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Business Dictionary:

Industrial Psychology

Area of psychology dealing with job analysis, defining and measuring job performance,performance appraisal, tests, employment interviews, employee selection and training,andHuman Factors; also called personnel psychology.

WordNet: industrial psychologyNote: click on a word meaning below to see its connections and related words.

The noun has one meaning:

Meaning #1: any of several branches of psychology that seek to apply psychological

principles to practical problems of education or industry or marketing etc.

Synonym:applied psychology

Wikipedia: industrial and organizational psychologyPsychology

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PhD & ResearchTop choice. Excellent Faculty & Technical Infrastructure.

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Therapies

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Industrial and organizational psychology (also known asI/O psychology, workpsychology, work and organizational psychology, W-O psychology, occupational

psychology,personnel psychology ortalent assessment) concerns the application ofpsychological theories, research methods, and intervention strategies to workplace issues.

I/O psychologists are interested in making organizations more productive while ensuring

workers are able to lead physically and psychologically healthy lives. Relevant topicsinclude personnel psychology,motivation and leadership, employee selection, training

and development, organization development and guided change, organizational behavior,

and work and family issues. I/O psychologists who work for an organization are mostlikely to work in the HR (human resources) department. However, many I/O

psychologists pursue careers as independent consultants or applied academic researchers.

I/O psychology is one of the many domains that should be assessed when conducting

psychological research when answering applied questions.

Overview

Industrial and Organizational (I/O) Psychology (Division 14 of theAmerican

Psychological Association) as a specialty area has a more restricted definition thanPsychology as a whole. Guion (1965) defines Industrial and Organizational Psychology

as "the scientific study of the relationship between man and the world of work:... in the

process of making a living" (p. 817). Blum and Naylor (1968) define it as "simply the

application or extension of psychological facts and principles to the problems concerninghuman beings operating within the context of business and industry" (p 4). Broadly

speaking, I/O Psychologists are concerned with human behavior in work contexts.

According to Muchinsky, the applied side of I/O Psychology is concerned with utilizingknowledge gathered from scientific inquiry "to solve real problems in the world of work".

Example problems include hiring better employees, reducing absenteeism, improving

communication, and increasing job satisfaction.

One of the tools I/O psychologists commonly utilize in the field is called ajob analysis.Job analyses identify essential characteristics associated with any particular position

through interviews of job incumbents, subject matter experts, supervisors and/or past job

descriptions. Job analyses measure both worker facets necessary to perform the jobadequately (aka KSAOs - knowledge, skills, abilities, and other characteristics as well as

unique facets of the job itself. Once a job analysis is complete, I/O psychologists will

typically utilize this information to design and validate systems to select new applicants,restructure employeeperformance appraisals, uncover training needs, and analyze

fairness in employee compensation. Though a thorough job analysis takes time, resources

and money, its benefits tend to outweigh the costs.

* I/O Psychologists are professionals seeking to address real-world

issues or problems in the workplace.
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o As scientists, they derive principles of individual, group,

and organizational behavior through research.

o As consultants and staff psychologists, they develop

scientific knowledge and apply it to the solution of problems at work.

o As teachers, they train in the research and application of I/O

Psychology

I/O psychologists also may employpsychometric teststo measure the abilities and

personality traits of prospective and current employees. These tests are commonly usedfor employee selection and other employment decisions. Employee attitudes such as

morale, job satisfaction, or feelings towards management or customers are other

commonly measured work-related person variables.

Increasingly, people factors are recognized as a major determinant of organizationalperformance and a key competitive differential. Psychologists therefore may also advise

senior managers on the management of organizational climate or culture, on dealing with

organizational change, or on group dynamics within an organization. It is probably partlyfor this reason that management coaching is an increasingly popular part of the

psychologist's work.

Industrial and organizational psychology is a diverse field incorporating aspects of

disciplines such as social psychology,personality psychologyandquantitativepsychology (which includespsychometrics) as well as less closely linked social studies

such as law. As a diverse, applied field, influences from any branch of psychology, even

clinical psychology, are not uncommon. At one point in time, industrial andorganizational psychology was not distinguished from vocational (counseling)

psychology or the study of human factors. Although the foregoing disciplines still overlap

with industrial and organizational psychology, today they are formally taught in separate

classes and housed in separate graduate-level psychology programs within a psychologydepartment.

Many industrial and organizational psychologists specialize in one of the following

aspects: psychometrics; quality; employment law; personnel selection; training;leadership selection, coaching and development; organizational design and change. Many

of these activities are referred to as talent management. Some I/O psychologists are

academic (working in both business and psychology departments) or non-academic

researchers, while many others are engaged in practice, holding positions such as thefollowing:

Board of Directors Chairman

Governing Board Chairman

Board Chairman

Personnel Committee Chairman
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CEO

Technical Recruiter

Selection Committee Chairman

Vendor Services Executive Committee

Executive coach

Senior Personnel Officer

College of Business Associate Dean

Psychology Faculty

Employment Specialist

Staffing Specialist

Job Developer

Vocational Specialist

Staffing Consultant

Co-Producer of Professional Development and Training.

Academic Adviser

VP of Management Services

Vice President

Staffing Consultant

Recruiter

legislative compliance officer

labor relations specialist

ADA Trainer / Account Manager

Human Resources Assistant


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human resources specialist

Process improvement consultant

Manager of selection and training

Employee Benefits

Counselor

Diversity Consultant

Job functions, duties and responsibilities carried out by individuals holding a degree inIndustrial and Organizational Psychology and Business Administration with business

minor emphasizing Marketing and Employee Relations graduate course work include, but

are not limited to, the following.

Use of Robert's Rules of Order parliamentarian procedures to facilitate and

participate in orderly and effective corporate, organizational, committee and

legislative meetings and training others on it.

Writing and editing.

Interface with the private and public for profit corporations.

Interface with private non-profit corporations and organizations.

Interface with several United States of America (U.S.A.) governmental agencies

and stakeholders including city , county state and federal government agencies.

Introduce legislation and motions to various governing bodies.

Interpret and explain motions and resolutions to-be-introduced.

Review, approval, interpretation and oversight of implementation of

organizational constitution, bylaws and articles of incorporation.

Sales and marketing strategies design, development and implementation.

Gain internal and external stakeholders buy-in on policy, referendums, procedures

update.

Conduct needs assessment to define project scope, deliverables and

implementation plan.


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Create and drive the implementation of marketing strategies that increase

technical recruiting, job placement and career services revenue.

Recommending top candidates to final hiring person.

Articulate organizational vision, mission and values.

Programs image re-positioning.

Chairmanship

Assist decision-makers and facilitate the decision-making process within several

governing bodies.

Abide by the Brown Act regulations for posting notices of public meetings.

