Comprehensive Analysis of the Indian HRM System and Issues

This report provides a comprehensive analysis of the Human Resource Management (HRM) system in India, focusing on its context within the IT and BPO sectors. The report begins by examining the external factors driving the Indian HRM system, including technological innovations, economic reforms, and social and economic contexts like the caste system. It then evaluates the internal context, including institutional and cultural factors that influence HRM practices. The analysis delves into critical HR issues, particularly caste discrimination, gender bias, and wage inequality within the IT and BPO sectors. The report also explores the emergence of Indian HR associations and professionals. The report highlights the challenges faced by employees and the evolution of HRM practices in India, emphasizing the need for fair and equitable HR policies. This report provides valuable insights into the complexities and nuances of HRM in the Indian context, offering a detailed overview of the challenges and opportunities within the sector. It also underscores the importance of ethical considerations and inclusive practices in the workplace.

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
The external context driving the Indian HRM system................................................................1
TASK 2............................................................................................................................................2
Evaluate internal context of Indian HRM system including both institutional and cultural
factors..........................................................................................................................................2
TASK 3............................................................................................................................................4
Critically analyse HR issue in India, especially in IT and BPO sector.......................................4
TASK 4............................................................................................................................................5
Emergence of Indian HR association and professionals.............................................................5
CONLCUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Human Resource is used to describe both the people who work for an organization and
department responsible for managing resources related to employees. Human Resource
Management can be defined as proper management which involves the development and
administration of programs which are designed to increase the efficiency of personnel in the
organisation (Aneesh, 2015). The following assignment is based upon the use of HRM System
by the organisations in India within BPO and IT Sector. The assignment will also provide an
understanding about various factors which affect the HRM System in Indian organisation. In
addition to this it also includes issues faced by employees in India. Among all the most important
issue is Caste Discrimination, in which the employees are discriminated on the basis of their
caste. This issue is mostly faced by dalits in this country that are consider as the lowest caste
within country.
TASK 1
The external context driving the Indian HRM system.
India is known as a republic and democratic nation of Asia. It is known for most popular
democracy, second most popular country and seventh largest nation by area with 1.3 billion
people. Great India term is used to defines it's historical and geographical extent of all politics.
The most populated city in India is Mumbai, people lives in this city are generally belongs to all
several different areas of country. India has number of religions like Hinduism, Islam, Sikhism,
Christianity etc. and also consist of number of language which is being spoken by people belong
to different culture. It includes Hindi, English, Marathi, Punjabi are major but in every local area
there is own official language like in Bengal people speak Bengali, Bihar people speak Bihari
etc. as according to their state people speak their own native language. The life expectancy is
also different according to gender 67 to 70 years is for men and 70-73 is for women. India is
known for different culture and practices which are undertaken by people that are world famous
and a lot of inventions are from India which are considered as unknown facts. In India
agriculture is considered as major exports, textile good, gems, jewellery, technology infect
engineering goods and chemicals are also exported to other countries (Barnes, 2014). There are a
lot external factors which drives the Human resource management are: -
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 The technology innovation is a major factor that drives human resources management in
India. The techniques are rapidly change due to certain innovations take place all over the
world. This also leads to increase in employment rate as more and more people are
focused toward gaining their regular source of income by getting employed.
 The India is considered as hub for engineers and country maintain a number of engineers
that are from all over the world. The economic reforms are their due to which super
powers are emerged.
 Largest business process outsourcing is in India as Indians speaks standard language.
This is also a factor in which human resource management is required by India so more
people are required to get employed (Bhattacharjee and Chakrabarti, 2017).
 It's also known as third largest economy in terms of purchasing power parties and in
coming they are about to overtake Japan. According to consuming items, India's is considered fifth largest country as per consumer
market.
The social and economic context: -
 In India caste system is very different as like at the top are Brahmin, then Kshatyia,
Vaishya, Sudra and last considered out caste people are Dalit. This is the hierarchy of
caste system in India according to that human resources are manage. The employees are
appointed according to their caste, as if they got selected in private sector then within
organisation people faced a lot caste differentiation. In BPO and IT sector also these
practices are going and employee faced a lot of difficulties for surviving in organisation.
 The major people in India are divided into various sort of caste on the bases of
background from which their upbringing. The employees are considered as strength for
organisation, they always treated as parallel to organisation in terms of respect to growth.
The middle class people are now emerging towards the employment due to which caste
system is becoming more challenging. In India there is a diversity in terms of people, but
while managing people in organisation low class people faced a lot of difficulty (Chacko,
2018). At cheaper rates workforce is available for answering client calls, train timetables
and related to IT sector.
