Define HRM. Explain the various stages of the evolution of HRM.

Definition: According to French Wendell, “Human resource management is the recruitment, selection, development, utilisation, compensation and motivation of human resources of the organisation”.

Evolution of HRM: The kind of role today HRM is playing was not the same since inception. Various phases of its development are as follows:

(i) Labour Welfare Stage: Earlier businesses used to be on small scales. That was the era of establishment of Trade Unions. By its effect the need for a person is felt who can act as a mediator between the employer and the employees. For this Labour Welfare Officer was appointed. His role was limited to provide least welfare facilities to the employees.

(ii) Personnel Management Stage: With the expansion of business, factory system came into existence. Many people start getting employment under one roof. As a result, the need for a person is felt, whose job is to make employees available for a company. With this approach, earlier Personnel Officers and later on Personnel Managers were appointed. Their role was limited to recruit, select and place the employees.

(iii) HRM Stage: The business further expanded and simultaneously the technology was developing at a fast pace. In this situation, the need was felt for the training and development of employees. Human resource was now considered to be an important part of organisation and was felt that it can be developed. With this cult, Personnel Manager was replaced by Human Resource Manager. His job is to effectively manage the people so that they remain to be a part of the organisation for all.