Governing board retreat strategic agenda development and retreat activities

planning.

Foster a culture of and Improving performance, productivity and results.

Decrease micromanagement

Starting up new business units and penetrating markets to gain market share.

Interlocking board and or personnel matters committee members

Executive management

Governing Board relations.

Supervision of professional executive management and clerical staff

Strategic planning and work force restructuring

Using the Generally Accepted Accounting Principles (GAAP).

Oversee, plan, direct, coordinate and / or participate in corporate operations.

Track & report billable hours; accounts payable (A/P) and account receivable

(A/R) and expenses


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Invoicing

Budgeting: Resource forecast, management, allocation and monitoring.

Starting up organizations, companies.

Run the full cycle of candidate recruiting and client company development and

management.

Technical Recruiting

Developing and implementing direct and indirect technical recruiting strategies.

Consult with hiring managers, executives and founders about recruiting

requirements.

Facilitate resolution of volatile political issues.

Liaison between employment services organizations, job candidates and client

companies.

Individual human achievement coaching.

Interview, check references, match candidates and personnel needs, Schedule and

coordinate interviews, follow-up and follow through to turning candidate down

and / or extend job offers, and getting acceptance of job offer / candidate.

Personnel Management

Interpret and implement personnel policies and procedures.

Staff planning, direction, Recruiting, selection, hiring, new employee orientation

and evaluation

Risk management (damage-control)

Interact with constituencies or stake-holders of diverging views.

Collect, review, approve and report multiple departments employees payroll tohuman resources accounting unit.

Review and recommend steps to bring consistency or congruency of employee

handbooks with Human Resources Policies and Procedures.

Personnel Policies Administration


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Personnel Research Design, Statistical Analysis and Interpretation.

General Statistical Analysis

University Teaching

Personnel Statistical Analysis.

Research Design and Analysis

Individual and group coaching

Design, develop and implement position (job openings) tracking systems.

General Management

Job Placement services

Analysis of and advice to management on complex personnel issues.

Design and administer weighted personnel selection tools.

Research and write labor relations manual

Utilize word processing, spreadsheet and statistical analysis software packages to

present human resources projects data, statistical analysis and interpretation,

conclusions and recommendations.

Research, review, summarize and present complex information in an

understandable manner to audiences varying in education levels (ranging fromPh.D. to only 7th grade or GED) and fields of expertise.

Conduct wage surveys to determine prevailing wage.

Analyze and interpret data.

Entrepreneurship

Ensure validity and reliability of job analysis and

Job performance evaluation system and its tools whether using quantitative, qualitative

statistical data and analysis, and / or weighted scoring type of tools; whether one-to-oneevaluation, peer-to-peer or the more complex 360 degree job performance evaluation,

ensuring the validity and fairness of the data and how its valid statistical analysis,

interpretation and recommendations, pointing out the flows of the data in a 360 degree

evaluation system such a political witch-hunt, comments or impute filled with personal


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venderas or other irrelevant matters. This is s huge area where the backing of major

corporate officers such as HR Head or the expert backing of a PhD with Statistical

research and design analysis can be paramount to adding credibility to the personpresenting the outcomes from such an evaluation system to say a board of directors or

major committee evaluating a major key player in for example a head of an executive

management team.

Personnel compensation reviews

Review and increase validity and reliability of evaluation surveys to for example

comply with the Americans with Disabilities Act (ADA) U.S.A. Federal Law.

Communicate effectively with Exam and Testing Units Heads, Senior Personnel

Analysts, Agencies Heads and / or representatives and EEO personnel to discussand negotiate employment testing reasonable accommodations for job candidates.

Price Standardization of office support services.

Writing Excel formulas to track data and perform calculations.

Facilities safety and security coordination and standards.

Design and implementation of pre-employment testing via work sample.

Review and recommend vendors policies/procedures.

Vendor relations.

Review vendors contract performance and compliance.

Respond to RFPs / RFQs submittals.

Quality assurance.

Communicate policies and procedures

Respond to employee grievances.

Research and interpret personnel laws, solve problems, explain requirements andmake decisions often with the aide of legal council.

Employee Relations (e.g. Federal and State laws, regulations and or guidelines

relevant to 1) Performance Management and Evaluation; 2) I-9 Immigration

Reform and Control Act of 1986; 3) Americans with Disabilities (ADA); 4)

Sections 503 / 504 of the Rehabilitation Act; 5) Equal Employment Opportunity


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(EEO); 6) Affirmative Action (A.A); 7) Racial, ethnic, multi-lingual, disability,

gender, political and nationality diversity issues management.)

Design, review and performance of records filling and management to meet and

sustain strict confidentiality and documentation standards of certification by

accrediting institutions

Research and write content of participatory seminars on professional development

topics such as time management, implementing the Americans with Disabilities

Act (ADA), conducting effective job performance appraisals, stress management,anger management and conflict resolution.

Standardize sales price of Office support services.

Enhance R business processes (e.g. employment recruiting and selection, new

employee orientation, staff development policies and procedures, catastrophic

leave policy EEO and implementation of the ADA), customer service, and staffdevelopment.

Address staff inquiries about compensation grades

Employment and Classification (e.g. job candidate testing design and interview

questions development, evaluation standards design, Job restructuring involving

job enlargement and job enrichment.)

Shift differential policy.

Catastrophic leave policy.

Retirement benefits policy.

COLA's and MSA's requests, reviews and recommendations.

Office space management

Equipment and supplies policies.

Responding to and requesting position reclassification.

Write job descriptions.

Coordinate and conduct job analyses.

Contact presenters to gain their commitment in principle.


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Fostering relationships for a department in order to gain internal expertise

cooperation and participation.

Design, and coordinate job performance appraisal (evaluation) systems.

Train professionals and clerical staff on providing reasonable accommodations toimplement the ADA and / or sections 503 and 504 of the Rehabilitation Act

whichever laws were applicable.

Market post-secondary educational institutions and admissions requirements.

Manage & prioritize multiple projects.

Use Statistical Analysis Software such as Statview.

Use Emailing and Scheduling System such as GroupWise

Use Client and Program Management System such as Metsys software.

Introduce revised elections codes to governing bodies to meet ADA Federal Law

requirements of programmatic and physical accessibility.

Monitor compliance with Fair Labor Standards Act

Monitor compliance with EEO laws and guidelines.

There are also a number of methodologies specifically dedicated to OrganizationalPsychology such as Peter Senges 5th Discipline and Arthur F. CarmazzisDirective

Communication. These are a variety of psychological approaches that have been

developed into a system for specific outcomes such as the 5th Disciplines learningorganization or Directive Communications Organizational culture enhancement.

