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Human Resource Management in India

This document discusses the history and development of human resource management practices in India. It notes that India has a long history of managerial ideas dating back thousands of years, incorporating influences from sources like ancient Indian texts as well as later British rule. The caste system traditionally influenced organizational structures and HR policies. However, globalization and liberalization of markets have transformed attitudes towards HR. The document examines the interaction between traditional cultural values and modern corporate priorities, noting tensions but also emerging emphasis on knowledge workers. It analyzes how Indian managerial approaches navigate between individualism and collectivism based on contextual factors.

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0% found this document useful (0 votes)
260 views15 pages

Human Resource Management in India

This document discusses the history and development of human resource management practices in India. It notes that India has a long history of managerial ideas dating back thousands of years, incorporating influences from sources like ancient Indian texts as well as later British rule. The caste system traditionally influenced organizational structures and HR policies. However, globalization and liberalization of markets have transformed attitudes towards HR. The document examines the interaction between traditional cultural values and modern corporate priorities, noting tensions but also emerging emphasis on knowledge workers. It analyzes how Indian managerial approaches navigate between individualism and collectivism based on contextual factors.

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Human Resource Management in India:

‘Where From’ and ‘Where To?’


Chatterjee, S. R. (2007). Human Resource Management in India: ‘Where
From’ and ‘Where To?’, Research and Practice in Human Resource
Management, 15(2), 92-103.

Abstract
India is being widely recognised as one of the most exciting emerging economics
in the world. Besides becoming a global hub of outsourcing, Indian firms are
spreading their wings globally through mergers and acquisitions. During the first
four months of 1997, Indian companies have bought 34 foreign companies for
about U.S. $11 billion dollars. This impressive development has been due to a
growth in inputs (capital and labour) as well as factor productivity. By the year
2020, India is expected to add about 250 million to its labour pool at the rate of
about 18 million a year, which is more than the entire labour force of Germany.
This so called ‘demographic dividend’ has drawn a new interest in the Human
Resource concepts and practices in India. This paper traces notable evidence of
economic organisations and managerial ideas from ancient Indian sources with
enduring traditions and considers them in the context of contemporary
challenges.

Introduction
Over many centuries India has absorbed managerial ideas and practices from
around the world. Early records of trade, from 4500 B.C. to 300 B.C., not only
indicate international economic and political links, but also the ideas of social and
public administration. The world’s first management book, titled ‘Arlhãshastra’,
written three millennium before Christ, codified many aspects of human resource
practices in Ancient India. This treatise presented notions of the financial
administration of the state, guiding principles for trade and commerce, as well as
the management of people. These ideas were to be embedded in organisational
thinking for centuries (Rangarajan 1992, Sihag 2004). Increasing trade, that
included engagement with the Romans, led to widespread and systematic
governance methods by 250 A.D. During the next 300 years, the first Indian
empire, the Gupta Dynasty, encouraged the establishment of rules and regulations
for managerial systems, and later from about 1000 A.D. Islam influenced many
areas of trade and commerce. A further powerful effect on the managerial history
of India was to be provided by the British system of corporate organisation for 200
years. Clearly, the socio cultural roots of Indian heritage are diverse and have been
drawn from multiple sources including ideas brought from other parts of the old
world. Interestingly, these ideas were essentially secular even when they
originated from religious bases.
In the contemporary context, the Indian management mindscape continues to be
influenced by the residual traces of ancient wisdom as it faces the complexities of
global realities. One stream of holistic wisdom, identified as the Vedantic
philosophy, pervades managerial behaviour at all levels of work organisations.
This philosophical tradition has its roots in sacred texts from 2000 B.C. and it
holds that human nature has a capacity for self transformation and attaining
spiritual high ground while facing realities of day to day challenges (Lannoy 1971).
Such cultural based tradition and heritage can have a substantial impact on
current managerial mindsets in terms of family bonding and mutuality of
obligations. The caste system, which was recorded in the writings of the Greek
Ambassador Megasthenes in the third century B.C., is another significant feature
of Indian social heritage that for centuries had impacted organisational
architecture and managerial practices, and has now become the focus of critical
attention in the social, political and legal agenda of the nation.
One of the most significant areas of values and cultural practices has been the
caste system. Traditionally, the caste system maintained social or organisational
balance. Brahmins (priests and teachers) were at the apex, Kshatriya (rulers and
warriors), Vaishya (merchants and managers) and Shwdra (artisans and workers)
occupied the lower levels. Those outside the caste hierarchy were called
‘untouchables’. Even decades ago, a typical public enterprise department could be
dominated by people belonging to a particular caste. Feelings associated with caste
affairs influenced managers in areas like recruitment, promotion and work
allocation (Venkatranam & Chandra 1996). Indian institutions codified a list of
lower castes and tribal communities called ‘scheduled castes and scheduled tribes’.
A strict quota system called, ‘reservation’ in achieving affirmative equity of castes,
has been the eye of political storm in India in recent years. The central government
has decreed 15 per cent of recruitment is to be reserved for scheduled castes, and a
further seven and half per cent for scheduled tribes. In addition, a further 27 per
cent has been decreed for other backward castes. However, the liberalisation of
markets and global linkages have created transformation of attitudes towards
human resource (HR) policies and practices (Khalilzadeh-Shirazi & Zagha 1994,
Gopalan & Rivera 1997). Faced with the challenge of responding to the rationale of
Western ideas of organisation in the changing social and economic scenario of
Indian organisation, practitioners are increasingly taking a broader and reflective
perspective of human resource management (HRM) in India.
This manuscript has three main parts. In the first part is provided an overview of
important historical events and activity that has influenced contemporary
managerial tenets, the second part of the manuscript describes the emerging
contemporary Indian HRM practices and indicates some interesting challenges.
Much of the second part is also summarised on four informative Figures. The
concluding section, the third part of the manuscript, succinctly integrates the two
preceding parts.

