ABSTRACT:In today’s competitive businessenvironment, Organizational Innovation is an essential aspect that requiresattention. HR practices have always played an important role in corporate strategy,but with changing times, well-organized HR practices is needed now, more thanever. HRM plays a major role in churning out new strategies that are bettersuited to the dynamic setting of the business environment. Sometimes, HRM isnot a mere part of the strategy but the very factor that defines the strategyitself. To remain competitive in today’s markets, Indian and Foreign MNCs arerequired to revamp and upgrade their HR practices. This paper discusses aboutthe innovative strategies of Indian and Foreign MNCs and the HR practicesimplemented by them.While the basics of any HR practiceare similar, companies differ in their HR practices only in theirimplementation and operations of the same. Companies change their HR practicesaccording to the cultural, political, economic and technological environment ofthe countries in which they are operating.
One of the more recent drivingfactors for the standards of HR policies is Globalization. No longer are HRpractices a matter of trend, but a matter of survival for companies. Moreover,competitive pressures have forced companies to be proactive and diagnose HRproblems and overcome them through new HR strategies. A key difference betweenIndian and Foreign MNCs is the emphasis on alignments between parent andsubsidiary companies; something that Indian MNCs are not as concerned about. As of the present time, the IndianMNCs put a greater emphasis on managing performance from within and thus, focuson getting their culture building practices right. In contrast, Foreign MNCsare more focused on ensuring a greater synergy between the parent andsubsidiary companies and having standardized practices in place. Foreign MNCsare also conscious of the cost involved and the performance expected from theimplementation of a strategy, unlike their Indian counterparts. A discussion of the findings,limitations, and implications are provided.
INTRODUCTION:Strategichuman resource management is the process of linking the human resource functionwith the strategic objectives of the organization to improve performance.Strategic human resource management focuses on the overall HR strategiesadopted by business units and companies, according to John Bratton; it is athought that integrates traditional human resource management activities withina firm’s overall strategic planning and implementation, thus called strategichuman resource management. Strategic human resource management is concernedwith all those activities that affect the behaviour of individuals in theirefforts to formulate and implement the strategic needs of the business. Thepattern of planned human resource deployments and activities intended to enablethe firm to attain its goals. There is an explicit linkage between HR policyand practices and overall organizational strategic aims and the organizationalenvironment.
? Supportthe Management with strategic policies and implementation of new policies, thecompany requires.? Asa company has many competitors, creating and maintaining competitive advantageto the company is essential to have the position required.? Innovationand upgradation of the responsiveness is subject to improvised potential of thecompany.? Increasein number of feasible strategic options available is the added advantage to thecompany in various scenarios of management.? Participatingin strategic planning is the essential factor towards the Contributionof goal accomplishment and survival of the company.? strategic directions of the company as anequally entitled member of top management influences majority of the company’smanagement.? Improvethe cordial relationship between HR managers and line managers to maintain theethicality and smooth functioning of the organization.
? Companiesshould have a constant and regular process of hiring, transferring andpromotions in the organisation.? Expansion in market and enter into new market,there should be changes in skills and employee perspective.? Structured compensation as an incentive toachieve goals of the organization and it’s members.? ImprovingTraining based on the requirement of the company suitable for growth ofbusiness. OBJECTIVE:· Toanalyse the HR strategies implemented by the Indian and Foreign MNCs which havemade them the biggest companies.· Tofocus on HR practices that are related to performance and growth in Indian andForeign MNCs. METHODOGY:This paperis undergone through secondary data research for six Indian and six ForeignMNCs referring number of articles, research papers, online journals, magazines,books and company websites. The newconcept of HRM calls for segmenting the workforce according to differentcriteria like age, educational background and business background.
Policies ofthe company need to be tailor-made according to the needs of each group, tooptimally utilize the resources offered by each segment. There are many hurdlescoming in the way of companies to achieve their goals. For this, they need totake some strategic initiatives which need to be fulfilled by HR practices bysatisfying employees. Human satisfaction leads to achieve organizational goals.