In an attempt to correct for statistical artifacts (i.e., sampling error, unreliability and range

restriction) that compromise the ability of I/O psychologists to draw general conclusionsfrom a single study, I/O researchers have increasingly employed a technique known asmeta-analysis. Meta-analysis is a methodology for averaging results across studies. It has

been used to address research questions involving various levels of analysis (i.e.,

individual, group, organizational, and/or vocational). Although the use of meta-analytic

methods is not without controversy, its more frequent appearance in the I/O researchliterature has profoundly impacted the field. The most well-known meta-analytic
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approaches are those of Hunter & Schmidt (1990, 2004), Rosenthal (1991), and Hedges

& Olkin (1985).

Financial compensation of industrial and organizational psychologists generally is amongthe highest in the whole field of psychology. While salary and benefits tend to be

significantly greater in the private sector, academics who specialize in industrial andorganizational psychology may command greater compensation than their faculty peers.

Teaching (and sometimes research) opportunities exist in business schools as well as inpsychology programs. Business schools typically offer more generous salaries and

benefits than do psychology programs. Some academics choose to gain practical

experience and access to data, as well as to supplement their incomes, by engaging inconsulting work on the side.

History

Frederick W. Taylor Contributions to Personnel Management and The United States ofAmerica (U.S.A) Government

The author of Frederick W. Taylor: Father of Scientific

Management, Volume two (2) reveals to us how Frederick W. Taylor, also

well-known us the engineer in management, after he advanced personnel

management in various private manufacturing companies such as the

Bethelhelm company, during the last several decades of the 1800s,

continued his efforts to promote and further give time and effort

towards the furtherance of it.

Taylor did advance core components, concepts, principles and

applications or practices such as the following with the United States

of America Federal Government during the first decade of the 1900s and

before 1907 of what we now call HRM, HRD, HR, Human Capital Management,Personnel Management, Industrial and Organizational Psychology,

Organizational Behavior and Development or whatever we might call it

now and or in the future and have called it in the past:

Job Performance Measurement.

Job Analysis.

Job Design.

Job Enrichment.

Job Enlargement.

Job Restructuring.

Benchmarking / Standardizing


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Delegating

Change Process Management.

Classifications.

Cost-Benefit Analysis.

Applied Motivation at Work.

Organizational Re-Engineering / Reduction-In-Labor Force / Down-Sizing / Right-Sizing or Laying-Off.

Taylor also brought into our field very good basic economics

concepts, theories, and practices such as:

Return-On-Investment (ROI).

Break-Even Point.

Feasibility Study and Analysis.

Although he might have had used different words to refer to the

above terms, the meaning, the activity involved in, the information

sought, gained and objective of its use were the same as what the

henceforth mentioned contributed concepts, principles and practices ofmanagement usually mean. If you are able to see this in the content of

the text book written about him, you might begin to see that our field

is a spectacularly advanced science which has been around more than 200

years.

In fact beginnings of the science of management introduced by

Taylor were so well advanced for the time that Frederick W. Taylor

Scientific Management enlightened a high caliber management team named

Vickers brought from England which was going to be used in the NAVY

in lieu of Taylors by one skeptic major division.

According to the author of the text book about Taylors systems,

there is no account of weather The Vickers System was ever used in the

NAVY. Taylors certainly was adopted and used more by some than by

others. This is not to say that our U.S.A. Government was behind the

A-Ball before Taylor joined them. It was not at all. On the contrary,when Taylor executed his in-kind government-efficiency consulting

service with the ARMY, he found that they were quite advanced already.

In the first decade of 1900 The ARMY already selected officers from

the line by competitive examinations or what we might now refer to as

civil service process (Vol. 2; pp 328).

Taylors first contributions to this science within The United

States of America (U.S.A.) Government (Frederick W. Taylor Father of

Scientific Management, First edition 1923, reprinted 1969, pp. 210-327)


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were with the engineering and manufacturing work of The NAVYs yards

and of The ARMYs Ordenance Department (Frederick W. Taylor Father of

Scientific Management, Vol. II, First edition 1923, reprinted 1969,

pp. 328 352). Now we are able to apply them to other industries, and

business-sectors such as the non-profit sector, the for-profit sector,

the public sector, the private sector, the start-up sector, City,

County and state government agencies and more federal agencies and in

entrepreneur endeavors.

In addition to the terms mentioned previously, Frederick W. Taylor alos contributed theterm "First-Class Men", which in personnel selection is key. We look for the best fit

between the job and the person. Taylor presented a House Committee a pretty nifty

description of the meaning he inteneded when he used the term "First-Class Men." Hisdescription is as useful today as it might have been when he educated the house

committee on the subject. In the following parragraphs, you will find an executive

summary using methorphors and parallel thinking as opposed to linear, describing theterm creatively. Furthermore,l it allows us to see how well developed and rich the

Indsutrial and Organizational Psychology history is in its thought provoking ideas and yet

simpllcity in its down to earth illustrations of its concepts.

Taylors Definition of the Term First-Class Men

Taylors definition of the term First-Class Men as he used it is furnished through an

illustration, using the great capacity of horses. He used before the Special HouseCommittee this illustration in which he presented the types of horses and the use for

which they were intended. He explained how if you had 300 to 400 horses in a stable,

you will have horses intended specially for hauling coal wagons, horses for hauling

grocery wagons; you will have a certain number of trotting horses, a certain number ofsattle (pleasure horses) and of ponies in that stable (Frederick W. Taylor Father of

Scientific Management, Vol. II, First edition 1923, reprinted 1969, pp. 76 to 77). Lets sayyou ran out of coal hauling horses on a given day and you decide to use grocery wagon

hauling horses he continued. The grocery hauling wagon horse would not be a first-class

horse for hauling coal wagons. Would it? No, it would not. It would be a second class

horse. You may not even have a grocery wagon hauling horse available, in which case,you may decide to use a treating horse; this wouldnt be a first-class horse either. It would

be a second class horse, he explained, or maybe even third for they are less fit than the

grocery wagon hauling horse and much less than the coal wagon hauling horse to haulsuch a heavy duty, high weight material as coal. Last resort if you ran out of all the

horses, you, at times, may need to use a Pony he said. The least fit of the three to haulcoal wagons. However, do not think ponies are not physically fit; I remember my fatherwhile training a pony he had bought for me and my brother before our teenage years got

thrown off of it and dragged around in circles. While ponies are not fully trained, they

can wrestle you to ground fast and using the element of surprise. They seem easy to get

them to do whatever you want them to or to be quickly tamable but they are not if youmove on too heavily on them or try to tame them with too much force or heavy weight

per my own observation. A pony while very welcoming and easy going can easily bring a


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tamer on his knees and drag him through the mud, hey, green grass and rocks. My dad

was just hanging on to the rope. Luckily he did not get hurt when he pushed the pony too

much or beyond the ponys acceptable threshold of pain.

