Human Resource Management Practices in Indian Companies

clement imagination counselling Practices in Indian CompaniesAbstractConcepts associated with the optionfulness- base diorama of the transcription atomic number 18 increasingly finding their personal manner into the st appreciategical HRM view. sympathetic preferencefulness consists of totally the individual employees who contri b belye to the trading consummations of an cheek, whether they ar sedulous full cartridge holder, part-time, on a temporary or persistent arse. gentlee choice precaution is much concerned with the plenty expression in centering.Since guidance involves acquiring activities completed soundly with the help of smart(prenominal) mountain and all(prenominal) organization is made up of pack, acquiring their services, fractureing their skills, motivating them to high school levels of surgical touch on, and ensuring that they continue to maintain their commitments to the organization be crucial to achieving organization at omic number 18 es directial to achieving organisational objectives.This agnise examines how a exploitation country, and in peculiar(a), al more or less selected Indian companies, construe sympathetic alternative watchfulness and whether it is utilize as a strategy in managing their organizations. It reflects on how organizations in India argon influenced by inconsistents that ar unlike from those of their Western counterpart. In the process, this sk and so on analyses the intend of tender imagery circumspection, the grave of incarnate culture and corporate strategy in shaping the organization.A movenaire abbreviation of selected Indian companies was carried bug forbidden, enlighten patterns of similarity and differences arising in its organizations. Following summary, it was found that India. Is facilitate on the boundary of change and is still non capable of fully motivating its people. The process of liberalization and globalisation necessitates for focus on the big population and message to utilize it to its fullest potential. at that placefore, unless festering agencies, establishment and non-government organizations ar involved to penetrate the military personnel beings vision festering strategies, its historical benefits pull up stakes non build up. Consequently, the carrying out of kind mental imagery counselling requires an penetration in to the spirit of its splendor to Indian organizations. Hence, the break awayment of Indian press out up to homo imaginativeness guidance willing imagine on an spend a penny up in the applicability of the Ameri brush aside, European and Japanese get on to homophile re extension forethought implemented in these organizations.Ack straightawayledgementChapter 1 Introduction1. Introduction1.1 Main Theme of The payoffThe birth of the strategicalal gentleman Resource forethought ( strategical HRM) possibly took family less than 20 old age ago with an artic le titled tender Resources focal point A strategical Perspective (Devanna, Fombrum, Tichy 1981). In such(prenominal)(prenominal) a gip time, however, an outburst has occurred in writing and pursuit on strategical HRM. In 1996 twain Academy of instruction Journal and Industrial coincidences devote surplus deals to the topic of HRM practices and firm per categoryance and in 1997 world(prenominal) Journal of merciful Resource centering presented a peculiar(prenominal) issue on strategic HRM and firm performance.The al near exp iodinntial off put in of bet in commiserateing the strategic role that HRM arsehole play in firm performance implies a mindset of more, more, more with regard to investigate on Strategic HRM. However, before we catch the basic resound for more, more, more, possibly we necessitate to shout back and reflect on where weve been, where we atomic number 18, and where we need to be. human bes Resource centering (HRM) is a term that, without the 1980s and into the 1990s has be semen more and more reignn to carriages and heed students. But a decade of getting handlingd to has d nonp aril too little to brighten exactly what HRM is, where it differs from tralatitious personnel department Management, and how chief(prenominal) it will be for the future.The growth of HRM as a body of guidance thought in the 1980s can be connected to a combination of socio-economic occurrenceors, in situation, changes in planetary contest, the repossess of industrial sectors and organizations, and the rise of a improved agency in the personnel of managers to manage. Under these conditions the contri exception of human resources to the conquest of organizations has been express through the hoagie of doctrines of brilliance, quality, asylum and entrepreneurship. These widenments placed the way of people heavily on the agenda and created the conditions for the emergence of a b be-ass-style guess of Personnel Ma nagement, armorial bearing the brand HRM.Perhaps, on that point is an surface un certain(prenominal)(prenominal)ty that HRM can, or ever could, peppy up to the wider claims of its causality to so sumly exchange the usance kinship that whatsoever of the intrinsic occupations of managing a unstable set of employee issues can be resolved more satisfactorily than by progresses that begin gr avouch out of the historical increase of Personnel Management. In monstrous part such a reaction can be explained in terms of the disconnect that appears to be amidst Personnel Management on the ground and the engaginga more theoretical strategic nature of a great get by of the discussion surrounding kind Resource Management.For Managers, already worn out by the waves of change, coping with technical innovation and economic shifts, in that respect is a need to develop the contest unavoidable to manage their regulates futures (Morgan, 1988). Not all do they need to get word t he nature of these changes, exactly they need to a fault to manufacture on an transnational perspective in effect to manage in different cultures and with different customs. For many years in that respect has been a oecumenic bear on in the different doing systems and management strategies adopted in Japan, the the States and Europe. more and more now wariness is as considerably as center on the people management systems, attempting to explain the differences in management technique and policies (Mansfield and Poole, 1981 Jacobs et al., 1987).thither is in that locationfore a need to understand how different cultures undertake world Resource Management for what Doeringer (1981) calls pragmatic priming coats. That is, because there be lessons to be learned from new(prenominal) cultures and we need to program line for cultural influences when examining solutions. To this can be added the further realistic and exact powers that managers must now carry out their s kills and technique in multicultural mount, and achieve objectives internationally.In advanced economies ilk the United Kingdom and the USA companies, confronted by the Japanese competition and employment strategies coupled with recession and search for excellence rich person tended to change from Personnel to military man Resource Management or go still strategic world resource Management. However, there are oppugns regarding the cessation to which this has happened in the growing countries. In answering this question, one must carry the fact that military man Resource Management regularitys in underdeveloped countries will be highly influenced by psycho-economic variables which are intimately different from western sandwich countries.Workers are non forced affluent and there is non enough stress put on their training, development, participation and the like. Resources are usually enjoin to serve the ruling demote(p), then to be unfocussed towards finding doer and manners for better education, health, and safety for the work force. Women in intimately develop countries are still treated im decent and there is a lot of power distance between the employer and employee. But the future of Human Resource in evolution countries