History of Human Resource Management

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History of Human Resource Management

Overview of Human Resource Management By definition, Human Resource Management (HRM) is the strategic and coherent approach to the management of organizations most valued assets; specifically the people working there whom individually and collectively contribute to the achievement of objectives of the business. Simply it is the process of employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. The goal of HRM is to maximize the production of an organization by using the employees to the best of their abilities and in return offer a better work life then other companies to retain them. Basically,
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companies. HRM became significantly more recognized when the Wagner Act in 1935 (also known as the National Labor Relations Act) was passed. It remained the basic U.S. labor law through the 1990s. This law gave labor unions more power and increased the role and importance of personnel managers.
During the 1930s and 1940s, the general focus of HRM changed from worker efficiency and skills to employee satisfaction. That shift became more apparent after World War II, because the war caused a shortage of skilled labor force and caused companies to pay more attention to workers' needs. Under the influence of the famous Hawthorne productivity studies and similar research, companies began to emphasize personal development and improved working conditions as a way of motivating employees. In the 1960s and 1970s the federal government furthered the HRM movement with an abundance of regulations created to enforce fair treatment of workers, such as the Equal Pay Act of 1963, the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974 (ERISA), and the Occupational Safety and Health Act of 1970. With these acts in place, companies began placing greater emphasis on Human Resource Management, in order to avoid lawsuits.
By the end of the 1970s, almost all medium-sized and
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