Corporate India and Human Resource Management Creating Talent P PDF

Corporate
and HR
Management
Creating Talent Pipelines, Leadership

Competencies, and Human Resources
Nancy R. Lockwood, M.A., SPHR, GPHR
Society for Human Resource Management

Alexandria, Virginia
www.shrm.org
Strategic Human Resource Management India

Mumbai, India
www.shrmindia.org

Haidian District Beijing, China
www.shrm.org/cn
Society for Human Resource Management, 2010

This publication is designed to provide accurate and authoritative information regarding
the subject matter covered. It is sold with the understanding that neither the publisher nor
the author are engaged in rendering legal or other professional service. If legal advice or
other expert assistance is required, the services of a competent, licensed professional
should be sought. The federal and state laws discussed in this book are subject to frequent
revision and interpretation by amendments or judicial revisions that may significantly affect
employer or employee rights and obligations. Readers are encouraged to seek legal
counsel regarding specific policies and practices in their organizations.
This book is published by the Society for Human Resource Management (SHRM). The
interpretations, conclusions, and recommendations in this book are those of the author
and do not necessarily represent those of the publisher.
Copyright 2010 Society for Human Resource Management. All rights reserved.
This publication may not be reproduced, stored in a retrieval system, or transmitted in

whole or in part, in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the Society for Human
Resource Management, 1800 Duke Street, Alexandria, VA 22314.
The Society for Human Resource Management (SHRM) is the worlds largest association
devoted to human resource management. Representing more than 250,000 members in
over 140 countries, the Society serves the needs of HR professionals and advances the
interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated chap-
ters within the United States and subsidiary offices in China and India. Visit SHRM Online
at www.shrm.org.
Interior and Cover Design: Scott Harris
Library of Congress Cataloging-in-Publication Data
Corporate India and HR management : creating talent pipelines, leadership competencies,

and human resources.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-58644-197-5
1. Personnel management--India. 2. Leadership--India. 3. Management--India. I. Society
for Human Resource Management (U.S.)
HF5549.2.I4C674 2010
658.300954--dc22
2010013544 10-0029
Contents
Foreword. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Chapter 1. Building Sustainable Leadership Competency . . . . . . . . . . . 1
Chapter 2. Talent Pipelines and Creative Career Pathways. . . . . . . . . . 17
Chapter 3. Women in Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Chapter 4. Employer Brand in India : A Strategic HR Tool. . . . . . . . . . . 49
Chapter 5. Indian Human Resource Management

and Talent Mindset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Appendices
A: A Primer on Being Culturally Aware. . . . . . . . . . . . . . . . . . . . . . . . 86
B: Global Leadership Competencies Poll
Senior HR Leaders in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Endnotes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Additional SHRM-Published Books . . . . . . . . . . . . . . . . . . . . . . . . . . 112
v
Foreword
By Rohini Anand, Ph.D., Senior Vice President and Global Chief

Diversity Officer, Sodexo
As India becomes an increasingly significant player in todays global

economy, this timely and thoughtful book traces the evolution and chal-
lenges of human capital management in the country. Corporate India
and HR Management offers an in-depth and informative discussion on
HR management, drawing on research conducted within India and glob-
ally. With clarity and brevity, both cultural context and current trends
are explored to help the reader understand the challenges and oppor-
tunities associated with managing within this fast-paced and complex
environment.
As an American born in India and currently living and working in
the United States for Sodexo, a global company employing over 360,000
people world-wide and 30,000 people in India, I read Corporate India
and HR Management with great interest. With a population of 1.2
billion, a median age of 25 years, and a growing middle class, India rep-
resents one of the largest consumer bases in the world one that leading
executives must factor into their global strategies. Corporate India and
HR Management provides useful information for a variety of audiences;
those in human resources and management in India, Indian companies
doing business globally, as well as those interested in or currently doing
business in India. In addition, this publication provides organizations
dealing with Indian companies outside of India with unique insights to
optimize their relations.
vii
The Society for Human Resource Management (SHRM) articulates
HR challenges and strategies from the perspective of Indian companies
rather than that of multinationals, the traditionally preferred arena of
study. To do this, the author, Nancy R. Lockwood, draws on published
research by Indian writers as well as first-hand interviews and testimoni-
als from executives in a diverse range of companies from a variety of
industries in India.
She also highlights how HR management has become a critical
boardroom issue due to the fierce competition for talent necessary to
meet the growth needs of companies in India. The shortage of individuals
with the right skill sets (especially leadership skills), the extreme mobility
of the younger generation seeking salary increases and upward mobility,
and the under-utilization of women are all challenges that companies in
India are struggling to address.
The book suggests that in order to address the talent gap, companies
in India must expand their talent pool to include more women, who are
increasingly attaining the requisite education and skills necessary to join
the managerial ranks. It also emphasizes the importance of the employer
brand in attracting, engaging, and retaining the best talent. While many
multinationals have a defined employer brand that they strive to live,
Indian companies have evolved their brand as a by-product of internal
engagement aimed at creating a more productive workplace. As the
global head of diversity and inclusion at Sodexo, I was pleased to see the
emphasis Corporate India and HR Management places on leveraging the
employer brand and increasing the engagement of women, both of which
are critical for sustainability of companies in India. Nancy Lockwood
also does an excellent job of contextualizing her work within the diver-
sity in India.
This comprehensive overview is grounded in the history and cultural
context of India with its unique blend of the traditional and modern, of
East and West, of looking towards the future while honoring the past.
viii
Preface
India is a powerful force in todays global marketplace. As the second

fastest growing economy, right behind China, India is one of the largest
consumer markets worldwide, with a rapidly expanding middle class
in a population of more than 1.2 billion people. In recent years, with
the influence of many multinational corporations in India, Western and
global business values are permeating the Indian society and workplace,
causing a shift in Indian human resource management (HRM). There is
intense competition for talent in Indias corporate sector, and at the same
time, the need to balance local and global HRM policies and practices in
a country where tradition continues to play a large part in peoples lives.
The Society for Human Resource Management (SHRM) undertook
this project with the goal to provide both the non-Indian and Indian
audiences of HR professionals and other business leaders, learning
about HR in India and/or expanding into the Indian marketplace, with a
better understanding about India and Indian HRM. The topics covered
leadership, talent pipelines, women in management, talent mindset,
and employer brand were selected in view of their importance in the
Indian corporate landscape for people management and business strategy
today, based on recent books written by Indian researchers and experts.
To better understand the dramatic change occurring on the Indian
management front, as well as appreciate the role of tradition and cul-
ture, this book explores human capital in India and closely examines
a number of Indian corporations in a wide range of industry sectors.
SHRM interviewed Indian HR executives from well established multina-
tional corporations to Indian companies working to gain a solid foothold
in a rapidly changing marketplace, each with their unique challenges to
attract, develop, and retain talent.
ix
This book presents examples of the increased strategic focus of
Indian corporations by examining individual companies and hearing
directly from Indian HR leaders about their respective opportunities and
challenges, including key aspects that contribute to the value proposition
of their organizations and core corporate foundations that give them a
competitive edge. In addition, to better understand important concepts in
the background of Indian management and the workplace, the follow-
ing chapters were also designed to gain a glimpse into the unique Indian
environment, from demographics (where the median age in the work-
place is 25) and socio-economic factors to cultural influences and drivers
that make the Indian marketplace unique.
As project leader and author, it is my hope that this book will pro-
vide readers with an understanding and appreciation of HRM in Indias
dynamic management environment, as well as a glimpse into the inspir-
ing movement in Indians traditional society and its role in the global
marketplace.
Nancy R. Lockwood, M.A., SPHR, GPHR

Manager, HR Content Program/Research Department
x
Chapter 1
Building Sustainable
Leadership Competency
Indias leap into globalization has been a contributing factor to its fast-
paced growth. This chapter explores leadership and the competencies
required to continue to fuel and sustain the extreme pace of life and busi-
ness in India. Leaders in India operate in the midst of a multifaceted and
fast-paced environment. The threads of culture are intertwined with the
economic environment and Indias drive to be a significant player in the
global economy.
Given the complexity of the country for example, its history,
culture, and rapid change and the unprecedented rate of growth that
has launched India into the limelight worldwide, a discussion of leader-
ship issues in India must be contextualized, with understanding of key
changes in India.
Leading in India
Indias future rests squarely in the strength of its leaders and their leader-
ship ability. The backdrop of growth and change in India, a country
with long-standing traditions and an established reputation in the global
marketplace, is the environment in which every Indian company works
1
2 Corporate India and HR Management
and builds its strategic business and human resource plans. In the book
The Quest for Global Dominance, based on a study that examined
leadership over a 22-year period, the authors emphasize that todays
executives in the global marketplace must consider India as core to their
global strategies and leverage the countrys human resources to transform
the competitiveness of their companies.1 As illustrated by rapid growth
rate, India is building its global presence, with Indian leaders establishing
themselves as strong competitors.
Today, with the influence of global organizations in India, a shift is
occurring in Indian human resource management. Indian companies are
increasingly strategically driven and less immersed in the culture of the
past.2 Although societal values in India continue to be strongly tied to
tradition, Western corporate and global business values are slowly per-
meating Indian society and the workplace.3 Cultural value changes can
be seen in areas such as foreign investment, mass media, technological
education, and consumerism. Value changes in the workplace are more
easily found in multinational corporations, where emphasis is placed
on human capital with experience and knowledge for increased work
performance. Because of the focus on organizational performance and
leadership in Indian domestic and global organizations, these value shifts
are raising leadership standards. Today, Indian leaders are focusing on
the next levels of leadership.
Indias Changing World

Prior to discussing leadership competency in India, it is important to have
a broad sense of the Indian environment. The country name, in its con-
ventional form, is Republic of India, with India as the short form. The
second largest country in the world, India has a population of more than
1.2 billion, with the median age of 25 years. The government is a federal
republic, with Hindi as the national language and the primary tongue of
41 percent of the population (with 14 other official languages). English is
the language for most national, political and commercial communication
in India (see Figure 1.1).4
Building Sustainable Leadership Competency 3
Figure 1.1 India: Demographics, Economy, Culture

Demographics/Economic Factors Cultural Aspects
Independence from British rule in August Collectivist culture: An individuals
1947 decisions must be in harmony with family,
group, and social culture.
Government: Federal republic Business is not conducted during many
religious holidays.
Official languages: Hindi and English Business in India is built on relationships.
Population (2010): 1,214,464,000 (United Kinship and friendship are very important.
Nations: http://esa.un.org)
Median age (2010): 25 years Education is considered an investment in
Ages 514 (21.8%) economic well-being and prestige.
Ages 1524 (19.4%)
Ages 65 and over (4.6%)
(United Nations: http://esa.un.org)
Economic growth rate: Last five years Hospitality is associated with doing
average growth rate is 8.1% business.
(http://mospi.nic.in)
Indias growth is fueled by an increasing Titles are highly valued, as in some other
middle class, estimated at 300 million parts of the world, as is the university
people from which one graduates, the number of
(www.indiaonestop.com) people reporting to the individual or the
business, and the profession itself.
India is the second fastest growing major economy in the world,

quickly gaining on China. In July 2009, the International Monetary
Fund (IMF) raised Indias growth forecast to 5.4 percent for 2009, while
projecting the world economy to shrink by 1.4 percent in 2009. Accord-
ing to the multilateral lending agency, the Indian economy is projected to
expand at a rate of 6.5 percent in 2010, while the world GDP is antici-
pated to grow by 2.5 percent.5
Indias growing middle class reflects its significant economic growth.
When India became a sovereign nation in 1947, the middle class was
virtually nonexistent. By 1999, the size of Indias middle class was unof-
ficially estimated at 300 million people, with an average yearly income
comparable to $25,000 in purchasing power in the United States.6 The
growing middle class, with money to spend, is a new phenomenon in
India. In the past, Indians who had money would save their resources
rather than spend. Now, with many choices and brands brought to the
market in recent years and new employment opportunities many

Indians enjoy spending. This environment makes India one of the most
potentially profitable markets for international trade.
Indias political history of state control, insulation from world
markets and slow growth rates has been replaced with a society and
business environment that is more supportive of growth, poised to thrust
India deep into the global economy. Changes in the political arena have
included the relaxation or removal of government controls, the redefin-
ing of taxation policies for certain industries, and governmental encour-
agement to increase exports and imports in the country as a whole.
A View from Within India

In India, leadership is a complex change management process. Nina E.
Woodard, former executive director of SHRM India, lived in India for
eight years and provides an inside view on the unique environment that
influences sustainable leadership. She notes that in India, effective leader-
ship helps people build and change the ways in which they have lived,
survived, and thrived for centuries, by offering new careers, jobs, and
brand choices. As Indian organizations focus on sustainable leadership,
they are building and managing sizeable organizations with thousands
of employees, sometimes in the tens of thousands. Company leaders
realize that the growth of the country depends on effective and sustain-
able leadership in the business community in the midst of rapid and often
unimaginable growth in both the domestic and global marketplace.
However, India is a country where one should not judge values or
abilities by appearances. Western visitors quickly notice three aspects of
India poverty, large numbers of people, and dichotomies and may
form incorrect assumptions about India based on these observations. For
example, in the West poverty equals crime, but in India, that is not neces-
sarily so. Mumbai, the commercial and entertainment center of India, is
a mega city. An article in the Indian newspaper The Economic Times
reported that crime has decreased in Mumbai in the past 20 years (from
32,491 crimes registered in 1984 to 30,197 in 2007), even though the
population has grown substantially.7 Statistical reports indicate that in
Mumbai there are more than 16 million people, and 9 million are said to
be in poverty. Mumbai is home to Dhavari, the largest slum in Asia and
perhaps in the world.8 Mumbai also has some of the most beautiful and
modern buildings in the world. Often, these two communities impov-
erished and modern coexist adjacent to each other. The result is an
unexpected incongruity that can be confounding for a Westerner, with
realities at both ends of the spectrum existing simultaneously.
There is a growing understanding of the importance of the environ-
ment in India. For example, the recent financial growth of middle class
incomes has led to a movement in personal, corporate, and government
investments to go green and invest in faade and repair work on
apartment and business buildings as well as architectural and historical
buildings that highlight the Mumbai landscape. In the past, environmen-
tal factors were not considered important. Rather, what was important
was getting to work and surviving (that is, having enough to eat and a
place to sleep, and perhaps saving a little for the future, since India does
not have a social security system).
Further, in India, the climate for effective leadership is now for-
ward-facing that is, the focus on the past has moved to a focus on
the future. At the same time, there is a mix of tradition combined with
technology, new cultural, and workplace values taking the place of tradi-
tional views, and rapid growth in the marketplace. Paradigm changes for
sustainable leadership include bold risk-taking and innovation, learning
and adaptability, and short-term to long-term commitment.
One way to think about such broad differences is a scenario of
traffic on a road in India, a metaphor for tradition and the new future
mirroring the context in which business and governmental leadership
occurs. Imagine a busy intersection where the traffic light has turned red.
There may be a Mercedes, an ox-pulled cart, a bike stacked high with
fresh eggs, a hand-pulled delivery trolley filled with computer parts, and,
perhaps, a cow (considered holy in the Hindu belief and thus protected)
on the side of the road. Each is within inches of the other on the street,
all nudging forward in anticipation of the change of the traffic signal
from red to green. If this were to happen in the United States, there
would most likely be an accident. In India, these economic strata exist
in the same space and time. While this scenario is more likely to be seen
in emerging cities and is now rare in large metropolitan cities (such

as Mumbai, Delhi, Chennai, and Kolkata), it provides the newcomer to
India with an understanding of how the traditional and the modern may
coexist. Thus, defining and developing sustainable leadership in India is
occurring in the same pluralistic environment, encompassing both tradi-
tional India and contemporary India.
Rapid Growth and Leadership

Most leadership studies indicate that experience and exposure to differ-
ent situations and cultures are the best teachers of leadership competen-
cies. Rapid growth is taking place across all business sectors in India for
all types of professional and craft positions. Organizational learning and
experience are highly compressed due to the fast pace of growth and pro-
motion of individuals who often have not yet had time to gain the depth
of experience and maturity. In the Indian landscape, leadership compe-
tency is also compounded by the vast gap between the single incumbent
leadership position and the next level. By necessity, new leaders are called
upon to step up to fill leadership needs in their organization. However,
this stretch in experience and demand to lead is effective only in the
short term. Thus, Indian businesses can be at risk from continued pres-
sure of economic growth and competition that pushes limits and abilities
to keep the stream of qualified and competent leaders flowing.
As in many other economies, the small- and medium-size enterprises
(SMEs) are the backbone of Indias economic growth and job creation.
According to data on the Indian government business portal, SMEs may
have more than 80 percent of the GDP share in India, and if the global
trend is true for India, then more than 90 percent of all enterprises in
India are SMEs.9 Additionally, most SMEs aspire to hire people with
MBAs to bring in talent needed to expand and succeed in Indias com-
petitive marketplace. Yet, many of these organizations serve as training
grounds or finishing schools for creating employable talent for larger
Indian domestic and multinational corporations resulting in high turn-
over rates for SMEs. Additionally, a large section of the Indian economy,
known as the unorganized sector, cannot provide a leadership pipeline

to the organized sector. The unorganized sector also known as the
informal sector is named so because of the absence of traditional cor-
porate structures, strategies, and statistics. According to Indias National
Accounts Statistics, the unorganized sector refers to those enterprises
whose activities or collection data are not regulated under any legal pro-
vision and those that do not maintain legal accounts.10 Examples of the
unorganized sector are the businesses that are run on the street corners
and stalls in India.
Adding to these complexities is the voluminous number of new
hires proposed for many business sectors. It is not uncommon to hear
of a single retail company hiring 50,000 people or thousands of people
being hired by the leading sectors such as IT and consulting. SMEs grow
at a smaller rate, perhaps hiring 300 to 500 people or maybe even 1,000
annually. Absorbing and integrating these newcomers and helping them
ramp up to the adding value stage make effective leadership develop-
ment very challenging. There is little time to build strength-on-strength,
as would be the desired pathway to build leadership competency within
an organization. Thus, the reality for leadership in India is softening or
controlling the learning curve and dealing with double-digit growth in
almost every employment sector.
Moving Toward Sustainable Leadership

In todays competitive economy, it is imperative for organizations to
understand, develop, and establish sustainable leadership. Formal
research studies about leadership are important tools from which organi-
zations can learn and grow. Trends in leadership development influence
competencies, methods, and tools (see Figure 1.2). Additionally, changes
in society influence organizations and, in turn, expectations of leader-
ship. A recent cross-national study that focused on the changing nature
of leadership in relation to societal context revealed changes in leadership
practices from traditional, individual approaches to more collaborative,
innovative approaches.11
Figure 1.2 Five Trends for Leadership Development

(1) Importance of leadership competencies.
(2) Globalization/internationalization of leadership concepts, constructs, and development
methods.
(3) The role of technology for communication with a geographically diverse workforce.
(4) Increasing interest in the integrity and character of leaders.
(5) Pressure to demonstrate return on investment.
Source: Adapted from Hermez-Broome, G., & Hughes, R. L. (2004). Leadership development: Past, present
and future. HR. Human Resource Planning, 27(1), 24-33.
In Developing Business Leaders for 2010, researchers agree that the

most important leadership competencies in the future include effective
change management, development of talent/teams, and effective collabo-
ration/network-building. Other key leadership competencies are cognitive
ability, strategic thinking, analytical ability, personal and organizational
communication skills, diversity management, personal adaptability, and
talent management. However, certain traits can be obstacles to leadership
success: insensitivity and personal arrogance, a controlling leadership
style, risk aversion, and a reluctance to address difficult people issues.12
The Center for Creative Leadership (CCL) focuses on leadership
education and research. The CCL leadership competency model is one
that could be adapted by Indian organizations, as its concepts closely
match competencies uncovered by the Hay Group study of leadership
values of todays most successful Indian leaders. It provides a solid base
to move toward leadership sustainability, with three overarching leader-
ship dimensions: organization, self, and others. This model includes
managing change, decision-making, influencing, risk-taking, and innova-
tion, as well as skills to broaden leader effectiveness, such as increasing
individual capacity to learn, self-management, self-awareness, and adapt-
ability. Global dimensions include value-added technical and business
skills and the ability to deal with complexity, among others. Ultimately,
the accountability for sustainable leadership competency requires the
full commitment of senior leadership, as demonstrated by expectations,
actions, and long-term commitment.13
Research on Leadership in India

The following recent studies identify Indian leadership traits and
challenges, pointing to an increasing focus on sustainable leadership
competencies.
2004 India CEO Study: The Indian Way of Leading Successful
Businesses.
2006 Leadership Challenges for Indian Companies.
2007 The DNA of Indian Leadership: The Governance,
Management and Leaders of Leading Indian Firms.
2008 How to Address HR Challenges Worldwide Through 2015.
India CEO Study: The Indian Way of Leading Successful

