Cross Culture


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Cross Culture

  1. 1. INTRODUCTIONHRM strategy is determined primarily by organizational strategy.However the environmental factors that shape the HRM planningmust be considered by the managers and the planners. They mustcontinue to monitor the environment to get the utmost benefits from its operations. All the factors that are influencing an organization externally or internally must be considered by the managers very seriously. Let us understand it by dividing the term into its subparts. • Human – people, us • Resource – assets/costs for organizations • Management – co-ordination and control to achieve set goals But humans, unlike other resources in the context of work and management, cause problems
  2. 2. HRM IN INDIA• HRM across the world adopts strategies and policies as per the organizational objectives. However in India strategies and policies adopted by HR have a tendency to revolve around two aspects.
  3. 3. HR IN INDIA
  4. 4. • Primary Political Environment• There are three institutions which together constitute the primary political environment.• They are i) the legislature, ii) the executive, and iii) the judiciary.• i) The legislature - The legislature also called Parliament at central level and Assembly at the state level is the law making body. The govt. does the job of implementing the laws and policies at macro level throughout a country.• ii) The executive – The executive popularly known as the govt. is the law- implementing body. The legislature decides and the executive acts.• iii) The judiciary – Above these two, is the judiciary which has the role of a watchdog. The main function of the judiciary is to ensure that both the legislature and the executive work within the confines of the constitution and in public interest.• To be specific, HR planning, recruitment and selection, placement, Training and development, remuneration, employee relations and Separation are conditioned by constitutional provisions.
  5. 5. • Secondary Political Environment• i) Globalization – Another trend is emerging is the globalization of the world of human civilization. Globalization affects sovereignty, prosperity, jobs, wages, and social legislations. Companies conducting their business all over the world facing HR challenges in managing their employees of different backgrounds. So, globalization influences the whole HRM strategy at a certain level.
  6. 6. •• CASE STUDY••• CASE STUDY Case Study: HR Problems at Jet Airways: Coping with Turbulent Times in the Indian Avi Case Study: HR Problems at Jet Airways: Coping with Turbulent Times in the Indian Aviation Industry Abstract: The case is about the retrenchment drama that unfolded in one of India’s leading aviation companies, Jet Airways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties. Jet’s chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive. Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet. We have created high morale for our people. Our employees believe in the company. They believe it’s their company. There’s a feeling among employees that if the company makes money, it’s their money and if the company loses money, that’s their loss." Naresh Goyal, Chairman, Jet Airways (India) Limited, in July 2007.
  7. 7. • "While the mishandling of the Jet Airways sacking and reinstatement of 1,900 employees was an HR and PR disaster, the larger implications of what happened are also worth considering. It is not just that the chairman of India’s most successful airline became the butt of jokes, it is also a question of what he knew, when he knew it, and who did the bungling." - Anjuli Bargava, Columnist, Business Standard, October, 2008. "The sackings were completely illegal. There was no notice nor was government’s permission taken to sack 800 employees. Perhaps they realized their folly and decided to take these employees back. The matter would have landed in the court otherwise." - Anand Pujari, Labour lawyer, SI Joshi & Co., in October 2008 ISSUES » Analyze the HR problems faced by Jet Airways in 2008. » Discuss various concepts related to hiring, firing, and compensation management. » Understand the rationale behind Jet’s decision to lay-off employees and the reason’s behind its later decision to take back the sacked employees. » Understand the importance of communication in an organization and analyze whether there were any loopholes in Jet’s organizational communication network. » Understand the rationale behind the pay cuts initiated at the company. » Understand how environmental variables could affect a company’s HR policies.
  8. 8. • Introduction: In October 2008, Jet Airways (India) Limited (Jet), one of India’s leading domestic airlines, decided to lay off more than 1,000 employees to streamline its operations.5 The retrenchment was the second phase of its trimming operations. The first phase, which took place a day earlier, saw the airline showing the door to 850 cabin crew members6. The second phase of retrenchment included employees from all operations - cabin crew, pilots, ground staff, airport services staff, and employees from management departments. The sudden decision not only took the employees by surprise but also caused alarm in the Indian aviation sector. Amidst great furor and opposition by various organizations and political parties, Naresh Goyal (Goyal), chairman of Jet, reinstated the employees a day later amidst great emotional drama. He was quoted as saying he had been appalled by the retrenchments of his employees, which he claimed, he had come to know only through media reports. He added that he would "not be able to live as long as he lives" with the tough decision his management had taken and clarified that he was taking back the employees as they were "family to him and as head of the family he would take care of them. A month later - in November 2008, Jet announced that it would consider serious salary cuts for its staff to handle the aviation crisis. While many industry analysts were surprised by the turn of events that had led to the reinstatement of the sacked employees, they opined that Jet had been forced to take drastic decisions such as laying off employees or initiating pay cuts because of the turbulent phase through which the aviation industry was passing. In September 2008, the International Air Transport Association (IATA) had predicted that world over the aviation industry would lose about US$5.2 billion based on an average jet fuel price of US$140 . The rise in fuel prices had pushed the fuel bills of the aviation industry to US$186 billion by the end of the year 2008. Background Note: Jet, with its headquarters in Mumbai, India, began as an air taxi operator in April 1992 and started its commercial operations a year later, in 1993. It operated with just 24 flights across 12 destinations initially, but showed exceptional growth with more than 357 daily flights to about 62 domestic and international destinations in 2008. It was first listed in the National Stock Exchange (NSE) in the year 2005. As of June 2008, it operated over 370 daily flights to about 68 destinations both in India and abroad including San Francisco, New York,Toronto, Singapore, Brussels, London (Heathrow), Hong Kong, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Abu Dhabi, Dubai, etc...
