Essay: Human Resource Management in the India and UK

INTERNATIONAL HUMAN RESOURCE MANAGEMENT: Human Resource Management in the India and UK
Background of the Essay
In this essay. I am selecting a topic which comes under International Human Resource Management. This essay will focus on human resource management practices in India and the UK. India is one of the fastest growing economy in the world. It has one of the second largest population in the world. It is estimated that 83% of the population will be in the 15-59 age group by 2025 which will mean that India will have 25% of the world labour market and its per capita is predicted to increase by $1400. When looking at the UK labour market, there are 32.29 million people at work. The employment rate of people ages between 16 to 64 years was 75.5%. After the recession, labour productivity still has not recovered to its pre-recession growth rate. The UK’s exit from he EU is likely to have large effects on its labour market, but these effects are not yet in the statistics. After the recession, the UK labour market suffered less and recovered better from the financial crisis of 2008. There are Indian HR practices are seen to have a similarity due to the historic relationship of the two countries. It can be seen from various studies that the Indian and UK HR practices have similarities, but they are also different due to the socio-economic influences seen in both the countries.
HRM and IHRM
Human Resource Management is the term that can be described as a formal system which is devised for the management of people within an organisation. The Human Resource Management in a company aminy carries out functions in these three major areas or an organisation which can be categorised as staffing, employee compensation and benefits, and designating work. Human Resource Management is a key function of businesses as its goal is to maximise the productivity of the organisation by optimising the effectiveness of the employees. The mission of human resource management is organisations is to acquire, develop and retain talent. Align the work force with the business and turn it in to an excellent contributor to the business. Hiring the right people for the company and training them well is often considered to be the between scratching out the barest of livelihoods and steady business growth. Human resource is the most important asset of the organisation and a business cannot be successful without managing this resource effectively. The human resource managers must ensure that the personnel policies and procedures of the enterprises are closely linked with and make a major contribution to the achievement of corporate objectives and strategic plans. While it is the responsibility of the HR department of the company to secure, guide and develop employees whose talents and desires are compatible with the operating needs and future goals of the company.
Globalisation has had a profound effect on HRM around the world and has affected different types of organisation. Globalisation has enabled the free floe of technology and human resource across national borders and it has made the global economy dynamic and has made the business landscape everchanging. Globalisation has been enabled by the development of communication technology which has brought the people around the world in to a single community. This ‘coming together’ has affected the way in which HRM operates as companies do not have to rely on a small limited market to find the right employees who are needed to meet the global challenge but today they can recruit employees from around the world. Nowadays, the HR managers must be mindful of the international employment laws which can differ from one country to another. MNC’s today must outsource employees from a different market which can be totally different from the home market when considering the culture language. Due to the rise in information technology especially when considering the companies in the technology sector, they have employees working ‘on-site’ at a client’s location which is completely new to them. Globalisation has also given rise to corporate social responsibilities and the implications are different in different markets. New practices such as flexible working hours have emerged which is a very important retention initiative which allow the company to attract talented employees from different markets. There has been increase in the part time and temporary work among women, elderly and students. Employees must be trained in emerging and latest technologies such as SAP and Peoplesoft. Companies avail certification to employees in the form of six sigma which allow employees to manage businesses on an international platform. It can be also seen that there is a changing perspective among subordinates and business partner.
The above-mentioned factors have led to the rise in International Human Resource Management. Performing HRM functions across the globe for the organisation. International Human Resource Management can be defined as the world-wide management of the human resources. It involves the process of sourcing, allocating and effectively utilising their skills, knowledge, ideas, plan and perspectives in responding to the TQM. The process of procuring, allocating and effectively utilising the human resources in an international business is called International Human Resource Management or IHRM. The basic purpose of IHRM is to enable the firm, the multinational corporations to be successful globally. There are basically three dimensions in IHRM which are HR activities, types of employees and types of countries. Another important aspect to be considered is that there are three national or country categories which are involved in IHRM which are the firstly, the host country where the subsidiary may be located, secondly, the home country where the company has its head quarters and finally, the other countries which may be source of labour and finance.
