Human Recourses Management in India - Essay Example

Humn Re Mngement in Indi bstrct Current pper provides discussion of humn resource issue in Indi highlighting bckground informtion on Indi, recent developments in the Indin economy nd review of Indin humn resource mngement (HRM) literture. The ltter prt of the pper presents results from lrge-scle HRM survey. Finlly, the min conclusions nd future chllenges fcing Indin HR mngers re highlighted. Precedent Precedents of HR developmentl issues in Indi Indi is democrtic republic, comprising twenty-five sttes nd seven union territories. It borders Bngldesh, Bhutn nd Burm in the est, Chin in the north nd north-est, Pkistn in the west nd north-west nd Sri Lnk in the south. It occupies strtegic loction in South si for interntionl trde. With n re of 3.3 million squre km, Indi is the second lrgest country in si nd the seventh lrgest in the world. former British colony, Indi hs emerged s the lrgest democrcy in the world since independence in 1947. Indi is the birthplce of three of the world's min religions: Hinduism (bout 7000 yers BC), Buddhism (487 BC) nd Sikhism (1699 D). Indin society comprises six min religious groups: Hindus (83.2 per cent), Muslims (11 per cent), Sikhs (2 per cent), Christins (2 per cent), Jins nd Buddhists (less thn 1 per cent). There re over three thousnd cstes. Indi hs 179 lnguges nd 544 dilects. The Constitution recognises sixteen lnguges, Hindi nd English being the two officil lnguges. Indi hs one of the lrgest English-speking popultions in the si-Pcific region. The litercy rte for those over 15 yers of ge is 51 per cent, but litercy is unevenly distributed (Budhwr, 2000). These fcts show the diverse nture of the Indin workforce. Though rich in culture nd nturl resources, Indi currently fces number of problems: politicl nd religious instbility; ever-incresing levels of popultion; unemployment nd poverty; corruption in government offices; cstism; low per cpit income; instbility of output in griculture nd relted sectors; slow privtistion of the bloted public sector; lck of dequte intellectul property protection; excessive bureucrcy; nd n incresing gp between rich nd poor. The level of corruption in politics is rpidly rising. fter independence, the government set up 'Plnning Commission' in 1950 to formulte ntionl plns. Since then (till erly 1990s) 'mixed economy' pproch (emphsising both privte nd public enterprise) hs been dopted. Economic plnning is minly crried out through the five-yer plns nd industril policies. Presently, the ninth five yer-pln nd the industril policy begun in 1991 re in progress (see Dtt nd Sundhrm, 1999). The next section further highlights the present dynmic business environment nd the chllenges it hs creted for the HR function in Indi. Economic crisis nd liberlistion of Indin economy Despite the formlities of plnning, the Indin economy reched its ndir in 1991. It witnessed double digit rte of infltion, decelerted industril production, fiscl indiscipline, very high rtio of borrowing to the GNP (both internl nd externl) nd dismlly low level of foreign exchnge reserves. Foreign reserves hd become so low tht they were brely sufficient to meet the cost of three weeks' imports (Budhwr, 2001). The Indin government ws forced to pledge gold to the Bnk of Englnd to meet the country's foreign exchnge requirements. The World Bnk nd the IMF greed to bil out Indi on the condition tht it chnged to 'free mrket economy' from regulted regime. To meet the chllenges, the government nnounced series of economic policies beginning with the devlution of the rupee, followed by new industril policy nd fiscl nd trde policies. number of reforms were undertken in the public sector, in trde nd exchnge policy, in the bnking sector, nd foreign investment ws liberlised. Liberlistion of policies hs resulted in huge increse in competition for Indin firms with foreign firms. In ddition, Indin firms re now under gret pressure to chnge from indigenous, costly nd probbly less effective technology to high, more effective nd costly technology (Venkt Rtnm, 1995). There is strong need to chnge the infrstructure, the bureucrcy t operting levels nd the existing culture (orgnistionl). Current