Value of Context of HRM in India


The managerial ideologies in Indian dates back at least four centuries.
Arthãshastra written by the celebrated Indian scholar-practitioner Chanakya had
three key areas of exploration, 1) public policy, 2) administration and utilisation of
people, and 3) taxation and accounting principles (Chatterjee 2006). Parallel to
such pragmatic formulations, a deep rooted value system, drawn from the early
Aryan thinking, called vedanta, deeply influenced the societal and institutional
values in India. Overall, Indian collective culture had an interesting individualistic
core while the civilisational values of duty to family, group and society was always
very important while vedantic ideas nurtured an inner private sphere of
individualism.
There has been considerable interest in the notion that managerial values are a
function of the behaviours of managers. England, Dhingra and Agarwal (1974)
were early scholars who contended that managerial values were critical forces that
shape organisational architecture. The relevance of managerial values in shaping
modern organisational life is reflected in scholarly literature linking them to
corporate culture (Deal & Kennedy 1982), organisational commitment and job
satisfaction (O’Reilly, Chatham & Caldwell 1991), as well as institutional
governance (Mowday, Porter & Steers 1982). Thus, understanding the source of
these values and in particular societal work values (which link the macro-micro
relationships and in turn organisational practices) had become a popular line of
enquiry, and a great deal of evidence has been presented to support the
importance of national culture in shaping managerial values. One of the most
widely read formulations of this literature is the seminal work of Hofstede (1980)
who popularised the notion of clustering culture in generic dimensions such as
power distribution, structuring, social orientation, and time horizons. In turn,
these dimensions could be employed to explain relevant work attitudes, job
incumbent behaviours and the working arrangements within organisational
structures. Two of these dimensions were individualism and collectivism.
The traditional social ethos from the ancient roots, which was developed over
centuries, underwent profound transformation during the British rule.
Consequently, in the contemporary context multiple layers of values (core
traditional values, individual managerial values, and situational values) have
emerged (Chatterjee & Pearson 2000). Though the societal values largely remain
very much anchored in the ancient traditions they are increasingly reflecting
corporate priorities and values of global linkages. But in the arena of globalisation
where priorities of consumerism, technological education, mass media, foreign
investment and trade union culture predominate, newer tensions are becoming
evident. For instance, contemporary Indian multi national companies and global
firms in India have started shifting their emphasis to human resources with their
knowledge and experience as the central area of attention in extending new
performance boundaries (Khandekar & Sharma 2005). Considerable research
evidence attests to this trend with particular relevance to greenfield organisations
with little or no historical baggages in their organisational culture (Settt 2004, Roy
2006).
Within Indian traditions the choice of individualistic or collectivistic behaviour
depends on a number of culturally defined variables. The dynamics of these
variables are underpinned through three key elements guiding Indian managerial
mindscapes. These three constructs are Desh (the location), Kaal (the timing), and
Patra (the specific personalities involved). Sinha and Kunungo (1997) claim that
the interaction of these three variables determines the guidelines for decisional
cues. This managing or nurturing of the outer layer of collectivism in an inner
private sphere of individualism is expressed in Figure 1 which demonstrates the
behavioural anchors in Indian organisational life.
Figure 1
Behavioral Anchors in Indian Organisational Life
DECISIONAL Desh Kaal Patra
CUES (place) (Timing) (Actors)
SPIRITUAL Sattava guna Tamas guna Rajas guna
ORIENTATION (Virtue focus) (Negative focus) (Action focus)
INTERPERSONAL Sradha Sneha Bandhan
RELATIONS (Upward respect / Loyalty) (Downward affection) (Bonding)

