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The report is discussed on transfer of human resource practices from home country to host country. It explains the issues which are affecting the results. It is very important to consider human resource practices. The result will affect by the decision. The company analyzes the kind of practices helpful to lead the competition. A British retail bank willing to operates in India.
The report discussed on desirability of practices and effect of decisions is discussed. The factors are discussed clearly social, economical, technical, management styles in home country and host country. The differences and similarities are analyzed in both host country and home country. The effects of home country and host country are discussed. The British retail company International experience analyzed. The strategies to overcome barriers in the point transfer of practices between the company and subsidiary. Subsidiary characteristics are explained clearly in the report.
The different approaches are analyzed such as ethnocentric, polycentric approaches and mixed strategies are discussed in the report. Some recommendations and conclusions are given the report. The report discussed industrial laws and their influence in the host country discussed in the report.
Today's environment is globalized. The globalized environment eliminates the boundaries between the countries. It laid the foundation for large companies to go globally. The company which is willing to operate in Host country, it requires certain policies and procedures. This enables competitive advantage towards organization. The multinational corporations are needed to consider the host country institutional frame work.
The multinational companies have additional difficulties managing the employees that of Domestic companies. The multinational corporations consider different societal contexts. The multinational corporations function across the national boundaries. (Hugh Scullion, 2007) The culture patterns, institutional frameworks are needed to consider while going towards globally. The International experience determines the practices in the host country.
The topics are cultures, institutional frame works, country of origin effect, industry analysis are discussed in the next part of the report. Desirability and feasibility of the transfer practices are discussed. Conclusions and recommendations are plotted in the end.
The Britain culture is idiosyncratic culture standards of England. (culture of england)Britishers having low power distance (score 35), they are more individualists (89) and less considerations in long term orientation (25). These scores are given by Geert Hofstede. (hofstede) They are practical in nature. Britain is highly industrialized country. It is technologically developed country.
British economic market is more developed and having more economic transparency.
British market consists of dynamic mergers and acquisitions.
British markets are more Flexible in nature.
Institution ownership is more in British companies.
British firms are short term oriented and looking for quick profit.
Companies are more concentrated for profits.
The United Kingdom management education system is more detrimental.
The Organizations are considered the experience rather than qualifications.
UK companies follow the internal promotions to encourage the workers.
British economic market is more developed, having more economic transparency.
British labor markets are more flexible in nature.
Consistence in political system
Institutions, trade unions and government are work together to establish good economic system.
Human resource management has less dependency in United Kingdom and Europe. Companies have less independence and ability to action, trade unionism is more United Kingdom multinational companies. Legal regulations are more strictly followed in this environment. The impact of social patterns is more in companies. (brewsler, 2002)
British Managing Approach:
British managers have a tendency in the direction of simplicity rather than specialization.
The plan with the aim of manager wants to be the most technically capable individual would receive little hold in the UK
Man management skills are required to yield the good results from team.
British managers are gives the instructions in indirect way to the employees.
The encouragement will provide for employees by internal promotions.
Stage in the internationalize process
The UK based retail bank going internationally, it consider level of international experience. If it having much experience in global operation it would goes for innovative human resource strategies. If Firm has less experience in the international operations better apt ongoing human resource practices that are implementing in home country. There is need for multi disciplinary approaches to meet the local requirements. It means If possible modulate human resource practices as per the host country requirements. But not go for experiment, because there is chance for reversing the strategies. It ultimately affects the name of organization.
The company adopts strategies such as ethnocentric, polycentric or geocentric. If it has no international experience, it would go for centralized human resource practices. If it has more international experience it may go for polycentric or geocentric.
Retail banking is rapidly growing in nature. The most companies are looking for going globally .Already some of the companies are operating globally with global standards. Retail banking industry can apt global integration strategies as per porter explained. Hear need consider the aspects such as technology, Economic conditions of the country and company. The structure of the economic system is influence the strategies of the companies.
Retail Bank industry
Retail banking industry is rapidly growing in world wide. After recession affect it is booming in developing economies such as India. The consumption rate is more in developing in economies. Medium ranged operators helped by technology in terms of risk management, operational point of view.
World retail banking report reveals that decline in prices that is two percentage decrease in last year to this year, this is has been declining from 2005 onwards at the rate of 1.2 percentage of annual average. The policies are framed to encourage the internet users. Convergence price in Europe and North America increased. (World Retail Banking Report 2009)
In banking sector retail lending across the world has been a plat form of innovation. China and India are becoming potential markets. Retail lending is increasing in throughout the World.