Now, the grocery wagon hauling horse would be a first-class horse to pull grocery

wagons just as a trotting horse would be first-class, and not second class, for ridingpleasure.

A pony might also be a first-class horse as far as say trotting for children and youngadults under age 18 for gee 18 but not for adults over it. They may later on become first-

class trotting horses for adults, but not coal-wagon hauling horses.

On a different dimension of objects from the henceforth mentioned, which used an

animal kingdom specie, lets say now us that of an inanimate noun such as the coalwagons and grocery wagons. A coal-wagon is first-class wagon obviously for carrying

coal, but not to carry groceries because it is not going to be very clean. Similarly with the

case of grocery wagons, a grocery wagon is not a first-class wagon to carry coal for itmight not stand the heavy weight. However, it would certainly be first-class to carry

groceries.

An easy, yet, impractical solution may well be to make the load of coal wagon so light

that even a pony could carry it, or a task so easy, at which point you are making a fool outof yourself, that the task can be done by a second class animal when in fact to be effective

and efficient it most be made by a first-class animal. And that is an illustration of using,

in specie different from the human specie, the term First-Class by Taylor in

management.

Taylors metaphor was not intended to compare or diminish a worker or laborers dignityor value to that of an animal, namely, a horse, or of an inanimate noun such as a hauling

wagon. It was nothing but a mere way of using a metaphor or parallel thinking to conveyhis point which took us as a variable out of the equation. He genuinely and savvyly took a

scenario outside our own human species in a situation where human beings would decide

which subject (i.e. horses and wagons) within their own categories would be best

qualified to do or perform or achieve the job that required doing; which inanimate subjectwould be determined as first-class and on the basis on which the individual is determined

to do the job is simply illustrated by the horses example. This utility of term is

transferable personnel management and selection when used in determining who mightbe the best person fit or qualified to get a certain task or job done without regard to creed,

skin color, race, ethnicity, nationality, disability, political affiliation and gender. It is a

nifty term for it allows you the broadest flexibility to view yourself as a First-Class atwhatever it is you are very well qualified to do. And there can be I would think several

first-class individual in any field which is very good.

On the one hand when used well in personnel selection, it is a neat way to find and select

the crme of the crop (the high-caliber people) to do whatever job needs to be done. Onthe other hand, if not used well by making jobs too complicated (lumping three into one)


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or too simple that anybody can do it, one may end up wasting the knowledge, skills,

abilities and experience of person doing a simple task which had it been delegated to a

qualified person less experienced in breath and in depth it could have been done just aswell or maybe better. You might end up, if the first-class men practice for the job is not

used at all, having a poorly qualified person of narrow knowledge and shallow experience

doing or overseeing a project or program or job which required wider or broader andmore comprehensive (deeper) knowledge, skills, abilities and formal education. Thereby

ending with negative or undesired results or no results whatsoever, and maybe even in the

red from an accounting view point.

You see he, Taylor, took us humans out of the equation in his metaphor to allow us to seehis point more easily. His attempt perhaps to show us the classifying of horses and

wagons into first and second class was, in my view, to help us with seeing beyond

ourselves, straight ahead and forward so that he could keep our minds open just by givingus an example which did not set up into classifying us, humans, into first and second

class. Once he allowed us to see his point in a different world, he then showed us how to

apply it in ours. And hopefully we have seen beyond the salad days or childish,immature reactions such as he is comparing us to horses, godsh or he is anti-union No,no, no, he was not. His point simply was every person just as every horse in the horses

example can be First-Class or many of the best to do a certain kind of job based on what

the job requires and the persons knowledge, skills, abilities, education and or experience.And he firmly believe that an employee could not just demand higher wages without

decreasing cost of production and increasing productivity thereby benefiting the

employer, too. Justly so, he too believed that an employer could not overwork theiremployees, exploit them and keep blinders on them so as not to find out of company

which offered better opportunities. In fact as stated in the book about him, he is referred

as having such a Yankee mind that he did not only not put blinder on their employees to

find out about potentially better employment opportunities. He told them about it too; andthat is what qualified his mind as Yankee mind (page 73, vol 2). He, too, took people

back whom returned to him for they deemed Taylors practices fairer and more

financially rewarding and with better working environments.

Taylor was saying a machine can be first-class at his job like a CEO, Attorney, Surgeon

can be at their respective jobs. And there may be second-class members in each

profession, surely.

Just like a CEO or doctor is not likely to become first-class in mechanic, where he wouldbe only a second class mechanic, the mechanic would never be a first-class CEO or

doctor. He would be second-class doing a CEOs, doctors or attorneys job.

Nevertheless, this did not mean one cannot become first-class in another profession if one

had the fortitude, self-discipline and consistency, and acquired the KSAs (Knowledge,skills and abilities) and achievement results required to be deemed a First-Class

individual in whichever profession, educational endeavor or sports.


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Aside from concepts, principles and practices Frederick W. Taylor brought from the

engineering and the accounting world to the field of Personnel Mangement and selectionacademic and practice sides of the field, he although not trained in Industrial and

Organizational Psychology at the time was formally educated in engineering and was

known as the American Engineer in Management. Furthermore, he promoted and fosteredthe advamncement of formal academic education referred to him as "intellect" and also

acknoledged that just education without common sense or without hands-on experience

was aof little value to an individual. He furthermore ranked them and augmented thepower of each by adding character or honesty. He ranked character at the top, common

sense second and intellect third. This was not to dillute the value of education but just to

provide perspective based on his own personal experience of the result he could get from

those whe were formally educated without experience in contrast to those whom hetrained for whever worked he needed done and and those who came to him with the

tremendous combination of an academic education coupled with hands-on work or

internship experience. The next Section on these henceforth mentioned valuss (i.e.

Character, common sense and intellected) is revealed.

Three Key Individual Achievement Traits by the American Engineer in American

Management

Three Individual Achievement Traits or learned behaviors if not traits are, according to

The American Engineer in American Management and Organizational Development

Science and founding father of Industrial and Organizational Psychology in the United

States Of America -- Frederick W. Taylor--are:

1) Character

2) Common Sense, and

3) Intellect

Intellect without character Taylor pointed out makes many people end up in the

jail/prison [i.e. the joint] (Frederick W. Taylor Father of Scientific Management by Frank

Barkley Copley, Volume II, 1923 and reprinted 1969; library of Congress Catalogue Card

Number 68-55515).

