Employment Relations in India
1.0 Introduction of India
Republic of India (Bhārat Gaṇarājya), also known as India is located in southern Asia, with seacoast line of 5566 kilometers. India has more than 100 different nationals’ groups, the majorities are Hindustanis with more than 30% of its national population. India was one of the four ancient civilizations country. India was under the British colonial rule for 193 years since 1757, India declared its independence and confederation in Jan 26, 1950 as well at the mean time India becomes a member of the British Commonwealth Countries. India has an enormous population, according to Worldometers.com India’s population in 2019 is currently 1.366 billion [1], it has the world’s second largest population in India. India is also a member of the BRIC’s, its economy is diversified in agriculture, handicrafts, textiles and services.
2.0 Overview of the Country
Two- thirds of India’s population still earns their living directly or indirectly from agriculture. India’s services have grown rapidly in recent years to become the world’s most important exporter of services like software and finance. However, although it’s rapid growth on GDP India is still a developing country with extremely unbalanced distribution of social wealth. Gathering information’s from BusinessToday.com India’s wealth gap gets worse, the top 1% bag 73% of the country’s wealth [2]. Thus, it is vital to investigate the formal sector of India’s recruitment practices, selection practices and the situations that’s occurring in India’s employment relation problems.
3.0 Recruitment Practices
As the world’s second largest population and a booming economy growth, many people would like to seek for a stable formal job in India, so the recruitment process and practice plays a vital role in the business field, because the objective of the recruitment process is to arrange the most desirable candidate in a suitable job position. Thus, with a vast population like India, recruitment practices will be a more comprehensive process in the formal sector jobs (excluding the casual and informal sectors).
3.1 Social Media Recruitment
It is interesting to know that almost 94% of HR recruiters uses social media to post a position, specifically on LinkedIn[3] as Artificial Intelligence and Big Data becomes more popular and enforced, HR departments in India has well intergraded these elements into their recruitment practices. Thus, it is the future trend for people in India seek for jobs and apply online. Although social media is the major platform for job seekers to find their opportunity, however the core steps of the recruitment process is still very traditional and formal. Such as setting up a formal document listing Job Specifications, Job Requirements and Job Descriptions.
3.2 Campus Recruitment
Companies in India would also invest in education institutions for research funds, not only to build up their reputation and awareness. Companies would also provide intern opportunities during campus recruitment periods in every winter season and fall [4]. With the investment into labs, campus education, the companies not only can attract potential talented employees they can also build up a brand loyalty into the student’s perspective during their recruitment process.
Then, the above recruitment practices will forward into arranging interviews with the appropriate candidates. Referring to Placement India.com the essential steps of the further recruitment process are mainly categorized into three Application Short Listing, Preliminary Assessment and Final Interview [5]. India also contains a strict requirement for candidates to be qualified to the job, implementations such as a written test, written paper, or any forms of examination are needed in the recruitment practices [5].
4.0 Selection Practices
The selection practices in India has to go through series of examinations first, such as traditional interviews, written test reference checks [4]. The purpose of an written exams were to testify whether the candidate understand the knowledge for the job, and an traditional interviews are to have a formal individual face-to-face conversation , so the company can understand the candidate’s personality in a super short period of time, therefore every detail counts during the interview [6]. During the selection process, appliance’s resume also plays a vital role [5], because managers can reflect a lot of information’s from the resume, such as its neatness, attitudes, and other surfaced information’s. It is in India’s tradition for managers not to use one tool only to select its candidate in the formal sector, because more techniques will help to find the most suitable person for the job [6]. Most companies have their own forms of process, but most processes have somewhat in degree reference to a written test and a structural interview. There are four key factors companies in India will construct its selection process on, those are practically, sensitivity, reliability and validity [7]. The objective of the selection practices in India was to “Matching people with Jobs”[4]
5.0 Miscellaneous Information
There are trends of emerging IT (Information Technology) sectors in India because of variety of reasons. It contributed as much as 7.7 percent and expecting to be 10% in 2025 [8]. The IT sector plays a major role in India’s export growth too, overcoming BPM and software products. Therefore, IT sector should now begin to invest a perfect recruitment and selection process particularly for this sector because of its size and potential in the future.
5.1 Unions
In India, most middle size and public sector are considered as formal jobs, and the employment relations does not come to a consensus easily, so managers in India has to deal with Unions workers and Union disputes. Formal sector companies have no control over employees joining unions because it is written in the constitutional law that any individual have the right to join a union. Unions in India is very easily formed in the past, however due to the over controlled numbers of unions exist, it was regulated for some requirements to join a union. None the less, laws are sometimes more favorable on the workers side because Union and politics are very closely aligned in India. The six major unions currently exist in India are [9]
- The India National Trade Union Congress (INTUC)
- The AH India Trade Union Congress (AITUC)
- The Bharatiya Mazdoor Sangh (BMS)
- The Hind Mazdoor Sangh (H.M.S)
- The United Trade Union Congress (UTUC)
- The Centre of Indian Trade Unions (CITU)
Any form of employment relations, despite can reference back to related cases regarding to these unions. A huge union movement lead by one of the biggest unions in India was led by the AITUC that almost end up with a revolutionary resolution [10].
5.2 Current Minimum pay
India does not have a national structural minimum pay wage level because the country’s labour situation is massive divided and there is still a massive informal sector has not been revealed. Thus, it is hard for the country to balance out the amount of work efforts given with a guaranteed minimum pay wage, nevertheless workers are willing to work overtime with lower pays because the hard-living conditions that most of the population’s in India are suffering. Therefor New Delhi states India as a nation will not have a single mandatory minimum wage floor. [11] However, as Unions Labour Ministry in India balancing the minimum conditions and a minimum income to live in India, it is predicted the minimum wage in India in 2018 should be ₹375 per day and the monthly wage should be no lower than ₹9,750 equivalent to $135 US. [11]
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