policies imply switch from lbour-intensive to more cpitl-intensive methods of production, nd therefore new requirement for orgnistions is to remove surplus lbour nd to generte new sustinble employment. Indin orgnistions re ttempting to improve qulity nd mtch world stndrds such s ISO 9000. The im is to increse productivity, reduce costs nd over-mnning while generting employment, improving qulity, nd reducing voluntry nd involuntry bsenteeism. The brighter side of the new prdigm is tht it hs chnged the thrust of corporte mngement from 'regultion driven' to 'mrket driven' nd from 'protection' to 'competition'. It hs creted opportunities for technology upgrdtion, resource mobilistion from new sources, expnsion, diversifiction, turnround nd interntionlistion. ll the threts nd opportunities creted by the liberlistion of policies hve significnt impliction for HRM. This is becuse the im of the liberlised policies is to increse productivity, reduce costs, improve qulity, generte employment, reduce over-mnning in Indin industry (downsizing) nd crete significnt drop in the incidence of industril sickness (Krishn nd Monpp, 1994). ll these ims re closely connected with HR issues. To Indin HRM cdemics, the implictions of liberlistion re nticipted to be wide-rnging. Those Indin orgnistions tht hve upgrded technology now compete ginst multintionl enterprises (MNEs) nd re considering the need to develop highly diverse workforce into well-trined, motivted nd efficient employees. Orgnistions re lso hving to cope with the subsequent de-skilling, re-skilling nd multi-skilling problems, workforce reduction policies, retention nd creer development issues (Venkt Rtnm, Verm, 1998). The fster Indin orgnistions cn modernise nd mechnise plnts, introduce new technology, revmp plnt lyout for esier nd efficient mteril hndling nd eliminte wste, the more successful they will be. The espoused solution to this problem is to use the HR function to develop constnt wreness of missions, ensure continuous pprisl of internl strengths, enhnce innovtion, improve compenstion schemes, introduce more informl communiction nd develop better employee reltions (Sprrow nd Budhwr, 1997). This will require considerble chnge in the ttitudes, working systems, strtegy nd humn resource skills of Indin orgnistions. It is lso rgued tht n expnsion of the role into res of strtegy development, informtion system design, culturl development nd technicl expertise will necessitte decentrlistion of the HRM role, long the lines seen in the West (see Budhwr nd Sprrow, 1997). Since these reforms, the economy hs responded positively nd Indi is now considered one of the lrgest emerging ntions, hving bypssed the sin economic crisis of 1997-98. The World Bnk forecsts tht, by 2020, Indi could become the world's fourth lrgest economy. In the lst few yers, stte control nd ownership in the economy hve been reduced, bold steps hve been tken to correct the fiscl imblnce, to bring bout structurl djustments nd to ttrct foreign direct investment. Substntil reforms hve been mde in the telecommunictions, finncil nd shipping sectors, s well s in direct tx nd industril policy. However, Indi still hs long wy to go before it cn compete fully with some of the more economiclly dvnced sin ntions (Budhwr 2000). Humn resource development (HRD) is seen s the key to success in such circumstnces. HRM function in Indi Formlised personnel functions hve been common in Indin orgnistions for decdes. The origins of the personnel function cn be trced bck to the 1920s with the concern for lbour welfre in fctories. The Trde Union ct of 1926 gve forml recognition to workers' unions. Similrly, the recommendtions of the Royl Commission on Lbour gve rise to the ppointment of lbour officers in 1932 nd the Fctories ct of 1948 lid down the duties nd qulifictions of lbour welfre officers. These developments ll formed the foundtions for the personnel function in Indi (Budhwr nd Khtri, 2001). In the erly 1950s two professionl bodies were set up: the Indin Institute of Personnel Mngement (IIPM) formed in Clcutt nd the Ntionl Institute of Lbour Mngement (NILM) in Bomby. During the 1960s, the personnel function begn to expnd beyond its welfre