And character without common sense or without intellect, I would add, can become

Puritanism or in other words just opinions without factual rational backing. It can become

expecting people to believe anything just because some body says it. It can become de-individuation a concept in Group Psychology which leads to cults where the individual

looses his or her individuality. You shall remedy by educating the group about group-

think and thereby breaking it up (Social Psychology by David G. Myers, Third Edition;


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Copy Right 1990; page 292 to 298). This is the opposite of the good all American value

of Individuality. The way to address de-individuation is to break group-think by making

people aware of it. And letting the group know that it is perfectly fine and totallyAmerican to state a dissenting opinion about whatever without caving-in under political

or peer-pressure.

EXECUTIVE PROFILE - WADE AZMY

After moving into global organizations in 1982, Wade worked in a broad variety of

privately owned and publicly listed companies, rapidly moving through a number ofsenior sales and marketing positions, to Director and General Manager levels.

Wade Azmy started his professional career in 1981 as a graduate Engineer, where hespecialized in Sales and Customer Service. Wade has held general manager and director

roles for major international companies operating in the information technology,computers and telecommunication, medical systems, medical disposables and

consumables, hospitals and infrastructure projects. His experience has been gained in

some of the most turbulent and competitive markets, including Europe, Middle East, AsiaPacific (incl. China, Japan), New Zealand and Australia.

In his time with Hewlett Packard, Wade founded the Healthcare Professional Services

Division in Australia and Asia Pacific. His sales and marketing exposure to international

and global markets contributed to his considerable commercial expertise.

Wade is known for his strong leadership and strategic planning capabilities. He hassignificant experience in organizational change, relationship development, sales &

marketing, productivity and cost effectiveness, product development and branding. This

experience has provided Wade with the unique ability to provide a broad range ofinsightful and innovative ideas in complex and challenging business environments.

Wade has corporate governance, management and marketing qualifications.

Wade provides training, development and coaching services in the areas of sales,

marketing, business strategy, communication and leadership, as well as facilitation and

team building.

Wade is now using his broad range of business and management skills to provide

Executive Recruitment services to his clients.

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\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\Indi

a is being widely recognised as one of the most exciting

emerging economics in the world. Besides becoming a

global hub of outsourcing, Indian firms are spreading

their wings globally through mergers and acquisitions.During the first four months of 1997, Indian companies

have bought 34 foreign companies for about U.S. $11

billion dollars. This impressive development has been

due to a growth in inputs (capital and labour) as well as

factor productivity. By the year 2020, India is expected

to add about 250 million to its labour pool at the rate of

about 18 million a year, which is more than the entire

labour force of Germany. This so called demographic

dividend has drawn a new interest in the Human

Resource concepts and practices in India. This papertraces notable evidence of economic organisations and

managerial ideas from ancient Indian sources with

enduring traditions and considers them in the context

of contemporary challenges.

Introduction

Over many centuries India has absorbed managerial ideas and practices from around theworld. Early records of trade, from 4500 B.C. to 300 B.C., not only indicate international

economic and political links, but also the ideas of social and public administration. Theworlds first management book, titled Arlhshastra, written three millennium beforeChrist, codified many aspects of human resource practices in Ancient India. This treatisepresented notions of the financial administration of the state, guiding principles fortrade and commerce, as well as the management of people. These ideas were to beembedded in organisational thinking for centuries (Rangarajan 1992, Sihag 2004).Increasing trade, that included engagement with the Romans, led to widespread andsystematic governance methods by 250 A.D. During the next 300 years, the first Indianempire, the Gupta Dynasty, encouraged the establishment of rules and regulations formanagerial systems, and later from about 1000 A.D. Islam influenced many areas oftrade and commerce. A further powerful effect on the managerial history of India was to

be provided by the British system of corporate organisation for 200 years. Clearly, thesocio cultural roots of Indian heritage are diverse and have been drawn from multiplesources including ideas brought from other parts of the old world. Interestingly, theseideas were essentially secular even when they originated from religious bases.

In the contemporary context, the Indian management mindscape continues to beinfluenced by the residual traces of ancient wisdom as it faces the complexities of globalrealities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervadesmanagerial behaviour at all levels of work organisations. This philosophical tradition hasits roots in sacred texts from 2000 B.C. and it holds that human nature has a capacity for


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self transformation and attaining spiritual high ground while facing realities of day today challenges (Lannoy 1971). Such cultural based tradition and heritage can have asubstantial impact on current managerial mindsets in terms of family bonding andmutuality of obligations. The caste system, which was recorded in the writings of theGreek Ambassador Megasthenes in the third century B.C., is another significant featureof Indian social heritage that for centuries had impacted organisational architecture and

managerial practices, and has now become the focus of critical attention in the social,political and legal agenda of the nation.

One of the most significant areas of values and cultural practices has been the castesystem. Traditionally, the caste system maintained social or organisational balance.Brahmins (priests and teachers) were at the apex, Kshatriya (rulers and warriors),

Vaishya (merchants and managers) and Shwdra (artisans and workers) occupied thelower levels. Those outside the caste hierarchy were called untouchables. Even decadesago, a typical public enterprise department could be dominated by people belonging to aparticular caste. Feelings associated with caste affairs influenced managers in areas likerecruitment, promotion and work allocation (Venkatranam & Chandra 1996). Indianinstitutions codified a list of lower castes and tribal communities called scheduled castes

and scheduled tribes. A strict quota system called, reservation in achieving affirmativeequity of castes, has been the eye of political storm in India in recent years. The centralgovernment has decreed 15 per cent of recruitment is to be reserved for scheduled castes,and a further seven and half per cent for scheduled tribes. In addition, a further 27 percent has been decreed for other backward castes. However, the liberalisation of marketsand global linkages have created transformation of attitudes towards human resource(HR) policies and practices (Khalilzadeh-Shirazi & Zagha 1994, Gopalan & Rivera 1997).Faced with the challenge of responding to the rationale of Western ideas of organisationin the changing social and economic scenario of Indian organisation, practitioners areincreasingly taking a broader and reflective perspective of human resource management(HRM) in India.

This manuscript has three main parts. In the first part is provided an overview ofimportant historical events and activity that has influenced contemporary managerialtenets, the second part of the manuscript describes the emerging contemporary IndianHRM practices and indicates some interesting challenges. Much of the second part isalso summarised on four informative Figures. The concluding section, the third part ofthe manuscript, succinctly integrates the two preceding parts.

Value of Context of HRM in India

The managerial ideologies in Indian dates back at least four centuries. Arthshastrawritten by the celebrated Indian scholar-practitioner Chanakya had three key areas ofexploration, 1) public policy, 2) administration and utilisation of people, and 3) taxation

and accounting principles (Chatterjee 2006). Parallel to such pragmatic formulations, adeep rooted value system, drawn from the early Aryan thinking, called vedanta, deeplyinfluenced the societal and institutional values in India. Overall, Indian collective culturehad an interesting individualistic core while the civilisational values of duty to family,group and society was always very important while vedantic ideas nurtured an innerprivate sphere of individualism.

