Abstract
The managerial philosophy of a company is generally based upon the top management's assumptions about people working in the organization. It reflects the attitude of the top management towards the human resources of an organization. Managerial philosophies of companies are embedded in the society. McGregor (1960) has labelled these managerial philosophies as ‘Theory X and Theory Y.’
This paper is an attempt to identify the relationship between human resource (HR) practices and the philosophy of management of the Indian business organizations. For this, the different variables of HR practices were studied and the management's philosophy was identified by measuring beliefs of top management about employees in the organizations. The sample for the study consisted of 95 respondents from two private sector organizations and 119 respondents from two public sector organizations.
The findings of the study indicate that the variables of HR practices (planning, recruitment, and selection) were highly but negatively related to the philosophy of management in the private sector organizations. This meant that the Indian organizations were practising traditional philosophy of management in such organizations. The prevalence of traditional managerial philosophy focusing on managerial control has always dominated the managerial community in the sense that it is more prevalent and is more ‘tightly’ linked to managerial practice. As new managerial ideologies evolved, the older ones “never disappeared; instead, images and practices central to each were gradually institutionalized” (Barley and Kunda, 1992).
The philosophy of management showed a blurred picture in the public sector organizations. Though the top management's views and balance sheet emphasized the belief of the organization towards Theory Y, the analysed responses proved that management philosophy was not clear to managers working in these organizations.
In fact, the Indian public sector organizations started as welfare organizations. However, the impact of market economy has led to a competitive environment. Though the public sector organizations have started realizing the impact of competition, it is difficult for them to understand when they lost their focus on the managerial philosophy.
The following key issues emerged from the study:
Organizations will have to design managerial philosophy which is sensitive to human existence. The managerial philosophy in the organization has an impact on the organizations of the future. HR concepts that get packaged along with modern managerial philosophy are likely to revolutionize the workplace. The bottom line is that people want to be cared for and respected.
On their part, organizations want commitment and integrity. A successful combination of committed people and a benevolent organization could well be the way for organizations in this competitive environment in India.