Dear Soni, It is very difficult to state the differences succinctly since there are too many reasons for the differences, and thus I could not avoid a little prolonged explanation.
Differences Between HR Functions in Educational Institutions and Industry
There is a perceptible difference between HR functions in an Educational Institution and an industry as commonly understood, such as a shop or a commercial establishment like corporate retail stores or a factory. The differences primarily stem from the following factors:
1) The core and major workforce in an Educational Institution is constituted by teachers or faculty who are well-educated and enlightened, often referred to as the learned class of employees. They are sober, modest, and well-regulated in their behavior, unlike the employees in a shop, retail store, or factory who are moderately or inadequately educated, known as blue-collar employees. Consequently, the employees in the industry tend to be a little louder in their behavior. Therefore, the HR function in an Educational Institution is softer than that in the industry. The HR in the industry thus needs different traits and strategies to deal with the employees.
2) Teachers, who constitute the core workforce of an Educational Institution, do not fall within the purview of many labor laws like the Industrial Disputes Act, the Minimum Wages Act, the Contract Labour Act, the Factories Act, the Standing Orders Act, the Payment of Wages Act, or even the Shops and Establishments Acts of the states applicable to industrial concerns. These Acts protect the rights of the workmen/employees in the industry, prescribing various compliances and procedures for the employers when taking any action affecting the rights of the employees in case of dispute or difference between them. Only a minority in an Educational Institution working as clerks and peons in administration fall within the ambit of these laws, leaving little or no chance for disputes and friction. Thus, HR in industrial undertakings shall have thorough knowledge of statutory compliances and procedures, unlike HR in an Educational Institution.
3) Due to the reasons mentioned in point no. (2) above, there will be intense union activity in the industry, unlike in an Educational Institution, consequently creating pressure on the management with demands and gearing up to fight for them in case of the employer's refusal, in the various forums set up under the respective labor laws like conciliation and adjudication before Industrial Tribunals. Thus, the HR in the industry will have exposure to the process of industrial relations like collective bargaining, conciliation proceedings and settlements, and adjudication. The HR in an Educational Institution may be missing this exposure.
4) For all the above reasons and for the reason that the fate of an industrial undertaking, being a business unit (unlike an educational institution), depends upon its productivity, which again relies on the performance of the employees and market forces, the HR in the industry needs to lay emphasis on employee welfare, motivation, and performance appraisal to stay in the market. Resultantly, the HR concepts and practices in an industry are different from those of an educational institution.
It can go on and on, but these are the basic differences that I visualize.
Regards, B. Saikumar HR & Labour Law Advisor Mumbai