Research suggests that a number of facfors influence human resource management (HRM), policies and practices. This article reports the empirical results of a study designed to examine and highlight the main contingent variables and national factors influencing Indian HRM. The investigation is based on a questionnaire survey carried out in 137 Indian firms in the manufacturing sector. The results suggest a number of significant correlations between a set of contingent variables (i.e., age, size, ownership, life cycle stage and HRM strategies of an organization, type of industry and union membership) and four HRM functions of recruitment and selection, training and development, compensation and employee communication. Similarly, four national factors (namely national culture, institutions, dynamic business environment and business sector) are suggested, which influence Indian HRM policies and practices. The study has a number of implications both for academics and practitioners. It has also opened avenues for future research.
Get full access to this article
View all access options for this article.
References
1.
Amba-Rao, S.C.1994. 'US HRM Principles: Cross-Country Comparisons and Two Case Applications in India', The International Journal of Human Resource Management, 5: 755-78.
2.
Amba-Rao, S.C., J.A. Petrick, J.N.D. Gupta and T.J. Von der Embse .2000. 'Comparative Performance Appraisal Practices and Management Values Among Foreign and Domestic Firms in India', The International Journal of Human Resource Management , 11 (1): 60-89.
3.
Baird, L., and I. Meshoulam.1988. 'Managing Two Fits of Strategic Human Resource Management', Academy of Management Review, 13 (1): 116-28.
4.
Balaji, C., S. Chandrasekhar and R. Dutta (eds). 1998. Leading Change Through Human Resources: Towards a Globally Competitive India. New Delhi: Tata McGraw-Hill.
5.
Balasubramanian, A.G.1994. 'Evolution of Personnel Function in India—A Re-examination, Part 1', Management and LabourStudies, 19 (4): 196-210.
6.
—. 1995. 'Evolution of Personnel Function in India—A Re-examination, Part II', Management and Labour Studies, 20 (1): 5-14.
7.
Barney, J.B.1991. 'Firm Resources and Sustained Competitive Advantage', Journal of Management, 17 (1): 99-120.
8.
Bordia, P., and G. Blau.1998.'Pay Referent Comparison and Pay Level Satisfaction in Private Versus Public Sector Organizations in India', The International Journal of Human Resource Management, 9 (1):155-67.
9.
Brewster, C.1995. 'Towards a 'European Model of Human Resource Management' , Journal of International Business, 26 (1): 1-22.
10.
Brewster, C. and A. Hegewisch (eds). 1994. Policy and Practice in European Human Resource Management. London and New York: Routledge .
11.
Brewster, C., O. Tregaskis, A. Hegewisch and L. Mayne.1996. 'Comparative Research in Human Resource Management: A Review and an Example', The International Journal of Human Resource Management, 7 (3): 586-604.
12.
Budhwar, P.1999. 'Taking Human Resource Management Research to the Next Millennium: Need for an Integrated Framework', Paper Presented at the Annual Academy of Management Conference, 9-11 August 1999 , Chicago.
13.
—. 2000. 'Doing Business in India', Thunderbird International Business Review (Forthcoming).
14.
Budhwar, P., and Y. Debrah.2000. 'Rethinking Comparative and Cross National Human Resource Management Research', The International Journal of Human Resource Management (Forthcoming).
15.
Budhwar, P., and P. Sparrow.1997. 'Evaluating Levels of Strategic Integration and Devolvement of Human Resource Management in India', The International journal ofHuman Resource Management, 8: 476-94.
16.
. 1998. 'National Factors Determining Indian and British HRM Practices: An Empirical Study', Management International Review, 38 (Special Issue 2) 105-21.
17.
Clark, T., H. Gospel and J. Montgomery.1999. 'Running on the Spot? A Review of Twenty Years of Research on the Management of Human Resources in Comparative and International Perspective', The International Journal of Human Resource Management, 10 (3): 520-44.
18.
Cohen, Y., and J. Pfeffer.1986. 'Organisational Hiring Standards', Administrative Science Quarterly,31: 1-24.
19.
Dimick, D.E., and V.V. Murray.1978. 'Correlates of Substantiative Policy Decisions in Organisations: The Case of Human Resource Management', Academy of Management Journal, 21 (4): 611-23.
20.
Fisher, C.D., and J.B. Shaw.1992. 'Establishment Level Correlates of Human Resource Practices', Asia Pacific HRM, 30 (4): 30-46.
21.
Flamholtz, E.1974. 'Human Resource Accounting: A Review of Theory and Research' , Journal of Management Studies, 11:44-61.
22.
