Principles of Organisation and Management Assignment

PGDIM 18 Section-C Submitted to: Dr. Sumi Jha

Submitted by:
165 Vipul Agarwal 175 Manish Kumar 185 Guru Prasad Saraf 195 K Vijaykumar 205 Sandeep Sashidharan

National Institute of Industrial Engineering Vihar Lake, Mumbai 400087

Table of Contents

1. Introduction.3 2. Objective..3 3. Methodology...3 4. Literature Reviews....3 4.1 Diversity management in India..3

5. Strategic HR management practices.7 6. Empirical evidence 6.1 Sample.8 6.2 Questionnaire.........9 7. Results and discussions.10

8. References..11 Annexure 1

Diversity management practices in an Indian Multinational A study on how an Indian company manages its existing diversity.
1.0 Introduction India has always been a mixed basket of cultures, languages and faiths. In an Indian company accepting the existence and validity of diverse culture, faith or ethnicity was never been a major problem. However the extend to which this diversity was promoted is another matter altogether. In many Indian firms there had been a tendency to promote particular employee groups over others. Historically Indian organizations have been partial and prejudiced against female employees too. But recently this scenario is being changed as Indian companies are embracing diversity. Indian IT companies played a major role in exposing the organizational benefits of employee diversity, equal employment opportunities and bringing home diversity management practices. As firms grow in size and across the borders, the power of diversity and the diverse skill sets the same brings to an organization becomes difficult to ignore. 2.0 Objective To identify the various diversity management practices in an Indian multinational company. The primary focus is on how existing diversity is managed, measures in place to ensure equal employment opportunities, proactive actions undertook to acquire and retain diverse talent and how employee awareness is developed on issues pertaining to diversity and inclusiveness. 3.0 Methodology In this study we draw upon the various researches and study in the field of diversity management to identify the key issues and areas in the diversity management and also to recognize how these issues are being addressed in the various parts of the world. We also examines the views of the executives and managers in an Indian multinational on how and how effectively is workspace diversity managed in his/her organization. We identified few strategic HR practices in the area of diversity management and conducted structured interviews with each of these executives and managers on these practices. 4.0 Literature reviews 4.1 Diversity management in India: A study of organizations in different ownership forms and industrial sectors. Author: FANG LEE COOKE, visiting professor of Southwestern University of Finance and Economics China and Professor of HRM and Chinese Studies, School of Management, RMIT University, 239 Bourke Street, Melbourne 3000, Australia, E-mail: [email protected] Human Resource Management, MayJune 2010, Vol. 49, No. 3, Pp. 477 500 Objective: To investigate how the U.S.-originated concept of diversity management in the HRM is understood and operationalized in several leading business organizations across different ownership forms and industrial sectors in India. Methodology: A qualitative (case study) approach was adopted using multiple methods, including semi-structured interviews, document analysis, and on-site observations to collect data. In-depth case studies were carried out with 24 business organizations based in India in 2007. The companies represented a range of business areas, including

telecommunications, pharmaceutical production and research and development, automotive production, commercial, hotel and tourism, health care products, and transportation. Literature review-The concept of diversity management (DM) is increasingly promoted as a strategic people management technique that will enhance organizational competitiveness. First, a comparative study of several ownership forms and industrial sectors is helpful in illustrating various operating environments and hence firms HR. Second, we selected India as a venue for study as it is a rising economic powerhouse in the global economy with sustained high growth MNCs are attracted to India not just because of the less expensive resources it offers for production activities, but also because of its vast potential markets The objective of diversity management is for organizations to increase awareness of cultural differences; develop the ability to recognize, accept, and value diversity through organizational intervention to minimize patterns of in-equality experienced by those not in the mainstream; and modify organizational culture and leadership practices so that members of all socio-cultural backgrounds can contribute and achieve their full Potential In African countries, politics assumes supreme importance in diversity management, while ethnicity dominates most national debates on diversity as the central issue. In contrast, ethnic groups in Japan and Korea are relatively homogeneous; as a result, gender, womens marital status, and their related employment status may be the key source of workforce diversity. In the U.S. and UK, workforce diversity may include gender, race, ethnicity, religion, age, disability, immigration status, social class, political association, marital status, parental status, sexual orientation, and ex-offenders, among other categories. Caste, ethnicity, religion, and gender are the main sources of diversity in India, whereas age, gender, disability, and place of origin (e.g., rural vs. urban) are the main causes of social inequality in China. India is a democracy in which inclusiveness is the major politicoeconomic discourse at present. 4.2 Managing diversity Impact of religion in Indian work space.