origins with the three res of lbour welfre, industril reltions nd personnel dministrtion developing s the constituent roles for the emerging profession. In the 1970s the thrust of the personnel function shifted towrds the need for greter orgnistionl 'efficiency' nd by the 1980s personnel professionls begn to tlk bout new concepts such s HRM nd HRD. The two professionl bodies of IIPM nd NILM were merged in 1980 to form the Ntionl Institute of Personnel Mngement (NIPM) in Bomby. The sttus of the personnel function in Indi hs therefore chnged over the yers. However, presently it is chnging t much more rpid pce thn ever, minly due to the pressures creted by the liberlistion of economic policies. s result of such pressures, there is strong emphsis on HRD in Indin orgnistions. In fct, HRD is the term more often used to denote personnel function thn HRM in Indi (Budhwr, 2000). lthough the recent reforms hve creted tremendous pressures on the trditionl Indin personnel/mngement system, it is too erly to judge whether there is ny noticeble chnge in the wy orgnistions re mnged in Indi. Since the trditionl Indin mngement system developed over very long time, understndbly it will tke some time to chnge. However, some erly symptoms of chnge re ppering. HRM is plying noticeble role in bringing bout chnges in Indin orgnistions. More nd more Indin orgnistions re creting seprte HRM/HRD deprtment. There hs been significnt increse in the level of trining nd development of employees. Constitutionl pressures re forcing orgnistions to employ people from bckwrd nd reserved ctegories (Venkt Rtnm nd Chndr, 1996). There re lso indictions of movement towrds performnce-relted py nd promotions. However, these re more evident in the privte sector. Similrly, in comprison to the public sector, the internl work culture of privte enterprises now plces greter emphsis on internl locus of control, future orienttion in plnning, prticiption in decision-mking, effective motivtion techniques nd obligtion towrds others in the work context. There is lso n ttempt to select new recruits on the bsis of merit in the privte sectors (t lest t the lower nd middle levels). The bove discussion presents brod over-view of the HRM function in Indi. However, to develop n in-depth understnding it is importnt to exmine the min fctors which form the very bses of HRM in Indi. Bsed on the frmework introduced in Chpter 1, results from lrge-scle study re presented here. These results re bsed on questionnire survey run in firms hving 200 or more employees in six industries in the mnufcturing sector (food processing, plstics, steel, textiles, phrmceuticls nd footwer), crried out between Jnury nd pril 1995. The respondents were the top personnel specilist (one ech) from ech firm. The response rte ws round 30 per cent (137 out of 450 questionnires). The min thrust of the study ws to nlyse the thinking of personnel specilists on the influence of ntionl fctors on their HR function (see Budhwr nd Sprrow, 1998). To exmine the influence of ntionl fctors on HRM policies nd prctices, the respondents were sked to llocte mximum of 100 points to different spects of the following: ntionl culture, institutions, dynmic business environment nd business sector. Since the impct of the ntionl fctors on cross-ntionl HRM is under-reserched, to gin more insight into the mtter n open-ended question fter ech ntionl fctor question ws sked. To present picture of the scene, the men scores of the respondents' perceptions on the influence of the four ntionl fctors on HRM policies nd prctices were computed. The open-ended questions were content-nlysed nd percentges were computed to summrise the results. To complement the survey results, support from relevnt literture is lso provided. Influence of ntionl culture on Indin HRM The results in Tble 1 show tht on verge Indin mngers give high priority to the importnce of culturl ssumptions tht shpe the wy employees perceive nd think bout the orgnistion (24.4), s well s common Indin vlues, norms of behviour nd customs (22.9) nd the wy in which mngers re socilised in Indi (21.7). Content nlysis of the open-ended question shows tht 54 per cent of the Indin mngers believe tht socil