The Evolution in Human Resource Management (HRM)

What is Evolution of HRM?

Understanding how Human Resource Management has transformed over a period of time. It started with basic administrative features such as payroll and record keeping and has now evolved - focuses on a strategic role that smartly shapes employee experience, driving a better business culture, and cultivates organizational growth.

The process of HRM’s evolution briefly explains how the present HR isn’t just limited to personnel management but has evolved into a strategic partner involved in talent development, performance management, strategies of employee engagement, maintaining workplace wellbeing and contributing towards developing and enhancing organization’s long-term strategic initiatives.

Exploring the Evolution Of HRM

The evolution of Human Resource Management shows how organizations have slowly transformed the process of managing workforce from basic administrative tasks to following a strategic, data-driven task implementation globally. Below points highlight the stages of HRM since inception

Administrative HRM

This is the first stage of HRM, where the focus was kept majorly on record keeping, processing payroll, attendance tracking, employee document management, and compliance. However, the role was transactional and limited; the HR department was presented as a basic support and not as a long-term strategic contributor.

Behavioral HRM

This phase is influenced by human relations theory, focusing on understanding employee motivation, their behavior, leadership, job satisfaction, and teamwork. However, slowly the focus shifted from considering employees as just resources to valuing them more as individuals with psychological and social requirements.

Strategic HRM

By this stage, HR teams became a crucial part of every organization’s long-term strategy. Under this, HRs focus on talent management, performance management, syncing employee work goals, organizational development, and workforce planning. Individuals utilized these practices to gain a competitive advantage and stay updated with the enhancing market.

International HRM (IHRM)

HR expanded its domain, especially with the advent of globalization. Human resources expanded its domain and managed teams/talent globally with multicultural teams, consideration of international labor laws, and global mobility.

This process is inclusive of HR policies, supportive of multinational operations, and is mindful of the local cultural legal opinions alongside.

Digital HRM 

Driven by technology, HRM is currently in a stage where it utilizes HR analytics, automation, AI-driven bots for recruitment, digital onboarding, employee self-service portals, and cloud-based HR systems to enhance process efficiencies and elevate the experience altogether. The focus here is to create a more connected, agile, and future-ready workforce.

History behind Evolution of HRM

The history of human resource management is linked to multiple changes in the industry, long-term workforce expectations, and understanding the management philosophy as well. Every aspect reflects how organizations have progressed and upgraded their approach to managing people. Below listed are the specific periods involved in evolution of human resource management

Industrial Revolution- 1850 to 1900

In the times of industrial revolution, all kinds of large-scale factories completely replaced small shops which in turn lead to a mass employment drive for workers. During this phase, HR practices were minimal and majorly focused on

• Hiring labor
• Managing working hours
• Handling wage payments

Employees were majorly viewed as a source of production and not an imperative resource, even the working conditions weren’t favorable which highlighted depleting or limited concern over employee welfare.

Period of Trade Unionism – 1900 to 1970

As the times progressed, workers faced explicit exploitation and working environments which weren’t favorable enough. In those times, unions would come together to protect employee rights. This emphasized the awakening of:

• Labor laws

• Fair wages for workers

• Job security

• Better working conditions for employees

Unions came together to protect various other employee rights, all pertaining to workforce welfare. In these times, personal departments were curated to manage industrial relations and ensure the adherence to compliance with the regional labor laws.

Social Responsibility - 1970 to 1990

Until the times reached 1970, the organizations started recognizing their responsibility towards employee welfare and the overall societal impact. The HR practices expanded and started including:

• Health and safety measures

• Implemented employee benefits such as equal opportunities, worker training, maintaining work-life balance, and more
  

The basic focus by then was shifted towards employee development and wellbeing, from the classic approach of conflict management which was followed and preached earlier.

Scientific Management-1990 to 2000

Demanding a clear focus on efficiency and productivity theories, this phase of scientific management emphasized: 

• Standardization of work processes 

• Streamlined performance management 

• Improved job design  

• Introduced incentive-based compensation 

Human resources/HR started utilizing structured systems for multiple aspects such as recruitment, appraisal, and employee development training to elevate employee efficiency and channel organizational output.

Introduction of Modern HRM - 1990 to Present

The present stage where HRM visualizes employees as a strategic asset rather than just an expenditure or a cost in business. The HR plays a pivotal role in:

• Talent management

• Leadership development

• Fostering a better organizational culture

• Enhancing employee engagement

• Improving HR analytics
• Organization’s digital transformation

Right from 1990 to the present situation, HR teams have their focus straight on technology, globalization and data-driven decision making.

What are the Key Responsibilities of Modern HRM?

The modern HRM comes with multiple features and responsibilities that resonate with modern-day HR issues and focus on preventing any sorts of challenges involved in the process. Listed below are the key responsibilities of today’s digitized and modern HRM.

• Recruitment

Recruitment can be considered as a major responsibility of the modern HRM as it facilitates the HR team in multiple functions like attracting talent, sourcing candidates, assessing profiles, and selected the most appropriate candidate as per the preset criteria, creating a sync between organization’s long and short-term goals. Here, HR utilizes multiple aspects such as employer branding, digitized platforms, data-powered hiring tools, and most importantly goal-synced interviews that ensure the best candidate fit while promoting diversity and extreme fairness.

• Onboarding

Onboarding is a tedious yet extremely imperative process which includes bringing new employees to join the organization. While talking in terms of modern HR, today’s teams focus on creating a smooth and engaging onboarding experience with the help of streamlined orientation programs that aren’t just a powerful way of introducing organizations policies but also an imperative factor to emphasize on role clarity, employee training, cultural alignment, and an imperative process to help new hires in becoming productive and engaged simultaneously.  

• Performance Management

This process involves the basic aspects of understanding and managing employees’ performance. This involves setting clear and precise employee goals, monitoring progress, providing smart and continuous feedback, and evaluating employee performance alongside. Leading HR organizations focus on providing a transparent yet impactful employee performance management through mapping organizational objectives with the employee’s individual professional goals rather than focusing on just one in a year/periodic appraisal.