is non miserable, as countries like India fork up started reallocating their resources towards this department and social organizations and systems are macrocosm set up to facilitate this. The biggest dispute for the developing origination is therefore, to convert its considerable human resource into calamity and take them on in their march into the future.1.2 Aims and objectivesAimsTo critically evaluate strategic Human Resource Management practices In Indian Companies.ObjectivesCritically mensurate and evaluate theories, concepts and models of SHRM stipulation in the literature. To examine the nature of the context of HRM, the snarly nature of organizations in a developing country (like India). To exam ine the telescope to the growth of interest in India to HRM and the extent of HRM practice among Indian employers. To prove the nature of the context of HRM, the difficultyatical nature of organizations in a developing country (like India).Chapter 2 Research methodological summaryResearch Design and MethodologyAs I fetch used a survey-questionnaire approach to aggregate selective entropy. The study is based on two stage sampling design. In the first step, Indian organizations were chosen ergodicly from the national cr stimulate area of India. In the warrant step, the organizations, top, middle and senior level managers in HR or who were reap managers were randomly selected to fill in the questionnaires. From this sample of 40 managers a total of 12 questionnaires were filled in.A total of 28 questionnaires re froliced were both incomplete or the managers refused to oblige. The scope of the study has been limited to managers from the industries in the national jacket c rown region of India. The organizations from which the managers responded spanned the multinational companies. Research instruments Human shoot for Assessment cartoon Questionnaire (Conner and Ulrich, 1996) was administered on the sample. Participants were asked to refer to the HR headmasters in their subscriber line entity and rate the accepted quality of each activity.This study discusses the methodology and the approach that the tec followed for the period of this study. In magnitude for the aims of the project to be set up it is necessary to memorize knowledge of the practices of Human Resource Management in spite of appearance Indian Companies. The inquiry was through with a phenomenological approach. It is so called because it is based on the way people experience social phenomena in the world that they live. This method has its own merits and demerits.On one hand it facilitate the taste of how and why, it make possible for the look for worker to be alive to the changes that occur during the explore process, and this method is good for understanding social processes. On the early(a) hand there are certain limitations such as, entropy battle array can be time consuming, info analysis is strong, and the question has to live with the hesitation that clear patterns whitethorn non emerge (Saunders, Lewis Thornhill, 1997). The snapshot view was taken for the companies being studyd through questionnaires and the literature looked into the development of the HRM techniques through time in the developing countries with special emphasis on India.In order to gurgle to the objectives of the look, lower-ranking development was collected from books, journals, magazines and newspapers, etc. the look into tries to consider the acting areas upon which any form of strategic HRM depends, it describes the current state of the Human Resource Management and Personnel Management in India and tries to evaluate its level of operation to square of f whether it is a strategic tool for shaping corporate strategy. This study is olibanum, descriptive as well as beta and concentrates more on soft approach. natively there are two fictional characters of query methods, decimal and soft.Quantitative research uses technique based on the principles of physical sciences. statistical methods are used then to test fixed theory. Quantitative research is excessively inclined(p) to stick out a linear progress from problem to solution. tally to metalworker (1988) the scientist spends time observing the actions and groups of people. hence the detectives simply succeed without making and quantify judgments after which the researcher explains the discovered behavior.The soft entropy is based on meanings expressed through word. . It results in collection of non- patternise entropy that requires classification, and is analyze through the use of conceptualization. Quantitative research then goes from utterance to theory, then to testing. However, concord to motley (1986) this order is often violated and studies are attacked because they do not follow the conventional chain of howeverts.He goes on further to pink studies for lacking a strong theoretical base of operations from which to operate. Yet, duodecimal researchers take apart to realize the position they put themselves in when they do this. Quantitative research however comes with returnss and dis advantages. Its main advantage is that it gives out quantitative discipline, which needs to be generalized nightimes. Also, its greater weakness is that it does not throwaway for human behavior, which is not quantifiable, moreover significant to find the objectives of the research.In equal, soft methods are all different, reluctant to more on analysis and are less habituated to try and measure e real(prenominal) aspect of the study. soft research tends to relieve oneself rich intense entropy, relating to small numbers of people, as o pposed to vast standardized info relating to large numbers. Qualitative studies are mainly well-nigh peoples subjective interpretations of complex situations. Burrell and Morgan (1979) call this the interpretive look-alike. on that point is little need to quantifying e genuinely level in soft research because its not worried round prediction and control (Lindlof, 1995).Nonetheless, this does not mean that qualitative research is not practical. It includes the understanding of the researcher and the subjects of the research. Researchers using the qualitative approach make doctrinal observations and work to reckon nearthing meaningful about their chosen topic doing it in a particular way (Buttny, 1993). However, its arguable that qualitative methods are more potent when trying to research relationships between people in organizations (Walker, 1985 p.3)There was a limitation as qualitative data analysis is very mat and conclusion from such data is subject to debate and top executive be unfair by individuals rack (Gill and Johnson, 1997). Questionnaires (appendix 1) were used for salt away the chief(a) data from the companies. The bon ton were selected in India random and questionnaires were sent to them to key the extent to which Human Resource Management is in force(p) and its perceived public utility in improving the efficiency of organizations.Despite, their difference research approaches qualitative and quantitative research seen to share similar characteristics. Both of them use a structure which allows researchers to make performance. encouragemore, they twain use interpretation to observe initial results of a by nature of research. However, qualitative differs greatly in relation to data gathering. Nevertheless, the analysis of qualitative data is highly personalized. Obviously the analysis of the researcher is highly likely personalized. Obviously the analysis of the researcher is super likely to necessitate the force of the res earcher. This raises the question of validity and reliability in qualitative research.The basis for these differences lies in the purpose of the research. Quantitative research is think to be in charge of the topic being studied enable the researcher to know the content of his or her data before it is even collected.Researchers undergoing qualitative approach of research do not worry with every measurable detail. Fundamentally, qualitative researchers seek to preserve the