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The History of Human Resource Management (HRM) begins around the end of the 19th
century, when welfare officers (sometimes called 'welfare secretaries') came into being. They
were women and involved with the protection of women and girls. Their creation was a
reaction to the:
Harshness of industrial conditions.
Pressures arising from the extension of the franchise
Influence of trade unions and the labour movement
Campaigning of enlightened employers, often Quakers, for what was called ‘industrial
betterment
As the role grew there was some tension between the aim of moral protection of women and
children and the need for higher output.
20th century developments
The First World War accelerated change in the development of personnel management.
Women were recruited in large numbers to fill the gaps left by men going to fight. This meant
reaching agreement with trade unions (often after bitter disputes) about ‘dilution’– accepting
unskilled women into craftsmen’s jobs and changing manning levels.
During the 1920s, jobs with the titles of ‘Labour Manager’ or ‘Employment Manager’ were
introduced to the engineering industry and other industries where there were large factories.
The role involved handling absence, recruitment, dismissal and queries over bonuses.
Employers’ federations, particularly in engineering and shipbuilding, negotiated national pay
rates with the unions, but there were local and district variations and there was plenty of scope
for disputes.
During the 1930s, the economy was beginning to pick up. Big corporations in these newer
sectors saw value in improving employee benefits as a way of recruiting, retaining and
motivating employees. But older industries such as textiles, mining and shipbuilding were hit by
the worldwide recession. These sectors did not adopt new techniques, seeing no need to do so
because they had no difficulty in recruiting labour.
The Second World War brought about welfare and personnel work on a full-time basis at all
establishments producing war materials. The Ministry of Labour and National Service insisted
on it, just as the Government had insisted on welfare workers in munitions factories in the
previous conflict. The Government saw specialist personnel management as part of the drive
for greater efficiency. As a result, the number of people in the personnel function grew
substantially; there were around 5,300 in 1943.
Around the mid-80s, the term ‘Human Resource Management’ arrived from the USA. The term
‘Human Resources’ is an interesting one; it seemed to suggest that employees were an asset or
resource-like machines, but at the same time HR also appeared to emphasise employee
commitment and motivation. At Consensus HR, we always emphasise to clients the importance
of making the most of one of your most important business assets and resources: your people.
Today's HR Activities
In today’s HR world we ensure that we cover a number of specialist disciplines, including:
Human resource management (HRM), also called personnel management, consists of all the
activities undertaken by an enterprise to ensure the effective utilization of employees toward
the attainment of individual, group, and organizational goals. An organization's HRM function
focuses on the people side of management. It consists of practices that help the organization to
deal effectively with its people during the various phases of the employment cycle, including
pre-hire, staffing, and post-hire. The pre-hire phase involves planning practices. The
organization must decide what types of job openings will exist in the upcoming period and
determine the necessary qualifications for performing these jobs. During the hire phase, the
organization selects its employees. Selection practices include recruiting applicants, assessing
their qualifications, and ultimately selecting those who are deemed to be the most qualified.
1. Talent Management
The talent management team in the HR department covers a lot of ground. What used to be
distinct areas of the department have been rolled up under one umbrella.
-The talent management team is responsible for recruiting, hiring, developing, and retaining
employees.
Recruiters are the heavy lifters in building any company’s workforce. They’re responsible for
the total hiring process including posting positions on job boards, sourcing candidates through
job fairs and social media, serving as the first-line contacts for running background checks to
screen candidates, conducting the initial interviews, and coordinating with the hiring manager
responsible for making the final selection. A recruiter’s success is determined by several key
metrics: the number of positions they fill each year, where candidates are coming from (e.g.,
job postings, social media, career fairs, etc.), the time it takes to fill positions, and reasons why
an applicant wasn’t hired. (NOTE: If you’re having trouble attracting talent to your company, it’s
time to evaluate why. Take our recruiting quiz to see how you measure up.)
2. Compensation and Benefits
In smaller companies the compensation and benefits roles can often be overseen by one or two
human resources professionals, but companies with a larger workforce will typically split up the
duties. HR functions in compensation include evaluating the pay practices of competitors and
establishing the compensation structure. The compensation department is also responsible for
creating job descriptions in tandem with department managers, as well as working with talent
management on succession planning.
- On the benefits side, HR practitioners are typically responsible for functions such as
negotiating group health coverage rates with insurance carriers or coordinating with the
company’s 401(k) administrator. Of course, payroll is also part of the compensation and
benefits area of HR, but many companies choose to outsource this function to a
bookkeeper or payroll service provider. Those that don’t generally put payroll
practitioners in a separate team that works on the tactical process of generating payroll,
with the compensation team focusing mainly on planning and strategy.
4. HR Compliance
Legal and regulatory compliance is a critical component of any HR department. Employment
and labor laws are highly complex, and having a team devoted to monitoring this ever-changing
landscape is essential to keeping companies out of trouble with federal, state, and local
governments’ laws.
- The HR compliance team is also heavily involved—working in tandem with other HR
practitioners—in developing all company policy that makes up the employee handbook.
5. Workplace Safety
Of course, every company wants to provide a safe place to work for its employees, and the
Occupational Safety and Health Act of 1970 (OSHA) actually mandates that employers provide a
safe working environment for their workers.