HRM HISTORY

HRM is effective management of people at work. HRM is a function in organization

designed to maximize employee performance. It is concerned with the effective
management of people within the organization, focusing in policies & systems.
Understanding of the development of the concept of HRM is essential to examine how it
evolved overtime. A number of academics and practitioners in the past have contributed
a great deal to the development of HRM. The history of it’s development goes back to the
days of early management pioneers, Robert Owen ( 1771- 1858) and Charles Babbage
(1792-1871). Similarly, other developments such as the Industrial Revolution, the
principle of scientific management, the classic organization theory and, more recently, the
behavioral science management have influenced the development of Personnel
Management and HRM.
Organizations have many operational functions. HRD is one of the functions that is
engaging with the tasks of an organization. In early 70 s there was no division called as
Human Resource Department or Division. By that time there was only a division called
"Personnel" engaged with the labor related in the organization.

Personnel Management was introduced by the end of 19th century. At that time, this was
focused on the welfare of labors in the organizations. According to the tasks they have
done, the officers at Personnel Department was called as "Welfare Officers". The special
thing was, the employee welfare tasks were done by women at that time.

During the period of 1914-1939, many organizations has showed a quick growth and
quick changes in needs and wants of the operations. Therefore the tasks done by women
shifted to the men's, because of the complexity of tasks. These officers has called as
"Labor managers" at that time.

After Second World War, during the period 1945 - 1979, this has grown up and changed
to "Personnel Management", and Personnel Management was focus basically on
employee administration and the legislation.

At late 70 s the economic of the world changed gradually and organizations started to
consider labors work as an important resource. At the decade of 80 the concept of
"Human Resource Management" was started and then it has shown growth gradually in
decade of 1990. Finally the tasks and operations of personnel management was shifted
to the Human Resource Management and it is functioning now in broad way in the
organizations than Personnel Management.
HRM IN NEPAL
Before 1990, Human resource management in the majority of the enterprises of Nepal was not
satisfactory because there was no training and transfer policies and strategies in public
enterprises.
There is a Poor state of employee participation, failed proper communication system between
employees and managers, lacked systematic HR planning, low prioritized to planning,
recruitment, development, compensation and maintenance of workforce, new employees
selected through friends, relatives and influential persons, centralized in decisions and practiced
of unchallenged responsibility and traditional reward system.
It was found that Nepalese man-power had not been able to take full advantages of the raw jobs
created by development activities because they had not sufficient opportunities to learn the
requisite skills. After the 1990, when multiparty democracy restored, the practices of human
resource management in Nepal needed gradual changed. Salary of employees of joint venture
banks became highly competitive; employee’s performance is valued in the organization,
recognized training and development as means to achieve competitive advantages. In order to
fulfil the need of skilled human capital in corporations, higher education with business course has
been expanded. Though, there is low integration of human resource policies
and practices with business strategies and not recruited the HR specialist in HR department,
organizations are realizing the significance of integration, assignment and congruence of HR
practices with organizational policies and practices.
To be competitive, organizations initiated to execute low cost strategy, begun to share HR
responsibility between line management and HR department, initiated to response to the society,
and became conscious to maintain quality of work life and placed bigger priority for fighting against
favoritism. Therefore, it can be argued that since 1990, Nepalese organization moved from
traditional human resource management practices realizing to adopt in changing perspective