DISSERTATION 2009-12

Name: Rishabh Dhar (A37) Enrol No. : A3906409269 Faculty guide : Mrs Kirti Mankotia Singh

DECLARATION

I, Rishabh Dhar student of Bachelor of Business Administration from Amity School of Business, Amity University Uttar Pradesh hereby declare that I have completed the Dissertation . A Study of Changing Role of HRM in the Global Business Scenario. .

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date:21/02/2012

Rishabh Dhar Enrol No:A3906409269

Place: Noida

BBA 2009-12

ACKNOWLEDGEMENT

I am grateful to acknowledge the guidance given by Ms Kirti Mankotia Singh (Faculty of Amity school of business). It is the immense support and guidance that I have been able to complete my project on time. I am especially thankful to her for the tangible and unspoken support for my project. I wish to express my gratitude to all other members from where I got the full support and the valuable information and suggestion throughout my project.

Rishabh Dhar A3906409269 BBA GENERAL

Sr NO. 1. 2. 2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.4 3. 3.1 3.2 3.3 4. 5. 5.1 5.2 5.3 5.4 6

TOPIC Synopsis Literature Review Introduction to HRM History of HRM HRM activities Manpower Planning Recruitment Performance Management Training & Development Compensation & Reward System Importance of HRM What is SHRM? Development in SHRM Benefits of SHRM Barriers to SHRM Indian HRM in transition HRM in Global Perspectives Issues and Challenges in global markets SHRM as a response to challenges of globalisation Implications of HRM activities HRM activities after Globalisation Cultural Diversity

Page no.

7 8

Conclusion Bibliography

Synopsis
Title:
A Study of Changing Role of HRM in the Global Business Scenario.

Objective:
To trace the evolution of HRM over the years. To understand the importance of HR for any business organization. To understand the concept of HRM, highlighting the impact of SHRM towards achieving the organizations strategic goals. To understand the changing business environment, and how HR plays a key role in coping up with them.

Brief about the topic:

In order for any organization to achieve its strategic objectives, it must acquire a fast pace global business environment and effective human resources planning.And, speaking of strategic human resources planning, it refers to the integration of decisions about the workforce with the decisions on the results of what is the entire organization trying to achieve. Similarly, being able to adapt a fast pacing global business environment, as well as able to go with the new trend of ideas in the business world; a company must build strong human resource management relationships with the employees. And, being the major contributor to corporation mission and accomplishments, accountability and legal compliance with organizational policies and guidelines must be achieved.Strong commitment to HRM achievement of the companys strategic objectives must be done objectively. And, this can only attain through total compliance with the companys laws, rules and regulations as a mainstream of achieving developments and good outcomes of the entire performance of the workforce. It must be kept in mind that excellent performance results to favorable results that are beneficial to the company and to the employees as well.

Current Status:
At this time and age, any human resources management can build better management portfolio by investing substantial efforts in their employees advancement and competitiveness in the corporate world. The quality of work of any worker largely depends on the investments made by the management on them. And, one of the ways to show that the management is really prioritizing its workforce is to implement increase in employees salaries, giving them appropriate benefits, advanced trainings and various work life-related programs that will measure the returns of investments afterwards. This research also reveals that an effective human resources planning also correlates with the high-standard HR values and practices that will contribute to the growing business success. Additionally, human resources management must have the ability too to assume and anticipate its customers needs and demands; in order to achieve strategic goals and financial growth. Relatively, strategic planning human resources planning require a deeper understanding of the managers about the potential benefits of every employee to the success of the organization.

Research Methodology:
The approach to the dissertation report will include a descriptive research to the trends, evolution and understanding the concepts of SHRM, and how it affects the business strategic goals.It will be based on secondary data,with information being gathered from various sources online,as well as referring to some known books.

Literature Review
What is HRM? Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value. The purpose of HRM is to anticipate changes within the employee framework, thereby ensuring that the organizational objectives are fulfilled (Nankervis, Compton and McCarthy, 1993: p. 53). This process is critical to the strategic objectives of the firm. If changes in the people market can be anticipated, and if this is attended to at the senior level, human resource management (HRM) can act as a proactive advisor. However, the relationship between overall strategic planning and HRM is largely dependent on the perceptions of both HRM and senior management towards the contribution that the workforce can make to corporate success. For example, companies that are aware of the strategic value of human resources are more likely to integrate HRM with the overall strategic plan (Nankervis, Compton and McCarthy, 1993: p. 56). Human Resources Applies to Any Size of Organization All organizations have people -- they have human resources. Regardless of the size of an organization or the extent of its resources, the organization survives -- and thrives -- because of the capabilities and performance of its people. The activities to maximize those capabilities and that performance are necessary regardless of whether the organization refers to them as Human Resource Management, Human Resource Development or Human Resources -- or has no formal name for those activities at all. Human Resource Guidelines Apply to For-Profits and Nonprofits The vast majority of resources in this topic apply to nonprofits as well as for-profits. There's a misconception that there is a big difference in managing human resources in for-profit versus nonprofit organizations. Actually, they should managed similarly. Nonprofits often have unpaid human resources (volunteers), but we're learning that volunteers should be managed much like employees ,it's just that they're not compensated with money; they're compensated

in other ways. Managing volunteers is very similar to paid staff -- their roles should be carefully specified, they should be recruited carefully, they should be oriented and trained, they should be organized into appropriate teams or with suitable supervisors, they should be delegated to, their performance should be monitored, performance issues should be addressed, and they should be rewarded for their performance. Clarifying Some Terms -- Human Resource Management, Human Resources, HRD, Talent Management The Human Resource Management (HRM) function includes a variety of activities, and key among them is responsibility for human resources -- for deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford partor full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Some people distinguish a difference between HRM and Human Resource Development (HRD), a profession. Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, e.g., career development, training, organization development, etc. The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. There is a long-standing argument about where HRrelated functions should be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?" Recently, the phrase "talent management" is being used to refer the activities to attract, develop and retain employees. Some people and organizations use the phrase to refer especially to talented and/or high-potential employees. The phrase often is used interchangeably with HR -- although as the field of talent management matures, it's very likely there will be an increasing number of people who will strongly disagree about the interchange of these fields. Many people use the phrase "Human Resource Management," "Human Resource Development" and "Human Resources" interchangeably, and abbreviate Human Resources as HR -- HR has become a conventional term to refer to all of these phrases.Thus, this Library uses the phrase "Human Resources" and the term "HR," not just for simplicity, but to help the reader to see the important, broader perspective on human resources in organizations, what's required to maximize the capabilities and performance of people in organizations, regardless of the correct phrase or term to be applied when doing that.

