IHRM Project Report

37
MDI GURGAON Staffing Approaches for Tata Motors in U.K., Mexico and Kenya IHRM Project Kanika Kakkar (09PGHR17)|Madhur Kathpal (09PGHR20)| P.Swathi Shree (09PGHR27)|Priyank Bhandari (09PGHR31)| Roshni Arora (09PGHR38)| Vividh Bansal (09PGHR58) 2/3/2011 The project is a part of submission for the course IHRM for PGP-HR 2009-11 Term VI

Transcript of IHRM Project Report

MDI Gurgaon

Staffing Approaches for Tata Motors in U.K., Mexico and Kenya

IHRM Project

Kanika Kakkar (09PGHR17)|Madhur Kathpal (09PGHR20)| P.Swathi Shree (09PGHR27)|Priyank Bhandari (09PGHR31)| Roshni Arora (09PGHR38)| Vividh Bansal (09PGHR58)

2/3/2011

The project is a part of submission for the course IHRM for PGP-HR 2009-11 Term VI

Acknowledgement

We would like to take this opportunity to extend our gratitude to Prof. Pawan Budhwar

whose knowledge and experience has served as a continuous source of encouragement and

motivation. Without his invaluable guidance, this project would not have been possible. We

are grateful to the PGHR chairperson Prof. Jyotsana Bhatnagar for giving us the opportunity

to pursue this course under an esteemed faculty.

Last but not the least we would like to thank our esteemed institute, Management

Development Institute, Gurgaon, for providing the necessary facilities, without which this

project would have remained an unfulfilled dream.

Table of Contents

Sr. No.

Title Page No.

1 Objective 42 Company Chosen 43 Methodology 44 About TATA Motors 45 Competencies required in automotive industry 56 Culture – UK, Mexico, Kenya 67 Other considerations from research 88 TATA Motors in UK 119 Immigration rules in UK 11

10 Working in UK 1211 Employing Workers in UK 1312 Critical Analysis- Staffing Approach of Tata Motors in U.K. 1513 Mexico – Recruitment Considerations at Mexico 1914 Recruitment Practices followed in Mexico 2015 Critical Analysis- Staffing Approach of Tata Motors in Mexico 2116 Recommendations – Staffing Approach 2317 Kenya – Push and Pull factors to go to Kenya 2418 Culture of Kenya 2419 Critical Analysis- Staffing Approach of Tata Motors in Kenya 2520 Recommendations – Staffing Approach 25

References 27

Objective

The objective of the project is to recommend staffing approaches for an Indian company, giving

reasons for the same for subsidiaries in U.K., Mexico and Kenya.

Company chosen

The company that we have chosen for our analysis is Tata Motors. The company has subsidiaries in

U.K., and plans to progress in Mexico and Kenya.

Methodology

The methodology followed by us was-

1. Literature Survey: We studied literature on Staffing approaches followed by various Indian

Companies through journals and articles, as well as on the internet.

2. Critical Analysis: based on the information from the literature survey, we critically analysed

the 3 staffing approaches for U.K., Mexico and Kenya.

3. Recommendations: Based on the Critical analysis performed and our own judgement, we

recommend staffing approaches for the 3 countries.

About Tata Motors

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.

92,519 crores (USD 20 billion) in 2009-10.

It is a leader in commercial vehicles in each segment.

It is also amongst the top three in passenger vehicles with winning products in the compact,

midsize car and utility vehicle segments

Along with that Tata Motors is World’s fourth largest truck manufacturer, and the world's

second largest bus manufacturer.

The employee strength of Tata Motors is 24,000

It is guided by the vision to be "best in the manner in which we operate, best in the products

we deliver, and best in our value system and ethics.“

Tata Motors has it operations in the UK, South Korea, Thailand and Spain. It also has a

strategic alliance with Fiat.