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TASK 2
Evaluate internal context of Indian HRM system including both institutional and cultural factors
Human resource management refers to a system which work toward managing people
working within the organisation by performing several activities such as recruitment, pay roll,
formulating policies, assigning work, arranging training programs, compensation & benefit etc.
Human resource considered as an integral part of any business which require essential care in
order align them toward accomplishment of organisational goals. So it is also important for every
organisation to properly take care of the employees in their organisation.
With the help of managing the social relations with the employees, the human resources
for the company can be easily retained. Indian managers note that common Indian values, norms
of behaviour and customs plays an important role in making and influencing the HRM Policies
and practises of the companies in India. Managers value are determined by these social values
and norms. Sometimes, it creates trouble for the Indian Managers to form the policies and
practises as due to certain term and conditions in relation with the reserves categories in India. In
this way, to a great extent the HRM Practises of companies in India are a mix and are strongly
influenced by the social, economic, political factors which hare prevailing in India for a long
time (Connell, 2017). It is clear from the forming of HR Association and Professionals, and Tata
Steel appointed the first welfare officer in 1923 in their country.
The need of HR Function in Indian Culture was identified in the year of 1950s when
some companies identified the importance of HR Function in their organisation and it resulted in
a positive way for the companies those applied them in their practises. Like them other
companies in the industry also understand the importance of the HR Function in their own
organisations and this resulted in improving their own organisational efficiency such as the
skilled labours, improvement in the work performance, efficient employees, which are helpful in
the success of an organisation. So the successful deployment of these personnel resources is
made possible only with the help of HR Function. There are also some institutions in India such
as Indian Institute of Personnel Management and the National Institute of Labour Management.
These associations are a body of all India body of professional managers which are engaged in
the profession of personnel management, industrial relations, labour laws, labour welfare,
training and development of the employees. The importance of these were understood by the
companies when some of them applied them in their working of the company and got positive
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result such as the increase in the efficiency of the organisation and of the employees as well. It
also contributed to the improvement in the profits of the company and maintaining the proper
relation with the employees of the company. With these successful implications from the HR
role, further it was also improved that in the companies they were also forming separate HR
Department in their companies (Dilip, 2014). The Role of HR in the companies was expanded
and also their works and duties were also enhanced such as the work of training and
development, handling the employees’ grievances at the workplace level.
However, the HRD is not much developed in the Indian organisations. They had not
adopted this process in the working of their organisations. The key practises of the HR
Department include providing employees with the compensation and benefits, job description,
recruitment, performance appraisal, etc. are included in the key activities to be performed by the
HR Managers in an organisation (Joshi, 2015).
TASK 3
Critically analyse HR issue in India, especially in IT and BPO sector
BPO or Business Process outsourcing considered as one of the fastest growing business
within India which handles around US $300 billion business at global level. It also provides
direct employment to over 4 million young people as India is more favoured destination for
BPO. Apart from this when talking about IT sector it is growing at a rapid pace as the literacy
rate is increasing these days where 20 million youngsters are software engineers. Hence, in India
BPO and IT sector covered around 28% business within the country as both the sector are getting
more governmental support by building special economic zones such as SEEPZ in Mumbai, IT
hub in Bangalore, IT park in Pune (Kumari and Nirban, 2018). In these businesses HRM plays
an essential role by managing people and formulating policies regarding the working within the
company so that organisational objectives can be accomplish.
But apart from this there are majority of issues that are being experienced within these
sector which is the main reason behind backwardness of India's growth at global market. These
issues are gender bias, inequality in wages, religion differentiation and caste system. But the
major issue that India is facing in corporate sector is caste system where people are being
discriminated on the bases of their caste to which they belong. Indian people and their society
has formulated a caste system and on the bases of which they divide the caste in a hierarchical
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form. IT includes Brahmin, Kshatriya, Vaishya and Dalit. Among which Dalit’s are consider as
the lowest caste and generally they consider as outcastes (Noronha and D’Cruz, 2017). They are
the manual scavenger who work as a remover of human waste, dead animal, street sweepers,
leather workers etc. who didn't get chance to work with in companies over higher post.
Unlike public sector there is no such affirmative action policy has been formulated in
India mandate the recruitment of Dalit peoples or in case when they get job they didn't get equal
pay, job security or better welfare. There is no deny that India is rapidly growing at global level
with the help of BPO and IT sector or with the increase in urbanisation that has opened economic
as well as social opportunity for Dalit. But still there is a fall at the lowest end of the caste
spectrum where the people belong to Dalit caste category are being discriminated on the bases of
their caste or culture to which they belong.