HISTORY OF HRM
Human Resource Management from the Industrial Revolution in the 18th century to present times. The Industrial Revolution. The momentum for the industrial revolution grew through the 17th century. Agricultural methods were continually improving, creating surpluses that were used for trade. In addition, technical advances were also occurring, for example the Spinning Jenny and the Steam Engine. These advances created a need for improved work methods, productivity and quality that led to the beginning of the Industrial Revolution. Adam Smith. In 1776, Adam Smith wrote about the economic advantages of the division of labour in his work The Wealth of Nations. Smith (1776) proposed that work could be made more efficient through specialisation and he suggested that work should be broken down into simple tasks. From this division he saw three advantages: - the development of skills - time saving - the possibility of using specialised tools. Smith's suggestions led to many changes in manufacturing processes. "every individual necessarily labours to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest, nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it."(Smith, 1776) Adam Smith, considered by many to be the father of Capitalism, also discussed the Invisible Hand or Laissez Faire approach . "According to the hidden hand approach, the only responsibility of business is to maximise profits according to the market principle and within the constraints of the law. If government interference in business is restricted to a minimum, society will benefit automatically from the activities of the business sector." (Rossouw, 1994). According to Rossouw (1994) the hidden hand approach lost value when societies did not

10

benefit automatically from business activity. It was clear that business could not be relied upon to act in the best interests of is staff, consumers and the society within which it was operating. In 1832, Charles Babbage examined and expanded upon the division of labour in his work, On the Economy of Machinery and Manufacturers. In this book Babbage offered, as an advantage to the division of labour, that the amount of skill needed to undertake a specialised task was only the skill the necessary to complete the task. Babbage analysed and documented the manufacture of a pin and broke the process down into seven elements to illustrate his point. This study became important to employers in that they only had to pay for the amount of skill required to complete a task (www.accel-team.com, 2004).
Trade Unions.

During the late 1700's and early 1800's governments began to feel pressure from the working class masses who started to question and defy the power of the aristocracy. The working class began to form workplace combinations and trade organisationsto provide a collective voice for their rights. Governments tried to fight this using legislation such as the Combination Acts of 1799/1800 in the UK, which banned everything from meetings to combinations. "There were also attempts to form general unions of all workers irrespective of trade. William Benbow (a Lancashire shoemaker), Robert Owen and many others looked upon trade unionism not just as a means for protecting and improving workers' living standards, but also as a vehicle for changing the entire political and economic order of society. Owen experimented with co-operative ventures and 'labour exchanges'; both attempts to bypass the existing order of wage slavery." (Trade Unions Congress, 2004) Trade Unions were and are still an influential force, working for continued economic and social development of workers and societies in many countries around the world. Frederick Winslow Taylor. F.W. Taylor is considered to be the father of Scientific Management. In 1911, his seminal work, The Principles of Scientific Management was published. This book contains four overriding principles of scientific management: - Each part of an individuals work is analysed 'scientifically'. - The most suitable person to undertake the job is 'scientifically chosen' and is taught the exact way to do the job. - Managers must co-operate with workers to ensure the job is done in a scientific way.

11

- There is a clear division of work and responsibility between management and workers. (Bloomsbury, 2002) "Taylor's impact has been so great because he developed a concept of work design, work measurement, production control and other functions, that completely changed the nature of industry. Before scientific management, such departments as work study, personnel, maintenance and quality control did not exist." (www.accel-team.com, 2004) The Hawthorne Studies The Hawthorne Studies were a groundbreaking set of experiments conducted at the Western Electric plant in Hawthorne, Chicago by Elton Mayo. The studies were conducted from 1927 to 1932 and measured the relationship between productivity and working environment. The studies were based on preliminary experiments conducted in 1924 that measured the effect of lighting on productivity. (Bloomsbury, 2002) The results of the experiments showed that changes in the environment did affect productivity, but this was not the sole factor. The workers considered management to be showing an interest in them and this improved motivation. Mayo's studies and the subsequent results were a significant break from the theories of F.W. Taylor in that the workers were not solely motivated by self interest. Mayo's research has led to the understanding that workplaces are more than machine like environments in that there are social environments and human emotions that require consideration. Mayo's studies led to the rise of the Human Relations Movement The Human Relations Movement

The Human Relations movement "argues that people are not just logical decision makers but have needs for creativity support, recognition and self-affirmation." (Theworkingmanager.com, 2004). The movement presents an alternative and opposite approach to scientific management as it focuses on the individual and not the task. The Human Relations movement boasts some of the world's foremost management thinkers and theories in its ranks: - Abraham Maslow. The Hierarchy of Needs. Presented in the US Psychology Review in 1943 - Douglas McGregor. Theory X and Theory Y. Published in the book 'The Human Side of Enterprise" in 1960.

12

- Frederick Herzberg. The Hygiene-Motivation Theory. Published in the book "The Motivation to Work" in 1959. (www.accel-team.com, 2004)

Contemporary Human Resource Management.