Businesses (2004)14
This groundbreaking research identified distinctive Indian leadership
traits. Bharat Petroleum Corporation Limited, a major Indian oil and
gas corporation, commissioned the Hay Group to conduct an 18-month
study comparing Indian leadership traits with global leadership models in
organizations in Europe, Australia, and the United States. Traits, behav-
iors, and motives of 30 CEOs of Indias top publicly traded companies
were examined. The results showed that while Western and European
CEOs are focused on corporate reputation, cultural change, and succes-
sion planning, Indian CEOs are concerned about growth and innovation,
altruistic business philosophy, patience and integrity, and formal and pro-
fessional workplace relationships. Many Indian leaders work to create a
positive impact for the country, their fellow Indians, their families, and
themselves. The idea of being invested in the future of the country is a
catalyst for their success.
In sharing the survey results, a general manager at the Hay Group in
Kuala Lumpur said that the company was surprised by Indian busi-
ness leaders extensive focus on growth and innovation, as well as the
extent to which they took business risk to address societys needs. Other
significant findings indicated that fortitude and resilience were critical for
CEOs, especially in the current Indian federal environment of reviews,
lengthy negotiations and critical media. Regarding growth and innova-

tion, the study found that outstanding Indian CEOs consistently look for
new technologies, ideas, and information to improve their organizations.
However, compared with their peers in other countries, Indian CEOs
have less focus on internal organizational politics. Furthermore, from an
altruistic business philosophy, most outstanding Indian CEOs focus on
meeting the needs of the countrys huge middle and lower market seg-
ments by offering reliable yet inexpensive goods and services. Top Indian
CEOs demonstrate a high level of integrity and inner strength. Finally,
Indian CEOs prefer to maintain more formal and professional business
relationships than Western CEOs, who avoid close relationships in the
workplace.
Leadership Challenges for Indian Companies (2006)15

Research by The Conference Board notes that Indian companies
that compete globally must have the ability to successfully benchmark
against world-class organizations. For them, the challenges include
managing sustainable growth, hyper-competition for markets and people,
high employee expectations, emphasis on customer relationships, and
altering traditional company organizational structures. Due to exponen-
tial growth in Indian companies, leadership challenges focus on growth
strategies, speed of response, innovation, and execution excellence.
The study identified the following top 10 business leadership chal-
lenges of Indian CEOs:
(1) Consistent execution of strategy.
(2) Stimulating innovation.
(3) Corporate reputation.
(4) Expansion in India.
(5) Speed, flexibility, adaptability to change.
(6) Profit growth.
(7) Sustained and steady top-line growth.
(8) Business risk management.
(9) Changing technologies.
(10) Aligning IT with business goals.
The DNA of Indian Leadership: The Governance,

Management, and Leaders of Leading Indian Firms (2007)16
Top Indian leaders share leadership attributes with their U.S.
counterparts, yet they also have distinctive characteristics, according
to the Wharton School at the University of Pennsylvania. In this study,
100 chief executives of leading Indian companies were interviewed. In
contrast to U.S. business leaders, Indian CEOs are more focused on
internal management, long-term strategic vision, and organizational
culture. They also place greater emphasis on setting a good example and
motivating employees rather than gaining favor with shareholders. When
asked about the competencies that were most important to their success
in the past five years, Indian CEOs pointed to shared values and vision
and building their top management team. They also differ from Western
counterparts in terms of flexibility, family-ownership in business struc-
tures, and entrepreneurship/risk-taking. In India, unlike the United States
and European countries, leaders often focus on internal issues because
of the lack of a safety net such as social security or unemployment
benefits and thus Indian companies view investing in employees as
the right thing to do. However, some Indian CEOs tend to be hierar-
chical, which may be perceived as a negative trait. On the positive side,
employee motivation in Indian companies is more personal and inspira-
tional (e.g., helping to pull communities out of poverty) than the typical
U.S. focus on corporate profitability.
How to Address HR Challenges Worldwide Through 2015

(2008)17
The Boston Consulting Group and the World Federation of Person-
nel Management Associations (now the World Federation of People
Management Associations) identified leadership development as essential
for sustainable leadership. With business leaders in great demand in
India, this research reveals that Indian companies plan to quickly increase
their actions to develop leaders. Figure 1.3 highlights the actions that
Indian companies expect to take to promote sustainable leadership. As
this study brings forth, Indian companies are intensely focused on effec-
tive and sustainable leadership in todays competitive marketplace.
Figure 1.3 India: Actions for Leadership Development

(1) Measure leadership skills through 360-degree feedback.
(2) With assistance from external consultants, develop company-specific leadership

seminars.
(3) Employ external coaches.
(4) In the company, develop company-specific leadership seminars.
(5) Through external consultants, assess employee leadership skills.
(6) Use assessment centers to assess employee leadership skills.
(7) Develop country-specific leadership seminars in cooperation with business schools.
(8) Have senior executives assess employee leadership skills through action-learning
seminars.
(9) Develop an internal virtual leadership institute.
(10) Develop an internal brick-and-mortar leadership institute.
Source: Adapted from Boston Consulting Group, Inc. and World Federation of Personnel Management
Associations (2008). Creating people advantage: How to address HR challenges worldwide through 2015.
Boston: The Boston Consulting Group, Inc.
Communication
Effective communication is at the heart of sustainable leadership. In
todays global world, cross-cultural communication is a key leader-
ship competency. While an in-depth discussion of cultural dimensions
is beyond the scope of this chapter, cultural values and behaviors are
important factors, particularly for communication at the leadership level.
(For additional information, see the 2008 SHRM Research Quarterly,
Selected Cross-Cultural Factors in Human Resource Management.)
In his book, Speaking of India: Bridging the Communication Gap
When Working with Indians, Craig Storti, interculturalist, management
consultant, and founder and director of Communicating Across Cultures,
emphasizes that it is critical for Western leaders to understand Indian
culture and communication styles. When Western and Indian leaders
work together, understanding cultural concepts such as power distance
(attitudes of people of different cultures toward authority and distribu-
tion of power) can help mitigate cultural misunderstandings, particularly

expectations around leadership styles and communication.18
In an interview with SHRM, Mr. Storti pointed to the essence of
cultural expectations that workers have of their leaders in India. Leader-
ship in India, he said,
is based somewhat on the model of the father in the Indian fam-
ily, meaning that a good leader would exhibit many of the same
qualities as an exemplary father: someone who looks out for and
protects his workers, who takes responsibility for their develop-
ment (as opposed to the West, where workers are expected to
be largely responsible for their own development), who makes
most of the decisions, and toward whom workers are very re-
spectful, deferential, and unerringly polite. Indian leaders typically
do not consult as much with their subordinates, though they
are expected to make all decisions with the well-being of the
workers as their utmost consideration. A female leader would be
expected to exemplify these same qualities.19
In fact, trends indicate that women in India have an increasing role

in management, particularly in the multinational corporations that are
investing in the concept of a global manager.20
In todays globally dispersed workplace, it is also important to con-

sider the essence of cultural expectations that workers have of their lead-
ers specifically, the ability to communicate effectively across multiple
cultures at the same time. As pointed out by Lorelei Carobolante, SCRP,
GMS, GPHR, SHRM Global Special Expertise Panel member and CEO/
President of G2nd Systems,
communication as a leadership skill has become especially
important, as the convergence of native and non-native English
speakers is changing perceptions about language influence and
cultural inferences. A leader must develop awareness of how he
or she can utilize English as a communication tool and a means
to achieve collaboration, rather than an expression of cultural
heritage, history, and local contexts. Instead of focusing on cul-
tural differences and regionalism, which can impede
actionable communication in the workplace, global leaders must

use strategies to facilitate the transfer of information, which is
often hampered by the use of cultural shortcuts and cultural
presumptions.
Ms. Carobolante emphasizes that using a culturally neutral

approach to communication in meetings, projects, and organizational
directives leverages diversity and inclusion, thus enhancing collaborative
synergy and innovation.
Finally, another important communication leadership competency
is global mindset. This concept has been identified by cross-cultural
management consultants as an essential leadership competency for
todays business environment. Researchers Evans, Pucik, and Barsoux
define global mindset as a set of attitudes that predispose individuals to
cope constructively with competing priorities (for example, global versus
local priorities), rather than advocating one dimension at the expense of
others. Leaders with global mindset work effectively across functional,
organizational, and cross-cultural boundaries. They also work well with
ambiguity, trust process over structure, and are flexible and adaptable.21
These traits are important for Indian leadership sustainability.
The Next Levels of Leadership

The call for the next levels of leadership in India is evident in many of
Indias business sectors, where companies are demanding high-quality
leadership.
A good example is that of the global arena, where the number of
high-performance Indian companies is growing. The April 2009 issue of
Forbes, Global 2000, identifies large publicly traded companies with
exceptional growth rates from nearly 70 countries. Each company stands
out from its industry peers, scored by its rankings for sales, profits,
assets, and market value. Of this group, 47 companies are from India,
in contrast to 27 in 2004. Among them is Mahindra & Mahindra Ltd.,
specializing in consumer durable goods, ranked No. 1,529 out of 2,000
companies.22
Effective leadership clearly contributes to the success of these orga-

nizations. In an interview with SHRM, Rajeev Dubey, GPHR, President
(HR, After-Market & Corporate Services) and Member of the Group
Management Board at Mahindra & Mahindra Ltd., explains:
In a period characterized by exponential growth in global opera-
tions, both organic and inorganic, the big challenge for India,
as well as for Mahindra, is to create global leaders of character
who can champion our core values of customer-centric innova-
tion while building sustained competitive cost-advantage into
our value proposition. That said, at Mahindra we are tackling this
challenge through an imaginative mix of five specific actions:
(1) global assignments, both short and long term;
(2) participation in national and international consortia of
like-minded firms that are working together on global
leadership programs;
(3) creating platforms for problem-solving and action-learn-
ing, where managers from our global operations interact
with domestic managers;
(4) specialized acculturation programs at Bodhivriksha, our
in-house Leadership Centre; and
(5) networking with international leadership organizations for
best-practice benchmarking.
Mr. Dubeys comments illustrate the wide-reaching creativity occur-

ring in some high-performance global organizations in India as they
reach toward sustainable leadership.
Accenture is another example of a successful global organization in
India focusing on leadership, growth and innovation to succeed in the
Indian marketplace. Like other MNCs, Accenture faces the challenge of
talent management, or the ability to find, hire, and keep large numbers
of workers in the Indian marketplace. To address this challenge, senior
management at Accenture focuses on the ability to lead change and
develop leaders among its teams. As agents of change, they help define
the leadership journey and the visionary goal, and measure progress
against achieving the vision throughout the change process. With both its
internal and external clients, Accenture positions senior executive roles
to align constituencies and motivate individuals, thus helping leaders to
envision success and lead change personally.23
Conclusion
On its journey to sustainable leadership, India is pioneering new para-
digms and creating new opportunities for success that incorporate who it
is as a people and culture. At the same time, India is leveraging the best
of Western leadership practices for what it sees as important influences
of global leaders while also determining best practices within India,
adapting to regional styles as appropriate and moving forward on Indian
successes. Ultimately, the global economy needs Indian companies to be
successful and develop sustainable leadership competencies that will sup-
port not only Indian business success but also the global economy. With
strong leadership, India is forging its future and, in doing so, will forever
change the world of business and work.
Chapter 2
Talent Pipelines and Creative

Career Pathways
Indias booming economy with an expected average growth rate of 7

percent to 9 percent for the next five years has fueled rapid urbaniza-
tion and power-stepped the country into globalization. With nearly 50
cities at over 1 million in population each and a rapidly growing middle
class, India has become one of the largest consumer markets worldwide.
Paralleling this extraordinary growth is keen competition for talent.
To understand how Indian corporations are dealing with the war
for talent, SHRM India a wholly owned subsidiary of the Society
for Human Resource Management (SHRM), the worlds largest human
resources (HR) association spoke with HR executives at premier
Indian organizations in Indias eight key industry sectors.
In todays hyper-competitive marketplace, how do Indian corpora-
tions find and keep talent? What are their challenges and solutions?
Rajeev Dubey, President of Human Resources at Mahindra & Mahindra
Ltd., points out that talent/human capital is the key to being globally
competitive, and currently demand far outstrips the supply of human
capital in the Indian scenario. He emphasizes that unless Indian corpo-
rations correctly understand the minds of the people they wish to attract
and retain and tailor their talent management strategy accordingly
India will not be able to create the required human capital pipeline for its
organizations.
17
Although India is steeped in culture and tradition, it is the countrys

demographic and economic changes that will significantly impact busi-
ness sustainability (see Figure 1.1). This chapter presents proactive and
innovative talent management strategies developed by Indian corpora-
tions. In a world that requires thoughtful, creative, and dynamic people
development, HR executives from Indian corporations share their chal-
lenges and successes in the spirit of collaboration and professionalism.
Indias Talent Challenges

In Indias consumer-centric economy, Indian corporations in every indus-
try sector are competing for talent. From the automotive, banking and
financial services, and entertainment sectors to health care, oil and gas,
retail, software, and telecom industries, SHRM Indias research reveals
that talent challenges in Indian corporations are substantive.
Foremost, Indias talent space is complicated and multi-layered.
Every sector is seeking talent. Additionally, many Indian corporations are
grappling for talent along with multinational corporations (MNCs) that
are drawn to India for lucrative opportunities. Overall, candidates with
the required skills and competencies are scarce. The shortage of quali-
fied and employable individuals due to extraordinary growth in every
sector has led to high employee expectations. Further, the mindset of
young people is to change jobs often, with a lack of commitment and
engagement due to many offers in hand. Indicators of success from
employees viewpoint are high salaries, managerial roles, and the abil-
ity to quickly climb the corporate ladder. Never before have the stakes
been higher for Indian corporations to attract, develop, and retain critical
talent.
The demand for change is also reflected in the varying levels of pre-
paredness among Indias cities to compete in the 21st century. Cities are
ranked according to their ability to create and maintain an environment
where industry and new lifestyles can flourish. Depending on their stages
of development, cities in different regions within India offer talent pools
to Indias industry sectors. Tier 1 cities are considered to be the most
Talent Pipelines and Creative Career Pathways 19
attractive from the perspective of infrastructure (power, water, roads,

telecom, airports), access (hotels, domestic and international connectiv-
ity), skills availability (maturity of workforce, language, global MNC
experience), cost of living, political support, and overall quality of life.
For example, Mumbai, New Delhi, and Bangalore are Tier 1 cities. Tier
2 cities are emerging with reasonably good value propositions, along
with increasing activities of interest to business investment and strong
local political support. Tier 3 cities have begun to consider key growth
industries but are often not yet prepared from a practical sense. Going
forward, the various tier cities will offer Indian corporations new geo-
graphic and demographic areas from which to grow and establish talent.
Indias Major Industry Sectors

Each sector in India offers different opportunities and attracts different
types of people. SHRM Indias interviews with Indian HR executives (see
Figure 2.1), based on their extensive experience and knowledge, reveal
candid insights about these industries.
Automotive: An auto passion environment, with exponential growth,
possibilities of a global assignment, opportunities for innovative and
transformational activities, challenging assignments, and a culture of
empowerment.
Banking and financial services: Pride and prestige associated with work-
ing in this well-paying sector; generally, the talent pool is limited to Indias
private sector banks and MNC banks, with state-owned banks having 75
percent of the talent pool.
Entertainment: A creative environment with learning and development
opportunities, attractive work ambiance, recognition of achievements, and
flexibility in compensation and benefits packages, with opportunities to
select from a number of fringe benefits.
Health care: An opportunity to make a difference in human life; research
and knowledge-driven, with high growth and global opportunities.
Oil and gas: An important part of the world economy; prospects of high
career growth and a challenging work environment; becoming a preferred
employer vis--vis remunerations and adoption of attractive work/life bal-
ance measures.
Retail: In 2008, India ranked No. 2 (preceded by Vietnam and followed by
Russia and China) in the A.T. Kearney Global Retail Development Index
as the most attractive market for retail investment. The Indian retail market
is estimated to grow from the US$330 billion in 2007 to US$427 billion by
2010 and to US$637 billion by 2015.
Software: Candidates attracted to this sector by love of technology; it
offers employee-friendly work benefits (e.g., flexible work hours), excellent
pay, work challenges, and a perceived accelerated growth opportunity.
Telecom: Indias fastest growing sector and of relatively recent origin;
the workforce profile is a blend of professionals who have moved in from
different sectors; constantly changing and evolving; now focusing on rural
market penetration.
Figure 2.1 Companies Interviewed in Major Industry Sectors in India

Industry Sector Name Title Company
Automotive Rajeev Dubey President, Human Mahindra & Mahindra
Resources Ltd.
Banking and financial R. Venkattesh Executive Vice Development Credit
services President and Head Bank Ltd. India
of Human Capital
Entertainment Saagarika Rai Chief People Officer Reliance Big
Entertainment Pvt. Ltd.
Health care Sanjay Muthal President, Human Nicholas Piramal India
Resources Ltd.
Oil and gas Dr. A. K. Balyan Director of HR Oil and Natural Gas
and Business Corporation
Development
Retail Bijay Sahoo President and Chief Reliance Retail Ltd.
People Officer
Software Renuka Sundar Director Human SoftBrands India Pvt.
Resources Ltd.
Telecom Arun Mansukhani Associate Vice Vodafone Essar Limited
President, Human
Resources
Creative Initiatives
To attract and recruit talent, Indian corporations design unique initia-
tives. In the entertainment sector, for example, Reliance Big Entertain-
ment Pvt. Ltd. focuses on developing creative recruitment and branding
approaches to maximize the companys attractiveness to possible candi-
dates. Saagarika Rai, Chief People Officer, states: We firmly believe that
in an increasingly knowledge-based world, investing in people is what
will pay off in the long run, and therefore, we remain sensitized to the
need for an ongoing learning mode. One such investment is the com-
panys initiative known as BIG Animation, in which people are recruited
from rural areas and groomed to become independent artists in the field
of animation, with the support of scholarship programs funded by Reli-
ance Big Entertainment Pvt. Ltd. This program illustrates the companys
reputation of providing employees with empowerment, enrichment and
trust in a work environment that fosters camaraderie, pride, credibility,
respect, and fairness.
In the banking and financial services industry, talent is considered
to be premium. Despite this perspective, Development Credit Bank
Ltd. India (DCB) goes outside of the existing talent pool, beyond tradi-
tional markets. As R. Venkattesh, Executive Vice President and Head of
Human Capital explains, We have focused on young candidates who
need training, but who have the right attitude and a high amount of drive
and energy to make things happen, both for themselves and the orga-
nization. Through its Hire & Train initiative, DCB hires candidates
from diverse industries and puts them through a certification program
to create bankers. For customer service roles, DCB hires management
trainees from the hospitality sector, where workers already provide ser-
vice with a smile. DCBs training ensures that candidates are equipped
with knowledge of banking products, processes, compliance, and regula-
tory information. Deterrents are training time, the learning curve and the
risk that incumbents will leave for another organization.
In India, retail is an emerging industry with unique talent challenges:
a shortage of skilled talent, 35 to 40 percent annual attrition, and not yet
being viewed as a profession. Many local and global players in the Indian
retail market are vying for the same talent pool and skill sets, leading
to spiraling compensation levels and increasing pressure on the bottom

line. However, the retail industry does not need highly specialized skills,
as more than 90 percent of retail positions are at the frontline level, for
which people can be trained. At the same time, organized retail offers
opportunities to people from multiple industries and varied backgrounds,
such as consumer durables, agricultural products, real estate, and opera-
tions, including support functions (e.g., information technology, market-
ing, finance, and human resources).
Organized retail also provides economic security to people, particu-
larly those in rural areas. As Bijay Sahoo of Reliance Retail Ltd. explains,
In Indian villages, there are very large numbers of people who
are either unemployed or underemployed, because too many
depend on limited land resources for agriculture. People from
villages are also less privileged regarding higher education,
as most do not go beyond the 10th or 12th year of education.
Additionally, they have limited opportunity for employment in sec-
tors other than retail, as most other industries require technical/
professional education or training. Since the retail industry, at
the store associate level and in many other back-end operations,
does not require a high level of education, people can be trained
for those operations. Thus, with the opening of the retail sector
in India, over 2 million job opportunities are likely to be created
in the country over the next four to five years. Reliance, a major
organization in this sector, will play a significant role in creating
employment for large masses of people, including many who are
migrating for employment from rural to urban areas. The retail
sector can provide a career entry where they can climb up the
socioeconomic ladder based on their learning and efforts.
A well-respected Indian retail corporation, Reliance Retail Ltd.