reltions ply n importnt role in mnging humn resources. Indin mngers note tht common Indin vlues, norms of behviour nd customs hve n importnt influence on their HRM policies nd prctices (48 per cent). Mngers' ctions re dictted by these vlues nd norms of behviour. Some 42 per cent of the Indin mngers feel tht pressure groups (such s unions) ct s sviours of employees belonging to the reserved ctegories, dictte the terms nd conditions of certin greements nd most of the time re felt to cuse trouble for mngement. To gret extent, the present HRM system is product of mixture of socil, economic, religious nd politicl fctors which hve now previled in Indi for long time. Indins re socilised in n environment tht vlues strong fmily ties nd extended fmily reltionships. They re more likely to develop stronger Tble 1 Influence of different spects of ntionl culture on Indin HRM spects of ntionl culture No. of cses Men 1 Wy in which mngers re socilised 130 21.72 2 Common vlues, norms of behviour nd customs 130 22.94 3 The influence of pressure groups 118 15.92 4 ssumptions tht shpe the wy mngers perceive nd think bout the orgnistion 135 24.44 5 The mtch to the orgnistion's culture nd 'the wy we do things round here' 126 20.85 ffilitive tendencies or greter dependence on others (see Budhwr et l., 2000). Thus, in the work context, interpersonl reltions re more relevnt for them nd s result, their job-relted decisions might be influenced more by interpersonl considertions thn by tsk demnds (Knungo nd Mendonc, 1994). Further, fctors such s the long British rule, strong cste system, religion nd n grrin-bsed society, the extended fmily system, high rte of illitercy nd poverty nd wek nd unimportnt ties between stte nd individul hve creted mngement system which is bsed on socil nd fmily reltionships (Budhwr, 1999). Severl reserchers hve compred Indin mngement prctices with those of other regions such s the US, the UK nd Jpn. For exmple, in culturl terms compred to n English person, n Indin person is more ferful of people in power, obedient to superiors, dependent on others, ftlistic, submissive, undisciplined, friendly, modest, unreserved, collectivist, cste-conscious nd clnorientted nd lw-biding. On the other hnd, compred to English people, he is less self-controlled, tencious nd less willing to tke ccount of other people's views. Similrly, Shrm (1984) in his study contrsted the high efficiency nd chievement-oriented US mngement style with more ftlistic style in Indi. Given their dily exposure to scrcity in the economy nd n indifferent society in the fce of poverty, Indin mngers re more inclined to believe events re predetermined by 'hidden hnd' tht shpes their destiny. They lso demonstrte tough resilience in the fce of hzrds, reinforced by n infinite cpcity to ber sufferings. Hofstede (1991) found tht Indi hs low to moderte uncertinty voidnce culture. However, in contrst, some nlysis by Indin cdemics chrcterises the mngement style s one tht demonstrtes n unwillingness to ccept orgnistionl chnge or tke risks, reluctnce to mke importnt decisions in work-relted mtters or lck of inititive in problem solving, disinclintion to ccept responsibility for job-relted tsks nd n indifference to job feedbck. Hierrchy nd inequlity re deeply rooted in Indi's trdition nd re lso found in prctice in the form of uneqully plced cste nd clss groups. Indin orgnistionl structures nd socil reltions re therefore hierrchicl nd people re sttus conscious. They find it comfortble to work in superior-subordinte reltionship which is personlised. Indi's positioning in Hofstede's (1991) reserch s high power distnce culture then reflects the hierrchicl nture of Hinduism (evidenced by the cste system), the erly socilistion process tht highlights the importnce of the fmily structure nd remnnts of British colonil influence. ge lso mtters gretly in Indi, nd seniority cn be expected to ply significnt role in decisions bout promotion nd py. prt from these, one's cste, religion nd socil contcts lso mtter significntly. Inter-group reltionships re chrcterised by suspicion of other groups, serch for smll group identity nd strong inclintion to ffilite with people in power. Such inequlities hve