PMGC Presentation

8/8/2019 PMGC Presentation

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HR practices in INDIA


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Evolution of HR India

The Beginning ---50s

The Beginning ---50s

60s --- 80s

60s --- 80s

90s --- TODAY

90s --- TODAY


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The Beginning

Before 1929 HR existed informally

No standards

Nature and community were the law

1929 to 1931 Standardization

Introduction personnel management

Formation of Trade Unions

Welfare measures for workers In 1947 to 1950

Introduction of workers legislations


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INFLUENCING EVENTS

Royal Commission of Labour

Political leaders like Mahatma Gandhi influenced theway industrial workers are managed. This focus made

an adequate number of employees available to theindustry, disciplined the rural and less educatedworkers and implemented various legislations andsettled disputes.

Influence of progressive employers who on their owncared about the well being of the employees. (TataSteel in Jamshedpur)

Indias independence


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60s--- 80s

In 1960s HR was coined Welfare management

Scientific management

Administrative management

1970 Personnel administration

Industrial relations

Labor welfare

Union activism legalized

Managerial unionism (see 1)


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1961, with the full cooperation from the trade union, the Indian Aluminum Company Ltd.

Conducted a plant wide work study at its Alupuram, Kerala plant. This lead to defining

the work output, staffing pattern, and productivity linked inventive scheme. The

establishment of management training institutes and business schools like XLRI and the

IIMs helped the industry to imbibe modern management principles and thought.

Professors Udai Pareek and T V Rao were among the pioneers who not only introduced

the human resource development (HRD) concept in India but also assisted many

organizations in designing development oriented HR systems. The have discussed the

paradigm shift from traditional personnel function to the human resources system.

It was recognized by then that systematic attention to human resources was the only way

to increase organizational effectiveness. This awareness created the stage for the direct

involvement of top managers and line managers in the HRprocess.

INFLUENCING EVENTS


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90s --- Today

Strategic focus

Proactive approach

Service focus Key part of organizational mission

Process based organization


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Current Situation


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Recruitment methods

Broad range

Walk-in interviews

On-campus recruitment Advertisements and recruitment agencies

Employee referrals

Top Indian Business Schools Probationary officer program


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Training

Education is extremely valued

Entry point training programs (3 to12 months oforientation).

Ongoing training programs. Development programs (promotions involve

training).

In-house training centers are a common feature in

Indian organizations.

Deductive learning style in training


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Performance Appraisal

Challenge of the collectivist culture

Annual performance appraisals.

Supervisors provide performance ratings

Employment termination carries a social stigma.


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Compensation

Structure of compensation

40 % basic salary

35 % flexible benefit plan 25 % retirement benefits and performance based

pay

Several categories of leave (vacation)

Compensation level


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Compensation


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Public Retirement

Retirement age

Provident fund

Employees State Insurance


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Opportunities

General

Knowledge Outsourcing

Managers and team leaders go to different countries

and come back training a new team.

Technology Changes

Maximizing prospects

Culture- Change in culture from company tocompany

Rewards for outperforming employees


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Opportunities

Specific

Referral centres, walk- in interviews

Integrate talent management systems

Training and development


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Opportunities

Secure new talents via mergers

Expansion of services

Due to vast employee work forces in MNCs,delegation among business teams

Change according to economic situation

HR women managersMany opportunities for women to run as

leaders


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Opportunities

IT offshore outsourcing in India:

Cost savings

Abundant English- speaking talent poolMNCs infrastructure

Increasing awareness of offshoring to India

abroad. IT in India seems to have been and becoming

the biggest hub( Bangalore)


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Opportunities

Time zone difference between India and targetmarkets.

Branch networks Every branch has integrated

ways of handling HR as a whole within thecompany.

Clear objectives

Training and induction programs

WorkshopsMakes the individual best fit for

company


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Challenges Faced in India


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Recruitment & Selection

Small pool of experienced professionals(relative to its population).

1.1 billion people -> 350 million use English -> 20 million fluent in

the language

Work Force Quality2.5 million college graduates per year qualification not alwaysup to western hiring standards

Economic & Technological ChangesOccupational Shifts , Global Competition

DemographicsMigration of people from the rural to metropolitan cities


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Attraction and Retention

Competition for the talent pool with MNCsIn terms of salaries, perks and incentives

Creating a favourable and attractiveorganizational

Brand name, culture and security

Managing the high rate of attrition especially

in the outsourcing and IT industryLoss of training cost and efficiency

Motivating the employees


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Training and Development

Reduce resistance to change

Technical needsAdapt faster to changes in information technology and other

business processes

Learn about International business practices

and cultures

Increased globalization calls for more interaction with peopleacross the globe

Developing Leaders


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Some other issues

Integrating HR function with other businessfunctions

It is no longer possible for HR systems and processes to work inisolation from the rest of the organization

Integrating various HR policies and systems toachieve optimum performance

Equip themselves to handle the increasing

number of mergers and acquisitions Managing work force flexibilityVirtual office, off site teams and cross functional work teams


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Comparison BetweenAsian Countries


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India

Walk- in interviews

No rehiring Compensation plan

Flexible benefit plans

Performance based

advancement

China

Online Recruitment

Expatriate, returneesand locals

3 pillar pay model

Performance based

bonus and annual bonus Career advancement

India And China


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India

Overtime is paid double the

amount

Leaves are common for

everyone

Collective bargaining is free

there are no restrictions

One month notice period

Strikes are not registered

Malaysia

Overtime is paid 1.5 times

the amount

Leaves vary on the basis of

experience

Collective bargaining is

restricted

Notice period for leaving the

job differs as per years ofwork with the organization

Strikes are registered before

India And Malaysia


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India and Indonesia

India

Industrial dispute

settlement (voluntarymethod, collectivebargaining,etc)

Strikes are not registered

Performance based

selection

Indonesia

Industrial dispute

settlement(Arbitration,mediation,etc)

Strikes are registered

Employee test basedselection


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India

Open labor market

Job rotation is notpreferred

Performance based pay

More gap between

benefits of white collar

employees and bluecollar employees

Japan

Internal labor market

Preference to jobrotation

Seniority based pay

Small gap between

benefits of white collar

employees and bluecollar employees

India And Japan


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Documents

PMGC Presentation