History And Development of

HRM in India
 Starting of HRM in India
 The World First Management book, titled
"ArthaShastra" written by Kautilya (the most reputed
economist and management guru of Indian History,
advisor to King Chandragupta Maurya) three
millennium before Christ, codified many aspects of
human resource practices in India.

 John Patterson, the president of the company, formed

a personnel department to manager the grief of
workers after a bitter union strike in 1901.

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In Past
 In 50’s - Employees recruited not to question
‘WHY’ but only ‘To do’

 In 60’s - Term like manpower, staff and

personnel came to used.

 In 70’s People realized that beyond a point,

productivity depended on people

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 Development of HR in India
Period Development status Emphasis Status

1920-1930 Beginning Statutory Welfare Clerical

1940-1960 Struggling for Introduction Administrative

recognition Techniques

1970-1980 Achieving Superiority Regulatory Managerial

Conforming
Imposition on Other
function

1990s Promising Human Value Executive

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 Continue….
 The 1992 UNDP Report of Human Development
ranked India at 134, in a list of 160 countries on the
human resource index.

 The first factory Act was adopted in 1881. The Factory

Commission was appointed in 1885. The factory Act
1949(Amended on 1987).

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 Different Type Of Act Passed
 Trade Union Act (1926)

 Workmen Compensation Act (1926)

 Trade Disputes Act (1929)

 Royal Commission on Labour (1931)

 Bombay Industrial Relations Act (1938)

 led to the Payment of Wages Act (1936)

 Factory Legislations Act 1969 (National commission of Labour, NLC).

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 Continue…
The scope of the function officer was widened during the
second world war such facilities as housing, medical etc..

Labour officer  welfare officer

Under the Industrial Disputes Act 1946.

Formulating policies on human resource planning,

recruitment and selection, training and development etc..

Welfare officer  Personnel officer

Under section 49 of factories Act, 1949.

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 Two Professional Bodies were
Found
 In 1948 – Indian Institute of Personal Management (IIPM)
Kolkata.

 In 1959 - The National Institute of Labour Management

(NILM) At Mumbai.

 In 1980 – These Two professional bodies merged together

and formed ‘National Institute of Personal
Management(NIPM) Headquarter at Kolkata.

 In 1990 = Milestone was achieved by remaining of America

‘Society for Personal Administration’(ASPA) as the ‘society
For Human Resource Of Management’ (SHRM)
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 List of Amending Acts and Adaptation
Order
 The Indian Independence (Adaptation of
central Act and Ordinances) Order,1948.

 The Adaptation of Law Order, 1950.

 The Part B States (Law) Act, 1951 (3 of 1951).

 The Industrial Disputes (Amendment and

Miscellaneous Provisions) Ac, 1956 (36 of
1956).
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 Continued…
 The Industrial Employment (standing Order)
Amendment Act, 1961 (16 of 1961).

 The industrial Employment (Standing Orders)

Amendment Act, 1963 (39 of 1963)

 The central labour laws (Extension to Jammu and

Kashmir) Act, 1970 (51 of 1970).

 The industrial Employment (standing Orders)

Amendment Act, 1982 (18 of 1982).
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 HR PAST AND PRESENT:
Traditional HR Function Emerging HR Practices
Administrative Focus Strategic Focus

Reactive Proactive

Separate Company Mission Key Part of Organization Mission

Production Focus Service Focus

Functional Organization with Vertical Process Based Organization

Lines of Authority • Generalist with Historical
Responsibility.
• Corporate of specialists
People as Expense People as Investment

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