Competencies Required in Automotive Industry

Level 7 – Senior ManagerLevel 5 – Middle ManagerLevel 3 – First Line Manager

1. Creates a winning culture 2. Keeps things safe and legal 3. Organizes efficient systems4. Makes sense of information 5. Leads the team 6. Engages the workforce7. Selects the right people 8. Gets results through people 9. Adapts plans to a changing market 10. Grows customer value 11. Makes money 12. Drives sales 13. Joined up thinker 14. Acts decisively 15. Can do attitude 16. Develops self

Source: Automotive Management Association

Culture – U.K., Mexico, KenyaIndia

Mexico

United Kingdom

Kenya

Dimension Score Kenya

Score India

Score Mexico

Score U.K.

Power Distance Index

64 77 81 35

Individualism 27 48 30 89

Masculinity 41 56 69 66

Uncertainty Avoidance Index

52 40 82 35

Long Term Orientation

25 61 25

Other considerations from Research

Factors favouring HCNs-

A study by Banai and Reisel (1993) found that PCNs and HCNs do not differ with regard to their

loyalty to the MNC, which provides a strong case against the assumption that HCNs give subsidiary

concerns priority over headquarters’ concerns.

Factors favouring PCNs-

An in-depth study by Moore (2006) shows that PCNs do not primarily fulfill their role as control

organs of the headquarters, but that they strategically use their position between the Subsidiary

staffing and initiative-taking local and the headquarters management to follow their own personal

aims and motivations.

Additionally, Black and Gregersen (1992) as well as Loveridge (2006) demonstrated that a

headquarters orientation is only with those PCNs that do not go native (e.g. by marrying a host

country national, converting to the locally dominant religion, or taking up permanent local residence),

whereas Peterson et al. (2000) found that a strong orientation towards the local subsidiary is only with

those HCNs that do not have international career options.

Subsidiary CEO’s Positioning

Regional Selection Criteria

Asia Pacific

Europe & the Middle East

The Americans

Japan

Most Important Criteria

Skills or Competencies

Skills or Competencies

Skills or Competencies

Job Performance

II Most Important Criteria

Job Performance

Job Performance

Job Performance

Job Level

Least Important Criteria

Marital Status

Marital Status

Marital Status

Projected assignment cost for the Individual

II Least Important Criteria

Language ability

Projected assignment cost for the Individual

Language ability

Marital Status

* ORC Worldwide 2002 , Worldwide survey of International Assignment Policies and Practices

U.K.

 It is a constitutional monarchy and unitary state. It consists of four countries-England, Northern

Ireland, Scotland, and Wales. It is governed by a parliamentary system with capital in London .It is

a developed country, with the world's sixth largest economy by nominal GDP and eighth largest

economy by purchasing power parity. It was the world's first industrialised country  and also was the

world's foremost power during the 19th and early 20th centuries, but the economic and social cost of

two world wars and the decline of its empire in the latter half of the 20th century diminished its

leading role in global affairs..

Tata Motors in U.K.

In the UK, Tata Motors has set up the Tata Motors’ European Technical Centre in Warwick, engaged

in the business of design engineering and product development for the automotive industry.

In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, to be launched later in the

year in India. A development that signifies a first for the global automobile industry, the Nano brings

the comfort and safety of a car within the reach of thousands of families. The high fuel efficiency also

ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an

affordable transportation solution with a low carbon footprint. Tata Motors’ portfolio comprises the

Tata, Jaguar and Land Rover brands.

Under the UK government's Automotive Assistance Programme (AAP), to develop and

manufacture the Tata Indica Vista Electric Vehicle in the UK

The loan will support the £25 million investment from Tata Motors to develop and

manufacture electric vehicles in the UK.

Loan will strengthen electric vehicle manufacturing expertise, securing and creating high value

engineering jobs in the West Midlands. "The government is determined to help the car industry to

exploit fully the opportunities offered by green manufacturing. Today we are backing Tata as Tata

backs Britain,” Business Secretary Lord Mandelson.

Introduction: Immigration Rules in UK

The current immigration categories for highly skilled workers, investors and entrepreneurs -

Highly skilled workers-Tier 1 (General) of the points-based system

No job offer, but you must demonstrate that you are highly skilled, have money to support yourself and can speak English

Closed to applicants outside the UK.

