Why do you think human resource management or personnel was previously held in such low esteem in many organizations?

Answer 1

Although any answer will be difficult to prove or even speculative, from personal experience this department does not have an immediate positive impact on income or profitibility. Sales departments sell and bring customers/income. Operations finds ways to reduce variable costs, automate where possible, eliminate unecessary staff, etc. to generate additional profit from the companies present income.

So the human resources enters the picture and changes/adds new policies and procedures about new business. Examples: all new customers must have a set credit rating or better, certain types of business will no longer be accepted, all new business accept weekly billing, etc. The sales department jobs just got harder.

In the same time period, policies are changed and added that bog down the otherwise smooth operations. Things like new employees must have 8 hours training before they can work alone, employee grievances no longer follow the chain of comman and having to tolerate a bad employee during the new termination process involiving added steps and documentation.

It becomes understandable how sales and operations departments can resent HR when they find themselves hampered, their jobs made difficult by a department that not only does not generate profit but actually lowers the profits in the short term. Although the long term benefits like reduced turnover, better quality employees and fewer workers compensation claims and lawsuits can create substantial savings overall, it takes time and some benefits are difficult to prove.

Also, since HR departments are in many cases one person, they do not have the greatest cheering section. All departments being equal, HR is more likely to be downsized than sales or operations.

While the above reasons may not always be the case, I believe they are historically the most common.

Hope this helps!