Historical Development of HRM – From Welfare to Strategic Partner

Early welfare tradition (social work origins)

The early welfare tradition represents the foundational stage of modern social work, emerging during the late 19th and early 20th centuries as societies began to recognise poverty, illness, unemployment, and social exclusion as structural issues, not merely personal failings. During this period, charitable work shifted from religious or volunteer-based philanthropy to more organised, community-oriented welfare activities. Two major movements shaped this origin: the Charity Organization Society (COS) and the Settlement House Movement, both of which established concepts that later formed the professional principles of social work, such as casework, community engagement, and social reform (Payne, 2014).

The Charity Organization Society, established in London in 1869, emphasised systematic and coordinated relief for the poor. It introduced the idea of “social diagnosis”, where trained “friendly visitors” assessed the needs of families and individuals before providing support. This approach became the basis for modern casework and professional assessment in social work. The COS aimed to reduce duplication of charitable efforts and to promote moral improvement, reflecting early beliefs that personal behaviour contributed to poverty. Although criticised later for being moralistic, COS established essential administrative and assessment skills that shaped the profession (Humphreys, 2019).

Parallel to COS, the Settlement House Movement—pioneered by Jane Addams and Ellen Gates Starr at Hull House in Chicago in 1889—focused on community-based social reform rather than individual charity. Settlement workers lived within impoverished neighbourhoods to understand firsthand the economic, cultural, and environmental challenges faced by communities. This movement significantly influenced the development of community work, advocacy, social justice activism, and social policy reform, establishing social work as a profession concerned not only with individual welfare but also with structural change (Addams, 1910; Powell, 2020).

Together, these early welfare traditions formed the foundation of professional social work, giving rise to core practice areas including casework, community development, social policy advocacy, and research. They also established the ethical values of service, social justice, and respect for human dignity. These movements created the bridge between informal charitable activities and the systematic, evidence-based social work profession practiced today (Payne, 2014; Midgley, 2021).

 

 Scientific management theory (Taylorism)

 

Scientific Management Theory, developed by Frederick Winslow Taylor in the early 20th century, is considered one of the earliest and most influential management theories. It focuses on improving organisational efficiency by scientifically studying work processes, analysing tasks, and developing the “one best way” to perform each job. Taylor argued that productivity could be significantly increased by standardising work methods, selecting workers scientifically, and providing performance-based incentives. His ideas became the foundation of modern industrial engineering, process optimisation, and managerial control in organisations (Taylor, 1911; Wren & Bedeian, 2020).

Taylorism emphasises work study, which includes time and motion studies to break down complex tasks into smaller, standardised elements. By doing so, managers could identify inefficiencies and redesign workflows to reduce waste and improve output. This approach shifted decision-making about work methods from workers to managers, introducing a clear division between planning and execution. The system supported strict supervision, detailed instructions, and highly specialised tasks to ensure maximum efficiency and predictability in production environments (Kanigel, 1997).

A core principle of Scientific Management is the scientific selection and training of workers. Taylor argued that employees should be selected based on their abilities and then trained to follow the precisely defined methods developed by management. This contrasted with earlier informal, worker-driven approaches where employees relied on personal experience. Under Taylorism, performance was monitored closely, and wage incentive systems—such as piece-rate pay—were introduced to motivate workers to meet output targets. These methods aimed to align worker motivation with organisational goals of efficiency and productivity (Braverman, 1998).

Although Scientific Management significantly improved industrial productivity, it has been criticised for creating monotonous, repetitive jobs, reducing worker autonomy, and emphasising control over employee well-being. Critics argue that the theory treats workers as mechanical components rather than humans with needs, creativity, and intrinsic motivation. Despite these criticisms, elements of Taylorism remain deeply embedded in modern operations management, lean manufacturing, performance measurement systems, and workflow optimisation across various industries (Wrege & Greenwood, 1991).