Figure 1 also presents another powerful insight of the Indian tradition of the
notion of ‘Guna’ dynamics. According to Sharma (1996), this culture based
framework, which has three types of gunas (attraction), is being increasingly used
in employee assessment and organisational team building strategies. The
contention is that each guna is a separate contribution to the core of human
personalities. The Sattava (or truth orientation) is the sentiment of exalted values
in people, organisations or society. Alternatively, the Tamasik guna depicts a
negative orientation which can be expressed behaviourally as ignorance, greed or
corruption. Those individuals with a Rajasik guna are inherently driven by a desire
to make a worthwhile contribution to their surroundings. Collectively, these
spiritual orientations, which manifest as Sattava, Tamas or Rajas gunas, articulate
as positive or negative HRM functions such as leadership, motivation or other
institutional behavioural activity. The third row of Figure 1 highlights the linking
of HRM trends to socio cultural roots. The culture of Sradha (upward loyalty) and
Sneha (mentoring with affection) outline the behavioural anchors derived from the
civilisational roots. The acceptance of ‘Sradha’ by youngers and the display of
‘Sneha’ by the seniors have been the root of sustainability of all types of Indian
oragnisations. This has a striking similarity to the concepts of ‘oyabun’ and ‘kobun’
in the Japanese cultural context.

Contemporary India
In a recent survey of Indian CEO’s, it was suggested that Indian managerial
leaders were less dependent on their personal charisma, but they emphasised
logical and step by step implementation processes. Indian leaders focused on
empowerment and accountability in cases of critical turnaround challenges,
innovative challenges, innovative technology, product planning and marketing or
when other similar challenges were encountered (Spencer, Rajah, Narayan,
Mohan & Latiri 2007). These social scientists contend.
Leaders in other countries often tell about why they chose a peculiar person for a
certain role per task, detailing the personal characteristics that made that person
right for that situation. They may also consider, in detail, how an assignment
would help someone grow and develop their abilities. In general, Indian leaders
simply did not discuss how they matched particular people to certain roles or
tasks, nor did they usually consider in detail how the personal characteristics of
individuals might shape or inform the best way to influence that person. (Spencer,
et al 2007:90).

Indian HRM in Transition


One of the noteworthy features of the Indian workplace is demographic
uniqueness. It is estimated that both China and India will have a population of
1.45 billion people by 2030, however, India will have a larger workforce than
China. Indeed, it is likely India will have 986 million people of working age in
2030, which well probably be about 300 million more than in 2007. And by 2050,
it is expected India will have 230 million more workers than China and about 500
million more than the United States of America (U.S.). It may be noted that half of
India’s current population of 1.1 billion people are under of 25 years of age
(Chatterjee 2006). While this fact is a demographic dividend for the economy, it is
also a danger sign for the country’s ability to create new jobs at an unprecedented
rate. As has been pointed out by Meredith (2007).
When India’s young demographic bubble begins to reach working age, India will
need far more jobs than currently exist to keep living standards from declining.
India today doesn’t have enough good jobs for its existing workers, much less for
millions of new ones. If it cannot better educate its children and create jobs for
then once they reach working age, India faces a population time bomb: The nation
will grow poorer and not richer, with hundred of millions of people stuck in
poverty. (p.133).
With the retirement age being 55 to 58 years of age in most public sector
organisations, Indian workplaces are dominated by youth. Increasing the
retirement age in critical areas like universities, schools, hospitals, research
institutions and public service is a topic of considerable current debate and agenda
of political parties.
The divergent view, that each society has an unique set of national nuances, which
guide particular managerial beliefs and actions, is being challenged in Indian
society. An emerging dominant perspective is the influence of globalisation on
technological advancements, business management, education and
communication infrastructures is leading to a converging effect on managerial
mindsets and business behaviours. And when India embraced liberalisation and
economic reform in the early 1990s, dramatic changes were set in motion in terms
of corporate mindsets and HRM practices as a result of global imperatives and
accompanying changes in societal priorities. Indeed, the onset of a burgeoning
competitive service sector compelled a demographic shift in worker educational
status and heightened the demand for job relevant skills as well as regional
diversity. Expectedly, there has been a marked shift towards valuing human
resources (HR) in Indian organisations as they become increasingly strategy
driven as opposed to the culture of the status quo. Accordingly, competitive
advantage in industries like software services, pharmaceuticals, and biotechnology
(where India is seeking to assert global dominance), the significance of HRs is
being emphasised. These relativities were demonstrated in a recent study of three
global Indian companies with (235 managers) when evidence was presented that
positively linked the HRM practices with organisational performance (Khandekar
& Sharma 2005). In spite of this trend of convergence, a deep sense of locality
exists creating more robust ‘cross vergence’ in the conceptual as well as practical
domain.
Figure 2 presents the key drivers for contemporary Indian HRM trends. In
Figure 2 there are four external spheres of intervention for HRM
professionals and these spheres are integrated in a complex array within
organisational settings. The intellectual sphere, which emphasises the
mindset transaction in work organisations, has been significantly impacted
by the forces of globalisation. Indeed, Chatterjee and Pearson (2000)
argued, with supporting empirical evidence from 421 senior level Indian
managers, that many of the traditional Indian values (respect for seniority,
status and group affiliation) have been complemented by newer areas of
attention that are more usually linked to globalisation, such as work quality,
customer service and innovation. The most important work related attribute
of the study was the opportunity to learn new things at work. Such cross
verging trends need to be understood more widely as practitioners face a
new reality of human resource development of post industrial economic
organisations.

