The HR Industry in India

Human resources is the set of the people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge which the individuals embody. Similar terms include manpower, labour, personnel, associates or simply people.

A human-resources department (HR department) of an organization performs human resource management, overseeing various aspects of employment, such as compliance with labor law and employment standards, administration of employee benefits, organizing of employees files with the required documents for future reference, and some aspects of recruitment and employee off boarding.

HR Industry (Human resource) industry in India has become a common need for almost every business that is looking forward for a good growth at the same time improved organization managements. Right from hiring the right candidate for the company till providing the best of the curriculum activates for the employees to grow, there are so many things that an HR actually does.

As per the research conducted, according to social, economic and cultural landscape, it is in unprecedented change due to which the need for a right solution that can lead to growth and professionalization has become quite common. This is the reason why HR industry in India has gained lot of scope.

It is considered as one of the most precious resource for any organization. Right from recruiting the right person on the board of a company till ensuring that the management works in an organized manner to achieve success of the organization, HR looks into every concern related to the company.

The solution that is offered by the team of HR is worth to take and certainly leads to the growth. There is a dedicated team of experts in HR who are engaged to offer the clients with workforce solutions and thus also acts as a middleman between the client and the employee.  

To staff the industry in a proper way has become a necessary for the dynamic business environment. The HR industry thus, ensure that entire gamut of employment solutions are given to the client to satisfy him in all the best possible ways.  

Looking forward to the increasing demand of HR industry, the following services are performed by the team which includes :

• Recruitment process outsourcing • Corporate training • Pay-roll processing • Organizing the clients meeting • Representing the team • Looking forward to increase ether venue of the Company  


Human resource management used to be referred to as “personnel administration.” In the 1920s, personnel administration focused mostly on the aspects of hiring, evaluating, and compensating employees. However, they did not focus on any employment relationships in an organizational performance level or on the systematic relationships in any parties. This led to a lacked unifying paradigm in the field during this period.

According to an HR Magazine article, the first personnel management department started at the National Cash Register Co. in 1900. The owner, John Henry Patterson, organized a personnel department to deal with grievances, discharges and safety, and information for supervisors on new laws and practices after several strikes and employee lockouts. This action was followed by other companies; for example, Ford had high turnover ratios of 380 percent in 1913, but just one year later, the line workers of the company had doubled their daily salaries from $2.50 to $5, even though $2.50 was a fair wage at that time. This example clearly shows the importance of effective management which leads to a greater outcome of employee satisfaction as well as encouraging employees to work together in order to achieve better business objectives.

During the 1970s, American business began experiencing challenges due to the substantial increase in competitive pressures. Companies experienced globalization, deregulation, and rapid technological change which caused the major companies to enhance their strategic planning – a process of predicting future changes in a particular environment and focus on ways to promote organizational effectiveness. This resulted in developing more jobs and opportunities for people to show their skills which were directed to effective applying employees toward the fulfillment of individual, group, and organizational goals. Many years later the major/minor of human resource management was created at universities and colleges also known as business administration. It consists of all the activities that companies used to ensure more effective utilization of employees.

Now, human resources focus on the people side of management.There are two real definitions of HRM (Human Resource Management); one is that it is the process of managing people in organizations in a structured and thorough manner. This means that it covers the hiring, firing, pay and perks, and performance management. This first definition is the modern and traditional version more like what a personnel manager would have done back in the 1920s. The second definition is that HRM circles the ideas of management of people in organizations from a macro management perspective like customers and competitors in a marketplace. This involves the focus on making the “employment relationship” fulfilling for both management and employees.

Some research showed that employees can perform at a much higher rate of productivity when their supervisors and managers paid more attention to them. The Father of Human relations, Elton Mayo, was the first person to reinforce the importance of employee communications, cooperation, and involvement. His studies concluded that sometimes the human factors are more important than physical factors, such as quality of lighting and physical workplace conditions. As a result, individuals often place value more in how they feel. For example, a rewarding system in Human resource management, applied effectively, can further encourage employees to achieve their best performance.

The HR industry also known as staffing industry is highly noticed in different streams like Information Technology, Finance, Management, Sales, and Engineering. As per the research made, it has been also noted down that now a days, the need for such services has increased in aviation and retail industry as well.     

The growth in the economy that is shown by India is highly said to be due to the HR industry that has come into existence. There are so many factors due to which Indian HR industry is driven that includes the client industry growth, entry of multinational companies, large conglomerates in new business domains and many more.   As per the report, it has been noticed down that the Indian HR industry with regards to permanent and temporary recruitment segments has shown tremendous improvement. It has been providing with the best of the opportunities in the market.

The HR industry is fast gaining ground. They are no longer a small and slow department but crucial members in the major business decision making processes in various companies. Read on to know how and why the Human Resources industry has changed, the prospects in this field and what skills are necessary to be employed in HR now.

So far, this industry in India as grown at a compounded annual growth rate of 21% which is certainly a good thing to notice. HR industry in India is certainly at its peak to get to more success and allow the client to grow.

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