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Human Resource Practices in Outsourcing Industry in India - Research Proposal Example

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The paper "Human Resource Practices in Outsourcing Industry in India" investigates issues like human resource practices, employee voice and quit rate in the outsourcing industry in India. The author analyzes how the Indian outsourcing industry has grown by leaps and bounds in the last decades…
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Human Resource Practices in Outsourcing Industry in India
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Download file to see previous pages A significant proportion of the Indian population is employed in different outsourcing companies. This has also given a boost to the increase in employment level to the country as a whole. Bangalore, Mumbai, Delhi, Hyderabad, Chennai, Kolkota, Cochin, etc are some of the major cities in India, as far as Business Process Outsourcing (BPO) activities are concerned (Important IT Cities in India). All the above cities are located in different states in India with huge differences in culture, language, educational level, and social setups. Since India is a country which is diversified in many ways, thus a unique HRM strategy can not be formulated. The research is conducted to find out the parameters which are required to be considered while formulating HRM strategies for outsourcing businesses in India.
The objective of this research is to find out why many employees quit the outsourcing industry in India. The research will try to make a study as to whether the employee quit because of insufficient compensation or any other reasons. The increasing quit rates are actually an important concern of cost for organizations. This is because quit rates increase labor costs (Oi 1962) and at the same time they decrease organizational functioning (Norsworthy and Zabala 1986). According to Freeman and Medoff (1984), industrial relations show that in firms that have a union the quit rate is lesser than when compared to those firms which have no unions. Unions actually in firms are a tool through which the employees can voice their problems and seek better compensation instead of quitting.
Arthur (1994) feels that current research on better commitment and high level of performance is, in reality, a coherent set of human resource (HR) practices. This coherent set can also bring in better performance on the part of the employees according to Ichniowski et al, (1996). High rate of quitting by the employees will sabotage functioning (Alexander, Bloom, and Nuchols 1994; Huselid 1995). ...Download file to see next pagesRead More
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