From ancient civilisations to today's sophisticated HR systems, discover how HRM has transformed, addressing global challenges and opportunities.
Leader and manager development, organisational culture, HR technology, change management, career management and internal mobility are the top priorities for HR leaders in 2024. This alone demonstrates the breadth and diversity of responsibilities required of modern Human Resource Management (HRM).
Employers increasingly require professionals who can operate on a global scale. With shifting work patterns, new market opportunities and access to a wider pool of labour, the demand for HRM has never been higher. The global HRM market was valued at USD 24.25 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.7% from 2023 to 2030.
In this blog, we look at how the management of people has evolved to become a critical part of any modern business and organisation.
What is Human Resource Management or HRM?
People have managed people since the rise of the ancient civilisations, when rulers reigned over communities, collecting taxes and providing protection to their citizens. Considered among the oldest books on management, the Arthashastra and Chanakya Sutras, written by Kautilya (aka Chanakya) around 300 BC were written as guidelines for running an empire. They are still quoted today when promoting the philosophy of putting the employee first.
Indeed, employee rights lay at the heart of the development of the modern HR profession. During the Industrial Revolution, people – including waves of migrants – were being employed en masse, leading to increased calls for employee representation and labour law compliance.
It was in this context that the Welfare Workers Association, which later evolved into the Chartered Institute of Personnel Development (CIPD), was established in Britain in 1913. Notably, by 1916, it became compulsory for welfare workers to be appointed in all establishments controlled by the UK Ministry of Munitions, marking a significant step towards formalised HR practices in the UK.
The evolution of HRM
The transition from welfare to personnel management, HRM’s predecessor, became evident after World War II, reflecting global shifts in HR practices. In parallel with developments in the UK, the establishment of the American Society for Personnel Administration (ASPA) in 1947 signalled a pivotal moment in HR history. Labelling departments as well as the activities they were responsible for, personnel management embraced some of the broader activities within the remit today: recruitment and selection, training and development, compensation and benefits.
While it had been around previously, the term ‘human resources’ is typically associated with the 1954 publication of Peter Drucker’s The Practice of Management, which recognised the fundamental importance of employees as a resource. In 1989, the ASPA changed its name to the Society for Human Resource Management (SHRM) to “reflect [its] burgeoning mission to empower people and workplaces by advancing HR practices and maximizing human potential.”
By the 1990s, you could find ‘human resources departments’ within most organisations, which were now in charge of all aspects of the employee life cycle, managing processes and procedures around an increasingly international workforce. Newer priorities, including employee relations and retention, succession and talent planning, marked the start of the continuing trend of longer-term planning.
“The days of simply maintaining personnel files and advising on hiring, firing and compensation are long gone for HR professionals.”
Paul Salvatore, Allan Weitzman and Daniel Halem, How the Law Changed HR (2005)
Today, HRM has further evolved, not least in the sophisticated HR systems and people analytics used to track and improve employee performance, assess skills gaps and identify training and development needs. On their website, the CIPD defines ‘strategic HRM’ as “a framework for employees to be hired, managed and developed in ways that support an organisation’s long-term goals.”
In this way, HRM policies and procedures are mission critical: they can improve employee performance, develop the workforce, create a positive work environment, define values and goals, enhance brand and reputation, and save money by reducing turnover and improving productivity.
What do we mean by Global HRM?
Global HRM is the term used to describe HRM being performed on a global scale. It acknowledges the fact that more organisations now operate internationally with employees working around the globe. While the remit is essentially the same as strategic HRM, global HRM brings its own unique challenges and opportunities, as evidenced in the table below. HR policies and practices ultimately need to be adaptable to global, regional and in-country provisions.
| Opportunities | Challenges |
| Attract and employ top talent and find the most suitably skilled employees on a global scale | Low unemployment in some countries may make it difficult to fill specific jobs |
| Create a more diverse, inclusive working environment | Engaging a diverse, displaced workforce can be challenging due to cultural sensitivities and communication barriers |
| Benefit from innovation, fresh thinking and new ways of working | Conflict around central versus local decision making and mentality |
| Cost savings and efficiencies through cheaper labour and/or operating costs | Coordinating activities or getting people together can be complicated by multiple geographical locations and time zone differences |
| Deeper knowledge and insight from a large pool of employment data | Identifying and adapting to different employment legislation, workers’ rights and expectations e.g., around working hours, pay and benefits |
| Creating competitive and fair compensation structures in a global context | |
| Standardising or integrating performance tracking and reporting mechanisms when there may be different processes and systems in local branches |
How can the King’s online Global HRM MSc prepare you for a career in global HRM?
Our Global HRM MSc has been purposefully designed to help you navigate global HR challenges and develop the specialist knowledge and skills required to excel in this career. You’ll study theory and behaviour of managers, employees and organisations in a global and cross-cultural context. Course content has been informed by leading industry bodies, including the Society for Human Resource Management (SHRM) and the Chartered Institute of Personnel and Development (CIPD).
The knowledge of theory and practice you gain prepares you to develop and implement workforce strategies at individual, organisational, and international levels.
Do you want to drive strategy, empower managers, attract and retain top talent, and enhance employment relations and productivity? Studying HRM in depth could take your career to the next level.