  9. 9. • HR Issues, Management and Decision Making at Jet According to the company, Jet paid the utmost importance to the composition of its senior management and its human resources with emphasis on teamwork as a key success factor. Being in the service-based industry, Jet gave priority to high quality, professional service to its customers... The Retrenchment Drama Unfolds The retrenchment drama unfolded on October 16, 2008, when Jet announced that it would lay off nearly 1,100 of its staff a day after it had already laid off around 800 of its cabin crew members. The second phase of 1,100 employees included those from departments like management, flight attendants, and the cockpit crew. The company decided to lay off these employees with no prior notice but offered them a month’s remuneration... Reasons for Retrenchment The growing challenges in the Indian aviation industry were the main reason for the lay offs at Jet, according to the company and other industry analysts. Turbulent Times for the Indian Aviation Industry The Indian aviation industry was one of the fastest growing aviation industries in the world. The Air Corporations (Transfer of Undertakings and Repeal) Act 1994 opened the Indian skies up to private operators. Apart from government-owned airlines, the aviation industry was flooded with private operators and low cost carriers... The Debate Leading to the Reinstatement of Employees Jet received criticism from several quarters for retrenching its employees. Many of its employees protested against the decision to oust them without prior notice. Most of them had paid substantial amounts to receive training at major Aviation Training institutes... Massive Salary Cuts Follow In the last week of November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff. The company planned a 5 percent to 10 percent cut in the salary of top officials who drew a salary above Rs. 75,000...
  10. 10. EFFECTS OF RELIGION ON HRM• While the rules surrounding religious discrimination in the workplace are fairly obvious to most people, dealing with religion in the workplace environment at large can be a much more difficult situation to contain and control.• Religious expression is growing in the workplace. A Gallup poll found that 28 percent of people said open religious expression should be encouraged in the workplace, while another 50 percent said it should be tolerated.• But where do you draw the line? How do you deal with an employee who teases a coworker about religion or a secretary that encourages others to embrace her religion and abandon their own?
  11. 11. • Hostile Environments• People who take steps to show their religious beliefs in the workplace may be the subject of teasing or derisive comments from their coworkers. The Anti-Discrimination League says that occasional teasing and isolated incidents are not discrimination, and dont constitute religious harassment.• While you arent liable if any employee is teased or taunted by his or her coworkers, the ADL says you become legally liable if you or another supervisor know about the situation and either encourage it or do nothing to stop it.• If you do make every effort to stop the situation, such as speaking with the offending parties and moving desks or offices, then the ADL says you likely wont be held responsible.• Company-sponsored Religion• While many companies work to keep religion out of the workplace, others take extra steps to bring it into the office.• Prayer groups and other religious gatherings are perfectly acceptable in the workplace, insofar as they are completely voluntary, and there are no work-related consequences based on them. Some companies have even hired a company chaplain.• While firing or passing someone over for a promotion because they didnt attend a prayer group is an obvious case of religious discrimination, there are also much less clear-cut examples. A company that gives its employees extra time off for attending a religious service is preventing other employees from gaining that same advantage, and is also guilty of religious discrimination.
  12. 12. • Office missionaries• Another situation that can cause you to lose sleep is if an employee is openly preaching his or her faith and attempting to get you or other coworkers to convert. The members of some faiths, such as Seventh-day Adventists, are required to preach their faith to others. But there is a point where you have to draw the line between religious expression and religious harassment.• The law gives employees the right to a certain degree of religious expression, but not free reign to try to spread their religion to everyone who passes. The ADL says that you can stop an employees religious expression when customers or others could misconstrue that religion as the view of the company.• You are also allowed to stop an employee from talking about his or her faith if it is having a significant impact on the work of others. Business Management Daily described the case of one Hindu worker who spent hours every day listening to his boss trying to convert him to Christianity.• If a situation is affecting others, again, you should take whatever steps you can to try to resolve the situation easily before taking any more drastic actions. If an overly religious worker continues to harass others in the office, then its not out of line to let him or her go.• Religion and the workplace dont always need to be separate entities, and there is room for a great deal of religious expression. But when that expression goes too far, its time to step in.
  13. 13. HYPOTHETICAL CASE STUDY• Diversified India tops the list of festive holidays .
  14. 14. • Problems Faced By HR• Globalisation has led India to be a hub for MNCs• No national holiday as the processes have to remain working• HR strives to maintain workforce balance
  15. 15. Solution• Skeletol staffing• incentives