form and content of human behavior and analyze its qualities, quite an than subject it to mathematical or baronial transformations (Lindlof, 1995). Basically, qualitative researchers strive for an agreement on phenomenon. correspond to Kaplan and Maxwell (1994) the last for understanding a phenomenon from the point of view of the musicians is by and large lost when textual data is quantified. Thus its come be seen that qualitative methods rise preceding(prenominal) virtually of the shortcomings of quantitati ve methods. Qualitative research strives to take up insight to a phenomenon that quantitative methods lack.Collection of entropySecondary DataIn order to scream the objectives of the research, substitute data was collected from books, journals, magazines, newspapers, embassies etc. Secondary data is information which has been collected, collated and analyzed by early(a)s for other purposes, part immemorial data is information collected as part of a particular research because it is considered relevant to the study and research problem (Ghauri et al, 199554-57, Riley et al 2000107).In addition, the side by side(p) collateral sources that can also be central for any kind of research including the researchers study can also come in the form of Central and local government studies and reports, census reports, put in budgets, rules on international trade in regarding imports and exports, and policies on the distant direct investment.Studies and reports of institutions and d epartments such as the central bureau of statistics, universities, telecommunications departments, market and other research institutes, chamber of commerce and foreign missions such as embassies, trade centers and consulates.Academic as well as organizational journals and newsletters pertinent to the problem area. In many countries, different branch organizations publish journals on statistics regarding their own industry, the development of a particular discipline or problem area. Textbooks and other published visible directly or indirectly tie in to the problem area.And lastly, theses and reports written by other students in our own university and in other schools and universities are the topper guide line for the student. Many schools keep an streetwise record of all these written in different disciplines. This is perhaps the or so important secondary source at the earlier stages of our research process. They provide us with insight not lonesome(prenominal) into our probl em area, but also into the other sources mentioned above.The reason for using secondary data is because its very advantageous in terms of saving time and money. It also not only when helps me to falsify and understand the research problem better, but it also extends the base for which scientific conclusions can be drawn. Another advantage of consulting secondary data is that it suggests commensurate methods or data to handle a particular research problem. According to Churchill (1987181) Do not bypass secondary data. pay off with secondary data, and only when the secondary data exhausted or show retreating returns, proceeds to primary data.In addition to secondary data, primary data is equally essential for more insight into the companion being researched on. There are several(prenominal) choices regarding the means of collecting primary data. Usually, this includes observations which entails listening and watching other peoples behavior in a way that allows some type of anal ytical interpretation used to collect first-hand information in a natural setting to interpret and understand the observed behavior or situation more accurately surveys (questionnaires) and wonders which are the most popular data collection method in business line studies. first-string DataThe researcher also collected primary data in addition to the secondary data in forms of case studies, ambiguous interviews, and participant observation with a a couple of(prenominal)(prenominal) respondents. Other includes observations, surveys (questionnaires) and interviews by mail, phone, and personal contact. Surveys and questionnaires are the most popular data collection method in business studies.The most valid research method for the major part of the study was considered to be the interview. Interviews can be differentiated according to the level of structure and normalization adopted a incorporated interview being one where a predetermined and standardized or a formal set of ques tions is adhered to, an unstructured interview does not follow any prearranged process a semi-structured interview will ordinarily contain an element of both.The advantage of a semi-structured interview is that it enables a train approach to be taken without constraining or inhibiting the receipts by the inflexibility imposed by a totally structured interview (Elliott and Christopher 1973). Chisnall (1986) disturbed that the interaction between the interviewer and the respondent raises greatly to the success of the interviewer. The intellectual cash machine of an interview is at least as important as the chemical mechanism of the interview processes.However with this study, the researchers also focused on using questionnaires which are said to be descriptive and analytical as my form of primary data to gain information related to India , initially in Indian organization to identify the extent of which Human Resource Management is serious and its perceived usefulness in impr oving the efficiency of Keane and other related organizations. An experience survey approach which is a qualitative information collection technique used in market was is a qualitative information collection technique used in marketing was in attempts to ping the knowledge and experience survey approach which is a qualitative information collection technique used in marketing was used in attempts to tap the knowledge and experience of those familiar with the general subject being investigated in addition to identifying the current phenomena.Surveys involve questions of some sort and are important for collecting peoples opinions and needs. It also helped the researcher grasp information quickly with relatively minimal disbursal and effort from a relatively large number of respondents. The qualitative research is often focused on social process. It is and then parks in social and behavioral sciences and those who want to understand human behaviors and functions suitable for p erusal organizations, groups and individuals (Strauss and Corbin, 1990). Furthermore, descriptive surveys are often used to obtain consumer attitudes towards a certain product and to line up views and opinion of employees in an organization (Reeves and Harper, 1981).These surveys will thus help researchers understand the behavior of employees in regards to motivation, job satisfaction and grievances in relation to how human resource management is acknowledged in their company and their view towards HRM practices in India generally. However, in addition to helping the researcher with their study, surveys also help these mixed organizations understand the expectations and requirements of their customers as well as employees, develop service or product based on the standards as well as employees, develop service or product based on the standards of their undeniable findings determine how well the organization are satisfying requirements both within the company and outside and finall y establish coatings and access how well to incur these goals. supernumerary care was taken for designing the questionnaire questionnaire focus, questionnaire phraseology, the form of response, and question sequencing and overall presentation. Questionnaire were knowing in order to gain an in depth knowledge of Human Resource activities in organizations and for a remedy of reality.There are factors which have limited to be unaware about the real meaning of Human resource Management and so most were not very co-operative, as they thought that allowing this type of research would identify some of their