launched its first store in November 2006. The companys expan-
sion plans required a continuous supply of trained manpower to meet
business requirements. To ensure this continuity, key initiatives were
created, and they have been highly successful for rapid growth. Such
programs include Each One Brings Ten (EOBT), Train and Hire
Model for Frontline Manpower, and the hiring of expatriate subject
matter experts. The company also has structured training and devel-
opmental programs that continuously build and upgrade the organiza-
tions human capital through inputs in various behavioral, technical and
techno-functional areas. For EOBT, each new hire was encouraged to
bring 10 new people into the organization. Under the Train and Hire
Model, the company has partnered with several vocational training
institutes across the country, namely Industrial Training Institutes (ITI)
for frontline workers, where candidates are provided with training on
soft skills and functional areas and then go through an assessment pro-
cess. The company also hired expatriates as subject matter experts from
across the world (where retail industry had reached levels of maturity) to
support defining processes, identifying technologies, building capability,
and enabling knowledge transfer. Through these programs, the company
opened 700 stores in less than two years while educating, employing, and
empowering nearly 30,000 people.
Talent Development
Identifying and developing talent are critical pathways for Indian cor-
porations to sustain their talent pipeline. The pharma sector (pharma
is the Indian term for the pharmaceutical industry) is challenged by
being highly fragmented and having low profit margins. Consequently,
this sector is taking steps to encompass talent from different directions.
As Sanjay Muthal, President of Human Resources at Nicholas Piramal
India Ltd. (NPIL), explains, To create our talent pipeline, we are now
focusing on talent from Tier 2 and Tier 3 cities, partnering with schools
in remote locations and giving customized training to young, aspiring
students. Serious about leadership talent development, NPIL focuses 70
percent on internal talent, with its own assessment centers to develop key
talent in diverse roles and partnerships with universities to develop future
leadership talent, with emphasis on managerial, entrepreneurial, and
negotiation skills. NPIL has also created a new brand focused on the core
values of knowledge, action and care. Finally, a robust and transparent
appraisal process reinforces the NPIL brand and core values, contribut-
ing to success in recruiting and retention.
The software sector requires specific talent development tailored

to compete in todays global marketplace. A global organization in this
sector, SoftBrands India Pvt. Ltd. launched its leadership program to
develop high-potential employees. This one-year global program focuses
on 12 different people/management topics. The key goals are to establish
consistency of management practices in a global organization, strategize
employee growth, establish a common language in the company culture,
and focus on strategic and long-term business plans to enable company
growth. This program is enormously successful in retaining managers
and demonstrates the companys strong dedication to develop talent in its
workforce.
Growth in Indias oil and gas sector has led to a strong demand
for oil professionals. The challenge is to find, train and retain talent, as
professionals in todays Indian marketplace tend to prefer softer jobs
in sectors such as IT, where the work environment is much less strenu-
ous compared with oil exploration and production activities. Addition-
ally, there has been a decline in student enrollment in courses leading to
careers in the oil industry, and the skills of fresh graduates are at a sig-
nificant mismatch in terms of required skills at the worksites. As a result,
nationalized oil companies in India are partnering together to launch a
state-of-the-art university exclusively devoted to petroleum studies, with
greater emphasis on the curricula.
As a state-owned listed company, Oil and Natural Gas Corporation
(ONGC) has traditionally operated on the practice of lifelong employ-
ment. Yet, keeping in sync with the changing mindsets of todays young
people, ONCG now offers four-year term appointments at higher remu-
nerations to meet the demands of frontline field operations, as well as
reemployment of former employees. Further, with an overall focus on the
companys young workforce, ONGC offers development opportunities
and challenging assignments. ONGC has also introduced a new career
option the dual-career ladder a practice followed by some interna-
tional oil companies. There are two possible career avenues: the general-
ist track and the specialist track. After being inducted in a common pool
and then crossing a specific career band and rigorous testing of aptitude
and competence, employees have the option to move to the specialist
track to provide specialist services rather than working in operational

roles. Finally, a highly successful strategy at ONGC to retain talent is
acknowledging outstanding achievers with rewards such as full expenses-
paid family vacations in India and providing laptop computers and cell
phones to ONGC executives to assist with time management. Success is
evidenced by the low attrition levels (less than 1 percent), down nearly 20
percent over the past year.
Strategic Pathways
As Indian corporations seek to attract, develop and retain talent (see
Figure 2.2), they center their strategy on how to keep the right talent.
The telecom industry, for example, has enormous employment opportu-
nities and is moving at a dynamic pace. As Arun Mansukhani, Associate
Vice President, Human Resources, at Vodafone Essar Limited, points out,
The telecom industry invests heavily in training and development. It is a
unique blend of technology, product and customer service orientation.
In fact, this sector is an amalgamation of many industries rolled into one.
Yet, Mansukhani cautions that the extraordinary speed of growth needs
to be well managed. For instance, due to the large scale of operations,
it is common for young managers to have significant responsibility at a
young age. In a country where age is traditionally equated with wisdom,
the rapid increase of managerial ranks filled with younger workers
represents the whirlwind of change occurring throughout India. Moving
forward, one of the most critical challenges of Indias telecom sector is to
hire talent for its upcountry (northern) and rural markets.
Figure 2.2 Talent Management in Indian Corporations

Finding talent Developing talent Retaining talent
Scarcity of talent Focus on different groups Emphasis on benefits of sector
with required skills/ young people, managers, culture, growth, rewards
competencies etc.
Competition from other Emphasizing a learning Focus on employee
sectors culture engagement
Competition from global Customized training Home-grown leadership
firms through leadership
development programs
Mindset to change jobs Partnering with universities Corporate social responsibility
frequently and professional institutes activities volunteer
opportunities
Unrealistic employee Recruiting from varying Domestic and global special
expectations geographic and demographic training assignment
areas in India and
worldwide
Known in India for its reputation in the automotive sector, Mahin-

dra & Mahindra Ltd. developed a talent management process, with the
primary purpose to create a talent pipeline to ensure that the organiza-
tion has the skills and competencies required to successfully implement
its strategic business plans. This process promotes ring-fencing key
talent (an expression that means corralling/keeping). Under the guid-
ance of the Apex Talent Council and the CEO, senior executives head a
network of business and functional talent councils. Through this vehicle,
the talent pipeline is reviewed during the year, with succession planning
for critical positions kept in mind. A platform of learning is established
by nominating high performers to shadow boards, where they work
alongside board members, observing their activities and actions to get
exposure to the business. During this two-year appointment, employees
work on strategic issues facing the Group and make presentations to the
Group Management Board.
Additionally, through its membership in domestic and international
consortia for global leadership programs, the Mahindra Management
Development Center runs leadership lifecycle programs. The company
also recruits individuals from U.S. Ivy League universities, works with the
Mahindra Alumni Association to attract and recruit people, and taps the
expatriate pool. These initiatives are successful, in large part due to the
time committed by top management and the fact that the organization is
a conglomerate that can offer assignments across businesses and geogra-
phies, which is relatively unique in the Indian context. Talent recruitment
and development programs are successful because they are driven by
rigor and discipline and tracked with metrics.
Corporate Social Responsibility

A core part of Indian culture supporting those less fortunate and the
community at large has long been an important part of Indian busi-
ness process. Long ago, this took the shape of village leaders providing
food for the elderly and the poor on a daily basis. Today, this philosophy
takes both similar and new forms, and employees appreciate being part
of an organization that does good deeds. Since 2007, SoftBrands India
Pvt. Ltd. has been supporting children who live in a very poor com-
munity called Bandepalaya Village near Bangalore. Employees and their
families volunteer time to teach and provide medical care at the school
and clinic, and the company contributes funds for mid-day meals and
teachers salaries. Renuka Sundar, Director of Human Resources at
SoftBrands India Pvt. Ltd., points out the importance of corporate social
responsibility (CSR) activities for retention, emphasizing that employees
get a sense of being part of something larger than themselves and make
an impact in other peoples lives.
Other examples include that of Reliance Group, with its focus on
health care through its charitable hospitals that offer free and subsidized
services to patients availing of its various diagnostic and treatment facili-
ties. The company also supports education and learning by sponsoring
children in underprivileged communities and promoting people there to
acquire primary and secondary education. Its Excellence in Learning Pro-
gramme for upcoming social economic zones, where 100 supplementary
teachers were attached to 100 government schools, focuses on making
learning fun. Mahindra & Mahindra Ltd. believes that employee partici-
pation in CSR activities not only helps to create the Mahindra culture
but also creates better leaders. CSR focus areas are: (1) education, with
special attention on the girl child; (2) the environment; (3) and public
health, including an AIDS initiative by the companys auto sector.
Thus, CSR in India serves the community, society and organizations.
As Indian corporations continue to search for talent, CSR provides a
wealth of opportunities to build leadership skill and competencies and to
retain high performers by engaging them in CSR projects.
Looking to the Future

Going forward in todays world economy, talent management strategies
will continue to be the pinnacle of sustainability in India. Lessons learned
and shared by Indian corporations regarding human capital and talent
development will foster prosperous organizations and promote a healthy
socio-economic environment in the years to come.
Chapter 3
Women in Management
Today, India is a force in the global economy, with a high demand

for talent. A key source of talent is educated Indian women. While
Indian corporations have not yet fully recognized or utilized this talent
pool, the growing gender diversity in Indian managerial ranks now
offers a pathway for change for Indian women. Cultural and societal
change means a shift away from traditional views, stereotypes, and
societal attitudes, with increasing opportunities for Indian women in
management. While change is slow for Indian women to gain executive
positions, they have made progress in management in a relatively short
time.
This chapter provides a glimpse into the status of women in manage-
ment in India. Based on in-depth interviews by the Society for Human
Resource Management (SHRM) with Indian professional men and
women and findings from Indian research studies, this chapter aims to
present perspectives that offer an increased awareness of the challenges
and opportunities for women in management in India. Both Indian and
non-Indian audiences will find this information insightful: Indian women
considering career choices and/or aspiring to managerial roles, multina-
tional corporations doing business in India, Indian corporations seeking
a pipeline of talent, and those wanting to learn about women managers
in the Indian context.
29
Cultural Context
Historically, India has been a male-dominated society. Yet, in the past
two decades or so, social change has opened the possibility for women
to attain managerial roles in corporate India. As more Indian women
enter the workforce, particularly in the corporate world, this change is
in dramatic contrast to the traditional Indian culture, where a womans
expected role has been to marry, raise the family, and take care of the
household.
Amartya Sen, Indian author and winner of the Nobel Prize in
Economics, discusses gender inequality in his book The Argumentative
Indian: Writings on Indian History, Culture and Identity. He points out
that the social movement for Indian women had been until recently
primarily focused on achieving better treatment of women and their
well-being:
In the course of the evolution of womens movement []
women are not passive recipients of welfare-enhancing help
brought about by society, but are active promoters and facilita-
tors of social transformations. Such transformations influence
the lives and well-being of women, but also those of men and
children boys as well as girls. This is a momentous enrichment
of the reach of womens movement.1
Historically, the girl child in the Indian family often did not have
formal educational opportunities. Slowly, the literacy level of girl children
is increasing, and gradually, women have begun to attend universities.
Today, the number of women students in business schools has grown
significantly. These changes are in large part due to a significant cul-
tural shift in parental perspective that is, an increased acceptance
of giving education to girls that allows for the possibility of women
working outside the home, contributing economically to the family and
even pursuing a career. With more Indian women in the workforce, a
number of employment laws, such as the Equal Remuneration Act of
1976, address equality in the workplace.2 Yet, with long-held traditional
and social views of women, and despite legislation, change can be slow.
While female students graduate with honors from excellent business and
Women in Management 31
engineering schools, most top positions in Indian corporations are still

held by men.3
The percentage of women in management in India is roughly 3
percent to 6 percent,4 with approximately 2 percent of Indian women
managers in Indian corporations.5 However, almost 96 percent of women
workers are in the unorganized sector,6 and most statistics focus on labor
in the organized sectors, leaving out the many workers in the unorga-
nized (informal), unstructured sectors of the economy. According to the
Office of the Registrar General in India, the 2001 India Census shows
that the work participation rate of female workers in rural areas is 31
percent and 11.6 percent in urban areas.7
Employment numbers for women, further detailed in Women
Workers in India in the 21st Century Unemployment and Underem-
ployment, indicate that of Indias 397 million workers, 123.9 million
are women: 106 million women are in the rural areas and 18 million
in the urban areas. However, only 7 percent of Indias labor force is in
the organized sector (including workers on regular salaries in registered
companies), with the remaining workers (93 percent) in the unorganized
or informal sectors.8
As a brief comparison, in the United States in 2008, of the 121
million women ages 16 years and older, 72 million (59.5 percent) were
labor force participants. Women comprised 46.5 percent of the total U.S.
labor force (68 million women were employed in the United States 75
percent of employed women worked in full-time jobs, and 25 percent
worked on a part-time basis). Women are projected to account for 49
percent of the increase in total labor force growth between 2006 and
2010. In 2008, the largest percentage of employed women (39 percent)
worked in management, professional and related occupations, and
women accounted for 51 percent of all workers in the high-paying man-
agement, professional, and related occupations.9
Globally, the number of women senior managers in large corpora-
tions is low. The March 2009 report, Women CEOs of the Fortune
1000, published by Catalyst (the U.S. firm working to expand opportuni-
ties for women and business), identifies the women CEOs of the Fortune
500 and 1,000 companies. Of the Fortune 500 companies, 15 CEOs are
women, including one Indian woman, Indra K. Nooyi, PepsiCo, Inc.
(No. 59). Of the Fortune 501-1,000, there are nine women CEOs.10 The
statistics at the CEO level of these large companies clearly show that
there is much progress to be made for women worldwide at this level of
management.
Movement for Change

As social values change, Indian women have been entering the work-
force in the past couple decades. Globalization has brought an influx
of multinational corporations to India, with Western HR practices and
concepts such as gender diversity in leadership roles. As opportunities
for women in management in India slowly increase, women are enter-
ing professions previously seen as the domain of men in the corporate
world: advertising, banking, civil services, engineering, financial services,
manufacturing, police and armed forces, and emerging fields such as IT
and communications.11
At a recent speech to the Ladies Circle International, Her Excel-
lency, the President of India, Shrimati Pratibha Devisingh Patil, showed
her strong support of women and their potential to bring about change
in society. She pointed out that to bring about gender equality, it is neces-
sary to focus on educating and empowering women. Ms. Patil empha-
sized the need to strengthen processes that will promote economic and
social development of women and urged this organization to increasingly
concentrate its energies in this area. (To read the entire speech, please go
to http://presidentofindia.nic.in/sp210809.html).12
Women in India have held important roles in politics, social organi-
zations and administration. As noted by Dr. Sudhir Varma, a specialist in
the field of gender and development in India, with a 36-year career in the
Indian Administrative Service (the national civil service in India),
in spite of cultural and social taboos, more and more educated
women are able to reach very high levels in the government,
and the number of women in the corporate sector is gradually
growing. There is no doubt that they have to constantly prove
their efficiency to go up each step of the ladder. Corporate
Indian women, earlier docketed into the routine repetitive work
sectors like information technology, now head several national

and Indian offices of international banks. They are also heading
business and manufacturing houses.
Dr. Varma, currently the Director of the Social Policy Research Insti-
tute (SPRI) in Jaipur, India, points out that
it is true that women face a certain amount of opposition from
their male colleagues, but they now have full government support
to grow along with men in their respective spheres. More and
more women are now enrolling in MBA and other highly profes-
sional courses, and there is no bias against them during their
placements.
Generally, the Indian literature about women in management is lim-

ited. Yet, while research reveals a challenging environment for women in
the business world in India, there is positive movement. Professor Pawan
S. Budhwar, Head of Group, Aston Business School at Aston Univer-
sity in the United Kingdom, has written extensively on human resource
management issues in India. In the 2005 study Women in Management
in the New Economic Environment, he and his research team point out
that developments in information technology and related services sec-
tors are helping women in India to move out of their traditional house-
hold roles and develop a career in organizations. At the same time, they
emphasize that merely having programs for women in the workplace will
not be sufficient. Rather, there must be a true commitment on the part
of senior management to hire women managers, including a policy for
advancement linked to the business strategy.13 Indian women as manag-
ers offer key strengths, as noted in Figure 3.1. In fact, a good example of
an Indian organization well-known for its women management is ICICI
Bank Limited, Indias largest private bank. Its Managing Director and
Chief Executive Officer is Chandra Kochhar, who began her career with
ICICI as a management trainee in 1984 and has headed the major func-
tions in the Bank in different assignments over the years.14
Significant change in the workplace takes time. An article published
in India Together points out that while media headlines project an image
of great change by highlighting the few women who make it to the top,
such news coverage can be misleading. There is much work to be done

to achieve gender equality within Indian corporations, with systemic
changes needed, to make sustainable change a reality.15 At the same time,
Professor Sujoya Basu, a member of the Faculty of Behavioural Sciences
at the Indian Institute of Management Calcutta, argues that transfor-
mation in the Indian context for women in management can happen
through policy and regulations that promote gender diversity and quality
contact. She emphasizes that change can occur through the collective will
to change the mindset of people to overcome gender differences at the
educational and organizational levels.16
Figure 3.1 Key Strengths of Indian Women as Managers

Ability to network with colleagues

Ability to perceive and understand situations

Strong sense of dedication, loyalty, and

commitment to their organizations

Ability to multitask

Collaborative work style solicit input from

others, with respect for ideas
Crisis management skills

Willingness to share information (interactive
leadership style)
Sensitivity in relationships (e.g., compassionate,
empathetic, understanding)
Behaving in a gender-neutral manner

Source: Adapted from Budhwar, P. S., Saini, D. S., & Bhatnagar, J. (2005, June). Women in management in
the new economic environment: The case of India. Asia Pacific Business Review, 11(2), 179-193.
Research Studies
The Indian literature on Indian women managers highlights challenges
and opportunities for women and for organizations. A number of
studies, spanning the years 2002 to 2008, document positive progress
for women in the Indian management space as well as barriers to their
progress. Research shows that the economic development of India has
been positively influenced by entrepreneurial enterprises. The 2007 study

Women Entrepreneurs in India notes that nonprofit and for-profit sector
organizations provide economic growth and prosperity. Further, entre-
preneurship has provided women in India the opportunity to enter social
and political circles previously closed to them. Family background and
support play an important role to achieve independence and move above
the confines of a male-dominated traditional society. Experience in the
sector, social class, caste, and education are important. For most women
entrepreneurs, financial stability in the household and family support are
critical for their success.17
However, women in management face challenges due to stereo-
typing. A 2002 study, Gender Stereotypes at Work: Implications for
Organizations, notes that stereotypes and perceptions of Indian women
in the workplace appear to have had a significant negative impact on
the position of women managers. This study suggests that Indian male
managers are viewed, stereotypically, as working in the areas of sales,
marketing, and production; being good leaders, decision makers, and
bosses; and handling challenging assignments. On the other hand, Indian
women are viewed as working in public relations, human resources,
and administrative positions at low to junior levels, and in fields such as
fashion and beauty.
Women in Indian organizations felt that such stereotypes result from
not being given challenging assignments. Yet, male managers saw women
as being treated more leniently than men when making mistakes.18 A
2008 study, Gender Stereotypes in Corporate India: A Glimpse, explored
existing gender stereotypes in corporate India. According to this research,
Indian men managers held similar managerial gender stereotypes as
found in earlier Western studies. That is, they associate managerial suc-
cess with men more than with women (think manager think male).
In contrast, Indian women managers did not project gender stereotypes
on managerial positions.19
A 2005 study of senior women in public and private sector firms,
titled Women in Management in the New Economic Environment: The
Case of India, found that women look for work from economic necessity
and for personal goals. Women in lower to middle socioeconomic status
seek income opportunities, and those in the upper middle class pursue
a career for professional ambitions. Women with higher education have

more interest in independence, are career-oriented and interested in
quickly moving up the organizational ladder. At the time of this study, 40
percent of female students attended management institutes in India. The
key challenge for women managers is managing both their traditional
role as housewives and their career. Women experience great pressure to
work hard to prove themselves in the workplace, and one of the greatest
obstacles is how women managers are treated by men. They often receive
differential treatment, reinforcing the stereotypical view of being inferior
and less important than men, resulting in not being offered challenging
jobs and not being part of important organizational issues. Yet, despite
social and attitudinal barriers, Indian women have gained some equal-
ity. Indian organizations are beginning to realize that women can do the
same work as men, although in some cases, they have different needs.20
Finally, a 2006 study, Women Managers in India, explored key
issues for women managers in corporate India in service and manufactur-
ing sectors and considered perspectives of men and women managers.
The study found that when it comes to hiring practices, most men and
women managers see employment as based on merit, not gender (90
percent men and 79 percent women), but only about one-third think that
organizations look for ways to increase the number of women in senior
management roles. In terms of organizational perceptions of importance
of gender issues, overall, Indian organizations lack sensitivity about these
issues and underappreciate womens capabilities and talents. The study
also examined management skills and leadership style and found that
generally, men tend to want women to act like men, and most men are
not comfortable working for a woman manager. Overall, women prefer
an interactive style, and men prefer a command and control style. To be
successful in business, women develop management styles that make it
more comfortable for men to work with and/or report to a female man-
ager. Lastly, the study concluded that major barriers to womens advance-
ment to corporate leadership include lack of mentoring of women,
lack of awareness by women of company politics, and an inhospitable
corporate culture.21
Perspectives of Indian Women Professionals

To learn more about Indian women managers, SHRM conducted inter-
views with four Indian women professionals:
Archana Bhaskar, HR Director, Shell Companies in India
Hema Hattangady, Vice Chairman and CEO, Schneider Electric
Conzerv India
Dr. Juhi Kumar, Assistant Professor, Weill Cornell Medical College
Navodita Varma, SPHR, President, Maanasvi LLC
Each of them offers a broad range of experience from her respec-

tive career physician, business owner, HR director, and CEO. Their
perspectives reflect many of the research findings about Indian women
managers. All emphasize the importance of family support, higher educa-
tion, mentors, belief in ones capabilities, and a strong focus on personal
and professional goals (see Figure 3.2).
Figure 3.2 Recommended HR Management Practices to Create a Women-

Friendly Organization
Senior management commitment to
gender issues
Career development programs for women

