HR practices are becoming the one of the vital factors for companies of any size, to experience the growth factors. It is a scenario where the companies are trying their best to ensure that a well structured HR practices are put in place in the company which can help them in understanding the employees and intern making them employees understand the requirements of the company and can work together to achieve the organizational objectives which can help the companies and also the employees have a great professional going.
In this study, the objective of us will be to understand and review about how HR practices will increasingly become convergent across the countries. With the prevailing scenario, taking an attention of globally all the companies will need the necessary work to be in the macro picture, which might gives us a detailed overview whereas some basic instincts which will be there in the micro picture shall be overlooked. Hence we have opted to look in to the micro picture of the HR practices among the South Asian countries which can help us gain a deep insight in to the study of HR Practices.
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In the recent past, many countries like India, Sri Lanka, Pakistan and Bangladesh are reflecting their corporate environment heading towards more professional approach to to the HR management practices. Despite of such efforts, there is always the hurdles which arise from the scenario like, irregularities in the duties from the employees, influence of labor unions by external societal factors, poor productivity and unsatisfactory performances, un rational approach, poaching etc. are some common attributes which are hindering the HR process of the companies.
The south Asian countries have a huge talent pool which can serve the entire gamut of requirements from any level of expertise; still the companies are having a disadvantage with them of unused of the resources because of the prevailing Socio-Economic conditions. Many corporate in these countries express their dissatisfaction over the prevailing conditions, and also interestingly they lay back to their attitudes rather than setting the things right in the act.
In recent times, a lot of efforts have been taken to explain the ineffective deployment of human resources in India (Kanungo & Misra, 1985), Bangladesh (Miyan, 1991), and Pakistan (Qureshi, 1986). All this approaches to the issues, has elevated various perspectives for our reasoning, but fall out for framing a system based approach rather than gradually work on the study of good practices in human resource management (HRM). Gaining our confidence from such an earlier attempts this study reflects and explores the possible HRM practices which relate such practices in enhancing the productivity of the employees and also the effectiveness to the companies.
The facts exhibited in the study are based on some detailed inputs from case study approach, excerpts and expert opinions about organizations in South Asia. The qualitative analysis of the given objective frame work has lead us to many conclusions that shall become the basis for advance study in future. The study also reflects some inputs to management to devise their upcoming action plans to improve HRM practices.
A FRAMEWORK FOR STUDYING HRM PRACTICES
Human Resource Management has never seen any kind of importance from the corporate of earlier decades in many countries of South Asia. Basically, this is the result of the previous orientation and the past procedures of look at human resource management only as an employee issue management like labor laws or union management. On the other hand, during 1960s companies initiated to create personnel departments to supervise internal human relation issues. Whereas, these departments has continued to restrict themselves to the extent of managing the labor and the workforce management. Apparently, these was in reaction to the peripheral labor market circumstances as the labor unions had occupied a very significant role, and also were highly politicized, and was getting tough to control or monitor.
In recent past, much of the companies looking forward to restructure their HRM functions ensure that adequate level of care is addressed to ensure that the HR practices are in place. In many of the big sized companies human resources departments are heading a more dynamic role in areas such as recruitment, selection, training, regular administrative functions, welfare activities etc. However, their key accountability remnants to formulate feat plans to manage unions, and on the cost effectiveness by reducing the workforce. Simply in extraordinary cases, few farsighted business enterprises as well as some multi national companies keeping their business expansion plans and the requisite diversity and equality issues in considerations pushed their HR departments towards enacting the responsibility of culture builders by reducing the gap amid of management and employees for long-term performance gains mutually.