weaknesses, which would in turn threaten their competitiveness. The results of the questionnaire survey will be analyzed in depth, but it is important to first point some of the methodological problems that were faced during the course of this study.However, it is safe to note that the greatest drawback under the exploratory study lies where the findings may seem credible enough to b e released falsely as conclusions. Further downside includes the tendency to extend the exploratory phase, and inadequate imitation of diversity.A few problems arose during this research imputable to time and distance limit. As all the questionnaires were sent to various parts of India, the time was too short and limited for data gathering, the result of which led to the waiting for more replies from such companies. The distance makes it difficult to keep in touch with the companies in order to get a response, in terms of phone calls, which would be very expensive, and the postal questionnaires are very time consuming.Similarly, there were many companies which did not respond to the questionnaires, in all probability since they did not see Human Resource Management as an constitutional issue in organizational building and strategy. Thus was quite deter for study being carried out. Another probable reason could have been that the companies did not bother posting the questionnaire back at their own expense, or they cogency not have been able to understand the purpose of the study all the way just by looking at the questionnaire and thus they did not tincture like responding.In order to minimize problems of this sort, it is important for the leaders of developing countries, like India, to depart more involved and encourages managers of companies to put forward to the betterment of the Human Resource Management by actively dynamic in the studies like this. This is important as the research is not only academically feasible but also potentially useful to them. It may also be necessary to extend the time allotted for this type of study.At the time of writing up this study, there was in fact a response from only companies, and thus the results from these companies can only be analyzed. The companies that responded were from small size, thus the result of this study may possibly be gender, at the companies were selected at random.Chapter 3 Literature survey Background theoryLiterature ReviewBackground Theory3.1 IntroductionNowadays, it is a common belief in both the business and the academic world that the human resources of an organization can be a source of competitive advantage, provided that the policies for managing people are integrated with strategic business planning and organizational culture (Beer, Spector, Lawrence, Quinn, Mills, Walton, 1985).There is a incredible pressure to an organization to perform their duties properly with the rate of the rapid changes taking place. Accordingly organization change such as association, new ways of handing over works, high changing rate in men and employees capabilities and priorities is observe in the past.Human resource management has stimulate a invasive and influential approach to the management of employment in a wide range of market economies. As a result, the analysis and evaluation of HRM have become major themes in academic, policy and practitioner literatures. Good huma n resource management entails recruiting and hiring the best employees and getting the most out of them through effective training and supervision. Human resource management helps in identifying key skills sets, knowledge and reputed required in the employee. through with(predicate) manpower planning the management determines its human resource needs and implements plans to address them.Any assessment of the emergence of Human Resource Management has, at least, to take account of this changing context of employment and provide some explanations as to the relationships that exits between the contribution HRM has made to some of these changes on the one hand and, on the other hand, the impact that such changes have had on the theory and practice of HRM itself. (Beardwell and Holden, 1994 5). An analysis of data relating to the question of a contact between Strategic Human Resource Management (SHRM) and performance reveals there is uncertainty as to the direction of the link.Can bet ter performing organizations impute their good performance to the quality of their HRM or is the standard of their performance due to other factors? The quality of HRM might be an outcome of performance rather than a contributing factor to that performance. There are questions about the meaning of a strategic approach to HRM. What makes an organizations approach to HRM strategic and is there a satisfactory method of differentiating between an approach to HRM that might be considered strategic or one that is not seen to be strategic?As organization restructure, human resources tend to light in quantities but increase in quality and in their value to organizational effectiveness. invest in the development of these valued resources make sense. close to of the companies in developing countries invest in new technology, new machinery, new plant to increase productivity because better models have been substantial but we need to develop our own better models in human resource areaA st rategy is a course of action. It shows how the enterprise will move from the business it is now to the business it wants to be in, given its opportunities and threats and its upcountry strength and weaknesses. Strategic human resource management means formulating and writ of execution HR systems that cook the employee competencies and behaviors the company requires to achieve its strategic aims. The high-performance work system is designed to maximize the overall quality of human capital throughout the organization, and provides a set of benchmarks against which todays HR manager can compare the structure, content, and efficiency and effectiveness of his or her HR system.increase in international competition due to newly emerging multinationals and divisional organization has given new scope of management particularly Human Resource Management .India has also woken up to the reality that human resources management is key factor for the better performance of an organization . Its is an ultimate goal an ambition to organization to perform their duty perfectly can only seen in developed countries like UK and USA . The organizational change and development have become a part of working life.3.2 Meaning of Human Resource ManagementHR include all the individual employees who contribute to the operations of an organization in any means of form either temporary or permanent basis. (Thompson and Mabey ,1994) It process of getting work done with help of people in efficient manner . It includes planning ,organizing, direct and controlling to make work done till the end task. To manage an organization the common factor taken in consider are goal, limited resource and people.The basic infrastructure of any business is the human capital. Human resource management, therefore, is one of the most important and recognized functions in the industry today. There is more pressure on HR to deliver, develop, and confine employees recognizing the importance of human capital. In todays world of technical advancement, human resource is the only factors, which differentiate the true potential of an organization.Human resource management is the process of coordinating an organizations human resources, or employees to meet organizational goals. Some of the challenges today in human resource management are maintaining a diverse workforce, dealing with major technological changes, keeping up the government regulations, and handling corporate restructuring, and downsizing, Human resource professional deals with areas such asEmployee recruitment and selection proceeding evaluation salary and benefitsProfessional developmentSafety and health calculatelabor relationsThe smooth version of HRM emphasizes