The term Human Resource Management (HRM) evolved from and largely replaced Personnel Management. Personnel Management, prevalent in the early to mid-20th century, primarily focused on administrative tasks such as payroll, record-keeping, and compliance with labor laws. It was often reactive and operational in nature.
HRM, on the other hand, takes a more strategic and holistic approach, viewing employees as valuable assets (human capital) whose development and engagement are crucial for organizational success. It integrates HR practices with overall business strategy. Industrial Relations focuses specifically on employer-employee relationships, often involving unions. Labor Welfare deals with employee well-being and facilities. Organizational Behavior is an academic field studying human behavior in organizations, not a management function term replaced by HRM. Thus, Personnel Management is the correct predecessor.