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Most of the companies have begun to comprehend that HR managers must take a hands-on role reliable with two tress of thinking in the in progress of HRM. First emphasis should be on the affairs connecting HRM practices and their impact on the towards the s motivation and performance of employees, on the effectiveness of the firm, and also ahead the culture as a whole (Scarpello & Ledvinka, 1988). The second factor emphasis the magnitude of relating HRM practices and their company's corporate culture (Ulrich, 1990). The thought at this juncture is to effectively utilize HRM practices to develop a mindset which can be influential in creating the competitive advantage. Ulrich (1990), has also recommended to share HRM practices to business structures with a view to underneath the required organizational competence in a cutthroat competitive environment. Despite of developing such understanding of the necessity for HRM practices, many of the south Asian organizations has very diminutive role to evaluate the success of their present practices or to amend them in the radiance of such reviews. Evaluation efforts are missing as management in these companies have no clue as to how to go about or agenda in stipulations of how to assess HRM practices in the organization. Developing the adequate structure of framework is a necessary prerequisite for organized review and assessment of HRM practices.
The study approach which we incorporated to undertake the study of HRM practices in organizations has been the learning outcome of the previous researchers, the excerpts and the professionals who are seasoned in the domain of human resource management and also from some industrial management bodies. The development to this extent is also prejudiced by the accessible HRM literature which reflects the significance of understanding five key functional dimensions of HRM. Therefore, the structure we used for our study led us to see the insights prevailing HRM practices:
(1) Organizational Policies and Procedures,
(2) Organizational Culture,
(3) Performance management,
(4) Reward systems, and
(5) Organization structures.
The force of these practices on human resources efficiency was also assessed.
Management practices connected to organizational policies comprise the procedure of recruitment and selection of human resources taken up by an organization. This procedure plays a very essential role in HRM policies as it allows an organization to identify and catch the attention of the required human resources to gain the advantage of retaining a very competent talent pool with the company to face any challenges. (Ulrich, 1990).
Organizational socialization policies refer to the procedure of initial ambience and support to new employees to the organizational culture. However it involves understanding new roles, rules, and organizational culture is the responsibility of new employees. This process is essential as through it the new employees will obtain 'first impressions' about the organization which shall influence their subsiding and adapting to the work cultures of the organization. Also, the initial impersonation of organizational norms and procedures as informed by the management are rapidly internalized by the human resources and guide their expectations to work-related behavior (Feldman, 1988). Although some writers (Wanous, 1992) build dissimilarity amid socialization and orientation activities, meant for the rationale of our study point of reference.
On the whole the performances of management practices reflects to the process of situation and communicate performance targets, indicating evaluation criterion to be engaged at varied stages of performance, reviewing performance, responsive feedback, and aiding corrective measures to take away performance snags (Mendonca & Kanungo, 1990).
Management a method regarding to reward composition reflects about both the kind of rewards presented to employees for their appreciable performances and the managerial system of the rewards supervision. For example, rewards could be financial (e.g., wages, benefits) or non-financial (e.g., autonomy, achievement). Hence rewards could be managed in performance dependent or non conditional manner (Kanungo & Mendonca, 1992). Management practices connected to reward system are decisive in shaping the level of employee performance.
Practices linked to organization structure indicate the pattern of formal contact among divisions of an organization. This include the scope in which a range of task proceedings are assigned to diverse well-designed groups in the organization, the demeanor how these separate task behavior are synchronized, and the ways power, position, and hierarchical dealings function inside an organization. Formal structure is regularly described in terms of pompous policy, actions, and reins that show the activities and relations of group in the organization (Kast and Rosenzweig, 1979). since business structure directly affects the commitment and morale of employees through authority pattern and management styles, they have implication for employees routine in an organization.
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The data on HRM practices were collected from various organizations from the south Asian countries, and the case studies with the reflections and revelations from various experts and academicians who studied the cases and put up their analysis has been reviewed as secondary source of information to evaluate the necessity of the good HRM practices which can help the companies in shaping up a good workplace for its employees which can help them retaining good talent pool. . Adding up to these case studies, certain stake holders interviews has also been taken in to consideration which can help us in gaining a better insight. (see Tables 1 & 2).
Multiple sources of observations, cross-case analyses, pattern matching, and the use of case study protocol provided a fairly reasonable basis for drawing a set of qualitative inferences from the data. In what follows, we describe the management practices in the five key HRM areas and the effects they have on employee motivation and associated work related behavior. In the final section of the paper we draw some practical inferences for developing an Action Agenda HRM and training of HRM professionals.