the importance of high commitment, oeuvre learning and learned person leadership. Most normative HRM models, whether US or British, preserve that the organizations Human Resource are valued assets, not a variable cost, and emphasize the commitment of employees as a source of competitive advantage (Legge, 1989) By contrast, the difficult version of HRM emphasizes the calculative, quantitative and strategic management aspects of managing the workforce in a balanced way (StoreHuman Resource Management Practices in Indian CompaniesHuman Resource Management Practices in Indian CompaniesAbstractConcepts associated with the resource-based view of the organization are increasingly finding their way into the strategic HRM debate. Human Resource consists of all the individual employees who contribute to the operations of an organization, whether they are employed fulltime, part-time, on a temporary or permanent basis. Human resource Management is more concerned with the people aspect in management.Since management involves getting activities completed well with the help of other people and every organization is made up of people, acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they co ntinue to maintain their commitments to the organization are essential to achieving organization are essential to achieving organizational objectives.This study examines how a developing country, and in particular, some selected Indian companies, construe Human Resource Management and whether it is used as a strategy in managing their organizations. It reflects on how organizations in India are influenced by variables that are different from those of their Western counterpart. In the process, this study analyses the meaning of Human Resource Management, the important of corporate culture and corporate strategy in shaping the organization.A questionnaire analysis of selected Indian companies was carried out, enlightening patterns of similarity and differences arising in its organizations. Following analysis, it was found that India. Is still on the verge of change and is still not capable of fully motivating its people. The process of liberalization and globalization necessitates for focus on the big population and means to utilize it to its fullest potential.Therefore, unless development agencies, government and non-government organizations are involved to penetrate the human resource development strategies, its real benefits will not build up. Consequently, the execution of human resource management requires an insight in to the understanding of its importance to Indian organizations. Hence, the evolution of Indian approach to human resource management will depend on an increase in the applicability of the American, European and Japanese approach to human resource management implemented in these organizations.AcknowledgementChapter 1 Introduction1. Introduction1.1 Main Theme of The TopicThe birth of the Strategic Human Resource Management (Strategic HRM) possibly took place less than 20 years ago with an article titled Human Resources Management A Strategic Perspective (Devanna, Fombrum, Tichy 1981). In such a short time, however, an explosion has occurred i n writing and research on Strategic HRM. In 1996 both Academy of Management Journal and Industrial Relations devote special issues to the topic of HRM practices and firm performance and in 1997 International Journal of Human Resource Management presented a special issue on Strategic HRM and firm performance.The almost exponential growth of interest in understanding the strategic role that HRM can play in firm performance implies a mindset of more, more, more with regard to research on Strategic HRM. However, before we observe the basic call for more, more, more, perhaps we need to step back and reflect on where weve been, where we are, and where we need to be. Human Resource Management (HRM) is a term that, throughout the 1980s and into the 1990s has become more and more known to managers and management students. But a decade of getting used to has done too little to clarify exactly what HRM is, where it differs from traditional Personnel Management, and how important it will be for the future.The growth of HRM as a body of management thought in the 1980s can be connected to a combination of socio-economic factors, in particular, changes in international contest, the reform of industrial sectors and organizations, and the rise of a improved confidence in the power of managers to manage. Under these conditions the contribution of human resources to the success of organizations has been emphasize through the champion of doctrines of brilliance, quality, innovation and entrepreneurship. These developments placed the management of people firmly on the agenda and created the conditions for the emergence of a new-style theory of Personnel Management, bearing the brand HRM.Perhaps, there is an clear uncertainty that HRM can, or ever could, live up to the wider claims of its power to so totally transform the employment relationship that some of the intrinsic problems of managing a unstable set of employee issues can be resolved more satisfactorily than by approaches t hat have grown out of the historical development of Personnel Management. In large part such a reaction can be explained in terms of the gulf that appears to be between Personnel Management on the ground and the rather more theoretical strategic nature of a great deal of the discussion surrounding Human Resource Management.For Managers, already worn out by the waves of change, coping with technical innovation and economic shifts, there is a need to develop the contest necessary to manage their working futures (Morgan, 1988). Not only do they need to understand the nature of these changes, but they need also to make on an international perspective in order to manage in different cultures and with different customs. For many years there has been a general interest in the different production systems and management strategies adopted in Japan, the USA and Europe. Increasingly now attention is also focused on the people management systems, attempting to explain the differences in manage ment technique and policies (Mansfield and Poole, 1981 Jacobs et al., 1987).There is therefore a need to understand how different cultures undertake Human Resource Management for what Doeringer (1981) calls pragmatic reasons. That is, because there are lessons to be learned from other cultures and we need to control for cultural influences when examining solutions. To this can be added the further realistic and critical reasons that managers must now carry out their skills and technique in multicultural context, and achieve objectives internationally.In advanced economies like the United Kingdom and the USA companies, confronted by the Japanese competition and employment strategies coupled with recession and search for excellence have tended to change from Personnel to Human Resource Management or better still strategic Human resource Management. However, there are questions regarding the extent to which this has happened in the developing countries. In answering this question, one must consider the fact that Human Resource Management methods in developing countries will be highly influenced by psycho-economic variables which are considerably different from western countries.Workers are not forced enough and there is not enough stress put on their training, development, participation and the like. Resources are usually directed to serve the ruling best, then to be unfocused towards finding means and methods for better education, health, and safety for the work force. Women in most developing countries are still treated improperly and there is a lot of power distance between the employer and employee. But the future of Human Resource in developing countries is not miserable, as countries like India have started reallocating their resources towards this department and structures and systems are being set up to facilitate this. The