Entrepreneurs: Explains the requirements for applying under Tier 1 (Entrepreneur) of the points-based system

Investors :Explains the requirements for applying under Tier 1 (Investor) of the points-based system

Post-study workers: This section explains how you can apply under Tier 1 (Post-study work) of the points-based system.

Working in U.K.

There are three principal bases on which you may apply to bring non EEA nationals to work in the

UK:-

Work permit:  The work permit scheme enables UK based employers to recruit and bring employees

from outside the EEA to work in the UK.  However, strict and detailed rules apply to work permit

applications and in most cases the employee will need to have a UK degree level qualification.

The Department of Education and Employment issues all work permits through its Overseas Labour

Service (OLS).  It accepts applications only from employers based in the UK in respect of a specific

job.  The application must be made before the proposed employee arrives in the UK, typically taking

two to four weeks to process.  Generally speaking, there are three types of work permit:

A full work permit - must show that there is no other person within the EEA who can

perform the job to the required standard

An intra-group work permit -the employee must have worked for at least 6 months at a

relatively senior level in your organisation

Board level work permit – The individual must have responsibility for the day-to-day

running of the company in the UK, will have a number of years' experience at that level

and will command a salary of at least £50,000

Work permits can be granted for up to five years.  After four years, the employee may apply for

permanent residency in the UK (which, if granted, means that he or she will no longer require a work

permit to continue working in the UK).

Sole representative:  If you have no existing branch or subsidiary or representative in the UK, 'sole

representative' may enter the UK to establish a branch or a subsidiary without a work permit. 

However, in all cases, entry clearance must first be obtained from the British Embassy or Consulate. 

The applicant must provide:-

a full description of your company's activities;

evidence that your company will establish a branch or subsidiary;

details of his or her job description and salary and a copy contract of employment;

a statement from your company that he or she will be its sole representative;

confirmation that he or she is an existing senior employee who can make important

decisions on behalf of your company and that he or she is familiar with all aspects of the

firm’s activities and policies; and

a current passport.

Although a sole representative does not need a work permit, other employees coming in from

overseas to work in a newly established branch will do.

Business visitor: Just sending individuals to attend meetings and contracts.

http://www.hamiltonpratt.com/pages/international/staffing

Employing Workers in U.K.

Finding Workers in UK

Prospective employees in U.K. have rights before they become employees.  They have a right to be

protected against discrimination on the grounds of gender, race, disability or marital status when

advertising or offering employment. Also trade union membership and activities may not be used as a

reason for refusing to employ a person. 

Worker's Rights in UK – Workers have a lot of rights in U.K. Businesses in the UK typically issue

an employment contract to each of their employees.  In addition to their contractual rights, employees

enjoy a range of statutory rights; including:-

Right to a written statement setting out certain basic terms and conditions (insofar as not

covered in any employment contract)

Right to a minimum period of notice

Right not be required to work for more than 48 hours a week on average (although

workers may agree to opt out of this protection);

Right not to be unfairly dismissed (the maximum compensatory award for unfair

dismissal is £55,000)

Right to compensation if made redundant (dependent on age and length of service, up to a

maximum of £8,100)

Right not to be discriminated against on the grounds of sex, race or disability (the award

of compensation for discrimination is not subject to any limit

Right to (paid) maternity and (unpaid) parental leave

Right to sick pay

Right to a minimum wage

Right to annual leave

Equal pay to men and women doing similar or comparable work

Health and Safety

Participative culture

Some of the relevant factors to be considered for employees from outside the UK to work in

the UK are-

Whether the employee's contract is with the UK subsidiary and/or is governed by UK

law

Where an employee is paid

Whether or not national insurance is paid by the employee in the UK

If the intention is that the employee will return to his or her 'home country‘

Whether the position filled by the employee has changed from the one which he or

she previously had while working in his or her 'home country'.

Critical Analysis- Staffing Approach of Tata Motors in U.K.

