Explain the evolution i.e. historical background of personnel and human resource management.
Explain the evolution i.e. historical background of personnel and human resource management.
Ans.
Evolution or Historical Background
The historical growth of personnel management and later as human resource development (HRD) thought has been evolutionary. However, the base of modern sense of personnel management date back to the period of industrial revolution when large scale production was taken up due to invention of large scale use of machines. The problems were faced in dealing with workers and trade unions mainly in western Countries.
During the later part of the 18th century and earlier part of the 19th century had a vital influence on the development of industry. Industrial revolution was the result of inventions of many English scientists. The need for inventions arose because of the increase in the demand of products due to widening of markets followed by the geographical discoveries of the late 15th and 16th centuries.
The changes and challenges which necessitated the emergence of personnel management principles and practices were as under-
1. Large scale production in industries,
2. Employment of large number of workers in industries,
3. Migration of labour from rural areas to urban areas,
4. Rise of materialism,
5. Monotony and boredom in jobs,
6. Introduction of division of labour,
7. Growth of a new class of technical and professional employees etc.
Some management thinkers contributed to the development of management thought and personnel management to meet the above challenges. The contribution of management thinker towards effective utilization of human resource can be discussed below:
1. Contribution of Robert Owen – He was an outstanding pioneer as a management thinker. He started a factory at Manchester for the manufacture of textile machinery in 1800, he became the managing director of Chorlton Twist Company. He carried out experiments in the group of textile mills. He managed during the period 1800 and 1828 and introduced many social reforms. He began cooperative movement in 1828 in Rochdale, England. Robert Owen has been referred to as the father of personnel management.
2. Contribution of Charles Babbage- He was a leading British mathematician at Cambridge University from 1828-1839. He invented a mechanical calculator in 1822. His vision was that of improving efficiency through the application of scientific techniques of production and management. He advocated work measurement, cost determination and wage incentives. He is remembered as the inventor of the ‘analytical engine’. He stressed the importance of division of physical and mental labours, suggested the idea of profit sharing and began observing and timing work.
3. Contribution of Daniel C. McCallum- He tried to find solutions to managerial inefficiencies which were plaguing the railroads. Daniel’s approach to run the railroad was one of system, commonsense, reports and control. He initiated job descriptions and made promotions on the basis of merit.
Rising of factory system, the workers faced several problems. They got lower wages and worked under poor conditions. Workers organised themselves into trade unions so that they secure better wages and better working conditions. The basic philosophy of trade unionism was that through strength and collective support, the employers could be forced to listen to the workers and redress their grievances. The weapons used included strikes, slowdowns, walkouts, picketing, boycotts etc.
Sometimes, even physical force was used. Trade unionism influenced the personnel management. Due to the effect of trade unions, employers in the USA appointed welfare secretaries and also launched schemes for workers’ participation. They adopted paternalistic attitude towards the workers and launched welfare activities for the betterment of workers. In companies, personnel departments were set up around 1910 to look after various functions like recruitment, training, motion study, record-keeping, welfare etc.
During 1960s, modern personnel management was addressed as a child of scientific management. The scientific management movement commercial in USA around 1900 as a result of the efforts Taylor. Term personnel management or human resource management gained recognition. The literature available shows the recognition of the importance of organisation and administration in the bureaucratic set up. The growth of personnel management in USA and UK was evolutionary in nature. It took place because of the voluntary efforts of the employers. In countries like India personnel management grew because of compulsions made by the Government. In 1931, the Royal Commission on Labour recommended the abolition of jobber system and the appointment of labour officers in the industries. In 1948, the Factories Act made it obligatory for certain industrial enterprises to appoint welfare officers. Over the last several years or so, new techniques and styles of managing the human resources have been developed as a result of the researchers and experiences. The task of the personnel manager is not confined only to the recruitment of workers, but also to looking after their welfare and handling their grievances.
