History of Human Resource
The term 'human resource' is traditionally called 'labor' in the political economy and economics, one of the three factors of production. It was used as labor right management in the olden day's organizations.
In economics human resource in the beginning was known as 'human capital'. Then it was later realized that humans are capitals which can be run through a particular time in fact they are social beings and things change day to day for them. It cannot be that if one person is told to work for a particular time till a year, it is not necessary that he will make it. There are many eventualities and circumstances those may stop him to do so. Sot his term was then decided to change. But still in macro economics they use this term for employees as a factor of production.
The socialist parties from the starting of human employment have played a role of working the human rights. They explained that humans themselves are not assets for a company but the work they produce are the asset for them. And, that they should be treated on the basis of their potentials and hard work. This act of their started the hiring and firing in a better manner.
This argument of 'human capital' and 'human resource' began until the United Nations recognized the same and supported the developing countries for this view.
This argument's extreme version is that of African people's slavery. They were treated as slaves and their potentials were taken as capitals by the developed nations of that time without paying them properly. This was the more extreme version of human capitalizing. This was then recognized by the United Nations.
As the above given information clearly states that in the olden days when people were not treated as humans but as an asset of the company there were many socialist parties those who wanted there to be a system by which these human beings could have their own problems and their own matters solved. This then gave rise to a concept of having a department which would only be meant for this purpose.
The idea was that the human resource department must be more than of just hiring and firing. It must be related to employee's problems like for instance their medical facilities, their salaries on time and thing like these. The employees must be free enough to consult his problems to someone who could take to the upper head.
It was considered that a separate department should be made devoted only to the human resources or the employees. This was the birth period of the human resource department.
Although it cannot be denied that this department was always there in a firm but hidden. But then it was made a separate department, there were rules made for its working and its conduct. And now human resource occupies a bigger position and is consider being an important part of a firm. If the employees are not satisfied they won't produce sufficient quality work.
Source (http://www.smallbusinessbible.org/history_humanresource.html)
