India is the world's second-most populous country with 1.2 billion people, and has a workforce of 502.1 million, which means that there are a lot of workers and it can be difficult to generalize working conditions with this many workers and in such a diverse country. There are some unique labor force characteristics worth taking into consideration. The first is diversity -- India has many different cultures, religions and languages. There is a high degree of economic stratification. There is a large pool of child labor, estimated to be 26.9 million. Only around 2/3 of Indians are literate. The nation's median age is around 27, so the workforce is fairly young (CIA World Factbook, 2016). The largest employers are government agencies, such as the national railway system, and many Indian states have histories of socialist or even Communist leanings, as does the country as a whole.
Legal Framework
The legal framework for HRM in India is messy, and complicated. Theoretically based on the system inherited from the British, and therefore not too far from the American system, and close to the UK, Canadian and Australian ones, India's system also bears the influence of Hindu or Muslim traditions and the unique Indian social context (Rao, 2015). This can make it somewhat less predictable than it otherwise should be. As such, the legal system has traditionally been poor with respect to its ability to defend workers' rights, leaving such matters into the benevolence of the employer, for better or for worse (Cooke & Saini, 2015). There is a case to be made that strategic HRM principles will become more important going forward, because the legal environment will continue to be poorly-developed but competition for talent will increase as the country's economy improves.
Business Culture
The Hofstede cultural analysis is a high power distance culture, which defines the relationship between supervisors and subordinates. Subordinates typically do not challenge superiors, and do not feel comfortable making decisions. Power distance has a strong influence of HRM practice in India. India has moderate scores for individualism and masculinity, but a high score for time orientation. What these factors mean is that in India, people are...
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