PRESENTATION ON

HUMAN RESOURCEMANAGEMENT PRACTICES

IN INDIA
Prepared By:
Amit Kumar
MBA 2
nd
sem

Staffing Practices
Resumes seek strong educational background.

Employee referrals (predominantly used for middle and
senior management).

Succession planning (predominantly used for middle and
senior management).

Elaborate employment tests related to the job, especially at
entry level.

E-recruitment: Naukri.com was the first e-portal
established in 1998 (naukri means job in Hindi ).

2
Staffing Practices

Newspaper advertisements are used to brand the company
to potential applicants.

Newspaper advertisements will specify age and gender
requirements.

Personal questions will be asked in interviews/resumes
about:

Age
Marital status
Family plans (women planning to start a family)
Family background
Caste background
Photos to be included
Verification of educational certificates

3
Training Practices
Training (future orientation):
Education is extremely valued, and training is an
extension of it.
Entry point training programs (3 to12 months of
orientation).
Ongoing training programs.
Development programs (promotions involve training).
In-house training centers are a common feature in
Indian organizations.
Deductive learning style in training: Known as top-
down approach where learning principles start with
general concepts and move toward specific
application.

4
Performance Appraisal
Cultural dimensions of collectivism and power distance
make objective appraisals a challenge.

Supervisors and subordinates develop close relationships.
Organizational loyalty is as important as work performance.
Employee promotions are frequently based on seniority.

Annual performance appraisals.
Supervisors provide performance ratings that are
frequently inflated due to personal relationships.
Employment at will does not exist in India. Employment
termination carries a social stigma.


Compensation and Benefits

In addition to a base salary, compensation includes:
House rent allowance (HRA*).
Medical allowance.
Dearness allowance (DA*).
Leave travel allowance (LTA*).
Commuter allowance.
* These allowances are frequently referred by their acronyms

Several categories of leave (vacation) exist:
Sick leave: 7 days (medical certificate required).
Casual leave: 7 days (for personal and family emergencies,
requires prior permission of boss). Employees can take
maximum 2 days at a time
Annual leave: 3 weeks (after one year of employment).
Federal holidays: About 20 days.

Compensation and Benefits

Retirement age:
55-60 years (private sector);.
60 years (public sector).
Retirement Benefits: Employees receive two lump-sum payments
when they retire:
Provident Fund (similar to 401(k))
Typical contributions: 10-12 percent of base salary
(employer and employee).
Payable on retirement, voluntary separation, death.

Gratuity
Only employer contributes (15 days salary per year of
service).
Tax-exempt for employees.
Payable on retirement, voluntary separation, death.


Compensation and Benefits
Organizations are seen as an extension of the family.

Provide both short-term and long-term personal loans.

Personal loans for housing, car, home maintenance and family
emergencies.

Loan amounts vary by position and level in organization.

All employees after their probation (confirmation) period are
eligible.

Many medium and large organizations have cafeterias with
subsidized lunch facilities.


Compensation and Benefits
Executives receive special benefits to reflect status such as:

Club memberships.
Overseas training.
Company housing.
Company cars.
Provided with drivers.
International cars.
Operational and maintenance costs.
Phone bill reimbursements.
Organizations provide business and cell phones.


THANK YOU