HRM innovations by Indian and foreign MNCs operating in India: a survey of HR professionals

Abstract

The purpose of this study is to examine the innovative practices adopted by Indian and foreign high-tech firms operating in India as well as Indian human resource management (HRM) managers' perceptions of ‘ideal’ staffing practices. The research question was examined using quantitative and qualitative methods. First, three case studies were conducted to explore the different types of innovative HR practices prevalent among technologically intensive MNCs operating in India. Second, an online survey of 66 Indian HRM managers was conducted to find out how they viewed the term ‘innovation’ in the context of HRM practices. The results revealed differences between foreign firms' perceptions of innovations in HRM (HRMI) and their Indian counterparts. There is a greater emphasis on parent subsidiary alignments in foreign MNCs, something that Indian MNCs are less concerned with. For now, the Indian MNCs are clearly focused on managing performance from within, and have put in place innovative culture-building practices. In contrast, foreign MNCs are focused on keeping the balance between parent and subsidiary and standardizing the HRMI practices in various global areas. Foreign MNCs also tend to be conscious of the cost and performance aspects more than Indian MNCs.