Comparative Analysis of HRM Practices in India and Germany

This report provides a comparative analysis of Human Resource Management (HRM) practices in India and Germany. The study examines key aspects such as employee engagement, which includes codetermination and works councils in Germany, and the impact of employment contracts and minimum wage policies in both countries. The report highlights the significance of training and development in Germany, contrasting it with the recruitment and selection processes and the adoption of high-performance work practices in India. Furthermore, the report addresses the legal frameworks governing employment, including the Companies Act and Contract Act in India, and the minimum wage regulations in Germany, offering a comprehensive overview of the HRM landscape in both countries. The differences in performance management and the termination of employees are also discussed. The report is based on existing research and provides insights into the diverse approaches to HRM in these two countries.

HRM practice

HRM practice in India and Germany
In Germany, the HRM practices are adopted in an organization with employee engagement
which includes codetermination and collaboration, employee bias and high level of state
intervention in the employment relationship. In the case of employee engagement, employees are
represented at the board level and through the works council extensive. For retention, the
organization focuses on employee retention because of the demographic factors. In performance
management is limited until the managerial level in Germany in which performance is related to
pay. In HRM practice, training and development, high investment is done for the training and
shifting towards the lifelong learning of employees. In Germany, the minimum wage policy is
applicable for the employee which is EUR 9.19 per hour (Schroder, et al., 2009).
In India, HRM practices include the policies for the employment contract. Indian employment
laws are considered as diverse. The Companies Act and the Contract Act are included for
providing employment to employees. The minimum wage in India is approx.178 INR per day
and the Minimum wages Act is followed by employers in the organized sector. The recruitment
and selection procedure is followed for hiring the right person on the right job at the right time.
The HR agenda is followed by the employers of India. For the organizational performance, high-
performance work practices are adopted for increasing productivity. In India, employees are
terminated according to the terms and conditions which are mentioned in their employment
contract (Budhwar and Khatri, 2011).

Reference
Budhwar, P.S. and Khatri, N., 2011. HRM in context: Applicability of HRM models in
India. International Journal of Cross Cultural Management, 1(3), pp.333-356.
Schroder, H., Hofacker, D. and Muller-Camen, M., 2009. HRM and the employment of older
workers: Germany and Britain compared. International journal of human resources development
and management, 9(2-3), pp.162-179.