In modern business the Human Resources Management function is complex and as such has resulted in the formation of Human resource departments/divisions in companies to handle this function. The Human resource function has become a wholly integrated part of the total corporate strategy. The function is diverse and covers many facets including Manpower planning, recruitment and selection, employee motivation, performance monitoring and appraisal, industrial relations, provision management of employee benefits and employee education training and development. Summary The history of Human Resource Management has progressed through the ages from times when people were abused in slave like working conditions to the modern environment where people are viewed as assets to business and are treated accordingly. The Human Resource function will have to adapt with the times as staff become more dynamic and less limited in their roles and bound by a job description. In future we may see employees being measured on the value they contribute to a business and not their cost to the business.

13

HR ACTIVITIES INCLUDES Manpower Planning

Manpower planning enables a department to project its short to long term needs on the basis of its departmental plans so that it can adjust its manpower requirements to meet changing priorities. The more changing the environment the department is in, the more the department needs manpower planning to show: the number of recruits required in a specified timeframe and the availability of talent early indications of potential recruitment or retention difficulties surpluses or deficiencies in certain ranks or grades availability of suitable qualified and experienced successors

Recruitment
Before a department takes steps to employ staff, it should work out the type of staff it needs in terms of grade and rank, and the time scale in which the staff are required. The general principles underpinning recruitment within the civil service are that recruitment should: use procedures which are clearly understood by candidates and which are open to public scrutiny; be fair, giving candidates who meet the stipulated minimum requirements equal opportunity for selection; select candidates on the basis of merit and ability. Recruitment of overseas officers is undertaken only when no or insufficient local candidates are available. There are three key components to the recruitment process: deciding on terms of appointment selection of candidates probation

14

Performance Management
Performance management is a very important Human Resource Management function. Its objective is to improve overall productivity and effectiveness by maximizing individual performance and potential. Performance management is concerned with improving individual and collective performance; communicating management's expectations to supervisors and staff; improving communication between senior management, supervisors and staff; assisting staff to enhance their career prospects through recognizing and rewarding effective performance. identifying and resolving cases of underperformance; and providing important links to other Human Resource Management functions, such as training It includes Motivation Motivation is in many ways the key to the success of Human Resource Management development. Managers should aim to increase performance through self-motivation, rather than having to use external motivation (i.e. the imposition of rules and continual improvements to conditions of service) to bring about higher standards of performance. Performance Appraisal Performance appraisal assesses an individual's performance against previously agreed work objectives. It serves two functions. First, it enables management to evaluate an individual's performance in the current job to identify strengths and overcome weaknesses. Second, it provides information to assist management plan postings,transfers and promotions. In so doing, management is able to compare performance and potential between officers of the same rank. Promotion Promotion denotes that an individual has the competencies, i.e. the skills, abilities, knowledge and attitudes, required to perform effectively at the next higher rank. The competencies reflect the knowledge and skills exhibited in observable behaviour in the relevant areas of work. Promotion provides motivation to perform well and is an important part of performance management.

15

Training And Development

In simple terms, training and development refers to the imparting of specific skills, abilities and knowledge to an employee. A formal definition of training & development is it is any attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. The need for training & development is determined by the employees performance deficiency, computed as followsTraining & Development need = Standard performance Actual performance. Aims/objectives of training & development The fundamental aim of training is to help the organization achieve its purpose by addingvalue to its key resource the people it employs. Training means investing in the people to enable them to perform better and to empower them to make the best use of their naturalabilities. The particular objectives of training are to: Develop the competences of employees and improve their performance; Help people to grow within the organization in order that, as far as possible, its futureneeds for human resource can be met from within; Reduce the learning time for employees starting in new jobs on appointment, transfersor promotion, and ensure that they become fully competent as quickly andeconomica lly as possible.

Compensation & Reward System

Compensation is payment in the form of hourly wages or annual salary combined with benefits such as insurance, vacation, stock options, etc. that can positively or negatively affect an employee's work performance. An ideal compensation management system will help you significantly boost the performance of your employees and create a more engaged workforce thats willing to go the extra mile for your organization. Such a system should be well-defined and uniform and should apply to all levels of the organization as a general system.

16

Importance of HRM in Global Business

The environments within which international business is carried out in the first decade of the new millenium is increasingly competitive.

The technological environment is such that technology supremacy is fleeting and since it does not last long - cannot be considered a strong advantage of a company. The economic environment is effected by too many uncontrollable factors which means a stable economic situation is less certain. The economy can be effected negatively by things which large companies and federal governments have no control over. The political environment responds to the socio-cultural environment - which in many countries, is undergoing the stresses of large immigration movements and cultural and religious frictions. Very few regions of the world are free of conflict so no place has a distinctively advantageous political environment The geographic environment, long affected by rampant pollution, deforestation, greenhouses gases from autos and factories, acid rain from coal fired generators, declining water reserves etc. etc. has seen a bit of Mother Nature fighting back in 2003-2005 with some spectacular events such as a massive tidal wave, numerous destructive tornadoes, larger and more frequent hurricanes, volcanoes, mudslides, sandstorms, drought and crop failures an so on. As a consequence of the changes to and changes by the geographic environment, almost everyplace on the planet has had to endure weather that has negatively effected business and agricultural productivity.

The one area in which companies can become more competitive is having the best people and having those people serve their customers in the best way. Therefore one of the key things for companies in the "new new" economy is to focus on the people in the company, and the customers they serve - ergo, Human Resource Management has become a "big issue" for international business.

