Evolution of HRM

Management of human resources is an integral part for every concern. It is associated with the people at work and their relationships within and outside the enterprise.

In the recent years, the field of human resource management has undergone numerous technological advancements.

The ways in which human resources are managed has changed dramatically in recent years. The internet has made an impact on the overall functioning of human resource department.

The rapid development of the Internet during the last decade has boosted the implementation and application of electronic Human Resource Management (e-HRM).

The Internet has radically changed our social and economic lives, and has had a profound effect on the way organizations are managed.

For example, it has altered human resource (HR) practices and changed strategies for attracting and retaining employees.

HR processes and procedures have been supported by everything from complicated file-folder systems for automation, going from usage multiple systems and databases to a single version of the whole system.

It has progressed with frequent innovations viz; Human Resource Information System, Virtual Human Resource and Electronic Human Resource Management (E-HRM) etc.

E-HRM means conducting of business transactions by using the internet along with other technologies.

Evolution of Modern HRM and E-HRM

HR functions started nearly 90 years back when the first HR department was established in 1920. Since then, there have been constant improvements and development in this discipline. Functions of HR have enlarged over the past decades from record-keeping to involvement as a strategic partner.

Evolution of HR started with the Industrial revolution.

The industrial revolution had an influence on the practices used to control the workers. It was during this time, HR theories started developing. Increase in a production led to an increase in the work force and require more new policies to be adopted by managers to regulate the working environment.

With an increase in jobs, new job descriptions and specifications were developed.

At this moment in 1903, the first concept of HRM was established as Scientific management by Frederick Winslow Taylor which described workers as machines and the social aspect of human behavior was left unnoticed. According to, Scientific management concepts explained;

1. Workers have to match physically and mentally with the job.
2. Workers should be motivated to follow the procedures.

The social aspect which was left unnoticed was realized in the late 1920s and early 1930s during Hawthorne studies. With more widening in research areas of HR, the era of behavioral sciences emerged. During this era, the visualization towards the organization was changed. Employees and organizations were not considered as separate entities but together as an organization.

Behavioral applied science forms the basis for today Human resource and organization behavior. It was during the 1920s, the concept of scientific management was shifted to personnel management.

Experts were hired for keeping the records, maintaining payroll systems and look into other concerns related to employees. With the development in technology, economics, and workforce, the shifting of personnel management to HRM began between 1960 and 1970 and since then, HRM’ term is widely accepted, adopted and used all over the world.

Now, the organizations had a formal HR department with people expert in HR discipline. With time, businesses became more globalized. The changes in the business environment changed rapidly demanding more stronger, effective HR practices. More pressure fell on HR professionals from multiple stakeholders, competitors, and customers. It was during the 1980s, organizations realize that competitive edge can be attained from their strength of internal factors particularly the human resource. This leads to the emergence of totally new discipline named as Strategic HRM.’

Under strategic management, it was realized that human capital as an internal resource can help the firms to create value which was rare and difficult to imitate whereas external factors like technology, natural resources, and economies of scale can easily be replicate.

With this transformation of HRM to Strategic HRM, researchers and academicians began to describe how HR can play a strategic role in contribution to OE and thus, explaining the relationship between HRM and OE through various models.

The HR researchers identified and justified the role of HRM in the organization. The relationship between HRM practices and OE was recognized and acknowledged. HRM was researchers’ favorite topic for describing its alignment with the mission, vision, and strategies of the organization. It became a strategic player in its contribution to OE.

Sustainability was a new element added to the tasks of HRM. In today dynamic changing environment, sustainability is the most desired element for all organizations. To achieve sustainability, it needs to be out in the center of organizational strategy.

There is a need to incorporate an environment within the organization which leads to sustainability. Senior management needs to help HRM department in creating a sustainable environment. All departments need to be integrated completely as it affects all in the organization.

To make process flow faster and smoother, the introduction of technology in the organization is important. Technology developments can play a major role in contribution to OE and sustainability. With the advent of technology, HR functions will become more digitalized.

All processes were supported by technology. Now, HRM has become e-HRM.

E-HRM was developed with the objective to achieve high commitment, high competencies, cost-effectiveness and higher congruence for an organization towards a sustainable society.

Information and communication technologies (ICT) help firms integrate, process, communicate and access all information within organizations through intranet keeping intact the privacy and security of the confidential information.

This new state of technology will empower and encourage HRM to step ahead towards a sustainable society.