Exposure of women to top management

Leadership development programs
for women
Job rotation for women

Recruitment of women at senior-level

Regular survey of women to assess job

satisfaction
Mentoring programs for women

Child care facilities at work

Source: Adapted from Saini, D. S. (2006). Labour law in India. In H. J. Davis, S. R. Chatterjee & M. Heur (Eds.)
Management in India: Trends and Transition (pp. 60-94). New Delhi: Response Books.
While biases still exist in Indian society, each of these Indian women
professionals sees expanding opportunities for women in India. As one
of the interviewees points out, we have indeed come a long way, from
a nation condoning practices like female infanticide, dowry deaths, and
sati to one that endorses and encourages education, economic remunera-
tion for the family, and economic and social reforms that have resulted in
macro-level changes in the country and within organizations.
Socioeconomics
As mentioned earlier, changes in the Indian economic environment
are helping to shift traditional attitudes about women in the workplace.
Dr. Juhi Kumar, Assistant Professor in Pediatric Nephrology at the Weill
Cornell Medical College, New York City, remarks on the changes that
she has seen.
In the past 10 years that I have been away from my country,
things have changed tremendously, and what gives me immense
pride is the evolving role of women in the Indian workforce. Ten
years ago, there were limited numbers of women in the work-
force, in traditional professions like teaching and clerical-level
positions in banks. Now, when I go back to India, I see women
in increasing numbers in managerial positions.
As a result of economic changes, the earning potential of women has

increased in importance.
As one woman notes, with the economy growing so fast and
more people moving into the middle class, there has emerged
a need for both the husband and wife to work in good jobs to
maintain a quality of life that has become the order of the day.
As Archana Bhaskar, HR Director for Shell Companies in India,

observes,
there is certainly positive change for women in India in the
workplace. There is a gap in the Indian talent market, with signifi-
cantly more jobs than talented people. Today, women are thought
of as great managers, often pursued strongly by search firms. In
fact, several firms have targets to achieve on women numbers.
She goes on to explain that more and more women are now in
professional careers. Multinational corporations have clearly led the way
with their practices on diversity. The real change, though, has happened
with the advent of the IT and business process outsourcing (BPO) indus-
tries, which has employed significant numbers of women and brought in
best practices to enable women staff. In her experience,
Shell is absolutely a fantastic place for women to work. The
diversity and inclusion practices and thinking are very advanced
and well engrained. The core values of respect and inclusion for
people and work/life balance, as well as flexible work practices,
are seriously pursued, resulting in an environment where women
thrive.
Hema Hattangady, Vice Chairman and CEO of Schneider Electric

Conzerv India (formerly Conzerv Systems), notes that the presence of
Indian women managers ranges between a high of 6 percent and a low of
3 percent. Women can be seen mainly in human resources, information
technology, administration, and other support functions. She emphasizes
that there is still a lot to achieve with regard to women in management
positions in India.
Although ever-evolving HR practices, diversity practices, and
factors like education have led to an increase in the number
of women working in India, there is still a lot left to be done to
develop, encourage, and empower women for management posi-
tions.
Family and Education

Education is the key differentiator for women in India. Education
of women is being given great importance, and what is heartening is that
this change is permeating not only to the middle class but even to the less
well-to-do lower-class families, states Dr. Kumar. Change in India is
painfully slow, and it will probably be another decade before this shift
to education for women reaches the villages where most of the India
population resides.
The stories of the four women interviewed for this chapter point
to the criticality of family support and education for career success. As
principal of her own HR consulting firm, Navodita Varma, SPHR, points

out that coming from a family that valued education was very important.
I come from a well-educated upper-middle-class family. My
grandfather was a professor of political science and had written
many books on that subject. My father has a masters degree in
physics, and my mother, a masters in history. After getting my
MBA in human resources, I was fortunate to get good jobs. My
husband pushed me to achieve as much as I could.
Hema Hattangady, who heads up Indias largest energy management

company, had unexpected changes that strongly influenced her life. The
loss of her father when she was 19, and the resulting financial situation,
contributed to learning some tough lessons.
It was at that time that I vowed never to depend on anybody for
financial support again. Consequently, my education has played
a key role in my professional success in terms of helping me get
some leverage in the business world where credentials can play
an important part with regard to getting a foot in the door. The
fact that I was armed with an MBA from IIM, one of the premier
management institutes in India, helped convince my people that
I could definitely be of some use in our then small family-run
enterprise.
Born into a family of teachers, Dr. Kumar received constant encour-

agement from her family on her professional journey. Her mother had a
dual masters in Hindi literature and history, and a bachelors degree in
education, and this level of education was unusual for women in India
at that time. It is these major influences that continue to guide me and
help me live my life by a certain set of values and principles, says Dr.
Kumar. She points out that her husband provided tremendous support,
and through his encouragement, after moving to the United States, she
got a masters degree and then went on to do her residency in pediatrics
and fellowship in pediatric nephrology, and now has a teaching position
at a prestigious medical university.
Education and family support strongly contributed to the career
aspirations of Archana Bhaskar, who now has a high-level position in
human resources in a multinational corporation. She came from a typical

middle class background in a Tier 2 city (Tier 2 cities are emerging
with fairly good-value propositions of increasing interest for business
investment and strong local political support).
My parents laid great emphasis on excellence in education and

were willing to go to great lengths to support me in getting the
right academic opportunities. My mother is very well educated (a
dual masters in political science and law), but she did not work
after getting married. She was fierce about my being able to be
financially independent and what that means to a womans life.
Social Expectations
In India, the roles expected of a man, as the bread-winner, and a
woman, as the home maker, have been refined. Yet, as do many career
women in Western countries, Indian women struggle with work/life
balance. India still has strong traditional social expectations, and not
all women can easily juggle both family obligations and a professional
career. Ms. Varma notes,
The expectations from the husbands family after marriage
which include the woman giving up her career after marriage,
childbirth and then expectations that if she works outside of
the home, she still needs to look after the in-laws, the house,
the children, and the husband can prove to be too much for
many women to handle, and they end up giving up their careers
midway.
As noted in Indian research cited earlier in this chapter, social atti-

tudes and the difficulties of work/life balance are often among the major
challenges for Indian women professionals. Ms. Bhaskars experience
illustrates some of the difficulties in the workplace for women.
When I started working after my post-graduation in business
management, there was not much support for women managers.
You had to be like one of the men to succeed, work/life balance
was almost thrown out of the window, and the one or two wom-
en that were in my organization were busy trying to compete
with each other rather than help! Male colleagues and managers
consistently refused to take me seriously, saying I was in the job
for entertainment rather than to make a professional success.
Success Factors
As the four Indian women professionals point out, a number
of factors contribute to success for the modern Indian women in the
workplace. Ms. Varma emphasizes that a good education, effective
communication skills (both written and oral), as well as a very profes-
sional attitude toward your work and co-workers, are the key to attain
managerial roles. Mentors are also important, and I was lucky to get
good bosses early in my career who gave me full freedom to work and
to take decisions and who were mentors for me. Hema Hattangadys
mentor, Mr. T. Thomas, the former Chairman of HLL India and Uni-
levers first Asian director, was instrumental in her success: Once you
have a mentor who backs you, you have the confidence to move for-
ward. Some of her challenges included being a novice female CEO in
a male-dominated technical marketplace, supervising a father-in-law,
brother-in-law, and husband, and creating a brand from scratch. Men-
toring is one of the principal reasons that I was successfully able to turn
a fledgling family-owned concern into a world-class energy management
organization.
Being a lifelong learner is also essential for success. According to Ms.
Hattangady,
tacking a new education line onto your resume proves to your
employer that youre committed to improving your skills and that
you care about being good at your job. Besides simply raising
your salary and hopefully earning you a little more attention, a
masters in business administration can also help decrease the
gender gap. While women without a bachelors degree earn
on average 9 percent less than their male counterpart, an MBA
decreases that gap to about 4 percent.
Finally, as Archana Bhaskar shares from her experience, success is a

mix of tradeoffs, perseverance and focus.
I succeeded largely due to my professional excellence and
intellectual abilities and, of course, unstinting support from my
husband. However, there were times when I had to often make
choices and limit my sphere of impact (that is, perform below my
capacity) in order to optimize my life and career. Somewhat later
into my career, sponsorship and mentoring played a key role in
getting the right breaks. Being able to define clear personal/pro-
fessional choices was important.
Perspectives of Indian Men Professionals

To provide balance to this chapter by offering the Indian male perspec-
tive, SHRM spoke with two Indian HR executives who are men. Both of
them clearly point to change through society and strongly acknowledge
the value of women in management. One of the men interviewed is a
Vice President of Operations, with responsibility for strategic human
resources, change management, global staff, and talent management, at
a global IT company. He notes that globalization has had an immense
impact on the traditional Indian society and, consequently, on women.
Society is trying to catch up with a changing world but slowly. From his
viewpoint,
the good news is that it is moving forward and not backward. I
had a lot of female members in my offshore team who used to
work late in the night and were as effective and, in some cases,
even better than their male counterparts.
He has also points out that women with family support are much
better positioned to do well in corporate India. He adds, Men are will-
ing to accept women as their managers, but they would expect them to
display the two Cs [character and capability]. He suggests that women
should derive inspiration from positive role models, such as Indias Presi-
dent and First Lady, Shrimati Pratibha Patil, and Shrimati Sonia Gandhi,
the leader of the ruling party, the Indian National Congress Party. He
also notes that the Indian government provides tax breaks for working
women, a privilege provided in very few countries. In his experience,
companies are trying to increase the number of women in their work-
force through various diversity programs.
SHRM also interviewed Vijayan Pankajakshan, Director of HR at
an Indian subsidiary of a global supply chain organization. He points
out that
due to strong societal changes, there is now a dialogue, begin-
ning at the very top, about inclusive growth, with India now hav-
ing its first woman President, and legislation is likely to follow,
to ensure a certain percentage of women are represented in the
Federal Parliament, the 30-plus state legislatures and even in
local/community groups. This could well result in Indian industry
having to voluntarily take affirmative action quickly or fall in line
with the law, and think hard about how to increase the number
of women in management, particularly at senior levels in their
organizations.
He further explains,
Disadvantaged sections of society (across gender), for many
years now, have and are still provided reservation quotas in vari-
ous walks of life, like education, jobs in public sector and even in
federal/state legislatures. This has resulted in more women, with
caste as the segmented variable, to enter various walks of life
that were hitherto a male-dominated bastion.Mr. Pankajakshan
continues,
One main reason that India is not yet getting sufficient trac-
tion on the subject of women in management is that leaders in
most Indian organizations, in general, do not see including more
women as a way to diversify the quality and variety of their work-
force. In most cases, organizations are hesitant to go outside the
framework used for the past many years, and thus stereotypes
are handed down. Line and hiring managers are risk-averse to
experimenting with new ways of workforce diversification. It will
eventually be the external pressure from society that will change
this.
Mr. Pankajakshan emphasizes that including more women should

not be about percentages and quotas rather, the end result should be
to better align the organizations with the changing societal values and
norms, rapidly changing dynamics of customer behavior and the trans-
forming interfaces with society and the global environment. The way
to reposition the debate is to focus on the missing opportunity to better
serve the customer. One of the difficulties, he notes, is that talent bench
strength, irrespective of gender, continues to be a problem:
Indian companies tend to emphasize more the importance of
qualifications (e.g., an MBA/engineer for most jobs), and hence
they are missing a lot of differently qualified and able people who
have the competencies and talent but do not fit the commonly
emphasized criteria. If we profile senior management roles in var-
ious Indian organizations, there are very few atypical examples
(e.g., qualified in anthropology, mining, liberal arts, experience of
having served in the defense forces). There is an overreliance in
the hiring processes of India, Inc. [a common term used in India
to refer to the corporate sector of the nation] to tend to fall back
on what has worked in the past. Most organizations are reluctant
to go beyond comfort zone parameters.
Finally, Mr. Pankajakshan states,

I strongly believe that women have highly developed unique
competencies that men cannot easily match (e.g., listening
skills, conflict resolution, multitasking due to their significant
roles in the family space). Although this is beginning to change,
women in India still have to bear the burden of unique family
and societal expectations, such as taking care of the family, and
this results in women dropping out of their careers at important
stages. In dual-income families, more often than not, on reloca-
tion to a new city, it is the woman who has to postpone herself
and follow her spouse. The Indian federal government does this
process much better for its civil servants and ensures that if the
couple are both working, roles and locations are found where
both can be stationed together. The private sector has not done
enough on this front.
Industry Forums and Networks

In India, there is a growing number of industry forums and networks
that actively help women managers deal more effectively with corpo-
rate challenges, particularly with progressing in their careers. A leading
organization for women is the Forum for Women in Leadership (known
as WILL). Founded by Poonam Barua in 2007, WILL brings together
senior women executives from across corporate India. The purpose is
to develop an open dialogue on womens aspirations and opportuni-
ties, nurture mindsets, and mentor and harness the rewards of collective
thinking to improve the workplace. WILL focuses on setting a strong
agenda for women executives including private and public sectors and
multinational corporations to leverage the large talent pool of women,
creating opportunities for them and, ultimately, sharing the rewards
of best practices to make a contribution to business and society. These
forums have been hosted by major corporations such as Infosys Tech-
nologies, Indian Oil Corporation, Tata Consultancy Services, Deloitte,
KPMG, and ONGC Ltd.22 Another organization that promotes women
leaders is Indias National Association of Software and Services Compa-
nies (NASSCOM) through its IT Women Leadership Summit.23
Such groups and forums provide opportunities for women to learn,
grow and become leaders in their fields. They fill a need in the market-
place, because both society at large and Indian organizations have to
work together to make the Indian workplace supportive for women.
Finally, the U.S. business magazine Forbes recently published its
2009 list of The 100 Most Powerful Women. Such listings provide
visibility to women, further promoting public credibility. A number of
Indian women are on this list: Ranked at No. 3 is Ms. Indra Nooyi,
Chief Executive, PepsiCo; No. 13 is Ms. Sonia Gandhi, President, Indian
National Congress Party; No. 20 is Ms. Chanda Kochhar, Chief Execu-
tive, ICICI Bank; and No. 92 is Kiran Mazumdar-Shaw, Chairman,
Biocon.24
Recommendations for Indian Organizations

As cultural mores change and Indian society more broadly supports
Indian women in managerial positions, organizations need to be more
open and make appropriate changes in their workplace. From the Indian
research study Women in Management in the New Economic Environ-
ment: The Case of India, the following are recommendations for Indian
organizations to promote a supportive workplace for women.25
Develop policies that create a women-friendly workplace
environment.
Establish training programs for women, such as mentorships, career
guidance, and leadership development.
Promote awareness initiatives that highlight the value of women
managers.
Elicit input from women employees regarding policies, promotion,
and performance review processes.
Make accommodations for women in areas such as need-based
postings. That is, as done in civil services, have a policy to post both
spouses to the same district or state.
Have a true commitment to hire and promote women and include
women in the annual business strategy.
In Closing
In todays global economy, Indian corporations need talent in order
to be competitive. Generally, women as managers are underutilized in
corporate India. To advance women in managerial roles, support by
top management is essential. Promoting diverse management practices
and opening doors to women in management through proactive HR
policies and programs is one way for Indian organizations to expand
their talent pool and, ultimately, their leadership pipeline. As highlighted
by the Indian women professionals interviewed for this chapter, specific
success factors a good education, mentoring, family support, strong
communication skills, and lifelong learning are essential for Indian
women managers today. While traditional Indian cultural viewpoints are
slow to change (and not all women want a career in management), posi-
tive change for women in the business world in India is moving forward.
Chapter 4
Employer Brand in India:

A Strategic HR Tool
Today, an effective employer brand is essential for competitive advantage.

Increasingly, Indian corporations are becoming intentionally strategic to
utilize the employer brand to attract and retain talent and, ultimately,
to expand and grow. To gain an understanding of how the concept of
employer brand is being leveraged by multinational corporations with
operations in India, the Society for Human Resource Management
(SHRM) interviewed Indian HR executives in three diverse industry
sectors: (1) the banking and financial services industry (BFSI), (2) global
supply chain solutions, and (3) clinical research organizations (CRO).
Their stories reveal an intense focus to connect with their Indian market-
place by using many strategies successfully demonstrated in the global
marketplace.
This chapter provides a glimpse into the world of three specific
Indian companies each relatively new in India and offers an
insiders view of their respective challenges, benefits, and opportunities
to develop and promote their employer brand to gain market share in
India. Written at a meta level, giving a broad perspective, and based
on research studies and on-the-ground experience in India, this chapter
presents insight into the employer brand as a differentiator for talent
management in India. Though it is not intended to exclusively represent
49
the employer brand experiences of all Indian corporations, this informa-

tion will be of interest to both Indian and non-Indian HR professionals:
Indian corporations seeking to learn more about the value proposition of
the employer brand from an HR perspective, multinational corporations
exploring doing business in India, and non-Indian HR professionals and
organizational leaders learning about evolving HR management practices
in India.
The Value of the Employer Brand in India

The Employer Brand A Strategic Tool to Attract, Recruit, and Retain
Talent highlights that human resources uses the employer brand for
three main reasons:
(1) organizational culture and employee fit;
(2) positive outcomes for recruiting; and
(3) retaining talent with corporate values and a team-based culture.1
At its most effective, the employer brand is a long-term strategy with

a transparent message that promotes the organization as an employer of
choice.
The evolving and expanding focus on Brand India is one of many
great changes occurring in the Indian business landscape. In Indias
Global Powerhouses: How They Are Taking on the World, author
Nirmalya Kumar points out that brand building the image and the
recognition is a long-term effort that requires substantial resources.2
The shackles of Brand India, where even sophisticated people
outside India see it as associated with call centers and software
engineers, are not consistent with creating and managing []
consumer products.
He notes important exceptions where the stereotypical India image

can be beneficial, such as in niches related to what may be seen as
exotic India (foods or fabrics, etc.). At the same time, he says that
Brand India is also complex. In terms of hard power (i.e., cash)
Employer Brand in India 51
[] India is poor, especially compared to China [] However,

when it comes to soft power (ideas and values), Brand India
because of its history, large private sector, functioning democ-
racy, and free press as well as the relatively peaceful coexistence
of its multicultural, multi-religious population has a positive
image.
The increasing focus on competitive advantage is leading many firms

to rethink their employer brand. India, Inc. a common term used
in India to refer to Indias corporate sector aims to positively build on
opportunities as the world economy strengthens, and the employer brand
is a prime example of a progressive HR practice in India. As highlighted
by Indian management researcher and author Jyotsna Bhatnagar, the
employer brand is an important differentiator in India for talent manage-
ment. The fit between employer and employee is important for hiring
compatibility. Yet, research shows that Indian companies do not always
intentionally develop employer branding interventions. Infosys, Wipro,
and TCS did not intentionally build their brands; rather, they focused on
building a productive workplace, resulting in happy employees, and their
brands were the result of that foundation, says Mr. Bhatnagar.
For other organizations in India, such as RMSI and Google,
which already have strong employer brands, their goal is to live
the brand. 3
As illustrated in Figure 4.1, the value of the employer brand in India

is multifaceted and mirrors those values seen as critical by most success-
ful multinational corporations. If effectively marketed internally and
externally, the employer brand in India has a strong value proposition,
with core corporate values at its foundation. A powerful employer brand
has the capacity to attract and retain talent and represent quality to its
customers, with the goal of gaining global recognition in a sustainable
manner.
Manmohan Bhutani, Vice President of People and Operations at
Fiserv India, says,
Every employer brand is an investment that should demonstrate
a return comparable to other forms of business investment. The
employer brand strongly supports corporate brands, and vice

versa. Ultimately, the key to a successful employer brand is to
ensure that expectations are fully aligned with the realities of
working for the organization.
Figure 4.1 Six Key Points for Effective Employer Brand in India
Quality/ Core
Attract/retain Recognized Employer of
customer corporate
best talent icon choice
service values
Strong value proposition
As Indian firms focus on strategies of turnaround, diversification,

expansion, and internationalization, human resources and human capital
performance in India have become increasingly important. Consequently,
HRs role in effectively using the employer brand has tremendously
expanded and grown in importance. A brief historical snapshot pro-
vides background about the increasing role of HR management in India
and the employer brand as a strategic HR tool. The HR profession in
India began in the 1920s with concern for labor welfare in factories.
After Indias independence from Great Britain in 1947, the HR profes-
sion evolved, expanding in the 1960s into three areas labor welfare,
industrial relations, and personnel administration. The profession further
matured in the 1980s and was more commonly known as human
resource development (HRD). With the liberalization of the Indian
economy in 1991 and subsequent economic reforms, the importance of
the HR function dramatically increased. In the 1990s, the focus was on
HRD as a key tool for business survival, and the HRD scorecard became
a method to measure effective people development activities. With the
arrival of many multinational corporations (MNCs) in India, there has
been an increase in progressive HR practices as well as an expansion
of different types of HR terminology, such as human resource manage-
ment (HRM). In the past 10 years or so, the HR profession in India has
become increasingly sophisticated. It continues to evolve, using Indian

HR practices combined with best practices from the West that fit the
needs of the organization. Globalization has led to a blending of work
cultures East and West.4
In the 2009 book The Changing Face of People Management in
India, management researchers Pawan S. Budhwar, Ingmar Bjrkman,
and Virender Singh emphasize that global HR policies are now being
modified to appropriately (and culturally) fit Indian companies. For
example, many MNCs have a policy that enables the company employ-
ees to fire people without any explanation (known as termination with-
out cause), and this policy goes against Indian culture and legislation.
Slowly, this global HR policy is being modified in operations in India,
with an explanation provided when someone is removed from their posi-
tion. Remuneration practices are another example of HR policies that
need to be modified to fit local India standards.5 These changes point to
the importance of MNCs being locally sensitive in terms of talent man-
agement in the Indian space and, ultimately, the impact on the employer
brand in India from the standpoint of the companys reputation as an
employer of choice.
Spotlight on Three Indian Industry Sectors

The employer brand experience in India, as seen through the eyes of the
three Indian HR executives interviewed by SHRM, has both differences
and similarities. As illustrated in the descriptions of three diverse industry
sectors, the employer brand is critical to attain a powerful corporate
footprint in modern India as it moves deeper into the global marketplace.
Three major themes emerged in these interviews:
(1) Each of the three Indian corporations is relatively new to the Indian
marketplace, and thus the power of their employer brand is in
development.
(2) For each organization, the focus is to become an employer of choice
within its respective sector.
(3) A top strategic focus of the employer brand is to attract, develop, and
retain talent in the highly competitive Indian marketplace.
Fiserv India
A Fortune 500 company, Fiserv, Inc., is a world leader in informa-
tion management, technology solutions, and e-commerce systems for the
financial services industry.
Fiserv started its India operations in October 2005, with a goal to
become the preferred offshoring partner for the BFSI sector. Today, Fiserv
has more than 2,000 employees in India and operates through multiple
delivery centers in Noida and Pune. It also offers near-shore services from
Costa Rica. The IT services portfolio of Fiserv India includes application
development, maintenance, support, testing, architecture, and infrastruc-
ture management for banking, payments, and insurance industries. The
BPO (business process outsourcing) portfolio includes account setup and
management, fund posting and disbursement, title verification, client
reporting, receivable management, and collections services for invest-
ments, mortgage, and insurance industries. Within a short span, the
India operations of Fiserv have achieved key industry certifications that
demonstrate its commitment to process maturity, information security,
and regulatory compliance.
As Manmohan Bhutani, Vice President of People and Operations at
Fiserv India, notes,
The establishment and adherence to corporate values goes a
long way in ensuring a purposeful, unified and high-performance
employer brand. The Fiserv values describe the characteristics
we respect and behaviors we expect from all associates. They
are the foundation for a common culture and pronounce the
meaning of Fiserv employer brand.
Quintiles India
Quintiles India operates in the midst of a rapidly growing pharma-
ceutical market. The company helps clients take advantage of a well-
established corporate infrastructure, government policies favoring R&D,
growth in the health insurance sector, and tertiary care and hospitals
available for clinical trials. Other advantages are that Quintiles India has
solid relationships with leading medical centers and experienced English-
speaking investigators. All studies are conducted to FDA and ICH GCP
(good clinical practices) standards. Indias highly literate population pro-
vides fast, efficient access to broad population groups with common and
special disease profiles, allowing for rapid patient recruitment and faster
study start-ups. The key services include access to patients, biostatistics,
central laboratory services, clinical monitoring and site management,
data management, drug safety/pharmacovigilance, ECG services, project
management, and regulatory services. Quintiles India is located in four
major cities: Mumbai, Ahmedabad, Bangalore, and Gurgaon. Clinical
research (CR) is a growing field in India. As Mukund Mandayam, Direc-
tor of Human Resources at Quintiles India, states,
Being the largest CRO [clinical research organization] in India
and the only fully integrated biopharmaceutical services com-
pany offering clinical, commercial, consulting, and capital solu-
tions worldwide lends itself to being branded as an employer of
choice by potential employees.
Initially, CRO had the role of an outsourcing service for clinical trial
management. Recently, many CROs have begun offering comprehensive
management of complex drug trial processes. Up until the 1990s, India
was not a preferred destination for major global pharmaceutical compa-
nies. Yet, in the past 10 years, with the steady rise in global demand for
world-class clinical trial management capacity and productivity, the CRO
sector in India has been expanding rapidly. With Indias rich technical
resource pool, highly skilled doctors, and trained medical personnel, the
research infrastructure is highly attractive to international organizations.6
CHEP India Pvt. Ltd.

