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Discuss Human Resource Management practices in India

Latest posts by Mariam Peyton (see all)

    The Indian Market is one of the most established economies in the world. Besides that, it is now considered a global center for outsourcing. According to Chatterjee S.R, (2007)), the Indian companies brought in 34 foreign companies for U.S. $11 billion dollars in 1997. The Indian market is expected to increase its labor force to 250 million, meaning it will be an addition of 18 million more than that of the German workforce. This is the reason why India had occupied the main concern regarding Human Resource Management. This essay is going to discuss the various Human Resource Management practices in India.  The primary questions attempted are; what are the human resource management practices in India? 
    Human Resource Management is the strategic approach used in procuring, developing, and maintaining a highly skilled workforce so as to effectively attain the goals of an organization through a distinctive set of integrated employment policies, programs, and practices. According to the resource-based view, human resources contribute immensely to an organization’s sustained competitive advantage by facilitating the development of rare competencies that are only firm-specific. HRM is significant to organizations because it helps them in retaining their best employees who play a part in organizational development. Therefore organizations whose aim is to maintain their competitive advantage in the current times and in the future need manpower that is well acquainted with current skills and technologies to approach change and difficulties that might come their way.
     

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    Discuss the Human Resource Management Practices in India A Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand generally the meaning of HRM 
    • Understand the Human Resource Management practices in India
    • Apply the knowledge to real-life companies

     

    1.0 INTRODUCTION


    HRM is the process through which the manager of an organization recruits, selects, trains, and develops an effective employee team for the business. Human resource management involves employees’ features and performance in an organization or a business. It may also be defined as the strategic approach used in procuring, developing, and maintaining a highly skilled workforce to effectively attain an organization's goals through a distinctive set of integrated employment policies, programs, and practices. This essay is going to examine the nature and scope of Human Resource Management. 

    In this report, we will explore some of the key features and challenges of Human Resource Management Practices in India, one of the fastest-growing and most diverse economies in the world. India has a population of over 1.3 billion people, with more than 20 official languages and hundreds of ethnic groups. It also has a complex and dynamic business environment, with a mix of traditional and modern sectors, as well as formal and informal markets.

    Some of the main aspects of HRM practices in India are:

    Recruitment and selection:

    India has a large and young workforce, with more than 50% of its population under the age of 25. However, finding and hiring qualified and skilled talent is a major challenge for many organizations, especially in emerging sectors such as IT, e-commerce, biotechnology, etc. This process in India often involves multiple rounds of screening, interviews, tests, and background checks, which can be time-consuming and costly. Moreover, there is a high attrition rate among employees, especially in urban areas, due to the availability of multiple job opportunities and the lack of loyalty and commitment.

    Training and development:

    Training and development are essential for enhancing the skills and competencies of employees, as well as for retaining and motivating them. However, many organizations in India lack a systematic and structured approach to training and development, and often rely on ad hoc or informal methods. The quality and effectiveness of training programs also vary widely across organizations and sectors. Some of the challenges faced by organizations in this area include the lack of adequate resources, infrastructure, trainers, content, evaluation, and feedback mechanisms.

    Performance management:

    Performance management is the process of setting goals, measuring results, providing feedback, and rewarding performance. Performance management is crucial for aligning individual and organizational objectives, as well as for improving productivity and quality. However, many organizations in India face difficulties in implementing a fair and transparent performance management system, due to various factors such as the hierarchical and paternalistic culture, the influence of personal relationships and favoritism, the lack of clear and objective criteria and standards, the resistance to feedback and change, etc

    Employee relations:

    Employee relations are the interactions between employees and employers, as well as among employees themselves. Employee relations are influenced by the organizational culture, policies, practices, values, norms, beliefs, etc. Employee relations are vital for creating a positive and harmonious work environment, where employees feel valued, respected, engaged, and empowered. However, many organizations in India face challenges in maintaining healthy employee relations, due to various factors such as the diversity of employee backgrounds and perspectives, the lack of effective communication and trust, the occurrence of conflicts and grievances, the impact of external forces such as unions, politics, social movements, etc.
     

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