Editing Human resources (section)

==History==

[[Human resource management]] used to be referred to as "[[Personnel Administration|personnel administration]]".<ref>{{Cite book |last=Poole |first=Michael |url=https://books.google.com/books?id=A49BSgyWRPAC&dq=%22Human+resource+management%22+used+to+be+referred+to+as+%22personnel+administration%22.&pg=PA95 |title=Human Resource Management: Critical Perspectives on Business and Management |date=1999 |publisher=Taylor & Francis |isbn=978-0-415-19338-2 |pages=95 |language=en}}</ref><ref>{{Cite book |last=Pieper |first=Rüdiger |url=https://books.google.com/books?id=_UIgAAAAQBAJ&dq=%22Human+resource+management%22+used+to+be+referred+to+as+%22personnel+administration%22.&pg=PA3 |title=Human Resource Management: An International Comparison |date=2012-10-25 |publisher=Walter de Gruyter |isbn=978-3-11-086910-1 |pages=3 |language=en}}</ref> In the 1920s, personnel administration focused mostly on the aspects of hiring, evaluating, and [[Compensating differential|compensating]] employees.<ref>{{Cite book |last1=Lepadatu |first1=Darina |url=https://books.google.com/books?id=Z2LRDwAAQBAJ&dq=In+the+1920s,+personnel+administration+focused+mostly+on+the+aspects+of+hiring,+evaluating,+and+compensating+employees.&pg=PT100 |title=Framing and Managing Lean Organizations in the New Economy |last2=Janoski |first2=Thomas |date=2020-02-18 |publisher=Routledge |isbn=978-1-351-01513-4 |language=en}}</ref><ref>{{Cite book |last=Jackson |first=Esther |url=https://books.google.com/books?id=kyhAEAAAQBAJ&dq=In+the+1920s,+personnel+administration+focused+mostly+on+the+aspects+of+hiring,+evaluating,+and+compensating+employees.&pg=PT66 |title=Adaptability in Talent Development |date=2021-09-28 |publisher=Association for Talent Development |isbn=978-1-952157-52-3 |language=en}}</ref> However, they did not focus on any employment relationships at an organizational performance level or on the systematic relationships in any parties. This led to a lacked unifying paradigm in the field during this period.<ref>{{cite web|title=The Historical Background of HRM|url=https://www.linkedin.com/pulse/historical-background-human-resource-management-vinaykumar-s|access-date=2018-09-21}}</ref>

According to an ''[[HR Magazine]]'' article, the first personnel management department started at the [[National Cash Register Co.]] in 1900. The owner, [[John Henry Patterson (NCR owner)|John Henry Patterson]], organized a personnel department to deal with grievances, discharges and safety, and information for supervisors on new laws and practices after several strikes and employee lockouts. This action was followed by other companies; for example, Ford had high turnover ratios of 380 percent in 1913, but just one year later, the line workers of the company had doubled their daily salaries from $2.50 to $5, even though $2.50 was a fair wage at that time.<ref name=":3">{{Cite web|title=History of Human resources|url=https://www.universalclass.com/articles/business/the-history-of-human-resources.htm|access-date=2018-09-21}}</ref> This example clearly shows the importance of effective management which leads to a greater outcome of employee satisfaction as well as encouraging employees to work together in order to achieve better business objectives.

During the 1970s, American businesses began experiencing challenges due to the substantial increase in competitive pressures. Companies experienced globalization, deregulation, and rapid technological change which caused the major companies to enhance their strategic planning – a process of predicting future changes in a particular environment and focus on ways to promote [[organizational effectiveness]]. This resulted in developing more jobs and opportunities for people to show their skills which were directed to effectively applying employees toward the fulfillment of individual, group, and organizational goals. Many years later the major/minor of human resource management was created at universities and colleges also known as [[business administration]]. It consists of all the activities that companies used to ensure the more effective use of employees.<ref name=":2">{{Cite web|url=https://www.managementstudyguide.com/human-resource-management.htm|title=Human Resource Management (HRM) – Definition and Concept|website=www.managementstudyguide.com|language=en-gb|access-date=2018-03-30}}</ref>

Now, human resources focus on the people side of management.<ref name=":2" /> There are two real definitions of HRM ([[Human resource management|Human Resource Management]]); one is that it is the process of managing people in organizations in a structured and thorough manner.<ref name=":2" /> This means that it covers the hiring, firing, pay and perks, and performance management.<ref name=":2" /> This first definition is the modern and traditional version more like what a personnel manager would have done back in the 1920s.<ref name=":2" /> The second definition is that HRM circles the ideas of management of people in organizations from a [[macromanagement]] perspective like customers and competitors in a marketplace.<ref name=":2" /> This involves the focus on making the "employment relationship" fulfilling for both management and employees.<ref name=":2" />

Some research showed that employees can perform at a much higher rate of productivity when their supervisors and managers paid more attention to them.<ref name=":3" /> The Father of Human relations, [[Elton Mayo]], was the first person to reinforce the importance of employee communications, [[cooperation]], and involvement.<ref name=":3" /> His studies concluded that sometimes the human factors are more important than physical factors, such as quality of lighting and physical workplace conditions. As a result, individuals often place value more on how they feel.<ref name=":3" /> For example, a rewarding system in Human resource management, applied effectively, can further encourage employees to achieve their best performance.