 

Human relations movement (Mayo)

 

The Human Relations Movement emerged in the 1920s and 1930s as a response to the limitations of Scientific Management, which focused primarily on efficiency and task standardisation. Elton Mayo and his colleagues at the Hawthorne Studies (1924–1932) discovered that worker productivity was significantly influenced not only by physical working conditions but also by social and psychological factors, such as attention, recognition, teamwork, and informal social networks (Mayo, 1933; Roethlisberger & Dickson, 1939). This movement marked a shift from the mechanistic view of workers to recognising them as social beings whose attitudes and relationships affect organisational outcomes.

Mayo’s research at the Western Electric Hawthorne plant in Chicago revealed the “Hawthorne Effect”, where employees’ performance improved simply because they felt observed and valued. These studies highlighted the importance of employee morale, leadership style, group dynamics, and participative management in motivating workers. The findings challenged traditional management practices that ignored human needs and led to the incorporation of communication, motivation, and leadership strategies into organisational management (Mayo, 1933; Wren & Bedeian, 2020).

The Human Relations Movement influenced modern management by encouraging employee-centered approaches. It contributed to the development of human resource management, emphasizing training, job satisfaction, employee participation, and welfare initiatives. While criticized for underestimating structural and economic factors affecting work, Mayo’s work laid the foundation for later theories such as Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory, reinforcing the idea that human factors are critical to productivity and organisational success (Griffin, 2019; Roethlisberger & Dickson, 1939).

 

Rise of Personnel Management

 

The concept of Personnel Management emerged in the early to mid-20th century as organisations began recognising the need for systematic handling of employee-related issues. While the Human Relations Movement highlighted the importance of worker morale and social factors, Personnel Management formalised practices around recruitment, training, compensation, employee welfare, and industrial relations. The rise of personnel management reflected a shift from ad hoc supervision to a more structured approach to managing the workforce, particularly in large industrial organisations (Dessler, 2020; Torrington et al., 2017).

Personnel Management evolved as a bridge between management and employees, ensuring that organisational policies complied with labour laws while addressing employee needs. Its functions included maintaining employee records, handling grievances, monitoring performance, and administering wages and benefits. The emphasis was on administrative efficiency and compliance, with less focus on strategic contribution to organisational goals. This period also saw the emergence of labour unions and collective bargaining, which further shaped personnel policies and management practices (Bratton & Gold, 2017).

 

By the mid-20th century, Personnel Management began integrating insights from psychology and sociology to improve employee selection, training, motivation, and performance appraisal. Although it primarily focused on administrative tasks, it laid the foundation for modern Human Resource Management (HRM) by formalising employee-oriented practices, promoting workforce welfare, and recognising the human element in industrial productivity (Armstrong, 2020). Personnel Management’s structured approach created the organisational infrastructure necessary for later strategic HRM development

 Transformation into HRM in the 1980s

By the 1980s, organisations faced increasingly competitive and dynamic business environments driven by globalization, technological advancements, and knowledge-based economies. The limitations of traditional Personnel Management—primarily its administrative focus, reactive approach, and lack of strategic alignment—became more apparent. Organisations began to recognise that employees were not merely operational resources but strategic assets whose skills, motivation, and commitment could significantly impact organisational performance (Legge, 1995; Armstrong, 2020).

This shift led to the development of Human Resource Management (HRM), which integrated strategic, proactive, and people-centered approaches into organisational management. HRM extended beyond routine personnel functions such as recruitment, payroll, and employee welfare to include workforce planning, talent development, performance management, employee engagement, and alignment of human capital with organisational goals. The focus moved from controlling employees to developing, motivating, and leveraging them for competitive advantage (Beer et al., 1984; Torrington et al., 2017).

 The transformation was also influenced by theoretical and academic developments. Harvard and Michigan school frameworks highlighted the link between employee management and organisational strategy, emphasising the importance of commitment, flexibility, and participative management. For example, a manufacturing company in the 1980s might implement HRM by introducing training programs, performance appraisal linked to business objectives, career development paths, and employee involvement in decision-making, which would increase productivity and organisational adaptability compared to the rigid, administrative focus of traditional Personnel Management (Legge, 1995; Bratton & Gold, 2017).

