Human resource management is the dominant approach to people management, both in the United States and in Europe, Australia, and some Asian countries. What was people management like before?
BVOP is a certification body that provides HR certification programs worldwide. BVOP certified HR managers learn human resources as well as people and organization management.
According to researchers, the roots of people management are related to the first division of labor between people, and later to the need for leadership and control of labor. It was an authoritarian government with strict controls and many sanctions for breaking the rules. The transition from craftsmanship to machine manufacturing in the 14th century forced factory owners to entrust the management of workers to specially hired people with organizational skills and experience as supervisors, and later to professionally trained managers at the first American universities.
Particularly important contributors to the enrichment of human governance are the scientific administration of Frederic Taylor and later Henri Ford; the behaviorist school run by Elton Mayo; theories of human motivation; labor design concepts; theories of leadership; industrial psychology; theories of organization, strategic management, etc.
Personnel management was officially recognized as an important function of the management of American companies in 1890.
In his book Human Resources Management in a Business Context (2004), Allan Price describes the functions of traditional human resource management departments as follows:
Recruitment of new employees – personnel management departments advertise vacancies and liaise with employment offices;
Selection of employees – the personnel management departments collect and analyze documents and recommendations of the candidates and “screen out” the suitable candidates for work in the company;
Remuneration – the role of personnel departments in negotiating salaries is insignificant, but departments are engaged in calculating salaries;
Performance appraisal – HR departments coordinate the work of managers in evaluating the individual performance of their employees;
Training and development – personnel management departments coordinate training programs;
Certification – project management certification, HR management or product management certification.
Communication – personnel management departments provide information about life in the company under the fort of company newspapers, newsletters, leaflets, videos;
Administration – the personnel management departments maintain a personnel database.
Personnel management has been designed to help achieve the company’s goals, but relies more on psychology and sociology and much less on the potential of management to influence people. This is how the useful activity of the personnel departments remained outside the work of other departments – marketing, finance, production. This weakened the role of personnel management.