17

What is SHRM ?
Strategic human resource management or SHRM is a branch of HRM. It emerged from the discipline of human resource management and is a fairly new field. Strategic HRM is defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and competitive advantage. SHRM in an organization means to accept and involve the functions of HR as a strategic partner in formulating and implementing the companys strategies through human resource activities which may involve recruiting, selecting, rewarding and training company personnel. In spite of the similarity in names, HRM and SHRM are two different practices; SHRM is basically a part of the complete HRM process. Besides that SHRM focuses more on long-term objectives rather than the in-house objectives with employees dealt by HRM. In the late 1980s writers started stating strong opinions for a much more strategic approach to managing people than was the standard practice of that time. They clamored for the change of traditional management practices of industrial relations and people to the modern more improved ones. The center point of SHRM is to address and solve problems that effect management programs centering on people in the long run and more than often globally. We can say that the main goal or objective of SHRM is to increase productivity not only in the employees but in the business overall, it achieves this by focusing on business problems and obstacles outside of the human resources range. SHRM identifies important human resource areas where strategies can be implied for the improvement of productivity and employee motivation. To achieve good results communication between human resource and top management of the organization is of utmost importance as cooperation is not possible without active participation.

Key features of SHRM

The key features of strategic human resource management are given below: Some organizing strategies or schemes link individual human resource interventions so that they are mutually supportive A great amount of responsibility is transferred down the line for the management of HR. There is a precise link between overall organization strategy, organization environment, HR policies and practices.

Development in SHRM
In recent times HRM professionals have been facing challenges with employee participation, performance management, employee reward systems, high commitment work systems and human resource flow because of globalization. Traditional models and techniques have no place in todays business world; also local companies which go global cannot use the same tactics in the global business world. Top managements and HR professionals that are involved in strategic human resource management face a wide range of issues which include some of the following: Rapid change in technology

18

 Introduction of new concepts of general management Globalization of market integration Increased competition, which may not necessarily be local Resultant corporate climates Constantly changing ownership Cross-cultural issues Economic gravity- shifting from developed to developing countries. Strategic human resource management is crucial large as well as small companies. In small companies this process may be as simple as the manager or the owner himself taking time to observe employees, along with assisting, assessing and giving regular reviews. However larger companies will require a whole department to be in charge of such activities for the development of employees. The quality of staff members can be improved by meting their needs in such a way that it may benefit the company. Investing in employees and providing them with tools they need to thrive and prosper in the company proves to be a good investment in the long run for the company.

Benefits of SHRM

Identifying and analyzing external opportunities and threats that may be crucial to the company's success. Provides a clear business strategy and vision for the future. To supply competitive intelligence that may be useful in the strategic planning process. To recruit, retain and motivate people. To develop and retain of highly competent people. To ensure that people development issues are addressed systematically. To supply information regarding the company's internal strengths and weaknesses. To meet the expectations of the customers effectively.

19

To ensure high productivity.

To ensure business surplus thorough competency

Barriers of SHRM
Barriers to successful SHRM implementation are complex. The main reason is a lack of growth strategy or failure to implement one. Other major barriers are summarized as follows:

Inducing the vision and mission of the change effort. High resistance due to lack of cooperation from the bottom line. The commitment of the entire senior management team. Plans that integrate internal resource with external requirements. Limited time, money and the resources. The status quo approach of employees. Fear of incompetency of senior level managers to take up strategic steps. Diverse work-force with competitive skill sets. Fear towards victimisation in the wake of failtures. Improper strategic assignments and leadership conflict over authority. Ramifications for power relations. Vulnerability to legislative changes. Resistance that comes through the legitimate labour institutions. Presence of an active labour union. Economic and market pressures influenced the adoption of strategic HRM.

20

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 Indias 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 countrys ability to create new jobs at an unprecedented rate. As has been pointed out by Meredith (2007). When Indias 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 doesnt 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. 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.

21

Drivers of Contemporary Indian HRM Trends

The figure presents the key drivers for contemporary Indian HRM trends. In Figure 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. The other three spheres, of the figure, 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

22

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 non-voluntary 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.

Key HRM Practices in Indian Organisations

HRM Practice Job Description Recruitment

Observable Features Percentage of employees with formally defined work roles is very high in the public sector. Strong dependence on formal labour market. Direct recruitment from institutions of higher learning is very common amongst management, 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 including a range of facilities like, healthcare, housing and schooling for children. Poorly institutionalised in Indian organisations. Popularity of training programmes and their effect in skill and value development undeveloped. A very low coverage of employees under formal performance appraisal and rewards or organisational goals Moderately variable across industries. Seniority systems still dominate the public sector enterprises. Use of merit and performance limited mostly to 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 retirement scheme in public sector by high performing staff. Cross functional career paths uncommon. Driven by proactive court rulings, ILO guidelines and legislature provisions. Lack of strategic and inclusion vision spread. The central government has fixed 15 per cent reservations for scheduled castes, 7.5 per cent for scheduled tribes and 27 per cent for backward communities. States vary in their reservation systems.

Compensation

Training and Development Performance Appraisal Promotion and Reward Career Planning

Gender Equity Reservation System

23

HRM in Global perspective Introduction

Globalization symbolizes the structural making of the world characterized by the free flow of technology and human resources across national boundaries presenting an ever-changing and competitive business environment. A vital aspect of globalization is the way diverse challenges are being faced by nations in an increasingly inter dependent world. No country can meaningfully progress today without efficiently responding to demands and pressures generated by international organizations and processes. As we enter a new millennium, the effects of internationalization now known as globalization are everywhere apparent. This has played a major role in sustaining the economic expansion of the global economy in the second half of the 20th century. Globalization is seemingly shrinking the planet as barriers to trade are dismantled, transport and communications costs fall, and global production systems are formed and managed by giant multinational corporations.

HRM Issues and Challenges in Global Markets

The coming of the 21ST century poses distinctive HRM challenges to business especially those operating across national boundaries as multinational or global enterprise. Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources. There are certain human resource management issues that are particular for the global enterprise. The key issues involve staffing policies selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative, culture barriers, and legal frame work. Others issues include understanding the challenges of living and working overseas, performance appraisals from a distance, training and management development, compensation packages, and labor relations and organized labor laws. Some of the key global pressures affecting HRM practices of a firm are: Deployment: Easily getting the right skills to where we need them,regardless of geographic location. Knowledge and Innovation dissemination : Spreading state-of-the-art knowledge and practices throughout the organisation regardless of where they originate. Identifying and developing talent on a global basis. Dealing with global challenges like these is quite complex. The challenges of HRM doesnt just come from the vast distances involved(though this is important ).Perhaps the bigger challenge is in coping with the cultural,political,social and economical differences among the countries and its people.

