Main influence upon the development of the HRM function during the last century.

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Main influence upon the development of the HRM function during the last century

Personnel Management

‘Personnel Management’ as a corporate issue developed in the early 1900s. The Chartered Institute of Personnel and Development, for example, was formed in 1913 as the Industrial Welfare Society. A deliberate focus on employees and their management originated in part from the social welfare movement of the 19th century but also from a corporate paternalism (Henry Ford set up a Sociological Department in 1916). Over the years personnel management came to focus on efficient procedures and rules for administering large numbers of employees. Its aim was to manage difficulties, introduce fair systems and reduce costs. It also tended to focus on groups rather than individuals and, incidentally, reinforced labour-management divisions.

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The Development of Human Resource Management

In the 1970s a number of issues came together. Research showed that in the private sector up to 60% of managers’ time was spent on fixing ‘shop floor’ problems. (Beardwell and Holden 1994) At about the same time behavioural theorists such as Robert Herzberg were beginning to have an influence - showing that the motivation and commitment might be improved more readily through recognition, responsibility and challenge rather than rewards and punishments. Business in the West was also failing to keep up with the Japanese. An examination of Japanese methods showed that they considered ...

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