Based on the information regarding the rules for employing workers and staffing regulations in U.K.,

we critically analyze the 3 staffing approaches for Tata Motors in U.K.

1. Ethnocentric Approach- Headquarters from the home country makes key decisions,

employees from the home country hold important jobs, and the subsidiaries follow the

home country resource management practice.

Positives

- Availability of skilled labour in India

- Inexpensive labour in India

Negatives

i. Involves high transfer and salary costs 

ii. UK has changed its migration system and many of the old routes have

now closed – E.g. The Highly Skilled Migrant Programme, Work

Permits, Innovators and Investors Scheme

iii. Immigration Rules -points-based system (PBS), which will provide

greater clarity for employees and business

iv. Costs of registration: To register as a sponsor costs £1,000. If your

company is an SME the fee is £300. Each Certificate of Sponsorship

costs: £170. A work visa costs £205 and a business visa costs £65

v. The British government's independent Migration Advisory Committee

recommended that Britain reduce the flow of skilled non-EU labour

a. To protect British jobs during the current economic recession

b. Recommended to reduce the number of skilled workers from

outside the European Union by 10%,

c. Employers to be forced to increase wages for non-EU foreign

workers (removing one of the incentives for hiring foreign

labour), increase the qualifications that these workers must

have, and advertise job vacancies for a longer period of time

before they can be filled by non-EU foreign workers.

2. Polycentric Approach- Each subsidiary manages on a local basis. A local employee

heads a subsidiary because headquarters’ managers are not considered to have adequate

local knowledge. Subsidiaries usually develop human resource management practices

locally.

Positives:

a. UK Trade & Investment and our regional partners will recommend to

reputable, established employment agencies with networks of skilled workers

- Help you to identify the right people for your business

b. Utilising the UK’s strong national and regional public and private sector

networks

- How to recruit the right staff and let you know what support is

available to train them.

c. Eastern Europe -Best source of skilled migrants for companies in the United

Kingdom

d. 24% of human resource managers and 38% of manufacturers interviewed -

Eastern Europe provided the best source of foreign talent

e. 63% felt that government policy has little impact on their recruitment efforts

f. UK employers are taking an open approach to the immigration of skilled

workers This will put the UK economy at an advantage over the many

continental countries that also face severe skills crises, but that have far less

positive approaches to immigration and less flexible labour markets,"

according to Zach Miles, CEO of Vedior.

Negatives:

Manufacturing sector is experience the worst of the skills shortage problem. Half of the companies

interviewed expected the skills gap to widen. 39% of the public sector expects the situation to

deteriorate .Most commonly cited skills shortage - engineering (20%), skilled manual workers (10%),

financial capitalists (10%), managerial positions (9%), sales, IT and technicians (7%), and clerical

staff (5%)

Reference: http://www.numbersusa.com/content/news/august-19-2009/uk-cut-skilled-labor-influx-

protect-jobs.html

3. Geocentric approach - The company applies the global integrated business strategy

manages and staffs employees on a global basis. Like a company following geocentric

approach has for many years attempted to recruit and develop a group of international

managers from diverse countries. These people constitute a mobile base of managers who

are used in a variety of facilities as the need arises. Manager selection is based on

competency rather than nationality.

Positives:

a. TCNs are usually career international business managers with a wealth of experience.

b. TCNs are usually less expensive to maintain than PCNs

- TWO reports published by the TUC’s Stephen Lawrence Task Group in

December and January showed that black and Asian workers have had greater

proportional increases than white workers, this is because they are largely in low

paid jobs.

c. TCNs may be better informed about their host environment than PCNs

Negatives:

1. People from other nations may not be able to adjust in UK due to different culture.

2. Host country’s sensitivity with respect to nationals of certain countries

- UK Police statistics show that black people are seven times more likely to be

stopped and searched than white.

- Asian people are today twice as likely to be stopped and searched as white people.

