What are the special problems faced in an Indian company to make the Human Resource Management function more successful?

Q. What are the special problems faced in an Indian company to make the Human Resource Management function more successful?

Ans. Indian Companies basically face two factors viz Internal and External that pose a problem in the smooth functioning of HRM function.

External Factors.

1. Government policies: Policies of the government like labour policy, industrial relations policy, policy towards reserving certain jobs for certain communities.

2. Level of Economic Development: Level of economic development determines the level of HRD in the country and thereby the supply of human resources in the future in the country.

3. Business Environment: External business environmental factors influence the volume and mix of production thereby the future demand for human resources.

4. Information Technology: Technology has made an amazing shift in the way to conduct business. These shifts include business process re-engineering, supply chain management etc. It also reduces obsolete machinery and traditional human resources. However in latter stages it eliminates many categories of labour and reduces existing human resources.

5. Level of Technology: Level of technology determines the kind of human resources required.

6. International factors: International factors like the demand for and supply of human resources in various countries.

Internal factors:

Human Resource Policies: Human resource policies of the company regarding quality of human resources, compensation level, quality of worklife etc.

Job Analysis: Fundamentally human resources plan is based on job analysis. Job description and job specification.

Time Horizons: Companies in an unstable competitive environment can plan for only short tern range. They have to face new competitors. Rapid change in socio and economic conditions. Small organization size, poor management practices. Unstable product/service demand patterns.

Company’s Production/Operations Policy: Company’s policy regarding how much to produce and how much to buy from outside to prepare a final product influences the number and kind of people required.

Trade Unions: Influence of trade unions regarding the number of working hours per week, recruitment sources etc. affect human resource management function.

             Company Strategies: Company policies and strategies relating to expansion, diversification,      alliances etc. determine the human resources demand in terms of quality and quantity.