The theme of our research is to establish the nature and importance of human resource management (HRM) and how it emerged, to provide some evidence of its context, to discuss its potential and future development. Human recourse requires more attention and careful management than any other resource of an organization. In the 1980’s and early 1990’s the term HRM came into academic horizons and gradually used by the practitioners and researchers worldwide. The last two decades have seen a marked change in HRM particularly in those activities, which involve acquiring, developing, motivating and utilizing human resources actively in the business.
The major purpose of HRM is to increase and improve the productive contribution of personnel to the
organization in more ethical, social, and administratively responsible way. This purpose emerged from commonly called industrial relations, personnel administration, industrial psychology and personal management. HRM is not just another personnel management fad. Research shows that its aim is to create a whole organizational culture that binds workers to the company’s objectives with full professional commitment, integration, and quality work.
The 21st century will bring with it enormous opportunities but also enormous pressure, if the companies will
not improve the productivity of the people and treat them “human being’ which are the vital objects of all the economic activities leading towards industrial development. Now there is worldwide consensus on human resource being one of the major means of increasing efficiency, productivity and prosperity of the firm.
The present scenario of HRM did not suddenly appear. A review of this evolution shows how the effort of early pioneer led today’s more sophisticated and more proactive method of utilization 6Ms i.e. man, money, material, machine, method and market.
Indeed, the human resources planning have been a function of management since the origin of modern organization (Khan & Khan, 2012). The major four stages of growth and evolution of the HRM function are: REACTIVE FUNCTION: Here the main purpose is seen as maintaining harmony and avoiding disruption through strikes etc., and exists generally where organizations are operating in near monopoly situations with assured growth - the interactions between Human Resource and operating managers being assured under normal situations at this stage of reactive Human Resource Management (HRM).