In is Globalization. No longer are HR practices

In today’s competitive business
environment, Organizational Innovation is an essential aspect that requires
attention. HR practices have always played an important role in corporate strategy,
but with changing times, well-organized HR practices is needed now, more than
ever. HRM plays a major role in churning out new strategies that are better
suited to the dynamic setting of the business environment. Sometimes, HRM is
not a mere part of the strategy but the very factor that defines the strategy
itself. To remain competitive in today’s markets, Indian and Foreign MNCs are
required to revamp and upgrade their HR practices. This paper discusses about
the innovative strategies of Indian and Foreign MNCs and the HR practices
implemented by them.

While the basics of any HR practice
are similar, companies differ in their HR practices only in their
implementation and operations of the same. Companies change their HR practices
according to the cultural, political, economic and technological environment of
the countries in which they are operating. One of the more recent driving
factors for the standards of HR policies is Globalization. No longer are HR
practices a matter of trend, but a matter of survival for companies. Moreover,
competitive pressures have forced companies to be proactive and diagnose HR
problems and overcome them through new HR strategies. A key difference between
Indian and Foreign MNCs is the emphasis on alignments between parent and
subsidiary companies; something that Indian MNCs are not as concerned about.

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As of the present time, the Indian
MNCs put a greater emphasis on managing performance from within and thus, focus
on getting their culture building practices right. In contrast, Foreign MNCs
are more focused on ensuring a greater synergy between the parent and
subsidiary companies and having standardized practices in place. Foreign MNCs
are also conscious of the cost involved and the performance expected from the
implementation of a strategy, unlike their Indian counterparts.

A discussion of the findings,
limitations, and implications are provided.

 

INTRODUCTION:

Strategic
human resource management is the process of linking the human resource function
with the strategic objectives of the organization to improve performance.
Strategic human resource management focuses on the overall HR strategies
adopted by business units and companies, according to John Bratton; it is a
thought that integrates traditional human resource management activities within
a firm’s overall strategic planning and implementation, thus called strategic
human resource management. Strategic human resource management is concerned
with all those activities that affect the behaviour of individuals in their
efforts to formulate and implement the strategic needs of the business. The
pattern of planned human resource deployments and activities intended to enable
the firm to attain its goals. There is an explicit linkage between HR policy
and practices and overall organizational strategic aims and the organizational
environment.

?      
Support
the Management with strategic policies and implementation of new policies, the
company requires.

?      
As
a company has many competitors, creating and maintaining competitive advantage
to the company is essential to have the position required.

?      
Innovation
and upgradation of the responsiveness is subject to improvised potential of the
company.

?      
Increase
in number of feasible strategic options available is the added advantage to the
company in various scenarios of management.

?       
Participating
in strategic planning is the essential factor towards the Contribution
of goal accomplishment and survival of the company.

?      
 strategic directions of the company as an
equally entitled member of top management influences majority of the company’s
management.

?      
Improve
the cordial relationship between HR managers and line managers to maintain the
ethicality and smooth functioning of the organization.

?      
 Companies
should have a constant and regular process of hiring, transferring and
promotions 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 to
achieve goals of the organization and it’s members.

?      
 Improving
Training based on the requirement of the company suitable for growth of
business.

 

 

OBJECTIVE:

·        
To
analyse the HR strategies implemented by the Indian and Foreign MNCs which have
made them the biggest companies.

·        
To
focus on HR practices that are related to performance and growth in Indian and
Foreign MNCs.