Gonsalves, C., R. BhatandM. Mathew (eds). 1995 . Cases on Indian Labour Laws. Vol. 1, New Delhi: Friedrich-Ebert-Stiftung .
23.
Guest, D.E.1997. 'Human Resource Management and Performance: A Review and Research Agenda', International Journal of Human Resource Management, 8: 263-76.
24.
Guha, K.1999a. 'Parent-owned Competitors Sound the Death Knell. India: Annual Country Report', Financial Times, 19 November.
25.
Guha, K.1999b. 'Software Services Lead the Charge. India: Annual Country Report', Financial Times, 19 November.
26.
Hendry, C.1991. 'International Comparisons of Human Resource Management: Putting the Firm in the Frame', International Journal of Human Resource Management, 2 (3): 415.
27.
Hendry, C., and A.M. Pettigrew.1992. 'Patterns of Strategic Change in the Development of Human Resource Management', British Journal of Management, 3:137-56.
28.
Hiltrop, J.M.1993. 'Strategic Pressures Deriving European HRM', European Management Journal, 11 (4): 424-34.
29.
Hofstede, G.1991. Culture's Consequences: Software of the Mind. London: McGraw-Hill Book Company.
30.
Jackson, S.E., R.S. Schuler and J.C. Rivero.1989. 'Organisational Characteristics as Predictors of Personnel Practice', Personnel Psychology, 42 (4): 727-86.
31.
Jain, H.C.1991. 'Is there a Coherent Human Resource Management System in India?', International Journal of Manpower, 12 (1): 10-17.
32.
Jain, H., J.J. Lawler and M. Morishima.1998. 'Multinational Corporations, Human Resource Management and Host-country Nationals', The International Journal of Human Resource Management, 9 (4): 553-66.
33.
Johri, C.K.1996. 'Industrial Relations as Regulated by Law: Suggestions for Change', Indian Journal of Industrial Relations, 31 (4): 439-49.
34.
Krishna, A., and A., Monappa, 1994. 'Economic Restructuring and Human Resource Management' , Indian Journal of Industrial, 29: 490-501.
35.
Lawler, J.J., H.C. Jain, C.S. Venkata Ratnam and V. Atiyananda.1995. 'Human Resource Management in Developing Economies: A Comparison of India and Thailand', International Journal of Human Resource Management, 6 (2): 319-46.
36.
Legge, K.1995. Human Resource Management: Rhetorics and Realities. Chippenham: MacMillan.
37.
Lengnick-Hall, C.A., and M.L. Lengnick-Hall .1988. 'Strategic Human Resources Management: A Review of the Literature and a Proposed Typology', Academy of Management Review,13: 454-70.
38.
Locke, R., and K. Thelen.1995. 'Apples and Oranges Revisited: Contextualized Comparisons and the Study of Comparative Labor Politics', Politics and Society, 23 (1): 337-67.
39.
MacDuffie, J.P.1995. 'Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry ', Industrial and Labor Relations Reviews, 48: 197-221.
40.
Mankidy, J.1995. 'Changing Perspectives of Workers Participation in India with Particular Reference to Banking Industry', British Journal of Industrial Relations, 33 (3): 443-58.
41.
Mankidy, J.1993.'Emerging Patterns of Industrial Relations in India', Management and Labour Studies, 18 (4): 199-206.
42.
Mathur, P., Z. Aycan and R.N. Kanungo.1996. 'Work Cultures in Indian Organisations: A Comparison Between Public and Private Sector', Psychology and Developing Society, 8 (2): 199-222.
43.
Mehrotra, R.1998. 'Industrial Relations in the Indian Pharmaceutical Industry ', in C.S. Venkata Ratnam and A. Verma (eds), Challenge for Change: Industrial Relations in Indian Industry. New Delhi: Allied Publishers.
44.
Miles, R.E., and S.S. Snow.1978. Organizational Strategy, Structure, and Process. New York: McGraw-Hill .
45.
Milliman, J.F., and M.A. Von Glinow .1992. 'A Life Cycle Approach to Strategic International Human Resource Management in MNCs', in G.R. Ferris and K.M. Rowland (eds), Research in Personnel and Human Resource Management, pp. 21-35, Supplement 2. London: JAI Press INC.
46.
Milliman, J.F., M.A. Von Glinow and M. Nathan.1991. 'Organizational Life Cycles and Strategic International Human Resource Management in Multinational Companies: Implications for Congruence Theory', Academy of Management Review, 16 (2): 318-39.
47.