Recommendations for staffing approach for Tata Motors in U.K.- Tata Motors U.K. at the lower

level should follow the Polycentric Approach as U.K. has a great talent pool in terms of skilled

labor and the regulations for working there also favor that. While for the Middle and higher

management it should follow the geocentric approach as done by Electrolux and Mahindra.

Examples

-Fosters: Foster’s Brewing International has business partnerships with leading local brewers in

the UK, Europe and the USA, and in Asia owns breweries in China, Vietnam, India, Fiji and

Samoa. Foster’s is currently ranked the number two selling brand in the UK; number one in

London, number seven across Europe, sixth largest imported beer brand in the USA; number two

beer brand in the Middle East and the most recognisable beer across Asia. Fosters adopts a

geocentric approach in which it fills a position with the best person suited for the job regardless

of nationality. This also allows Foster’s to adapt to their recruitment and selection practices to

different cultures.

-Electrolux is a vacuum cleaner company. It follows a geocentric approach. For many years it

has attempted to recruit and develop a group of international managers from diverse countries.

These people constitute a mobile base of managers who are used in a variety of facilities as the

need arises.

Mexico

Recruitment Considerations at Mexico

Hiring: In Mexico, jobs can be advertised specifically for men or women, with an age

range identified, and marital status specified as well. It is never advisable to try to hire

anyone without having talked to a lawyer. The rigidities in the law make firing very

difficult.

Minimum Wage Structure: Minimum wage in Mexico is about $100 USD a month plus

benefits, although few people in the formal economy make so little. The federal

government, depending on economic zone and trade, sets minimum wage. If one wants to

reduce the turnover rate one will most likely have to pay employees at least three times

the minimum wage.

Language: Knowing Spanish is essential for doing business. At least one bilingual

person working is important so staffing need to be done accordingly.

Benefits

As in Canada and the US a worker may be an employee or may be an independent worker

providing service under contract (por honorarios). In the latter case, employer is not responsible

for any benefits. In the former, minimum legal benefits include (but are not limited to):

Health insurance under the Seguro Social (IMSS)

15 days of wages at the end of the year (Aguinaldo)

Housing development (INFONAVIT)

Retirement funds (SAR)

Holidays (5 days of paid holidays a year minimum)

No more than an 8 hour working day with regular wages

Profit sharing. Workers are entitled to a small percentage of your profits. (10% of

the total)

Sometimes these regulations are ignored, especially when it comes to white-collar

workers.

Working Hours

Business Hours

All banks are open from 9:00am until 5:00pm, Monday through Friday. Some

banks have extended hours, including Saturdays, at some branches.

Supermarkets in Mexico City are open seven days a week, from 9:00am to

12:00am, although there are many that are open 24 hours a day.

In Mexico City, street front stores are usually open from 10:00am to 8:00pm.

In other cities hours may be shorter.

Working Hours for Factory Workers

The standard work schedule is Monday to Friday, eight hours a day and a

half-day on Saturdays. 

Working hours and days

According to Mexican law, the work week cannot be more than 48 hours

long.

Some workers get paid weekly; others may get paid bi-weekly (quincena).

Few workers get paid monthly.

Workers are usually under a 5.5-day workweek.

Legally, lunch hour must be paid for workers whose work shift includes lunch

time (3:00-4:00 pm).

Recruitment Practices followed in Mexico

High power distance cultures prefer a strong internal recruitment culture with no

participatory management from subordinates in the staffing process. In such cultures,

supervisors favour employees who are loyal, submissive, and trust-worthy.

Job applicants in Mexico feel a tremendous pressure on being youthful and attractive

as these characteristics seem the most sought after in job requirements.

Bio-data solicit recent photographs putting a lot of pressure on characteristics that are

not job-related

The collectivist cultures place a lot of emphasis on soft skills and therefore adopt

staffing practices that can predict such behaviour.

Personal references, succession planning (for employees already working in the

organisation) and psychometric tests seem to be the predominant methods of staffing

in Mexico.