There has been considerable interest in the notion that managerial values are a functionof the behaviours of managers. England, Dhingra and Agarwal (1974) were early scholars


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who contended that managerial values were critical forces that shape organisationalarchitecture. The relevance of managerial values in shaping modern organisational life isreflected in scholarly literature linking them to corporate culture (Deal & Kennedy 1982),organisational commitment and job satisfaction (OReilly, Chatham & Caldwell 1991), as

well as institutional governance (Mowday, Porter & Steers 1982). Thus, understandingthe source of these values and in particular societal work values (which link the macro-

micro relationships and in turn organisational practices) had become a popular line ofenquiry, and a great deal of evidence has been presented to support the importance ofnational culture in shaping managerial values. One of the most widely read formulationsof this literature is the seminal work of Hofstede (1980) who popularised the notion ofclustering culture in generic dimensions such as power distribution, structuring, socialorientation, and time horizons. In turn, these dimensions could be employed to explainrelevant work attitudes, job incumbent behaviours and the working arrangements withinorganisational structures. Two of these dimensions were individualism and collectivism.

The traditional social ethos from the ancient roots, which was developed over centuries,underwent profound transformation during the British rule. Consequently, in thecontemporary context multiple layers of values (core traditional values, individual

managerial values, and situational values) have emerged (Chatterjee & Pearson 2000).Though the societal values largely remain very much anchored in the ancient traditionsthey are increasingly reflecting corporate priorities and values of global linkages. But inthe arena of globalisation where priorities of consumerism, technological education,mass media, foreign investment and trade union culture predominate, newer tensionsare becoming evident. For instance, contemporary Indian multi national companies andglobal firms in India have started shifting their emphasis to human resources with theirknowledge and experience as the central area of attention in extending new performance

boundaries (Khandekar & Sharma 2005). Considerable research evidence attests to thistrend with particular relevance to greenfield organisations with little or no historical

baggages in their organisational culture (Settt 2004, Roy 2006).

Within Indian traditions the choice of individualistic or collectivistic behaviour dependson a number of culturally defined variables. The dynamics of these variables areunderpinned through three key elements guiding Indian managerial mindscapes. Thesethree constructs are Desh (the location), Kaal (the timing), and Patra (the specificpersonalities involved). Sinha and Kunungo (1997) claim that the interaction of thesethree variables determines the guidelines for decisional cues. This managing ornurturing of the outer layer of collectivism in an inner private sphere of individualism isexpressed in Figure 1 which demonstrates the behavioural anchors in Indianorganisational life.

Figure 1Behavioral Anchors in Indian Organisational Life

DECISIONALCUES Desh(place) Kaal(Timing) Patra(Actors)

SPIRITUALORIENTATION

Sattava guna(Virtue focus)

Tamas guna(Negative focus)

Rajas guna(Action focus)

INTERPERSONALRELATIONS

Sradha(Upward respect / Loyalty)

Sneha(Downward affection)

Bandhan(Bonding)

Figure 1 also presents another powerful insight of the Indian tradition of the notion ofGuna dynamics. According to Sharma (1996), this culture based framework, which has


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three types of gunas (attraction), is being increasingly used in employee assessment andorganisational team building strategies. The contention is that each guna is a separatecontribution to the core of human personalities. The Sattava (or truth orientation) is thesentiment of exalted values in people, organisations or society. Alternatively, theTamasik guna depicts a negative orientation which can be expressed behaviourally asignorance, greed or corruption. Those individuals with a Rajasik guna are inherently

driven by a desire to make a worthwhile contribution to their surroundings. Collectively,these spiritual orientations, which manifest as Sattava, Tamas or Rajas gunas, articulateas positive or negative HRM functions such as leadership, motivation or otherinstitutional behavioural activity. The third row of Figure 1 highlights the linking of HRMtrends to socio cultural roots. The culture of Sradha (upward loyalty) and Sneha(mentoring with affection) outline the behavioural anchors derived from thecivilisational roots. The acceptance of Sradha by youngers and the display of Sneha bythe seniors have been the root of sustainability of all types of Indian oragnisations. Thishas a striking similarity to the concepts of oyabun and kobun in the Japanese culturalcontext.

Contemporary India

In a recent survey of Indian CEOs, it was suggested that Indian managerial leaders wereless dependent on their personal charisma, but they emphasised logical and step by stepimplementation processes. Indian leaders focused on empowerment and accountabilityin cases of critical turnaround challenges, innovative challenges, innovative technology,product planning and marketing or when other similar challenges were encountered(Spencer, Rajah, Narayan, Mohan & Latiri 2007). These social scientists contend.

Leaders in other countries often tell about why they chose a peculiar person for a certainrole per task, detailing the personal characteristics that made that person right for thatsituation. They may also consider, in detail, how an assignment would help someonegrow and develop their abilities. In general, Indian leaders simply did not discuss how

they matched particular people to certain roles or tasks, nor did they usually consider indetail how the personal characteristics of individuals might shape or inform the best wayto influence that person. (Spencer, et al 2007:90).

Indian HRM in Transition

One of the noteworthy features of the Indian workplace is demographic uniqueness. It isestimated that both China and India will have a population of 1.45 billion people by2030, however, India will have a larger workforce than China. Indeed, it is likely India

will have 986 million people of working age in 2030, which well probably be about 300million more than in 2007. And by 2050, it is expected India will have 230 million more

workers than China and about 500 million more than the United States of America

(U.S.). It may be noted that half of Indias current population of 1.1 billion people areunder of 25 years of age (Chatterjee 2006). While this fact is a demographic dividend forthe economy, it is also a danger sign for the countrys ability to create new jobs at anunprecedented rate. As has been pointed out by Meredith (2007).

When Indias young demographic bubble begins to reach working age, India will need farmore jobs than currently exist to keep living standards from declining. India todaydoesnt have enough good jobs for its existing workers, much less for millions of new


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ones. If it cannot better educate its children and create jobs for then once they reachworking age, India faces a population time bomb: The nation will grow poorer and notricher, with hundred of millions of people stuck in poverty. (p.133).

With the retirement age being 55 to 58 years of age in most public sector organisations,Indian workplaces are dominated by youth. Increasing the retirement age in critical

areas like universities, schools, hospitals, research institutions and public service is atopic of considerable current debate and agenda of political parties.