CHEP India operates in the broad industry sector of global supply
chain management and, more specifically, in the space of equipment
pooling solutions. Established in 2008, the India affiliate of Brambles
(a global MNC headquartered in Sydney, Australia, with $4 billion in
revenue in the year ending in June 2009), CHEP India is in the early
stages of its operations in the country and currently has about 50
employees. India is the 45th country of presence for Brambles and is one
of the last potentially large markets to be won over (China is already in
the footprint). The unique challenges of CHEP India are two-fold: (1) to
establish a business model, which is the first of its kind, and (2) to cope
with and strategize the way forward in a country where there has been
considerable lag in development of macro and basic infrastructure (e.g.,
ports, roads, airports, transportation standards).
Brambles, with a corporate history of more than 60 years, is a
leading global provider of support services, operating in 45 countries
across Europe, North America, South America, Africa, and Asia-Pacific,
employing more than 12,000 people worldwide. Brambles has a pri-
mary listing on the Australian Stock Exchange and a secondary listing
on the London Stock Exchange. CHEP, one of two business groups
in Brambles, delivers supply chain efficiencies to more than 300,000
customers around the world. The business model is based on pooling and
sharing of resources between companies in an industry (e.g., wooden/
plastic pallets in the fast-moving consumer goods (FMCG) industry and
customized containers for the automobile industry). The unique combi-
nation of product and embedded service significantly reduces not only
direct costs but indirect wastages of product damage and also provides
an opportunity for customers to engage in environmentally sustainable
business practices, saving time and hassles of managing the pallet system.
With a global network of service centers, CHEP helps manufacturers and
growers transport their products to distributors and retailers. Combining
superior technology, decades of experience, and an unmatched asset base,
CHEP handles pallet and container supply chain logistics for customers
in the consumer goods, produce, meat, home improvement, beverage,
raw materials, petrochemical, and automotive industries.
As Vijayan Pankajakshan, Director of Human Resources at CHEP
India, explains,
We are in the space of returnable packing solutions, for vari-
ous industries, based on the concept of pooling. Pooling is
a business model that serves manufacturers of products and
end customers/consumers (modern and small retail stores).
Beyond that, an important dimension of value delivered is that
all the players in the chain need not, for example, buy, stock,
repair, move, etc. wooden/plastic pallets and not lock up costly
warehousing space. We own the assets (pallets/containers), and
customers pay a rental fee for the service, based on volume, time
the customers products are placed on our assets, and distance
travelled.
Mr. Pankajakshan points out that the business model is environmen-

tally responsible due to the element of repair, reuse, and sharing assets
many times over: The relationship with CHEPs customers develops
into a trusted partner/adviser role, and that offers us many more oppor-
tunities to contribute to their success.
Indias War for Talent

India is seen as the land of opportunity by many multinational cor-
porations, and they bring the vitality of their employer brand to India.
Almost every Fortune 500 company is setting up (or considering setting
up) operations in India that will be integral to its global value chain. The
rush by multinationals to set up Indian operations and the rapid growth
of Indian outsourcing companies has resulted in a war for talent, ex-
plains Nirmalya Kumar in India Unleashed.7 Whether in a recession or
a growing economy, successful talent management requires an effective
employer brand. Yet, finding and keeping the right people is not easy.
High-quality talent is expensive and in demand, notes Nayana Prabhu,
Vice President of Learning and Development at EXL Service in India (see
Chapter 5).8
Trends indicate a shift in the global landscape regarding talent
for both employees and organizations. SHRMs report Future Insights:
The top trends according to SHRMs HR subject matter expert panels
points out that talent management continues to be a high priority and
must be more efficient than before while leveraging cost awareness and
monitoring demands for key positions. Finding and retaining quality
talent continues to be essential to business sustainability, but is diffi-
cult in global markets that may act differently in terms of opportunity
and salary movement: Should multinational companies treat everyone
equally or deploy different strategies in different countries to pay for
and retain talent? The report emphasizes that economic uncertainties
fundamentally change the motivators that attract and retain employees.9
These trends reinforce the importance of having an effective employer
brand to recruit and retain the right kind of talent needed by the corpo-
ration to establish, attain, and/or retain its competitive advantage in the
marketplace.
Retention of talent is also closely linked to employee engagement,
an important factor for productivity. As highlighted in a SHRM article
Leveraging Employee Engagement for Competitive Advantage: HRs
Strategic Role, employee engagement has emerged as a critical driver
of business success in todays global marketplace.11 Research by Towers
Perrin (now Towers Watson) identified key drivers of attraction and
retention in Indian companies in its global workforce study. Some of
the most important factors included the organizations reputation as a
good employer, career advancement opportunities, challenging work/
varied work assignments, ability to balance work and personal life, the
organizations financial status, and senior management acting ethically in
business management decisions.12
The link between the employer brand and employee engagement can
be seen in viewpoints of the Indian HR executives interviewed for this
book. As noted by Mr. Bhutani, of Fiserv India,
As the employment market gets more competitive for the best
talent, the key to success in recruiting becomes how well the
organization differentiates itself from others, both in attracting
and in keeping talent.
Mr. Pankajakshan, of CHEP India, recommends that employee

engagement levels be measured at least once in 18 months to check how
the brand is being experienced. At Quintiles India, notes Mr. Man-
dayam, the brand signifies quality, customer service and is a recognized
icon in the clinical research domain across the world. SHRMs recent
poll of HR practitioners about HR leadership competencies sheds light
on talent needed in India in HR leadership roles (see Appendix B). These
competencies will be essential for HR leaders in India to help lead their
organizations and successfully leverage their employer brands in todays
competitive marketplace. According to this research, in India, the top five
competencies for knowledge, skills, abilities, and other qualities needed

by a senior HR leader to be successful are
(1) strategic thinking,
(2) effective communication,
(3) business knowledge,
(4) HR knowledge, and
(5) leading change.
In addition, the poll reveals that the top five competencies for suc-
cessful senior HR leaders in a global organization are
(1) global intelligence/global mindset,
(2) strategic thinking,
(3) business knowledge,
(4) effective communication, and
(5) cross-cultural intelligence.13
Thus, for HR executives and organizational leadership in multina-

tional corporations seeking to do business in India or those companies
working to successfully expand their current marketplace with India, it is
essential to thoroughly understand the factors related to talent manage-
ment, as seen through the employer brand lens such as leadership
competencies, engagement, attraction, and retention drivers. The broad
factors related to talent in India that form the foundation of an effective
employer brand are true for most global organizations and illustrate the
rapid movement of the multinational corporations in India and their
influence on the workplace. It is important to realize that while many
corporations in other countries are already well-versed in such factors,
Indian corporations are grappling with them at an increasing rate.
Sending the Right Message

To learn more about developing the employer brand in India, SHRM
asked the three Indian HR executives about the lessons they have learned
about the value proposition of the employer brand.
The executives shared their focus on the employer brand, with
examples from their respective organizations and with an emphasis on
strategies to use the strength of their employer brand for improved talent
management. The viewpoint of Mr. Mandayam, of Quintiles India, is
representative of the other two Indian HR executives:
The employer brand must be genuine. It is not simply a recruit-
ing tool. The brand may encourage the employee to choose your
company, but when it is genuine, thats the reason they stay with
your company. Globally, we have seen measureable increases in
our retention since first introducing our employer brand.
In fact, Mr. Mandayam explains,

No matter the generation, we have found that our employees
strongly identify with the important work we do, which ultimately
brings new medicines to patients. This requires us to work with
an unwavering commitment to patients, safety, and ethics and
our employees relate very closely to this message.
At Quintiles India, employer brand initiatives include showcasing

the company and employees in relevant conferences and expositions,
participating in campus road shows, and winning an award, for two
consecutive years (2008 and 2009), as one of the top 50 companies from
the Great Place to Work Institute India. Mr. Mandayam points out,
We use the employer brand to present the value proposition to
our internal talent, which transcends compensation and general
rewards. Being the largest CRO in India and the only fully
integrated biopharmaceutical services company offering clinical,
commercial, consulting, and capital solutions worldwide lends
itself to being recognized as an employer of choice by potential
employees.
All of these opportunities convey the right message to the market-

place and attract the right talent.
Mr. Bhutani, of Fiserv India, emphasizes that a brand can be tailored
to create the greatest resonance with a number of different audiences and
talent market sectors without compromising consistency. To establish a
successful employer brand, companies need to be involved in extensive
public relations and marketing activities focused toward current and pro-
spective talent. At Fiserv, we firmly believe in two essential principles:
The client comes first, and people make the difference, Mr. Bhutani
points out.
We ensure that our people practices provide the highest degree
of employee satisfaction and work/life balance, as they are our
most valuable assets. Fiserv strives to enhance the capability of
employees throughout the entire employee lifecycle by compe-
tency mapping, training, and career counseling sessions. Fiserv
celebrates and rewards employees through quarterly and annual
employee appreciation programs. With the changing landscape
of the financial services industry, Fiserv launched its new brand
identity in 2009. Our new brand marks significant energy, pro-
gressive thinking, and a fresh approach to the opportunities that
lie ahead. The new brand globally unifies Fiserv as a company
that is proud of its rich heritage and has the potential to empow-
er its clients. Fiservs industry leadership plays an integral role in
building a strong employer brand.
Over the past 25 years, Fiserv has been recognized for its innovation
and product superiority. A Fortune 500 company, Fiserv has maintained
its leadership in FinTech 100 at the top position in five of the last six
years.
Mr. Pankajakshan, of CHEP India, mirrors the experience of the
two other HR executives. The employer brand should have synergies
with that of the businesses. In addition, the employer brand has to have
a core that is relevant to employees across cultures and nuanced for
local conditions and sensitivities. Of particular importance is to ensure
top management knows that investing in employer branding reduces
costs of hiring and also reduces rates of attrition. In CHEP India, the
brand value is based on sustainability, which has a profound positive

impact on the reduction of consumption of limited natural resources and/
or nonbiodegradable materials. This value is one that resonates with a
certain population of Indian talent that is interested in sustainability and
the environment. To get its message out, the company targets certain
business schools to locate students who have a curriculum in subjects
related to supply chain (e.g., procurement, logistics, transportation, net-
work planning, operations management, and packaging development).
To find talent, the company focuses on high-visibility events, from CHEP
India senior managers giving guest lectures at universities to participating
in cricket matches with the students. Such activities help to form a key
network to better attract the right talent.
Indian CSR Initiatives for Brand Recognition

Traditionally, companies in India have had philanthropic and community
programs. As highlighted in the book Corporate Social Responsibility in
India, as Indian organizations move into the international marketplace, it
is imperative to integrate CSR into the company business goals.14 Author
Sanjay Agarwal points out,
As Indian companies grow global [] coupled with socioeco-
nomic and regulatory pressures [] there is a shift from corpo-
rate philanthropy to corporate social investment (CSI).
(CSI is the Indian term to describe an organizations investment in a

range of community activities). The trend for Indian businesses to focus
on CSR initiatives both to build the brand and to stand out among
other organizations has increased in the past five to six years. The
growing awareness of CSR as a socially responsible business practice can
be observed in some multinational corporations operating in India. In
the Indian context, CSR has been found to increase the ability to attract
and retain employees. Mr. Agarwal notes that the big corporate houses in
India realize this aspect of CSR and have set up initiatives.
In a 2008 report Corporate Indian Companies: Forging New Talent

Pipelines and Creative Career Pathways, SHRM interviewed Indian
HR leaders from eight different industry sectors about talent manage-
ment initiatives. SHRM found that Indian organizations emphasized the
importance of giving to the community, such as contributing company
funds to support schools and hospitals in rural areas and support educa-
tion in underprivileged communities, from paying for student meals
to supplementing teachers salaries.15 The SHRM survey report 2007
Corporate Social Responsibility: United States, Australia, India, China,
Canada, Mexico and Brazil A Pilot Study revealed that the top driver
of corporate social responsibility programs, for all seven countries, is
contribution to society. As seen in Figure 4.2, data from India indicate
that CSR outcomes have a strong impact on the companys public image,
improve employee morale, increase employee loyalty, and position the
organization as an employer of choice.16
The findings of these research studies are reflected in the values of
the organizations highlighted in this chapter. For example, while CHEP
India does not yet use CSR as a vehicle to highlight its employer brand,
it plans to do so in the future. We are about 18 months into our India
entry phase of the organization. Our brand is not amenable to mass
advertising, and hence we would like our product solutions to take root
first and as a reflection, we would be able to strongly position CSR
activities linking to the employer brand, says Mr. Pankajakshan. One
example of a current internal CSR program at CHEP India is to plant
tree saplings in the name of its employees to replenish this resource,
representative of being environmentally responsible for the wood used to
make pallets.
In the clinical research sector in India, as companies become better
established in the marketplace, many are beginning to introduce CSR
initiatives. Quintiles India is in the early stages of initiating CSR activi-
ties on a large scale, so it is too early to draw conclusions. At Fiserv
India, corporate social responsibility is an integral part of the business
culture. The social service wing, Arpan, is driven by employees organized
in volunteer taskforces. Recently, Arpan was involved with key projects
for education of the underprivileged. The employees have associated
themselves with various schools in Noida and Pune. Interaction with
these schools includes regular classes and tutorial sessions. Employees
Figure 4.2 Positive Outcomes of CSR Programs (by Country)
United Australia India China Canada Mexico Braz

States (n = 214) (n = 134) (n = 82) (n = 844) (n = 88) (n =
(n = 309)
Stronger public 74% 65% 67% 67% 76%
image
Improved employee 61% 63% 58% 26% 50% 61% 68

morale
Increased employee 48% 44% 43% 28% 41% 55% 59

loyalty
Increased 45% 36% 40% 51% 45% 48% 60

consumer/customer
confidence
Increased brand 42% 44% 56% 61% 41% 45% 66

recognition
Position as an 39% 38% 35% 37% 44% 40% 59

employer of choice
Increased employee 24% 24% 16% 12% 29% 32% 23
retention
Increased 19% 18% 18% 17% 25% 24% 25

recruitment of top
employees
Competitive 17% 15% 22% 13% 17% 26% 19

advantage
Increased workforce 15% 10% 15% 7% 12% 19% 26
productivity
Positive financial 15% 8% 16% 6% 14% 14% 19

bottom line
xico Brazil Differences

Mexico Based
Brazil Differences Based on Country
= 88) (n =135) on (n
Country
= 88) (n =135)
67% 81% Canada > Australia

Brazil > Australia
1% 68% 61% 68% U.S. > China, Mexico

Australia > China, Mexico
India > China
Canada > China
Mexico > China
Brazil > China, Canada
5% 59% 55% 59% U.S. > China

Mexico > China
Brazil > China, Canada
8% 60% 48% 60% Brazil > Australia, India, Canada
5% 66% 45% 66% India > Canada

China > U.S., Canada
Brazil > U.S., Australia, Canada
0% 59% 40% 59% Brazil > U.S., Australia, India, China, Canada
2% 23% 32% 23% Canada > China

Mexico > China
4% 25% 24% 25% Brazil > Australia, China
6% 19% 26% 19%
9% 26% 19% 26% Brazil > Australia, China, Canada
4% 19% 14% 19%
Note: Data sorted in descending order by the U.S. data. Sample sizes and percentages are based on the
total number of respondents by country who answered this question. Percentages do not total 100% due
to multiple response options. HR professionals who indicated not applicable; we do not have corporate
social responsibility programs were excluded from this analysis. Blank cells in the last column indicate that
no statistically significant differences were found. The data from outside of the United States were based on
a pilot study; caution should be exercised when interpreting results with small sample sizes.
have also been a part of organizing committees at these schools, trigger-

ing events like sports day, picnics, and field trips. This has encouraged the
children to learn more and become responsible citizens. Mr. Bhutani says
Employees are involved in all stages, from decision-making to
implementation of projects, and this allows them to make a dif-
ference in society and touch many lives. This sense of achieve-
ment is a great learning experience and a matter of pride for our
employees.
The focus areas of these CSR initiatives are education of the under-
privileged, women empowerment, promotion of vocational training, and
environmental protection.
Recommendations from Indian

HR Executives
The three Indian HR executives interviewed by SHRM were asked for
their most salient advice about building an employer brand in India (see
Figure 4.3). Mr. Bhutani emphasized that the employer brand is not just
for the big, glamorous MNCs, with their own high-profile consumer
brands. Employer brands, as a strategic HR tool, are for every local
authority, charity, SME, government department and academic organiza-
tion that needs to recruit, retain, and engage good people. Additionally,
it is critical to bring in the expertise of the employers workforce to suc-
cessfully build and disseminate the brand. As Mr. Pankajakshan suggests,
Employees should be involved in developing/refurbishing the employer
brand, with a 360-degree view of all potential target stakeholders for the
employer brand.
Figure 4.3 Key Advice and Recommendations for Building an Employer Brand
in India
Every employer brand is an investment that should demonstrate a return comparable to
other forms of business investment.
Offer a strong value proposition to talent in India.
Employer brands are at least as much about retention and engagement as they are
about recruitment.
Retain the core of the brand (if it is an MNC) and contextualize development.
Keep the local context in mind: recognize, accept, and adapt to the local culture.
The employer brand should incorporate sensitivities of employees in foreign countries

(if the Indian company has overseas operations).
The advertising of the employer and employee brand should be as synergistic and
mutually reinforcing as possible.
The challenge and importance of effectively meshing different

cultures, particularly with todays environment of global mergers and
acquisitions, also came to the forefront. As Mr. Mandayam notes, It is
important to not directly impose global/Western policies, philosophies,
systems, and processes into the local environment without first under-
standing what the local talent will accept welcomingly and what it will
resent. His comment links to the issue referred to earlier the com-
plexity of mixing Eastern and Western management practices and the
possible detrimental impact on the employer brand in the Indian context.
This point is important for HR leaders in multinational corporations to
keep in mind when moving operations into the Indian marketplace or
merging/acquiring Indian corporations. The interviewees final recom-
mendation is that the view of the brand in India should match in the
eyes of both the employee and the consumer, with a seamlessness that
illustrates thoughtful, intentional and strategic communication to the
workforce as well as external stakeholders and the marketplace at large.
In Closing
In recent years, the world has witnessed the dramatic entrance and
success of Indian corporations in the global marketplace. With the
continued influx of multinational corporations in India as well as
Indian corporations expanding beyond their own borders the oppor-
tunities for India to contribute to the world economy have significantly
increased, with the likelihood of favorable outcomes for Brand India
in the domestic and international markets. Thus, as India, Inc. forges
forward to make a wider mark in the world, the employer brand as a
strategic HR tool will take on greater importance in Indian organizations
in how it is developed, communicated, marketed and ultimately yields
growth, profits, and sustainability for today and into the future.
Chapter 5
Indian Human Resource

