This document discusses cross-cultural issues in human resources management at Maruti Suzuki India Limited (MISL). It outlines MISL's approach to managing a multicultural workforce, including implementing a "paired leadership model" and specialized training programs. It emphasizes the importance of respecting local cultural contexts and ground realities when establishing HR policies in another country. MISL is presented as a successful example of balancing Japanese and Indian cultures to achieve business success in India.

1. Cross Cultural Issues in HR MISL chapter Handling the cross-cultural issues within the organization

2. Multi-cultural aspects in HR Human Resource Policies Work Culture Impact Mix of the top-tier management Relations with umbrella organization Working-population Mix

3. 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

4. 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 Formal Informal

5. Aspects – Mix in Top-Management American+Indian Britisher+ArabNational+Indian Japanese+Indian American+Korean+Indian All Expats All Indians

6. 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

7. 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

8. 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

9. 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

10. 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

11. Handling Multi-cultural teams Respect for each-other Inter-personal relations Initiative & Adaptability Understanding of unique cultural context Equal participation Ability of sensitive listening

12. The MISL Chapter At Maruti Suzuki India Ltd. Please elaborate with basic structure @ Maruti.

13. Glimpse of 25 years

14. Multi-cultural part MISL is a classy example of balanced mix of Indian & Japanese culture in management styles:

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Concluding…