Sunday, October 19, 2008

HR Management dilemma in India's Jet Airways.

The sacking of 1900 employees by Jet Airway’s management , and bringing back them on board within forty eight hours after sacking has been most talked about management topic the global corporate HR management strategy.

Jet's management has over reacted to the economic meltdown, a traditional India   have got a very conservative culture, though we are trying adopting the westernized management system, but this is very difficult to practice in India in taking tough decisions particularly with HR related issues.

The typical hire fire  management system is not applicable in Indian corporate culture, if we look back to late Mr. G.D.Birla, Late Mr. J.R.D.Tata they were very conservative in their HR management policy, they believed in a mix of corporate management and as well as family management that was made on the principal of Gandhi's Collective bargaining and mutual trusteeship model.

It may be due to our own ancient Indian Hindu-Buddhist traditional culture, very much like the Japanese management and work culture of life time employment.

Mr. Goel got very emotional and said that it's his family and the family members will sacrifice (Pay cut) and both management and employees will help to bring back the loss making Jet to profit.

Unlike West  we don't have the safety net and stubborn social security; it's basically a rapid transformation from a traditional primary economy to industrial economy to tertiary economy.

Over the last decade in India the tertiary economy (service sectors like BFSI, BPO, KPO, Retails, and Air Taxi Business etc) has grown by leaps and bound, the Indian Gen Y has been absorbed in these sectors.

The transformation and dependence on the tertiary sector has been very rapid and the whole education and training sector in India has focused on these above sectors and are churning out thousands of manpower focusing on this sector. The macro economic management transformation has been too fast.

The real economic tsunami will hit India, if the multi billion US$ outsourcing industry order flow vanishes overnight which is very much possible. One third of revenues of Infosys, TCS, Satyam, Wipro’s  comes from U.S. market over night this business can vanish.

One good thing happens India management can take lessons during the downturns, Indian corporate, policy makers in government, and educational professionals like you, can sit back and introspect what exactly going wrong, with India.

As India is a young country 55% of her population is below 25 years of age, we really have to think back about our education management systems and human capital management and development process.

One more thing lastly the silver lining, which can really bail out India from this turmoil is the domestic demand management.

If the domestic demand can be properly managed the immediate crisis can be neutralized too some extent. 





No comments: