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Evolution of HRM in INDIA

Shubham Gaur Follow
MBA Candidate | PGP-BL Class o… 55 2 0
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India is the largest democracy in the world & one of the oldest human civilizations. The country has
a rich history and diverse culture. It is a birthplace of four of the world’s major religions and is
characterized by a diversity of religious beliefs & practices. India is one of the exciting emerging
economies which add 10+ million people to its working force every year. A very efficient HRM
system and labour policies are required to handle a huge & diverse country like ours. Let’s look at
the evolution of Human Resources Management (HRM) in India
India has a deep-rooted value system which influenced the societies & working institutes. Collective
culture has always prioritized values of duty towards family & society. Even the world’s first
management book “Arthashastra” was written in India around 300 BC which has two major
ideologies related to present Human Resources, 1) Public Policy & 2) Administration & Utilization of
people. Long back we were aware that the greatest asset of any organization is its people. We can
see from the Mauryan period (320 BC to 181 BC) that there were a variety of craftsmen, artists,
labourers, etc. who were employed in various activities including mining, metallurgy, forces etc.
owned by the state. There used to be appointed officers who used to look after the welfare of the
workers. We also see traces of formed unions of craftsmen in the history and few instances
mentioning fixed pay for the workers to strengthen job stability. Join now Sign in

During the British Era, industrialization took place in India and various labour laws such as
“Factories Act”, “Workmen’s Compensation Act”, “Mines Act”, “Truck Act” and “Trade Union Act”
were enacted. There were few discriminatory policies, however, Indian employers continued to grow
on British policies. Initially, line managers used to handle the labour, however with the growing size
of the workforce and increasing complexity at work, a separate department which deals with labour
matters came into existence, especially in large scale industrial establishments. Few main features
of this labour/personnel management department were authoritarian control, strict supervision,
provision of some incentives to increase production & emphasis on discipline and general
indifference towards human aspects. The progress in the HRM field was continuous before
independence and many of our freedom fighters also pressurized employers to improvise their
approach towards workers and give due attention to human aspects in their enterprise.  
Post-Independence, there was thrust on HRM. Adoption of the Indian constitution, which contains
significant clauses related to labour welfare and various human resources angle came into force.
Apart from the constitution, there were a series of labour laws and enactments which brought
several labour/human resource matters under the domain of state intervention.  These labour laws
have resulted in the enlargement of the functional areas of personnel management by covering a
variety of aspects concerning workers and setting up minimum standards in many of these areas.
The requirement of appointing welfare officers in factories and mines of prescribed size reflects the
desire of the government to recognize the need for and importance of giving due consideration to
human aspects in the industry.
In present times, the Indian industry has emerged stronger and companies across all industries
have seen good results. The Indian Industrial Sector, HRM is regulated mainly by the government
where multiple laws & policies for workers have to be followed by organizations. In the private
sector especially for the global linked organizations, the expectations of the employees are very
dynamic & retention of the employees is a challenge.  As per the survey results of 2019 (also shown
in the graphs as under), average salary increases stands at 9.8% and average annual attrition at
13.1%

The role of HR is very dynamic in the present Indian scenario. The role has evolved from earlier
supporting role of managing payrolls and manpower to a strategic partner in the growth of the
business. It’s now an integral part of the corporate and now innovative HR practices have also been
USP of many companies. Presently HR does the following role in the Indian context – Join now Sign in

1.     Investing in Talent (i.e., employee experience, Happiness at work & Employee wellness)
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

CONCLUSION
HRM has started focusing more on development aspects of human resources.
HRM emphasis on a harmonious balance between employee demands & organizational
requirements.
Development of HRM in India has now occupied a centre stage and its growing at an apt pace with
the industry.
 

References
http://www.whatishumanresource.com/hrm-in-india
https://www.api-network.org/wp-content/uploads/2019/04/OMAM-Increment-Trend-India-
2019.pdf
https://www.ukessays.com/essays/business/human-resource-management-practices-in-india-
business-essay.php
https://www.yourarticlelibrary.com/human-resource-management-2/human-resource-
management-in-india/99674

Published By
Shubham Gaur Follow
MBA Candidate | PGP-BL Class of 2…

Dear All, Hope You and Your families are healthy and well during this time of the pandemic. Writing my first article
as part of the Human Resources Management Course, Term 2, PGPBL - IIM Kozhikode. Tried to cover briefly on
Evolution of HRM in India. Kindly do give a read and provide Your valuable feedback. Yours ~ Shubham

2 comments

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Aditya Pathak
6mo
Placecom | YouTuber | IIMK & IITKGP

Interesting read Shubham. Role of HRs have evolved in India, they sit in high chairs in any
business function related meetings, as their contribution has been realized over time. From
what started as just a hiring/firing entity, now HRs assume roles like managing,
transforming, and building workforce. Not to forget the technological advancement in the
form of AI, Robotization in this very field.
Like Reply 1 Like

Charmi Agarwal
6mo
MBA Candidate | PGP-BL Class of 2020 | IIM KOZHIKODE | Sales & Marketing | Reliance Industries
Limited

There are so many diverse cultures within India even as India is becoming sweetspot for
foreign investments. With a huge, diverse, young and culturally rooted workforce, I think
India would be guiding force in new age #HRM backed by digital transformation.
Like Reply 1 Like
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