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The Effect Of Human Resource Development On Employment Relations.”

Human resource management used to be referred to as “personnel administration.” In the 1920s, personnel administration focused mostly on the aspects of hiring, evaluating, training, and compensating employees. However, they did not focus on any employment relationships in an organizational performance level or on the systematic relationships in any parties. This led to a lacked unifying paradigm in the field during this period. [5]

According to an HR Magazine article, the first personnel management department started at the National Cash Register Co. in 1900. The owner, John Henry Patterson, after several union strikes and employee lockouts, he organized a personnel department to deal with grievances, discharges and safety, and training for supervisors on new laws and practices after several strikes and employee lockouts. This action was followed by other companies, for example, Ford had high turnover ratios of 380 percent in 1913, but just one year later, the line workers of the company has doubled their daily salaries from $2.50 to $5, even though $2.50 was a fair wage at that time. [6] This example clearly shows the importance of effective management which leads to a greater outcome of employee satisfaction as well as encouraging employees to work together in order to achieve better business objectives.