Earlier days, there were not many business players, and proportionately, jobs were scarce. During those times, employers did not focus much on employees; they simply paid according to the number of days worked. Employers were primarily concerned with salaries, which was known as personnel management.
In later stages, several Acts were implemented to safeguard employees' rights and values, leading to a more sensitive and critical approach in human resources. With the increase in the number of employers, people started receiving better job offers. Consequently, employers began to pay more attention to employees' welfare, health, safety, and development activities such as training to assess employee performance through performance management (PM) systems. All these aspects combined to make personnel management more crucial and sensitive in an organization's development, transforming it into what we now refer to as HR. The role of HR has become more sensitive, focusing on human capital management.