Organizational Entry Practices
Management practices in the domain of recruitment process were found to be unlike in South Asian organizations. On the other hand, three dominant matters in such systems could be discerned. One set of practices emphasis staffing on the foundation of merit alone. The other such set of practices emphasis the impact of personal and/or social clout of higher while employing employees for various jobs. Finally, the other set of selection processes was based the conglomeration of merit and opportunity costs.
The merit-based staffing practices were usually seen in companies belonging to multinational corporations. The individual clout-based practices were common frequently in local organization. For example, in most cases selection interview were report to be the reproduction basis for the use of power. So most respondents were different to selection interview and privileged written tests. Even when the on paper tests were measured no assurance to ensure collection on value, these were privileged over interviews. In some organization where supervision was fully dedicated to adopting merit decisive factor in entry decisions, they used interview to depiction those who had tried to utilize higher influence for selection. But such cases were the exemption somewhat than the rule.
Many companies started using conglomerated approach. For example, in one company it was reported that despite the fact there are lot of systems and policies in place to test the credibility and the worth of the individual and the competency mapping for the job profile for which the company is looking at the individuals, these tests were contrive in a form, that those with authority always cleared this early hurdle to entry with out any impact of their suitability. In one more case concerning to a big public sector company where the organization could conduct relatively good entry barriers with appropriate, tests etc, they were under pressure to rearrange the test process to have room for certain persons belonging to the citizenry of a powerful politician. When the management insists to maintain the truthfulness of their entrance procedure, the important official threatened to pull some controlling consequences. The management attempted to conciliate the important politician by axiom that they would let him be acquainted with in go forward whether or not any one on or after his supporting constituency had empty the test. Most perhaps, this would have acceptable to claim that he was active in serving candidates from his constituency to meet the criteria the written test. In hitherto one more case connecting an institute of education where the administration had to resist all external demands in its staffing efforts; it was persistent to be given covert intimidation from a few key functionaries. Since the executive committee of this organization was fully dedicated to maintain the honesty of its admission practices, it had been sturdy to endure all types of outside influences. Despite that the fact got revealed, still several people found it shocking and could not get convinced with the facts they heard. Our analysis point out those entry procedures in organizations in South Asia has unconstructive influence on human resources. These influences apparent themselves in many ways. First, individuals who get into a company by his credentials consider that their opportunity rise in the job position would not happen merely on the base of their performance as they find a lot of other workers who enter the group in the course possible back door entries. Most of the times good performances remained unrewarded. This observation negatively affects their performance. Next, the entry procedures depending on basis of special influence might lead to sensitivity of biased management practice. The other factor, the admission practices also create imperceptible gaps and splinter groups in the organization heading to concealed indictments and counter-accusations. Normally, these accusations speak about to 'who's preferred a meticulous employee was.' Regrettably, the organization on its division does not put together any labors to eliminate such observation.
All of the higher than adds up to creating hurdles which avert an organization from structure competence and identify function models of performance so indispensable for improving their cutthroat force. So, we could conclude that if South Asian organizations required contending successfully in the modern extremely competitive milieu, the crux would be laying emphasis on ensuring a stringent recruitment procedures in place, which can serve them only a right talent which can suit their job requirements and this has to happen with out any influence from any sort of intriguing factors.
Performance Management Practices
A detailed study of performance management practice recommended that companies have a well structures and robust performance management system. Most of them have implemented the management by objective move towards to performance management. These companies have the system of creating a detailed job description as they implicit that not including the documents appropriately briefing the jobs, defining performance goals might be a upheaval. Additionally in these organizations, the execution of such a scheme was preceding by methodical instructions to managers who make use of this system. A strict feedback mechanism is structured to be an integral part of evaluation process in the organizations. These organizations had also adopted conventional methods to evaluate performance of their planned business units and also the entire organization. Nevertheless, the group and serviceable units couldn't be subjected to any proper appraisal in these organizations.
In difference to global companies, many of the national companies pursue either a semi prescribed or completely casual system. Up to now, in numerous organizations where the figure of professional managers was rising, the need to adopt formal system of performance supervision was also rising. This changeover though is not going away to be a simple task as of the customary administrative beliefs.