Figure 2
Drivers of Contemporary Indian HRM Trends

The other three spheres, of Figure 2, namely the emotional, the socio cultural and
the managerial domains are undergoing, similar profound changes. For instance,
the socio cultural sphere confronts the dialects of the national macro level reform
agenda as well as the challenge of innovating by addressing the hygiene and
motivational features of the work place. Consequently, this sphere, which is
underpinned by the anchors of Sradha and Sneha, has the opportunity to leverage
work setting creativity in dimensions of autonomy, empowerment, multiskilling
and various types of job design. And the emotional sphere, which focuses on
creativity and innovation to encapsulate the notions of workplace commitment
and collaboration as well as favourable teamwork, brings desirable behavioural
elements of transparency and integrity into organisational procedures and
practices. The managerial sphere provides the mechanisms for shifting mindsets,
for in Indian organisations HRM is viewed to be closely aligned with managerial
technical competency. Thus, understanding of the relativity of HRM to strategic
intended organisational performance is less well articulated in Indian firms. The
current emphasis of reconfiguring cadres (voluntary and nonvoluntary
redundancy schemes), downsizing, delayering and similar arrangements will
become less relevant as holistic perspectives gain ground. A hallmark of future
Indian workplaces is likely to be a dominant emphasis on managerial training,
structural redesign and reframing of institutional architectures to achieve
enterprise excellence. Thus, a primary role of Indian managers will be to forge new
employment and industrial relationships through purposeful HRM policies and
practices. In Figure 3 is presented a variety of HRM practices that are being
employed in Indian organisations.
Figure 3
Key HRM Practices in Indian Organisations
HRM Practice Observable Features
Percentage of employees with formally defined work roles is very high in the
Job Description
public sector.
Strong dependence on formal labour market. Direct recruitment from
institutions of higher learning is very common amongst management,
Recruitment engineering and similar professional cadres. Amongst other vehicles,
placement agencies, internet and print media are the most popular medium
for recruitment.
Strong emphasis on security and lifetime employment in public sector
Compensation including a range of facilities like, healthcare, housing and schooling for
children.
Training and Poorly institutionalised in Indian organisations. Popularity of training
Development programmes and their effect in skill and value development undeveloped.
Performance A very low coverage of employees under formal performance appraisal and
Appraisal rewards or organisational goals
Moderately variable across industries. Seniority systems still dominate the
Promotion and
public sector enterprises. Use of merit and performance limited mostly to
Reward
globally orientated industries.
Limited in scope. The seniority based escalator system in the public sector
provides stability and progression in career. Widespread use of voluntary
Career Planning
retirement scheme in public sector by high performing staff. Cross functional
career paths uncommon.
Driven by proactive court rulings, ILO guidelines and legislature provisions.
Gender Equity
Lack of strategic and inclusion vision spread.
The central government has fixed 15 per cent reservations for scheduled
Reservation
castes, 7.5 per cent for scheduled tribes and 27 per cent for backward
System
communities. States vary in their reservation systems.