Indian corporates have been late movers, though fast changing to competitivepressures. Foreign MNCs focus on mind recall and cost effectiveness. HRMstrategies should be adopted to boost morale of employees and high retention ofskilled employees. Table 1provides a summary of the strategic initiatives and innovative HRM practices ofIndian MNCs and Table 2 summarizes for foreign MNCs.Table 1: Innovative HR strategicpractices adopted by Indian MNCs Company Industry Strategic Initiatives HR practices Infosys Information Technology · Accept the challenges of globalization · Powered by intellect and driven by values · Culture of ethics, performance, meritocracy · Creation and sharing of wealth · Employee-driven campus programs like “Infosys Toastmasters Club” to provide support to the employees · Construction of a leadership institute to foster the qualities of leadership within the employees · Leadership through INSTEP where three to six-month internships are given to students from across the globe TATA Steel · Global coordination and control · Building capabilities for customer centricity · Managing workforce diversity and embracing inclusion · Manager Assimilation Program · E-learning initiatives available for employees (Gyan Jyoti) · Employee Induction Programs like HELLO (Helping employees launch and learn in the organization) and NEST (Nurturing engagement with satisfaction and trust) Hindustan Unilever Ltd.
FMCG · Increase penetration level as well as per capita consumption · Increase productivity and quality · Reduce attrition · 360-degree performance appraisal for performance management · Talent identification and Talent development strategy · Engagement assessment Table 2:Innovative HR strategic practices adopted by Foreign MNCs Company Industry Strategic Initiatives HR practices Ford Automobile · People orientation · Improve quality · Launch new models for diverse markets · Reduce costs and increase operating efficiencies · Align employee attitude with corporate culture · Phased retirement program · Cafeteria Planning · Productivity campaigns · Management development program to enhance the capacity of managers to think strategically, manage their time effectively and improve work methods and quality · Implementing healthy communication through the removal of emotion and reliance on data Google Information Technology · Support system with data · Crowdsourcing-product strategy · Aggressive usage of data and testing to support ideas · Attract best talent, develop happier and more productive employees · Hiring through People operation · Relaxation area with entertainment · Innovative technology tools that enable all aspects of the HR function · Learning and leadership development program · Employees allowed to bring dogs to work · Utilize people with distinctive capabilities to create unsurpassed Competence in an area IBM Machines · Demonstrate and sustain respect · Commitment to workforce diversity · To be known for the greatest respect for the individual · Commitment to the advancement of women in the workplace · Minority recruiting/people with disabilities IBM’s Project Able · E-learning programs like Basic Blue, One Voice and Coaching Simulator were introduced to guide employees for a variety of challenging management · situations · Flexibility/telecommunicating/leave of absence programs · Blended approach to learning · Global women leaders task force was formed and expanded its technology camps for girls’ summer program to encourage for technical degree ANALYSIS:Understandingthe market and strategic innovations is essential to survive in the competitiveenvironment. Therefore, the companies should focus on generating new ideaswhich will lead to new strategies and this will eventually lead to inventionsand the practices should be implemented accordingly. And these practices will resultin the growth and the development of employees and the organisation. With theincreased number of employees, the employee turnover has increased drastically.
It is seen that innovative HR strategies have a positive relationship withperformance and growth of the Indian and Foreign MNCs.One of the reasonbehind the success of Infosys were its innovative HR strategies such as”Infosys Toastmasters Club” and its decisions to accept challenges in thechanging economic, demographic and cultural environments.TATA hiredexternal consultant McKinsey & Co.
which started Performance Ethnic Programto promote young dynamic personnel with management programs. To buildconfidence within the employees, Google cultivates a taste of failure andemployees are encouraged so that they can try again and again. It also givesthem 20% of the time towards employee’s independent projects, CSR activities,parties, game rooms, reward system and the available resources for learning anyfour foreign languages. Google has been awarded a high-performance company andsuperb place to work. Ford hasbeen named a leader in HR practice by People Management consistently over theyears.FINDINGS AND SUGGESTIONS:Due toglobalisation and the changing economic, demographic and legal landscapes, itis essential for the companies to analyse what constitutes an effective HR strategyand how it may be best practiced is a challenge today. Due to competitorpressure, the Indian companies are not in an advantaged position as they failedto adopt to such changes.
While, Foreign MNCs are trying hard to do business inIndia, Indian companies must focus on Information technologies and thepractices to retain and motivate employees to reach the peak of the world. LIMITATIONS:This studyhas been limited to a small sample size and is restricted to a few sectors. So,generalizations cannot be made.