The growth of the profession of human resource management from the early 1960s to the 21st century has been integral to the success of today’s organizations. Originally titled personnel or personnel administration, it occupied a low level of importance in the hierarchical structure of most companies. Its function was mostly to hire (and fire) employees, manage the payroll and benefit package and set up the Christmas party. Let’s look at some of the events that led to HRM becoming a central player in today’s corporate world.
Passage of federal Title VII of the Civil Rights Act of 1964 had an important impact on how employers would be required to manage their employees. Many more federal laws would soon follow, as well as state laws and municipal ordinances. Suddenly, the personnel manager became a regulatory employee, expected to know the plethora of employment laws and their relevance to the company’s workforce.
The growth of the field of organization and industrial psychology also had a profound influence on the workplace. Academic research led to insights and recommendations that improved the morale and productivity of workers, while also emphasizing their human dignity. For example, this author’s modest graduate research paper confirmed the effectiveness of his company’s popular incentive plan to reduce employee absenteeism while also identifying an unintended consequence of sick employees choosing to remain at work to earn the desirable incentive. Changes were made.
The introduction of office technology in the 1980s quickly changed the operation of the HR department. Recruiting took on new dimensions with the introduction of the “Internet of Things.” Much of the time-consuming drudgery associated with employee recordkeeping was eliminated. Gone were typewriters, bulky ledgers and mechanical calculating machines. Communication within and outside the company became instantaneous.
HR staff devoted more time and attention to employee needs and workplace behavior. It was at this time that the term human resource management started to appear in management journals. It reflected the fact the employees were not just a payroll expense or a line item in the company budget but rather human capital, an essential part of the organization. The HR staff was to be seen as the representatives of this newly-defined workforce.
Expansion of women’s activities into the workforce has had a profound impact on human resource policy development. Traditionally, women had been confined to a few occupations, such as teacher, nurse or secretary, and were often expected to leave those positions upon marriage to take up child rearing and household duties.
By the 1960s, women were increasingly entering the workplace and seeking employment commensurate with their education and skills. The issue of earning less than their equivalent male counterparts and others concerns, such as maternity leave, child care coverage and flexible working arrangements, had to be addressed by HR leaders.
The COVID-19 pandemic, beginning in early 2020, led to the creation of remote working and the establishment of policies to address issues such as offsite supervising, and later the return of reluctant employees to corporate offices. In the aftermath of the pandemic and resulting shortage of workers, HR recruiters have had to use innovative methods, such as signing and referral bonuses and other enticements to attract and retain workers.
Human resource professionals have earned a seat at the corporate table and are involved in setting the strategic goals of the enterprise. The re-imagining of the workforce as human capital highlights the role of HRM as a critical component in the efficient functioning of organizations.
After nearly 30 years and 107 articles, this will be my final article. I’ve enjoyed the opportunity to share my enthusiasm for HRM with the readers of this magazine.