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HRM in IndiaDr. Smita ChoudharyFaculty HR & OB

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Objective :

After studying this unit, you should be able to:

• Analyze the concepts of HRM in India • Describe the changing role of HR in India • Explain the impact of globalization and its

impact on Indian business

Objective :

After studying this unit, you should be able to:

• Analyze the concepts of HRM in India • Describe the changing role of HR in India • Explain the impact of globalization and its

impact on Indian business

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Managing human resource is a complex process, to understand the philosophy of human resource management demands a thorough understanding about the evolution of the concept from the ancestral to Human resource Management concept.

Introduction

In the previous unit we studied about the concepts and scope of HRM. Although ‘Human Resources’ is comparatively a recent management term we can trace the relevance of it to the Vedas. In The Bhagavad Gita, Lord Krishna not only makes Arjuna spiritually enlightened, but also teaches him the art of self-management, anger management, stress management, conflict management, transformational leadership, motivation, goal setting and many other aspects which are now essential parts of any HRM curriculum.

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HRM in India The viewpoint of HRM in India has shifted in the last two decades. The economic liberalization of 1991 has created a massive change in

the HRM perspective in India. It not only led to the creation of a very competitive market situation

but also in turn forced Indian organizations to think and implement innovative measures to attract and retaining employees.

The Indian workforce is now being globally acknowledged as a dedicated, intelligent and a well-informed workforce.

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Changing Role of Human Resource in India

The role of HR has undergone several changes in India.

human resource managers are now being considered as strategic partners to the organization.

They are involved in all the crucial business decisions made by the company.

The roles that HR in India has to take up have increased. They are the change agents, counselors, motivators, trainers and also the spokesman of the employees.

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HRM Challenges One of the challenges HR managers face is the issue of upgrading the skill set

of employees through training and development. Managing changes in technology is also one of the challenges that an HR of any

organization in India faces. Developing Accountability: With the advent of Six Sigma methodologies,

organizations have lowered their tolerance levels for mistakes, errors and delays.

Managing workforce stress and employment relations: HR is the face of an organization. It hires and fires employees and if the HR of an organization is not emphatic towards its workforce it does not help in employment relations.

Managing inter-functional conflict: The new emerging challenge for the HR is to manage inter-functional conflict within an organization.

Managing workplace diversity: To manage the diverse workforce who have fairly diverse physiological and the psychological influences, is also a huge challenge for the HR in the emerging Indian economy.

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Progressive HR PoliciesToday, most of Indian companies are committed to provide equal employment opportunities for all.Some organizations are changing their HR policies to retain their valuable employees.MNCs are providing flexible options such as working from a different city, time off from corporate life and extended maternity leave so that female employees, at various life stages, benefit from these policies.

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Entrepreneurship by Employees Indian organizations are encouraging 'entrepreneurs' or employees who have

ideas that could potentially become an asset. Over the last decade, India's vast manpower has played an instrumental role in

its economic success story. The success of Indian companies is not based on superior access to raw

materials or technology or patents, but basically upon human skills. The synergy between the strategic planning and innovative HRM practices will

be pivotal as Indian Inc. goes on a global journey.

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Globalization and its Impact on HR The tendency of firms now is to extend their

sales and/or manufacturing to new markets abroad.

The one unique element about every nation or company is its workforce.

A workforce that is knowledgeable and skilled at doing complex things keeps a company competitive and attracts foreign investment.

Technology The most important use of technology in HRM is

in an organisation’s Human Resource Information system.

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The distinguishing characteristics of companies today and tomorrow is the growing emphasis on human capital–the knowledge, education, training skills and expertise of a firm's workers. This growing emphasis on education and human capital reflects several social and economic factors. Now companies are relying more on employee’s creativity and skills.

Knowledge work and human capital

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Equal employment opportunity laws that bar discrimination on the basis of race, age, disability, religion, sex or national origin, have been passed.

Virtually all managers are thus now legally bound to uncover and correct instances of discrimination.

Mandated health benefits, occupational safety and health requirements.

Union-management relations. HR managers have to deal with all these legal constraints.

Other trends affecting HRM

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Workforce Diversity Diversity in the field of HRM can be defined as the situation that

arises when employees differ from each other in terms of age, gender, ethnicity, education, etc.

To attract and retain young brains, organizations have to institute appropriate HR policies, supported by attractive compensation offers.

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There are five reasons, why diversity has become a dominant activity in managing an organization's human resources: 1.The shift from a manufacturing to a service economy. 2.Globalization of markets. 3.New business strategies that require more team work. 4.Mergers and alliances that require different corporate cultures to work together. 5.The changing labor market.

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Summary The viewpoint to Human Resource Management in India has shifted in last two

decades. Economic liberalization in 1991 created a hyper-competitive environment.

As international firms entered the Indian market bringing with them innovative and severe competitiveness, Indian companies were forced to adopt and implement innovative changes in their HR practices.

Increasing demand for skilled performers affected the companies to shift focus on attracting and retaining high-performing employees in a competitive marketplace.

One of the challenges HR managers face is the issue of upgrading the skill set of employees through training and development,

Most of the Indian companies are committed to provide equal employment opportunities for all.

A workforce that is knowledgeable and skilled at performing complex jobs keeps a company competitive and attracts foreign investment.

Well-trained workers attract global corporations, which invest and provide employment opportunities, which in turn, generate additional training and experience.

Thank You

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