Human Resource Management actually started with the working arrangement struck between the craftsmen and their apprentices during the pre-industrial cottage-base guild (association of artisans or merchants) system. The apprentice lived in the workshop or home of his master, and the master took care of his health and welfare. This practice showed the importance of selecting and training the right individuals for related jobs.
The Industrial Revolution as from late 1700 AD led to the emergence of large factories and the displacement of the cottage-based guilds. Hand-made goods were replaced by machine-made goods, cottage industries were replaced by large factories and small-scale production gave way to large-scale production. The new system required an extremely well-organized structure and led to the recruitment of a large number of people. The workers in the early factories faced long hours of work under extremely unhygienic conditions and mostly lived in slums.
The unhygienic and arduous work in factories eventually led to many labour riots and strikes and forced the governments to step in to provide basic rights and protection for workers. The first Personnel Management department to look into grievances, safety, dismissals, court cases and also record keeping and wage management in the aftermath of a bitter strike and lockout in 1901.
The Personnel Management during this time was an instrument in the hands of the employer to ensure maximum productivity. The Personnel Management, side-by-side with providing training and wages, broke strikes by blacklisting union members and forcing workers to sign an agreement not to join unions. The Personnel Management was more administrative in nature, dealing with payroll, complying with employment law and handling related tasks.
The dominant philosophy, an approach which led to Frederick W Taylor