Management and Talent
Mindset
Many Indian corporations are now an integral part of the global

community. As important contributors to the world economy, Indian
corporations require human capital to grow and expand. To gain a better
understanding of the factors related to Indian human resource man-
agement (HRM) and talent mindset, the Society for Human Resource
Management (SHRM) interviewed Indian HR executives in key Indian
business sectors.
Spotlighted in this chapter are three organizations (see Figure 5.1),
with their respective philosophies about talent mindset, reflecting their
vision and strategic business goals. Through the views of these Indian HR
leaders with their fingers on the pulse of the marketplace trends,
challenges, and opportunities about talent in the Indian HR context are
revealed. In addition, information about Indian cultural, national, and
socio-economic aspects provides insights about the dynamic environment
in which Indian human resources and organizational leaders attract,
develop, and retain talent.
Figure 5.1 Organizations

Business processing Financial services: Research and consulting:
outsourcing (BPO): Future Capital Holdings, Great Place to Work
EXL Service Limited Institute, India
Nayana Prabhu, Vice President Ophealia de Roze, Head Prasenjit Bhattacharya, CEO
Learning and Development Human Capital Management www.greatplacetowork.in
www.exlservice.com www.fch.in
69
As stated in The Changing Faces of People Management in India, as

a result of Indias liberalized economic environment,
the new paradigm has brought a shift towards more corporate
management and new opportunities for technology upgrading,
human resource mobilization from previously untapped sources,
expansion, diversification, business turnaround, and internation-
alization. 1
Thus, in this ever-changing marketplace, the new global imperative

requires the right talent.
Written at the macro level, this chapter explores the philosophical
perspectives of talent mindset in the Indian HRM context, considers fac-
tors that influence talent mindset in India, and highlights key drivers and
other contributing aspects (see Figure 5.2)
Figure 5.2 Talent Mindset

Talent mindset is the deep-seated belief that talent differentiates organizational culture and
breeds competitive advantage, with benefits for both the individual and the organization
now and in the future. Talent mindset is embedded in the entire organizationled by the
CEO, modeled by management, and supported by a range of initiatives developed by HR
and implemented by HR and line managers.
Written primarily for a non-Indian HR and management audience,

this chapter not only provides insights into talent mindset in corporate
India but also offers valuable information for HR professionals and
business leaders in India, management students learning about India,
multinational corporations established in India, and those seeking to
expand into India.
Indian Human Resource Management and Talent Mindset 71
Business Case
With tremendous growth opportunities in India, competition for talent is
keen. According to Indian management researchers and authors Pawan
S. Budhwar and Jyotsna Bhatnager,
given the unique socio-cultural, political, legal, and economic
milieu of India, the challenges regarding the efficient manage-
ment of HR in the Indian context can be both complex and de-
manding. This is more valid during the present transitional times
when traditional ways of managing HR (which were based on
ones personal relations, social connections, and standing in the
society) are still prevalent along with a move towards formaliza-
tion and rationalization of HR systems. At the moment, a rapid
modernization of the HR functions is evolving. 2
The 2008 study by The Boston Consulting Group and the World
Federation of Personnel Management Associations (now the World Fed-
eration of People Management Associations), Creating People Advan-
tage: How to Address HR Challenges Worldwide Through 2015, points
out that although there is not a labor shortage in India, talent is in short
supply and in great demand. Thus, HR leaders in Indian organizations
are highly pressured to attract and keep talent.3 Further, in the global
arena, the number of Indian high-performance companies is growing.
This trend is clearly seen in the Forbes Global 2000, which identifies
large publicly traded companies with exceptional growth rates from
nearly 70 countries, where each company stands out from its industry
peers, scored by its rankings for sales, profits, assets, and market value.
In the report, 47 companies are from India, up from 27 companies in
2004.4
In times of transition, change is gradual. The 2009 SHRM study
Global Diversity and Inclusion: Perceptions, Practices and Attitudes
notes that Asian countries tend to prefer to let diversity occur naturally.
This perspective is mirrored in the Global Diversity Readiness Index,
where India is ranked 41 out of 47 countries.5 This ranking suggests
opportunities for Indian organizations to seek and include talent from
different groups, such as women, who are underutilized in corporate
India. As noted in Chapter 3, changes in Indian culture and society are

gradually supporting and, in some cases, promoting women in Indian
corporations.6
The Global Competitiveness Report 2009-2010 ranks India at 49
out of 134 countries, an improvement from its ranking of 50 in the 2008-
2009 index. The rankings are calculated from both publicly available
data and the Executive Opinion Survey, a comprehensive annual survey
conducted by the World Economic Forum together with its network of
partner institutes (leading research institutes and business organizations)
in the countries covered by the report. According to this report, the most
problematic factor for doing business in India is the countrys inadequate
infrastructure. At the same time, India ranks high for business sophistica-
tion and innovation, higher education and training, and goods market
efficiency.7 This report reflects the challenges of rapid growth in India
that require time, money, and talent.
Though change is taking place in Indian HRM, the family-domi-
nated Indian business conglomerates and large public sector organiza-
tions are still very influential in the Indian economy. At the same time,
Indian global enterprises, particularly in the information technology (IT)
industry, are gaining ground with their innovative work cultures. Still,
traditional characteristics of Indian management remain authority,
hierarchy, familial networks, community boundaries, and acceptance
of ambiguity. According to scholars of business culture, it appears that
there is a blending of values in Indian organizations, as they develop their
own unique form of management, with a mix of tradition and the best
of global and/or Western management practices. Ultimately, managerial
challenges with global links will create opportunities to develop world-
class Indian organizations through learning and innovation. Successful
movement forward will greatly depend on the competencies and chang-
ing mindsets of a new generation of Indian managers.8 The challenge of
finding talent goes hand in hand with rapid growth and the demand for
quality, knowledge, and experience in a global world. Thus, the business
case to understand talent mindset within Indian HRM is clear and stands
out as a significant driver of organizational success.
Background and Context

India is a country in transition. Historical, socio-economic and cultural
factors strongly influence Indian HRM and talent mindset. Keeping in
mind the dynamic changes taking place in India, and their subsequent
influence and reflection in Indian HRM, the following factors provide
essential background and context about key aspects of the Indian land-
scape: (1) language, (2) geography, and (3) generational differences.
Linguistic Differences and the Role of English

The Indian constitution recognizes more than 30 languages, with
Hindi being the official language in most North Indian states. There is
an overarching national culture, but most states have their own unique
subcultures with respect to language and ethnicity. Because such a large
diversity of languages (more than 2,000 dialects) exists within these
subcultures, English or Hindi are used as link languages for business
and informal communication with and among people across the 30-plus
states in India. Most urban Indians are trilingual since a three-language
formula (English, Hindi, and the state language) is deeply embedded into
the educational system.
The influence of the local language may be reflected in the spoken
English of Indians. That is, most Indians have a British influence in their
choice of words. Some examples are petrol pump for gas station, accel-
erator for gas pedal, ice-box for cooler, expired for dead, etc. However,
the accent is not British, and there is no universal Indian accent. The
accent depends on the influence of the local language/mother tongue.
Most Indians think in their respective local language and translate those
thoughts into spoken English. Sometimes, it is a direct translation from
the mother tongue. For example, I need to give an interview means
attend an interview, whereas I need to take an interview means to
interview someone.
These examples demonstrate direct translations from the local

language (both alphabets and phrases). People who have a Western
influence (mostly those who live in Tier 1 cities) are able to minimize the
word translations to a greater extent that those people from the Tier 2
and 3 cities.
Geographical Differences
Most Tier 1 cities such as Mumbai, Bangalore, Hyderabad, and
New Delhi use English for business communication. The majority
of global organizations are located in Tier 1 cities, where the corporate
culture tends to be high on task and egalitarian dimensions. In the last
few years, the incubator culture is also on the rise in places like Banga-
lore, known as the Silicon Valley of India, where employees possess
an individualistic and achievement-based orientation similar to the West.
In such an environment, Western motivational theories and performance
measurement techniques are easier to apply. Tier 2 and 3 cities (also
known as satellite towns), such as Pune, Mysore, and Vizag, are more
likely to use the local language informally, and sometimes formally, for
business communication.
Some local organizations in these cities may have a family-type cor-
porate culture, where the manager is seen as a patriarch. In this environ-
ment, collectivist, inner-directed and diffuse mindsets are more prevalent.
However, this scenario is changing rapidly as a shortage of labor forces
global organizations to expand into Tier 2 and 3 cities. Successful
onboarding and assimilation are essential stepping stones for companies
to help employees develop a global mindset.
Generational Differences
After India gained independence in 1947, the government resorted
to protectionism in order to nurture the countrys fledgling industries.
The job opportunities were limited, and working for the government
was considered very prestigious by people of what are now known as the
Traditionalist and Baby Boom generations. There was a high degree of
loyalty, and therefore, people used to work and retire from the same job.
The critical HR issues of today such as performance management,
employee motivation and retention, and career and succession planning

were never considered.
This situation drastically changed after the government liberalized
the economy in 1991 and allowed foreign competition. Domestic orga-
nizations were forced to raise the bar by improving their products and
services to compete with global organizations.
Today, many people in the Baby Boom generation are close to retire-
ment, and Indian companies are now largely filled with Gen X and Gen
Y workers. Unlike Western nations, retirement of the Baby Boomers
may not create a shortage of workers in India since census reports have
estimated that by 2020, 50 percent of the population will be below 25
years of age. However, organizations are more likely to face a greater
and more serious problem of employability rather than availability, since
there continues to be a huge gap between the quality of talent produced
by the educational institutions and the type of skills required by global
organizations. The modernization of education is a very important factor
in maintaining a competitive and sustainable workforce in the future. As
such, Indias government, industry, and industry bodies are already work-
ing toward this objective.
Philosophy on Talent Mindset

Talent is a key driver of economic prosperity. As emphasized in Manage-
ment in India: Trends and Transition, Indian organizations increasingly
focus on talent management for a competitive advantage.9 In view of the
increasing number of Indian corporations in the global marketplace, a
brief discussion about the concept of mindset is helpful to set the stage.
As noted in Mindsets: The Role of Culture and Perception in Interna-
tional Relations, to better understand the concept of mindset such
as within ones own culture or when working with others from another
culture, as in a global or virtual team, a global forum, and a global
operations division a key question to ask is, what is the cultural lens
in the background? For example, if a business depends on a work-
force to be proficient at problem solving, it is helpful to be cognizant of
how work is viewed. That is, in the organizations culture, is the idea of
work considered as basically good or is it something to be endured? Do

employees bring a sense of personal responsibility to their company? In
the workplace, does the company culture encourage people to think and
reason in certain ways, such as in support of the company vision and
mission? Is the leadership style hierarchical or collaborative? Are innova-
tion and risk-taking encouraged?10 These types of questions are useful to
understand and analyze mindsets in the workplace.
Awareness of key factors in the Indian HRM environment is essen-
tial to establish and/or improve work relationships. The result will be a
stronger foundation to strategically develop new product lines and thus
expand market share. For example, in an Indian organization, group
dynamics the team tends to be more important than focus on the
individual contributor. Additionally, titles are important, management
models and theories are of great interest, and citing recognized authori-
ties brings credibility. In a global work environment, awareness of differ-
ent mindsets can mean the difference between success and failure. While
an in-depth discussion of the cultural lens is not part of this chapter, it
is important to realize that Indian culture has a substantive influence on
talent mindset in corporate India. To provide current examples of talent
mindset in the Indian HR context, SHRM asked leaders from successful
Indian organizations about their talent mindset philosophy.
At Future Capital Holdings (FCH), the companys competitive
advantage is its people. Established in 2006, FCH is an Indian publicly
listed company with about 300 employees. Ophealia de Roze, Head
Human Capital Management, describes the companys philosophy:
We believe that if we have to live out our vision at the ground
level, then attracting, retaining, and nurturing talent is an art,
which must be honed in order for us to bring out the entrepre-
neurial and creative spirit of employees in our organization.
Ms. de Roze further explains that

talent is the organizations most valuable asset, hence employ-
ees need to be nurtured and groomed by management. They
also need to be intellectually engaged with challenging assign-
ments in an environment that promotes dialogue, debate experi-
mentation, and collaborative decision-making.
Great Place to Work Institute, India was established in 2007 within

the private sector. The multinational corporation, Great Place to Work
Institute, is located in 40 countries. The companys India CEO, Prasenjit
Bhattacharya, explains that the organizations philosophy differs from
most companies, because
we are perhaps the only global institute that looks at organiza-
tions and workplaces purely from an employees point of view.
Traditional talent management frameworks in India still consider
talent management and leadership development from an organi-
zations viewpoint, with little appreciation of the need to look at it
from the employees experience.
Mr. Bhattacharya adds,

We have been listening to employees and evaluating employers
since 1980 to understand what makes a great workplace. As
noted on the companys web site, our employee-centered model
has been recognized for more than 20 years as a clear, com-
prehensive representation of the importance of trust in creating
great workplace relationships [] Building trust in relationships
between employees and management helps your workplace to
operate more effectively, serving as a source of enduring advan-
tage for your organization.
EXL Service, a multinational corporation, is a leading provider of

offshore business process outsourcing solutions. Established in 1999,
EXL in India has approximately 10,000 employees. With the corporate
headquarters located in New York, USA, EXL has offices in the United
States, the United Kingdom, India, and the Philippines. In India, there
are five major service centers, located in Noida, Uttar Pradesh, and Pune.
Nayana Prabhu, Vice President Learning and Development at EXL in
India, says, We believe that the war for talent is here to stay and expe-
rience it on a day-to-day basis. We are also deeply committed to people
development. Ms. Prabhu points out that 50 percent of the organiza-

tions leadership is grown from within the company.
Our philosophy is to leverage the strengths of our employees
by providing on-the-job challenges, a work atmosphere that
engages employees, and training that makes an impact to the
persons professional and personal development. Our philosophy
about talent mindset will help us build a robust talent pool and
therefore enable our vision and mission.
She points out that people development is a strategic priority, so

our CEO and the Executive Committee with the help of our Global
HR Head facilitate the talent mindset. Ms. Prabhu emphasizes that
to be successful, each corporation must have a very strong induction
process into the culture of the company.
Indian HRM Context: Unique Factors

As pointed out by Indian management scholar and author Pawan S. Bud-
hawar, the strong influence of the socio-cultural context in India does not
always allow the applicability of Western management and organization
theories. He emphasizes that
to a great extent, this is a core issue for Western firms operating
in the Indian context and sends a clear message to researchers
in the field. The intention of both HR practitioners and research-
ers should be to continuously develop, test, and re-test con-
structs suitable for conducting research and develop relevant
practice in the Indian context. 11
With the challenge of mixing Western management practices with

Eastern management traditions, understanding the Indian HRM context
and its corresponding influence on talent mindset is a necessity for both
Indian and Western organizations. Figure 5.3 presents factors that influ-
ence talent mindset in Indian HRM with tradition and trends com-
bined, aptly described and explained by Ms. de Roze, Ms. Prabhu, and
Mr. Bhattacharya.
Figure 5.3 Factors of Talent Mindset in the Indian HRM Context

Organizations are encouraging employees to think independently and be proactive in terms
of learning and development.
Employees are more mobile and take risks with their career choices.
Leaders are younger.
Employees demand to be part of the decision-making process and/or understand the

context of what the organization is doing.
There is broad cultural diversity (such as religion, language, economic strata, and
community).
Education and professional memberships are important to move upward in the
organization.
Role clarity is important in terms of the cultural value dimension of high power distance
[hierarchy].12
Status is often based on the university attended, as well as a function of geographic and
socioeconomic origin.
Ms. de Roze, of Future Capital Holdings Limited, points out that

dissonance occurs as organizations change from a pyramid-like structure
to a circular structure, which results in a shift in reporting, too. But its
less of a concern with the current generation. Yet, as Ms. Prabhu, of EXL
Service, states,
India has a large number of people in the employment market,
with the market open for opportunities. The two main influenc-
ers are the demand and supply of quality talent and the cost of
investment for growing talent versus buying talent. Conse-
quently, it is up to the strength of the HR teams in organizations
to influence and lead interventions around talent.
A number of key factors influence talent mindset in Indian HRM.

Demographics and education have a strong impact, along with changes
in views among the younger generations. Ms. de Roze points out that
todays youth have high aspirations and are brand-conscious. Talent at
all levels is relatively young, highly driven, and very focused. She explains
that young Indian workers today want to work in organizations that
have a brand name and are well-respected. Many seek companies with
international talent and opportunities to train or work on overseas
assignments. They want more independence in assignments, freedom in

choice, and fast-track careers. Compensation, professional development,
and growth are very important.
Ms. Prabhu notes that it is important to have the right fit for the
job and this means that education is very important. Now, there are
many more doctors and engineers, she says. Those with an MBA have
more demand. Today, one must have at least a four-year degree, but still,
organizations often must train and then retrain employees. She explains
that in the last two to five years, Indian leaders are younger (high-level
managers are often in their 40s), and this is by necessity. This trend dif-
fers from 10 years ago, when people did not change jobs. Today, more
people are attaining education more quickly and at a higher level. Now,
the workforce is much more mobile, and people reach managerial ranks
earlier because they are well-educated and ready to make professional
moves. They have more experience and exposure, and thus can handle
complex administration, Ms. Prabhu continues. This transition makes
sense because people are really ready to learn.
Ms. de Roze offers additional insights regarding talent mindset in
todays Indian HRM context.
The downturn has had an impact on the mindset of talent that,
for a significant stretch, only saw the economy and job opportu-
nities move in an upward direction. Today, one sees individuals
who are more concerned about skill development, leadership
potential, work/life balance, and corporate culture. Adequate
compensation, a good work environment, and intellectual stimu-
lation have clearly become a necessity, but real success requires
a complete overhaul in the mental makeup of management and
thus the DNA of an organization to center around nurturing
talent and creating internal leaders.
The diversity of culture in India is unique and clearly influences

talent mindset. Ms. Prabhu emphasizes that cultural issues are important
for Westerners to understand in order to work better together with their
Indian colleagues. For example, in India, power distance and hierarchy
are important. One must defer to a senior person. There is also strong
regional diversity. She explains,
When you ask an Indian where he or she comes from, the

response may include what region of India, community, and reli-
gion. Diversity also includes economic strata and education (e.g.,
where did you get your MBA at a premier Indian university
or a local school?). The identified university translates into the
brand (Ivy League, for example). One can be more easily posi-
tioned for different senior levels, depending on which institute/
business school you attended.
Another critical factor is availability of talent. Mr. Bhattacharya, of

Great Place to Work Institute, India, points to the enormous mismatch
between demand for talent and availability of prepared talent. This
demand-supply gap is at the root of the short-term approach to talent
in many Indian companies. In many organizations, there are relatively
high levels of politics and perceived favoritism around talent manage-
ment. Non-application of the mind in applying theories, such as forced
ranking of talent, creates internal inequities in how people are treated
and leads to suboptimal utilization of all available talent. Further, he
notes, Assumptions made based on the past are likely to not be correct
in a growth context. The biggest bottleneck to talent management is
assumptions from days when jobs were in short supply and there were
many eligible candidates. In a typical leadership development proj-
ect, examples of such assumptions are that (1) there are more eligible
candidates (internally or externally) than available leadership positions,
(2) turnover of employees identified as key talent will not increase, and
(3) employees who are not identified as key talent will accept that the
assessment process is fair.
As highlighted by the three HR Indian executives, to truly under-
stand talent mindset in the Indian HRM context, it is critical to be aware
of the factors that influence talent mindset in todays transitional setting
in corporate India.
Key Drivers of Talent Mindset in Indian HRM

In recent years, the connections among human capital, employee engage-
ment, talent retention and productivity have gained more attention. The
level of engagement is important for productivity and, ultimately, orga-
nizational success, as it reflects the willingness of the workforce to help
companies succeed. The 2007-2008 Towers Perrin Global Workforce
Study, identifies drivers of attraction, retention, and engagement through
the eyes of employees at midsize and large organizations worldwide. Out
of nearly 90,000 respondents, 21 percent of employees were engaged
in their work and 38 percent were partly to fully disengaged. The gap
between engagement and disengagement is the discretionary effort that
companies need from their workforce to enhance performance.13
The data for India indicate strong engagement of talent: 36 percent
are engaged and 46 percent enrolled (actively interested) in their work,
while only 15 percent are disenchanted (unhappy/dissatisfied) and 3
percent are disengaged. The engagement measures for India are signifi-
cantly higher than those of most countries in the study (see Figure 5.4 for
specific attraction, retention, and engagement drivers in India).
In contrast, the U.S. engagement statistics were 29 percent engaged,
43 percent enrolled, 22 percent disenchanted and 6 percent disengaged.14
Indias workforce appears to be quite positively engaged, which is impor-
tant for retention of talent. Figure 5.5 presents key drivers behind talent
mindset in Indian HRM.
Figure 5.4 Attraction, Retention, and Engagement Drivers for Workers in India
Top Attraction Drivers Top Retention Drivers Top Engagement Drivers
Career advancement Manager inspires enthusiasm Input into decision-making in
opportunities for work my department
Challenging work Manager inspires enthusiasm Senior managements
for work actions consistent with our
values
Learning and development Satisfaction with the Organizations reputation for
opportunities organizations business social responsibility
decisions
Competitive base pay Positive impact of technology Seek opportunities to
on work/life balance develop new knowledge/
skills
Reputation of the Competitive performance Have excellent career
organization as a good management advancement opportunities
employer
Can impact quality of work/
product/service
Source: Adapted from Towers Perrin. (2008). 2007-2008 Towers Perrin global workforce study. Retrieved
August 26, 2009, from www.towersperrin.com.
Figure 5.5 Key Drivers of Talent Mindset for Indian HRM