The process of online recruitment does not allow for identifying of soft skills and

elaborate information exchange – therefore it is not a predominant staffing method

Critical Analysis- Staffing Approach of Tata Motors in Mexico

1. Ethnocentric Approach

Positives:

To ensure new subsidiary complies with overall corporate objectives and policies

Has the required level of competence

Assignments as control

Employment of Mexico-nationals eliminates language barriers, avoids adaptation of

Indians, reduces the need for cultural awareness training programs

Employment of Mexico-nationals allows a multinational company to take a lower profile

in sensitive political situations

Employment of Mexico-nationals is less expensive

Employment of Mexico-nationals gives continuity to the management of foreign

subsidiaries (lower turnover of key managers)

- The cost of talent in Mexico is lower than the western countries but higher than in

India

- The amount of technically qualified talent available in Mexico is lower than that of

India

- Training Indians towards the cultural sensitivity and language of Mexico is more in-

expensive than the other way round

- Speed at which operations can be started is higher in the case of ethnocentric

approach

- The core competence of the TATA group can be most efficiently replicated in this

case

Negatives:

Limits the promotion opportunities of Mexico, leading to reduced productivity and

increased turnover among the Mexico

Longer time for Indians to adapt to Mexico, leading to errors and poor decisions being

made

Difficult to bridge the gap between Mexico subsidiary managers and Indian managers at

headquarters ( language barriers, conflicting national loyalties, cultural differences)

Mexico managers have limited opportunities to gain experience outside their own country

Indian managers have limited opportunities to gain international experience

Resource allocation and strategic decision making will be constrained when headquarter

is filled only by Indians who have limited exposure to international assignment

2. Geocentric Approach

Positives:

Ability of the firm to develop an international executive team with equal contribution

from Mexico

Overcomes the federation drawback of the polycentric approach

Support cooperation and resource sharing across units in Mexico and other places

Negatives:

Mexico may use immigration controls in order to increase Mexico’s employment

Expensive to implement due to increased training and relocation costs

Large numbers of Indians need to be sent across borders

Reduced independence of subsidiary management

3. Regiocentric Approach

Positives:

Allow interaction between executives transferred to regional headquarters from

subsidiaries in the region and PCNs posted to the Mexico Region

Provide some sensitivity to local conditions

Help the firm to move from a purely ethnocentric or polycentric approach to a geocentric

approach

Mexican law dictates every auto company must build at that many per year and invest at

least $100 million.

This criterion allows automotive companies to:

- Qualify for tariff-free treatment when importing cars and auto parts from overseas, a

critical element in the supply chain.

- Applicable import tariffs for Indian cars without the investment requisite would be 20

percent

- A gap that would diminish any competitive advantage gained from producing in

India.

- Analysts see the move of Tata as a direction to land on the US market, by taking

advantage of North American Free Trade Agreement.

Negatives:

Produce federalism at a Mexico-level rather than a country basis and constrain the firm

from taking a global stance

Staff’s career advancement still limited to Mexico regional headquarters, not to India

Recommendations –Staffing Approach

Ethnocentric approach of staffing because

Cost of talent in Mexico -considerably higher than the cost of talent in India

Amount of technically qualified talent available in Mexico - lower than that of India

Training Indians towards the cultural sensitivity and language of Mexico is more in-expensive than the other way round

Speed at which operations can be started is higher in the case of ethnocentric approach

Core competence of the TATA group can be most efficiently replicated in this case

Kenya

Kenya is World’s 47th largest country with 37 million population having 0.5 Million Indians having

42 ethnic tribes having 50% population below poverty line. And the main Language there is Swahili.

Its education system is similar to India: 8-4-4, where they follow grade system and primary education

is free. It has significant portion of foreign influx from non-resident Kenyans having manufacturing

accounting for only 14% of its GDP. Automotive Industry in Kenya is mainly in retailing and

distributing the vehicles.

Push and Pull Factors to go to Kenya

It has been one of the most stable political conditions in Africa. A market-based economy, it is

liberalized external trade system. It offers competitive investment incentives and has a business

friendly tax system. Some of the measures that KMI (Kenya Motor Industry Association) has been

advocating include:

Implementation of strict criteria on importation of second hand vehicles

Incentives to promote local assembling of commercial vehicles

Export incentives aimed at encouraging car manufacturers to expand operations in

the region.