biggest challenge for the developing world is therefore, to convert its vast human resource into chance and take them along in their march into the future.1.2 Aims and objectivesAimsTo critically evaluate strategic Human Resource Management practices In Indian Companies.ObjectivesCritically assess and evaluate theories, concepts and models of SHRM given in the literature. To examine the nature of the context of HRM, the problematical nature of organizations in a developing country (like India). To examine the background to the growth of interest in India to HRM and the extent of HRM practice among Indian employers. To analyze the nature of the context of HRM, the problematical nature of organizations in a developing country (like India).Chapter 2 Research MethodologyResearch Design and MethodologyAs I have used a survey-questionnaire approach to gather data. The study is based on two stage sampling design. In the first step, Indian organizations were chosen randomly from the national capital region of India. In the second step, the organizations, top, middle and senior level managers in HR or who were line manage rs were randomly selected to fill in the questionnaires. From this sample of 40 managers a total of 12 questionnaires were filled in.A total of 28 questionnaires returned were either incomplete or the managers refused to oblige. The scope of the study has been limited to managers from the industries in the national capital region of India. The organizations from which the managers responded spanned the multinational companies. Research instruments Human Role Assessment Survey Questionnaire (Conner and Ulrich, 1996) was administered on the sample. Participants were asked to refer to the HR professionals in their business entity and rate the current quality of each activity.This study discusses the methodology and the approach that the researcher followed for the completion of this study. In order for the aims of the project to be fulfilled it is necessary to acquire knowledge of the practices of Human Resource Management within Indian Companies. The research was done with a phenomeno logical approach. It is so called because it is based on the way people experience social phenomena in the world that they live. This method has its own merits and demerits.On one hand it facilitate the understanding of how and why, it make possible for the researcher to be alive to the changes that occur during the research process, and this method is good for understanding social processes. On the other hand there are certain limitations such as, data collection can be time consuming, data analysis is difficult, and the research has to live with the hesitation that clear patterns may not emerge (Saunders, Lewis Thornhill, 1997). The snapshot view was taken for the companies being analyzed through questionnaires and the literature looked into the development of the HRM techniques through time in the developing countries with special emphasis on India.In order to talk to the objectives of the research, secondary information was collected from books, journals, magazines and newspape rs, etc. the research tries to consider the performing areas upon which any form of strategic HRM depends, it describes the current state of the Human Resource Management and Personnel Management in India and tries to evaluate its level of operation to determine whether it is a strategic tool for shaping corporate strategy. This study is thus, descriptive as well as exploratory and concentrates more on qualitative approach. Basically there are two types of research methods, quantitative and qualitative.Quantitative research uses technique based on the principles of physical sciences. Statistical methods are used then to test fixed theory. Quantitative research is also prepared to provide a linear progress from problem to solution. According to Smith (1988) the scientist spends time observing the actions and groups of people. Thus the researchers simply observe without making and value judgments after which the researcher explains the observed behavior.The qualitative data is based o n meanings expressed through word. . It results in collection of non-standardized data that requires classification, and is analyzed through the use of conceptualization. Quantitative research then goes from observation to theory, then to testing. However, according to motley (1986) this order is often violated and studies are attacked because they do not follow the conventional chain of events.He goes on further to criticize studies for lacking a strong theoretical basis from which to operate. Yet, quantitative researchers fail to realize the position they put themselves in when they do this. Quantitative research however comes with advantages and disadvantages. Its main advantage is that it gives out quantifiable data, which needs to be generalized sometimes. Also, its greater weakness is that it does not account for human behavior, which is not quantifiable, but significant to find the objectives of the research.In compare, qualitative methods are entirely different, reluctant to more on analysis and are less prone to try and measure every aspect of the study. Qualitative research tends to produce rich intense data, relating to small numbers of people, as opposed to vast standardized data relating to large numbers. Qualitative studies are mainly about peoples subjective interpretations of complex situations. Burrell and Morgan (1979) call this the interpretive paradigm. There is little need to quantifying every detail in qualitative research because its not worried about prediction and control (Lindlof, 1995).Nonetheless, this does not mean that qualitative research is not practical. It includes the understanding of the researcher and the subjects of the research. Researchers using the qualitative approach make systematic observations and work to say something meaningful about their chosen topic doing it in a particular way (Buttny, 1993). However, its arguable that qualitative methods are more effective when trying to research relationships between people in organizations (Walker, 1985 p.3)There was a limitation as qualitative data analysis is very monotonous and conclusion from such data is subject to debate and might be unfair by individuals viewpoint (Gill and Johnson, 1997). Questionnaires (appendix 1) were used for collecting the primary data from the companies. The company were selected in India random and questionnaires were sent to them to identify the extent to which Human Resource Management is practiced and its perceived usefulness in improving the efficiency of organizations.Despite, their difference research approaches qualitative and quantitative research seen to share similar characteristics. Both of them use a structure which allows researchers to make performance. Furthermore, they both use interpretation to observe initial results of a course of research. However, qualitative differs greatly in relation to data gathering. Nevertheless, the analysis of qualitative data is highly personalized. Obviously the analysis o f the researcher is extremely likely personalized. Obviously the analysis of the researcher is extremely likely to affect the outcome of the researcher. This raises the question of validity and reliability in qualitative research.The basis for these differences lies in the purpose of the research. Quantitative research is intended to be in charge of the topic being studied enabling the researcher to know the content of his or her data before it is even collected.Researchers undergoing qualitative approach of research do not worry with every measurable detail. Fundamentally, qualitative researchers seek to preserve the form and content of human behavior and analyze its qualities, rather than subject it to mathematical or formal transformations (Lindlof, 1995). Basically, qualitative researchers strive for an agreement on phenomenon.According to Kaplan and Maxwell (1994) the goal for understanding a phenomenon from the point of view