The Origins of HR: Industrial Welfare and Early Labor Practices

Before HR Had a Name: The Earliest People Practices

Long before human resources became a formalized function, organizations faced a basic but pressing question: How do we manage people at work? The answer evolved not through corporate strategy, but through trial, error, and – in many cases – social reform. What we now call HRM began as a fragmented set of practices concerned with labor welfare, discipline, and industrial productivity.

The earliest roots of HR trace back to the Industrial Revolution in the 18th and 19th centuries. Factories needed workers, and workers needed rules, routines, and – eventually – rights. Yet the relationship was far from balanced.

The Rise of Welfare Officers

In early 20th century Britain, companies like Cadbury and Rowntree hired “welfare officers” – often women – to look after the moral and physical well-being of workers. These roles were part nurse, part social worker, and part administrator.

While the motives were mixed (philanthropy, productivity, and control), the results were the first systematic attempts to manage people beyond wages and punishments.

Scientific Management Meets Labor

In the United States, a different philosophy was emerging: scientific management, or Taylorism. Developed by Frederick Winslow Taylor, it promoted efficiency through task analysis and time-motion studies – treating workers as parts in a machine.

But Taylorism often ignored workers’ emotional and social needs. As dissatisfaction grew, so did the labor movement.

By the early 20th century, labor unions became powerful advocates for fair wages, safety, and hours. The push for collective bargaining laid the groundwork for employment law – and for the formalization of HR responsibilities.

War, Work, and the Expanding Employer Role

The two World Wars brought major changes to workforces. During WWI and WWII, women entered factories en masse, forcing employers to consider new workplace dynamics and roles.

Governments also played a greater role in shaping labor conditions. Rationing, compensation controls, and national labor policies standardized many employment practices.

After WWII, returning soldiers needed jobs, and welfare programs expanded. These shifts solidified the employer’s role in not just hiring and paying workers, but supporting them over the course of their careers.

Early HR as Administrative Support

By the 1940s–50s, many large companies had Personnel Departments. These were administrative functions – in charge of records, hiring, firing, and keeping management out of trouble.

But the seeds of a broader HRM philosophy had been planted. Employers realized that treating workers as mere resources – or worse, as liabilities – limited both performance and adaptability.

What It Means for HR Today

Modern HR is often seen as a strategic partner. But its origins are far more grounded in social work, compliance, and industrial discipline than strategy.

Understanding these roots helps HR professionals:

• Recognize the legacy systems and mindsets still present in some organizations,
• Appreciate the role of labor movements and legal protections in shaping HR today,
• Avoid repeating past mistakes by rehumanizing people practices.