All of these above-mentioned changes and challenges prompted the development of a “new” HRM function (Kochan, Katz, &
McKersie, 1986). This new function is much more of a strategic partner in organizations due to the recognition that human
resources are critical to the functioning of organizations in the service and knowledge economies. In addition, the late 20th
century saw an increased reliance on employee-relations, and HRM was called on to foster a sense of trust in the relations
between managers and workers (Dulebohn et al., 1995). American organizations began to stress non-unionized HRM practices
and to adopt many of the Japanese management principles that emphasized employees as critical resources that can give
organizations a competitive advantage. As a result, HRM has evolved from a “personnel” function to a human relations, then labor
relations, then industrial relations, and most recently strategic HRM function.