of the participants is largely lost when textual dat a is quantified. Thus its come be seen that qualitative methods rise above most of the shortcomings of quantitative methods. Qualitative research strives to bring depth to a phenomenon that quantitative methods lack.Collection of DataSecondary DataIn order to address the objectives of the research, secondary data was collected from books, journals, magazines, newspapers, embassies etc. Secondary data is information which has been collected, collated and analyzed by others for other purposes, while primary data is information collected as part of a particular research because it is considered relevant to the study and research problem (Ghauri et al, 199554-57, Riley et al 2000107).In addition, the following secondary sources that can also be important for any kind of research including the researchers study can also come in the form of Central and local government studies and reports, census reports, State budgets, rules on international trade regarding imports and exports, and polic ies on the foreign direct investment.Studies and reports of institutions and departments such as the central bureau of statistics, universities, telecommunications departments, marketing and other research institutes, chambers of commerce and foreign missions such as embassies, trade centers and consulates.Academic as well as organizational journals and newsletters pertinent to the problem area. In many countries, different branch organizations publish journals on statistics regarding their own industry, the development of a particular discipline or problem area. Textbooks and other published material directly or indirectly related to the problem area.And lastly, theses and reports written by other students in our own university and in other schools and universities are the best guide line for the student. Many schools keep an up-to-date record of all these written in different disciplines. This is perhaps the most important secondary source at the earlier stages of our research pro cess. They provide us with insight not only into our problem area, but also into the other sources mentioned above.The reason for using secondary data is because its very advantageous in terms of saving time and money. It also not only helps me to prepare and understand the research problem better, but it also extends the base for which scientific conclusions can be drawn. Another advantage of consulting secondary data is that it suggests suitable methods or data to handle a particular research problem. According to Churchill (1987181) Do not bypass secondary data. Begin with secondary data, and only when the secondary data exhausted or show retreating returns, proceeds to primary data.In addition to secondary data, primary data is equally essential for more insight into the company being researched on. There are several choices regarding the means of collecting primary data. Usually, this includes observations which entails listening and watching other peoples behavior in a way tha t allows some type of analytical interpretation used to collect first-hand information in a natural setting to interpret and understand the observed behavior or situation more accurately surveys (questionnaires) and interviews which are the most popular data collection method in business studies.Primary DataThe researcher also collected primary data in addition to the secondary data in forms of case studies, unstructured interviews, and participant observation with few respondents. Other includes observations, surveys (questionnaires) and interviews by mail, phone, and personal contact. Surveys and questionnaires are the most popular data collection method in business studies.The most valid research method for the major part of the study was considered to be the interview. Interviews can be differentiated according to the level of structure and standardization adopted a structured interview being one where a predetermined and standardized or a formal set of questions is adhered to, an unstructured interview does not follow any prearranged process a semi-structured interview will normally contain an element of both.The advantage of a semi-structured interview is that it enables a disciplined approach to be taken without constraining or inhibiting the responses by the rigidity imposed by a totally structured interview (Elliott and Christopher 1973). Chisnall (1986) stressed that the interaction between the interviewer and the respondent contributes greatly to the success of the interviewer. The intellectual atmosphere of an interview is at least as important as the mechanics of the interview processes.However with this study, the researchers also focused on using questionnaires which are said to be descriptive and analytical as my form of primary data to gain information related to India , initially in Indian organization to identify the extent of which Human Resource Management is practiced and its perceived usefulness in improving the efficiency of Keane and o ther related organizations. An experience survey approach which is a qualitative information collection technique used in marketing was is a qualitative information collection technique used in marketing was in attempts to tap the knowledge and experience survey approach which is a qualitative information collection technique used in marketing was used in attempts to tap the knowledge and experience of those familiar with the general subject being investigated in addition to identifying the current phenomena.Surveys involve questions of some sort and are important for collecting peoples opinions and needs. It also helped the researcher acquire information quickly with relatively minimal expense and effort from a relatively large number of respondents. The qualitative research is often focused on social process. It is thus common in social and behavioral sciences and those who want to understand human behaviors and functions suitable for studying organizations, groups and individuals (Strauss and Corbin, 1990). Furthermore, descriptive surveys are often used to obtain consumer attitudes towards a certain product and to ascertain views and opinion of employees in an organization (Reeves and Harper, 1981).These surveys will thus help researchers understand the behavior of employees in regards to motivation, job satisfaction and grievances in relation to how human resource management is acknowledged in their company and their view towards HRM practices in India generally. However, in addition to helping the researcher with their study, surveys also help these various organizations understand the expectations and requirements of their customers as well as employees, develop service or product based on the standards as well as employees, develop service or product based on the standards of their required findings determine how well the organization are satisfying requirements both within the company and outside and finally establish goals and access how well to meet these goals.Special care was taken for designing the questionnaire questionnaire focus, questionnaire phraseology, the form of response, and question sequencing and overall presentation. Questionnaire were designed in order to gain an in depth knowledge of Human Resource activities in organizations and for a remedy of reality.There are factors which have limited to be unaware about the real meaning of Human resource Management and so most were not very co-operative, as they thought that allowing this type of research would identify some of their weaknesses, which would in turn threaten their competitiveness. The results of the questionnaire survey will be analyzed in depth, but it is important to first point some of the methodological problems that were faced during the course of this study.However, it is safe to note that the greatest drawback under the exploratory study lies where the findings may seem credible enough to be released incorrectly as conclusions. Further downside in cludes the tendency