Page 16 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 1: Understanding the Nature and Scope of Human Resource Management

and training. This should produce employee competencies and behaviours that in turn Notes
should help the business implement its business strategy and realize its goals. HR strategies
are the courses of action HR uses to help the company achieve its strategic aims.

1.7 Evolution of HRM

The historical evolution of HR can be drawn into six stages:
Stage I : Pre-Industrial Era (1400-1700 AD)

Stage II: Industrial Revolution and Factory System (1700-1900 AD)
Stage III: Scientific Management, Welfare Work and Industrial Psychology (1900-1935 AD)
Stage IV: Golden Age of Industrial Relations and Personnel Management Maintenance Function
(1935-1970)
Stage V: Control of Labour Tradition (1970-1990)
Stage VI: Professional Tradition (1990- till date)

Early Phase

Though it is said that Human Resource Management as a discipline is of recent growth, it has
had its origin dating back to 1800 BC.
1. For example, the minimum wage rate and incentive wage plans are included in the
Babylonian Code of Hammurabi around 1800 BC.

2. The Chinese, as early as 1650 BC, had originated the principle of division of labour and
they understood labour turnover even in 400 BC.
3. Kautilya in India (in his book Arthasastra) made reference to various concepts like job
analysis, selection procedures, executive development, incentive system and performance
appraisal.

Stage I: Pre-Industrial ERA (1400-1700 AD)

Beginning around 1400 AD and continuing until 1700 AD. This period is marked by an absence
of any formal Human Resource Management function within the organization. Several dramatic
changes occurred during this first stage that represent seeds from which modern Human Resource
Management later grew.
First, there was cessation of feudalism, release of labour from land and beginning of free
employment relationship on which modern labour markets are based.

Second, there was a shift from subsistence agriculture to a commercial mixed economy, the rise
of urban economy, a diffusion economic control and distribution of wealth and income.
Third, there was a spectacular growth of towns and villages along with a middle class that
included skilled craftsmen and merchants who were the forerunners of factory owners.

Stage II: Industrial Revolution and Factory System (1700-1900 AD)

The Industrial relations began in 18th century in the UK, in 19th century in the USA and in the
second half of 20th century in India. It was made possible by the replacement of human effort
and skill by the work of machines. One of the contributions of industrial relations was the

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