Human Resource Management in Developing Countries: Introduction

Abstract

Concepts 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 continue 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.

1. Introduction

1.1 Main Theme of The Topic

The 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 in 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 we’ve been, where we are, and where we need to be. Human Resource Management (HRM) is a term that, throughout the 1980’s and into the 1990’s 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 1980’s 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 that 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 management 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 objectives

Aims

To critically evaluate strategic Human Resource Management practices In Indian Companies.

Objectives

Critically 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).