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In the competitive environment of open economy human resource management with the increased modern
trends becoming significant factor for the efficient running of organization Human resource management
emerged from personnel management and personnel management emerged from manpower planning. The
consideration of changes taking place in managing human resource led to adaptation of strategic HRM the
consideration of strategy and HRM system jointly led to the emergence of strategic human resource
management SHRM which is crucial for achieving a corporation¶s long term goal. This article attempts to
bring the historical evolution of HRM and changing roles of HR professional from time to time in order to
considered employees as an important assets which helps in attaining goals of the organization. The article
finally draws attention to the fact that SHRM and not PM or HRM are people considered for modern
industrialization that is to be used for creating and sustaining competitive advantage for the firm.





American writers Terrey and Franklin (1996) mentioned about the 6 Ms of management, viz. Men and
women, material, money, market and method. But among these, men and women - the only living being-
do the effective coordination and utilization of these human and non-human resources. All the activities of
any enterprise are initiated and

Human resource gained more attention as the workforce considered to be an important resource to
gain competitive advantage of organization and also it helpful in utilizing the resources of an organization to
a optimum extent in order to achieve organizational goal.

Managing human resource is an complex process. As Harzing and Ruysseveldt said a better way to
understand the philosophy of human resource management demands a thorough understanding about the
evolution of the concept itself from the ancestral concept personnel management. In 1990 due to liberalized
government policies of various countries the human resource started floating from one country to another
this led to diversification of workforce and cross culture took place as a result employees from one nation
migrating to another nation and bringing their culture with them this led to mixed organization culture so
the HR professional has to play major role in coordinating the workforce of different culture in an
organization.

Approaches towards recruitment of staff focused to geocentric from ethnocentric and polycentric
which is more efficient because workforce will be selected based on talent regardless of nationality. Method
of recruiting also changed towards efficient policies like using of head hunters, cross national advertising, E-
recruitment.

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Evolution of Personnel management started in 19th century at that time there was a
boom in industrialization which leads to increase in franchising and influence of trade unions and harshness
of industrial condition called for the better of industrial condition. There was no department as such for
taking care of above problem only welfare officers came into being to take care of above situation. These
welfare officers were only women¶s who take care of protectionism of women and girls because they feel it
as worthy if women employee are sick they visit their home give food accommodation give moral welfare. As
the role of women increasing like they were getting employed in modern industries where their work is
packing assembly or other routine job so the quality required by these women employee increased so these
welfare officer who were women their responsibility also increased that is to recruitment training
development.

But ambiguity has been increased due to increased in production and also increased in paternalistic
behavior relationship between employer and employee and also aiming at moral protection of women and
girls and also side by side the aim of achieving economies of scale is also increased like achieving higher
output by minimizing cost by resolving grievances control of sickness these leads to mixed aim of achieving
organizational objective in order to achieve but at that time their was only a handful of welfare officer was
their they wanted to improve the condition of working of women in 1900 there were only few welfare officer
was their but in 1913 number of welfare officer has been increased to take care of the situation.


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The exact growth of personnel management started during First World War because the number of
munitions manufactured at a large scale so the number of employees needed to manufacture increased on
the other hand the welfare officer also increased by 1300 to take care of employees it also sought the supply
of labor to munitions factories as the supply of welfare officer made mandatory by government.

During war women recruited at a large scale to fill the gap of men who left the factories to joint
war which in turn leads to dispute labour union to employ unskilled women

The title labour manager or employment manager came in the yeat 1920 in engineering industry
and other industries where the factories was very huge to handle absence, recruitment, queries over
business and so on.

Companies started merger and acquisition as strategy to grow in the mid of 19th century due to
large number of employees employed they created their own specialist personnel department to unify the
different policies and manage absence and recruitment with the objective of improving productivity. But this
department is mainly concerned with hourly paid workers. As personnel management exist only in the
emerging companies like plastic, chemicals and multiple retail. But during 1930¶s the economy started to
grow at a rapid pace due to this big corporation came in to existence they feel to improve the value of
employee benefits like different kinds of allowances as a measure of retaining motivating employee.

SECOND WORLD WAR LEADS TO IMPROVEMENT IN PERSONNEL MANAGEMENT.

Second world war increased the importance of having personnel department because of producing large war
materials the ministry of labour and national services insisted to combine both personnel department and
welfare officer work on a full time basis. Again in second world war the number of women employees is
more to fill the gap left by men who join the battle field again re-training proper recruitment taken place
government saw the there is a huge neeed to have personnel department to take care of all employees in
well manner.
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As the industrial revolution take place simultaneously the factory system came in to being that
leads increase in working rules and regulation to large number to employees increase in the hierarchical
structure also increased in working hours but decrease in pay bad working condition, social distance
between employee and employer has increased, increased bureaucratization all these factor results in
increasing monotony boredom job displacement impersonality due to these factor personnel management
got higher attention.