persisted nd remined in equilibrium becuse of orgnic links between them nd ingrined inter-dependence of the different socio-economic groups. Indi is lso low msculinity culture in Hofstede's terms. This is reflected in pternlistic mngement style nd preference for personlised reltionships rther thn more divorced performnce orienttion. This genertes 'tendermindedness' nd 'soft work culture' tht is ssocited with reluctnce to tke bold decisions nd see them through to the end. Success is judged on 'morl considertion of the text' nd strict observnce of ritul, not on ctul behviour, bsolute principles or rules. Indin work culture dicttes distinctive style of trnsformtionl ledership, which hs been clled the 'nurturnt-tsk ledership' style (Sinh nd Sinh, 1990). This drws upon the use of fmilil nd culturl vlues (such s ffection, dependence nd need for personlised reltionships) to temper the firm nd structured tsk direction expected in situtions of high power distnce. In such conditions the motivtionl tools hve to hve socil, inter-personl nd even spiritul orienttion. Low individulism (s per Hofstede's results for Indi) implies tht fmily nd group ttinments tke precedence over work outcomes. The primry purpose of work is not to express or fulfil one's self, but s mens to fulfil one's fmily nd socil obligtions. Indeed, fmily nd socil networking is n importnt method of obtining work, securing promotion nd dvncing py. self-reinforcing circle exists, whereby culture dicttes tht politicl connections nd scribed sttus, not chievement sttus, underpin selection, promotion nd trnsfer systems, such tht loylty of ppointees is more towrds the ppointing uthorities thn the gols of the orgnistion, nd job-relted decisions re influenced more by interpersonl reltions thn by tsk demnds. Moreover, low socil nd intellectul mobility forces owners to recruit mngers from their own fmilies, cstes nd communities, reinforcing old customs, vlues nd beliefs. The top Indin industril houses (such s Tts, Birls) re good exmples of this. The high prevlence of owner-mngers within the business structure fits well with this culturl tendency (Budhwr nd Khtri, 2001). Influence of ntionl institutions on Indin HRM Results in Tble 2 show tht Indin mngers give high priority to ntionl lbour lws (40.89), trde unions (28.55) nd eductionl nd voctionl trining set up (24.45), regrding their influence on HRM policies nd prctices. Tble 2 Influence of different institutions on HRM Institutions No. of cses Men 1 Ntionl lbour lws 132 40.89 2 Trde unions 98 28.55 3 Professionl bodies 101 16.06 4 Eductionl nd voctionl trining set up 120 24.45 5 Interntionl institutions 72 11.18 Content nlysis of the open-ended nswers shows tht the mjority of Indin mngers (61.5 per cent) believe tht Indin ntionl lbour lws influence their HRM policies nd prctices the most becuse they limit the ctions tht cn ctully be implemented. Moreover, they re 'pro-lbour' nd dherence to them is importnt for mintining good industril reltions nd therefore the survivl of orgnistions. They hve direct impct on personnel policies nd ct s guiding pillrs for 'exit policies' (developed to fcilitte retirement in the light of liberlistion) nd the downsizing of orgnistions. Some 28.4 per cent of Indin mngers feel tht trde unions significntly influence their HRM policies nd prctices nd 16.9 per cent of Indin mngers believe tht the present eductionl voctionl trining set-up of Indi is helpful in incresing employees' efficiency, contributes to the process of up-dting their skills nd fcilittes better stress mngement. Less thn 1 per cent of the Indin mngers dmit tht their HRM prctices re influenced by professionl bodies nd interntionl institutions. t present, there re over 150 stte nd centrl lws in Indi which govern vrious spects of HRM t the enterprise level (Budhwr nd Khtri, 2001; Venkt Rtnm, 1995). Unfortuntely, while there is prolifertion of legisltion, the implementtion is wek. However, the legisltion still dicttes most HRM policies nd prctices. Some of the prominent lbour lws re: - The Fctories ct, 1948; - The Industril Employment (Stnding Orders) ct, 1946; - Industril Disputes ct, 1948; - Trde Unions ct, 1926; Minimum Wges ct, 1948; - Pyment of Wges