Shift of personnel management to HRM took place in three stages

1.  Records and Administration
2.  Accountability Regulations
3.  Competitive Advantage

1.  Records and Administration
In first stage the primary activities, which were carried out by personnel department, were, Planning Comp
picnics Scheduling vacations, Enrolling workers for health-are coverage, Planning retirement parties Th
concerns include how to mange layoffs, address reduced employee loyalty, create a well trained highly motivawork force that can deliver higher quality and productivity, mange and increase diverse workforce and con health care cost.

2.  Accountability Regulations
During this stage primary framework of rules and regulations started emerging tin the organization. In 1970s,
job of the HR manger was to keep their companies out of court and in compliance with the increasing num
of regulations governing the work place. In the 1980s HR mangers had to address staffing costs related
mergers and acquisitions and downsizing. The economic issues related to an increasingly global and comple
workplace characterize the 1990s. Beside these concerns.


3.  Competitive Advantage
The aim of this shift stage is from merely securing compliance to the more ambitious one of winning
commitment. The employee resource, therefore, becomes worth investing in, and training and development thus assume a higher profile. These initiatives are associated with, and maybe are even predicated upon, a tendency to shift from a collective orientation to  the management of the workforce to an individualistic one. Accordingly management looks for 'flexibility' and seeks to reward differential performance in a differential way. Communication of managerial objectives and aspirations takes on a whole new importance. What separates or distinguishes HRM from the traditional personnel function is the integration of HRM into strategic management and the pre-occupation of HRM with utilizing the human resource to achieve strategic management objectives. HRM "seeks to eliminate the mediation role and adopts a generally unitary perspective. It emphasizes strategy and planning rather than problem solving and mediation, so that employee cooperation is delivered by programme of corporate culture, remuneration packaging, and team building and management development for core employees, while peripheral employees are kept at arm's length.
 HRM strategies may be influenced by the decisions taken on strategy (the nature of the business currently and in the future) and by the structure of the enterprise (the manner in which the enterprise is structured or organized to meet is objectives). In an enterprise with effective HRM polices and practices, the decisions on HRM are also strategic decisions influenced by strategy and structure, and by external factors such as trade unions, the labor market situation and the legal system. In reality most firms do not have such a well thought out sequential HRM model. But we are considering here is also effective HRM, and thus a model where HRM decisions are as strategic as the decisions on the type of business and structure.