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Human resource management
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===Birth and development of the discipline=== By the time there was enough theoretical evidence to make a [[business case]] for strategic workforce management, changes in the [[commerce|business landscape]]—à la [[Andrew Carnegie]] (1835–1919) and [[John D. Rockefeller|John Rockefeller]] (1839–1937)—and in public policy—à la [[Sidney Webb|Sidney]] (1859–1947) and [[Beatrice Webb]] (1858–1943), [[Franklin D. Roosevelt]] and the [[New Deal]] of 1933 to 1939—had transformed employer-employee relationships, and the HRM discipline became formalized as "[[industrial relations|industrial]] and [[labor relations]]". In 1913 one of the oldest known [[list of human resource management associations|professional HR associations]]—the [[Chartered Institute of Personnel and Development]] (CIPD)—started in England as the Welfare Workers' Association; it changed its name a decade later to the Institute of Industrial Welfare Workers, and again the next decade to Institute of Labour Management before settling upon its current name in 2000.<ref>{{cite web | url= http://www.cipd.co.uk/hr-resources/factsheets/history-hr-cipd.aspx | publisher= Chartered Institute of Personnel and Development | access-date= 2016-07-19 | title= History of HR and the CIPD | archive-date= 2016-07-15 | archive-url= https://web.archive.org/web/20160715093051/http://www.cipd.co.uk/hr-resources/factsheets/history-hr-cipd.aspx | url-status= dead }}</ref> From 1918 the early [[Soviet]] state institutions began to implement a distinct [[ideology|ideological]] HRM focus<ref> {{cite book | last1 = Itani | first1 = Sami | title = The Ideological Evolution of Human Resource Management: A Critical Look into HRM Research and Practices | url = https://books.google.com/books?id=tE80DwAAQBAJ | series = Critical Management Studies Book Set (2016-2019) | date = 22 September 2017 | location = Bingley, Yorkshire | publisher = Emerald Group Publishing | publication-date = 2017 | isbn = 9781787433908 | access-date = 3 April 2021 }} </ref> alongside technical management—first in the [[Red Army]] (through [[political commissar]]s alongside military officers), later (from 1933) in work sites more generally (through [[partorg]] posts alongside conventional managers).<ref> {{cite book | last1 = Ardichvili | first1 = Alexandre | last2 = Zavyalova | first2 = Elena K. | chapter = HRD in the Former Soviet Union (1917-1990) | title = Human Resource Development in the Russian Federation | url = https://books.google.com/books?id=IPQjCQAAQBAJ | series = Routledge Studies in Human Resource Development | date = 8 May 2015 | location = New York | publisher = Routledge | publication-date = 2015 | page = 43 | isbn = 9781317815846 | access-date = 3 April 2021 | quote = [...] features of personnel management that were typical for the socialist Soviet Union [...]: Ideologization of all definitions, regulations, concepts, and explanations; linking the fundamental principles of personnel management with the classical works of the Marxist-Leninist theory as well as the obligatory references to the Communist Party documents of various levels [...]; and administrative and even criminal liability for non-working, enshrined as a separate item in the constitution of the USSR. }} </ref> In 1920, James R. Angell delivered an address to a conference on personnel research in Washington detailing the need for personnel research. This preceded and led to the organization of the Personnel Research Federation. In 1922 the first volume of ''The Journal of Personnel Research'' was published, a joint initiative between the National Research Council and the Engineering Foundation.<ref>{{Cite web |url=https://www.workforce.com/files/Reasons-and-Plans-for-Personnel-Research-James-R-Angell.pdf |title=Archived copy |access-date=2020-10-05 |archive-date=2021-01-19 |archive-url=https://web.archive.org/web/20210119145405/https://www.workforce.com/files/Reasons-and-Plans-for-Personnel-Research-James-R-Angell.pdf |url-status=dead }}</ref> Likewise in the United States, the world's first institution of higher education dedicated to workplace studies—the [[Cornell University School of Industrial and Labor Relations|School of Industrial and Labor Relations]]—formed at [[Cornell University]] in 1945.<ref name="ILR">{{cite web | title = About Cornell ILR | url= http://www.ilr.cornell.edu/about/ | publisher = [[Cornell University School of Industrial and Labor Relations]] | access-date = 2010-01-29}}</ref> In 1948 what would later become the largest professional HR association—the [[Society for Human Resource Management]] (SHRM)—formed as the American Society for Personnel Administration (ASPA).<ref name="SHRM">{{cite web|url= http://www.shrm.org/about/ |publisher= Society for Human Resource Management |access-date= 22 December 2011 |title= About SHRM |url-status= dead |archive-url= https://web.archive.org/web/20090116112745/http://shrm.org/about/ |archive-date= 16 January 2009 }}</ref> In the Soviet Union, [[Joseph Stalin|Stalin]]'s use of patronage exercised through the "HR Department" equivalent in the [[Communist Party of the Soviet Union|Bolshevik Party]], its [[Orgburo]], demonstrated the effectiveness and influence of human-resource policies and practices,<ref> {{cite book | last1 = Hale | first1 = Henry E. | title = Patronal Politics | url = https://books.google.com/books?id=1MC0BAAAQBAJ | series = Problems of International Politics | publisher = Cambridge University Press | date = 2014 | page = 49 | isbn = 9781107073517 | access-date = 2015-08-24 | quote = Not seen as having the right stuff for high-profile posts such as the one held by Trotsky, Stalin thus occupied a series of relatively low-level positions in the Communist leadership after the revolution. One of these, which he acquired in 1919, was the de facto head of the Communist Party's Organizational Bureau (Orgburo), seen then as a technical body in much the same way a human resources department is seen in a modern institution. [...] Stalin's genius was to recognize that [...] this was precisely the position to occupy. Using his position to influence who was appointed to lower-level party posts, each