ct, 1936; - Pyment of Bonus ct, 1965; - Employee Stte Insurnce ct, 1948; - Compenstion ct, 1923; - pprenticeship ct, 1961; nd - Mternity Benefit ct, 1961 (for more detils, see Gonslves et l., 1995). s expected, the influence of trde unions on HRM is significnt. lthough in percentge terms unions in Indi re in decline, in bsolute terms there is n increse in union membership (Ds, 1999). Moreover, s hs hppened in the West (for exmple, in the UK), the Indin unions re now plying more co-opertive role nd re less militnt. Nevertheless, they still gretly influence HR policies nd prctices in Indin compnies, for exmple, in the recruitment of new employees, pyment of bonuses nd internl trnsfers. The unions re strong due to the politicl support they enjoy nd the existence of pro-lbour lws in Indi (Sprrow nd Budhwr, 1997). The eductionl nd voctionl trining set-up is the third importnt institution which influences Indin HRM (see Tble 2). number of institutes such s the Indin Society for Trining nd Development, the ll Indi Mngement ssocition, the Ntionl Institute of Industril Engineering nd the HRD cdemy hve been estblished over the yers. They provide trining to ll levels of employees. In 1988, centrlly-sponsored scheme of voctionlistion of secondry eduction ws lunched for clsses XI nd XII. Under this scheme, 150 courses hve been introduced in six mjor res-griculture, business nd commerce, engineering nd technology, helth nd prmedicl, home science nd others. In 1993, Centrl Institute for Voctionl Eduction ws set up in Bhopl to provide technicl nd cdemic support to the voctionl eduction progrmme in the country (Ydpdithy, 2000:82). On the other hnd, Indin orgnistions, both pst nd present, hve mde ttempts to emulte Western or Estern (Jpnese) ptterns of mngement. This is becuse Indin mngers re often trined in the West nd most of the Indin mngement institutes hve dopted the Western eduction system. However, due to the strong fmily, socil, religious influence, on the one hnd, nd the Western eduction on the other, Indin mngers internlise two seprte sets of vlues. The first is cquired from their fmily nd community nd is relted to ffilition, security, dependency nd socil obligtion. The second is drwn from their eduction nd professionl trining nd reltes to personl growth, efficiency nd collbortive work (Shy nd Wlshm, 1997). In prctice, the first set of vlues re more dominnt. Both the results nd existing literture show the wek influence of interntionl institutions on Indin HRM. There cn be two possible explntions for this. First, the type of interntionl institutions existing in the region nd, second, their power nd influence on HRM in Indi. For exmple, the interntionl institutions more relevnt to Indi include the Interntionl Lbour Orgnistion (ILO), the Generl greement on Triffs nd Trde (GTT) nd the South sin ssocition for Regionl Co-opertion (SRC). However, their influence on Indin HRM is not significnt (Sprrow nd Budhwr, 1997). The influence of the ILO on Indin HRM policies is expected to be high, but in prctice the provisions of the ILO re not followed to ny gret extent (Venkt Rtnm, 1995). Institutions such s the SRC work for mutul co-opertion in the region but hrdly influence HRM in Indi. Influence of dynmic business environment on Indin HRM Results from the survey show tht, on verge, Indin mngers give reltively high priority to customer stisfction (25.1 out of 100 points) nd incresed competition/globlistion of business structure (24.3) regrding their influence on HRM policies nd prctices. Results of the content nlysis show tht the mjority of the Indin mngers (74.4 per cent) believe tht their personnel function is under severe pressure to improve productivity by developing n efficient nd responsible workforce. The emphsis is on the need for tem work, enhnced trining progrmmes, HRD, skills improvement nd retrining of employees by providing technicl skills. Some 65.4 per cent of Indin mngers believe tht due to the dynmic business environment there is strong need for mngement to chnge inititives (to chnge ttitudes, perceptions nd improve the work environment), 60.8 per cent of Indin mngers feel tht the personnel should contribute more ctively in the