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Evolution of Human Resource Management

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EVOLUTION OF HUMAN RESOURCE MANAGEMENT

Objectives:

Explain the meaning and evolution of HRM

Identify the factors that have shaped modern HRM in organizations
HRM practices emerged during the industrial revolution in the 18th century
when factories employed a large number of people to operate machines.
Recruitment, payment and training became specialized activities, which
required specialized people to do them for the organizations.
Since then, the HRM function has evolved both in its functions, roles and even
in terminologies.
For example:
- Personnel administration
- Manpower management
- Personnel management
- Human resource management Kathryn McKee, cited in Brewster (2000), has
identified four periods in the evolution of HRM

1)Mechanistic period – This is the period from the 1900’s – 1950’s when
manufacturing was the driving force in industry. The main focus was on
administrative functions such as recruiting, dismissing, paying, dealing with
labour unions and keeping records. Management of people was guided by the
principles and ideas of scientific management advocated by Fredrick Taylor and
Henri Fayol. As such efficiency was more important than human relations

- Strategic human resource management


2)Legalistic period – This is the 1960’s – 1970’s which was characterized by
legislation in the civil, social, political and employment areas. This involved
regulation of the employment and labour markets through laws and policies
such as Africanization and Kenyanization in Kenya, Equal Opportunities Acts
in the USA and many others to regulate labour unions and employment
contracts. This period also ushered the

computerization of HR information.
3)Organistic Period–This is the period of organizational change associated with the
1980’s. Globalization as a result of technological change led to mergers,
acquisitions, downsizing and rightsizing of organizations. Workforce became
more diverse as a result of immigration, expansion of cross-border businesses,
more educated workers with increased awareness. These changes required
specialist personnel systems.
4)Strategic period – 1990’s – This is a period of more complicated organizations
with complex structures and networks. The hallmarks of this period are
increased competition due to globalization hence the need for survival.
Organizations adopted strategic planning. The role of HR was elevated to the
highest level in the organization reporting to the CEO and the Board of
Directors.
Reasons for Growth of Human Resource Management
Technical factors:

Industrial revolution – changes in the methods and techniques of production,
which
required new principles, and methods of dealing with them.

New experiments of social scientists - parallel work by social scientists,
anthropologists
and psychologists e.g. Taylor, Fayol, Mayo and McGregor influenced how
industries
managed workers.

Growth in the size of organizations – increased production, number of workers
needed
specialized departments to handle worker’s issues.

Labour Unions – after World War 1, trade unions developed in response to poor
working
conditions, exploitation, politics etc. Organizations were forced to cooperate.
Cultural and social /political factors:

Better workers’ education

Immigration – rural-urban, inter - country.

Labour mobility- across industries and organizations

Composition of labour in terms of gender, racial and age

Liberation/democratic movements e.g. independence, welfare states e.g. Russia
(communist countries
Others:

Change in managerial outlook – seeing labour as a partner rather than an enemy.

Change in form of business organization, mergers, acquisitions, MNC
More complex production techniques.

New policies, strategies etc due to globalization, competition etc.

Contribution of the social sciences – views and theories on human relations
have been
developed.
1.2
ROLE OF THE HR FUNCTION AND THE HR SPECIALIST
Relationship between personnel management and other organization’s functions
Objectives:

Distinguish between line and staff functions

Explain the staff functions of the personnel department

Discuss the sources of conflict between line and staff managers

Suggest how such conflicts may be overcome
Line Functions
Refers to those functions that contribute directly to the accomplishment of the
basic objectives of the firm. For example in a manufacturing firm, production,
quality control and procurement may be seen as line functions.
Staff functions
Refers to those functions of the organization that help the line to work most
effectively in accomplishing the primary objectives of the organization. These
may include HRM, research and development, purchasing and supplies, public
relations and finance.
The relationship between staff functions and other organizational functions is
advisory and consultative. They investigate, research, and give advice and
guidance. It is important to note that within even a staff department there are
line authorities – manager- subordinate. Hence a staff function also has line
authority within it. Staff function occurs only in relation to other
functions/departments in the organization.
Importance of understanding line and staff Authority

Staff sells ideas, persuades, advocates, and acts as change agents. e.g.
auditors or economists who advice the CEO

Line managers make decisions, command and issue instructions
through the chain of command.

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