24

Competencies for a HR manager

In order to effectively deal with all the changes, HR professionals must develop competencies that will allow them to carry out their roles, competences like:

Flexibility Team work Communication Decisiveness Leadership Strategic planning Network building Client service orientation Organizational awareness Self confidence Sharing of expertise Global and cultural understanding Multiple language competencies

In addition to increasing and sustaining technological skills relating to communication developments, HR professionals will may also be required to increase their numerical and data compilations skills. As increasing demands merge to provide specific measurable results that prove effectiveness in their area, HR professionals will be required that produce quantifiable results that prove that their department is delivering specified outcomes based on the objectives and goals set forth by the organization. In addition to delivering specific measurable developments, managers will also need to know what contributed to the results declared. This may mean that HR professionals will be required to be familiar with and administer employee survey and provide for accurate data compilation and regression analysis. As a result of the increase in technology, innovation and globalization over the last 20 years, HR professionals around the world are forced to be more efficient, more effective and more competitive. They need to respond to the demands of global competitiveness by becoming more familiar with language skills, cultural awareness and diversity promotion. Additionally, HR professionals must be committed to continuous learning, being familiar with cutting edge communication. If HR managers wont pay enough attention to their changing role, serous consequences could result, including the deterioration or even perhaps the elimination of the HR department.

Strategic HRM as a Response to the Challenges of Globalization

The world has undergone a dramatic change over the last few decades, the forces of globalization; technological changes have greatly changed the business environment. Organizations were required to respond in a strategic manner to the changes taking place in order to survive and progress. Strategic Human Resource Management (SHRM) involves a set of internally consistent policies and practices designed and implemented to ensure that a firm's human capital contribute to the achievement of its business objectives. Strategic human resources management is largely about integration and adaptation. Its concern is to ensure that:

25

1. Human Resources (HR) management is fully integrated with the strategy and the strategic needs of the firm. 2. HR policies cohere both across policy areas and across hierarchies. 3. HR practices are adjusted, accepted, and used by line managers and employees as part of their everyday work. SHRM practices are macro-oriented, proactive and long term focused in nature; views human resources as assets or investments not expenses; implementation of SHRM practices bears linkage to organizational performance; and focusing on the alignment of human resources with firm strategy as a means of gaining competitive advantage. The role of people in the implementation of strategic responses has a significant bearing on the success rate. It is therefore imperative for organization to look at the human issues involved before implementation of any strategic responses.

Implications for HRM Practices

HR professional competence describes the state-of-the-art HR knowledge, expertise and skill relevant for performing excellently within a traditional HR functional department such as recruitment and selection, training, compensation, etc. This competence insures that technical HR knowledge is both present and used within a firm. Business-related competence refers to the amount of business experience HR personnel have had outside the functional HR specialty. These capabilities should facilitate the selection and implementation of HRM policies and practices that fit the unique characteristics of a firm including its size, strategy, structure, and culture .In other words, these competencies will enable the HR staff to know the company's business and understand its economic and financial capabilities necessary for making logical decisions that support the company's strategic plan based on the most accurate information possible.

26

HRM Activities After Globalisation Recruitment

Outsourcing

In India, the HR processes are being outsourced from more than a decade now. A company may draw required personnel from outsourcing firms. The outsourcing firms help the organisation by the initial screening of the candidates according to the needs of the organisation and creating a suitable pool of talent for the final selection by the organisation. Outsourcing firms develop their human resource pool by employing people for them and make available personnel to various companies as per their needs. In turn, the outsourcing firms or the intermediaries charge the organisations for their services. Advantages of outsourcing are: 1. 2. 3. 4.

Company need not plan for human resources much in advance. Value creation, operational flexibility and competitive advantage turning the management's focus to strategic level processes of HRM Company is free from salary negotiations, weeding the unsuitable resumes/candidates.
Poaching/Raiding

Buying talent (rather than developing it) is the latest mantra being followed by the organisations today. Poaching means employing a competent and experienced person already working with another reputed company in the same or different industry; the organisation might be a competitor in the industry. A company can attract talent from another firm by offering attractive pay packages and other terms and conditions, better than the current employer of the candidate. But it is seen as an unethical practice and not openly talked about. Indian software and the retail sector are the sectors facing the most severe brunt of poaching today. It has become a challenge for human resource managers to face and tackle poaching, as it weakens the competitive strength of the firm.

E-Recruitment

Many big organizations use Internet as a source of recruitment. E- recruitment is the use of technology to assist the recruitment process. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae i.e. CV through e mail using the Internet. Alternatively job seekers place their CVs in worldwide web, which can be drawn by prospective employees depending upon their requirements. Advantages of recruitment are:
o o o o o

Low cost. No intermediaries Reduction in time for recruitment. Recruitment of right type of people. Efficiency of recruitment process.

