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If we look at the
history of human resource management, we find out that most human resource
theories, literature and practises were originated from western countries. Due
to globalization there is now a trend of diversified culture in organizations.
The Human resources management practises in United States are different from
the practises that are followed in India. It is not just the case of US and India;
it differs from country to country. The increasing cross-cultural interaction
and globalization depicts the differences in Eastern and Western cultures. The
human resource management practises rely on the culture of that country.
Each country has its
own values and they need to be strictly followed for successful human resource
management. There is difference in leadership style and employee management in
Eastern and Western countries. Organizational hierarchy is strictly followed in
Eastern countries while in west democracy tends to be high among organization
leaders. There is also a difference of rewards and career development in
Eastern and Western cultures. Eastern countries follow the steady growth and
collective compensation package system. In West they focus on the growth of
individuals career development and set compensation packages accordingly.
In this proposal we are going to discuss the
HRM practices being followed in US and India and whether we can implement US
HRM practises into India or not. India has long been in the influence of
Western culture. There are large number of multinational companies present in
India that show influence of US HRM practises. Although these companies are
operating in India, they strictly follow their culture and values. Current
changes in Indian HRM practises can be attributed to economic liberalization in
1991. Since then Indian economy has seen boom in industrial, financial and
trade sector. In recent times India has become one of the fast-growing
economies of the world. There are now several renowned Multinational Companies
(MNC) are operating in India. These foreign companies have influenced the HRM
practises being followed by local companies. They are now moving towards more
structuralized and development focused HRM approaches.
Organizations are going
global rapidly which is giving rise to complexities in International HRM(IHRM)
practises. Organizational structures are going through transformations to meet
the geographical needs of the area. The Organizations need to adapt to these
changes to be competitive in ever changing landscape of business. In order to be
remain competitive an organisation must employ talent from all over the world.
It can do this by effectively implementing HRM strategies that cater to the
needs of global market. Multinational Corporation (MNC) these days are using
IHRM practises to ensure success.
US HRM strategies differs a lot from India’s HRM strategies because of cultural differences and values of the country. Although India is still adapting to the changing nature of IHRM it is still needs to be discussed either we can implement US HRM strategies in India or not.
References of Global HRM Strategies that Effect Eastern and Western Countries
Olga, N., & Brewster, C. (2016). The impact of
national context effects on HRM practices in Russian subsidiaries of Western
MNCs. Journal of East-West Business , 1-27.
Vokić, Pološki, N.,
& Klindžić, M. (2018). Changing HRM practices in Croatia: Demystifying the
impact of the HRM philosophy, the global financial crisis and the EU
membership. JEEMS Journal of East European Management Studies, 323-344.
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