict within organizations.6 # Propounders: Elton Mayo 5. Growth of Governmental Regulations Indian labor law refers to laws regulating employment in India. There are over fifty national laws and many more state-level laws. Traditionally Indian governments at state level have sought to ensure a high degree of protection for workers. So for instance, a permanent worker can be sacked only for proven misconduct or for habitual absence. In Uttam Nakate case, the Bombay High Court held that dismissing an employee for repeated sleeping on the factory floor was illegal - moreover, it took two decades to complete the legal process.7 For example, (a) the Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down. In practice, permissions for firing employees are rarely granted. (b) The Contract Labor Act (1970) prohibits companies from hiring temporary workers. Other examples are (i) Trade Unions Act 1926, (ii) Wages (1930s), (iii) Unionization (1940s, (iv) Minimum Wages Act 1948, (v) Weekly Holidays Act 1942, (vi) Employment (1960s) and (vii) Beedi and Cigar Workers Act 1966

All India Organization of Employers points out that there are more than 55 central labor laws and 100 state labor laws. 6. Professionalisation of HR Management Human resource management has become more professional than how it has been before. The features of human resource management as a profession are its existence of knowledge, professional ethics, and professional affiliations to HR societies. Evolution of Human Resource Management with Chronological Impact

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References 1. http://en.wikipedia.org/wiki/Industrial_Revolution 2. http://en.wikipedia.org/wiki/The_Principles_of_Scientific_Management

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3. http://july.fixedreference.org/en/20040724/wikipedia/Industrial_and_organization al_psychology 4. f http://wikirank.com/en/Organizational_psychology 5. http://en.wikipedia.org/wiki/Human_Relations_Movement 6. http://en.wikipedia.org/wiki/Elton_Mayo 7. http://en.wikipedia.org/wiki/Indian_labour_law

This teaching note was prepared (courtesy to all sources for the compiled portions of the teaching
note) by MR. Baby Thomas, Assistant Professor of Human Resource Management for MBA (Aviation Management) at Hindustan University, Chennai, India, as the basis for class discussion. 2011 BT-HITS