The History of Human Resource Management
INTRODUCTION.
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This assignment traces the history of Human Resource Management from
the Industrial Revolution in the 18th century to present times.
The assignment discusses key periods and movements in this field and
expands on their contribution to modern Human Resource Management.
In discussing the history of Human Resources Management it is
important to offer a definition of the subject. Human Resource
Management can be described as "The comprehensive set of managerial
activities and tasks concerned with developing and maintaining a
qualified workforce - human resources - in ways that contribute to
organisational effectiveness." (DeNisi and Griffin, 2004)
A HISTORICAL REVIEW.
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The Industrial Revolution.
The momentum for the industrial revolution grew through the 17th
century. Agricultural methods were continually improving, creating
surpluses that were used for trade. In addition, technical advances
were also occurring, for example the Spinning Jenny and the Steam
Engine. These advances created a need for improved work methods,
productivity and quality that led to the beginning of the Industrial
Revolution.
Adam Smith.
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In 1776, Adam Smith wrote about the economic advantages of the
division of labour in his work The Wealth of Nations. Smith (1776)
proposed that work could be made more efficient through specialisation
and he suggested that work should be broken down into simple tasks.
From this division he saw three advantages:
- the development of skills
- time saving
- the possibility of using specialised tools.
Smith's suggestions led to many changes in manufacturing processes.
"…every individual necessarily labours to render the annual revenue of
the society as great as he can. He generally, indeed, neither intends
to promote the public interest, nor knows how much he is promoting it.
By preferring the support of domestic to that of foreign industry, he
intends only his own security; and by directing that industry in such
a manner as its produce may be of the greatest value, he intends only
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
Noe, Raymond A., et al. Human Resource Management: Gaining a Competitive Advantage. 7th ed. New York: McGraw-Hill/Irwin, 2010. Print.
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
Noe, Raymond A., John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright. Human Resource Management: Gaining a Competitive Advantage. 7th ed. Boston: McGraw-Hill Irwin, 2010. Print.
Byars, L. L. (1997). Human Resource Management. Chicago, IL: The McGraw-Hill Companies, Inc. Mills, D. Q. (1994).
In dynamic, global competitive markets, successful organizations are likely to be staffed with managers capable of adapting to constantly evolving roles, and with the capacity to achieve and sustain optimal levels of performance. The global market place has currently impacted the practice of human resources management in the United States and will continue in the next ten years.
Human resource is the most valuable and unique asset of an organization. The successful management of an organization’s human resource is an exciting, dynamic and challenging task , especially at a time when the world has become a global village and economies are in a state of flux. The lack of talented resource and the growing expectation of the modern day employee has further increased the difficulty of the human resource function.
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
In this assignment I will be looking at the role played by the Personnel Management to Human Resource Management (HRM) for Sainsbury's and there historic developments. I will also be looking at how the existing HR function for Sainsbury's could be developed to work more effectively with the rest of the organisation.
Society is changing. The need for competitive advantage has become paramount for organizations to stay profitable in today’s economy. Gone are the days when providing a quality product or service at a reasonable price, was enough to be profitable. Maintaining the status quo will not allow the survival of these businesses. Globalization is gaining strength and momentum; increasing the need and pressure for cost efficiencies. Many organizations are re-evaluating their labor processes to find new cost savings and efficiencies. Estimates are that 47% of all current jobs will be replaced with automation (Giang, 2015).