The growth of personnel management/ human resource management in U.S.A. and U.K was evolutionary in nature. It took place because of voluntary efforts of employers. But in India, it grew because it was made compulsory by government.

In 1931, ‘Royal Commission on labour’ recommended appointment of labour officer. So that labour problems might be solved. In 1948, Factories Act made it obligatory for certain industrial enterprises to appoint welfare officers.

The Scope of Personnel management has increases because, task of personnel manager is not only confined to recruitment of workers but also to looking after their welfare & handling their grievances. Under influence of technological development, organisation become complex and needs specialised skills & professionals. As a result, emphasis is being given to training & development aspects.

Personnel management is no longer restricted to wage earners in factories. It has become equally important in offices, sales organisation, hospitals, development institutions & in management itself.

The other term used, in personnel problem & techniques are ‘labour relations’ and ‘industrial relations’ which are used interchangeably but it is useful to distinguish them. The term ‘Labour relations’ refers to relations between management & unionised labour.

Which includes negotiations of contracts with unions day to day relations with union leads, government regulation of terms & conditions of employment. The term ‘industrial relations’ is used as synonymous with ‘ Personnel management’.

In India, the field of Personnel Management has

3 Branches – (i) Personnel Administration

(ii) Industrial Relations

(iii) Labour Welfare

1. Personnel administration- deals with administrative aspects such as recruitment, selection, placement, promotion, wages and incentives etc.

2. Industrial relations – deals with employer employee relationship, negotiations & collective bargaining etc.

3. Labour Welfare- deals with working conditions of employees by provision of facilities such as canteen, housing, recreation, education etc.