Author: Asha Rao, College of Business, California State University East Bay, VBT #422, 25800 Carlos Bee Blvd., Hayward, CA 94542, United States Journal of world business (2011) doi: 10.1016/j.jwb.2011.40.010 Objective: This paper focuses on the work issues raised by major faiths in India and US and their impact on Indian firms and US firms in India. Methodology: Author initially draws from research and conceptual works from many disparate areas including cross cultural management and world religions to understand the dynamics between religion and culture at work. Later section draws from structured interviews from top executives in Indian firms and US firms in India to shed light on the factors identified in the initial section. Literature review: Author examines the nature and history of major religions in India and US and its impact and role in the formation various cultural and work. Drawing from various research and conceptual works, this paper emphasizes the role of religion in shaping the national culture and hence work place behavior. She identifies culture as collective mental behavior shared by people. A conceptual frame work is adapted which identifies culture as a multilayered pit. This is intended to help the manager understand the nuances in managing religious diversity and researchers to further examine the issue. This model identifies culture as pit with three layers with the factors at the top layer being most visible outwards and the factors at the bottom being least. The bottom layer consists of religion and core cultural values including the meaning of work (work ethic etc.) and linking of cultural assumptions and religions (importance of god, power differentials etc). The middle layer constitutes the attitudes, rituals and artifacts derived from the core values such as attitude towards time, women in business and management, architectural roles, division of labor and business codes and religion and ethics. The most evident surface layer are most sought to be managed or accommodated in the process of managing diversity.

Many of the cultural clashes and litigations occur over factors in the surface layer such as symbols, artifacts, calendars, schedules and workweeks. These layers together help identify how the workplace behavior and practices of person is formed and how sensitive each of these issues are. Identification of these factors is done in an Indian and US context. A global manager needs to understand the in flexible core values of the employees and their religious roots as many attitudes and rituals in the middle layer would appear irrational without the backdrop of these values. Thus manager will be more equipped manage the behavior and artifacts in the top layer. This study collects empirical evidence from interviews of top executives in Indian firms and US firms in India. The interview questions are so formulated to shed light on the effect of factors identified with the previous framework. The scope of further research includes diversity issues for Indian MNCs and their foreign operations. Work force diversity status: A study of employees reactions. Author: Subash C Kundu Department of Business Management, Guru Jambeshwar University, Haryana, India http://www.emeraldinsight.com/journals.htm?articleid=850127&show=html Objective: The main objective of the paper is to study work force diversity status in India and to assess how various perceptions of male and female employees of various categories (such as general, minor, disabled and socially disadvantaged) differ on the same groups as well as across the groups. Methodology: The study based upon primary data collected from the response to a questionnaire formed incorporating various aspects of diversity. The scales used for response was based upon the work of Kossek and Zonia which is basically a five point scale system. The questions concentrated upon value diversity, development opportunities, competence and productivity of employees and Organizational support. The responses were collected from various categories of employees i.e. male, female, minority, social disadvantaged and disabled. The data was then analyzed through various statistical tools such as ANOVA, Factor analysis and Correlation analysis for arriving at the conclusion. Literature review: Organizations in todays world are becoming culturally diverse due to various factors such as globalization and high mobility of the skilled employees. This evolution from a homogenous to a multicultural work force has brought new challenges along with the advantages. For instance women employees as proportion of the total workforce is increasing gradually every year and its impact can be felt in the high involvement of women in decision making activities and gaining support for the Organization support for women in the areas such as equal opportunities and flexible maternal leaves. Considering this along with a highly diverse cultures in our Indian sub-continent the challenges faced by various organizations be it the MNCs or the Domestic companies- are very complex requiring further studies and research into this area. Today, organizations are consciously driving towards diversification to gain competitive advantage of the highly dynamic workforce can have in serving various culturally diverse markets and customers. It also helps in addressing various issues such as skilled manpower shortage, changing demographics, competition in attracting the highly talented employees from various backgrounds. Given the importance of Diversity Management (DM) it is highly important that it is understood and managed well extending well into the grass root level of any organization. Even though the initiatives are being taken, a study to bring out a picture of the current status of DM addressing various facets of DM in various categories of society is necessary to understand and direct the efforts in an efficient manner. This study basically addresses the need by analyzing the data gathered from employees belonging to eighty different organizations on the issue of force diversity status in India and to assess how various perceptions of male and female employees of various categories differ. 4.3

