Late 19th Century Industrial Era Work Welfare++21

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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.

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