Along with all the other, Kenya has a well developed social and physical infrastructure second only in

South Africa making it attractive for companies seeking entry in African continent.

It has low cost, good quality labor available.

Kenya is well placed to offer technical, administrative and general back office services.

Specialized training colleges, internationally affiliated institutes.

TATA is planning to expand on SKD (Semi-Knock down) operations in Kenya – extending it to

passenger vehicles and TATA Nano is coming to Africa, because of all these factors.

Culture Its culture is similar to that of India. Women education is not encouraged much specially at graduation

level and in streams like engineering. Its corruption Index is very high.

Critical Analysis- Staffing Approach of Tata Motors in Kenya

1. Ethnocentric

May yield results because culture of India and Kenya is not much different

Have chances of problems from family side

Government Regulations on local employment

Increased costs

2. Polycentric

Higher sensitivity to local environment

May help in securing political connections

Lower costs

Problem: Unavailability of talent for higher posts. Kenya has been susceptible to high

brain drain

3. Geocentric

Can combine advantages of both Ethnocentric and Polycentric approach

A careful and well developed Recruitment Selection Strategy would be needed

Recommendations –Staffing Approach

At Worker Level there should be Local people (PCNs) that should be staffed as Government

Regulations support them along with availability of low cost, skilled labor. While at the Lower-

Middle Managerial Level there should be Majorly PCNs as they understand local environment, local

people (workers), Understand local rules, regulations and laws and there is Availability of Talent that

can be easily trained and developed according to organization’s needs (PDI score).

At Senior Management Level: A mix of HCNs, TCNs and PCNs because –

It will help align the employees to TATA culture which is not difficult considering

similarities between two cultures

TCNs having work-ex and originating from Kenya may be preferred

For HCNs, work-ex, achievement orientation, long term growth, ability to adjust in lesser

developed countries, cross-cultural sensitivity could be important factors

For both HCNs and TCNs, their family situation like aspirations of their spouse or children (if

any) would be very important factors owing to a different life style, and lesser opportunities.

Hence, it would be advisable to send the HCNs or TCNs recruited to visit the place for some

time before they take up the assignment with full responsibility

Examples

Mahindra & Mahindra has appointed a local Kenyan Company to distribute its

product Scorpio.

Suzuki has followed a similar strategy of staffing

References

1. ‘Subsidiary staffing and initiative-taking in multinational corporations A socio-

political perspective’ Christoph Do¨rrenba¨cher Berlin School of Economics and

Surrey Law, Berlin, Germany, and Mike Geppert School of Management, University

of, Guildford, UK

2. http://www.citehr.com/13375-ethnocentric-approach-recruitment.html

3. www.numbersusa.com/content/news/august-19-2009/uk-cut-skilled-labor-influx-protect-

jobs.html

4. http://www.workpermit.com/news/2007-06-27/uk/eastern-europe-labor-pool.htm

5. http://www.ukti.gov.uk/investintheuk/faqs/item/109057.html

6. http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/uncertainty-

avoidance-index/

7. http://www.geert-hofstede.com/hofstede_east_africa.shtml

8. http://www.ibe.unesco.org/International/ICE47/English/Natreps/reports/kenya.pdf

9. http://www.ict.go.ke/oldsite/pdfs/do-it-in-Kenya.pdf

10. http://www.epzakenya.com/UserFiles/File/Kenya%20Business%20Environment

%20Report.June05%20final.pdf

11. http://ismailimail.wordpress.com/2010/05/21/daily-nation%C2%A0-opinion%C2%A0-

kenya%E2%80%99s-education-culture-needs-real-transformation/

12. http://en.wikipedia.org/wiki/Kenya

13. http://expogr.com/kenyaauto/media.php

14. http://www.pwc.com/ke/en/industries/automotive.jhtml