History of today`s one of the most important functions of organizations goes to the late 19th century. The seeable origin of HRM functions acted in the late 19th century in USA, Germany, France and England approximately at the same time and in Japan later. In 19th century there was no formal HRM department and specialized staffs and functions of it was done by labor market and plant owner. However, todays contemporary HRM division raised from the two earlier improvement.
One is that beginning in1890th companies started giving the sweetness to workers like medical room, launch rooms, libraries, firm-supplied houses and placed welfare secretary in charge of those activities to manage. The second one is creation of other office of employment such as employment divisions in many countries` firms like Europe because of civil law. This trend also spreads to US and led to set up employment division in many firms. This trend was backed also by scientific management originated by Taylor. Another impact on development of HRM was first world war.
During the war, productivity, rational management were important that raised growth but raised the labor unrest, high turnover, strikes that firms had to reply by increasing the welfare helps. In US context, two management areas existed personal management and employment relations. In1920th this trend temporarily broke up due to recession to save costs. By 1930 many firms set up function of HRM. The main aim of HRM was to encourage unity of interest and cooperation. The aim of it was created by higher executives.
Besides US, Germany was in progress in HRM and existed concepts like industrial sociology and industrial psychology followed by Japan. These progresses were backed by international conferences took place in Netherlands. The next period of HRM improvement is 1930 and 1965. The great depression started in US spread to other countries had prominent effect on HRM.
Many firms cut waged, fired many employees that invested were invested hugely followed by reform by Roosevelt in 1930 that fostered union and some laws which had pros and cons. Pros was fast diffuse of bargaining power. Cons was loss of employee confidence, prestige due to left corporate worker programs. But the bargaining power was the turning point for strategic shift, innovation and cooperation. After the great depression there was another significant effect in improvement in HRM, the second world war. New types of recruiting specialists and holding turnover was important concerns and inexperienced laborers were needed training programs, to overcome new employment laws, strikes and compensations.
In the 1920th in big and medium size firms had no arranged HRM but in 1950th about all big and medium size firms had one. Industrial sociology and psychology topics were brought. Also, human relation led by Mayor contributed to progress. Such innovations made in HRM in US that took important role spreads to Europe with the Marshal Plan and Asia. Many European countries taking from US started giving industrial relations subjects to students in their universities. The red-brick HRM started fast in America and diffused to European and Asian countries and professed to students and started writing books and articles about HR.
In the 1960th the human relation divided into OB and OD. The notion “Human resource management” was seen in 1960s in the United States. Furthermore, for some experts the difference btw IR/PM and HRM is that former is short-term and reactive, latter one is reactive and long-term. So, HRM has progressed hugely in the 2 centuries. From the start of the 21th century the concept HRM gained significant power and become practitioner and academic literature, gave efficient and effective companies, employees harmony.