 

Practical issues

 

Industrial Conflicts

Industrial conflicts are disputes between employees (or unions) and management that arise due to disagreements over wages, working conditions, job security, or organisational changes. These conflicts can disrupt operations, reduce productivity, and damage workplace relationships.

In 2023, a major Sri Lankan apparel factory faced a strike when management announced a sudden change in shift patterns without consulting workers. Employees protested because the new shifts clashed with public transport schedules and personal commitments. The industrial conflict highlighted the lack of communication and employee involvement in decision-making, causing production delays and financial losses for the factory.

Such conflicts demonstrate the importance of transparent communication, participative decision-making, and grievance handling mechanisms. By involving employees in decisions and addressing concerns proactively, organisations can prevent or resolve conflicts before they escalate. This also improves trust between management and employees (Beer et al., 1984; Bratton & Gold, 2017).

 Lack of Employee Engagement

Employee engagement refers to the emotional and psychological commitment of employees to their work and the organisation. Low engagement can lead to poor performance, absenteeism, and high turnover, which directly affect productivity and organisational success.

Consider a Sri Lankan IT services company where software developers were assigned repetitive tasks without recognition or opportunities for growth. Over time, employees became disengaged, showing low motivation, minimal contribution in team meetings, and frequent absenteeism. The disengagement was evident in reduced project delivery quality and slower innovation.

Lack of engagement highlights the need for HRM practices that recognize employee contributions, provide career development opportunities, encourage participation, and foster a supportive work culture. Strategies like training programs, performance-linked incentives, and regular feedback can boost engagement, enhance morale, and improve organizational outcomes (Kahn, 1990; Saks, 2006).

 

How Historical Theories Guide Modern HR Practices

                                                                

 

Historical management theories continue to shape the foundations of modern Human Resource Management (HRM). Although workplaces have evolved, the principles developed by early thinkers such as Taylor, Mayo, and personnel management pioneers still influence how organizations recruit, motivate, develop, and retain employees.

Influence of Scientific Management (Taylorism) on Modern HRM

Frederick Taylor’s Scientific Management introduced the idea that work processes should be systematically studied, standardised, and optimized. Modern HRM adopts this through job analysis, performance standards, and productivity measurement systems. For example, competency frameworks, KPIs, and workflow mapping are direct extensions of Taylor’s principles. HR departments today conduct detailed job designs to ensure efficiency, safety, and clarity of responsibilities. Training programs also use Taylor’s concept of matching employees to the right job based on their skills and abilities. Although modern HRM focuses more on employee wellbeing than pure efficiency, Taylorism remains essential in ensuring organisational productivity, fairness, and consistency.

 Influence of the Human Relations Movement (Mayo) on Modern HRM 

Elton Mayo’s Hawthorne Studies highlighted the importance of social needs, relationships, and employee morale. This laid the groundwork for HR’s focus on employee engagement, communication, teamwork, and motivation. Modern HRM integrates Mayo’s findings through practices such as employee engagement surveys, well being initiatives, team-building activities, supportive leadership training, and open communication channels. The recognition that employees perform better when valued and emotionally supported is a direct reflection of Mayo’s influence. Workplaces now prioritise soft skills, emotional intelligence, and collaborative cultures, demonstrating the lasting impact of the Human Relations School.

 

• Influence of Early Welfare Tradition and Personnel Management

Before HRM, early welfare workers and personnel officers focused on employee welfare, compliance, and basic industrial relations. Their role in handling worker grievances, ensuring safety, and managing attendance has evolved into core HR functions today such as occupational health and safety (OHS), employee relations, legal compliance, and HR administration. Modern HR builds on this by integrating welfare with strategic development, such as wellbeing programmes, counselling support, diversity management, and ethical workplace policies. The transformation shows how earlier administrative functions became the foundation for a more holistic HRM approach.