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As in the Second World War the term employment manager started to take care of women employees the
combination of both welfare officers and employment manager leads to personnel management. Though in
the war times the productivity increased due to number of employment policies undertaken but the role of
personnel management during war time was small that to implement the rules demanded to produce large
scale goods but it was not focusing on other aspect of managing human resource that is by motivation,
promotion, increasing morale, performance appraisal etc but the role of negotiation of union has gain
important role.

But there is an increasing in the bargaining between employer and unions during pre world war.
During there is an enormous growth in an engineering industry but in 1950,s and 60,s there was an
enormous growth in other type of industry which leads to the increasing the role of personnel management
at same time large companies wanted to develop their own employment policies which suites to their
company which leads to improve emerging new aspect in personnel management.

The bargaining power of unions has increases which resulted in unnecessary official and unofficial
strikes which were damaging the economy particularly manufacturing industry in UK the strikes were in
huge number and it became famous in maintain poor industrial relation and the number of working days lost
due to strike which resulted in closer of number of factories. The situation becoming worse and worse it was
critical for both employers and unions due to this reason personnel manager was blaming for lacking of
negotiation skill to resolve these situation and plan for industrial relationship strategies because of these
deficiencies personnel management was not given high priority these leads to management to think
something higher profile which have all the skill to negotiate to motivate.

In the year mid of 1960¶s organization started giving much importance to employ the
personnel specialist to perform different activities in order to make the employees as a whole package to
perform in the organization. the world is becoming global village and labour started moving from one
country to another this resulted in managing the workforce diversity this become the challenge for the
personnel management to manage these workforce diversity.

In the year 1960 Even the domestic rules and regulation was increased towards
employability the new legislation was introduced towards employment, training, and redundancy payments,
equal pay opportunities, employment protection. The year 1960 was high inflation so there was a regulation
on wages paid by the employer personnel manager has to understand this new aspect of regulation
regarding inflation to develop policies to implement new measures which aligned with employee¶s
satisfaction level.

Improvement in selection training appraisal and new management techniques has been
expanded to improve the performance of the employees which demands to improve the profile of personnel
management.

Personnel management perform different function such as

j? Collective bargaining role

 j? Implementation of legislation role
j? Bureaucratic role
j? Social conscience of the business role
j? Growing performance improvement role

 
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The role of HRM has gain more important in the year 1980. There was a complete shift from
post war collectivism and towards individualism and changes in structure of economy. Some people thought
that HRM was evolved to solve union problem as there is an demand to take care of employees of an
organization as a whole it performs different function.

During 1990,s the success of large Japanese corporation in export market like automobiles
and electronic goods took surprise to many western companies but studies says that the success of these
Japanese firm is due to effective management of workforce the studies also shows that the workforce of
Japanese firm are more productive and efficient than western firm. The key to success of Japanese
companies like Toyota Matsushita are the practice adopted for efficient management of workforce as these
companies started opening its manufacturing plant in western countries the practice of these companies also
started practiced by western companies. The practice include are:

j? Strict and rigorous selection and recruitment

j? High level of training, especially induction training and on the job training
j? Team working
j? Multitasking
j? Better management-worker communications
j? Use of quality circles and an emphasis on right first time quality
j? Encouragement of employee suggestions and innovation
j? Single status symbols such as common canteens and corporate uniforms

The reason of above practice is create an organization atmosphere where workers can grow and
identify their own success and goal which match with organization.

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Job design

Focused on the individual

Focused on the team

Performance management

Measured standards for minimum performance

Higher ³stretch´ objectives

Management structure
Top down and hierarchical. Emphasis on management symbols

Flat organisation structure. Minimum status differentials

Compensation

Individual pay linked to job evaluation

Pay linked to skills and mastery

Employment

Employees viewed as variable cost

Assurances that participation will not result in job losses

Employee voice

Employee input allowed on a narrow agenda.

Employee participation enacted on a wide range of issues

Labour management relations

Adversarial labour relations

Mutuality with joint planning and problem solving

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Walton¶s control to commitment

(Source adopted from Walton 1985)

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Strategic human resource management is a branch of human resource management. SHRM means
combination of strategy and HRM. It also refers to linking of human resources with strategic goals and
objectives to achieve goals of an organization it also helps in improving the performance of innovation
flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR
function as a strategic partner in the formulation and implementation of the company¶s strategies through
HR activities.

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j? Linkage of HR policy with organizational strategy in order to achieve organizational goals and
objective
j? Linkage of individual HR intervention so that they are mutually supportive.
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j? Globalization and internationalization of market integration

j? Increased technological change
j? Cross culture issues
j? Increased competition
j? Increasing new concept


 


By doing complete analysis of evolution of HRM the conclusion is their will be modern trends will be
occurring in HRM like strategic human resource management it is mandatory for every organization to treat
all employees in a well manner because they are the assets of an organization which helps in achieving
organization goal.

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