Economic Downturn in Businesses: India vs. United States
When the average person compares India to the United States, he or she only thinks of the basic facts: that India is a third-world country, the United States is a privileged country, and that the difference in wealth and technology is enormous. The United States is supposed to be the more developed and sophisticated country with a wealth of opportunity. On the other hand, India is a poor, dirty, under-educated country with too many people. When looking at these statements, one might ask the question, ‘What could the United States possibly have to learn from India?’ Concerning human resource management, the United States could learn a thing or two from India.
In the United States, during an economic downturn, the top human resource solutions to company survival are layoffs, hiring freezes, restructurings, pay freezes, and pay reductions. With layoffs as the number one option for staying competitive, jobs are being lost all the time for no other reason than budget cuts in certain departments.
In India, companies focus more on restructuring, slowing down pay increases, and hiring freezes. It is important to have a job in India, because it relates not only to one’s well-being, but his or her social standing as well. It is almost unheard of to lose a job in India due to an economic downturn. If you lose your job in India, it’s because of you, not the circumstances surrounding you.
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