Business expansion/growth
Support for key business strategies
Flexibility for innovation
High-performance driven culture
Challenging assignments
Drive to be globally competitive
Internal talent deployment
Expansion of the leadership pipeline
Workforce planning
Work with international talent
Capacity to multitask across functions and businesses
Recommendations: Doing Business in India

To move forward successfully in todays business world, change is neces-
sary in India. As pointed out by Prasenjit Bhattacharya, CEO of Great
Place to Work Institute, India, traditional mindsets need to change to
keep up with trends. He points out that
the biggest challenge, in my opinion, is in reconciling the mind-
set of older managers (from an era where shortage of jobs meant
balance of power firmly in favor of managers) with expectations
of the current generation.
To conduct business in India, it is essential to understand the cultural

context of India and its diversity. Ms. de Roze points out that relation-
ships are as critical as professionalism, and personal loyalty is very
important. Further, broadly speaking, Indians are emotional but may
not show it a cultural aspect that many Westerners fail to realize or
appreciate. In her role, Ms. Prabhu emphasizes that companies that seek
to do business in India need to understand the Indian culture with the
help of a cultural model (e.g., Geert Hofstede). This knowledge may
help organizations build better partnerships [] and also educate your
Indian counterpart about how to understand you. She recommends
that Westerners seek to understand the concepts of gender, hierarchy, and
power distance in India.15
Ultimately, to be successful in business in India, it is important to
realize the many unique aspects of talent mindset in the Indian HRM
context (see Figure 5.6).
Figure 5.6 Recommendations on Talent Mindset to Do Business in India

Understand the cultural context of India and its broad aspects of diversity.
Understand that relationships are as critical as professionalism.
Be aware that personal loyalty is viewed as very important.
Understand the expectations of the young generation.
Provide learning and development opportunities.
Educate your Indian counterpart about how to understand you.
Focus on creating an organizational context not a geographic context.
In Closing
India is in a period of transition and high growth. As highlighted by the
experience of three successful Indian corporations, talent mindset is key
to organizational success. Going forward, Indian HRM will continue to
evolve, and talent will continue to be an essential aspect of growth and
sustainability. Whether the goal is competitive advantage, global expan-
sion, or development of a leadership pipeline, having the right talent
mindset to support the company vision, mission, and business goals is a
determining factor for the future.
Appendix A:
A Primer on Being Culturally Aware
General
Status is determined by age, university degree, caste, and profession.
The word No has harsh implications in India. More common are eva-
sive refusals, which are considered more polite. Ill try is an acceptable
refusal.
Referring to industry sector as houses (e.g., manufacturing houses,
financial houses, business houses).
Names
Traditionally, Hindus did not have family surnames. An individuals
name could be derived from his or her family or from other sources. For
example, in southern parts of India, people in many communities have
no surname. A Hindu male might use the initial of his fathers name, fol-
lowed by his own personal name. One of the HR executives interviewed
writes his name as M. A. Mukund. M stands for his native location/
community and A for his fathers name, and Mukund is his personal
name.
For a woman, the same pattern: The fathers initial plus her per-
sonal name. When she marries, she does not use her fathers initial and
takes her husbands name. For example: S. Kamala marries V. Thiru and
becomes Mrs. Kamala Thiru.
A term of respect for all adult women: Srimati, which shows respect.
For example, the first lady is Srimati Pratibha Patil. This term is also
spelled Shrimati and is pronounced the same in Hindi.
Within the text of an article, in the West, we use the last name of
an individual (Lockwood or Victor) on second reference. However,
to be culturally respectful, the names also include Mr., Ms., etc., as
appropriate.
Appendix A 87
Colors
Color is an integral part of Indian lifestyle, embedded in the culture.
Color is a part of daily life: clothing, food, festivals, religion
The Indian flag: red-orange (saffron, the color of flowers that women
wear in their hair), green (which reflects the deep lush tropical forests
in India), and white (which represents purity and truth).
Green, red, and yellow are lucky colors.
Do not wrap gifts in black or white they are considered unlucky
colors.
Linguistic Differences
Most Indians have a British influence in their choice of words. Some
examples:
Western Indian
gas station petrol pump
gas pedal accelerator
trunk dikki
cooler ice box
eye glasses spectacles
utensils vessels
dead expired
cafeteria or canteen mess

The accent is not British, and there is no universal Indian accent.
The accent depends on the influence of the local language/mother tongue.
Most Indians think in their respective local language and translate those
thoughts into spoken English. Sometimes, it is a direct translation from
the mother tongue.
Hindi is the national language and the primary tongue of 41 percent
of the population (with 14 other official languages).
Most Indians are trilingual: the three-language formula (English,
Hindi and the state language) is deeply embedded in the educational
system.
Commonly Heard and Easy to Learn

India, Inc. = A common term used in India to refer to Indias corpo-
rate sector.
Ill revert = means to get back to.
Pharma = means the pharmaceutical industry.
Hence is commonly used in speaking and in writing.
B school = business school. Does not imply an excellent or a medio-
cre school (such as the Western concept of an A student versus a B
student).
Good show! Keep it up! = a phrase that gives praise.
Writing in English
Indians have a tendency to capitalize letters to signify what is
important (e.g., The BPO portfolio includes Account Setup and Man-
agement, Fund Posting and Disbursement, Title Verification, and Client
Reporting).
E-Mail Etiquette
Warm regards as an e-mail closing this is a combination of cul-
tural and personal regards. Indians have a history of living in harmony
with others and with nature. This is often reflected in the strong bonds,
communication, and behaviors of individuals and groups.
With globalization, more Indians are adapting to the impersonal,
business style of no greeting, no warmth in closure, and often with not
enough respect and acknowledgment of the individual.
Some Indians use warm regards as a way to acknowledge and to
put their personal best into communications. In India, the family values
always speak to respect, service, and, often, love for one another.
Indians who use warm regards (or very warm regards) tend to
also begin an e-mail with Dear (or my very dear ). They will also
ask how you are and/or wish you well in the beginning of the e-mail to
establish rapport.
Appendix A 89
What Does That Mean, Really?

Indians with a Western influence (mostly from Tier 1 cities) are able
to minimize their British language influence to a greater extent than those
from Tier 2 and 3 cities.
Direct translations from the local language:
I need to give an interview means attend an interview.
I need to take an interview means interview someone.
Whats your good name? means whats your name?
Club them together means to lump or put together.
What an Indian May Hear When an American Says
American: The cop gave me a ticket.

The Indian: A ticket to where? The movies?
American employee at McDonalds: For here or to go?

Indian replies: I will eat here and then I go.
Appendix B:
Global Leadership Competencies Poll
Senior HR Leaders in India
By Amanda Benedict
Beginning in March 2009, the Society for Human Resource Manage-

ment (SHRM) conducted a poll among HR professionals in the United
States, Canada, India, the Middle East, and North Africa about the most
important competencies defined as knowledge, skills, abilities, and
other qualities for senior HR leaders.
SHRM India, a wholly owned subsidiary of SHRM, organized data
collection among HR professionals in India.
Poll participants were presented with a list of 18 important com-
petencies for senior HR leaders, as identified through recent SHRM
qualitative research with HR leaders and members of the academic com-
munity (see Table A.1). From this list, poll respondents were asked to
identify the top five competencies for senior HR leaders in general, weigh
in on how those competencies may change in importance five years into
the future, and share their opinions about the extent to which the top
competencies can be cultivated. Further, respondents were asked about
competencies needed for HR leadership roles within global organizations
and during times of economic crisis.
Table A.1 Top 18 Core Senior HR Leadership Competencies

COMPETENCY DESCRIPTION
Business knowledge An understanding of the operations and processes of
how business is conducted.
Coaching/developing others Helping others to reach their potential.
Credibility Being perceived by others as having the knowledge and
experience to back up ones authority.
Critical/analytical thinking Seeking information and using that information to inform
decisions and resolve problems.
Appendix B 91
Cross-cultural intelligence Knowledge of and sensitivity to differences among

cultures.
Effective communication Being able to verbally or in writing convey messages
in terms that make sense, and also to actively listen to
others interpersonal communications.
Ethical behavior Perception of the moral appropriateness of individual
and/or group conduct or behavior.
Flexibility/adaptability The ability to adjust the approach as required by shifts
within the organization and in the external business
environment.
Global intelligence/global An overarching way of thinking about the nature of
mindset doing business that includes an understanding of and
sensitivity to cultural differences among workers in
other countries and legal issues inherent in operating a
business multinationally.
HR knowledge Understanding of tactical and strategic HR functions and
processes.
Integrity Honesty and doing the right thing.
Leading change Charting the course for the organizations stakeholders
to navigate a shift in business processes, priorities, roles,
and expectations.
Organizational knowledge Understanding the business issues that are specific
to the organization and having empathy for and an
awareness of the impact of human capital issues on the
organization as a system.
Persuasiveness/influencing The art of using interpersonal skills to convince others to
others share ones perspective or way of thinking.
Results orientation/drive for The ability to link processes and practices to positive
performance outcomes and to demonstrate the value that HR brings
to the organization.
Shaping organizational culture Creating the values by which an organization operates.
Strategic thinking Seeing the big picture, having a long-term line of sight
and understanding the interconnectedness of decisions
and activities within the various lines of the business.
Technological savvy Knowledge of the unique solutions and challenges
that new technology will bring to the organization
and understanding of how talent management will
be affected by a technologically enhanced business
environment.
For purposes of this Appendix and for ease of use, the contrasting
data presented below is between the U.S. and India only. The full report
with all the regions, What Senior HR Leaders Need to Know: Perspec-
tives from the United States, Canada, India, the Middle East and North
Africa, can be accessed from the Society for Human Resource Manage-
ment web site at www.shrm.org/Research/SurveyFindings/Articles/Pages/
WhatSrHRLeadersNeedtoKnow.aspx.
Which Competencies Matter Most?

HR professionals in India were presented with these 18 competencies.
Their rankings and percentages as compared with their counterparts in
the United States are listed in Table A.2.
Table A.2 Top Competencies for Senior HR LeadersIndia vs. United States
Rank: Rank: Competency India U.S.
India U.S. (n = 348) (n = 566)
1 2 Strategic thinking 57% 57%
2 1 Effective communication 50% 59%
3 6 Business knowledge 46% 33%
4 3 HR knowledge 36% 56%
5 9 Leading change 36% 26%
6 10 Coaching/developing others 33% 26%
7 14 Results orientation/drive for performance 32% 18%
8 4 Integrity 27% 38%
9 5 Ethical behavior 25% 37%
10 15 Shaping organizational culture 24% 14%
11 11 Organizational knowledge 23% 22%
12 17 Global intelligence/global mindset 22% 5%
13 12 Persuasiveness/influencing others 21% 20%
14 8 Critical/analytical thinking 20% 28%
15 7 Credibility 19% 31%
16 13 Flexibility/adaptability 12% 19%
17 16 Cross-cultural intelligence 9% 6%
18 18 Technological savvy 7% 3%
Appendix B 93
Cultivating Competency
Can leadership competencies be cultivated? It depends in part on the
nature of the competency and whether it is perceived as something that
can be acquired, such as operational knowledge or skills, or as an attri-
bute and part of the individuals character. Additionally, cultural context
may influence ones belief about whether certain competencies can be
learned. Table A.3 depicts HR professionals beliefs about the cultivation
prospects of the top five senior HR leadership competencies.
Table A.3 Can Senior HR Leadership Competencies Be Cultivated? (India)

Very possible to cultivate Somewhat possible
this competency to cultivate this
competency
HR knowledge (n = 90) 74% 22%
Leading change (n = 104) 44% 48%
Business knowledge (n = 82% 17%
127)
Effective communication (n 67% 28%
= 137)
Strategic thinking (n = 159) 50% 42%
Note: Includes only responses of HR professionals who selected each competency as one of their top five
most important competencies.
Looking Ahead: What Will Change?

HR professionals were asked to indicate how the top five selected compe-
tencies for senior HR leaders would change in importance five years from
now. Their responses, presented in Table A.4, provide senior HR leaders
with a roadmap for the knowledge and skills areas in which they will be
expected to become even stronger in the future.
Table A.4 How Will Senior HR Leadership Competencies Change in Five

Years? (India)
Will be about
Increase in Decrease in
as important
importance importance
five years
five years five years
from now as
from now from now
it is today
HR knowledge (n = 89) 47% 46% 7%
Leading change (n = 103) 57% 37% 6%
Business knowledge (n = 131) 62% 34% 5%
Effective communication (n = 143) 48% 45% 6%
Strategic thinking (n = 159) 67% 29% 4%

Note: Includes only responses of HR professionals who selected each competency as one of their top five
most important competencies.
Leading Globally
Not surprisingly, when HR professionals were asked about the most
important competencies for senior HR leadership roles in global organi-
zations, global intelligence/global mindset and cross-cultural intelligence
rated in the top five for each of the four countries/regions included in
the poll. This is consistent with SHRMs earlier research that found that
senior HR leaders and the HR academic community rated global mindset
as the most important competency for senior HR leaders in global roles
and anticipated that having global intelligence would become even more
salient for this advanced and influential group of HR professionals in the
future due to increasing globalization. These data for India are shown in
Table A.5.
It is possible that the understanding of the magnitude of the knowl-
edge and skills shift required of HR leaders to go from domestically
focused to globally focused operations may be a factor in how respon-
dents from each of the countries/regions rated the importance of various
competencies for global roles.
Appendix B 95
Table A.5 Top Competencies for Senior HR Leaders in Global Organizations

India vs. United States
India U.S. (n = 337) (n = 548)
9 16 Results orientation/drive for performance 28% 11%
14 10 Integrity 18% 21%
Note: Percentages do not total 100 percent due to multiple response options.
HR Leadership in Times of Economic Crises

Recent years have seen a worldwide economic downturn. According to a
recent SHRM publication, In todays business world, the interconnect-
edness of the global economy means that economic struggles in one part
of the world inevitably reverberate to other countries. Nearly four out of
10 companies indicated that the volatility in the world financial markets
directly affected them.
Although the financial outlook is improving as countries economies
begin to recover (and indeed, there is prevalent belief that Indias econ-
omy has already recovered), there will be lasting effects on how organiza-
tions around the world conduct business. The impact on organizational

revenues and funding for staffing, HR initiatives, and operational
strategies as a result of the sudden and severe economic decline created
many challenges within organizations, but it also provided valuable
lessons about successfully leading organizations through lean financial
times. The most important competencies for senior HR leaders during a
financial crisis are presented in Tables A.6.*
Table A.6 Competencies for Senior HR Leaders During an Economic

Crisis India vs. United States
India U.S. (n = 294) (n = 516)
4 10 Results orientation/drive for 24% 10%
performance
11 6 Integrity 15% 21%
Note: Percentages do not total 100 percent due to multiple response options.
* Society for Human Resource Management (2009, June.) The impact of the U.S. and global
economic decline on businesses. Retrieved from www.shrm.org/Research/SurveyFindings/
Articles/Pages/TheImpactoftheUSandglobal.aspx.
Appendix B 97
Conclusions
In order to successfully meet the demands of their roles, senior HR
leaders must not only be keenly aware of the knowledge, skills, abilities,
and other qualities required of them now, but also have an understand-
ing of how those requirements may change in the future. This research
found that effective communication and strategic thinking were the
top two competencies for senior HR leaders across all of the countries/
regions that participated in the poll. Moreover, these competencies are
expected to become increasingly salient five years into the future. Senior
HR professionals and those who aspire to advanced HR positions should
take measures to cultivate and enhance the competencies expected of elite
levels of HR.
Further, as the workplace becomes increasingly globalized, senior
HR leaders must develop the competencies required of advanced HR
roles in other countries and regions of the world. According to HR pro-
fessionals in each of the four countries/regions that participated in this
poll, global intelligence/global mindset, cross-cultural intelligence, effec-
tive communication, and strategic thinking were among the top five com-
petencies for senior HR leaders operating in global organizations. This
bodes well for senior HR professionals who are moving to multinational
corporations or expatriate assignments, as it suggests that acclimation to
these roles may not require dramatic shifts in paradigm since there are
commonly understood expectations and commonly held views about HR
leadership in businesses operating in other countries or regions.
Endnotes
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2
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3
Gupta, A., Koshal, M., & Koshal R. K. (2006). Women managers in
India: Challenges and opportunities. In H. J. Davis, S. R. Chatterjee
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4
Budhwar, P. S., Saini, D. S., & Bhatnagar, J. (2005, June). Women in
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5
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11
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13
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14
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ckochcharresume.htm.
15
Sharma, K. (2003, December). Road to the top. Retrieved April 7,
2009, from www.indiatogether.org.
Basu, S. (2008). Gender stereotypes in Corporate India: A glimpse.
16
New Delhi: Response Books.

17
Handy, F., Ranade, B., & Kasam, M. (2007, Summer). To profit or
not to profit: Women entrepreneurs in India. Nonprofit Management &
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18
Khandelwal, P. (2002, April-June). Gender stereotypes at work:
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Basu, S. (2008). Gender stereotypes in Corporate India: A glimpse.
19
New Delhi: Response Books.

20
21
Gupta, A., Koshal, M., & Koshal, R. K. (2006). Women managers
in India: Challenges and opportunities. In H. J. Davis, S. R. Chatterjee
& M. Heuer (Eds.), Management in India (pp. 285-312). New Delhi:
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22
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23
Retrieved July 10, 2009, from www.nasscom.in.

The 100 most powerful women. (2009, August 19). Forbes. Retrieved
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25
Chapter 4
1
Society for Human Resource Management. (2008, April 1). The
employer brand: A strategic tool to attract, recruit and retain talent.
Retrieved from www.shrm.org/Research/Articles/Articles/Pages/
TheEmployerBrand-AStrategicTooltoAttract,RecruitandRetainTalent.
aspx.
2
Kumar, N. (2009). Indias global powerhouses: How they are taking on
the world. Boston: Harvard Business Press.
Endnotes 103
3
Kumar, N. (2009). India unleashed. Business Strategy Review, 20 (1),
4-15.
4
Bhatnagar, J. (2009). Talent management strategies in India. In P.
S. Budhwar and J. Bhatnager (Eds.), The changing face of people
management in India (pp. 180-206). London: Routledge.
5
Saini, D. S., & Budhwar, P. S. (2004). HRM in India. In P. S. Budhwar
(Ed.). Managing human resources in Asia-Pacific (pp. 113-139). New
York: Routledge.
6
Budhwar, P. S., Bjrkman, I., & Singh, V. (2009). Emerging HRM
systems in foreign firms operating in India. In P. S. Budhwar & J.
Bhatnagar (Eds.), The changing face of people management in India (pp.
115-134). London: Routledge.
7
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researchandmarkets.com/reportinfo.asp?report_id=339460.
8
Kumar, N. (2009). India unleashed. Business Strategy Review, 20 (1),
4-15.
9
Society for Human Resource Management. (2009). Indian human
resource management and talent mindset. Retrieved from www.shrm.
org/Research/Articles/Articles/Pages/Mgmtandtalentmindset.aspx.
10
Society for Human Resource Management. (2009). Future insights:
The top trends according to SHRMs HR subject matter expert panels.
Alexandria, Va.: Society for Human Resource Management.
11
Lockwood, N. R. (2007). Leveraging employee engagement for
competitive advantage: HRs strategic role. SHRM Research Quarterly,
1.
12
Towers Perrin. (2008). 2007-2008 Towers Perrin global workforce
study. Retrieved October 1, 2009, from www.towersperrin.com.
13
Society for Human Resource Management. (2010). SHRM Poll: HR
leadership competencies. Retrieved from www. shrm.org/research.
Agarwal, S. K. (2008). Corporate social responsibility in India. New
14
Delhi, India: Response Books.

