Saturday, June 13, 2009

IMPORTANCE OF HRM IN CONTEMPORARY INDIA

Management trends in India have followed patterns similar to those in the world, but with a phase lag. Identifiable trends have been…
1950s – The Nehruvian era had a thrust on development of infrastructure, as the India taken over by our leaders from the Britishers was developed primarily with the aim of its exploitation only. Therefore, emphasis was laid on acquiring/developing capital resources - mining, heavy industry, and also technical educational Institutes for required technical manpower.
1960s - After the development of a production environment, the need was felt for developing systems for raw materials management to ensure continuous and smooth production in the established industries, and its functions like purchase, stocking, inventory control etc. Across the world, the advent of computers also saw development of systems like MRP-I (Materials Requirement Planning), which arrived in India in 1970s.
1970s - It was, but natural, that when the production environment and raw material arrangements were put in place, the thrust had to shift to better production techniques. Adoption of work-study, time-study, shop-floor designing techniques, material movement study, process study (Production Engineering & Management) and other techniques gained momentum. Across the world, MRP-II (Manufacturing Resources Planning) was being used, which arrived in India, only in a handful of top-notch organisations, in 1980s.
1980s - The recognition of money as the main driving force, the resource to closely monitor and govern, recognised elsewhere in the world much earlier, was felt in India in 1980s. This led to a thrust on financial management - accounting, budgeting, funds generation, monetary planning etc. ERP (Enterprise Resource Planning - very powerful software(s) for application across the entire organisation, covering all possible functions of an organisation including marketing of its products through internet, requiring experts to work with the organisation and 'tune' the software to that organisation's needs; a typical such software comes in about 50 compact disks) systems on computer were under implementation across the world. Their arrival in India has been seen only in 1990s, and yet limited to a couple of hundred organisations.
1990s - The thrust on material-production-financial management has continued, but with a lesser emphasis, as it has been taken over by Information management. The IT fever caught on in India, yet again with a lag of a decade as compared to the other world (some experts would say 15 or more years). Even today, though at personal level IT has gained several miles, at organisational levels, IT is far behind (more so in Public/Govt sector).
The concept of recognition of Human Resource as a very important organisational asset caught on in the world in 1980s, and is yet to gain sufficient momentum in India (it has only received lip-service so far). Some private organisations have made a humble to modest beginning, at best. Against severe competition with IT, this field is still expanding.
An observation to make is that India lagged behind all these years DUE TO its large size of HUMAN RESOURCE. If the same resource is turned in favour of the development of our country exploiting its full potential, knowing that Indians are behind progress of all developed nations, there is nothing which can beat India in surging ahead of the world!

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