Impact of Globalisation on Formal, Motivational and Strategic HRM Practices: An Empirical Evidence from India

Abstract

New economic development, which is a result of globalisation and internationalisation, has exerted tremendous pressure on the Indian human resource functions how to evolve itself and add the value to the outcome of the firm. The present paper precisely discusses the globalisation and its impact on the HRM practices of Indian firm in the light of new economic reforms. This study aims to examine the far-reaching changes in the pattern of HR practices owing to ever-increasing globalisation in India. The data were collected through the selfdeveloped questionnaire from 282 senior HR managers of Indian firms. The principal component analysis with varimax rotation generated three components from fifteen HR practices, namely Formal, Motivational and Strategic HR practices. Structural Equation Modelling (SEM) technique has been applied to understand the relationship between globalisation and three bundles of HR practices by using the SPSS Amos 22 software. The study findings suggest that the role of globalisation cannot be neglected. Indeed, The HR policies and practices of Indian firms are strongly influenced by the pace of globalisation of the Indian economy.