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Journal of Asia Business StudiesInvestment and collaboration: the Indian model for “best” HRM practicesPramila Rao,

Article information:To cite this document:Pramila Rao, (2016) "Investment and collaboration: the Indian model for “best” HRM practices", Journal of Asia BusinessStudies, Vol. 10 Issue: 2, pp.125-147, https://doi.org/10.1108/JABS-03-2015-0033Permanent link to this document:https://doi.org/10.1108/JABS-03-2015-0033

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https://doi.org/10.1108/JABS-03-2015-0033

https://doi.org/10.1108/JABS-03-2015-0033

Investment and collaboration: the Indianmodel for “best” HRM practices

Pramila Rao

Pramila Rao is AssociateProfessor at the School ofBusiness, MarymountUniversity, Arlington,Virginia, USA.

AbstractPurpose – The purpose of this paper is to examine human resource management (HRM) practices ofthe top 25 companies identified as “best” in India in 2011. This paper provides insights into HRMpractices of a leading country in Asia that is playing a very important role in the global economy.Design/methodology/approach – This conceptual paper will use for its research analysis thebusiness reports of the Outlook Business Magazine and AON Hewitt. AON Hewitt is a global humanresource consulting company and is an established authority in identifying “best” companies in Indiasince 2004. A qualitative content analysis was done of the business report to identify predominantthemes.Findings – The analysis identified how the “best” 25 Indian companies offer progressive HRMpractices that required careful investment and collaboration. This research showcases seven specificHRM themes that include elaborate staffing, investment in learning, work–life balance, egalitarianpractices, developmental performance culture, generous benefits and engagement initiatives.Practical implications – This paper provides preliminary guidelines for global practitioners who maybe interested in doing business in India. It also provides a model of “best” HRM practices adopted by25 companies that could help other organizations identify successful HRM practices in India. Amongthe 25 companies, 16 are Indian companies and 9 are subsidiaries of multinationals.Originality/value – This paper outlines HRM “best” practices of organizations in an emerging Asianeconomy that has not been addressed before. This paper hopes to bridge this paucity in the extantliterature by showcasing the “best” HRM practices from 25 “best” companies in India. It also providesan Indian model of “best” HRM practices that can be tested by other scholars for future studies.

Keywords Emerging markets, Human resource management

Paper type Conceptual paper

1. Introduction

The BRIC (Brazil, Russia, India and China) economies have become key participants in theglobal economy showcasing excellent gross domestic product (GDP) rates. These nationshave specialized resources that attract varied foreign direct investments (FDIs) (Yang et al.,2008). India is considered a strong player with several of its industries demonstratingglobal acumen (Friedman, 2006; Gannon and Pillai, 2010; Meredith, 2008). The Indianeconomy has been experiencing robust economic growth since the 1990s with an averageof 8-10 per cent annual increase in GDP, suggesting a strong business environment(Cappelli et al., 2011).

From the early 1990s, the Indian government shifted from an insular trade policy to that ofa progressive one towards FDI and multinationals (Jain et al., 2012). For example, Indiaranked fifth in the FDI Confidence Index for 2013 and second in 2012. This global index,established in 1998, provides multinationals valuable insight of the market confidence(political, economic and legal) of different countries as identified by prominent businessleaders. Leading multinationals have been establishing in India, demonstrating theirbusiness confidence for the Indian market. In 2012, India received $25.5bn in FDI from

Received 25 April 2015Revised 18 July 20157 September 2015Accepted 9 September 2015

DOI 10.1108/JABS-03-2015-0033 VOL. 10 NO. 2 2016, pp. 125-147, © Emerald Group Publishing Limited, ISSN 1558-7894 JOURNAL OF ASIA BUSINESS STUDIES PAGE 125

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http://dx.doi.org/10.1108/JABS-03-2015-0033

multinationals in different countries such as Diageo (Britain), Starbucks (USA) and Ikea(Sweden) (Laudicina et al., 2013).

