Hrm Features of India
The Distinguishing Features of Human Resource Management (HRM) in India
Introduction
Over the years, the business environment has become more and more competitive with the growing number of technological advancements that has caused rapid globalisation of markets. In addition, according to Analoui, (1998), in this era of knowledge-based economies, the workforces of firms are seen as the key resources that enable them to gain competitive advantages over one another. Lado and Wilson (1994) also suggested that Human Resource Management (HRM) practices lead to sustained competitive advantage for firms over the long run.
These notions evolving from various research have not only modernised the people management practices of developed countries like that of the UK and USA but has also led to dramatic developments of contemporary Human Resource Management (HRM) practices and systems in firms of many developing economies including that of India (Budhwar and Khatri, 2001). Shahnawaz and Juyal (2006), define Human Resource Management (HRM) as "management decision and practices that directly affects or influence the people, or human resources, who work for the organisation".
Thus, in reference to the context of India's current economic state, which has seen huge growth in Foreign Direct Investments (FDI) made by the Multi National Corporations (MNCs) entering the different sectors of the economy, strategic Human Resource Management (HRM) systems have become fundamental for achieving long term success for businesses (Singh, 2004). This implies the need for firms of having effective Human Resource (HR) functions with regards to recruitment and selection, training and development, performance management, reward management etc.
However, according to Jackson and Schuler, (1999, p; 22), the function of Human Resource Management (HRM) and the systems that it entails can be very specific to individual contexts as well as to individual cultures. This implies that cultural or
Introduction
Over the years, the business environment has become more and more competitive with the growing number of technological advancements that has caused rapid globalisation of markets. In addition, according to Analoui, (1998), in this era of knowledge-based economies, the workforces of firms are seen as the key resources that enable them to gain competitive advantages over one another. Lado and Wilson (1994) also suggested that Human Resource Management (HRM) practices lead to sustained competitive advantage for firms over the long run.
These notions evolving from various research have not only modernised the people management practices of developed countries like that of the UK and USA but has also led to dramatic developments of contemporary Human Resource Management (HRM) practices and systems in firms of many developing economies including that of India (Budhwar and Khatri, 2001). Shahnawaz and Juyal (2006), define Human Resource Management (HRM) as "management decision and practices that directly affects or influence the people, or human resources, who work for the organisation".
Thus, in reference to the context of India's current economic state, which has seen huge growth in Foreign Direct Investments (FDI) made by the Multi National Corporations (MNCs) entering the different sectors of the economy, strategic Human Resource Management (HRM) systems have become fundamental for achieving long term success for businesses (Singh, 2004). This implies the need for firms of having effective Human Resource (HR) functions with regards to recruitment and selection, training and development, performance management, reward management etc.
However, according to Jackson and Schuler, (1999, p; 22), the function of Human Resource Management (HRM) and the systems that it entails can be very specific to individual contexts as well as to individual cultures. This implies that cultural or