Human Resources (HR) is a fundamental concept and a management function that refers to the workforce of an organization and the practices used to manage them. It views people not just as employees but as valuable organizational assets, comparable to financial or material resources. The term "human resource" was first mentioned by economist John R. Commons in his 1893 book, The Distribution of Wealth. The function evolved from earlier personnel management practices, which were often limited to administrative tasks like record-keeping. The shift to HR was an attempt to resolve the failures of personnel management and industrial relations by focusing on maximizing both organizational effectiveness and individual satisfaction.
The mechanism of HR involves a range of activities, including compliance with labour law, talent acquisition (recruitment), performance management, administration of employee benefits, and ensuring employee well-being. In India, the HR function is deeply connected to the country's labour law framework, which has recently undergone a massive overhaul. The government has consolidated 29 existing labour statutes into four comprehensive Labour Codes. These new codes are the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
This reform, with some provisions becoming fully enforceable nationwide on November 21, 2025, replaced the old, complex laws with a simplified and streamlined structure. The core change is the consolidation and simplification of the legal framework, though the fundamental HR functions of managing people and ensuring compliance remain. The new codes also formally recognize concepts like gig and platform work and regulate fixed-term employment, reflecting the evolving nature of the workforce.