HomeBlogHRM: Transforming Employer-Employee Relations Since WWII
Human Resources Management

HRM: Transforming Employer-Employee Relations Since WWII

26 January 2023
This is a black and white photograph of a hallway. The floor is checkered and has alternating white and black squares. There is a woman standing at the end of the hallway, wearing a white turtleneck and black jacket. On the left side of the image is a white letter “O” on a black background. There is also a green text on a black background at the bottom right of the image. The woman is standing in front of a black and white checkered floor. On the right side of the image is another white letter “O” on a black background, as well as another white letter on a black background. The image also features another white letter on a black background at the top right of the image. The hallway is long and narrow, and the checkered floor continues throughout the hallway.

The growth of the personnel function after WWII was a pivotal period in the history of human resource management. The rapid industrialization and technological advancements that followed the war created an unprecedented demand for skilled workers, particularly in technical and engineering fields. As a result, personnel departments found themselves scrambling to expand their recruitment efforts and develop more sophisticated wage and salary programs to attract and retain top talent.

TimelineChanges in Personnel FunctionImpact
Post World War IIRapid growth due to industrialization and technology emergence.Increased need for educated and specialized workers; expansion of wage, salary programs, and benefits administration.
Post World War IIShift of power dynamics between managers and personnel.Greater collective voice for workers; increased need for formalized employer/employee relations programs.
1960s-1970sEnactment of significant employment legislation like Equal Pay Act, Age Discrimination in Employment Act, and Occupational Safety and Health Act.Establishment of a legal framework to protect employee rights and safety.
1960s-1970sIncreased need for personnel departments to ensure compliance with new laws.Maintainance of a productive and harmonious working environment.
Post 1970sTransformation of personnel function into a sophisticated and professional field.Increased importance of HRM to organizational success.
ThroughoutTransformation and evolution of employer-employee relations.Effective HRM becoming crucial for organizational success and workforce satisfaction.
OngoingNeed for continuous tools and strategies in response to rapid technological advancements.Continuous adaptation and evolution of HRM responsibilities from recruitment, training, benefits administration to ensuring employees' digital safety.
FutureEmergence of HR Tech and data-driven decision making.Need for HR professionals to develop competencies in data analysis and technology application.
FutureGrowing focus on work-life balance and employee well-being.HRM strategies must prioritize employee satisfaction and work-life integration.
FutureGreater emphasis on diversity, equity, and inclusion in the workforce.HRM must ensure practices align with society's progressive attitudes towards diversity and inclusion.

I remember my grandfather telling me stories about his experience working in a factory in the 1950s. He would often reminisce about the changes in HR practices post-WWII, marveling at how quickly things had evolved. "Back then, the personnel department was just a small office in the corner of the building," he would say with a chuckle. "But by the time I retired, it had grown into a full-fledged department with its own floor and a team of professionals."

  • Introduction

  • Growth of the Personnel Function after WWII

  • The shift in Power Between Managers and Personnel

  • Employment Legislation of the 1960s and 1970s

  • Conclusion

The shift in power between managers and personnel was another significant development during this period. As workers began to organize and assert their collective voice, management could no longer exercise unilateral control over the workplace. This shift was further reinforced by the evolution of HR management since WWII, which saw the emergence of formalized employer-employee relations programs and a greater emphasis on employee rights and well-being.



The impact of employment legislation in the 1960s cannot be overstated. Laws such as the Equal Pay Act, the Age Discrimination in Employment Act, and the Occupational Safety and Health Act established a legal framework for protecting workers' rights and ensuring their safety on the job. These laws also had a profound impact on the role of technology in shaping HR practices, as personnel departments had to adapt to new record-keeping and compliance requirements.

The significance of the personnel function in organizations became increasingly apparent during this period. As Peter Drucker observed in his seminal work, The Practice of Management, "The personnel function is not a necessary evil; it is an essential part of the business enterprise" (Drucker, 1954, p. 243). Drucker's insights were echoed by other management theorists of the time, such as Douglas McGregor, whose The Human Side of Enterprise emphasized the importance of understanding and motivating employees (McGregor, 1960).



The history of employment legislation in the 1960s and 1970s is a fascinating study in the evolution of workers' rights. From the Civil Rights Act of 1964, which prohibited discrimination based on race, color, religion, sex, or national origin, to the Employee Retirement Income Security Act of 1974, which established minimum standards for pension plans, these laws fundamentally reshaped the American workplace (Kochan, Katz, & McKersie, 1986).

The importance of employee rights and safety in HR cannot be overstated. As Maslow's hierarchy of needs suggests, workers cannot be expected to perform at their best if their basic needs for safety and security are not met (Maslow, 1943). This insight has been borne out by numerous studies over the years, including a recent meta-analysis by Christian, Bradley, Wallace, and Burke (2009), which found that workplace safety is positively associated with job satisfaction, organizational commitment, and job performance.

