Human Resource Management In India Essay

The Importance of Human Resource Management Essay

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Armstrong (2006) defined Human Resource Management as a strategic deployment of an organisation's most valued assets; the people working there, who individually and collectively contribute to the achievements and the objectives of the business. Links between HRM and performance are predominantly focused on the following practices: sophisticated selection and recruitment methods, training, teamwork, performance-related pay and employment security (Wall, Wood, 2005). Products can be copied, methods of production can be changed and optimized, companies can move from one continent to the next trying to exploit geographical advantages however, the one inescapable truth is that a strong, talented workforce still exists as the most valuable asset…show more content…

Perry-Smith and Blum (2000) suggest that ‘bundles’ of HR practices capture ‘broader and higher-level effects’ than those captured by focusing on more exact, individual policies and are particularly appropriate for investigating firm-level effects (Cassoni and Labadie, 2013).

One of the most significant and valuable aspects of HRM is its control of the recruitment and selection of candidates. Human Resources is at the forefront of determining what kind of candidates an organisation wishes to add to its workforce, hence they are impacting organizational performance before people even step through the door. By developing recruitment strategies HR managers seek to attract the finest possible pool of applicants, encompassing the best, most talented individuals as a result of a carefully selected recruitment strategy, utilizing the concepts of person job fit (PJF) and person organization fit (POF). By hiring and selecting more talented people HRM maximizes the potential of the workforce and by association influences organizational performance. The more thorough and complex the recruitment process the higher quality the candidates. In a study of 259 Indian enterprises investigating the level at which recruitment and selection practices integrate with business strategies and its effect on organisational performance, it was found that the majority of Indian enterprises who had a high level of recruitment and

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Evolution of Human Resource Management in India!

In Western countries Human Resource Management (HRM) had its primitive beginning in 1930s. Not much thought was given on this subject in particular and no written records or document existed on this subject even as a philosophy in the Western ancient literature. The philosophy of managing human being, as a concept was found developed in ancient literatures in general in Indian philosophy in particular.

In the ancient times, the labourers were looked down upon. It was considered menial to work for a livelihood. But gradually the factory system came into existence and later industrialisation followed by urbanisation.

This led to a greater emphasis on’ labour management’. Earlier it was known as ‘Personnel Management’, then ‘Human Resource Management’ and in recent times as ‘ Human Resource Development’.

In ‘Personnel Management’, the employees were treated as mere labourers who required constant supervision. The human element was not given due importance. Later Elton Mayo’s “Hawathorne Experiments’ gave rise to “Human Resource Management’. Here the ‘Human element’ was emphasized.

The workers were treated not merely as “cogs in the machine” but as human beings, as individuals and as a social being. In HRM, the main aim was to encourage and motivate the employees to identify their capabilities and use them efficiently.

But the buzz word today is ‘Human Resource Development’. Unlike HRM, here the main objective is not just identifying an individual employee’s existing potentials but also those capabilities innate in him. HRD aims at bringing out the hidden potentials of an employee and help him develop as an individual.

The evolution of HRM in India can be shown briefly in the following Table.

Table: Evolution of HRM in India:


Development Status




1920s to1930s


Pragmatism of capitalists

Statutory welfare paternalism


1940s to1960s

Struggling for recognition

Technical legalistic


Of Techniques

Administrative ­




Regulatory conforming imposition of



Sophistication promising

Legalistic impersonal

Standards on other function





Human values, productivity through people


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