Though the concept and theory of personnel management originated in the West, the scene in India evolved as a result of government efforts and managerial preoccupation with the welfare concept, as well as frustration with unsystematic recruitment practises, loss-making Public Service Undertakings, growing labour unrest, and loss of production, among other things. Since the early 1930s, it has led to the creation of positions such as Labour Welfare Officer/Personnel Officer in both public and commercial organisations.
Taylor's Scientific Management laid the groundwork for the growth of this discipline with his principles of scientific selection and systematic training and development of workers, which Gantt subsequently emphasised by adding that in addition to the above, workers must be eager to cooperate. M.P Follett emphasised the same point.
The Human Relations Revolution, which brought in the method of motivation and morale, was the most significant watershed. It made the study/theory of this area multidisciplinary by combining sociology, psychology, industrial psychology, social psychology, and other disciplines.
Many events contributed to its rise in the practical sense, such as labour shortages and labour difficulties during World Wars I and II, and the Great Depression of the 1930s, which necessitated effective people management to eliminate wastage and maximise resource use for optimum profit.