Write a note on HRM in India evolution and challenges.

HRM  Evolution and Challenges in India.

Like U.K and USA, the evolution and development of HRM in India was not voluntary. After second world war difficult conditions erupted in India. Malpractices in the recruitment of workers and payment of wages led to trade union movement.

In 1931, on the recommendations of The Royal Commission of Labour, Jobber system was abolished. After independence, the Factories Act, 1948 laid down provisions for Labor Officers, Labor welfare, safety and regulation of working hours and working conditions. Two professional bodies emerged. They are ‘The Indian Institute of Personnel Management’ (IIPM), Calcutta, now Kolkata and the National Institute of Labor Management (NILM), Bombay now Mumbai.

These two institutes are guiding in Human Resource Management and Labor Management. The massive thrust on basic industries in India 1st Five year plan (1956-61), which accelerated public sector undertakings, gave thrust to personnel management and HRD practices. The professionalism in managing organizations became quite discernible by 1970s.

There was a clear shift from welfare approach to efficiency approach. The two professional bodies IIPM and NILM merged in 1980 to form National Institute of Personnel Management (NIPM) with Kolkata as headquarters. Evolving along the years, the approach has shifted to human values and productivity through people.

It is against such a shift in managing people in the 1990s, a new approach has emerged as human resource management (HRM). This approach focuses more on development aspects of human resources. The changing internal environment in organizations calls for better understanding of human resources management. The culture or climate of an organization is made up of traditions, values, habits, and ways of organizing, and interpersonal, relationships at work.

Culture is reflected in organizational structure, strategy, systems, power and reward distribution, conformity development process, motivational dynamics, organizational clarity, warmth and support received by employees, leadership styles, and standards of performance and shared subordinate values.

An effective work culture is flexible, integrated, decentralized, performance oriented, quality conscious, co-operative, collaborative, and supportive. The major elements of HRM strategy and functions can be related to organizational culture. Corporate mission, philosophy and strategic plan give birth to culture in organizations.