One important conclusion the study has brought is the prevalence of racial and gender discrimination in Indian organizations which though not really surprising given that our country is still a developing country but the extent to which it is prevalent is of grave concern. Also, the lack of support to the socially disadvantaged and the disabled in most of the organizations can be easily concluded by the fact that it was acutely felt by most of the employees across all the categories. Concerning the value diversity, female employees along with the minority employees value DM more than the others. As for the competency and the productivity perceptions employees belonging to the categories such as disabled, minorities and socially disadvantaged are generally rated poor in case of productivity by the general category and dont get equal access in the employment opportunities. Such conclusions give a clear picture of the present status of DM in our country and yet it has some limitations such as the selection of only those companies who had some policies on DM in place. Such an approach would give a rosy picture which would not really correspond to the reality in our country. In spite of such limitations this study gives us some key insights about the current status of DM and also a comprehensive picture of the same which enables us to draw further conclusions. 4.4 Dissemination of diversity management in Germany: A new approach Institutionalist

Author: Markus Kleiner, University of Hagen, Faculty of Applied Economics, Department of Business Administration European Management Journal (2008) 26, 35 47 Objective: This research paper focuses on dissemination of diversity management in corporate practice on the basis of the New Institutionalist Theory. Methodology: Author initially draws from research and conceptual works from many disparate areas including cross cultural management and world religions to understand the dynamics between religion and culture at work. Later section draws from structured interviews from top executives in Indian firms and US firms in India to shed light on the factors identified in the initial section. Literature review: Author examines the understanding of diversity management among German companies and how economic and political factor had let to such kind of diversity. Drawing from various research and conceptual works, this paper revolves around isomorphic dissemination of diversity management. He discusses the concept of diversity management and how it has evolved from USA. He argues that organizations adopt structures and patterns of behavior that are expected by their environment because they are assessed as being appropriate and rational. He finds out that most of the companies do not understand the meaning of diversity management and its implication on the organizational performance. His study reflects that there is a huge gap between what managements feel about diversity management and its implementation when compared with responses from the employee of the same organization. His research finds out that more of US based companies in Germany have adopted diversity management as compared to German domestic companies. Diversity managements dissemination in corporate practice is actuated by three processes- process of coercion, mimetic processes, and normative pressures. Larger companies tend to have stronger isomorphic dissemination of diversity management. The construction of and compliance with diversity management as a rationality myth leads to its

isomorphic dissemination. The development of diversity management as a facade of legitimacy leads to its isomorphic dissemination. 4.5 The management of cultural diversity: lessons from Brazilian Companies

