Human Research Capital Essay

3.1. The Concept and History of Human Resources Management
Human resources management maintains the source of “people factor” in organizations. People factor is a must, basic needs in every business.
Human Resource Management (HRM) is the function within an organization this focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management is the organizational function this deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resources Management, as well as managing people and the workplace culture and the strategic and comprehensive approach to the environment. Effective HRM overall company direction and contribute effectively and efficiently to achieve the organization's goals and objectives, allows employees. (Accessed from :www.humanresources.about.com)
Human resources management was recognized as “personnel relations” and “industrial relations” in its age.
The need for an organized form of human resources management emerged during the industrial revolution, as the manufacturing process evolved from a cottage system to factory production. As the United States shifted from an agricultural economy to an industrial economy, companies were forced to develop and implement effective ways of recruiting and keeping skilled workers. In addition, industrialization helped spur immigration, as the country opened its borders to fill industrial positions. Filling these jobs with immigrants, however, created an even greater need for adequate management of employees. Between the 1880s and the 1940s, immigration rose significantly and remained robust until World War II. Advertisements circulated throughout the world depicting the United States as the land of opportunity where good-paying industrial jobs were plentiful. As a result, the country had a steady stream of low-skill, low-cost immigrant workers who occupied manufacturing, construction, and machinery operation positions. Even though these employees performed largely routine tasks, managers faced serious obstacles when trying to manage them since they spoke different languages. While some companies paid attention to the "human" side of employment, however, others did not. Therefore, other factors such as hazardous working conditions and pressure from labor unions also increased the importance of effective management of human resources. Along with the manufacturing efficiencies brought about by industrialization came several shortcomings related to working conditions. These problems included: hazardous tasks, long hours, and unhealthy work environments. The direct cause of employers seeking better HRM programs was not poor working conditions, but rather the protests and pressures generated by workers and organized labor unions. Indeed, labor unions, which had existed as early as 1790 in the United States, became much more powerful during the late 1800s and early 1900s. There were two other particularly important contributing factors to the origination of modem HRM during this period. The first was the industrial welfare movement, which represented a shift in the way this managers viewed employees— from nonhuman resources to human beings. This movement resulted in the creation of medical care and educational facilities. The second factor was Frederick W. Taylor's (1856- 1915) Scientific Management, a landmark book this outlined management methods for attaining greater productivity from low-level production workers. The first corporate employment department designed to address employee concerns was created by the B.F. Goodrich Company in 1900. In 1902 National Cash Register formed a similar department to handle worker grievances, wage administration, record keeping, and many other functions this would later be relegated to HRM departments

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