Development of HR in India

Humain-I is pleased to present the eleventh issue of HRiter, our monthly newsletter!

How Human Resource Management evolved with years across the globe? How HRM evolved in India & what are HR professional’s roles presently? What are the factors governing HRM in India & the challenges faced by HRs? How significant is freedom at the workplace?  What Mr. Suudharshan Vaidhya has to say about Leadership Change and Organizational Culture?

Read about all these in this issue of August. Happy Reading!

#hr #mba # humanresources #freedom #evolution #india #hrm

Around the end of the 19th century, “WELFARE OFFICERS” came into being, solely concerned with female protection and grievance redressal.

WW 1: the war boosted the development and establishment of workforce management in form of the welfare officers. Large-scale women recruitment was taking place to fill gaps left by men who went for the war.

1920s: “PERSONNEL ADMINISTRATION” jobs with titles of Employment Manager/ Labour Manager emerged and were concerned with managing the recruitment, dismissing, supervision, redressal, bonus and evaluation etc.

1930s: improving employee benefits for talent acquisition, retaining and motivating employees.

1935: Social Security Act

1938: Fair Labour Standards Act: right to Minimum Wage, 40 Hours Work-week, Overtime at time-and-a-half, standards for Child Labour.

WW2: pushed welfare and personnel management into full-time job roles

1940s: “PERSONNEL MANAGEMENT” Employee management and welfare. War experience had shown that employment management and policies greatly influenced output and productivity.

1968: Personnel Managers were held under criticism for the lack of industrial strategic planning and negotiation skills.

1970s: “PERSONNEL/HUMAN RESOURCE MANAGEMENT” employment began developing significantly. Recruitment testing and management training became more widely used.

Mid 1980s: The term Human Resource Management emerged mostly from the USA. Viewed as an asset or resource-like machines working for the benefit of the organization.

1990: Older Workers Benefit Protection Act

1990s: HUMAN RESOURCE MANAGEMENT Revision of Civil Rights Acts, Family and Medical Leave Act, Uniformed Services Employment and Reemployment Rights Acts

2000s: “STRATEGIC HUMAN RESOURCE MANAGEMENT” Interrelating organization’s resources with the strategies, goals and objectives. Aimed to leverage the resources in order to increase flexibility, innovation, productivity and competitive advantage.

Companies like Google is highly appreciated in providing freedom of thoughts to its employees. Employees are encouraged to spend a fifth of their time on anything that they are really passionate about. It’s one way in which innovation beyond regular work is encouraged and the passion present in highly spirited and talented employees is fuelled. “It provides the individual with the independence to experiment, improve and innovate while at the same time also benefiting the organisation overall,” says Ramamurti.

Presently, HR does the following role in the Indian context –

1. Investing in Talent

2. Bracing for Diversity

3. Greater Emphasis on Employee Development.

4. Use of Technology in HR.

5. Motivating the Workforce

6. Managing People

7. Competency Development

8. Trust Factor

9. Work-life Balance

10. Bridging the demand-supply gap


After independence was won in 1947, the Constitution of India of 1950 embedded a series of fundamental labour rights in the constitution, particularly the right to join and take action in a trade union, the principle of equality at work, and the aspiration of creating a living wage with decent working conditions.

Its been 74 years for India is free, but our achievement of 360 degree freedom will be achieved when we feel free at all spheres of life. Freedom at workplace is an equally important aspect. For an employee he looks for freedom of thoughts, words and actions.

True independence at workplaces implies:

Freedom to operate from, Freedom to question, Freedom to experiment, Freedom from prejudice, Freedom to choose


1.Technological Innovation: Fast technological changes and innovations are going down everywhere in the world. As a result of these technological changes, the technical personnel are more and more required. Hence, procuring technically adept workers is essential to match the dynamic job requirements.

2.Economic Factors: Economic conditions influence the monetary “health” of the organisation. Under favourable economic conditions, the growth of existing programmes and the creation of recent programmes are very likely. With less favourable or deteriorating conditions, contraction or cancellation of some programmes is also necessary. Thus, several economic factors affect the human resources management of an organisation by influencing its operations.

3.Employee’s Organisations: Employee’s organisations have mustered strength that’s parallel to the expansion of industrialism values within the organisations. Labour unions seek to bargain with management over the terms and conditions of employment for their members. As a consequence, most HR activities are subject to joint decision making when a union represents employees.

4.Labour Markets: In labour markets, organisations seek workers (demand for labour), and individuals offer their convenience to organisations (labour supply). Labour supply and demand have implications for all activities, however significantly for compensation and external staffing. Moreover, they’re usually not subject to organisation control, causing potential turbulence and uncertainty for HR management.

5.Dynamic Demand of Employers: Organisations also change, and consequently, their demands for workers also will change. The historical period and neck-to-neck selling competition amongst most organisations demand that the present employees adapt to each changing work situation and learn new skills, information etc., to handle the recent changes.


“Many times, an organization faces a situation where a new leader is required. It may be due

to a pressing need for change, or to bring in a unique cultural perspective, and so on. But, a research study done by professors Yeun Joon Kim and Soo Min Toh has found that new

leaders mostly just import their previous organization’s culture regardless of the new

organization’s needs. Since this defeats the purpose itself, one solution would be for the new leaders to be aware of their possible past cultural rigidities. Another way is for the company to facilitate full integration and understanding of the company values rather than just provide onboarding. These ideas will enable a smooth leadership change in line with the organization’s culture.”


IPM 2020-25
IIM Indore



By Gurcharan Das

Talks about India’s economic journey after its Independence in 1947

India faces a talent shortage of 63 percent, says ManpowerGroup 2020 report.India’s talent shortage figure is higher than global average of 56 percent.

6.Legal Factors: One of the foremost vital external factors that affect HRM is the legal environment. The management cannot manage the human resources unilaterally. It’s currently compelled to manage its employees in tandem with the legislation enacted by the government at the centre and the states. The vital legislation enacted in India HRM is-Factories Act, Trade Unions Act, Workmen’s Compensation Act, the Payment of Wages Act, The Minimum Wages Act, Payment of Gratuity Act, and the Maternity Benefit Act.

7.Human Resources within the Country: The structure, values and level of education of human resources in the country influence the HRM performance of any organisation. The influence of the workforce in the country can be studied through:

(a) amendment within the structure of employment with the entry of personnel with entirely distinct backgrounds.

(b) The changes that have taken place in the workforce structure over the years have led to the emergence of current values in the organisations.

(c) Increased level of formal education has led to the changes in the angle of workers. The well-read employees continually challenge and question the management’s selections and need a voice in their affairs that affect their interests.

Thus, several environmental factors affect the performance of specific tasks of HRM. Changes within the internal and external environmental factors complicate the duty of each line and human resource manager.


Scarcity of Talent: With an overall lower skill set in India, building a stronger talent pool than its competitors

Cost Pressure: With the rise in entrepreneurship and SMEs in India, contributing to competitive advantage and continuous improvement on cost reduction.

To overcome the challenges, management should develop refined techniques and competent individuals to manage personnel on sound lines.

Humain-I, HR Club

Indian Institute of Management Indore



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