Murray, V.V., H.C. Jain, and R.J. Adams.1976.'A Framework for the Comparative Analysis of Personnel Administration', Academy of Management Review , 1 (3):47-57.
48.
Negandhi, A.R.1975. 'Comparative Management and Organisation Theory: A Marriage Needed', Academy of Management Journal, 18 (2): 334-44.
49.
Porter, M.E.1985. Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press .
50.
Rao, T.V., D.M. Silveria , C.M. Shrivastava and R. Vidyasagar (eds). 1994. HRD in the New Economic Environment. New Delhi: Tata McGraw-Hill Publishing Company Limited.
51.
Rasanen, K., and R. Whipp.1992. 'National Business Recipes: A Sector Perspective', in R. Whitley (ed.), European Business Systems: Firms and Markets in their National Contexts. London: Sage Publications.
52.
Schuler, R.S.1992. 'Linking the People with the Strategic Needs of the Business' , Organisationl Dynamics, Summer: 18-32.
53.
Schuler, R.S., and S.E. Jackson. (eds). 1999. Strategic Human Resource Management . London: Blackwell.
54.
—. 1987. 'Organisational Strategy and Organisational Level as Determinants of Human Resource Management Practices', Human Resource Planning , 10 (3): 125-41.
55.
Schuler, R.S., P.J. Dowling and H. DeCeri.1993. 'An Integrative Framework of Strategic International Human Resource Management', The International Journal of Human Resource Management, 4: 717-64.
56.
Seth, N.R.1996. 'We, the Trade Unions', Indian Journal of Industrial Relations, 32 (1): 1-20.
57.
Sharma, R.D.1992. 'Management Training in India: Its Nature and Extent', International Journal of Manpower, 13 (2): 41-54.
58.
Shaw, J.B., S.Y.B. Tang, C.D. Fisher and P.S. Kirkbride.1993. 'Organisational and Environmental Factors Related to HRM Practices in Hong Kong: A Cross-Cultural Expanded Replication ', The International Journal of Human Resource Management , 4 (4): 785-815.
59.
Sodhi, J.S., and S.P.S. Ahluwalia .1992. Industrial Relations in India: The Coming Decade. New Delhi: Shri Ram Centre for Industrial Relations and Human Resources.
60.
Sparrow, P.R., and J.M. Hiltrop.1997. 'Redefining the Field of European Human Resource Management: A Battle between National Mindsets and Forces of Business Transition', Human Resource Management, 36 (2): 201-20.
61.
Sparrow, P.R., and P. Budhwar.1996. 'Human Resource Management in India in the New Economic Environment', in A. Saxena and H. Devedi (eds), HRM in the New Economic Environment, pp. 28-73. Jaipur: National Publishing House.
62.
. 1997a. 'Competition and Change: Mapping The Indian HRM Recipe Against World Wide Patterns', Journal of World Business, 32: 224-42.
63.
—. 1997b. 'Strategic HRM Through the Cultural Looking Glass: Mapping Cognitions of British and Indian HRM Managers', Proceedings of the British Academy of Management Annual Conference, pp. 434-476. London.
64.
Tayeb, M.1994. 'Organisations and National Culture: Methodology Considered' , Organisation Studies, 15 (3): 429-46.
65.
The Columbia Journal of World Business1994. Spring.
66.
Venkata Ratnam, C.S.1995. 'Economic Liberalization and the Transformation of Industrial Relations Policies in India', in. A. Verma , T.A. Kochan and R.D. Lansbury (eds), Employment Relations in the Growing Asian Economies. London: Routledge.
67.
—. 1998. 'Multinational Companies in India', The International Journal of Human Resource Management, 9 (4): 567-89.
68.
Venkata Ratnam, C.S., and A. Verma (eds). 1998. Challenge For Change: Industrial Relations in Indian Industry. New Delhi: Allied Publishers.
69.
Venkata Ratnam, C.S., and B.K. Shrivastava .1991. Personnel Management and Human Resources. New Delhi: Tata Mcgraw-Hill Publishing Company Limited.
70.
Venkata Ratnam, C.S., S. Balakrishanan and J. Rath.1998. 'Steel Industry in India in Transition: A Study of Changes in some Aspects of Employment Relations', in C.S. Venkata Ratnam and A. Verma (eds), Challenge For Change: Industrial Relations in Indian Industry. New Delhi: Allied Publishers.
71.
Verma, P.1987. Labour Economics and Industrial Relations. New Delhi: Tata McGraw-Hill.
72.
Yadapadithaya, P.S.2000. 'International Briefing 5: Training and Development in India', International Journal of Training and Development , 4 (1): 79-89.
