Question

Discuss the functions of hrm in retail organizations.

Answer 1

India is witnessing strong growth prospects in organized retailing with foreign retail players willing to make investment in the sub continent. India, being the country with the second most-population, has immense scope for retail expansion as along with time, urbanization and consumerism has also been increasing. AT Kearney’s 2005 Global Retail Development Index termed India as “The most compelling opportunity for retailers.1” Further, India‘s GDP has also been growing at fast rate as it continued to be the second fastest growing economy in the world after China and as the income of the country increases, demand for goods also increases because there is positive relation between demand and income. Initially, India was conservative regarding FDI; it imposed restriction on foreign companies to limit their share in equity capital of their Indian subsidiaries but over the time Government of India gradually liberalized foreign investment in various sectors. Recently in 2011, India permitted 100% FDI in single brand retail and in 2012, 51% FDI permitted in multi brand retail. In this paper, the author will analyze the impact of such decisions on the Retail sector in India with special emphasis on the activities of Wal-Mart in the retail sector.