Pawan S.

Budhwar and Naresh Khatri (2001)

HRM in Context; Applicability of HRM
Models in India
Articles Review
Review Article # 2
Noureen Mushtaq MM131044
SHRM-Dr. Shazia Akhtar
Dated: 22
nd
May 2014
1. Introduction of the article
2. Theoratical backgorund of the
article
3. Description of 5 main Models of
HRM
4. Merging with Framework
5. Building up Research Questions
6. Methodology
7. Results
8. Conclusion
9. Evulation of the Article
10. Future Directions
Noureen Mushtaq Articles Review
Presentation Layout
Introduction
Claims Evaluation

Noureen Mushtaq
Articles Review
Purpose of Review:
The purpose of this review is to see the implications of
the study in the context of Pakistan and identify the possible
gaps regarding the application in Pakistan industry.

Information of Article:
HRM in Context; Applicability of HRM models in India,
by Pawan S.Budhwar and Naresh Khatri and is published in
International Journal of Cross Cultural HRM in year 2001
Vol1(3):333-356.
About the Article
Lets Begin!
Indian Context specific: study of one of the Developing Countries of the world

Theoretical Background
Noureen Mushtaq Articles Review
zc
t
Increasing Pressure Indian Economy
Literature has given us
various models to deal
within and across the
nations. Which can be used
for appropriate policies and
practices development.

That is why there is a need
of analyzing that weather
the existing major HR
models are applicable in a
specific context or not.

Present study is helpful in
Cross cultural and
Industrial Relation
perspective.
Significance of Study
History of Indian Economy
Transformed from State
Regulated Economy to a
Free Market Economy.

With many Reforms taken
place, worked for the Indian
Economy and resulted in
the largest Emerging
Economy in the world.

Second-generation
Reforms are taking place
currently in India.

Focusing more on
Liberalization of Economic
Policies

3 2
1
And reuslting increase in
pressure on Personnel
Functioning.

HRM as key and central key
source to Success and
organzational performance

But Dynamic nature of todays
world is influencing organztion
alot and demanding Change
as the only source of Survival
and Success

Today is a world of
internationalization and
globalization than ever.

Cross-cultural and
comparative issues are
getting momentum now



There are two important objectives of this article

Articles
Objectives
Second is to test them
empirically in Indian
context and direct HR
patterns in their light.
Objective # 2

First to identify the main
research questions from
Models that can be used
to highlight HR practices
in different contexts
Objective # 1
Noureen Mushtaq Articles Review
1
2

Variation in HRM strategies

Research questions are focusing on following aspects:
Research Theme
Articles Review
Strategic Fit of HRM practices
Contextual Factors and HRM
Devolvement of HRM to line
HR as a Cost
Strategic Integration of HRM
Situational variables of HRM

7
6
5
4
3
2
1
National Factors and HRM 8
(Budhwar, 1999; Budhwar and Debrah, 2001; Budhwar and Sparrow; 1998)
Framework for examining HRM in
Different settings and contexts
Noureen Mushtaq Articles Review
Such as national cultures, national institutions, business sectors and dynamic
business environment
National Factors
Such as age, gender, nature, life cycle stage of organization, trade unions etc
Contingent variables
Organizational Strategies
1
2
3
Such as prospectors, analyzer, defender and reactors, Competitive strategies (such as
Cost leadership, Product differentiation, Market focus) and polices related with
primary HR functions, internal labor market, levels of integration ,devolvement and
nature of work
Matching Model (Fombrun et al., 1984)
5-P Model (Hendry and Pettigrew, 1992)
Harvard Model (Schular ,1992)
Contextual Model (Beer et al., 1984)
European Model (Brewster, 1995)
Following Models have been viewed in this article
Main HRM Models
1
2
3
4
5
Noureen Mushtaq Articles Review
Matching Model (strategic fit) and 5-P
Model (Strategic Integration)

Harvard Model (soft and hard variant)
and Contextual Model
National Factors European Model of
HRM
Models + Framework
Analyzing for Building Research
Questions




Organizational & HR
strategies/Policies
National Factors
Organizational
Contingencies.
Noureen Mushtaq Articles Review
With Reference to the Model

Research Questions
Related with
Matching Model
Model:
RQ1: Do organizations show a
tight fit' between their HRM
practices and organization strategy
where the former is dependent on
the latter? Do personnel managers
believe they should develop HRM
systems only for the effective
implementation of their organization
strategies?

RQ2: Do organizations consider
their HRs as a cost and use them
sparingly? Or do they devote
resources to the training of their
HRs to make the best use of them?

RQ3: Do HRM strategy vary across
different levels of employees?
1
Noureen Mushtaq Articles Review
With Reference to the Model

Research Questions
Related with 5-P
Model
Model:
RQ4: What is the level of
integration of HRM into the
business strategy?


RQ5: What is the level of
responsibility for HRM devoted
to line managers?
2
Noureen Mushtaq Articles Review
With Reference to the Model

Research Questions
Related with
Harvard Model
Model:
RQ6: What is the influence of
different stakeholders and
situational and contingent
variables on HRM policies and
practices?
3
Noureen Mushtaq Articles Review
With Reference to the Model

Research Questions
Related with
Contextual Model
Model:
RQ7: What is the influence of
economic (competitive
pressures, ownership and
control, organization size and
structure, organizational growth
path or stage in the life cycle
and the structure of the
industry), technological (type of
production system) factors and
contingent variables on HRM
policies and practices?
4
Noureen Mushtaq Articles Review
With Reference to the Model

Research Questions
Related with
European Model
Model:
RQ8: What is the influence of
international institutions,
national factors (such as culture,
legal set-up, and economic
environment and ownership
patterns), national institutions
(such as the educational and
vocational setup, labor markets
and trade unions) on HRM
policies and practices?
5
Your own footer Your Logo
Questionnaires + In depth interviews
Manufacturing industry of India
Indian firms having 200 or above employees
6 industries
Respondents were top personnel specialists.
The response rate was 30% (137 out of 450 questionnaires).
57% firms were public sector while 39% were belonging to private
sector.
24 in-depth interviews were also conducted, four in each industry.

Methodology
Your own footer Your Logo
Results & Conclusion
There is mixed picture from strong to moderate applicability of the
mentioned HRM models in India.
This study has highlighted the importance of context by showing Context
specific nature of HRM, like in India, the patterns of HRM practices and the
logic behind their presence in manufacturing industry of India.
There is a shift taking place in the pattern of HRM practices in Indian
organization, from traditional administrative type to a more strategic and
proactive type.
This is mainly due to the competition created by the liberalization of
economic policies.
There is also a noticeable change in the attitude of trade unions towards
their respective management.

Your own footer Your Logo
Strengths
importance of Personnel development
nature of HR functions and the factors that are
influencing those functions in India
advocated the importance of two needs:1- Need
of more cross-cultural studies and 2- Use of
Core Research Questions (of HR Models) as
mechanism to investigate and understand cross
cultural HRM.
IR and HRD making HRM to be discussed
broadly with reference of both managerial and
non managerial employees
Focused on application of models context wise

Your own footer Your Logo
Weaknesses
This study is context specific which arises
questions regarding its generalizbility.
Has focused on the Change, industries are
facing across the nations because of
globalization
The data set is consisting of old collection, thus
new and fresh data collection was missing to
capture change if happened.
Employees perspective has been ignored
Study was also industry specific
THANK YOU!
Your Logo