Global Human Resoruce India
Overview East Computer Company has evolved into a global producer of INM clones from an initial set up of manufacturing them domestically. ... For this purpose, it proposes to set up a manufacturing facility in India. We are assigned the task to study the personnel policies and the environmental factors in India that might affect the existing personnel policies followed by the Company in US. Environmental factors that would significantly influence the HRM practices in India in contrast to US Socio-cultural and economic trends • A large and rapidly growing consumer market up to 300 million people, constitute the market for branded consumer goods - estimated to be growing at 8% per annum. ... • Though there has been a many ups and downs, but India has managed to grow at an average rate of more than 4% over last decade with a per capita income of $444 in 2000, which is a 33% increase as compared to $331 in 1990 (Please see annexure 1 for other economic trends) • Indias labor force is growing at a rate of 2. ... In urban India, contract and sub-contract as well as migratory agricultural laborers make up most of the unorganized labor force. ... Political issues • India suffered political instability for a few years due to the failure of any party to win an absolute majority in Parliament. ... • The political divide in India is not one of policy, but essentially of personalities. Economic liberalization (which is what foreign investors are interested in) has been accepted as a necessity by all parties including the Communist Party of India (Marxist). • Thus, political instability in India, in practical terms, posed no risk to foreign direct investors because no policy framed by a past government has been reversed by any successive government so far. ... It would take an extreme stretching of the imagination to visualize a Bangladesh-type state-disrupting revolution in India or a Kuwait-type annexation of India by a foreign power. • Hence, political risk in India is practically non-existent.