The ever changing role of HR

Introduction: Human resource management (HRM or simply HR) is the management of an organization's workforce, or human resources. There is still many organizations’ operating under the traditional approach – HR is being seen only as an administrator of policies and procedures. With the increase in opportunities and competition, Organizations started looking HR as a Strategic Business Partner.

To understand the ever changing role of HR, let us have a look into how the HR evolved and is evolving over a period of time or the ever changing role of HR starting from the period of before industrialization.

18^th & 19^th Century: This period can be classified into three – Period before industrial revolution, period of industrial revolution and post industrialization.

Period before industrial revolution – The society was primarily an agriculture economy. Number of specialized crafts was limited and was usually carried out within a village or community with apprentices assisting the master craftsmen.

Period of industrial revolution – Industrial revolution marked the conversion of economy from agriculture based to industry based. Modernization and increased means gave way to industrial setup. A department was set up to look into workers wages, welfare and other related issues. This led to emergence of personnel management with the major task as

• Workers wages
• Workers record maintenance
• Workers housing facilities and health care

An important event in industrial revolution was growth of Labour Union.

Post Industrial revolution – The term Human resource Management saw a major evolution after 1850. Various studies were conducted during this period which gave HRM altogether a new meaning and importance.

20^th Century (until late 1980’s): The post industrialization period continued until late 1980’s. Evolution of scientific human resource management was emerged. This period was known for traditional Human Resource Management. As a result, HR started handling activities like

• Recruitment and selection of skilled workforce;
• Motivation and employee benefits;
• Training and development of workforce;
• Performance related salaries and appraisals;
• Wage uniformity;
• Statutory compliances.

20^th Century (post late 1980’s): This is the continuation of traditional human Resource Management period. This is the period where globalization was evolving in many ways and many organizations started adopting the practice of operating from various parts of the world – this is in search of skilled employees and to decrease the expenditure. The focus started shifting towards employee development. HR started handling activities like

• Recruitment and selection;
• Training and development;
• Performance appraisals;
• Compensation and benefits management;
• Employee Motivation through engagement activities, rewards and recognition;
• Attrition Management;
• Statutory compliance;
• Designing of policies.

An important event in this period is the improvement in communication systems.

21^st Century: With multiple organizations entering into different countries, there are numerous brands of similar products available in the market. And also there is a revolution in communication system, transportation and in many other sectors. In terms of communication, internet and mobile phones have become a part and parcel of everyone’s life.

Today, organizations have an enormous competition in terms of people, products, services and etc. In order to meet this, the traditional human resource management approach faded and human resources started becoming a strategic human resource management.  Strategic HRM focuses on actions that differentiate the organization from its competitors and aims to make long term impact on the success of organization. HR started and continuing playing as a strategic advisor to the management. The focus is on attracting and retaining talent through engagement.

Activities handled are like

• Manpower planning, recruitment and selection;
• Learning and development;
• Organizational design, development and capability programs;
• Leadership development;
• Employee advocate;
• Change Management;
• Employer branding;
• Increase in the focus of the wellness of employee with more focus on work-life balance;
• Compensation, benefits and welfare
• Employee engagement;
• Performance appraisals focusing on overall development of employees;
• Designing of policies which focus on enhancing employee experience at work place;
• Statutory compliances;
• Corporate social responsibility;
• Employee Grievance handling and etc.

Saying all these, HR is still evolving, emerging and is becoming as a true business partner. HR plays a key role in organization’s success by taking the role of an advisor to the management in terms of attracting talent, retaining talent, differentiating an organization from its competitors. HR is partnering with the management to reach the organizational goals. There are an increased number of HR professionals understanding the concepts of business, finance, production, marketing, sales and other functions of business.

The focus of HR has been shifted and shifting towards individual employee satisfaction, making the organization as “Best Place to Work” or “Employer of Choice” remembering the fact that a happy employee always gives his/her best in reaching organization goals.