EVOLUTION OF HRM IN INDIA
The importance of personnel/human resources management is now universally accepted and India is not an exception to this rule. In India, large business enterprises, public sector enterprises and even medium and small enterprises appoint personnel manager or human resources development (HRD) manager to look after the personnel functions such as recruitment, promotions and transfers, training and manpower development, provision of welfare facilities, compensation management and so on. The term HRM is a relatively new term emerged during the 1970s. It is now used as a better and meaningful substitute to personnel management. HRM is wider in scope and has its distinct philosophy.
The process of industrial development started in India rather late. It was during the British Rule and that too after the First World War that textile, jute, iron and steel and other organised industries started in India. Recruitment, wage payment, welfare facilities and other personnel problems were noted only when labour class was employed on a large scale in the industrial sector. This is the starting period for personnel management in India. In the early British period and prior to that personnel management and personnel functions were absent, (Reference to some personnel functions and systematic management of resources was made in Kautilya's Arthashastra during the 4th century Be.) as industrial activities were extremely limited. They were also conducted on a small scale. As compared to India, the industrial growth was rapid in Europe. As a result, the concept of personnel functions and personnel management made rapid progress. The concept of personnel management function in India is based on similar concept developed in Europe much earlier.
The personnel function in India has been the product(outcome) of various factors such as industrial growth, labour, legislation, exploitation of workers in the early period and their demand for certain basic necessities of life. (e.g. fair wage, weekly, holiday, essential facilities at the work place)The need for labour officers in Indian industry was felt/realized as early as 1929 for the protection of labour force in industrial units.
In 1931, the members of Bombay Mill owners' Association appointed Labour Officers in their textile mills (on voluntary basis) for the settlement of grievances and disputes of employees. Similar arrangement was introduced in the jute mills in Bengal (under the leadership of Jute Mills Association). The labour welfare officers were given the responsibility to promote sports and welfare activities and provide food shops (canteen facility) to workers.
After Independence, many pro labour legislations were made for the protection and welfare of workers. The scope of personnel management function was made more broad and liberal. Many provisions regarding recruitment, salary payment and conditions of service were laid down. This gave recognition to the personnel management function in the industrial establishments.
Gradually, the need of personnel management and its role in cordial labour relations and fair treatment to employees need were recognized by industrial organizations. Personnel departments under the leadership of personnel managers were started in the companies. Liberal welfare facilities were introduced for the benefit of employees. Such measures taken for the protection and welfare of employees enlarged the scope of personnel management. Even training and manpower development programmes added new dimensions to the activities of personnel management. Many companies have now, prepared well-defined personnel policies, grievance and other procedures and liberal package of welfare facilities. Such additional activities/functions under personnel management raised the importance and popularity of personnel department.
CHALLENGES FACING HRM IN INDIA
With organizations achieving a HRD climate, a basic source of human motivation to perform higher, human wastage has been reduced. So, whereas personnel management regarded wages and salaries as the main source of motivation, Human Resource Management (HRM) regards creation of a congenial work climate (HRD climate), job challenges, creativity and opportunity for development as the motivating forces.
§ The challenges in HR that would be very critical are staffing. The biggest fear that such big corporate have is, if two or three wrong people get together, they can bring down the company. So, one is hiring the right kind of people, then right kind of values and the right kind of professional competencies.
§ The other challenge is to continuously allow people to develop and grow so that they have very high energy and the ability to energize others with the edge to resolve conflicts, and the ability to execute. You will also have to bear in mind that they also have aspirations. So managing the aspirations and rewarding them timely and accurately become critical in such organizations.
§ A lot of companies expect their problems to disappear the moment HR is implemented. "HRM is a means to an end, not the end ".
§ The other reasons why HR implementations often fail include lack of preparation, lack of top management involvement, faulty selection process, improper use of the HRM policies/department/funds, too high expectations.
§ Cost is an important factor while considering the implementation of HR activities. The companies are trying to cut costs while conducting HR programmes and are exorbitantly spending on other unimportant activities of the organization.
§ HRM is still in its stage of infancy, it yet has to evolve and become more a way of doing business or managing the organization.
§ It shouldn’t be used as a tool or remedial measure when the problem/ crisis arises.
§ Nowadays, the employees are being forced to attend self-improvement and overall development programmes compulsorily without the staff’s knowledge/interest and companies are spending huge amounts on such welfare activities, which are absolutely redundant and should be eliminated from the system.
§ Pay packages and incentives have to be supplemented with some supplementary packages but the company tries to replace the monetary benefits by some workshops or seminars or presentations or training courses which demotivate the workers because their expectations are being ignored in the bargain. We look at the career development of people very strongly. We do not believe that we should be the highest paymasters.
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