IR Challenge
The Indian IR system has two main features. First, is the absence of the provision
to recognise a union as a representative or agent for collective bargaining. Second,
is the total dominance of government in regulating the industrial relations (IR)
domain. Though it is relatively easy for members of a work organisation to be
registered as a union under the law, it does not lead to the legal recognition by the
employer in dispute resolution or bargaining process. This contention was made
by Kuruvilla (1996) over a decade ago.
In terms of collective bargaining, industry wide bargaining occurs in certain
industries where the employers are organized, but bargaining otherwise is
decentralised to enterprise level. Although there are no restrictions on the subjects
of bargaining, the Industrial Disputes Act of 1947 restricts the ability of employers
to lay off or retrench employees or to close business. (p.635).
Indian industrial relations have evolved from political roots and labour market
demands. An unique feature of Indian IR has been the dominance of political
parties sponsoring unions. Union membership has been the most popular
breeding ground for politicians, and political leaders have enjoyed the use of union
platforms. Such politicisation has generated conflicts and rivalry creating mayhem
and the hurting of labour interest. Nevertheless, in spite of wage determination by
central government boards, and ad hoc industrial awards, enterprise level
bargaining has yielded positive outcomes. Interestingly, during the 1970s in a
period of the highest number of strikes, the registered number of unions grew
fivefold. But a decade later profound economic and political reform movement saw
a new direction in the trade union movement. A section of scholarly trade union
leaders began to incorporate new global thinking in the union outlook.
Since the 1980s, the Indian industrial relations culture has been considerably
impacted by the intensification of globalised markets. During this time and
beyond, there has been a clear departure from traditional personnel management.
The shift has not only been in the general tone, but in the substantive visions.
Adjustment to the global imperatives of an emerging service sector, sunrise
industries, and demographic shifts in competencies has given rise to new thinking.
In spite of most of the Indian labour laws being entrenched in a world view that is
very different to the current realities, and the obvious urgency for them to be
updated to incorporate more flexible, competitive work systems, the built in
rigidities are still proving a formidable obstacle.
The most alarming issue in the HR and IR context is the lack of job opportunities
outside urban areas where more than 70 per cent of the population lives. As has
been pointed out by Meredith (2007).
While Indian university graduates line up for jobs that can propel them into newly
vibrant middle class, per India’s rural and urban poor, change has been
interminably delayed. Expectations, like incomes, are rising across India, and not
just for those working in call centres. Even as the New India cohort thrives, much
of the rest of India is making much slower gains or even being left behind, creating
social and political tensions that cloud India’s impressive strides forward. The
lowest paid workers in the off shoring industry those working in the call centres
earn median wages of $275 a month. But most Indians still earn less than $60 a
month or just $2 a day. (p.125).

Technical Services Recruitment and Retention


There has been a dramatic shift in the expectations of employees in the organised
and globally linked sectors of the economy. An unprecedented rise in the
disposable income coupled with a declining dependency ratio, has led to young
professionals becoming extremely mobile. The problem is critically evident in the
off shoring industry where the average retention period of an employee is
considered to be around six to eight months. And the retention of senior level
executives is an additional challenge. The attrition rates are highest in information
technology (IT) (30-35%), business process outsourcing (BPO) (35-40%),
insurance (35-40%), retail and fast moving consumer goods (FMCG) (20-30%),
and manufacturing and engineering (10-15%) (Chatterjee 2006).
Over the past decade, there has been a sea change in the area of Indian technical
services and the associated HRM practices of recruitment and retention. While the
higher education system in the country has remained overwhelming poor in
infrastructure and weak in becoming revitalised to grapple with the global
imperatives, there has been a mushrooming of private educational institutions.
The recruitment problem is further deepened by the emergence of a new culture of
‘job hopping’ amongst employers who can demonstrate their world class
competencies. This phenomenon of turnover has seen a chain reaction in entry
level salaries, and an increase in graduates has created significant social and
economic disruption to the Indian labour market. A likely scenario from this
rampant activity is that the Indian HR scene will be negatively impacted in the
next decade unless the deregulation and autonomy of the higher education sectors
is initiated somewhat immediately. An example of this widening gap between the
university system and market need has become a serious impediment in several
new industries in India. For an example, it has been reported in the popular press
(Time 2007), “…out of 13 million people who applied to work at IT company
Infosys last year, just 2% were qualified indicating a sign of stress in the university
system that graduates 2.5 million a year.” (p.33).
One of the most concerning issues for HR managers in India is the high staff
turnover. In industries like call centres, staff attrition is the single biggest issue.
The industry has grown from zero employment to an employer of quarter of a
million young English speaking, well educated and ambitious people. The point is
well made by Slater (2007), who wrote.
Attrition is highest in traditional customer service jobs, where young people find
themselves having to spend all night on the phone, often with irate callers. In
other areas such as claims processing or accounting, the turnover rate is much
lower. More worrying for many companies is the ‘merry go round’ in supervising
and management jobs, as new centers are only too willing to pay higher salaries to
hijack experienced staff. (p.34).
The issue of retention is much more critical in the high value adding BPO sector
such as R&D activities. This $40 billion industry has one of the highest attrition
rates of around 20 to 25 per cent. The service laden BPO and Hord industry have
the highest attrition rates. Many companies are developing innovative incentive
packages in countering this job hopping phenomenon. Figure 4 illustrates some of
these initiatives by leading companies in India.
Figure 4
Examples of Retention Strategies for young Professionals in India’s BPO and
Services Sectors
Name of the
Retention Strategy Impact
Company