HRM in the UK
Most people who work in the UK are employees with a contract of employment. According to the law, this must have certain terms and it can usually only to be changed with your agreement. All employees having a contract of employment are entitled to a written statement of the main terms within two months of starting work. The contract is applied as soon as you start and then they are bound by this term until properly ended. This shows are the HR practices in the UK are highly structured. It can be seen in the UK companies that there can be a lack of trust on the managers. The attitude of the British employees is significantly more negative than those of their counterparts in India with fewer than a third expressing trust and confidence in their managers. All workers in the UK aged over 16 are legally entitled to be paid a minimum amount per hour. This is regardless of the kind of work they do or size and type of the company. There are different level of national minimum wages depending on the age of the worker. The workers are also protected by quality and anti-discrimination laws. Performance management is a big part of the HR practices in the UK as 80% of the companies in the country use them and it is measured based on the competency and accomplishment against the goals and objectives. The results of the performance appraisals and used in the case of salary increase, bonus and promotion.
HRM in India
There are various studies which have been conducted with the respect to understanding the approach to HR in India. The influence of the British Colonial rule is there on the HR practices in India and it has also mirrored in the shift from personnel management to a more strategic role adopted by HR. When reviewing the HR practices in India, some of the distinctive features which can be seen is that when applying for a job, the candidate needs to show strong educational background in the resume. Employee referrals can be an advantage preferably from a middle level or senior level management. There is a high level of succession planning which seen in the middle and senior level management. There will elaborate employment tests which is related to the job especially in entry level jobs. There is an increased importance to e-recruitment websites such Naukri.com. Newspaper advertisements are used to brand the company to potential applicants. The job advertisements seen in newspapers will specify the preferred age and gender requirements of the gender. The applicants can expect questions on age, marital status, family plans such as whether the women planning to start a family, family backgrounds, caste backgrounds, photos to be included and the verification of educational certificates. Long term orientation is focus in Indian companies and education is extremely valued. The entry level trainees go through 3 to 12 months of orientation and in-house training centres are feature of Indian companies. Cultural dimensions of collectivism and power distance relationship make objective appraisals a challenge. This is because the supervisors and subordinates can create a close relationship and the organisational loyalty is as important to work performance. In Indian organisations, employee promotions are frequent based on seniority. Annual performance appraisals are conducted but there is a tendency for supervisors to provide performance ratings which are frequently inflated due to personal relationships. Employment at will does not exist in India and employment termination is a social stigma in India.
Discussions and Evaluation
The future success of the company has been dependent on the ability of the HR managers to recruit and manage a diverse body of talent which can bring innovative ideas. Perspectives and views to their work. It has become imperative for HR managers to undergo culturally based Human Resource training which are important to motivate a group of professionals who are highly qualified but are culturally diverse. The similarity can be seen in the selection of HR practices to promote innovation in organisations with practices which include training and development, performance appraisals, staff suggestions schemes. But the HR practices in India remain less formal and less structures when compared to that of Britain’s. This is because of the complexities in the labour relations and importance of caste networks and political connections. Indian companies are seen to have a high turnover ratio and the demand for high skilled labour outstrips supply which increase retention costs and the companies are more focused on talent development programmes. Most of the studies in this respect show that there is a strong influence of socio cultural, political and economic factors which affect the HRM policies in India firms. On many occasions the decisions on promotion, reward and selection are made more in terms of the socio-political connections or familial connections rather than the competence. When looking at the personalised relationship in Indian firms it is influenced by high collectivism and high-power distance which favour personalised and familial relationships over work outcomes. The hierarchical nature of the Indian society might also contribute to the continuation of such practices as it is harder to challenge the authority of the decision makers.
Conclusion
However, like what is being seen in the UK HR landscape, there is; increasing use of social media which has been developed as a predominant tool for recruitment screening. The indian companies are also beginning to focus on leadership development, this is because of the fast development of companies in the country and shortage leaders. With the aging of the population and due to the phenomenon of demographic dividend occurring. India has many young people looking for jobs. And with the present trends of affirmative action and globalisation, organisations are becoming more socially conscious that they should discriminate applicants based on these factors such as caste, gender and age. But despite all these changes, the Indian HR managers are impacted by the diverse demographic, languages and cultural background of the employees from within the country. Also, in comparison with the labour laws of the west, it can be said to be very conservative and in theory they should be giving a lot of protection to the employees of the company. When a foreign national company enter in to India, it should take in to consideration which part of the country they are basing their business and recruit accordingly as employees in different parts of the country are different.
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