Though the BPO and IT sector considered as one the fastest growing sector which work
toward reducing the unemployment rate but the reality is that people with a tag of Dalit caste
system are being judge on the bases of their caste and not over their ability (Prasad, 2017). The
main discrimination these people faced is with management system where they have to face
partiality behaviour within the hiring process. Apart from this they also being discriminated
through the policies formulated by companies such as in IT sector people get discriminated while
receiving any opportunity to work. In addition to the Dalit employees also have to face bullying
or other torture from their colleagues while working with them. So, these are the major issues
that are usually faced within the organisation due to mismanagement in organisations or social
norms which categorise as per their caste.
TASK 4
Emergence of Indian HR association and professionals
With the emergence of globalisation and liberalisation concept, India also get a chance to
mark its presence at global level by trading or managing its business at international level. In this
aim the majority of contribute India get from BPO and IT sector which provide its services at an
international level by dealing with Foreign client. Apart from this both sector also contribute
toward improving the economic condition of country by minimizing the unemployment rate or
poverty issue that are being faced by country at large scale (Sinha, 2014). But after this
development also there are some issues that are being faced by the people working in these
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sectors are inequality in term of wages, caste as well as gender discrimination. These all are the
issues that are majorly faced by employees as they get exploited by the companies in the absence
of proper rules and policies.
So, in order to overcome this government has decided to setup various system or
association for providing the security to human resources for avoiding their exploitation as well
as discrimination. From this face the emergence of human resource system had taken place and
Tata Steel appointed the very first welfare officer in year 1923. Apart from this some changes
also take place within legislation by formulating new laws such as Industrial Dispute Act 1947,
factories Act 1948 which handles the issues faced by employees while working (Vora, 2015). By
year 1940 to 1950 two more professional HR associations get established for acknowledging the
necessity of HR these are Indian institute of personnel Management and National Institute of
Labour management(NIPM). Apart from this HR become more involved in organisational
dynamics programmes which increases the awareness in organisation related to the formation of
HRD network to handle the personnel working within organisation.
With the emergence of this Human resource managers began to have significant impact
over broader level and HR audit set up. There is a significant shift within the Human resource
management after increase in business set up within BPO sector.
CONLCUSION
From the above given data it can be concluded that the use of HRM at the global level is
very important for the organisations not only in India but also in other countries for making the
relation in between the company and the employees better. Emerging of HRD companies helped
a lot in eradicating the effects of discrimination done to employees on the basis of their caste,
sex, colour, wages, etc. With the help of this department the employees are saved from being
discriminated by the companies and employers on the above provided basis. Further for making
the continuous improvement in the rules and regulations related to the HR Practises are changed
from time to time so that the chances of discrimination of employees should be avoided not only
for current time but also in the future. Several Associations are also formed in order to make this
successful to prevent the employees from being discriminated.
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REFERENCES
Books and Journals
Aneesh, A., 2015. Neutral accent: How language, labor, and life become global. Duke
University Press.
Barnes, T., 2014. Informal labour in urban India: Three cities, three journeys. Routledge.
Bhattacharjee, S. and Chakrabarti, D., 2017. The congruence of entrepreneurship and India’s
excellence in information technology. Journal of Global Operations and Strategic
Sourcing. 10(2), pp.159-184.
Chacko, P., 2018. The Right Turn in India: Authoritarianism, Populism and Neoliberalisation.
Journal of Contemporary Asia, pp.1-25.
Connell, L., 2017. Indian Call Centres and the National Idea. In Precarious Labour and the
Contemporary Novel (pp. 189-232). Palgrave Macmillan, Cham.
Dilip, D. ed., 2014. Inclusive Growth and Development in the 21st Century: A Structural and
Institutional Analysis of China and India (Vol. 9). World Scientific.
Joshi, D., 2015. How can India catch up to China? The importance of social investment. India
Review. 14(2), pp.238-267.
Kumari, P. and Nirban, V.S., 2018. Intercultural communication competencies in the Indian
Information Technology industry. International Journal of Cross Cultural Management.
18(3), pp.327-347.
Noronha, E. and D’Cruz, P., 2017. The World of Work in Contemporary India: The Relevance
of a Critical Lens. In Critical Perspectives on Work and Employment in Globalizing
India (pp. 1-12). Springer, Singapore.
Prasad, N. P., 2017. Closed City ‘Spaces’: Differential Access to Education in Vijayawada,
South India. In Second International Handbook of Urban Education (pp. 397-415).
Springer, Cham.
Sinha, J. B., 2014. Mindset in the Larger Context. In Psycho-Social Analysis of the Indian
Mindset (pp. 195-219). Springer, New Delhi.
Vora, K., 2015. Life support: Biocapital and the new history of outsourced labor. U of
Minnesota Press.
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