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Cross cultural issues in hr

Cross cultural issues in hr






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    Cross cultural issues in hr Cross cultural issues in hr Presentation Transcript

    • Cross Cultural Issues in HR
      MISL chapter
      Handling the cross-cultural issues within the organization
    • Multi-cultural aspects in HR
      Human Resource Policies
      Work Culture Impact
      Mix of the top-tier management
      Relations with umbrella organization
      Working-population Mix
    • Aspects –
      HR Policies
      Working Days, Working Hours, Leaves & Holidays
      Conglomerate design & structure
      Manpower cost/planning/hiring/induction
      Benefits management & compensation
      Performance & Potential Management
      Expatriation in & out
      PF & miscellaneous fund raising
    • Aspects –
      Work Culture of the organization
      Multinational – USA/India/UAE/Japanese/Korean/European
      Core Values, key policies, management style
      System, Processes & Work Practices
      Joint Venture or chained
      Code of Conduct
    • Aspects –
      Mix in Top-Management
      All Expats
      All Indians
    • Aspects –
      Relation to the umbrella organization
      In case of joint venture, MNC or 100% owned susidary
      Influence of company vision, core values, company work culture & top leadership style
      Related Impact on business strategy & plan and its link to HR strategy: Work Culture, HR Policies & Work life
    • Aspects –
      Employee population mix
      Within India business situation
      Outside India business situation
      Social & cultural habits
      Foods & Etiquettes
      Management & leadership style
      Adaptation to alien-context – culture - working
    • Some real issues:
      Work Culture
      Tendency of parent company in case of MNCs to have same work culture in an overseas company
      Disconnect between umbrella company culture & local context. Eg: Indian Subsidiary
      Misunderstanding due to lack of sensitization of local & social structure & cultural context
      Impact of blue collar workers – unions
      Morale, motivation, ownership & commitment of the work force
    • Some real issues:
      Compensation & Benefits
      Relatively low annual salary increase compared to Indian Context
      Simple & compact salary structure without any consideration to tax savings etc.
      High focus on variable Pay & bonuses and cash element rather than fixed salary & long term benefits
      Clear link of individual performance to variable pay & annual salary review
      Strong link of financial performance of the company to define variable pay & salary decision
    • Some real issues:
      Job Security – People Orientation
      Relocation, No increase, salary cut, pink slips, bench or downsizing in case of:
      Economic downturn
      Acquisitions & Mergers of companies
      Non-performance of employee
      In case of restructuring
      In case of closure of business-plants/locations
    • Handling Multi-cultural teams
      Respect for each-other
      Inter-personal relations
      Initiative & Adaptability
      Understanding of unique cultural context
      Equal participation
      Ability of sensitive listening
    • The MISL Chapter
      At Maruti Suzuki India Ltd.
      Please elaborate with basic structure @ Maruti.
    • Glimpse of 25 years
    • Multi-cultural part
      MISL is a classy example of balanced mix of Indian & Japanese culture in management styles:
    • Conglomerate structure
      Evolved a process of “Paired Leadership Model”
      Introduction of “Managing Executive Officer System” with focus on:
      Policy Formulation & Key Decisions at board level
      Execution of Key Policies & Decisions in day to day operations
      Benefits of New organizational structure:
      Improved clarity & focus on key management responsibilities
      Harmonization, leading to reduced compartmentalization
      Improved coordination across the functions
      Improved speed in decision making
      Development & career enhancement process of Indian Professionals
    • MISL’s training interventions
      A well defined training module has been initiated at middle & senior management level to:
      Strengthen the bond
      Address multi-cultural issues related to both Japanese & Indian employees
      The training program has been initiated with focus on:
      Creating team synergy
      Promoting culture of innovation
      Enhancing risk taking abilities
      Developing cultural sensitivity
      Language training has been brought in to bridge the language barrier; Specialized interpreters have been roped in to facilitate better understanding
      Effective communication across the company on regular basis across all levels divison
    • HR Ground Realities: Indian Context
      HRM, is strongly influenced by:
      Local Culture
      Social Norms
      Local beliefs & practices
      Frequent failure of some MNCs:
      A common mistake: overlooking the local ground realities under the unconscious bias of their parent Corporate Culture, Policies & Practices
      People management in India or any other alien overseas operation cannot be successful managed in any “Japanese” or “American” or “Korean” or “Arab” or “European” way
    • HR Ground realities: Indian Context
      HR Policies, system & practices based on the culture & core values of the parent company may or may not work in the Indian Context
      Key to success lies in embracing flexibility, understanding, acceptance, respect & adaptability to the local ground realities
      Collaborative process of gradual change through trust, mutual exchange, training & flexible management approach can help in establishing a strong link & facilitate desired results
    • HR Ground realities: Indian Context
      Maruti is the most successful & live example of such business success in India – The Suzuki Way – credit to Chairman O. Suzuki & the SMC Top Management Team.
      The team Govt. thus decorated Chairman O. Suzuki with – PADMA VIBHUSHAN – the highest Indian honor in year 2007
    • Concluding…
      Managing multi-cultural initiatives help an Organization keep a competitive HR advantage through:
      Improved corporate culture
      Improved employee morale & higher retention of employee
      Enabling the organization to move into emerging markets
      Decreased interpersonal conflict among employees
      Increased productivity, innovation & brand identity
    • Concluding…