The divergent view, that each society has an unique set of national nuances, which guideparticular managerial beliefs and actions, is being challenged in Indian society. Anemerging dominant perspective is the influence of globalisation on technologicaladvancements, business management, education and communication infrastructures isleading to a converging effect on managerial mindsets and business behaviours. And

when India embraced liberalisation and economic reform in the early 1990s, dramaticchanges were set in motion in terms of corporate mindsets and HRM practices as a resultof global imperatives and accompanying changes in societal priorities. Indeed, the onsetof a burgeoning competitive service sector compelled a demographic shift in worker

educational status and heightened the demand for job relevant skills as well as regionaldiversity. Expectedly, there has been a marked shift towards valuing human resources(HR) in Indian organisations as they become increasingly strategy driven as opposed tothe culture of the status quo. Accordingly, competitive advantage in industries likesoftware services, pharmaceuticals, and biotechnology (where India is seeking to assertglobal dominance), the significance of HRs is being emphasised. These relativities weredemonstrated in a recent study of three global Indian companies with (235 managers)

when evidence was presented that positively linked the HRM practices withorganisational performance (Khandekar & Sharma 2005). In spite of this trend ofconvergence, a deep sense of locality exists creating more robust cross vergence in theconceptual as well as practical domain.


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Figure 2

Drivers of Contemporary Indian HRM Trends

Figure 2 presents the key drivers for contemporary Indian HRM trends. In Figure 2 thereare four external spheres of intervention for HRM professionals and these spheres areintegrated in a complex array within organisational settings. The intellectual sphere,

which emphasises the mindset transaction in work organisations, has been significantlyimpacted by the forces of globalisation. Indeed, Chatterjee and Pearson (2000) argued,

with supporting empirical evidence from 421 senior level Indian managers, that many ofthe traditional Indian values (respect for seniority, status and group affiliation) have

been complemented by newer areas of attention that are more usually linked toglobalisation, such as work quality, customer service and innovation. The mostimportant work related attribute of the study was the opportunity to learn new things at

work. Such cross verging trends need to be understood more widely as practitioners face

a new reality of human resource development of post industrial economic organisations.

The other three spheres, of Figure 2, namely the emotional, the socio cultural and themanagerial domains are undergoing, similar profound changes. For instance, the sociocultural sphere confronts the dialects of the national macro level reform agenda as wellas the challenge of innovating by addressing the hygiene and motivational features of the

work place. Consequently, this sphere, which is underpinned by the anchors of Sradhaand Sneha, has the opportunity to leverage work setting creativity in dimensions ofautonomy, empowerment, multiskilling and various types of job design. And the


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emotional sphere, which focuses on creativity and innovation to encapsulate the notionsof workplace commitment and collaboration as well as favourable teamwork, bringsdesirable behavioural elements of transparency and integrity into organisationalprocedures and practices. The managerial sphere provides the mechanisms for shiftingmindsets, for in Indian organisations HRM is viewed to be closely aligned withmanagerial technical competency. Thus, understanding of the relativity of HRM to

strategic intended organisational performance is less well articulated in Indian firms.The current emphasis of reconfiguring cadres (voluntary and nonvoluntary redundancyschemes), downsizing, delayering and similar arrangements will become less relevant asholistic perspectives gain ground. A hallmark of future Indian workplaces is likely to be adominant emphasis on managerial training, structural redesign and reframing ofinstitutional architectures to achieve enterprise excellence. Thus, a primary role ofIndian managers will be to forge new employment and industrial relationships throughpurposeful HRM policies and practices. In Figure 3 is presented a variety of HRMpractices that are being employed in Indian organisations.

Figure 3Key HRM Practices in Indian Organisations

HRM Practice Observable Features

Job DescriptionPercentage of employees with formally defined work roles is very high in thepublic sector.

Recruitment

Strong dependence on formal labour market. Direct recruitment frominstitutions of higher learning is very common amongst management,engineering and similar professional cadres. Amongst other vehicles,placement agencies, internet and print media are the most popular mediumfor recruitment.

CompensationStrong emphasis on security and lifetime employment in public sectorincluding a range of facilities like, healthcare, housing and schooling for

children.

Training and

Development

Poorly institutionalised in Indian organisations. Popularity of training

programmes and their effect in skill and value development undeveloped.

PerformanceAppraisal

A very low coverage of employees under formal performance appraisal andrewards or organisational goals

Promotion andReward

Moderately variable across industries. Seniority systems still dominate thepublic sector enterprises. Use of merit and performance limited mostly toglobally orientated industries.

Career Planning

Limited in scope. The seniority based escalator system in the public sectorprovides stability and progression in career. Widespread use of voluntaryretirement scheme in public sector by high performing staff. Cross functionalcareer paths uncommon.

Gender EquityDriven by proactive court rulings, ILO guidelines and legislature provisions.Lack of strategic and inclusion vision spread.

ReservationSystem

The central government has fixed 15 per cent reservations for scheduledcastes, 7.5 per cent for scheduled tribes and 27 per cent for backwardcommunities. States vary in their reservation systems.

IR Challenge

The Indian IR system has two main features. First, is the absence of the provision torecognise a union as a representative or agent for collective bargaining. Second, is the


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total dominance of government in regulating the industrial relations (IR) domain.Though it is relatively easy for members of a work organisation to be registered as aunion under the law, it does not lead to the legal recognition by the employer in disputeresolution or bargaining process. This contention was made by Kuruvilla (1996) over adecade ago.

In terms of collective bargaining, industry wide bargaining occurs in certain industrieswhere the employers are organized, but bargaining otherwise is decentralised toenterprise level. Although there are no restrictions on the subjects of bargaining, theIndustrial Disputes Act of 1947 restricts the ability of employers to lay off or retrenchemployees or to close business. (p.635).

Indian industrial relations have evolved from political roots and labour market demands.An unique feature of Indian IR has been the dominance of political parties sponsoringunions. Union membership has been the most popular breeding ground for politicians,and political leaders have enjoyed the use of union platforms. Such politicisation hasgenerated conflicts and rivalry creating mayhem and the hurting of labour interest.Nevertheless, in spite of wage determination by central government boards, and ad hoc

industrial awards, enterprise level bargaining has yielded positive outcomes.Interestingly, during the 1970s in a period of the highest number of strikes, theregistered number of unions grew fivefold. But a decade later profound economic andpolitical reform movement saw a new direction in the trade union movement. A sectionof scholarly trade union leaders began to incorporate new global thinking in the unionoutlook.

Since the 1980s, the Indian industrial relations culture has been considerably impactedby the intensification of globalised markets. During this time and beyond, there has beena clear departure from traditional personnel management. The shift has not only been inthe general tone, but in the substantive visions. Adjustment to the global imperatives ofan emerging service sector, sunrise industries, and demographic shifts in competencies

has given rise to new thinking. In spite of most of the Indian labour laws beingentrenched in a world view that is very different to the current realities, and the obviousurgency for them to be updated to incorporate more flexible, competitive work systems,the built in rigidities are still proving a formidable obstacle.