Citi bank, Hdfc, Barclays are operating internationally. State bank of India expands internationally to provide services. The mergers are common in banking industry. The royal bank of Scotland started in 1727. It has been serving the customers throughout the world. It becomes world largest retail bank. The retail banking industry majorly increased from 1960's onwards. From 1970-80's onwards companies are looking to go globally. European, US banks are majorly competitive to go globally.
The Reserve Bank of India analyzed different parameters like Asset size, Income level people. The major findings in the report are the funds in the pension industry increased at a rate of 122.44 percentages from 1999- 2009.
The number of debit cards user increasing day to day. The credit card transactions (as per amount) are more than that of debit card transaction. At the rate of 28.07 percentages increased in ATM outlets. 36.41 percentage increments in educational loans, it is about 27000 cores in INR. Loans for two-wheeler are increases at 14.21 percentages from 2005-06 to 2009-10. Mutual fund industry increases at the rate of forty percent. (indian retail business sector)
Mode of establishment Brown field
Economic performance depended to parent
Age 5 years
Location Asian market
Billion plus population and large size of young people presented in the Indian market. In 1990 the government of India liberalized the rules on trade. This decision laid the steps for attracting the foreign direct investments towards India. Large multinationals are eager to enter the Indian environment due to the advantages in Indian business environment. It is place for skilled work force. India has the large service industry that is 62.8 %. It clearly reveals that Distribution wealth is more in India.
The culture diversity in India when compare with the British environment. Issues such as power distance, uncertainty avoidance, individuality, masculinity.
The power distance is more in Indian environment compare with the British. Global distance rate is near to Indian power distance rate. The ratings are as follows power distance rated as (77), individualism is less in Indian people (48), and uncertainty avoidance is (40). The uncertainty is low in Indian environment is low. Long term orientation is some more in India (61). (Hofstede)
India is consists wide variety of traditions, that is" unity in diversity". Hierarchical relationships are more in India. British ruled India for almost 200 years. (business environment india vs china)
India has tasting global trends from across the nations. India is a rapidly developing country. It will be a destination for multinational corporations throughout the world.
Institutional frame work
India is the largest democratic country in the World. British was ruled India for 200 years. The industrial disputes act was established in 1947. It facilitates the provisions to settle the disputes between the parties. It consists 40 sections to settle the disputes. The trade union act 1926 provides the registration for unions; it was amended in 2001 called as trade union act 2001.worker participation in management, labor welfare acts are imposing towards industry. (govt of india)
The labor legislatures and foreign exchange restrictive trade practices are deregulated in 1991. The liberalization invited the multinationals towards India. The human resource policies such as variable pay, job rotation, training and development, multi skills are improvised in the companies. Human resource management is became a key component in the business. (Industrial Relation Policy)
Indian style of management
The difference will seen in clearly in the top level, middle level and lower levels in the organization.
The individualism concept in India is low.
People tend to work as groups.
There is chance for tall structures.
Top management decisions are accepted as norm.
Desirability of transferring human resource practices
There is lot of differences can found Indian and British workplaces. But British human resource practices are workout in the India and Chinese environment. (Peter F. Boxall) Generally US and Japan are more concern of implementing own practices in the subsidiaries. US mnc's are more centralized in nature. (ulie Beardwell) Standardized, centralized practices opted by the US companies. These are more comparing with the British mnc's. British and US multinationals are profit oriented in their subsidiary management. Japan and Germany are looking to improve technical templates in their locations. (Maryann P. Feldman)
Conglomeritic strategies are followed by British mnc's in their subsidiaries (Maryann P. Feldman, New Perspectives in International Business Research) British multinationals are tend to adopt practices like practical experience rather than theoretical studies.
Feasibility of transferring human resource practices
We can find more variations can find British environment to Indian environment. Indian employees can easily mould and they know how technically as well in English. It will be the advantage to the transfer of practices. The company has less experience so going with the central decision making will help the organization. There is need of adopt some local practices is to yield more results. The British retail bank can easily implement the strategies, because Indian environment habituated by the multinational practices.
Many multinationals are entered in to Indian origin such as ABN AMBRO, HSBC, P&G, Intel, Uni leaver, IBM, Micro Soft many more multinationals are improvised their human resource practices from their origins. The most of the organizations are polycentric in nature.
British industries are technically equipped products are used to reach the customers. This will be the advantage to the British company.
The British retail bank need to consider feasibility in the subsidiary. Company analyzes the country of origin effect with host country effect before going to transfer the practices. Ensure the influence of host country effect on internationalization process of company. The British retail company consider size, age are low there is possibility of transfer the practices is greater. The British company has the more chances to import the Hrm practices.
Recruitment and selection
Selecting a Wright person is important so go for skilled workers to lead the competition.
British policies are more standard when compare to Indian environment
Training and development
Good training is required to lead the competitive market.
Power related issues will more in Indian environment
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