HR Evolution, Development and Challenges
Late 19th Century Industrial era work welfare
Industrial revolution replaced cottage industries by large factories.
Increase in manpower caused by immigrant workers, resulting in need to supervision of large
number of workers.
Workers were controlled with force and fear.
Maximum workers exploitation and little concern for their safety or welfare were in this era.
Autocratic management systems and poor working conditions prevailed.
Child labor increased.
Gap between workers and supervisors widened, leading to more conflicts.
Early 20th Century:
1920:1930
Scientific management movement established by Frederick Taylor was emerged.
This movement was met by attack because it neglected human side.
Trade unions were strongly emerged to demand an increase in workers’ wages, a reduction in
work hours and a provision of democratic right to reject any unfair policies.
Various attempts at employee satisfaction begun to be implemented by applying Hawthone
studies.
1940:1960
World War II created an exceptional demand for labor and slowed temporarily growth of
unions.
Human Relations Movement shaped the management ethos of the time.
Welfare issues for workers were emphasized.
Official recognition of trade unions in various countries was in this era.
Enactment of a significant number of employment laws was in this era.
Late 20th Century:
1963-1980
Civil Rights Movement shaped the management thinking of time.
All forms of discrimination and ushered in equal employment opportunity was abolished.
Personnel management transitioned into human resources management.
Computerization of the HR function increased.
Human Resource Information System (HRIS) was developed
1980-1990
Introduction of the automation in the workplace was increased.
Efficiency and Effectiveness through adoption of technology in HRM were emphasized.
This era concerned on the worker value (if a worker is a virtual resource or he is an
necessary cost to minimize).
Early 21th Century:
This era is shaped by increasing globalization forces, rapid change occasioned by tremendous
technological breakthroughs.
Intellectual capital was recognized.
Strategies for recognition, rewards, motivation were increased
Greater awareness of the HR role as a strategic business partner was accomplished.
Improved strategies for attracting, retaining, development and engagement of talent were
emerged.
Workforce evaluation methods such as balanced scorecard and performance appraisal
techniques were emerged.
Present:
Organizations concern on contribution of HRM to competitive advantage
Human resource planning techniques, diversity and talent management, e-HR, e-training, e-
recruitment, and telecommuting are emerged.
HR does not stop after hiring an employee; Organizations try to empower the worker
according to their needs.
Organizations keep a warm atmosphere for their workers, encouraging them to implement in
group work.
HR departments in organizations hire trainers for developing the skill of their workers and
shaping them organization strategy.
HR departments give a lot of interest in taking into account the employee’s demand rather
than just company benefits.
Work culture changes in a different way, i.e. working at home becomes allowable.
Future and HR Challenges:
There are future HRM challenges which should be considered such as:
Attraction of Top Qualified Candidates
HR professionals should be able to get the best talent before the competitor gets.
The presence of social media made this matter more difficult.
Creation of future leaders
By giving the employees, opportunity to grow, future pillars of organization can be built.
Retaining new talents in an organization: learning and developing environment can make the
employee to tempt to be a part of the organization.
Globalization: HR needs to pay more attention towards wage difference between local
employees and the employees from other countries.
Accelerating Human Capital Investments: many countries invest in human capital and
develop the market of this investment.
Improvement of the psychological well-being of the employees
Interest in workers’ progress
Creation of transparent work culture.