International Human Resource Management Essay Example | Topics and Well Written Essays - 3500 words

International Human Resource Management - Essay Example The workforces of firms are seen as the main resources that enable competitive advantage. The practices of Human Resource Management (HRM) have led to dramatic developments in developed countries such as the United Kingdom and the United States of America, as well as many developing economies such as India (Budhwar and Khatri, 2001). The Indian economy is characterized by huge growth in Foreign Direct Investments (FDI) made by multinational corporations entering different sectors of the economy. This economic status requires companies that tend to invest in the Indian economy to have special and modernized people management practices. Human Resource Management (HRM) systems and practices may vary from one country to another, as cultural and national factors influence the ways that human resources are managed across the globe. In this paper I will illustrate the distinguishing features of various HRM systems that Indian people practice in their organizations in terms of recruitment an d retention, training and development, and performance and reward management. Challenges facing Indian HR practices will also be examined. 2. Culture in India Culture in India is predominantly affected by the following factors: 2.1 Power distance Many Indians believe that power and wealth are unequally distributed within the country and that this situation is badly in need of change. Strong organizational hierarchy leads to the occurrence of both respected and disregarded positions among employees. The caste system, which is largely accepted in India, cannot be changed, although barriers between castes are shrinking and ‘untouchability’ was declared illegal in 1949. Caste is thought to be determined by behavior in former lives and is therefore accepted as fate. This affects the entire life of Indians, including their social status and profession (Khan-Panni and Swallow, 2009 {in Hollinshead 2009}). 2.2 Uncertainty avoidance In India there is a relatively low level of un certainty compared to other countries. Structures and traditions play key roles in reducing uncertainty, as Indians respect traditions, caste and heritage; elements that determine their role in society (Khan- Panni and Swallow, ibid {in Hollinshead 2