Cross cultural issues in hr


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Cross cultural issues in hr

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