India's HRM Environment
India is often regarded as one of the world's most fascinating growing
economies. Apart from being a worldwide outsourcing powerhouse, Indian
enterprises are expanding globally through mergers and acquisitions. During
the first four months of 1997, Indian corporations purchased 34 overseas
enterprises for around US $11 billion. This strong growth has been attributed
to increases in inputs (capital and labor) as well as factor productivity. By 2020,
India is predicted to add around 250 million people to its labor force at a rate
of roughly 18 million per year, which is more than Germany's whole labor
force. This so-called "demographic dividend" has piqued the attention of
Indians in Human Resource ideas and practices. This study examines significant
evidence of economic organizations and management concepts from ancient
Indian sources with lasting traditions in the context of modern concerns.
Introduction
India has absorbed managerial ideas and techniques from all across the world
over many years. Early trade records, dating from 4500 B.C. to 300 B.C., reveal
not only international commercial and political ties, but also concepts about
social and governmental administration. Many parts of human resource
practises in Ancient India were formalised in the world's earliest management
text, termed 'Ardhashastra,' which was authored three millennia before Christ.
This work addressed ideas about state financial administration, guiding
principles for trade and commerce, and people management.
These concepts would be ingrained in organisational thought for generations
(Rangarajan 1992, Sihag 2004). By 250 A.D., increased commerce, including
involvement with the Romans, had resulted in widespread and organised
government practises. The first Indian kingdom, the Gupta Dynasty, supported
the formation of norms and regulations for administrative systems during the
following 300 years, and later, from around 1000 A.D. Islam had an impact on
many aspects of trade and business.
For the next 200 years, the British form of corporate organisation would have a
profound impact on India's management history. Clearly, the sociocultural
origins of Indian heritage are diversified, drawing from a variety of sources,
including ideas introduced from other regions of the old world.
Interestingly, even though they had religious origins, these concepts were
basically secular. In the modern setting, the Indian management mindscape is
