Human resource management has evolved over time, starting with the welfare of skilled and unskilled slaves and soldiers 5,000 years ago. It has evolved from strict discipline and close monitoring of the workforce in the 4th century BC to the modern era of industrialization, where factories became more complex. Frederick Winslow Taylor led the era of scientific management, which focused on breaking jobs down into small, repetitive tasks for unskilled workers. This approach acknowledged the different skills and cognitive abilities of workers and the need to consider group dynamics in the workplace. Managers today must balance economic and technical conditions with human conditions, considering psychological and sociological theorization. As a result, managing people is a challenging practice that evolves over time.
The historical evolution of HR can be drawn into six phases:
Phase I: Pre-Industrial Era (1400-1700 AD): The period from 1400 AD to 1700 AD saw significant changes in human resource management, including the cessation of feudalism, shift from subsistence agriculture to a commercial mixed economy, urbanization, and the rise of a middle class. This period was marked by limited production, limited specialized crafts, and limited communication channels, which laid the groundwork for modern human resource management.
Phase II: Industrial Revolution and Factory System (1700-1900 AD): The Industrial Revolution transformed the economy from agriculture to industry, leading to modernization and increased communication. It began in the 18th century in the UK and 19th century in the USA, replacing human effort with machine work. The factory system led to autocratic personnel practices, focusing on maximizing employer profits. The growth of the Labour Union (1790) and the establishment of labour unions prompted the emergence of the Industrial Relations Department to address labor issues and management.
Phase III: Scientific Management, Welfare Work and Industrial Psychology (1900-1935 AD): Scientific Management and Welfare Work, both originating in the 19th century, merged to form Human Resource Management after World War I. Scientific management focused on worker training, wage uniformity, and productivity improvement. Hawthorne studies shifted focus from productivity to efficiency and work satisfaction. Welfare work aimed to improve workers’ conditions and address labor problems, while Industrial Psychology applied psychological principles to increase efficiency. The International Labour Organization was established in 1919 for social justice.
Phase IV: Golden Age of Industrial Relations and Personnel Management Maintenance Function (1935-1970): After World War I, the need for Human Resource Management increased due to the growth of unions and collective bargaining. From 1945 to 1970, the focus shifted to industrial relations, leading to a golden age between 1948 and 1958. Theories like Abraham Maslow’s Hierarchy of Needs and Douglas McGregor Theory X and Y influenced this shift, promoting a more dynamic approach that valued workers as valuable resources.
Stage V: Control of Labour Tradition (1970-1990): Trade unions emerged in the 19th century to protect workers from injustice and exploitation during industrialization. The labour movement formed political parties and struggled politically and economically. Employers integrated the labor class into society, leading to their rise in prominence in the 20th century.
Phase VI: Professional Tradition (1990- till date): Personnel management has evolved from a functionless business to a professionalized approach, focusing on demographics and workforce shortages. Today, Strategic Human Resource Management (SHRM) plays a strategic role in aligning individual goals with corporate objectives, aiming to make long-term impact on an organization’s success, especially in the era of technology and knowledge-based industries.