27

Performance Management
The world of Performance Management and Appraisals is changing very quickly. Trend 1 - Performance Management Redefined Now a Valuable Line Management Tool In the last 30 years, Performance Management has remained a static process that consisted primarily of an annual appraisal. Line management viewed the process as something which the HR department required managers to deliver and complied accordingly. Today, Performance Management is one of the principle tools executives, line managers, and employees are able to use to achieve their collective goals. The change in application of Performance Management has been enabled by software that provides management with a way to achieve itsoperational and strategic goals Trend 2 Full Time Performance Management Annual appraisal is rapidly being replaced with Full Time Performance Management. Full time Performance Management provides a mechanism where both managers and employees are able to make relevant notes on performance related issues throughout the year. This function is often referred to as a Performance Diary. When the appraisal is conducted, both are better prepared and have a full record of achievement (or areas for development and coaching) throughout the year. This feature also promotes an ongoing dialogue between managers and employees and ensures that both are on track to achieve their goals for the year. With manual systems, employees are often ignored until the appraisal, only to be told they have not performed well for the entire performance period. A negative message and demoralizing result for twelve months work by the employee. Trend 3 Less Reliance on Position Descriptions for Performance Management In years gone by, appraisals were often conducted against a Position Description. Today both HR and Line Management are using Performance Management systems to drive performance requirements during future performance periods. This is as opposed to using the traditional position description to drive performance. Reasons for this change are as follows: a) Position Descriptions are typically static documents. They usually do not reflect what a manager needs an employee to achieve in a defined period of time, rather they provide a basic outline of the role. b) Positions Descriptions are only one element of the Performance Management spectrum. Most managers and HR practitioners agree that the other mandatory elements of a Performance Management system are more effective at driving performance than the basic metrics included in a Position Description. c) Position Descriptions are often far out of date and line management cannot rely on their integrity to conduct performance appraisals. Trend 4 Low Administration Performance Management Early automated Performance Management systems were standalone systems that offered several benefits but still suffered from high administrative input. These systems required HR to make duplicate data entries for all additions, changes and deletions to staff because entries had to be made in both the payroll system and the Performance Management system. Today, Performance Management applications can be fully integrated with the payroll system which means data entry is only required in payroll. All changes made to payroll are automatically made to the Performance Management application. This

28

substantially reduces costs related to administration, enabling HR to assist line management with more strategic issues and matters of compliance. Trend 5 Link to Strategy Many organisations have now realized the relationship between setting objectives and linking these objectives to organisational strategy. Performance Management systems are the vehicle for doing this. Combined with Full Time Performance Diary functionality, Performance Management is now one of the most powerful methods for effectively directing organisational effort.

29

Training and Development

Some current trends in corporate training include: Using non-teachers as trainers: In this case, professional trainers might train a supervisor or mentor to lead employee training projects. The method is to give teaching skills to those who are most familiar with the work skills to be taught.
Computer-based training:

Online training or self-study can either replace the use of a teacher or be used in conjunction with classroom instruction. Personalized training: Employers are increasingly designing personal development plans for individual employees rather than running large groups through one-size-fits-all training packages. The method allows employees to incorporate training that interests them and allows supervisors to put their workers in programs that best suit them. Just-in-time training: This refers to the concept that training is most effective when an employee can put it to use quickly. Training on a new computer system, for example, is done just before the system goes live, rather than months or weeks before.

Expatriate Training
This series of Global Management Training and Development initiatives aims at equipping executives with the required management skills and knowledge for operating successfully in a global business environment. It involves : Pre-departure Expatriate Training Program The ability of an international assignee to adapt to the business mentality and working practices of the host country is essential to a successful assignment. Failure to adapt can manifest itself in dissatisfaction, patterns of strategic failure, low work productivity, poor working relationships, and costly mistakes. Pre-departure training provide expatriates with the necessary management skills to be able to cope with the business practices they will experience during an overseas assignment. It focuses on : Global Organizational Development Global Strategic Roles Definitions of Global Managers and Roles HRM//Hiring /Evaluations/Formal Disciplinary Actions

30

Sexual Harassment Legal issues Global corporate finance

Pre-departure Global Strategies Program It provides top executives with the necessary strategic skills and knowledge to be able to run overseas offices successfully. Specifically, it focuses on:

Strategic Organization Development Understanding Fundamental Theories of Global Strategies Strategic Global Human Resource Management Case Studies based on Corporate & Business Strategies Corporate Financial Strategies

Expatriate on Assignment Training

It identify and

review to what extent the organization`s expatriates have acquired the necessary global skills and knowledge during their assignments.It aims at supporting expatriates through training. It focuses on:

Identifying and reviewing global competency levels since expatriation. Reviewing Global Management Practices through case studies Critical Incidents focusing on Management Practices Labor Issues

Repatriation Management Program identifies the level of global competencies which returning expatriates have acquired during their overseas assignments. It then looks at how these competencies have been utilized within the organization following repatriation.It helps repatriates to maintain their global competency levels and to create an appropriate fit between their competency levels and the organization`s strategic goals. Overseas Staff Management Training It develops the future management staff of host and third country nationals. Understanding HQ strategies and business practices, host and third country nationals will be able to be involved in more management decision- making in their organizations. It specifically focuses on strategic views of management practices.

31

Compensation
Compensation, in its broadest sense the perspective that managers must take in the global economy is at the very heart of every organizations performance potential. Compensation provides the point at which organizational and individual priorities and goals meet, encouraging the contentment of both parties. It provides the driving force for effectively attracting needed human talent, retaining that talent and encouraging the talent in enduring persistent, enviable and enhanced performance. While developing the global compensation and benefit composition, HR must deal with many factors that are not present in a domestic environment. In this article, we will discuss about some of those factors that unswervingly impacts global compensation and benefits strategies and general insinuation of those factors on HR professionals. Factors affecting Global Compensation and Benefits Developing suitable compensation policies to meet organizational strategies, while efficiently accommodating different types of employment terms and conditions, poses many distinctive challenges for global HR practitioners, such as: 1. Dealing with diverse standards and costs of living and multiple currencies, exchange rates, inflation/deflation rates, tax systems and tax rates. 2. Maintaining the suitable balance between global consistency and local significance. 3. Addressing organizational business changes (expansions, mergers and acquisitions, joint ventures, Greenfield operations and investitures). 4. Complying with local compensation practices, laws and regulations. 5. Accommodating varied employee values and expectations stemming from differences in cultures, languages and communication preferences. In order to effectively strike a balance among all the above mentioned influences, the HR professional must be aware of the following: 1) Culture: Cultural differences necessitate understanding that the value of compensation and benefits programs is in the eye of the beholder. A benefit highly valued in one country may be comparatively worthless in another. Differences are often rooted in subconscious beliefs, attitudes and values. Compensation and benefits strategy recommendations: 1. Engross local contacts to understand usual and traditional compensation and benefits practices. 2. Circumvent headquarter biases or imitation of HQ country policies and procedures (for example, paying sales commissions in risk-averse cultures or reward and recognition programs that reward individual contributions in cultures that places greater prominence on team or group contributions or prefer private gratitude).