•  Influence of Early Welfare Tradition and Personnel Management 

Before HRM, early welfare workers and personnel officers focused on employee welfare, compliance, and basic industrial relations. Their role in handling worker grievances, ensuring safety, and managing attendance has evolved into core HR functions today such as occupational health and safety (OHS), employee relations, legal compliance, and HR administration. Modern HR builds on this by integrating welfare with strategic development, such as wellbeing programmes, counselling support, diversity management, and ethical workplace policies. The transformation shows how earlier administrative functions became the foundation for a more holistic HRM approach. 

Influence of the Rise of Personnel Management (1920s–1970s) on HRM

Personnel Management introduced structured recruitment, training, compensation systems, and labour relations management. Although Personnel Management was primarily administrative and reactive, its frameworks are still used in HRM. For example, job evaluation, payroll systems, industrial relations mechanisms, appraisal methods, and structured interviews were developed during this era. HRM advanced these ideas to become more strategic—integrating workforce planning, talent development, and employer branding—but the roots clearly lie in personnel practices.

 

Transformation into Strategic HRM (1980s Onward)

The shift in the 1980s moved HR away from routine administration toward a strategic partner role. This evolution incorporates the strengths of earlier theories—Taylor’s efficiency, Mayo’s human focus, and personnel management’s structure—into a unified strategic model. HRM today supports organisational goals through talent management, organizational culture, leadership development, and HR analytics. Historical theories guide how HR aligns people practices with business strategy, creating an integrated approach to performance and employee satisfaction.

 References 

Armstrong, M. (2020) Armstrong’s Handbook of Human Resource Management Practice. 15th edn. London: Kogan Page.

 Bratton, J. and Gold, J. (2017) Human Resource Management: Theory and Practice. 6th edn. London: Palgrave.

 Mayo, E. (1933) The Human Problems of an Industrial Civilization. New York: Macmillan.

 Taylor, F.W. (1911) The Principles of Scientific Management. New York: Harper & Brothers.

 Storey, J. (2007) ‘What is HRM?’, in Storey, J. (ed.) Human Resource Management: A Critical Text. London: Thomson Learning, pp. 3–24.

 Beer, M., Spector, B., Lawrence, P.R., Mills, D.Q. and Walton, R.E. (1984) Managing Human Assets. New York: Free Press.

 Bratton, J. and Gold, J. (2017) Human Resource Management: Theory and Practice. 6th edn. London: Palgrave.

 Kahn, W.A. (1990) ‘Psychological conditions of personal engagement and disengagement at work’, Academy of Management Journal, 33(4), pp. 692–724.

 Saks, A.M. (2006) ‘Antecedents and consequences of employee engagement’, Journal of Managerial Psychology, 21(7), pp. 600–619.

Bakker, A.B. and Demerouti, E. (2007) ‘The Job Demands-Resources model: state of the art’, Journal of Managerial Psychology, 22(3), pp. 309–328.

Bratton, J. and Gold, J. (2017) Human Resource Management: Theory and Practice. 6th edn. London: Palgrave.

Kahn, W.A. (1990) ‘Psychological conditions of personal engagement and disengagement at work’, Academy of Management Journal, 33(4), pp. 692–724.

Kotter, J.P. (1996) Leading Change. Boston: Harvard Business School Press.

Shen, J., Chanda, A., D’Netto, B. and Monga, M. (2009) ‘Managing diversity through human resource management: an international perspective and conceptual framework’, The International Journal of Human Resource Management, 20(2), pp. 235–251.

Wren, D.A. and Bedeian, A.G. (2020) The Evolution of Management Thought. 8th edn. Hoboken, NJ: Wiley.

Dessler, G. (2020) Human Resource Management. 16th edn. Boston: Pearson.

Torrington, D., Hall, L., Taylor, S. and Atkinson, C. (2017) Human Resource Management. 10th edn. London: Pearson.