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10 views

Case Study

Uploaded by

Malaika Kaleem
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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CHAPTER 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

29
CHAPTER 1
Appendix A for Chapter 1
Evolution and Challenges of HRM in India The HR function in Indian organizations
continue to face new challenges. While the population has crossed one billion and
the country is economically progressing, organizations in the formal sector
continue to face serious challenges in people management. The high economic growth
and the consequent demand for employable people to help achieve and sustain this
growth has made the HR function sit up and think. While the importance of human
resource management (HRM) is undisputedly recognized, the ability of HR function to
cope up with the demands of a high performing organization has been questioned. The
High Performance Workforce Study 2007, conducted by the consulting firm Accenture,
notes that Indian organizations have traditionally ignored considering people as a
source of distinct competitive advantage and they find people management as the
second important challenge faced by their chief executive officers (CEOs). Another
study among Indian CEOS identified the following people management challenges
before the top executives, which reads like a list for any western country's CEO.70
1. Creating a high-performance culture 2. Retaining talent
3. Recruiting
4. Moving from patriarchic, hierarchical management to a more team-based, informal
organizational culture
5. Linking training with performance 6. Compensating knowledge workers 7. Building
interpersonal relationships or managing conflict
8. Going global
In 2015, another study on Indian CEOs' expectations from their chief human resource
officers (CHROS) was conducted. The study found that the CEOs expected their CHROS
to contribute to organization's future, partner in business progression, and
strategically partner with the CEO in executing his/her or organizational 71 plans.
All the studies indicate that the CEOs concern on people issues, which points to
the criticality placed by top leadership on HRM in organizations in India. All the
reports have also identified that the Indian CEOS doubted the ability of a large
section of HR functionaries to be the strategic business partner. These reports
cited the failure of organizational leadership to encourage HR to move from the
traditional roles as a backroom support function, fire-fighting, and handling
crisis to the frontline
and align with business as the reason for this situation.
As Indian organizations are realizing the need for professional HRM, there is
growing demand for trained HR professionals. Business schools and other
institutions, including law universities, have been offering specialized
courses to train HR professionals. In a few organizations, line managers are
shifted to handle HR responsibilities and career HR professionals have also been
successfully shifting to other roles like marketing and operations, with a few of
them assuming CEO roles later. A study conducted in the Indian context, which
examined the relationship between the HRM role performed by line managers in top
Indian companies and the effectiveness of HRM, showed mixed support."2 Another
study, which collected information from 210 line managers, indicated that there are
points of conflict between the HR and line managers in India. Promotion decisions,
salary, employee transfers, managing attrition, and handling employee grievances
are highest in the list of conflict areas between the HR function and line
managers.7 Realizing the importance of building HR capabilities among line managers
and potential leaders, organizations have been building relevant capabilities by
organizing structured training programs (HR ones for non-HR personnel), stressing
the importance of people management, holding HRM activities for early career/first
time managers, or providing relevant exposure to HRM activities.
Evolution of HRM in India
73
References about personnel management systems and practices can be found in the
ancient Indian text Arthasastra, which includes the job description of a supervisor
and performance-linked pay for goldsmiths. Traditional India was famous for
craftsmanship, and the society itself was organized according to occupations. The
high in quality and unique Indian goods, made by continents, as early as 17th
century. Even before that, India traditional craftsmen, were shipped to Europe and
other had trade relations with the Arab countries and South East Asia. Employer-
employee relationship during that era might have been guided by master-servant
relationship.
Formal industrial organizations emerged in the country only after 1850. Merchants,
particularly from Cotton and jute mills were the initial industries followed by
Europe, developed trade and established factories in India. others, such as, steel,
leather, and coal. The British rulers which included formal personnel management
systems for institutionalized systems for running the government, recruitment and
postings of government servants.
during the early years can best be described as poor. Enquiry In the industrial
sector, conditions of labor and work commissions set up by the government, and
committees
studied the situation of workers and their recommendations
led to the formation of labor and social security legislations In line with this
thought, the Royal Commission on Labor (1929-1931) was set up to examine the
situation, and it
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