Indian HR Needs A Mind And Measure Of Its Own

The deep influence of western management theories is deeply entrenched in Indian corporates, especially when it comes to people, processes and performance. HR professionals and business leaders frequently turn to global experts and best-selling books from the West for insights. This inclination is understandable—western universities have fostered rich research ecosystems and corporates there collaborate extensively with academia.

As a result, much of the HR literature that Indian professionals consume and those people practices that corporates adopt comes from these sources. However, this over-reliance on foreign expertise may be limiting the development of a distinctly Indian HR approach, which could more effectively address the unique characteristics of Indian businesses and work cultures.

India's business environment differs significantly from that of western countries. Approximately 81% of Indian businesses, from large conglomerates to mid-sized businesses to the micro, small and medium enterprises, are family-run, with active involvement of promoters across the business ecosystem. The management dynamics within all these firms have commonality of familial ties, long-term legacies and generational considerations. Decisions around management styles, succession, leadership, and even hiring are often influenced by those priorities. Western HR frameworks, designed for more corporate, shareholder-driven models, can overlook these nuances.

While global management practices certainly offer value, there is a growing need to complement them with insights rooted in Indian experiences. For example, supporting family-related benefits, such as parental leave policies for both parents, extended family healthcare and flexible working hours, or community-centric initiatives, such as employee well-being programmes, are not just globally aligned but well-rooted to the Indian ethos, and companies that have implemented these culturally and not just as events have benefitted in their engagement and other metrics.

Another significant difference lies in the socio-economic structure of Indian households. In many western countries, children typically leave their family homes by the age of 18, becoming financially independent early on. In India, by contrast, it is common for young adults to remain with their families well into their late 20s or early 30s, contributing little in general to household finances and bearing the weight of family expectations. This extended family structure profoundly affects how employees approach work, career stability and job loss.

For instance, the financial and emotional impact of losing a job is often more pronounced than in western countries, in the middle management and above, as those individuals are often the primary breadwinner. Yet we see a far more casual approach in the lower hierarchy (younger age) in India for the reason that many of them are not primary breadwinners or need to fend for themselves, unlike the other economies. This alters the seriousness with which youngsters look at job security, long-term employment, and a sense of belonging to the organisation.

One of the primary issues is the gap in incentives—corporates often prioritise immediate, bottom-line-driven results, while academia tends to focus on long-term, theoretical research that may not offer practical solutions for the industry's pressing challenges. Additionally, Indian academic institutions often lack robust funding and resources for research in fields like HR and management, limiting their ability to produce insights that are directly applicable to business needs.

Another significant barrier is the lack of active engagement between academia and industry through consulting work. Unlike in the West, where many professors consult for corporates, bridging theory and industrial reality, Indian academicians rarely participate in such collaborations. This further deepens the disconnect, as academic research remains largely isolated from the practical concerns of businesses, leaving valuable insights underutilised in the corporate sector.

Yet, Indian HR practices are still heavily influenced by global models that may not entirely resonate with this context. Leadership development programmes, performance management systems, and employee engagement strategies imported from abroad are often implemented without sufficient adaptation to local realities.

Take employee engagement, for instance. Models commonly used in India are derived from western frameworks, which often emphasise autonomy, personal growth, and mobility. However, these factors may not hold the same weight in India, where job stability, relationships with peers and managers, and aggressive career development for some cohorts can be more important for retaining talent. This explains why many of the traditional Indian companies have employees working "loyally" over many years, aligned to the promoters' vision, because what they are seeking is not necessarily the textbook definition of talent management and engagement, but bonds and connections that go deeper, often at the cost of compensation and pace of progression. 

The challenge, therefore, is not to dismiss global expertise but to balance it with an Indian perspective. India's workforce is diverse, comprising highly skilled professionals in urban centres and millions of workers in the informal economy. A one-size-fits-all approach, especially one borrowed from abroad, may not always deliver the best results. HR leaders in India have the opportunity to develop frameworks that are reflective of the country's unique business environment, cultural dynamics, and workforce expectations.

The success of India's businesses—whether family-owned or otherwise—depends on HR practices that are both globally informed and locally relevant. Are there signs of progress, even in small measure? Very few Indian academic institutions are investing in research that addresses local business and workforce challenges. Some Indian corporates are also beginning to tailor their HR practices to better align with the needs of their employees.

However, much more can be done. Theoretically, everyone agrees and yet actually walks the talk—that actual hands-on collaboration between businesses and local academic institutions could lead to the development of empirical research that provides insights specific to India. Additionally, fostering a culture of knowledge sharing among Indian HR professionals can help create a repository of best practices that are rooted in the Indian context. Despite all the functional HR clubs and associations, very few seem to have moved the needle when it comes to seeing business impact.

One of the biggest breakthroughs corporate India and academia could offer is the creation of a dedicated research ecosystem focused on people management, tailored specifically to the Indian context. Establishing a formalised 'Indian HR Think Tank'—a consortium of academic researchers, HR professionals and industry leaders—could generate deep insights on workforce dynamics, employee engagement, and leadership development in Indian firms.

Such an initiative must also prioritise empirical research based on Indian demographics, culture and business structures, helping to identify what truly drives productivity, job satisfaction and loyalty in Indian employees. To bring this vision to life, Indian businesses must actively invest in these research initiatives, not just through funding but by integrating research findings into their own HR practices and sharing anonymised data into that HR think tank.

To scale and create lasting impact, Indian businesses must go beyond global models and embrace India-specific HR ideas that resonate with our unique cultural and business landscape—because it is the people, grounded in these local realities, who truly make businesses thrive. Only then can India boast of a global bestseller HR book from India!

Srinath Sridharan is a policy researcher and corporate adviser.

Bhawana Mishra is the founder and chief executive officer of BasilTree Consulting.

The views expressed here are those of the authors, and do not necessarily represent the views of NDTV Profit or its editorial team.