Evolution OF Human Resource Management (HRM)

The pioneering work of Peter Drucker and Douglas McGregor in the 1950s laid its formal foundation. Modern concept of HRM has developed through the following stages.

(1) The Commodity Concept: Before industrial revolution, the guild system was the beginning of personnel management. Guild was concerned with selecting, training, rewarding and maintaining the workers. Labour began to be considered a commodity to be bought and sold. 

(2) The Factor of Production Concept: Employees were considered a factor of production just like land, materials, machinery. Taylor’s scientific management stressed proper selection and training of employees so as to maximise productivity.

(3) The Paternalistic(Trade Unions)Concept: Employees organized together on the basis of their common interest and formed trade unions to improve. Also employers began to provide schemes to workers. Employers assured a fatherly and protective attitude towards their employees.

(4) The Humanitarian Concept: It is based on the belief that employees had certain absolute rights as human beings and it is the duty of the employer to protect. It generated considerable interest in human problems of work place. This is also known as human relations concept.

(5) The Behavioural Human Resource Concept: It aimed at analysing and understanding human behaviour in organization. Motivation, group dynamics, organizational climate, organizational conflict etc. became popular under this concept. Employees began to be considered as valuable assets of an organisation. Efforts were made to integrate employee with the organisation so that organisational goals and employees aspirations could be achieved simultaneously

(6) The Emerging Concept: Now employers are considered as partners in industry. They are given share in company’s stock membership. Slowly and steadily, HRM is emerging as a discipline

Reference & Source: Indira Gandhi National Open University, School of Management studies- Study Material on Management of Human Resources