• A choice of working in
over 170 offices across
40 countries in a
• Significant
Tata variety of areas.
Consulting impact on
Services(TCS) • Paternity leave for job hopping
adoption of a girl child achieved

• Discounts on group
parties

• Identification of • Have been


potential talented staff able to

ICICI Bank achieve


• Alternative stock
higher
options
retention
• Quicker promotion rate

• ‘Wings Within’
programme where
• Has led to a
existing employees get
WIPRO higher
a chance to quit their
retention
current job role and
rate
join a different firm
within WIPRO

INFOSYS
• Fostering a sense of • Moderate
belongingness, creative Retentions
artistic and social rate increase
Figure 4
Examples of Retention Strategies for young Professionals in India’s BPO and
Services Sectors
Name of the
Retention Strategy Impact
Company

activities for the


employees and their
families.

• Initiating one of the achieved

best ‘corporate
universities’ in the
world

• Excellent sporting and


wellness facilities

• Employees allowed to
choose flexible working
• Struggling
Microsoft- schedule
India to minimise
• Moving people across job hopping
functions and sections
in assisting employees
find their area of
interest

• Culture change
valuing innovation and
talent over age and
experience
• Stabilised
Mahindra & Co • Institutionalising a
job hopping
practice called ‘reverse
significantly
mentoring’ where
young people are given
opportunities of
mentoring their seniors

A dramatic shift in recruitment practices has been taking place as globally pretend
Indian companies as well as global technical services rivals have made India a
battlefield of recruitment for the best workers. For example, IBM’s workforce in
India has more than doubled in two years to a cadre of 53,000. This outcome has
come with the elimination of 20,000 jobs in high cost markets like the U.S.,
Europe and Japan. The R&D centre of IBM is staffed by 3,000 world class
engineers and is being recognised for its ability to innovate on all areas from
simple processes, softwares, semiconductors as well as supercomputers. It is
interesting to note that IBM has dominated the recruitment market in technical
services in India during 2006. This leading company recruited 10,000 employees
out of a total of 25,000 people who were recruited to the technical services
industry. The prominence of IBM as an employer of technically qualified
personnel has been acknowledged in the popular press (Business Week 2007).
In Pune, a rapidly developing IT centre near Mumbai, the company has been
dispatching vans with signs saying, ‘IBM is hiring’, to the gates of the rivals at
lunch time. Their hit rate is pretty good laments a manager at a tech firm that has
lost employees to IBM.

Conclusion
The World Competitiveness Report rated India’s human resource capabilities as
being comparatively weaker than most Asian nations. The recognition of world
class human resource capability as being pivotal to global success has changed
Indian HRM cultures in recent years. While the historical and traditional roots
remain deeply embedded in the subjective world of managers, emphasis on
objective global concepts and practices are becoming more common. Three very
different perspectives in HRM are evident. Firstly, Indian firms with a global
outlook; secondly, global firms seeking to adapt to the Indian context; and thirdly,
the HRM practice in public sectors undertakings (PSV’S). As the Indian economy
becomes more globally linked, all three perspectives will move increasingly
towards a cross verging strengthening. Interestingly, within the national context,
India itself is not a homogenous entity. Regional variations in terms of industry
size, provincial business culture, and political issues play very relevant roles. The
nature of hierarchy, status, authority, responsibility and similar other concepts
vary widely across the nations synerging system maintenance. Indeed,
organisational performance and personal success are critical in the new era.

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