Strategic HR: Illusion or Reality?

The liberalization policy and globalization have hit the Indian economy in a big way. The Industrial sector was one the sectors which have transformed significantly. The increase numbers of private players and arrival of multinationals created the environment of intense competition. Each one wants to be ahead of others using advance technology, cost effective practices and strategic HR policies for managing and maintaining efficient work force.

The current paper aims at describing status of HR in Indian industries, the need to become strategic and the evolution of the concept of strategic HR and its relevance in the current world of work. Secondly, the paper also tries to critically evaluate and analyses the impact of these strategic HR practices on industrial relations over the year, and the challenges that it brought towards the existence of IR in India.

The paper draws on the articles, books written and studies done across India and in nearly similar cultural contexts that is available. The paper holds value in the light of the fact that it discusses the importance of strategic HR post liberalization and how the new practices of strategic HR have sidelined the elements of IR and pushed the trade unions and practices of collective bargaining and on the back foot.