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Transcript: The Evolution of HRM refers to the historical progression of how oganization manage their workforce, shifting from basic administrative tasks to a more strategic and integrated approach. EVOLUTION OF THE CONCEPT OF HRM 1.THE COMMODITY CONCEPT Before the industrial revolution GUILD SYSTEM was in operation, which was the beginning of personnel management. Guild was a closely knit group of workers, concerned with the selecting, training, rewarding and maintaining workers. Industrial revolution gave rise to the factory system. As a result, the place of work shifted from residence to factory and the management became separate from ownership. The close relationships between employees and owners were broken. Labour began to be considered as a commodity to be bought and sold. Wages were based on demand and supply . Government did very little to protect the workers HUMAN RESOURCES MANAGEMENT EVOLUTION 2. THE FACTOR OF PRODUCTION CONCEPT CONCEPTS 1. The Commodity Concept 2. The Factor Of Production 3. The Paternalistic Approach 4. The Humanitirian Concept 5. The Behaviourial HR Concept 6. The Emerging Concept Under the factor of productionconcepts, employees were considered a factor of production just like land, materials and machines. F.W. Taylor in his scientific management stressed proper selection and training of employees so as to maximise productivity. The employees were considered as mere operators of machines. However, this concept was an improvement over the commodity concept in so far as employees gained better working conditions and better earnings. 3. THE PATERNALISTIC APPROACH The patemalistic approach was based on the belief tat management must assume a fatherly and protective attitude towards employees .P aternalism does not means providing benef its but it means satisfying various needs of the employees as parents meet the requirements of the children. During this period, the employees organised themselves on the basis of their common interests and formed trade unions to improve their lot. e.g. . health facilities, pension plans , group insurance schemes, housing facilities, recreation facilities etc to this stage, employers and employces both began to realise that they cannot survive and prosper without eschs order) 5. THE BEHAVIORIAL HR CONCEPT 6. THE EMERGING CONCEPT The human resource concept was based on the belief that employees are the most valuable assets of an organisation. There should be a conscious effort to realise organisational goals by satisfying needs and aspirations of the employees. Several studies were conducted to analyse and understand human behaviour in the organisations These studies led to the application of behavioural sciences to the problems of individual and group behaviour at work. Efforts were made to integrate employees with the organisation so that organisational goals and employees aspirations could be achieved simultaneously. Motivation, group dynamics, organisational conflict etc., became popular concepts and the focus shifted towards management practices like two-way communication, management by objectives, role of informal groups, quality circles etc. The emerging concept aims at creating a feeling among workers that the organisation is their own. Employees should be accepted as partners in the progress of the organisation. To this end, management must offer better quality of working life and offer opportunities to people to exploit their potential fully. The focus should be on Human Resource Development Slowly and steadily human resource management is emerging as a special academic. discipline and as a profession. 4. THE HUMANITARIAN CONCEPT Under the paternalistic concept, the employer was providing welfare facilities to the employees as a favour. The humanitarian concept is based on the belief that employees had certain inalienable rights as human beings and it was the duty of the employers to protect these rights. To improve productivity, physical, social and psychological needs of the employees must be met. As Elton Mayo and others stated, money is less a factor in determining output, than group standards, group incentives and security. The organisation is a social system that has both economic and social dimensions. Hawthorne experiments generated considerable interest in human problems of the work place. This approach is therefore, known as human relations concept. 1. Neelima - 201424684171 2. Trishna 201424684243 3.Rida buhaysa 201424684188 4. Swathi talakokkula - 201424684236 5. Sumith - 201424684176 6. Srishanthyadav - 201424684196 THANK YOU Conclusion: The evolution of Human Resource Management (HRM) reflects a shift from viewing workers as mere commodities to recognizing them as valuable partners in organizational success. Starting from the Commodity Concept to the Emerging Concept, HRM has progressed through various stages—each focusing more on employee welfare, motivation, development, and participation. Today, HRM is a strategic function aimed at
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