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HR Practices in India

Evolution of the concept of HRM: Past, present and future Paramjit Sujlana

Evolution of the Personnel Function


(Source: V.S.P.Rao)

The Commodity concept- Labor was regarded as a commodity to be bought and sold The FoP concept- Labor is like any oher Fop. Workers are like machine tools. The Goodwill concept- welfare measures like safety, first aid, lunch room etc were being provided. The Paternalistic concept- meeting the requirements of employees like

Evolution of the Personnel Function


The Humanitarian concept- social, psychological needs of workers became important. Organization was considered as a social system. The HR concept- employees are the most valuable assets. Realise organizational goals by satisfying employees The Emerging concept- employees should be accepted as partners. Feeling of belonging towards the organization.

Growth of HR in India
Early phase: HR practices have been
noticed from as early as 1800 B.C.

Legal Phase: 1920 onwards. The


appointment of labor and welfare officers became compulsory.

Welfare Phase: during the 1960s. Legalistic


functions gave way to harmonious relations.

Development Phase: 1970 onwards. The


focus shifted to developmental aspects. HRD became a focal point. IIPM and NILM emerged.

Changing Scenario
Period 1920-30 Emphasis Welfare Management, Paternalistic practices Status Clerical Roles Welfare administrator Policeman

1940-60

Expanding the role to Administrative Appraiser, Advisor, cover labor, welfare, IR Mediator, Legal and personnel Advisor, Fire administration Fighting Efficiency, effectiveness, Developmental Change agent, human values, dignity, Integrator, Trainer, aspirations Educator Incremental productivity, gains through human assets Proactive, growth oriented Developer, Counselor, Coach, Mentor, Problem Solver.

1970-80

1990 onwards

Shifts in HRM in India


Traditional HR Practices in India Emerging HR Practices in India

Administrative role Reactive Separate, isolated from company mission Production focus Individuals encouraged People as expenses

Strategic role Proactive Key part in organizational mission Service focus Cross-functional teams, teamwork encouraged People as key investments.

Future of HRM: Things that could influence the future of current HR practices
The current economic scenario. Globalization. Employee expectations. Technological changes. Life-style changes. Environmental changes. HR managers moving up the organizational structure.

Current HR Practices in India


HR managers are scrambling for workers and spending sleepless nights, worrying over compensation, recruitment and retention. Worse, almost no employee at the top 10 companies says that she is happy with the money she's making or the career counseling she's getting at her company. It includes Infosys employees, who have been promised Rs 126 crore in bonuses this year.

Current HR Practices in India


As the economy started surging towards knowledge industries (IT and financial services being just two of them), the resource that HR managers came to deal with changed. Unlike bluecollar workers, software coders and investment analysts didn't come by the dozens ; to woo them, they needed to be offered stock options, not to mention high salaries. Since the wealth they were creating was phenomenal, other employers were always willing to better the deal to lure them away. One thing led to another-or, rather, to in-house valet services, free massages, gyms and crchesand pretty soon, these were standard fare.

Current HR Practices in India


Did you know that you can order at least six different cuisines on Infosys' campus in Bangalore? Or that you needn't even come to office every day but work from home if you are at Sapient? Or that at MindTree, you can question your superiors without fear of getting sacked, and that at Satyam Computer, not just your birthdays, but those of your family members are remembered and celebrated?

Current HR Practices in India


The HR manager of today has become tech savvy. There's a phenomenal amount of information technology that is being used to manage human resources. Infosys, for example, will have 70,000 employees by the end of this fiscal.
BUSINESS WEEK OCTOBER 2006

Best employers of 2005, 2006 & 2007


2005 1.INFOSYS 2. SASKEN 3. GENPACT 4. HCL COMNET 5. NTPC 6. HSBC 7. SAPIENT 8. COVANSYS 9. HDFC BANK 10. MIND TREE 2006 1.INFOSYS 2.MIND TREE 3.SATYAM 4.DR REDDYS LABS 5.SAPIENT 6.AGILENT TECHNOLOGIES 7.JOHNSON & JOHNSON 8.COVANSYS 9.HCL COMNET 10.HSBC 2007 1.MICROSOFT 2.MIND TREE CONSULTING 3.JOHNSON & JOHNSON 4.SAPIENT 5.INFOSYS 6.I GATE 7. AGILENT TECHNOLOGIES 8.HCL COMNET 9. ACCENTURE 10.DR REDDYS LABS

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