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HRM IN INDIA. Unit 2. introduction. The Indian story for organisational success is one that is deeply rooted in its history and culture. There are certain key attributes of Indian workforce like Indian value system is rich in terms of joint family system and respect for elders.
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HRM IN INDIA Unit 2
introduction • The Indian story for organisational success is one that is deeply rooted in its history and culture. • There are certain key attributes of Indian workforce like Indian value system is rich in terms of joint family system and respect for elders. • Indian workforce has the attributes like hard work, dignity for work, saving for the future and shared responsibility. • The role of the country’s democratic governance frame work with its sturdy term of five year plan have enabled policy makers and the financial institution to set the stages for India’s success. • The far slightness of the government in the area of education, control over population, assistance from developed countries helped India to grow and indentified as among the leading emerging economic in the world.
Hrm in india • The Indian corporate is emerging as a base for committed, intelligent, highly skilled and knowledgeable workforce. • This has been achieved by the help of a strong foundation provided by the indian education system at the primary, secondary, technical and professional level. Like IIT, IIM, NIT, NID etc.
Following are the some differentiators that impact HRM practices in Indian organizations: The Indian culture is deeply rooted in its societal and collectivistic values so it is easy to collaborate at the work place, work in teams and groups. The diversity in Indian society w.r.t. diverse religions and states. The tolerance for ambiguity and uncertainty is low in Indian which requires a lot more detailing of jobs and roles and responsibilities. The natural ability to work hard and for long hours and need to earn money. Availability of large educated group of individuals with different caliber of knowledge and skill.
Compensation and benefits cost continue to provide a competitive advantage for indian making it a preferred business location the world over. • That is a lot more scope for socializing in Indian organization as there is a significant amount of customization of work place in India. • Tire 2 and tire 3 cities and towns where the cost of living and wage levels are not competitive so corporate are expanding there for hiring and building talent.
HUMAN RELATIONS MOVEMENT • Evolution of HRM • Kautilya’s period: Kautilya was a famous economist who provided systamatic treatment of management in his book “Arthashastra”. • There was a logical principal and procedures in respect of labour organization such as “Shreni” or “Guild System”. • Their wages were paid strictly in terms of quantity and quality of work, punishments were imposed for unnecessary delaying of the work. • He also provided discussion on job descriptions, qualifications for job, methods of selection, incentive methods etc.
Varnashram (Caste system): • Principal of division of labour which is today also inseparable part of Indian cultural system. • Brahmin • Kshtriya • Vaishya • Shudars • Mughal rule (Medieval): • InMughal era, following were the changes in India. • Several ‘Karkhanas’ were estabilished at Agra, Delhi, Lahore, Ahmedabad etc. • The majority of the artists and crafts men had very poor conditions of existence, they were like slaves. • The productivity of the workers was very low, wages were also very low.
British Period: • Than came the Britishers. They were very cruel, they set up many tea plantation but nothing significantly changed during the british rule. Workers were entirely helpless in the face of organized and powerful Europeans. • Industrialisation (Factory act 1881): • There was enactment of factory act 1881. According to this act workers were allowed a weekly off day, limiting their hours of work, different for even men and women, and minimum age of children for employment was 7 years.
Post Independence period: • There was industrial disputes act 1947, under which welfare officers were made responsible for handling the disputes. • Under factories act 1948, employers had to employ a welfare officer in a factory employing 500 or more workers. They were responsible for the conditions of services including wages, leaves, retirement benefits and bonus etc. • HRM during 1990s : • During 1990 a new HRM has emerged, especially as result of globalization and liberalization with explosion of the information and communication technology, increased global competition, fast changing market condition etc. organization have to re design their strategies and outlook to HRM.
CULTURAL DIMENSIONS OF THE INDIAN WORKFORCE • Power distance: Power distance is a the extent to which less powerful members of organization that power is distributed unequally. Countries in which people blindly obey the orders of superiors have high power distance. beliefs of power distance culture: • Inequality is good, Everyone has a place, some are high some are low. • Most people should be dependent on a leader. • The powerful are entitled to privileges. • The powerful should yield their power.
Characteristics: • People dislike work and try to avoid it • Managers believe in theory X. • Decision making is centralized. • They will have a large proportion of supervisory personnel • the people at the lower levels often have the low job qualifications • such structures encourage and promote inequality between people at different levels. • India scores 77 in power distance.
Uncertainty Avoidance: • Uncertainty avoidance is the extent to which people feel threatened by ambigious situations and have created beliefs that try to avoid this. • Uncertainty avoidance deals with a society’s tolerance for uncertainty and ambiguity. It indicates to what extent a culture trains its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, and different from usual. • India scores 40 indicating low uncertainty avoidance. Here the people are more willing to accept the risk associated with the unknown.
Characteristics of high uncertainty avoidance: • Conflicts should not be avoided. • Different people and ideas should be tolerated. • Laws are not very important and need not necessarily be followed. • Experts and authorities are not always correct and consensus is not important. • Low uncertainty avoidance societies like us have less structuring of activities, fewer written rules, more risk taking by managers, higher labour turnover and more ambitious employees.
Individualism and Collectivism: • individualism is the tendency of people to look after themselves and their family only. • The opposite of this is collectivism which refers to the tendency of the people to belong to group and to look after each other in exchange for loyalty. • On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. • On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.
collectivism Individualism • Decision making is individual’s responsibility. • Favoritism is unfair. • Promotion mostly on ones performance • Group decision making is best. • Promote Nepotism. i.e. favoritism based • on family relationship. • Promotion mostly on seniority and age.
Masculinity: • it’s a situation in which the dominant values in the society are success, money and other material things. • Masculine traits include assertiveness, materialism/material success, self-centeredness, power, strength, and individual achievements. • In highly masculine societies, jobs are clearly defined by gender. There are men’s jobs and women’s jobs. Men usually choose jobs that are associated with long-term careers. Women usually choose jobs that are associated with short-term employment, before marriage. India’s score - 56
SCOPE OF HR IN INDIA • The scope of human resource management in India is very great indeed. This is because there is an increasing number of jobs within the IT sector and also because the number of young people looking for work is also on the rise. Therefore the demand for young and talented people has increased dramatically. The scope of human resources, no matter which country, is very great because there is an increasing number of human resource related jobs and human resource related demands such as advanced performance appraisal, Human Resource Information System, employee involvement, corporate governance and job satisfaction.
Its only in the past 10-12 years with the immense growth on account of the IT industry that winds of change began to blow. It was largely the advent of the Information Technology era in India that brought with it thewestern management practices. MNC’s (multinational companies) started up their operations in India. • The FDI (foreign direct investment) went up steeply as the world saw the potential in the country’s human resources. India became a preferred location for MNC’s primarily from the USA, followed by other developed countries.
This gave birth to a new generation of management as well as HRM practices. New hiring methods, new ways of paying salaries, new employment terms and most importantly increased focus on individual performance and outcomes. There was emphasis on deliverables and linking individual and team performance to business results and success.
