Managment of H.R in India

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Amity University

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Summer Project
Human Resource Formats and Workflow of Multinational Corporation (MNC’s) In India. With Case Studies.

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PREFACE

Preface

This project is made during the summer break of 2011, and it is a result of one month hard work. During writing this project I have increased our knowledge within the area of international human resource management and what kind of difficulties MNCs face in India within this area and how they overcome these problems. Further, I have gained deeper understanding about the cross-cultural issues that occur when MNCs operate in India.

I would like to thank the people who made it possible to conduct this project. First, I would like to thank my faculty guide, for the guidelines throughout the thesis and his valuable advices. Furthermore, I would like to thank our respondents Mr Mahesh Mishra – WM-data, and Mr Sumit Sinha – Ericsson, for their co-operation and great help in order to gather our data.

Amity School of Business
July 2011

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Parthesh Pandey

ABSTRACT

Abstract

The purpose of this study is to provide a better understanding of the IHRM issues encountered by MNCs in India. Major IHRM problems within a cross cultural context of foreign markets and ways of overcoming them are discussed. A qualitative case study approach is also used to collect data from two major MNCs with operations in India: WM Data and Ericsson. Findings show that a major problem faced by MNCs in India is cross cultural communication. Findings also show that the two companies’ differing views on cultural diversity greatly influence the HRM measures they adopt. With regard to policies and practices while the two MNCs’ HRM planning and use of training programs for India often differ their compensation packages for employees are generally similar.

TABLE OF CONTENTS

TABLE OF CONTENTS

1 INTRODUCTION................................................................................................................... 1 1.1 Background ...................................................................................................................... 1 1.1.1 Challenges of Managing International Business ....................................................... 1 1.1.2 The role of International Human Resource Management in MNC success .............. 2 1.2 Problem Discussion.......................................................................................................... 2 1.3 Overall Purpose and Research questions ......................................................................... 3 2 LITERATURE REVIEW........................................................................................................ 4 2.1 Major IHRM Issues within International Business .......................................................... 4 2.1.1 IHRM Policies and Practices..................................................................................... 6 2.2 Managing Cross-Cultural Issues within IHRM.............................................................. 11 2.2.1 Organizational View on Cultural Diversity ............................................................ 11 2.2.2 Cross-Cultural Communication............................................................................... 13 2.2.3 Cross-Cultural Management Styles......................................................................... 14 2.2.4...
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