19-02-2013, 10:15 AM
Human Resource Practices in India
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India Quick Facts
Population: 1.1 billion.
Political structure: Democratic republic.
Government: President, prime minister and two Houses of Parliament.
The ruling party: Congress.
Twenty-eight states and seven union territories.
Seventeen distinct languages: Hindi and English are the official languages.
Religion: Hinduism (83%), Muslim (11%), Christian (2%), Sikh (1.9%), Other (1.8).
Literacy rate: 65%.
Indian currency: Rupee ($1= 40 rupees).
History and Societal Background
British colony for 100 years.
Great national leader: Mahatma Gandhi.
Ghandi introduced the concept of non-violence protest.
The Indian social system is dominated by a caste system.
Four specific castes; Brahmins, Khastriyas, Vaishyas, Shudras.
Created distinct labor categories.
Associated status differences.
Business Facts
Today, India is the fourth largest economy in the world.
Until 1991, there was an import substitution policy that favored domestic industries.
After 1991, there was active foreign investment with a very strong trade liberalization policy.
Foreign direct investment in India increased dramatically ($15.8 million in 1997 compared with 0.3 million in 1991).
In 2000, the Y2K computer crisis required worldwide computer remediation provided by software engineers.
Indian software engineers were found to be very dedicated and hard-working (Friedman, T. 2005; “The World is Flat”).
Mercer’s 2006 Best Companies to Work For in India
Infosys Technologies Limited (IT industry).
MindTree Consulting (IT industry).
Satyam Computer Services Limited (IT industry).
Dr. Reddy’s Laboratories Limited (pharmaceutical company).
Sapient Corporation (business and technology consulting).
Agilent Technologies (IT industry).
Johnson & Johnson (consumer health care company).
Covansys India (IT industry).
HCL Comnet (IT industry).
HSBC; Hongkong and Banking Corporation (banking services).
Class Presentation Exercise
Divide students into groups based on class size.
The instructor will assign each group one of the best companies identified in the previous slide.
As a homework assignment, each group will research two best HR practices from their assigned company using the Internet, academic or practitioner journals.
Each group will have 8-10 minutes during the next class session to present their best HR practices.
Federal Employment Laws
HR began to play a significant role with the early enactment of these employment-related laws:
The Workers’ Compensation Act of 1923 ensured that employers compensate employees for work-related injuries.
The Trade Union Act of 1926 gave formal recognition to trade unions.
The Industrial Disputes Act of 1947 led to the increased role of industrial relations (employees were distinguished by the work they did such as permanent, temporary, trainee etc.).
The Factories Act of 1948 regulated the work environment in factories to ensure the safety of employees.
The Employees Provident Funds and Miscellaneous Provisions Act of1952 required employers to provide contributions for retirement.
Affirmative Action
Affirmative Action:
Based on the caste system.
Federal jobs and admissions to colleges are strongly influenced by quotas for caste reservations.
State governments can set aside 50 percent of jobs based on different castes. To get increased support from the public, some states have 75 percent of job reserved.
Definition of Cultural Dimensions (GLOBE Study)
Power distance: The degree to which organizations and societies accept power.
Institutional collectivism: The degree to which organizational and institutional practices encourage collective action.
In-group collectivism: The degree to which individuals in societies reflect collectivist behavior.
Uncertainty avoidance: The degree to which organizations and societies avoid uncertainty by relying on practices and procedures.
Performance orientation: The degree to which upper management in organizations and leaders in societies reward group members for performance excellence.