-------------------------------------------------------------------------------------Developing Human Capital: Traditional Indian approach for Human Resource Management
-------------------------------------------------------------------------------------Somesh Singh, Jt. Director, Institute of Apparel Management

The life of a person in India has been categorized into four phases with key formula of Learn, Earn & Return, even caste system were based on “Occupations” than financial capabilities. As multi-ethnicity, multi-cultural country, it’s a perfect example of unity in diversity. Human resource management has become integral part of the organizations today and perhaps most of the theories practiced have been adapted from west, whereas, the fundamental difference between the EAST and WEST is based on “Collective and Collaborative” to “Individualistic”. Most organizations are collective affairs and not individual aspirations, hence, a culture that inhabit so much of collective thinking can perhaps bring more comprehensive outlook to Human Resource on scale. India, China and Japan based on their “Culture” as core products can bring out eastern insights on human driven approach rather than automation. And one of the beauties of 3000 years old culture is that it derives ethics, ethos and wisdom from their long migrated, mated and intra-cultural influences.

In context to India and new millennium, if we look at Future Human Index, India will be having the world’s youngest population by next decade (Approx. 450 million) under the age of 30 years. However, organized sector in India still has low percentage as compared to other developed nations and most of the businesses are operated in Small & Medium Enterprises (SME’s). The key attribute is, even though these sectors are considered unorganized many of them have been practicing interesting HRM concepts. Traditional markets like Sadar Bazaar, Chandni Chowk, Revdi Bazaar, Kalupur etc. are mostly human centric. These traditional markets functions on “Human Capital” having informal interface with its stakeholders, employees and employers.

Few of the lessons one can derive on Human Factors for these traditional markets are:-

1. Faith and Trust: In modern organization though it is practiced, however unlike traditional market place it may not hold primary importance. Most of the traditional markets function primarily on “Faith & Trust” on human to human level. The immense confidence in employee-employer relationship works in perfect harmony despite these employees coming from financially weaker sections, low in qualification and from various caste and creed.

2. Word of Mouth & Commitment: These market places might neither have the best of the brains nor IIM graduates, but what create an extraordinary team is the ability to adapt and learn, and the commitment for the employer and company. Though, they are not operating on “SOP’s” and latest teaching platform, word of mouth commitments are valued more than written words. Therefore, strong commitment is core of such organizations.

3. Storytelling: India has been known for story telling, it had been the perfect medium to communicate ethos, ethics, value and cultural context to individual and organization, in these organizations the value and ethos are transferred from one generation to another through the mode of story telling within a given context.

4. Training and Re-training: One of the prime most challenges has been to continuously train and re-train employees and adapt them with the changing environment, giving them personal attention and allowing them to make mistakes so that they can learn from the experiences. It has helped to develop tiers of professionals who can adapt fast without fear with changing environment and technologies, products and services.

5. Participation: The salaries and perks are offered through creating shareholders approach like (extended family) from top bosses to drivers to peon, whom so ever are performing are being incentivized, those directly or indirectly involved in these businesses have been compensated well from time-to-time, it also helps them to grow and excel in desirable career pathways.

6. Social responsibility: Some times more humane approach increases employee productivity, if the core is addressed that hampers productivity, be it their child’s education or daughter’s marriage, parents or family members health or welfare or any other financial issues that has been troubling them. Such hurdles only divert them from day-to-day work and, hence, it is extremely important to deal with such issues holistically by ensuring full support to workers to work into tension free environment.

7. Earn and Fun: It is often observed that an attitude towards creating work place more happening and interesting helps the employees to meet up with daily challenges and also help them divert away from monotony of hectic work schedule. Hence, through various forums and interactions organized from time to time works as a stress buster, and helps connect with families and lives of coworkers.

8. Horizontal organizations: Though some of these organizations are even very large groups, there is a good connect from top management to the ground staff. These employers even count on the experience, knowledge and suggestion of their employees who can contribute to overall vision and mission in totality. Therefore, these companies believe in integrating view points and feedback of employees to increase productivity without interfering in the established organizational framework.

9. TPM (Total People Management):- These companies believe that company, culture and organizations are built by people and not by individuals, it’s a team that works together without having the egos of hierarchy, hence, it is all about people and their interface and interest in the organization. The core philosophy of such companies is to create “peoples first approach” and then products by empowering them to act and do, and to create avenues for growth and for life.

Note: The article expresses the views of author, which can help to improve HR systems & practices based on traditional & ethical practices in India across ages.