The most alarming issue in the HR and IR context is the lack of job opportunities outsideurban areas where more than 70 per cent of the population lives. As has been pointed out

by Meredith (2007).

While Indian university graduates line up for jobs that can propel them into newlyvibrant middle class, per Indias rural and urban poor, change has been interminablydelayed. Expectations, like incomes, are rising across India, and not just for those

working in call centres. Even as the New India cohort thrives, much of the rest of India ismaking much slower gains or even being left behind, creating social and politicaltensions that cloud Indias impressive strides forward. The lowest paid workers in the offshoring industry those working in the call centres earn median wages of $275 a month.But most Indians still earn less than $60 a month or just $2 a day. (p.125).


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Technical Services Recruitment and Retention

There has been a dramatic shift in the expectations of employees in the organised andglobally linked sectors of the economy. An unprecedented rise in the disposable incomecoupled with a declining dependency ratio, has led to young professionals becomingextremely mobile. The problem is critically evident in the off shoring industry where the

average retention period of an employee is considered to be around six to eight months.And the retention of senior level executives is an additional challenge. The attrition ratesare highest in information technology (IT) (30-35%), business process outsourcing(BPO) (35-40%), insurance (35-40%), retail and fast moving consumer goods (FMCG)(20-30%), and manufacturing and engineering (10-15%) (Chatterjee 2006).

Over the past decade, there has been a sea change in the area of Indian technical servicesand the associated HRM practices of recruitment and retention. While the highereducation system in the country has remained overwhelming poor in infrastructure and

weak in becoming revitalised to grapple with the global imperatives, there has been amushrooming of private educational institutions. The recruitment problem is furtherdeepened by the emergence of a new culture of job hopping amongst employers who

can demonstrate their world class competencies. This phenomenon of turnover has seena chain reaction in entry level salaries, and an increase in graduates has createdsignificant social and economic disruption to the Indian labour market. A likely scenariofrom this rampant activity is that the Indian HR scene will be negatively impacted in thenext decade unless the deregulation and autonomy of the higher education sectors isinitiated somewhat immediately. An example of this widening gap between theuniversity system and market need has become a serious impediment in several newindustries in India. For an example, it has been reported in the popular press (Time2007), out of 13 million people who applied to work at IT company Infosys last year,

just 2% were qualified indicating a sign of stress in the university system that graduates2.5 million a year. (p.33).

One of the most concerning issues for HR managers in India is the high staff turnover. Inindustries like call centres, staff attrition is the single biggest issue. The industry hasgrown from zero employment to an employer of quarter of a million young Englishspeaking, well educated and ambitious people. The point is well made by Slater (2007),

who wrote.

Attrition is highest in traditional customer service jobs, where young people findthemselves having to spend all night on the phone, often with irate callers. In other areassuch as claims processing or accounting, the turnover rate is much lower. More worryingfor many companies is the merry go round in supervising and management jobs, as newcenters are only too willing to pay higher salaries to hijack experienced staff. (p.34).

The issue of retention is much more critical in the high value adding BPO sector such asR&D activities. This $40 billion industry has one of the highest attrition rates of around20 to 25 per cent. The service laden BPO and Hord industry have the highest attritionrates. Many companies are developing innovative incentive packages in countering this

job hopping phenomenon. Figure 4 illustrates some of these initiative by leadingcompanies in India.


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Figure 4Examples of Retention Strategies for young Professionals in Indias BPO and

Services Sectors

Name of theCompany

Retention Strategy Impact

TataConsultingServices(TCS)

A choice of working in

over 170 offices across

40 countries in a

variety of areas.

Paternity leave for

adoption of a girl child

Discounts on group

parties

Significant

impact on

job hopping

achieved

ICICI Bank

Identification ofpotential talented staff

Alternative stock

options

Quicker promotion

Have been

able to

achieve

higher

retention

rate

WIPRO

Wings Within

programme where

existing employees get

a chance to quit theircurrent job role and

join a different firm

within WIPRO

Has led to a

higher

retention

rate

INFOSYS

Fostering a sense of

belongingness, creative

artistic and social

activities for the

employees and their

families.

Initiating one of the

best corporate

universities in the

world

Moderate

Retentions

rate increaseachieved

Microsoft-India Excellent sporting and Struggling to


29/30

Figure 4Examples of Retention Strategies for young Professionals in Indias BPO and

Services Sectors

Name of theCompany

Retention Strategy Impact

wellness facilities

Employees allowed to

choose flexible working

schedule

Moving people across

functions and sections

in assisting employees

find their area of

interest

minimise job

hopping

Mahindra & Co

Culture change valuing

innovation and talent

over age and

experience

Institutionalising a

practice called reverse

mentoring where

young people are given

opportunities of

mentoring their seniors

Stabilised

job hopping

significantly

A dramatic shift in recruitment practices has been taking place as globally pretendIndian companies as well as global technical services rivals have made India a battlefieldof recruitment for the best workers. For example, IBMs workforce in India has morethan doubled in two years to a cadre of 53,000. This outcome has come with theelimination of 20,000 jobs in high cost markets like the U.S., Europe and Japan. TheR&D centre of IBM is staffed by 3,000 world class engineers and is being recognised forits ability to innovate on all areas from simple processes, softwares, semiconductors as

well as supercomputers. It is interesting to note that IBM has dominated the recruitmentmarket in technical services in India during 2006. This leading company recruited10,000 employees out of a total of 25,000 people who were recruited to the technicalservices industry. The prominence of IBM as an employer of technically qualifiedpersonnel has been acknowledged in the popular press (Business Week 2007).

In Pune, a rapidly developing IT centre near Mumbai, the company has been dispatchingvans with signs saying, IBM is hiring, to the gates of the rivals at lunch time. Their hitrate is pretty good laments a manager at a tech firm that has lost employees to IBM.


30/30

Conclusion

The World Competitiveness Report rated Indias human resource capabilities as beingcomparatively weaker than most Asian nations. The recognition of world class humanresource capability as being pivotal to global success has changed Indian HRM culturesin recent years. While the historical and traditional roots remain deeply embedded in thesubjective world of managers, emphasis on objective global concepts and practices are

becoming more common. Three very different perspectives in HRM are evident. Firstly,Indian firms with a global outlook; secondly, global firms seeking to adapt to the Indiancontext; and thirdly, the HRM practice in public sectors undertakings (PSVS). As theIndian economy becomes more globally linked, all three perspectives will moveincreasingly towards a cross verging strengthening. Interestingly, within the nationalcontext, India itself is not a homogenous entity. Regional variations in terms of industrysize, provincial business culture, and political issues play very relevant roles. The natureof hierarchy, status, authority, responsibility and similar other concepts vary widelyacross the nations synerging system maintenance. Indeed, organisational performanceand personal success are critical in the new era.

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