The Early Years of the Institute
During the 1970s, the Hong Kong economy began to take off. Substantial trade surplus and large-scale infrastructure together with construction, housing and real estate developments started to redefine the skyline and landscape of Hong Kong. In response to the drastic socio-economic changes, the business community began to recognise the growing needs for adopting a more structured and systematic approach to employee management. The government, in the meantime, had introduced an increasingly diverse range of labour laws during the 1970s to better protect the growing working population.
Despite the introduction of various employment ordinances and labour policies, there was insufficient or simply a lack of formal training for the increasing number of employees charged with the responsibility for personnel management. Nor was there any organization in place to facilitate the exchange of ideas and practical experience or to regulate the desired standards of the profession. Originating from the personnel management club of the Hong Kong Management Association, the Hong Kong Institute of Personnel Management (HKIPM) was officially founded in February 1977. The first full-time staff member was however not hired until 1983.
The HR profession and HKIHRM during the 1980s and 1990s
Despite the combined assurances of the Chinese and British governments during the 1980s, Hong Kong did experience a period of low political confidence. The exodus of professionals during the mid-to-late 1980s caused major problems for corporations in staffing their operations. However, thanks to the commitment of the Mainland in reforming its economy, Hong Kong enjoyed vibrant growth during the 1990s. Continued prosperity in the ten years leading up to 1997 also rendered employment a more complex issue for companies. The focus shifted from simply increasing staff levels to planning manpower to meet operational needs. Staff training also received a higher priority. The advent of computerization allowed better management of personnel records.
In addition, as more multinationals set up their regional headquarters in Hong Kong, new ideas and approaches were brought into play. China's continued development also presented HR professionals with new opportunities and challenges. It was at this point that personnel management in Hong Kong entered a very important phase of development, encompassing much broader area of concerns in terms of functionalities and geographical coverage, and playing an increasingly vital role as a business partner. It became known as "Human Resource Management" (HRM).
Against such a background, several landmark developments were recorded in the 1990s. In 1991, the Institute formed IPM Manpower International Ltd, a partnership between the Government and HSBC, to attract Hong Kong emigrants in Canada and overseas students back to Hong Kong. In 1992, the Hong Kong Society for Training and Development became part of HKIPM, leading to further growth in membership and services. In the same year, HKIPM facilitated a delegation from Taiwan to visit China, for the first time enabling a "tri-partite" dialogue between HR professionals in the Greater China region to happen. In October 1994, the Institute was renamed the Hong Kong Institute of Human Resource Management (HKIHRM).
1997 marked a significant turning point for Hong Kong. During the years immediately prior to the handover, Hong Kong was the focal point of global attention, being a place enjoying continued prosperity on the one hand and facing political change unheard of on the other. Being part of China again after 1997, Hong Kong was presented with new opportunities and challenges. The onset of the Asian Economic Crisis in 1997/1998 served as a wake-up call for individuals, organizations and government alike, highlighting the need to get prepared for new sources of turbulence that could emerge in an increasingly globalized market place. In the HR arena, organizations had started to have different and higher expectations of their HR people in providing solutions for business success amidst turbulence. Organizations began to be more willing to involve HR in major business decisions and HR faced the challenge of equipping themselves with new skills and the determination to succeed.
In 1996 one year prior to the handover, the Institute hosted the World Congress on Personnel Management. Over 1,200 delegates from all over 48 countries attended the 2-day event. It is held every two years in major cities across the world and the 1996 conference was staged for the first time in Asia. The Institute also decided to devote resources to look into the future competency of HR professionals by partnering with the University of Michigan Business School to conduct research into the subject matter in 1998.
Embracing the 21st Century and Beyond
The 21st Century was unveiled with spectacular fireworks staged across the globe but followed by continued turbulence in its first seven years. The IT bubble, which brought about a brief economic downturn during 2001/2002 when it burst, had laid a solid foundation for the world to go "virtual" and to transcend boundaries. The outbreak of SARS in 2003 vividly demonstrated how a crisis could spread in high speed within a short time span. In addition, the rise of China and India has disrupted the conventional economic order of the world. In short, organizations have found themselves operating in a brave new world with the globalization of markets and technology, democratization of information, permanent uncertainties and exponential increase in competition. One of the important implications is that wealth creation is now very much about the availability of talents. Being charged with the responsibility for attracting, retaining and developing talents, HR professionals are being looked upon as an important partner in achieving business success.
Entering the 21st Century, we have seen mounting demand of our members for market data and information, best practice sharing and new ideas and structured nowledge which could be accessed to in a timely manner. To serve such needs, the Institute has turned its website in phases into a resource centre for sharing knowledge and information as well as an interactive platform for collecting members' views and exchange of opinions. To provide a strategic framework for the mid to long term developments of the Institute, the Executive Council held a Retreat Session in 2002 to identity key action areas. They are "Accreditation","China", "Website/IT" and "SMEs".
Since its inception, the Institute has been moving forward with the staunch support of its members. With a record membership of over 4,000, the Institute has experienced a close to 35-fold increase in its membership over the past 30 years. Immediately ahead of the Institute is the launching of our new membership scheme by 2009/2010. This is an important step for us to take to fulfil our mission of enhancing professional standards in HRM and to increase the influence of HR professionals.
Meanwhile, over 50% of our members reported that they are charged with people management responsibilities for the China operations of organizations they are serving now. In addition, the Institute has also started to receive membership applications from Mainland companies and HR professionals. There is a tremendous
need to enhance the presence of the Institute on the Mainland in various ways under the "China" initiative, including the move to set up an office in one of the major cities in the near future.
The profession of HRM has made significant progress and evolved solidly over the past 30 years amidst changes and challenges. HKIHRM is poised to play a solid role to facilitate and drive the progression and evolution. The continued success of the Institute will however continue to rely on the unfailing support of its
members and other stakeholders who see the value of bringing the profession to a new level and a higher standard.