Author: Maria Tereza Leme Fleury (University of So Paulo, So Paulo, Brazil) Source: Industrial Management & Data Systems 99/3 [1999] 109114 Objective: To understand how the Brazilian enterprises operate despite the extremely diversified cultural context and the points that emerge as conclusions can be generalized for India. Methodology: Author starts with the history of Brazil, its discovery in 1500 AD followed by significant transformations in cultural, political and economic terms. The European (Italian, German, Spanish, French) and Asian (mainly Japanese) migrants gradually settled here and contributed in the industrialisation and urbanization process due to their superior educational level. As a consequence of the formation of a culturally diversified population, with great miscegenation through marriage among races, certain cultural pattern has developed. Author has taken the context of USA and Canada in order to conceptualise the diversity and to accomplish this research, 15 companies were contacted in Brazil, Of which 7 agreed to talk about the program. Author interviewed the manager responsible for the program and gathered the information. Literature Review: Despite the extremely diversified cultural context in which Brazilian enterprises operate, the issue of cultural diversity is new in their agenda. The emergence of this theme is much more related to the need of creating competitive advantages by developing diversified competences, usually following policies which are established by the headquarters of local subsidiaries, than attending to legal procedures, as happens in the USA and Canada. Departing from a conceptual elaboration about cultural diversity and its management, this paper presents the results achieved in a research among leading Brazilian firms. The points that emerge as conclusions can be generalized for other countries. With the industrialization and urbanization processes, a more heterogeneous middle class appeared in the Brazilian scenario, but devaluation of manual work still remains. But on the other hand, it is a very stratified society, where access to opportunities in the educational system and to the best positions in the labor market is defined by the economic and racial origin. There are several dimensions when considering what diversity is, gender, age, education, abilities, ethnic groups, religion, origin, breed, and language. We define diversity as a mixture of people with different group identities within the same social system. These social systems are characterized by majority groups and minority groups. Majority groups are groups whose members historically got advantages in terms of economic resources and power in comparison to other groups. The theme of culture diversity can be studied on different perspectives at the society level, at organization level, and group or individual level. In all of them, culture patterns, expressing values and power relations have to be scrutinized and analysed. In other words, managing diversity must add value to the company. Then, the company should develop an action-research project, supported by consultancy work, where diagnoses should subsidize the establishment of goals and actions. the only way to approach this subject is to focus on the company competitiveness showing how a policy of managing cultural diversity can bring out or develop new competences, adding value to the business. 5.0 Strategic HR management practices

Indian MNCs see diversity as already embedded in the society and though managing existing diversity is now recognized as a key HRM function, view on promotion of diversity is as that of low management priorities. Even though gender diversity at workplace has taken a giant leap recently, Diversity related to other aspects remain stagnant at what has been dictated by statutory regulations. The promotion of diverse skill sets is recognised as crucial factor in the success of the organisation. There are no visible incentives for a manager in Indian MNC to promote diversity within the organisation. His / her initiatives in this direction are seldom measured in a performance management system. And diversity management is often recognised as an activity limited at corporate or HR management level. Indian MNCs are increasingly aware of the importance of increased proportion of female employees in the organisation. In this regard various incentives are provided attract and retain female talents Although HR policies of the Indian MNCs supports hiring differently enabled personnel, in practice they do not get equal opportunities within the organisation with respect to tasks and assignments. And are often restricted back end office jobs with minimal or no interaction with the customers Indian MNCs are increasingly providing flexibility with respect to religious / regional holidays, so that employees can choose holidays of their choice from a given set of holidays. This helps keep total man hours the same in locations across a diverse country like India. This also helps deliver what is exactly required by the employee and hence improve employee satisfaction. As Indian firms grow more global there is an increasing number for foreign nationals working in India and Indian nationals are being sent abroad. HR managers now recognise the importance of training anchored on cultural diversity. HR functions in most firms fail to categorically identify various elements of frictions in the teams in their organisations, arising out of existing diversity and no proactive efforts are made to empower their managers with the findings of such studies and train them to effectively handle such situations. In an increasingly multicultural and multi-religious organisation, HR managers now recognise the importance of awareness among employees regarding various cultures and religions of their colleagues to reduce diversity related conflicts. On a day to day basis HR managers are required to make trade off decisions between maintaining the professional and impartial image of the company, and allowing the employees to maintain and follow the artefacts / symbols of their faith and culture 6.0 Empirical evidence To examine the HR practices in an Indian MNC we decided that rather than meeting HR managers or executives, we would talk other managers and executives in the company that we considered for examination. We feel that this way we would be able to identify those policies and practices which have maximum impact on the employees than the ones the organisation would like to project. By doing so we were also able to have an insight into the effectiveness of the HR practices. In this process we were also able to identify a couple of things which currently were not in practice, but many of our interviewees felt that these practices were required. For e.g.: incentives for initiatives taken to promote diversity management. We chose a prominent Indian multinational company in IT sector to conduct our study. 6.1 Sample We conducted Semi-structured interviews with executives and managers in an Indian MNC, where the candidates were interviewed based on a standard questionnaire, but was also asked to elaborate on their answers when and where required. Average interview time