32

2)

Economic factors: Many differences subsist from country to country, in terms of the: I. Influence of politics and power II. Distribution of wealth across countrys citizenry

III. Unpredictability of events (i.e. sometimes rapid changes in rates of inflation, currency) Compensation and benefits strategy recommendations: 1. Conduct a risk analysis of economic factors and their consequences. 2. Recognize that unofficial sources of authority in a community or region and official governmental personnel may have large impact on what is considered acceptable. 3. Make allowances for local inflation/deflation or currency fluctuations. 4. Create contingency plans to mitigate the risks associated with probable changes in economic factors. 5. Contribute to the local area to support educational facilities, internal training, and child care or other local services. 3) Taxation: Tax regulations vary extensively from country to country. Some countries have no income tax, while others have income tax in excess of 50%. Some benefits that are taxable in one country are not taxable in the geographically adjacent country or vice-versa. Compensation and benefits strategy recommendations: I. II. III. Comprehend the taxation of cash and noncash compensation, benefits and perquisites what is taxed, at what rates and at what levels. Engage experts in local compensation and benefits laws and practices. Distinguish that a benefit may be undesirable, depending on how it is taxed.

4) Competitive labor market: At a broader level, the compensation and benefits required to magnetize and sustain talent are determined by the aggressive demand for that talent. However, the nature of the competition for talent may differ across countries and regions, depending on factors such as:
I.

Type of talent sought II. Geographic scope of the talent market III. Industries in which the talent may be found IV. Mix of remuneration components

Compensation and benefits strategy recommendations: 1. Employ people with similar skills when industry-specific expertise is in short supply or competition is high; retrain or coach the hires on the job. 2. Lead, lag or match the rates of pay in the relative marketplace based on the skills needed, the demand for required talent and the best way to compensate those types of workers. 3. Recommend suitable blend of pay and benefits that will appeal to current or potential employees.

33

5) Laws and Regulations: Laws and regulations impact the remuneration of employees in many areas, such as: I. II. III. IV. V. VI. Work hours and compulsory time-off (paid and unpaid) Minimum wage Overtime Compulsory bonuses Employment at will Acquired rights

There are remarkable country-to-country variances as well as some regional differences. Compensation and benefits strategy recommendations: 1. Identify benefits that are government-provided, mandated by the government or chosen by the employee. 2. Recognize the differences and similarities in each market. 3. Involve experts in local compensation and benefits laws and regulations.

In addition to above listed factors, the organizational approach to global staffing also influences the compensation and benefit strategies. Relation between global orientation of the organization and its impact on global compensation and strategies is discussed here. 1) Ethnocentric: Tight control of international operations; little autonomy; key positions held by headquarters (HQ) personnel. Impact on compensation and benefit strategy: I. This may lead to transfer of headquarters total compensation policies with insufficient contemplation of local legal cultural differences. II. Dictates to local country management may result in superficial conformity but actual rejection of headquarters practices.

2) Regio-centric: Operations managed regionally; communication and coordination high within the region and less between regions. Impact on compensation and benefit strategy: I. II. III. There is greater potential for uniformity of remuneration approaches within regions. The proximity of countries may lead to the perception that remuneration practices are more similar than they really are. Regional headquarters may suffer blind spots with respect to country differences, leading to ethnocentrism at the regional level.

34

3) Polycentric: Subsidiary treated as own entity; local personnel manage operations; few promotions to headquarters. Impact on compensation and benefit strategy: I. II. III. Local cultural and legal compensation norms are more likely to be understood and implemented. Remuneration policies are likely to be steady and incorporated within each subsidiary. Incentives may tend to maximize achievement of local rather than global objectives.

4) Geocentric: Organization seen as single international enterprise; management talent comes from any location; strategic plan global in orientation. Impact on compensation and benefit strategy: I. II. III. Local compensation strategies are more likely to be consistent with global policies. A desire for too much global consistency can lead to the imposition of inappropriate policies at the local country level. The development of consistent and equitable remuneration policies among global managers may be challenging as top-level managers move from one country to another.

35

CULTURAL DIVERSITY
Cultural diversity can take many forms. Ethnicity, language and religion are a few prominent examples. It is a paradox that employers are supposed to be blind to cultural differences but must account for them in order to promote harmony in the workplace. The trick is to minimize differences between employees while simultaneously respecting their diverse backgrounds and lifestyles. Generally, the differences between people are not as significant as the things they have in common. Open communication about cultural differences can defuse any tension by creating an atmosphere of understanding. Cultural differences can prompt curiosity, which can open the channels of communication. If employees are focused on a common goal, that of their company, then they will have less time or reason to dwell on differences between themselves and their colleagues. Building a strong sense of mission and teamwork is one of the best ways to minimize cultural differences. However, accommodating cultural differences can be a difficult balancing act. For instance, if the company gives one group of employees time off for religious holidays, it may provoke resentment among members of other groups. Sometimes, cultural traditions are in direct conflict with business priorities. For example, male members of the Sikh community are required by their religion to carry ceremonial daggers. This tradition can conflict with company policies about weapons in the workplace. Dietary requirements of different cultures and religions are often easily accommodated. Kosher and halal meals can be ordered for company functions or stocked in flash-frozen form in the company cafeteria. If a significant portion of the work force speaks a language other than English, it may be advisable to print memos, company newsletters and other communications in bilingual editions.