relatively unimportant in its own right, Stalin systematically advanced people he believed would support him in the future, thereby constructing a large network of political clients within the party and the state which it dominated. [...] This patronalistic mechanism constituted what Robert V. Daniels later called the great 'circular flow of power' that essentially decided Communist Party leadership disputes and solved succession crises from Stalin straight through to Gorbachev. The power to influence lower-level appointments was concentrated, though still largely seen as a technical matter, with the creation of the post of general secretary in 1922, a post-Stalin was in a perfect position to occupy, and he did. }} </ref><ref> {{cite book | last1 = Pipko | first1 = Simona | title = Baltic Winds: Testimony of a Soviet Attorney | url = https://books.google.com/books?id=_6LnhLxIUlsC | publisher = Xlibris Corporation | date = 2002 | page = 451 | isbn = 9781401070960 | access-date = 2015-08-24 | quote = The Secretariat personified the Stalinist system. [...] It runs the day-to-day affairs of the State as well as the Party. Can you imagine that huge body of bureaucratic anachronism, which was also responsible for the selection and promotion of 'cadres'? The model invented by Stalin to consolidate his power existed up to contemporary time. [...] Stalin had both the time and the ability to shape human resources to his own ends, teaching secrecy, brutality and duplicity. }} </ref> and Stalin himself acknowledged the importance of the human resource,<ref> Quoted in: {{cite book | last1 = Stalin | first1 = Joseph | author-link1 = Joseph Stalin | year = 1936 | title = Против фашистского мракобесия и демагогии |trans-title=Against Fascist Obscurantism and Demagoguery | url = https://books.google.com/books?id=evMfBwAAQBAJ | publisher = Directmedia | publication-date = 2013 | page = 81 | isbn = 9785446087181 | access-date = 2015-08-24 | quote = Надо, наконец, понять, что из всех ценных капиталов, имеющихся в мире, самым ценным и самым решающим капиталом являются люди, кадры. [Finally, one must understand that of all the valuable forms of capital existing in the world, the most precious and the most decisive capital is people, cadres.] }} </ref> exemplified in his mass deployment of it, as in the [[Five-year plans of the Soviet Union|five-year plans]] and in the [[Gulag]] system. During the latter half of the 20th century,{{where|date=April 2021}} [[labor union|union]] membership declined significantly,<ref> Compare: {{cite book | last1 = Belous | first1 = Richard S. | title = Union Membership Trends: The Implications for Economic Policy and Labor Legislation | year = 1986 | url = https://books.google.com/books?id=2RFYAAAAYAAJ | issue = Issues 86-107 of Report (Library of Congress. Congressional Research Service) | publisher = Congressional Research Service, Library of Congress | publication-date = 1986 | page = 27 | access-date = 3 April 2021 | quote = Given the 'continued union membership decline' case vs. the 'rebound in union membership' case, which one is currently the 'general wisdom' within the community of labor-management analysts? }} </ref> while workforce-management specialists continued to expand their influence within organizations.{{citation needed|date=July 2016}} In US, the phrase "industrial and labor relations" came into use to refer specifically to issues concerning [[Collective bargaining|collective representation]], and many{{quantify|date= July 2016}} companies began referring to the proto-HR profession as "personnel administration".{{citation needed|date=July 2015}}<ref> Compare [https://books.google.com/ngrams/graph?content=human+resource+management%2Cpersonnel+management%2Cindustrial+and+labor+relations%2Cpersonnel+administration&year_start=1900&year_end=2019&corpus=28&smoothing=3 Graphed frequencies of HR jargon in American English]. </ref> Many current HR practices originated with the needs of companies in the 1950s to develop and [[Employee retention|retain]] talent.<ref> {{Cite journal | last = Cappelli | first = Peter | title = Why We Love to Hate HR ... and What HR Can Do About It | url = https://hbr.org/2015/07/why-we-love-to-hate-hr-and-what-hr-can-do-about-it | journal = [[Harvard Business Review]] | issue = July–August 2015 | access-date = 25 July 2015 | date = July 2015 | quote = [...] after World War II, U.S. industry suffered a talent shortage unlike anything since. [...] In that [...] void, modern HR was born, ushering in practices such as coaching, developmental assignments, job rotation, 360-degree feedback, assessment centers, high-potential tracks, and succession plans. They sound routine now, but they were revolutionary then. And they arose from an urgent need to develop and retain talent in the 1950s. }} </ref> In the late 20th century, advances in transportation and communications greatly facilitated workforce mobility and [[collaboration]]. Corporations began viewing employees as assets. "Human resources management" consequently,{{citation needed|date= July 2016}} became the dominant term for the function—the ASPA even changing its name to the Society for Human Resource Management (SHRM) in 1998.<ref name="SHRM"/> "[[Human capital]] management" (HCM) is sometimes used synonymously with "HR", although "human capital" typically refers to a narrower view of human resources; i.e. the knowledge the individuals embody and can contribute to an organization.<ref> {{cite book | last1 = Armstrong | first1 = Michael | chapter = Human capital management | title = A Handbook of Human Resource Management Practice | chapter-url = https://books.google.com/books?id=D78K7QIdR3UC | series = Gale virtual reference library | publisher = Kogan Page Publishers | date = 2006 | page = 29 | isbn = 9780749446314 | access-date = 2016-07-19 | quote = Human capital management (HCM) has been described as 'a paradigm shift' from the traditional approach to human resource management (Kearns, 2005b) [...]. }} </ref> Other terms sometimes used to describe the HRM field include "organizational management", "manpower management", "talent management", "'''personnel management'''", "workforce management", and simply "people management".
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