restructuring of the business, i.e. fcilitting de-lyering, downsizing, decentrlistion nd cost reduction. Some 43.5 per cent of Indin mngers feel tht, becuse of the dynmic business environment, there is need for more emphsis on customer Tble 3 Influence of dynmic business environment on Indin HRM Chnges in business environment No. of cses Men 1 Incresed ntionl/interntionl competition/Globlistion of corporte business structure 125 24.28 2 Growth of new business rrngements e.g., business llinces, joint ventures, nd foreign direct investment through mergers nd cquisitions 116 17.57 3 More sophisticted informtion/communiction technology or incresed relince on utomtion 125 18.20 4 Chnging composition of the workforce with respect to gender, ge, ethnicity nd chnging employee vlues 102 14.04 5 Downsizing of the work force nd business re-engineering 105 15.45 6 Heightened focus on totl mngement or customer stisfction 126 25.05 stisfction, nd 33.2 per cent feel tht competitive pressures hve resulted in enhnced levels of mnpower plnning to ensure tht the right person is in the right plce t the right time, nd need to ttrct nd retin lbour (with rre skills) nd improve the efficiency nd qulity of their work. The men score for downsizing of the workforce nd business re-engineering spect of dynmic business environment (competitive pressures) is high (see Tble 3). s mentioned bove, due to the liberlistion of the Indin economy, there is n incresed level of competition from overses firms. This hs put lot of pressure on the Indin personnel function in domestic compnies to prepre nd develop their employees so tht these compnies re ble to compete with overses firms in skills, efficiency nd effectiveness (Sprrow nd Budhwr, 1997). Improvement in the qulity of goods produced nd services provided is lso seen s wy to survive in the present competitive business environment, hence, the obvious focus on totl customer stisfction in Indin orgnistions. Conclusions The doption of the frmework detiled in this pper hs not only helped to highlight the min interply between the HRM policies nd prctices nd ntionl fctors but lso the context-specific nture of Indin HRM. For exmple, the strong impct of unions nd pressure groups on Indin HRM clerly presents the context responsible for such prctices. Such n nlysis contributes to the ssessment of the wy in which HRM in different ntions is becoming similr or remining different (Budhwr nd Sprrow, 1998). Such reserch is of vlue to prctitioners s it helps to develop n understnding of the min predictors (i.e. ntionl fctors) of HRM in different ntionl nd regionl settings. They cn develop their policies nd prctices ccordingly. The informtion cn lso be used s trining tool for exptrites. Considering the smple size, the nture of respondents nd the reserch topics covered, it would be unwise to come to ny definite conclusions regrding Indin HRM. It is essentil to exmine much more closely the regionl HRM differences, the Indin industril reltion system, the differences in privte nd public sector mngement prctices nd policies nd the issues relted to indigenous mngement pproches in Indi. prt from these, to develop better understnding regrding the influence of ntionl culture on HRM policies nd prctices, the impct of different dimensions of ntionl culture such s the ones proposed by Hofstede (1991) nd Hmpden-Turner nd Trompenrs (1993) should be exmined. The influence of more institutions such s lbour mrkets (Benson, 1995), employers federtions nd consulting orgnistions is lso worth exmining. Similrly, more spects of the dynmic business environment such s the fcility of informtion (minly due to the development of the Internet) nd the impct of the globlistion of business on cross-ntionl HRM should be exmined. Finlly, it must be kept in mind tht the influence of the business sector on cross-ntionl HRM is under-reserched. With n nticipted GDP growth rte of 6 per cent, Indi is now projected to be one of the fstest-growing economies in si (see Budhwr, 2001). With prlimentry mjority it is likely tht the present government cn complete its five yers, thus providing the much needed politicl stbility t the ntionl level. The present government hs been quick to