According to some experts view " many line managers believed that the formal system was too cumbersome and Byzantine to implement. A manager in a local company said, " When I know the performance of my subordinates on day by day basis why adopt a formal system which turns out to be both extremely difficult and inflexible to implement." In the past this company had tried out a formal appraisal form only to discover that its line managers found it difficult to use. Consequently, the management decided to revert to its old informal appraisal policy. In another company a manager pointed out, " adopting a formal appraisal system is a far cry because we don't have any job descriptions which constitute the basis of a formal system.""
In more than a few other companies the conception of feedback was unknown to the management. Despite the effort to creating awareness, it was tried in a quite unproductive manner. Hence, in the majority organizations that had attempted the feedback system, more pessimistic thoughts has risen in its place of positive stimulus to surmount performance gaps which were generated. According to one manager, "giving feedback in our organizations is the most difficult thing to do as our subordinates are emotionally not ready to accept any negative remarks." In the words of another manager, "the nature of my relationships with my juniors has grown to a point where it is very difficult for me to give face to face negative feedback to them. Even socially, it is considered a taboo to give adverse feedback to people who have worked with you for a long time."
Apprehension of employees' response to depressing feedback repressed most managers to present feedback about their employee performances
Apart from the global companies, in many of the local companies, the rewards be professed neither unbiased nor dependent upon performance. For case, in relatively a hardly any organizations an oft-repeated remark was "our payment system is ceremonial. We pursue annual percentage increase like a government group. It wasn't matching with the rapid change which is eluding the market conditions." one more comment in these organizations is about same percentage of annual increase for everyone in the group, because of which there is no stimulus to do a superior job. In quite a few other organizations the pay seemed to be both unfair and reliant upon personal dealings rather than performance. Remarks like " I don't know the basis on which my salary was decided. My company has had no revision of salaries since long" were quite common.
Our interpretations additionally showed that in many local companies the non-financial rewards were intermittently treated. To exemplify, promotion assessment mostly lacked purpose criterion. No proper evaluation of employee latent for senior level job was completed prior to captivating promotion decisions. In most local organizations even a unwritten admiration for good work was seldom seen or recorded. Lack of neutrality in crafting incentive systems and letdown to use them to encourage performance were affirmed to be some widespread issues. Dearth of market data as well perplexed the trouble for a lot of start up companies in the creation of their reward systems.
Management in many of the companies given no efforts to rectify the differing perceptions pertaining to the reward system. Subsequently, the objective for which rewards system are structured were not evidently brought out in most companies. For that reason, organization was generally naive whether or not their compensation practices are serving to attain the anticipated goals. Third, in the majority companies no straight relationship was pragmatic among performance and distribution of yearly rewards such as additional compensation or acknowledgment. The predicament becomes more agonizing for workers in the nonexistence of a reliable appraisal system. These consequences propose that in the majority South Asian organizations workers felt a sagacity of unfairness and futile to see the bond between an persons hard work on the job and the rewards together monetary as well as non financial dependent ahead that effort. Thus, in these organizations rewards couldn't serve as stimulus s for performance improvement.
Organization Structures Practices
Most organizations were ordered on the belief of key in direction in which reserve intake and normal in commission procedures were highlighted. Output compass reading or performance fallout barely matter. System of government thrived with unreliable degrees of area of odd jobs, and a big amount of decision-making layers. The high arrangement was necessary to offer promotional chances. Habitually added decision-making layers be created devoid of any view for the magnitude of the company. This type of 'over layering' had numeral effects. First, also various layers had resulted in extreme duration of the plumb succession that cause impediment in decision making. Next, with the majority of the organizations affliction from extreme centralization, assessments heap up at the top because most of the tribulations and decisions are referred up the chain of command.
Many managers across diverse serviceable units in unlike organizations uttered a regular complaint: little lateral assistance amid function units. For occurrence, on every occasion assistance was wanted transversely functions, people often declare "it is not my job." Functional units in the majority organizations cover crooked to impermeable compartment neglecting their role and the inter dependency that are probable for the attention of the whole association.
