The HR function, as we know it today, wasn’t always this way. It has evolved immensely from its early years, just as organizations have. Let’s trace its journey from the very beginning to find out how it has changed over the years.
The Origins
Back in the 19th century, when the industrial revolution was still in its infancy, the employees worked in factories under extremely tough conditions. The pay was unjust; they’d work for extremely long hours, and in outrageously poor hygienic conditions. This led to widespread riots by the end of the century. The government intervened by introducing statutory regulations which forced the organizations to form specific departments that would address employees’ concerns and oversee employee welfare and wages. This marked the birth of a very early form of the HR function, which was known as personnel management.
The Personal Management Approach
At the beginning of the 20th century, personal management approach was prevalent, which largely saw HR as an extension of the administrative tasks. It was primarily concerned with the following functions:
- Keeping records of the employees
- Ensuring compliance with the statutory regulations
- Carrying out administrative functions suchas recruiting, training, and distributing wages
- Providing vaccination and medical care
- Attempting to boost productivity through training, wage increases, and enforcement of standards
- Performance appraisals
At this early phase, the HR function (Personnel Management) was detached from the company’s strategy and other operational aspects.
The Traditional Human Resource Approach
As a number of researchers and organizational psychologist came up with different theories about what motivated the workers at work and how it could lead to greater profits for the company, the HR function began to mold, incorporating this new knowledge. The Traditional Human Resource Approach was prevalent around the mid-20th century, and the employees were increasingly seen as a valuable resource for the company. HR ceased to be merely a staff function and saw greater involvement in business operations.
Employee motivation was an important aspect of a business’s success, and HR sought to increase it through various monetary and non-monetary incentives. Training and development were now also focused on instilling positive attitudes, along with improving basic skills.
The Modern Strategic Human Resource Approach
Over the years, as technology and automation transformed the business landscape, and organizations evolved, the HR function evolved too. Today, in the 21st century, the prevailing approach sees the HR function as a strategic business partner. HR works to align individual objectives and goals with the goals of the organization. The HR function today facilitates the company’s strategic goals and objectives by ensuring that it meets human resource needs.
Along with maintaining a pool of human resource that would propel the company towards achieving its goals, the modern HR function takes on the following tasks:
- The alignment of the employees’goals and values to that of the company’s
- Devising succession planning strategies to mitigate risks
- Identifying both non-performers and top performers
- Constantly monitoring leadership effectiveness and employee satisfaction
- Taking appropriate measures to boost employee engagement
- Aligning compensation and performance
- Recruiting and training to meet competency gaps
The modern HR recognizes the efficacy of an appropriate mix of non-monetary and monetary benefits to motivate employees so they can achieve peak performance levels. If you want your organization to have such a benefit plan, schedule a meeting with any of the specialist consultants at JS Benefits Group to see what would best suit your needs.
