A STUDY OF HRM PRACTICES AND ORGANIZATIONAL
CULTURE IN SELECTED PRIVATE SECTOR
ORGANIZATIONS IN INDIA
1. Executive summary
The new economic environment is primarily marked by the freeing of shackles for entrepreneurship and economic growth. The “license system” has been replaced, to a great extent, by a “market system”. The challenge of Human Resource Management (HRM) practices would be to create an environment of resilience, which can accommodate and assimilate successfully changes in systems, structures, technologies, methods, etc. People would have to ascribe the right meaning to the change process. India is well-equipped to succeed on global markets. It has a pool of highly educated people, a well-developed judicial system, democratic governance, an established banking industry, and fairly sophisticated and inter-linked fi nancial markets. Knowledge industries will be at the vanguard of economic opportunity, and India will be poised to take advantage of this trend with its corpus of highly skilled people. The changes on the market scene have necessitated the Indian industry to look inward for the development of human resources (HR). People develop themselves in a globalized scenario with new directions along with new problems and issues arising to develop new competencies to meet the changing requirements, aspirations, and problems. There are, however, some universal goods towards which all human resource management efforts should be aimed at. The emergence of Japanese human resource management has led to the concept of culture in a big way. At the organizational level, the goal of HRM is normally to have competent and motivated employees to ensure managerial effectiveness and growth of the organization. Organizations normally direct their HRM efforts towards the development of competencies and organizational culture. Organizations use mechanisms to achieve HRM goals with competent and committed employees. Organizations can achieve very little even if they have excellent technological and other resources at their command. Such an assertion gains better credibility in the context of developing countries like India, that is, typically in early growth stages in terms of economic development, and growing more rapidly than the ‚traditional‘ developed economies of Japan, North America and Europe. The countries with higher rates of growth are mostly in South East Asia, South Asia and some Latin American countries.
Research evidence shows that HR practices along with culture do affect effi ciency in the organization. There are hardly any or very few studies which show a link between HRM practices and organizational culture in India. The review of literature has identifi ed that the major chunk of research in India emanates from descriptive data and experience sharing, which does not serve certain practice-oriented concerns. There is very little systematic, empirical research in the scientifi c paradigm that has been carried out in the Indian HR lexicon. HR research is inspired by western models, and lacks an indigenous perspective. The review of literature on HRM practices has revealed that the most of the work done is in relation to organizational strategy. The methodology employed a sample of 95 respondents from two private sector organizations. The questionnaire consists of 90 items, of which (1) 69 items concern HRM practices of the organization, and (2) 21 items concern organization culture. The correlation analysis has been used to infer the relationship between variables of HRM practices and organizational culture. A healthy culture is required for utilizing and enhancing employee competencies and to develop people. This study focuses on the positive signifi cant relationship between HRM practices and organizational culture in private sector organizations. There is a positive signifi cant relationship between HRM practices and variables of organizational culture operationalised in terms of self-realization,...