was 30 40 minutes. Some candidates were interviewed face to face and some over phone. Our sample included eight male candidates and two female candidates. Work experience of the candidates varies from six years to ten years and all of them are from engineering background. 6.2 Questionnaire The questionnaire consists of thirteen open ended questions pertaining to various aspects of diversity management discussed earlier. We tried to explore how priority of diversity management is conveyed in the organisation with questions like how important is diversity management in the organisation and describe specific programs in your organisation intended to promote diversity. Questionnaire consists of questions regarding the team under each interviewee to ascertain the level of existing diversity in the organisation. It also examined whether any incentives are in place to promote diversity management with questions like What are the incentives available to promote diversity in your team and whether and how your efforts in this regard are reflected in your organisations performance management system We also examined how gender diversity is managed in the organisation with questions exploring steps taken to acquire and retain female talents. Questionnaire also explore employment opportunities available to differently enabled employees with questions like How the roles and responsibilities of such employees differ from their peers We also examined how effective are the steps taken by the organisation to manage cultural diversity in country like India, where cultural and religious traditions and practices vary widely across the length and breadth of the country. In this regard we examined the effectiveness the practise of flexible regional / religious holidays. Questions like How your company creates awareness regarding various cultural / regional heritages of you colleagues explore the initiatives taken towards managing cultural diversity. The questionnaire examines the training provided for employees assigned with offshore projects and foreign nationals working in India to figure out the relevance of orientation on cultural practices in such training programs. We also examine the extent to which display and maintenance of artefacts / symbols of cultural / religious significance is tolerated in the organisation. And also the extents to which exceptions are made. 7.0 Results and discussions. All our interviewees agreed that diversity management is given at most importance in their organisation. One manager responded that The top management including the CEO had expressed the relevance of diversity management to the employees in more than one occasion, stressing upon the importance his organisation awards to diversity management. More than one candidate felt that at the present scenario much emphasis must be given to manage gender diversity than any other. Even though none of the candidates could recollect any specific declared programs in the organisation to promote diversity at the recruitment stage, all of them agreed that a reasonable gender and cultural diversity is factored in during all campus / mass recruitment processes. Towards questions regarding their team all candidates described them to be result oriented, innovative and hardworking. When asked to give a verbal picture of their teams, all candidates described their teams with team strength, no. of female employees in the team and the general background of the team (educational qualification, work experience and place of origin). From the sample it appears that almost all the teams in this particular section of the organisation seems to have a better female employee ratio than most industries, come from engineering background and originate from various parts of India. All candidates responded that they were keen on diversity management but most of them couldnt point out any material incentive available towards the same. One candidate responded that I feel increased diversity in my team has improved the creativity and flexibility of the team and this helps our team to be more productive. However no candidate

