Abstract

The present paper establishes the concept of Non-work Practices and explores its impact on organizational commitment. Drawing upon research conducted in four multinational corporations operating in India, the paper examines the degree to which non-work practices are accepted by Indian employees and their relationship with organizational commitment. Concurrent mixed methodology was adopted in which both qualitative and quantitative data were collected. Template analysis was carried out to interpret employees’ feelings and experiences, and to identify the emerging trends. Factor analysis was carried out to find factors of non-work practices, and regression analysis was carried out to study relationship between organizational commitment and non-work practices. The article discusses the findings related to non-work practices: how these practices are experienced and perceived by Indian employees and what is their impact on the commitment of employees, which would in turn affect the effectiveness of the organization.
 It was found that since most of the non-work practices were transplanted from the parent company, they were perceived as alien (except in the Anglo-American MNC). Host country employees showed little enthusiasm in carrying out those practices and hence these had no positive impact on their organizational commitment.

Highlights

  • Many researchers have pointed out that due to the increasingly important role of Multinational corporations (MNCs) in the global economy (Porter, 1986; Prahalad & Doz, 1987; Rosenzweig & Singh, 1991) they are of particular importance to international comparative management research (Fenton-O’Creevy & Gooderham, 2003).The success of multinational corporation (MNC) is attributed to the effectiveness of human resource management (HRM) (Bartlett & Ghoshal, 1994, 1995; Pucik, 1992)

  • This study concerns the perception of the host country employees of Non-work Practices (NWPs) by MNCs to their overseas subsidiaries

  • Using data collected from MNC subsidiaries located in India, we examine the degree to which these practices affect Organizational Commitment (OC) of the host country employees

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Summary

Introduction

Many researchers have pointed out that due to the increasingly important role of Multinational corporations (MNCs) in the global economy (Porter, 1986; Prahalad & Doz, 1987; Rosenzweig & Singh, 1991) they are of particular importance to international comparative management research (Fenton-O’Creevy & Gooderham, 2003).The success of MNCs is attributed to the effectiveness of human resource management (HRM) (Bartlett & Ghoshal, 1994, 1995; Pucik, 1992). Kostova & Roth (2002) examined the adoption of an organizational practice by subsidiaries of a MNC They defined an organizational practice as an organization’s routine use of knowledge for conducting a particular function that has evolved over time under the influence of the organization’s history, people, interests, and actions. These are expected to achieve the desirable results of more advanced management practices. We introduce here a term “Non-work Practices (NWPs)” as a branch of HRM practices We define these as non-task routine activities initiated by the organization that are not used to produce and deliver products and services.

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