15
Strategic Human Resource Management India Pvt. Ltd. (2008,
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16
Society for Human Resource Management. (2007, March). 2007
corporate social responsibility: United States, Australia, India, China,
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for Human Resource Management.
Chapter 5
1
Budhwar, P. S., & Bhatnagar, J. (Eds.). (2009). The changing faces of
people management in India. New York: Routledge.
2
Ibid.
3
The Boston Consulting Group, Inc., and the World Federation
of Personnel Management Associations. (2008). Creating people
advantage: How to address HR challenges worldwide through 2015.
Boston: The Boston Consulting Group, Inc.
4
Forbes. (2009, April). The Forbes global 2000. Retrieved September 8,
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5
Society for Human Resource Management. (2009). Global diversity
and inclusion: Perceptions, practices and attitudes. Alexandria, Va.:
Society for Human Resource Management.
6
Society for Human Resource Management. (2009). Perspectives on
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7
World Economic Forum. (2009). The global competitiveness report
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initiatives/gcp/Global%20Competitiveness%20Report/index.htm.
8
Chatterjee, S. R., & Heuer, M. (2006). Understanding Indian
management in a time of transition. In H. J. Davis, S. R. Chatterjee &
M. Heuer (Eds.), Management in India: Trends and transition (pp. 11-
27). New Delhi: Response Books.
Endnotes 105
9
Davis, H. J., Chatterjee, S. R., & Heuer, S. (Eds.). (2006).
Management in India: Trends and transition. New Delhi: Response
Books.
10
Fisher, G. (1997). Mindsets: The role of culture and perception in
international relations, 2nd edition. Yarmouth, Maine: Intercultural
Press, Inc.
11
Budhwar, P. S. (2009). Challenges facing Indian HRM and the way
forward. In P. S. Budhwar & J. Bhatnagar (Eds.), The Changing Faces of
People Management in India (pp. 289-300). New York: Routledge.
12
Hofstede, G. (1980). Cultures consequences: International differences
in work-related values. Newbury Park, Calif.: Sage.
13
Towers Perrin. (2008). 2007-2008 Towers Perrin global workforce
study. Retrieved August 26, 2009, from www.towersperrin.com.
14
Ibid.
15
For example, see Society for Human Resource Management. (2008).
Selected cross-cultural factors in human resource management. SHRM
Research Quarterly, 3.
Index
360-degree feedback, 12 employer brand, 49-54, 57-61, 63, 66-8

building, 67
A.T. Kearney Global Retail Development key points for, 52
Index, 20 value, 62
Accenture, 15 Budhwar, Pawan S., 33, 53, 71
acculturation programs, 15 business
adaptability, 5, 8, 10, 91, 92, 95, 96 environment, 4, 14, 91
Agarwal, Sanjay, 62 investment, 19, 41, 51, 67
Ahmedabad, 55 leaders, 9, 11, 70
altruistic business philosophy, 9, 10 process outsourcing (BPO), 39, 54, 77
analytical ability, 8 sectors, 6, 14, 69
Apex Talent Council, 26 socially responsible practice, 62
Argumentative Indian (The), 30 strategic goals, 69
Arpan, 63 strategy, 33, 47
assessment centers, 12, 23 sustainability, 18, 57
attrition levels, 25
Australia, 9, 55, 64-5 career guidance, 47
Carobolante, Lorelei, 13, 14
Baby Boom, 74, 75 Center for Creative Leadership (CCL), 8
Baby Boomers, 75 change management, 8, 43
Balyan, A.K., 20 process, 4
Bangalore, 19, 27, 55, 74 Changing Face of People Management in
Barua, Poonam, 46 India (The), 53, 70
Basu, Sujoya, 34 Chennai, 6
benchmarking, 15 CHEP India Pvt. Ltd., 55, 56, 57, 58, 61,
best practices, 16, 39, 46, 53 62, 63
Bharat Petroleum Corporation Limited, 9 child care facilities, 37
Bhaskar, Archana, 37, 38, 40, 41, 43 China, 3, 20, 51, 55, 63, 64-5,
Bhatnagar, Jyotsna, 51 coaches, 12
Bhattacharya, Prasenjit, 69, 77, 78, 81, 84 coaching, 90, 92, 95, 96
Bhutani, Manmohan, 51, 54, 58, 61, 66 communication skills, 8, 42, 48
Biocon, 47 communication tool, 13
Bjrkman, Ingmar, 63 competency/ies, 1, 7, 8, 11, 18, 24, 26, 45,
Bodhivriksha, 15 58, 59, 61, 72, 90, 92, 93, 94, 96, 97
Boston Consulting Group (The), 11, 71 mapping, 61
Brambles, 55, 56 competitive advantage, 49, 51, 58, 64, 70,
brand(s) 75, 76, 85
brand-conscious, 79 competitive cost-advantage, 15
building, 50 competitive marketplace, 6, 11, 17, 58
corporate, 52 Conference Board (The), 10
Index 107
consultants, 12, 14 Development Credit Bank Ltd. India (DCB),

consumerism, 2 20, 21
corporate profitability, 11 development programs, 27
corporate reputation, 9, 10 career, 37
corporate social responsibility (CSR), 26, professional, 80
27, 63 Dhavari, 5
initiatives, 62, 63, 66 differential treatment, 36
programs, outcomes of, 64-5 diverse workforce, 8
Corporate Social Responsibility in India, 62 diversity, 14, 39, 71, 80, 81, 84
Corporate Social Responsibility, 63 management, 8
Creating People Advantage, 71 practices, 39
cross-cultural boundaries, 14 programs, 44
cross-cultural communication, 12 Dubey, Rajeev, 15, 17, 20
cultural
change, 9 Each One Brings Ten (EOBT), 22
concepts, 12 economic
dimensions, 12 environment, 1, 38, 70
diversity, 79, 80 prosperity, 75
expectations, 13 strata, 5, 79, 81
heritage, 13 uncertainties, 57
inferences, 13 Economic Times (The), 4
issues, 80 employee
lens, 75, 76 engagement, 26, 58, 82
misunderstandings, 13 fit, 50
model, 84 lifecycle, 61
mores, 47 loyalty, 63, 64-5
presumptions, 14 morale, 63, 64-5
shift, 30 motivation, 11, 75
shortcuts, 14 entrepreneurship, 11, 35
value changes, 2 Equal Remuneration Act of 1976, 30
viewpoints, 48 ethnicity, 73
culture(s), 1, 2, 3, 6, 11, 12, 13, 16, 18, 26, Europe(an), 9, 11, 56
27, 30, 53, 54, 61, 67, 72, 75, 76, 78, 80, Excellence in Learning Programme, 27
83, 84, 87, 91 EXL Service, 57, 69, 77, 79
business, 63, 72 expatriate(s), 22, 23
culture of empowerment, 19 assignments, 97
company, 24, 76 pool, 27
corporate, 36, 74, 80
national, 73 financial growth, 5
organizational, 11, 50, 70, 91, 92, 95, 96 FinTech 100, 61
subcultures, 73 Fiserv India, 51, 54, 58, 61, 63
team-based, 50 Forbes Global 2000, 14, 71
work, 53, 72 Forbes, 46
customer behavior, 45 foreign investment, 2
Fortune, 31-2, 54, 57, 61
de Roze, Ophealia, 69, 76, 78, 79, 80, 84 Forum for Women in Leadership (WILL), 46
Deloitte, 46 Future Capital Holdings, Limited (FCH), 69,
Developing Business Leaders for 2010, 8 76, 79
G2nd Systems, 13 human resources (HR), 2, 22, 35, 39, 40, 41,
Gandhi, Shrimati Sonia, 43, 47 50, 52, 69
GDP, 3, 6 context, 69, 76
Gen X, 75 development (HRD), 52
Gen Y, 75 executives, 17, 18, 43, 49, 53, 58, 59,
gender 60, 61, 66, 69, 86
differences, 34 function(s), 52, 71, 91
diversity, 29, 32, 34 global HR policy, 53
issues, 36, 37 issues, 74
stereotypes, 35 knowledge, 59, 91, 92, 93, 94, 95, 96
Gender Stereotypes at Work, 35 leader(s), 59, 63, 67, 69, 71, 90, 92, 93,
Gender Stereotypes in Corporate India, 35 94, 96, 97
global leadership, 95, 97
assignment(s), 15, 19 competencies, 58, 93, 94
business values, 2 roles, 58, 90, 94
economy, 1, 4, 16, 29, 48, 95 management (HRM), 2, 33, 52, 69
landscape, 57 context, 70, 78, 80, 81
manager, 13 environment, 76
marketplace, 1, 2, 4, 24, 49, 53, 58, management practices, 37, 50
68, 75 perspective, 50
organizations, 2, 15, 59, 74, 75, 90, 94, plans, 2
95, 97 policies and programs, 48
recognition, 51 practice(s), 32, 39, 51, 52, 53
strategies, 2 practitioners, 58, 78
Global Competitiveness Report 2009-2010, profession, 52
72 professionals, 50, 70, 90, 92, 93, 94, 97
Global Diversity and Inclusion, 71 strategic, 43
Global Diversity Readiness Index, 71 tool, 52, 66, 68
Global Workforce Study, 58, 82 systems, 71
globalization, 1, 8, 17, 32, 43, 53, 88, 94 teams, 79
globally dispersed workplace terminology, 52
Google, 51 Hyderabad, 74
Great Place to Work Institute, India, 60,
69, 77, 81, 84 ICICI Bank Limited, 33, 47
Gurgaon, 55 inclusion, 14, 39
incubator culture, 74
Hattangady, Hema, 37, 39, 40, 42 India Unleashed, 57
Hay Group, 8, 9 Indias Global Powerhouses, 50
Hindi, 2, 3, 40, 73, 86, 87 Indian Administrative Service, 32
hiring Indian Institute of Management Calcutta, 34
compatibility, 51 Indian National Congress Party, 44, 47
managers, 45 Indian Oil Corporation, 46
practices, 36 Industrial Training Institutes (ITI), 23
HLL India, 42 Infosys Technologies, 46, 51
Hofstede, Geert, 84 innovation, 5, 8, 9, 10, 14, 15, 61, 72, 76, 83
human capital, 2, 17, 23, 28, 69, 82, 91 customer-centric, 15
performance, 52 innovative, 7, 19
pipeline, 17 International Monetary Fund, 3
Index 109
internationalization sustainable, 4, 5, 6, 7, 11, 12, 15, 16

Jaipur, 33 competency/ies, 8, 9, 16
job rotation, 37 talent development, 16
job satisfaction, 37 traits, 9
values, 8
knowledge transfer, 23
Kochhar, Chandra, 33, 47 Maanasvi LLC, 37
Kolkata, 6 Mahindra & Mahindra Ltd., 14, 15, 17, 20,
KPMG, 46 26, 27
Kuala Lumpur, 9 Mahindra Alumni Association, 26
Kumar, Juhi, 37, 38, 39, 40 Mahindra Management Development
Kumar, Nirmalya, 50, 57 Center, 26
male-dominated
labor shortage, 71 bastion, 44
language influence, 13, 89 society, 30
leadership, 1, 2, 4, 5, 7, 12, 14, 15, 16, 61, traditional, 35
78 technical marketplace, 42
ability, 1 Management in India, 75
attributes, 11 management
challenges, 9 diverse practices, 48
competency/ies, 2, 6, 7, 8, 12, 14, 16, internal, 11
58, 59, 90, 93, 94 performance, 74, 83
model, 8 practices, 24, 37, 48, 50, 67, 72, 78
concepts, 8 Mandayam, Mukund, 55, 58, 60, 67
corporate, 36 Mansukhani, Arun, 20, 25
development, 7, 11, 47, 77 Mazumdar-Shaw, Kirna, 47
programs, 26, 37 mentor(s), 37, 42, 46
project, 81 mentoring, 36, 37, 42, 43, 48
trends, 8 programs, 37
dimensions, 8 mentorships, 47
education, 8 mindset(s), 24, 46, 72, 74, 76, 84
issues, 1 global, 14, 59, 74, 91, 92, 94, 95, 96, 97
lifecycle programs, 26 Mindsets, 75
needs, 6 multinational corporations (MNCs), 2, 6, 13,
pipeline, 7, 48, 83, 85 15, 18, 19, 29, 32, 39, 41, 46, 49, 50, 51,
position(s), 6, 81 52, 53, 55, 57, 59, 62, 66, 67, 68, 70, 77, 97
potential, 80 Mumbai, 4, 5, 6, 19, 55, 74
practices, 7, 16 Muthal, Sanjay, 20, 23
program, 24 Mysore, 74
organizational, 59
roles, 32, 58, 90, 94 National Accounts Statistics, 7
seminars, 12 National Association of Software and
skill(s), 11, 12, 13, 28 Services Companies (NASSCOM), 46
standards, 2 New Delhi, 6, 19, 74
studies, 6 Nicholas Piramal India Ltd. (NPIL), 20, 23
style(s), 8, 13, 34, 36, 76 Noida, 54, 63, 77
success, 8 Nooyi, Indra K., 31, 47
sustainability, 8, 14
Oil and Natural Gas Corporation (ONGC), Schneider Electric Conzerv India, 37, 39
20, 24, 25, 46 Sen, Amartya, 30
onboarding, 74 shareholders, 11
organizational, 14 Shell Companies in India, 37, 38
context, 84 Singh, Virender, 53
directives, 14 small-and medium-sized enterprises (SME),
issues, 36 6, 7, 66
knowledge, 91, 96 social expectations, 41
ladder, 36 social taboos, 32
leaders, 50, 69 SoftBrands India Pvt. Ltd., 20, 24, 27
learning, 6 Speaking of India, 12
levels, 34 stereotypes, 29, 35, 44
perceptions, 36 Storti, Craig, 12, 13
performance, 2 strategic focus, 53
politics, 10 strategic thinking, 8, 59, 91, 92, 93, 94, 95,
internal, 10 96, 97
revenues, 96 strategic vision, 11
structures, 10 succession planning, 9, 26, 75
success, 72, 82, 85 Sundar, Renuka, 20, 27
outsourcing, 55, 57
talent(s), 6, 17, 18, 19, 21, 23, 24, 25, 26,
Pankajakshan, Vijayan, 44, 45, 56, 57, 58, 28, 29, 36, 45, 48, 49, 50, 52, 57, 58, 61,
61, 63, 66 62, 67, 69, 70, 71, 72, 75, 79, 80, 81, 82, 85
Patil, Shrimati Pratibha Devisingh, 32, 43, challenges, 18, 21
86 councils, 26
PepsiCo, Inc., 31, 47 development, 23, 24, 28
Prabhu, Nayana, 57, 69, 77, 78, 79, 80, 84 internal, 23, 60, 83
productivity, 55, 58, 82 management, 8, 15, 26, 43, 49, 51, 53,
Pune, 54, 63, 74, 77 57, 59, 60, 75, 76, 77, 81, 91
initiatives, 63
Quest for Global Dominance (The), 2 process, 26
Quintiles India, 54, 55, 58, 60, 63 strategy/ies, 17, 18, 28
market, 38
Rai, Saagarika, 20, 21 sectors, 61
recruiting, 23, 26, 50, 58 mindset, 69, 70, 72, 73, 78, 79, 80, 82,
tool, 60 84, 85
recruitment, 21, 37, 55, 64-5, 67 definition, 70
Reliance Big Entertainment Pvt. Ltd., 20, 21 drivers, 83
Reliance Group, 27 factors, 79
Reliance Retail Ltd., 20, 22 philosophy, 76
retention, 23, 27, 58, 60, 64-5, 67, 75, 82, recommendations on, 84
83 pipeline(s), 23, 26
drivers, 59, 83 pool(s), 18, 19, 21, 29, 46, 48, 78
ring-fencing, 26 recruitment, 27
RMSI, 51 retention, 82
Russia, 20 space, 18
Tata Consultancy Services (TCS), 46, 51
Sahoo, Bijay, 20, 22 Thomas, T., 42
Index 111
Tier 1 cities, 18, 19, 74, 89 Women Workers in the 21st Century, 31
Tier 2 cities, 19, 23, 41, 74, 89 womens movement, 30
Tier 3 cities, 19, 23, 74, 89 women-friendly organization, creating a, 37
Towers Perrin (Towers Watson), 58, 82 women-friendly workplace, 47
training, 21, 22, 23, 25, 26, 47, 61, 66, 72, Woodard, Nina E., 4
78 work/life balance, 20, 39, 41, 61, 80, 83
transformational activities, 19 workforce profile, 20
turnover, 6, 81 World Economic Forum, 72
World Federation of People (Personnel)
Unilever, 42 Management Associations, 11, 71
United States, 3, 5, 9, 11, 31, 40, 64-5, 77,
90, 92, 95, 96
Uttar Pradesh, 77
value(s)
changes, 2
core, 15, 23, 39
corporate, 50, 51, 54
core, 51, 52
proposition(s), 15, 19, 41, 50, 51, 52,
60, 67
shared, 11
societal, 2, 45
workplace, 5
Varma, Navodita, 37, 40, 41, 42
Varma, Sudhir, 32, 33
Venkattesh, R., 20, 21
Vietnam, 20
Vizag, 74
Vodafone Essar Limited, 20, 25
Weill Cornell Medical College, 37, 38

Wharton School, 11
Wipro, 51
women
earning potential, 38
empowerment, 66
entrepreneurs, 35
executives, 46
managers, 29, 31, 33, 34, 35, 36, 37,
39, 41, 46, 47, 48
key strengths of, 34
professionals, 37, 38, 41, 42, 48
Women CEOs of the Fortune 1000, 31
Women Entrepreneurs in India, 35
Women in Management in the New
Economic Environment, 33, 35, 47
Women Managers in India, 36
Additional
SHRM-Published Books
Assessing External Job Candidates

By Jean M. Phillips and Stanley M. Gully
Assessing Internal Job Candidates

Benchmarking International Assignment Programs:

Assessing Overall Effectiveness
By Roger Herod
The Cultural Fit Factor: Creating an Employment Brand

That Attracts, Retains, and Repels the Right Employees
By Lizz Pellet
The Employers Immigration Compliance Desk Reference

By Gregory Siskind
Expatriate Compensation Strategies: Applying Alternative

Approaches
By Roger Herod
Expatriate Compensation: The Balance Sheet Approach

By Roger Herod
Global Compensation and Benefits: Developing Policies for

Local Nationals
By Roger Herod
HR Competencies: Mastery at the Intersection of People and

Business
By Dave Ulrich, Wayne Brockbank, Dani Johnson, Kurt Sandholtz, and Jon
Younger
Human Resource Essentials: Your Guide to Starting and

Running the HR Function
By Lin Grensing-Pophal
International Assignment Programs: Tackling the Critical

Issues
By Roger Herod
Investing in What Matters: Linking Employees to Business

Outcomes
By Scott P. Mondore and Shane S. Douthitt
Leading with Your Heart: Diversity and Ganas for Inspired

Inclusion
By Cari M. Dominguez and Jude Sotherlund
The Legal Context of Staffing

The Managers Guide to HR: Hiring, Firing, Performance

Evaluations, Documentation, Benefits, and Everything Else
You Need to Know
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Managing Diversity: A Complete Desk Reference &

Planning Guide
By Lee Gardenswartz and Anita Rowe
Managing the International Assignment Process: From

Selection Through Repatriation
By Roger Herod
Reinventing Talent Management: How to Maximize

Performance in the New Marketplace
By William A. Schiemann
Rethinking Retention in Good Times and Bad: Breakthrough

Ideas for Keeping Your Best Workers
By Richard P. Finnegan
Short-Term International Assignments: Implementing

Effective Policies
By Roger Herod
Stop Bullying at Work: Strategies and Tools for HR and

Legal Professionals
By Teresa A. Daniel
Trainers Diversity Source Book

By Jonamay Lambert and Selma Myers

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Corporate

Creating Talent Pipelines, Leadership

Society for Human Resource Management

Strategic Human Resource Management India

Society for Human Resource Management

Society for Human Resource Management, 2010

This publication may not be reproduced, stored in a retrieval system, or transmitted in

Interior and Cover Design: Scott Harris

Library of Congress Cataloging-in-Publication Data

Corporate India and HR management : creating talent pipelines, leadership competencies,

Chapter 1. Building Sustainable Leadership Competency . . . . . . . . . . . 1

Chapter 2. Talent Pipelines and Creative Career Pathways. . . . . . . . . . 17

Chapter 3. Women in Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Chapter 4. Employer Brand in India : A Strategic HR Tool. . . . . . . . . . . 49

Chapter 5. Indian Human Resource Management

Additional SHRM-Published Books . . . . . . . . . . . . . . . . . . . . . . . . . . 112

By Rohini Anand, Ph.D., Senior Vice President and Global Chief

As India becomes an increasingly significant player in todays global

India is a powerful force in todays global marketplace. As the second

Nancy R. Lockwood, M.A., SPHR, GPHR

Indias Changing World

Figure 1.1 India: Demographics, Economy, Culture

India is the second fastest growing major economy in the world,

market in recent years and new employment opportunities many

A View from Within India

in emerging cities and is now rare in large metropolitan cities (such

Rapid Growth and Leadership

known as the unorganized sector, cannot provide a leadership pipeline

Moving Toward Sustainable Leadership

Figure 1.2 Five Trends for Leadership Development

In Developing Business Leaders for 2010, researchers agree that the

Research on Leadership in India

India CEO Study: The Indian Way of Leading Successful

lengthy negotiations and critical media. Regarding growth and innova-

Leadership Challenges for Indian Companies (2006)15

The DNA of Indian Leadership: The Governance,

How to Address HR Challenges Worldwide Through 2015

Figure 1.3 India: Actions for Leadership Development

(2) With assistance from external consultants, develop company-specific leadership

(3) Employ external coaches.

(4) In the company, develop company-specific leadership seminars.

(5) Through external consultants, assess employee leadership skills.

(6) Use assessment centers to assess employee leadership skills.

(7) Develop country-specific leadership seminars in cooperation with business schools.

(10) Develop an internal brick-and-mortar leadership institute.

tion of power) can help mitigate cultural misunderstandings, particularly

In fact, trends indicate that women in India have an increasing role

In todays globally dispersed workplace, it is also important to con-

actionable communication in the workplace, global leaders must

Ms. Carobolante emphasizes that using a culturally neutral

The Next Levels of Leadership

Effective leadership clearly contributes to the success of these orga-

Mr. Dubeys comments illustrate the wide-reaching creativity occur-

Talent Pipelines and Creative

Indias booming economy with an expected average growth rate of 7

Although India is steeped in culture and tradition, it is the countrys

Indias Talent Challenges

attractive from the perspective of infrastructure (power, water, roads,

Indias Major Industry Sectors

Figure 2.1 Companies Interviewed in Major Industry Sectors in India

to spiraling compensation levels and increasing pressure on the bottom

A well-respected Indian retail corporation, Reliance Retail Ltd.

The software sector requires specific talent development tailored