ADELIA SANDRA JULIAN SAFITRI

MB-2B / 4.51.19.1.01

BUILDING OF HRM IN INDIAN MANAGEMENT

“So in India they believe that the most important thing in building a system is by improving the quality of
the software or increasing the capability of its human resources, making hardware is easy,” said Dubes
Pradeep Kumar.

Talented human resources (HR) have a big role to play in the progress of India. This quality of human
resources is one of the results of India’s commitment to developing higher education. The country with
the second largest population in the world does not hesitate to send students to various countries
around the world to be withdrawn later.

Traditional Indian culture has a relatively strict social hierarchy. From an early age, children are taught
about their roles and positions in society. This tradition is strengthened by the belief in gods and spirits
who are considered to be important and inseparable from their lives. In the caste system in India, social
stratification and restrictions on social life in the Indian subcontinent are defined. Social classes are
formed by thousands of hereditary groups practicing endogamy, commonly known as jati or caste.

Indians place a high value on traditional kinship values. However, more often than not, houses in urban
areas are only occupied by the nuclear family. This is due to economic and social limitations in living
together in a large family. In rural areas it is still common to find family members of three to four
generations living under one roof. Problems that arise in the family are often resolved in a patriarchal
manner. The vast majority of Indians marry after being arranged by their parents or elder family
members, but with the consent of the groom and the bride. Marriage is seen as a lifelong bond, and the
divorce rate is very low. However early marriage is still a common tradition. Half on India’s female
population is married before reaching the age of 18 which is the legal adult age.

According to the labor market review, in standard numbers, the workers employed in India are very
abundant. Out of a population of 1.1 billion people, about 400 million do not work in agriculture. This
large population is matched by a large educational network of more than 10,000 colleges. India has
more than 25 million tertiary graduates, of whom 7.5 million are in science and engineering. It turns out
about 2.5 million new graduates each year. However, this does not mean that skilled labor is available. A
2007 McKinsey survey found only 25% of trained Indian engineers and 15% of finance and accounting
degree holders were deemed eligible to work for multinational companies. Experienced managerial and
technical personnel are in high demand as a result. Salaries are rising sharply every year, and job-
hopping and the hunt are common. Salaries are still much smaller than in the US as a whole, although in
some industries, such as IT, salaries for top positions can be in the US salary range.

Methods and Trends of Recruitments. Various recruitment methods are used in Indian HR practice.
Much of the recruitment is still done informally, below management level, do interview, as usual. In
specialties such as finance, engineering, and marketing, the recruitment process is often used to search
for entry-level candidate. Advertisements and recruitment agencies can be effective and it is even
necessary to recruit for managerial positions for jobs on internet sites. Such as Monsterindia.com and
Naukri.com also become a wider use.
 ADELIA SANDRA JULIAN SAFITRI
MB-2B / 4.51.19.1.01

The talent shortage is severe enough to have several companies in India re-evaluate their criteria for
selecting employees. For example, ICICI, India’s largest private bank-sector bank, started a pilot officer
program in 2007, in which they accepted 1,000 candidates without strong English language skills. ICICI
has decided that excessive emphasis on English language skills hinders their ability to find the right
candidate, as most of their business is not conducted in English. Hence, the new program opens the
door to large and ambitious supply of hardworking India that will not be previously considered. These
employees are given one additional year of training before starting work.

Indian companies are now doing signing bonuses for wider range of employees. Previously, it was
usually senior managers and MBA hires who received signing bonuses. Now, multinational companies
such as Google India and Accenture India are increasingly providing signing bonuses to attract junior
level staff.

In standard Indian practice, the employment agreement will come in the form of a letter of
appointment, which serves as a binding contract, although legal previsions take precedence. The letter
will cover terms such as salary, start date, position, place of employment, transfers, ethics,
confidentiality, probation, and termination. Termination in India is heavily influenced. By law, a number
of procedures must be followed, including just cause, notification, and staff arbitration. These
procedures do not apply to managerial. Without proper procedures, shooting can be challenged in
court. This means interruptions must be carried errors are accepted as a reason for termination,
inefficiencies are not always accepted.

Next discussion is the types of employees in India. Expatriate employees are less common in India that
in most Asian countries. Among the industries that most often recruit expats are medicine, hospitality
and aviation.

Almost all Indians educated in the Europe previously preferred to continue working there after
graduation due to greater job opportunities and living standards. However, in 2007, India’s economy
and success rose to a more attractive level of compensation abroad India returned to their home
country. In addition, some Indians have returned from the Europe increasing due to difficulties in
obtaining prominent US work permits. Which industries are returning now include more finance,
engineering, pharmaceuticals, IT, and Business Process Outsourcing (BPO).

Indian employees are usually analytical, hardworking and open to relocation. On the other hand, their
written communication skills often need improvement. Some outings with coworkers and superiors
seem normal. In evaluating a job offer, they will consider factors such as responsibilities, promotion
prospects, company reputation and profitability, title, travel, and the possibility of going abroad.
Multinational companies usually look more prestigious, but some domestic companies now offer
competitive salaries to lure over the talents of multinational companies, especially in the financial
industry.