Across all organization there was extreme dependence on authority and manage for corporate governance. In fairly a few organizations a common umbrage was perceived for the non-participative character of organization. The superior management warranted the use of their dependence on control values to handle employee's indiscipline, and to uphold satisfactory performance levels. Hitherto, management faces significantly complexity in exercise effectual control as they lack of sufficient performance management system.
Middle and lower rank managers were fairly spoken concerning deliberation of power at the top management level. A lot of managers nitpick that they were not even well-versed of several very imperative decisions and with the purpose when they come to know of these only from side to side the gossip. Present was not to a great extent information sharing among the senior and lower levels of organization. This had clearly shaped a reaction of being left out'. This emotion had led to unenthusiastic motivational blow that had straight deportment on the routine of the employees.
A order of structural dualism has become aware of in nearly all organizations. This pertained to the coexistence of completely contrasting systems inside many companies. Whereas at the top management level the structural outline was preeminent characterized as relaxed, and inductive, at the lower management levels the arrangement was formal, authority based, and hierarchical. On the affirmative side, the over structural system had turned the higher management team much more organized group when compared to the other levels. On the other hand, these have moreover shaped long authority aloofness among the various levels of management. The force of this authority detachment was mainly noticeable in the lower level employee's sensitivity of hostility from the organizational choice making and information sharing. In cases anywhere devolution of authority had been put into practice at first, it was later on inhibited due to synchronization tribulations across different functions.
Surprisingly, in large number of organizations, management relied a lot on their supervisors. and yet they were given very little importance in the hierarchy. No systematic and need-based efforts were made to train them for improving their supervisory effectiveness. Most of the supervisors lacked interpersonal skills and were unable to develop cordial working relationships with their workers. Overall, the analyses of the organizational structures in South Asia suggests that the prevalence of bureaucratic and mechanistic structure makes the local organizations slow to respond to environmental demands. In additional, reliance on standard operating procedures, formal authority, and vertical chain of command for control of employee performance provide a relatively low degree of autonomy and freedom to employees in their jobs. In addition, team spirit, the hallmark of South Asian culture, was rather low within the corporate culture.
The emerging circumstances
Whilst the HRM practices in the five key areas as detailed above were put mutually, three prototypes emerge. Depending on this pattern, it become obvious so as to in South Asia three types of organizations is in service concomitantly. They could be briefed as the specialized, the prismatic, and the customary types (see Table 1). The specialized organization primarily follow person value as the basis of their managerial entry decision, managerial socialization on a well-conceived direction program, performance management based on dependable and valid assessment process, evenhanded reward system dependent upon performance, and group formation which enhance human resources participation. Conventional organizations, on the other hand, had mainly adopt social and political power as the sole for their entry decisions.
The qualitative analysis of the information since the study report in the preceding sections position in two guidelines. First, the conclusion of the study requires further experiential corroboration, and next they give a future scheme for decision-making action. On the basis of our analysis of South Asian organizations, we would like to offer the subsequent proposal for corroboration in future research.
That on the foundation of managerial practices in HRM areas, organizations can be classified into specialized, prismatic, and customary types. And, that in South Asia the majority of them are of prismatic and traditional types.
Those employees in prismatic and traditional organizations shall lack the potential and inspiration which might have severe performance cost at the personage, serviceable unit, and venture levels.
That amalgam organizational entry practices be able to turn workers from initial enthusiast to later inert.
That managerial socialization is unnoticed in the majority local organizations. Nonetheless, the structure of 'first impressions' regarding an organization can impinge on the work inspiration of employees.
Those informal appraisals due to their stumpy reliability de motivate good performer and so as to official appraisals with no guidance line mangers would be tough to execute in most limited organizations.
That in the lack of fairness in the compensation systems and also due to the performance - compensation non eventuality, several organizations be unsuccessful to attain better performance from their employees.
Such kind of organization structures which rely extremely on authority and control create 'feudal mentality.' As a end result most organizations include more chiefs than managers. And, to facilitate below such arrangements still those being commanded might also like to command rather than performing their duties.