HRM By VImal Noble

 

The Origin of Establishment and HRM: A Psychological and Universal Evolution Sequence

🧬 Universal Principle (Universal Law)

According to Maslow's Hierarchy of Needs, human development:

Self-Actualization → HRM (Development, Leadership)  
Esteem → Personnel Management (Promotion, Recognition)  
Social → Trade Unions (Unity, Rights)  
Safety → Establishment (Rules, Laws)  
Physiological → First Employment (Bread, Water)  

---

📍 Stage 1: Era of Exploitation (1760-1850) – Physiological Needs

Historical Context

The Industrial Revolution initiated Mass Employment for the first time.

Psychological State:

• Farmer → Worker (Identity crisis)
• 14-16 hour workdays (Physical exploitation)
• Children, women, men - all equally exploited
• No rules = Insecurity

Universal Pattern:

When humans enter a new system for the first time, they are in their most vulnerable state.

---

📍 Stage 2: Birth of Establishment (1833-1947) – Safety Needs

Legal Development

Year	Law	Psychological Impact
1833	Factory Act (UK)	Child protection = Social consciousness
1881	Factory Act (India)	Limited work hours = Physical safety
1926	Trade Unions Act	Collective voice = Morale
1946	Standing Orders Act	Written rules = Mental security

Core Principle of Establishment:

Chaos → Order → Security  

Example:

• Tata Steel (1907): India's first
  • 8-hour workday
  • Provident Fund
  • Medical facilities

→ This fulfilled the Safety Need

---

📍 Stage 3: Personnel Management (1900-1970) – Social Needs

Frederick Taylor's Scientific Management (1911)

Psychological Shift:

• Employee = Machine part ❌
• But... Efficiency = Training ✅

Hawthorne Experiments (1924-32) – Elton Mayo:

Discovery:

When employees felt they were being paid attention to, productivity increased by 30% – even when physical conditions didn't change

Universal Truth:

Recognition → Motivation → Productivity  

Role of Personnel Management:

1. Recruitment and Selection
2. Payroll Management
3. Attendance Records
4. Discipline
5. But... Employee was still a "Cost"

---

📍 Stage 4: Rise of HRM (1980-Present) – Esteem and Self-Actualization

Psychological Transformation

Peter Drucker (1954) said:

"Employees are the most valuable asset"

Harvard Model (1984):

Employee = Human Resource  
↓  
Developable  
Investable  
Strategic Asset  

Characteristics of HRM

Aspect	Personnel	HRM
Approach	Administrative	Strategic
Employee	Cost	Asset
Focus	Control	Development
Objective	Compliance	Competitive Advantage
Relationship	Formal	Collaborative

Psychological Theory

Douglas McGregor's Theory X vs Theory Y:

Theory X (Old):

• People hate work
• They need to be controlled

Theory Y (HRM):

• People are naturally productive
• They need the right environment

---

🔄 Integrated Development Sequence

Time → Psychological Stage → Management System → Result  
  
1760-1850  
↓  
Fear + Insecurity  
↓  
No System  
↓  
Exploitation  
  
1850-1900  
↓  
Safety Need  
↓  
Establishment Laws  
↓  
Basic Rights  
  
1900-1970  
↓  
Social Recognition  
↓  
Personnel Management  
↓  
Systematic Processes  
  
1980-Present  
↓  
Self-esteem + Development  
↓  
HRM (Strategic)  
↓  
Competitive Advantage  

---

🧠 Explanation of Psychological Pattern

Universal Laws:

1. Pain → Consciousness → Change

• Pain of exploitation → Trade Unions → Establishment

2. Need → Innovation → Institutionalization

• Safety need → Laws → Personnel Management

3. Recognition → Trust → Excellence

• Hawthorne Effect → Employee Engagement → HRM

---

🌍 Direct Connection to First Time Employment

Psychological Journey:

Stage 1: Survival

• First employment = Food + Shelter
• Establishment = Guarantee of survival

Stage 2: Stability

• Regular employment = Family + Future
• Personnel Management = Process stability

Stage 3: Growth

• Career = Identity + Purpose
• HRM = Personal + Organizational development

---

📊 Real Example (Indian Context)

Case Study: Infosys

1980s-90s:

• Personnel Department
• Basic recruitment
• Payroll management

2000s-Present:

• Strategic HRM
• InStep Program (Internship)
• Leadership Development
• Work-Life Balance
• Employee Satisfaction: 4.0/5 (Glassdoor)

Results:

• Retention Rate: 85%+
• Innovation Index: Top 10 globally
• Employees = Brand Ambassadors

---

⚖️ Essence of Universal Law

Newton's Third Law (in HRM):

Action: Investment in employees  
Reaction: Growth in organization  
  
If Exploitation → Rebellion  
If Respect → Dedication  

Second Law of Thermodynamics:

Without energy (motivation)  
System (organization)  
Transforms into disorder (chaos)  
  
∴ HRM = Continuous energy supply  

---

🎯 Conclusion (In One Sentence)

"First-time employment gave humans exploitation, Establishment gave safety, Personnel Management gave order, and HRM showed the path of development with dignity – this is the natural journey from basic human needs to self-actualization."

---

📚 Remember for Exams

Psychological Formula:

Exploitation → Insecurity → Establishment (Laws)  
Disorganization → Chaos → Personnel Management (Order)  
Neglect → Low Productivity → HRM (Development + Respect)  

Pattern:
Every change is Born from Crisis → Search for Solution → New System

This is not just management, it's the history of human development.

---

🔑 Key Takeaways

1. Establishment originated from the need to protect workers during the Industrial Revolution
2. Personnel Management emerged to systematize employee administration
3. HRM evolved to treat employees as valuable assets requiring development
4. Each stage responds to a fundamental human psychological need
5. The progression follows Maslow's Hierarchy perfectly
6. Universal pattern: Crisis → Awareness → Systematic Response → Evolution

This evolutionary journey reflects humanity's continuous quest for dignity, security, and self-fulfillment in the workplace.