The history of HRM is the history of the evolution of employer-employee relations.

IIENSTITU
Post World War II, Rapid growth due to industrialization and technology emergence, Increased need for educated and specialized workers; expansion of wage, salary programs, and benefits administration, Post World War II, Shift of power dynamics between managers and personnel, Greater collective voice for workers; increased need for formalized employer/employee relations programs, 1960s-1970s, Enactment of significant employment legislation like Equal Pay Act, Age Discrimination in Employment Act, and Occupational Safety and Health Act, Establishment of a legal framework to protect employee rights and safety, 1960s-1970s, Increased need for personnel departments to ensure compliance with new laws, Maintainance of a productive and harmonious working environment, Post 1970s, Transformation of personnel function into a sophisticated and professional field, Increased importance of HRM to organizational success, Throughout, Transformation and evolution of employer-employee relations, Effective HRM becoming crucial for organizational success and workforce satisfaction, Ongoing, Need for continuous tools and strategies in response to rapid technological advancements, Continuous adaptation and evolution of HRM responsibilities from recruitment, training, benefits administration to ensuring employees' digital safety, Future, Emergence of HR Tech and data-driven decision making, Need for HR professionals to develop competencies in data analysis and technology application, Future, Growing focus on work-life balance and employee well-being, HRM strategies must prioritize employee satisfaction and work-life integration, Future, Greater emphasis on diversity, equity, and inclusion in the workforce, HRM must ensure practices align with society's progressive attitudes towards diversity and inclusion

The professionalization of the personnel function in modern workplaces is a testament to the enduring legacy of the post-WWII era. Today's HR professionals are highly trained and specialized, with a deep understanding of employment law, organizational psychology, and business strategy. As Ulrich and Brockbank (2005) argue in their book, The HR Value Proposition, HR professionals must be able to create value for their organizations by aligning HR practices with business objectives and delivering measurable results.

Looking to the future, it is clear that the personnel function will continue to evolve and adapt to new challenges and opportunities. One area of particular interest is the role of technology in shaping HR practices. From artificial intelligence and machine learning to virtual reality and gamification, new technologies are transforming the way HR professionals recruit, train, and engage employees (Stone, Deadrick, Lukaszewski, & Johnson, 2015).

Another key trend is the growing emphasis on diversity, equity, and inclusion (DEI) in the workplace. As organizations become increasingly global and multicultural, HR professionals must be able to create inclusive environments that value and leverage diversity (Shore et al., 2011). This requires a deep understanding of cultural differences, as well as a commitment to ongoing learning and development.

Ultimately, the success of any organization depends on its ability to attract, retain, and engage top talent. As the personnel function continues to evolve and mature, it will play an increasingly critical role in helping organizations achieve this goal. By staying attuned to the latest trends and best practices in HR, and by always putting the needs of employees first, HR professionals can help create workplaces that are not only productive and profitable, but also fulfilling and meaningful for all who work there.

References

Christian, M. S., Bradley, J. C., Wallace, J. C., & Burke, M. J. (2009). Workplace safety: A meta-analysis of the roles of person and situation factors. Journal of Applied Psychology, 94(5), 1103-1127.

Drucker, P. F. (1954). The practice of management. New York, NY: Harper & Row.

Kochan, T. A., Katz, H. C., & McKersie, R. B. (1986). The transformation of American industrial relations. New York, NY: Basic Books.

Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396.

McGregor, D. (1960). The human side of enterprise. New York, NY: McGraw-Hill.

Shore, L. M., Randel, A. E., Chung, B. G., Dean, M. A., Holcombe Ehrhart, K., & Singh, G. (2011). Inclusion and diversity in work groups: A review and model for future research. Journal of Management, 37(4), 1262-1289.

Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), 216-231.

Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston, MA: Harvard Business School Press.

Personnel Function World War II Industrialization Technologies Wage and Salary Programs Benefits Administration Performance Appraisal Systems Collective Voice Power Employment Legislation Equal Pay Act Age Discrimination in Employment Act Occupational Safety and Health Act Employee Rights Safety Productive Harmonious Working Environment Sophisticated Professional Field
Yu Payne is an American professional who believes in personal growth. After studying The Art & Science of Transformational from Erickson College, she continuously seeks out new trainings to improve herself. She has been producing content for the IIENSTITU Blog since 2021. Her work has been featured on various platforms, including but not limited to: ThriveGlobal, TinyBuddha, and Addicted2Success. Yu aspires to help others reach their full potential and live their best lives.
Yu Payne
Blogger

Yu Payne is an American professional who believes in personal growth. After studying The Art & Science of Transformational from Erickson College, she continuously seeks out new trainings to improve herself. She has been producing content for the IIENSTITU Blog since 2021. Her work has been featured on various platforms, including but not limited to: ThriveGlobal, TinyBuddha, and Addicted2Success. Yu aspires to help others reach their full potential and live their best lives.

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