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Emerging Hr Management Trends

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ORGDYN-404; No. of Pages 9 Organizational Dynamics (2011) xxx, xxx—xxx

a v a i l a b l e a t w w w. s c i e n c e d i r e c t . c o m

journal homepage: www.elsevier.com/locate/orgdyn

Emerging HR management trends in India and the way forward
Pawan S. Budhwar, Arup Varma

INTRODUCTION
Over the last decade or so, India has emerged as a major player on the global economic front. To a great extent, India’s enhanced global economic importance is due to the economic reforms that were initiated in 1991. The reforms have been instrumental in creating tremendous opportunities for businesses, in particular for foreign operators. Bodies like the World Bank predict that if India can sustain its economic growth over the next decade, then it is likely to become one of the leading economies of the world. Needless to say, there are many issues that still need urgent attention — among these, development of infrastructure, control over corruption and bureaucratic red tape, opening-up of key sectors for foreign investments, political and legal reforms, enhancing employable skills in new graduates, control over increasing poverty, internal and external security, and divestments in the public sector, etc. In addition, issues related to the management of human resources have become crucial for India’s sustained economic growth. The liberalization of economic policies calls for a switch from labor intensive to more capital-intensive methods of production, and thus requires organizations to remove surplus labor and generate new sustainable employment systems. In the new economic environment, there are additional challenges relating to the need to increase productivity, reduce costs, improve quality, reduce voluntary and involuntary absenteeism, and cope with the subsequent de-skilling, re-skilling and multi-skilling problems and career development issues. In this

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