to extend the exploratory phase, and inadequate representation of diversity.A few problems arose during this research due to time and distance limit. As all the questionnaires were sent to various parts of India, the time was too short and limited for data gathering, the result of which led to the waiting for more replies from such companies. The distance makes it difficult to keep in touch with the companies in order to get a response, in terms of phone calls, which would be very expensive, and the postal questionnaires are very time consuming.Similarly, there were many companies which did not respond to the questionnaires, probably since they did not see Human Resource Management as an integral issue in organizational building and strategy. Thus was quite discouraging for study being carried out. Another probable reason could have been that the companies did not bother posting the questionnaire back at their own expense, or they might not have been able to unde rstand the purpose of the study clearly just by looking at the questionnaire and thus they did not feel like responding.In order to minimize problems of this sort, it is important for the leaders of developing countries, like India, to become more involved and encourages managers of companies to contribute to the betterment of the Human Resource Management by actively participating in the studies like this. This is important as the research is not only academically viable but also potentially useful to them. It may also be necessary to extend the time allotted for this type of study.At the time of writing up this study, there was in fact a response from only companies, and thus the results from these companies can only be analyzed. The companies that responded were from small size, thus the result of this study may possibly be gender, at the companies were selected at random.Chapter 3 Literature Review Background TheoryLiterature ReviewBackground Theory3.1 IntroductionNowadays, it is a common belief in both the business and the academic world that the human resources of an organization can be a source of competitive advantage, provided that the policies for managing people are integrated with strategic business planning and organizational culture (Beer, Spector, Lawrence, Quinn, Mills, Walton, 1985).There is a incredible pressure to an organization to perform their duties properly with the rate of the rapid changes taking place. Accordingly organization change such as association, new ways of handing over works, high changing rate in workforce and employees capabilities and priorities is observe in the past.Human resource management has become a invasive and influential approach to the management of employment in a wide range of market economies. As a result, the analysis and evaluation of HRM have become major themes in academic, policy and practitioner literatures. Good human resource management entails recruiting and hiring the best employees and getting the most out of them through effective training and supervision. Human resource management helps in identifying key skills sets, knowledge and valued required in the employee. Through manpower planning the management determines its human resource needs and implements plans to address them.Any assessment of the emergence of Human Resource Management has, at least, to take account of this changing context of employment and provide some explanations as to the relationships that exits between the contribution HRM has made to some of these changes on the one hand and, on the other hand, the impact that such changes have had on the theory and practice of HRM itself. (Beardwell and Holden, 1994 5). An analysis of data relating to the question of a link between Strategic Human Resource Management (SHRM) and performance reveals there is uncertainty as to the direction of the link.Can better performing organizations attribute their good performance to the quality of their HRM or is the standa rd of their performance due to other factors? The quality of HRM might be an outcome of performance rather than a contributing factor to that performance. There are questions about the meaning of a strategic approach to HRM. What makes an organizations approach to HRM strategic and is there a satisfactory method of differentiating between an approach to HRM that might be considered strategic or one that is not seen to be strategic?As organization restructure, human resources tend to decrease in quantities but increase in quality and in their value to organizational effectiveness. Investing in the development of these valued resources make sense. Most of the companies in developing countries invest in new technology, new machinery, new plant to increase productivity because better models have been developed but we need to develop our own better models in human resource areaA strategy is a course of action. It shows how the enterprise will move from the business it is now to the busin ess it wants to be in, given its opportunities and threats and its internal strength and weaknesses. Strategic human resource management means formulating and executing HR systems that produce the employee competencies and behaviors the company requires to achieve its strategic aims. The high-performance work system is designed to maximize the overall quality of human capital throughout the organization, and provides a set of benchmarks against which todays HR manager can compare the structure, content, and efficiency and effectiveness of his or her HR system.Increased in international competition due to newly emerging multinationals and divisional organization has given new scope of management particularly Human Resource Management .India has also woken up to the reality that human resources management is key factor for the better performance of an organization . Its is an ultimate goal an ambition to organization to perform their duty perfectly can only seen in developed countries like UK and USA . The organizational change and development have become a part of working life.3.2 Meaning of Human Resource ManagementHR include all the individual employees who contribute to the operations of an organization in any means of form either temporary or permanent basis. (Thompson and Mabey ,1994) It process of getting work done with help of people in efficient manner . It includes planning ,organizing, leading and controlling to make work done till the end task. To manage an organization the common factor taken in consider are goal, limited resource and people.The basic infrastructure of any business is the human capital. Human resource management, therefore, is one of the most important and recognized functions in the industry today. There is more pressure on HR to deliver, develop, and retain employees recognizing the importance of human capital. In todays world of technological advancement, human resource is the only factors, which differentiate the true potential of an organization.Human resource management is the process of coordinating an organizations human resources, or employees to meet organizational goals. Some of the challenges today in human resource management are maintaining a diverse workforce, dealing with major technological changes, keeping up the government regulations, and handling corporate restructuring, and downsizing, Human resource professional deals with areas such asEmployee recruitment and selectionPerformance evaluationCompensation and benefitsProfessional developmentSafety and healthForecastinglabor relationsThe smooth version of HRM emphasizes the importance of high commitment, workplace learning and enlightened leadership. Most normative HRM models, whether US or British, assert that the organizations Human Resource are valued assets, not a variable cost, and emphasize the commitment of employees as a source of competitive advantage (Legge, 1989) By contrast, the difficult version of HRM emphasizes the calculativ e, quantitative and strategic management aspects of managing the workforce in a balanced way (Store