could recollect any provision in their performance management system to directly recognise and reward initiatives in diversity management. Most candidates responded that female employees fare better than male counter parts in certain aspects of the job such as team building and handling adversities. Hence they feel its important to have a fair proportion of female employees in the team. I feel female employees in my team are more balanced in their approach towards work and are able to communicate work related issues more effectively responded one manager. However the single female candidate felt that It should also be not that ratio is more skewed towards female employees. I would feel more comfortable working with a balanced team All candidates recognised attractive maternity leave, flexible work timings, provision to work from home, safe conveyance from work to place of stay, work location of choice etc are some factors which help their organisation attract and retain female talent. All candidates could identify one or two differently enabled employees in their office and invariably employment opportunities of these employees were not at par with their peers. However the organisation had provided special concessions and considerations to these employees such as customised work space, conveyance till office door etc. One candidate felt that The employment opportunities provided were according to the preference of such employees and is aimed to create a productive work environment All candidates preferred to have flexible regional / religious holidays. And as one of the candidates pointed out I would like to have one more day off around a holiday that I celebrated that have another day off for something that I didnt celebrate. Another candidate pointed out that Having flexible holidays mean that I would have minimum workforce available in my team, any day of the year. Most candidates also observed that initiative by the organisation to celebrate various festivals irrespective of the region or faith and to conduct traditional art forms from various parts of the country have helped them understand the cultural heritage of their heritage. One candidate observes that These events help initiate an opening point between colleagues to talk about their native place, culture, food, art etc. and this helps is team building too. All candidates responded that all employees received extensive training before any offshore assignment. They are introduced to cultural dogmas and stigmas in the other country with stress on how it varies from ours. There are also all year round training programs in foreign languages, which an employee can take up at any time. None of the candidates had a deep understanding regarding the training provided for foreign candidates. However one candidate recalled an instance when spouse of one of his foreign colleagues came to India with her husband, only to have the cultural shock of her life. He stresses that Not only the employees but their family members who might move with them should also be sensitized to the culture of the country or region Most of the candidates responded that they were not always able to identify elements of friction within their team. All of the managers responded that they could draw upon their experience to handle any such situation. They also responded that they would only interfere if the situation seems to affect teams productivity. None of the managers could recollect any specific training being provided in this regard. However there were elements of conflict resolution in their training for team building. All of the candidates responded that its imperative to reflect the decorum of the office and professionalism in the dress code and in maintaining the work space. One candidate responded that ornaments or apparels absolutely unavoidable according to ones faith could be worn to the office, but should be done in discrete and decent manner All candidates agreed that the key is to have moderation when it comes to display of artefacts / symbols of faith and culture Discussion and analysis of this paper indicate that, diversity management practices in Indian multinational companies are in its nascent stage and are more concentrated on managing existing diversity than to create more fruitful diversity. Our study is limited to diversity management practices in one company in one sector. Further research is needed to exhaustively list out and evaluate the diversity management practices in Indian MNCs.

The scope of further research shall also include adaptation of admission policies in premier business schools to promote diversity at the time of recruitment itself. 8.0 References

1 Author: Fang Lee Cooke, Diversity management in India: A study of organizations in different ownership forms and industrial sectors. Visiting professor of Southwestern University of Finance and Economics China and Professor of HRM and Chinese Studies, School of Management, RMIT University, Human Resource Management, MayJune 2010, Vol. 49, No. 3, Pp. 477 500

2. Author: Asha Rao, Managing diversity Impact of religion in Indian work space. College of Business, California State University East Bay, VBT #422, 25800 Carlos Bee Blvd., Hayward, CA 94542, United States

3. Author: Subash C Kundu Work force diversity status: A study of employees reactions Department of Business Management, Guru Jambeshwar University, Haryana, India http://www.emeraldinsight.com/journals.htm?articleid=850127&show=html

4. Author: Markus Kleiner, Dissemination of diversity management in Germany: A new Institutionalist approach University of Hagen, Faculty of Applied Economics, Department of Business Administration European Management Journal (2008) 26, 35 47

5. Author: Maria Tereza Leme Fleury The management of cultural diversity: lessons from Brazilian Companies (University of So Paulo, So Paulo, Brazil) Source: Industrial Management & Data Systems 99/3 [1999] 109114 Annexure 1 Sample questionnaire

1. 2. 3. 4. 5. 6. 7. 8.

What level of importance does your company attaches to managing existing diversity? What are the specific declared programs (Eg. special recruitment drive) that your company has to promote diversity at the recruitment stage? Describe your team on the basis of skill set, competence, capability and work experience. What are the incentives available to you to promote diversity within your organisation? Whether your actions to promote diversity management are categorically identified and measured in your performance management system and rewarded accordingly? How important it is for you to have a good proportion of female employees in your team and why? What incentives do your company provide to attract and retain female talent? What are the roles and responsibility of any differently enabled candidate in your organisation and how does it differ from the roles and responsibilities of his peers.

9. 10.

11. 12. 13.

How preferable are your companys policy on religious / regional holidays and why? What is the extent of training provided before an offshore assignment / for a foreign national working in India and the importance of orientation regarding cultural practices in such training programs? Are you able to categorically identify elements of friction within your team? And what are the tools at your disposal to manage such elements? How does your company help you / your team members to get to know the cultural / regional heritage of your colleagues? To what extent do you feel it should be allowed for team members to maintain and follow the artefacts / symbols of their faith and culture?