Approaches to understanding Cultural diversity

There are three approaches ,these are Achieve Global Model for Cultural differences Halls and halls Cross-Cultural classification Hofstede six key dimensions of cultural diversity

I. Achieve Global Model Achieve Global has given a model to explain cultural differences around the world,describing four types of cultures that can be observed. o The Eiffel Tower culture: These are the cultures high on concern for work as well organisation structure. Under such culture management by job

36

description prevails and the power and status of a person is described by the title he wears in the organisation. Ex. USA o The Family Culture: These cultures are the one which are high on organisation structure but low on concern for work. Relationships form the basis of such culture. Management is also done by relationships. Ex. India

o The Incubator Culture: The cultures, which are low both on organisation structure and concern for work come under this category. The management by love prevails under this culture. This is also known as Silicon Valley culture. o The Guided Missile culture: The culture with high concern for work but low organisation structure ,fall under this category. Such cultures have flattened organisation structure and people try to achieve maximum power and status in their respective organisations.

II. HALLS and HALLS CROSS-CULTURE CLASSIFICATION

Halls and Halls in 1987 provided another basis for cross-cultural classification. They divided the world into types of cultures. o Low Context Cultures o High Context Cultures

LOW CONTEXT CULTURES Paper work is encouraged. Loans and project clearances based on facts in the personal and not on influence. No room for emotions

HIGH CONTEXT CULTURES More reliance on verbal communication. Personal background influences clearance of loan and other project proposals. Emotions are given importance

No role of trust in getting the job. Lawyers are important. Time is considered precious. Trust considered important for getting job. Lawyers are considered less important. Easy going as regards time

37

III.

HOFSTEDE SIX KEY DIMENSIONS OF CULTURAL DIVERSITY

Hofstede gave a set of six key dimensions to study the diversity across the globe. These dimensions are : a. Process-Oriented Vs Result-Oriented : Process-Oriented Culture Concerned with processes, ie, the way in which things are done. Attention is given to procedures. Taller organisation structure. Personnel more unionised. Highly bureaucratic. Low Employee satisfaction Result-Oriented Culture Concerned with outcomes of the decisions. Focus is on getting things done. Flatter organisation structure. People less unionised. Less bureaucratic. Employees highly satisfied.

b. Job-Oriented Vs Employee oriented : Job-Oriented Culture Concerned with getting the job done. Performance appraisal based on ROI/profits Older people No concern for personal welfare. Management less formally educated. Capital investment is high Employee-Oriented Culture Concerned with well-being of employees. Freedom to employees. Group decision-making. Employee concern is important. Group performance vis--vis budgeted performance is the criterion for performance appraisal

38

c. Closed Vs Open Closed culture Unwillingness to accept new members of work unit. Unreceptive to new ideas High formalisation Less number of female workers Ex. India Open culture Willingness to accept new members of work unit. Receptive to new ideas Low Formalisation Large percentage of female workers. Ex. USA.

d. Parochial Vs Professional

Parochial Culture Employees derive their identity from the organisation for which they work. Organisation norms control behaviour of the employees both at home as well as on the job. Employees have short-run focus and believe that organisation will exercise long-run focus. Ex. Japan.

Professional Culture Employees derive their identity from the type of work they perform. Personal life is kept separate from professional life Employees have long-run focus. Employee believe in job competence Ex. USA

e. Tight control Vs Loose Control Tight Control Have formal policies and rules Close control of time and money High degree of repetitive or clerical work. Work is process-Oriented Lot39paper work is involved of Percentage of female workers is kept low. Loose Control Employees tend to be highly educated Informal setting Bureaucratic procedures non-existent Units are result-oriented

CONCLUSION
GLOBAL When it comes to business, the world is indeed becoming a smaller place. More and more companies are operating across geographic and cultural boundaries. While most organizations have adapted to the global reality in their operations, many are lagging behind in developing the human resource policies, structures, and services that support globalization. The human resource function faces many challenges during the globalization process, including creating a global mind-set within the HR group, creating practices that will be consistently applied in different locations/offices while also maintaining the various local cultures and practices, and communicating a consistent corporate culture across the entire organization. To meet these challenges, organizations need to consider the HR function not as just an administrative service but as a strategic business partner. Companies should involve the human resources department in developing and implementing both business and people strategies. This type of partnership is necessary if an organization wants to change potentially inaccurate perceptions of HR and reiterate the HR functions purpose and importance throughout all its global environment. Organizations will also discover that HR can be invaluable in facilitating the development of a unifying corporate culture and finding and cultivating much needed leadership talent around the world. The process of globalizing resources, both human and otherwise, is challenging for any company. Organizations should realize that their global HR function can help them utilize their existing human talent from across multiple geographic and cultural boundaries. International organizations need to assist and incorporate their HR function to meet the challenges they face if they want to create a truly global workforce. INDIAN The World Competitiveness Report rated Indias 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 (PSVS). 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.

40

BIBLIOGRAPHY Search engine: Google & Yahoo Sites referred:

www.ddiworld.com www. rphrm.curtin.edu.au/2007/issue2/india.html www.123helpme.com www.universalteacherpublications.com www.essayforum.com www.managementheaven.com/hrintro1/# managementhelp.org/humanresources/index.htm

Research Papers Referred :

The Globalization of Human Resource Practices Survey Report, by- Sheila M. Rioux, Ph.D. and
Paul R. Bernthal, Ph.D.

Human Resource Management in India: Where From and Where To?, by-Samir R. Chatterjee
The History of Human Resource Management, by-Owen Simpson Strategic Human Resource Management, by- Kunal Pathan All About Human Resources and Talent Management, by- Carter McNamara, MBA, PhD

Books Referred :
International Human Resource management- A global Perspective ,written by S.K. Bhatia foreward by Dr. Abad Ahmad Human Resource Management ,11th Edition ,written by Gary Desseler & Biju Varkkey

41