Page 176 - DMGT548_GLOBAL_HRM

Unit 9: Global HR Issues in the Host Context

Recruitment and Selection of HCNs: Once hired, it is not easy to dismiss employees under Indian Notes
labour laws. The Industrial Disputes Act provides strict rules for layoffs and dismissals. One of
the attractions of the IJV is the assumption that a more experienced local partner can assist in
identifying a suitable workforce. The IJV may perhaps even use the existing human resources
(its internal labour market) of the local partner, if this pool of labour is considered to be sufficient
in terms of skill and productivity levels.
Compensation: Since the economic liberalisation in the early 1990s, it has become more difficult
for foreign multinationals to find and retain high-quality local staff, as the rapid rise in the level
of foreign and local investments in India has lead to a shortage of skilled people. This, in turn,
is placing pressure on the compensation packages of qualified managers. Pressure is also being
brought to bear on the minimum wage level, and this will increase the cost of labour over the
longer-term.
Training and Development: International business operations place specific demands on effective
training and development of PCN, TCN, and HCN staff. Training expatriates in negotiation and
conflict-resolution skills are advocated to enable them to cope with, and resolve, the unexpected
issues and problems inherent in both the Indian context and operating in the joint venture
situation. The introduction of new production equipment and concepts such as just-in-time,
quality management, and so on, require additional training. Developing and retaining the
workforce so that the multinational has a pool of managerial talent to draw on is also a challenge.
A skill-based approach may contribute to improved labour productivity and better performance.
Despite wage and salary increases, it is still cheaper to hire quality HCNs than employing
expatriates, with the added advantages that locals are more familiar with the complexities of
Indian business culture. However, staff training and development remain as important
considerations.

Task Take the example of Saab-Tata joint venture and devise the changes in HR practices
which this organisation must have undergone after venture.

Self Assessment

State whether the following statements are true or false:
18. The Industrial Disputes Act provides strict rules for layoffs and dismissals.
19. Since the economic liberalisation in the early 1990s, it has become easy for foreign
multinationals to find and retain high-quality local staff.



Case Study Barclaycard International: Recruitment in the
Context of an Internationalisation Strategy

his case study outlines the experiences of Barclaycard International and shows how
a range of HR issues have to be managed as the internationalisation process proceeds.
TThe role of local business partners in relation to recruitment and selection activity
develops, and the insights into what the central package of HR policies manages to create

Contd...

LOVELY PROFESSIONAL UNIVERSITY 171