Trade unions now began to challenge the fairness of Taylor’s scientific management theories, forcing employers to take a more behavioral-oriented approach. Among the social security measures initiated in the aftermath of the Great Depression were the Norris-LaGuardia Act that made “yellow-dog” contracts unenforceable and the National Labor Relations Act (NLRA) or Wagner Act (1935) that gave employees the right to form unions and bargain collectively, and listed unfair labor practices.Įlton Mayo, the father of human relations, had conducted his famous Hawthorne Studies (1924 -1932) and concluded that human factors or non-monetary rewards were more important than physical factors or monetary rewards in motivating employees. The demands of wartime production had led to enactment of several provisions to ensure that issues related to wages or working conditions did not hinder production. Personnel management gained a more professional role in the aftermath of World War I and the Great Depression of the early 1930s. Side-by-side with providing training and wages, it broke strikes by blacklisting union members and forcing workers to sign “yellow-dog” contracts or an agreement not to join unions. The personnel department during this time was an instrument in the hands of the employer to ensure maximum productivity. Taylor’s scientific management theory that involved time studies in an attempt to establish the most productive way to undertake a process. The dominant philosophy during this time was that employees would accept rigid standards and work faster if provided training and more wages. Image Credit: wikimedia commons/benkid77 Personnel Management (Early 20th Century)īy the early 1900s, increased competition and pressing demands to fulfill orders made factory owners take serious note of productivity, and issues such as employee absenteeism and high turnover came into focus. The role of such labor departments in factories was a continuation of their previous commitment to monitor wages, safety, working hours, and related issues, but this change meant there were formal personnel departments that ensured statutory compliance. Many other factories soon set up similar personnel departments. The National Cash Register Company (NCR) established the first personnel management department to look into issues such as grievances, safety, dismissals, court cases, and also record keeping and wage management, in the aftermath of a bitter strike and lockout in 1901. The need to comply with such statutory regulations forced factory owners to set up a formal mechanism to redress issues concerning labor. The unhygienic and arduous work in factories led to many labor riots, and the government stepped in to provide basic rights and protections for workers. The Industrial Revolution of the mid-eighteenth century led to the emergence of large factories and the displacement of cottage-based guild manufacturing. The apprentice lived in the workshop or home of his master, and the master took care of his health and welfare. The earliest forms of human resource management were the working arrangements struck between craftsmen and their apprentices during the pre-Industrial cottage-based guild system. History of Time Management in the 19th Century
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