initite the vitl 'second genertion' of reforms. If successful, these significnt chnges could push the growth rte to 9 or 10 per cent. With full ownership llowed, MNCs will no longer need to put up with the constrints of struggling joint ventures, or shre the fruits of success with other Indin compnies (Guh, 1999b). The success of the Indin softwre nd hrdwre sectors is now widely cknowledged world-wide. long with chep mnpower, Indin 'brin power' is now contributing to rel cost dvntge. Such dynmic nd competitive business environment presents number of chllenges to Indin HRM. The ntgonistic role of trde unions is on the verge of chnge. However, due to strong politicl support, the pce of this chnge is very slow. Commenttors in the field (such s Ds, 1999) suggest the need for structurl djustments (such s stopping multiple subscription of union membership, reducing inter-union rivlry, reducing politicl influence on unions nd incresing union membership) to mke unions more co-opertive. This in turn mens there is strong need to mend the provisions of gret del of lbour legisltion such s the Trde Union ct of 1926 (which is strongly pro-lbour). Understndbly, such mcro-level structurl chnges tke long time, therefore, it is the HRM function which should mould things (within the mentioned constrints) to mke best use of their HRs. Bibliogrphy: 1. Budhwr, P. (1999) 'Indin Mngement Style nd HRM', in M. Tyeb (ed.) Interntionl Business Text, London: Pitmn, pp. 534-540. 2. Budhwr, P. (2000) 'Indin nd British Personnel Specilists' Understnding of the Dynmics of their Function: n Empiricl Study', Interntionl Business Review, 9 (6), 727-753. 3. Budhwr, P. (2000b) 'Fctors Influencing HRM Policies nd Prctices in Indi: n Empiricl Study', Globl Business Review, 1 (2), 229-247. 4. Budhwr, P. (2001) 'Doing Business in Indi', Thunderbird Interntionl Business Review, forthcoming. 5. Budhwr, P. nd Khtri, N. (2001) 'Comprtive Humn Resource Mngement in Britin nd Indi: n Empiricl Study', The Interntionl Journl of Humn Resource Mngement, forthcoming. 6. Budhwr, L., Reeves, D. nd Frrell, P. (2000) 'Life Gols s Function of Socil Clss nd Child Rering Prctices in Indi', Interntionl Journl of Interculturl Reltions, 24, 227-245. 7. Budhwr, P. nd Sprrow, P. (1997) 'Evluting Levels of Strtegic Integrtion nd Devolvement of Humn Resource Mngement in Indi', The Interntionl Journl of Humn Resource Mngement, 8, (4), 476-494. 8. Budhwr, P. nd Sprrow, P. (1998) 'Ntionl Fctors Determining Indin nd British HRM Prctices: n Empiricl Study', Mngement Interntionl Review, 38 (Specil Issue 2), 105-121. 9. Ds, H. (1999) 'Trde Union ctivism-voidble or Inevitble', Indin Journl of Industril Reltions, 35 (2), 224-236. 10. Dtt, R. nd Sundhrm, K.P.H. (1999) Indin Economy, New Delhi: S. Chnd nd Compny Ltd. 11. Hofstede, G. (1991) Culture's Consequences: Softwre of the Mind, London: McGrw-Hill Book Compny. 12. Krishn, . nd Monpp, . (1994) 'Economic Restructuring nd Humn Resource Mngement', Indin journl of Industril Reltions, 29 (4), 490-501. 13. Shy, S. nd Wlshm, G. (1997) 'Socil Structure nd Mngeril gency in Indi', Orgnistion Studies, 18, 415-444. 14. Shrm, I.J. (1984) 'The Culture Context of Indin Mngers', Mngement nd Lbour Studies, 9 (2), 72-80. 15. Sinh, J.B.P. nd Sinh, D. (1990) 'Role of Socil Vlues in Indin Orgnistions', Interntionl Journl of Psychology, 25, 705-714. 16. Sprrow, P.R. nd Budhwr, P. (1997) 'Competition nd Chnge: Mpping the Indin HRM Recipe ginst World Wide Ptterns', Journl of World Business, 32 (3), 224-242. 17. Venkt Rtnm, G.S. (1995) 'Economic Liberlistion nd the Trnsformtion of Industril Reltions Policies in Indi', In Verm, ., Kochn, T.. nd Lnsbury, R.D. (eds) Employment Reltions in the Growing sin Economies, London: Routledge. 18. Venkt Rtnm, C.S. nd Chndr, V. (1996) 'Sources of Diversity nd the Chllenge before Humn Resource Mngement in Indi', Interntionl Journl of Mnpower, 17 (4/5), 76-108. 19. Venkt Rtnm, C.S. nd Verm, . (1998) (eds) Chllenge For Chnge: Industril Reltions in Indin Industry, New Delhi: llied Publishers. 20. Ydpdithy, P.S. (2000) 'Interntionl Briefing 5: Trining nd Development in Indi', Interntionl Journl of Trining nd Development, 4 (1), 79-89. Read More