Human Resources Planning and Development >> Personnel Management Development

How Personnel Management developed into Human Resource Management, reasons why this has occurred and context of work done by Human Resource Managers

Personnel Management is a traditional approach started in the early part of the 20th century, in order to protect employees from industrial conditions, reacting to the influence of trade unions and ensuring all employees are treated and looked after fairly.

Due to the Munitions of War Act, 1915 (First World War) ensured the control of labour to factories, and personnel management was obligatory and a group of ‘personnel workers’ came into existence. Another significant factor in the increase of personnel management was the increased amount of women entering the workplace; this was due to the gap left by active servicemen entering the war, and as a result engagement between trade unions and welfare workers to enable the protection of women in the workplace.

During the 1980s there was a paradigm shift from organisations that merely looked after their staff to an organization with a strategic goal. The workforce is considered an intangible resource that need strategic direction, and organisations are realising the need to leverage off this knowledge. Human Resource Management (HRM) came into existence as an enabler to help line managers to achieve these business objectives with the HR department necessitating any planning and policies to achieve the organisation’s strategic goals .

Personnel Management at the time was sufficient to cater for the economic and political environments, and engaged the trade unions effectively to ensure the function was beneficial to employees. HRM is taking a shift away and in effect trying to minimise the influence of Trade Unions. Personnel Management was the one function of looking after staff, where HRM is a multi-function department which deals with hiring, firing, rewards, incentives, retirement etc. HRM also deals with training of staff to a new skill; something which Personnel Management does not deal with effectively, this could be seen in detail during the 90s with the rise of specialism.

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