The document summarizes a webinar on managing multicultural issues in HR strategies. It discusses the multicultural aspects of employees, work culture, top management teams, and links to parent companies. It also provides glimpses of real issues around work culture, compensation, and job security. The document then discusses the experience of Maruti Suzuki India Ltd. in managing a balanced mix of Indian and Japanese cultures. It emphasizes the importance of understanding local ground realities and adapting HR policies to the local context for success in India.

1. National HRD Network Webinar on Managing Multi Cultural Issues in HR Strategy July 29, 2009 3:00-4:00 PM IST

2. HR STRATEGY on “ Managing Multi Cultural Issues” S.Y.SIDDIQUI Managing Executive Officer Admn. (HR / FINANCE / IT) Maruti Suzuki India Ltd.

3. Multi Cultural Aspects in HR……. Employee ~ Population Mix Work Culture Impact Mix of the Top Management Team Link with the parent Company~ Collaborator Human Resources policies

4. Multi Cultural Aspects in HR……. Employees ~ Population Mix - In the Indian business situation - Outside India in an overseas location - Social & Cultural habbits ~ food ~ atiquettes - Management & Leadership styles - Adaptability to alien context ~ Culture ~ working

5. Multi Cultural Aspects in HR……. Work Culture of the Company - US Multinational,Japanese,European,Korean or Indian - Joint Venture Company - Core values, Management Style, Key Policies - Systems, Processes & Work Practices - Code of conduct formal & informal

6. Multi Cultural Aspects in HR……. Mix of the Top Management Team - American + Indian - Japanese + Indian - American + European + Indian - All Expatriates - All Indians

7. Multi Cultural Aspects in HR……. Link with the Parent Company ~ Collaborator - In case of an MNC or Joint Venture or 100% owned subsidiary - Influence of company vision, core values & top leadership style - Related impact on business strategy & plan and its link to HR Strategy : Work Culture, HR Policies & Work life

8. Multi Cultural Aspects in HR……. Human Resource Policies - Working days, working hours, leaves & holidays - Organization design & structure - Manpower Planning, Hirings & Induction - Compensation & Benefits management - Performance & Potential Management - Expatriation in & Expatriation out

9. Glimpse of some real issues…. Work Culture Tendency of parent company in case of MNCs to have same work culture in an overseas company Disconnect between parent company culture & the local context e.g. Indian subsidiary Misunderstanding due to lack of sensitization of local social structure & cultural context Impact on the blue collar workers ~ union Morale, motivation, ownership & commitment of the work force

10. Glimpse of 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 and annual salary review Strong link of financial performance of the company to define variable pay & Salary decisions

11. Glimpse of some real issues…. Job Security ~ People Orientation Relocation, No Increase, Salary cut, Pink Slips or Downsizing in case of: Economy/business downtrend or recession Non performance of an employee Acquisitions or mergers of companies In case of restructuring In case of closure of business/plants

12. Managing multi cultural teams Equal participation with ability of sensitive listening Respect for each other Understanding the unique cultural context Inter-personal relations Initiative & Adaptability

13. The MSIL Experience

14. Phase I : (1983; SMC-24%, Govt. of India – 76%) Market Dominance Production Orientation Trade Union perspective Phase II : (1995; SMC-50%, Govt. of India – 50%) Prod., M&S & People Perspective Emergence of Competition Customer Orientation Phase III : (2007; SMC-54.2%, Listed on Stock Exchange) Intense Competition Emphasis on Engg. Capability Marketing Orientation &Talent perspective Maruti Suzuki : Glimpse of Last 25 Years

15. Multi culture in MSIL’s context Maruti Suzuki India Ltd is a classic example of a balanced mix of Indian & Japanese culture & management styles: Japanese Long-term and detailed Planning Process Long term employment relationship High orientation to Systems/Work Practices Strong character & commitment Budgeting Process- Cost Savings/ Reduction Slow/Lengthy Decision Making Focus on Micro business processes Indian Rich in tradition & culture High emotional quotient High versatility ~ adaptability Job security Orientation towards participative style High sense of belongingness Company & family connect

16. MSIL Organization Structure MSIL has evolved the concept of “Paired Leadership Model” Introduction of “Managing Executive Officer System” with focus on: Policy Formulation & Key Decisions at the Board level Execution of Key Policies & Decisions in day to day operations Benefits of the new organization 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

17. MSIL’s Focused Training Interventions A well defined training module has been initiated at middle & senior management level to: Strengthen the bond Address multicultural issues related to both Japanese and Indian employees. The training programs have 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 division.

18. HR Ground Realities :Indian Context Human Resources Management, is strongly influenced by Local Culture, Social Norms & Local Beliefs and Practices Why few MNCs fail to be successful in India??? 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 successfully managed in any “Japanese” or “American” or “Korean” or “European” way

19. HR Ground Realities :Indian Context HR policies, systems & 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 and flexible management approach can help in establishing a strong link & facilitate desired results

20. HR Ground Realities :Indian Context Maruti Suzuki 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 Indian Government thus decorated Chairman O. Suzuki with – PADMA VIBHUSHAN – the highest Indian honor, in 2007

21. To sum up… Managing multi culture initiatives help an Organization keep a competitive human resources advantage thru: Improved corporate culture Improved employee morale & higher retention of employees Enabling the organization to move into emerging markets Decreased interpersonal conflict among employees Increased productivity, innovation & brand identity “ DEVELOPING A GLOBAL CORPORATE, A GLOBAL CULTURE & A GLOBAL PEOPLE & TALENT POTENTIAL”

22. YOU CAN COUNT ON US… PLEASE BUY ONLY MARUTI CARS THANK YOU!!

23. Thank you for your participation For Question & Feedback please email at ankur@hrtalks.in Thanks