Today, more than 100 of the Fortune 500 US companies have their research anddevelopment (R&D) centers in India. For example, Dell has recruited almost 20,000software engineers in India. Similarly, Pearson Educational Technologies, an educationalservice leader, has moved its entire e-learning development to India because of thesophistication of the local information technology (IT) industry (Frauenheim, 2006; Khozem,2002; Zakaria, 2006). As these multinationals establish their Indian subsidiaries, they makespecific choices with regard to the kind of human resource management (HRM) practicesthey should follow (Yang et al., 2008).

Traditionally, Indian organizations followed a paternalistic management style with a lot ofemphasis given to personal relationships among employees. The concepts of loyalty andtrustworthiness were important predictors for employees’ successes and professionalachievements. The increased presence of multinationals in India has prompted localorganizations to slowly change their conventional practices. The outlook of the Indian HRMdepartments transformed placing an increased emphasis on organizational efficiency (Jainet al., 2012). Today, several large and well-established Indian organizations offerprogressive HRM practices such as stock options, merit-based pay, flexible workschedules and part-time jobs, which, until relatively recently, were not common in theIndian corporate world (Ramamoorthy et al., 2005; Som, 2006). For example, Tata Iron andSteel Company (TISCO), India’s oldest steel plant, replaced seniority-based promotionswith performance ethic programs (PEP) to create accountability among its employees.Arvind Mills, a textile leader, introduced Selection Information System, a recruitmentpractice that allowed HRM managers to offer different online recruiting options which werenot normally adopted (Som, 2006).

Cappelli et al. (2011) in their study of 98 Indian organizations suggest that the hallmark ofIndian business leaders is their attitudes towards their employees and customers. TheIndian business leaders indicated that investment in HRM practices and collaboration withtheir stakeholders are their greatest strengths. Indian HRM leaders have prominent roles intheir organizations, with 87 per cent of them suggesting they work with the top managementteams in strategic operations. HRM leaders have realized that people managementpractices are critical to create those lasting impressions with both customers andemployees.

The purpose of this research is to detail the HRM practices of 25 “best” companies in India,as outlined by the Aon Hewitt research study. The results from this study were madepublicly available, making it easy for researcher to analyze relevant data. The format of thepaper is organized as follows:

� the theoretical framework identifies Pfeffer’s classic “best” practice model. This sectionintegrates a literature review of conceptual studies from different global regions on“best” practices;

� the methodology details the research method of content analysis adopted;

� the results describe the seven HRM themes from the “best” companies;

� the discussion section integrates the literature and results to enhance the reader’sunderstanding of this study; and

� the conclusion provides the contributions and a conceptual model of “best” practicesin India.

The focus of this paper is to provide three clear objectives. First, it will showcase the HRMpractices of the 25 best companies in India as identified by an established study. Thesecompanies include both Indian (16) and multinational subsidiaries (9) providing both emicand etic perspectives. Second, this paper showcases a comprehensive conceptual model

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of Indian “best” practices. This will allow scholars and practitioners to understand if thesepractices are idiosyncratic. Third, this article will address a paucity in the extant literatureas it details management practices from an emerging Asian country that is not usuallyresearched like those of the Western nations (Pathak et al., 2005).

The concept of identifying best companies has become a global practice, as it helpsbenchmark superior management practices from a wide range of organizations. Forinstance, in the USA, the Fortune 100 list, established in 1998, provides an annualidentification of the best companies. The understanding of the “best” practices becomesan important benchmarking tool for organizations that may wish to adopt new practicescongruent with those of the best (Bolton and Wibberley, 2007; Joo and McLean, 2006;Joyce, 2003).

2. Theoretical framework

This paper showcases Pfeffer’s model of best practices to help understand howorganizations in India adopt management practices that are contextually congruent.Pfeffer’s classic model was one of the early trends in identifying “best” practices inorganizations (Pfeffer, 1998).

Pfeffer (1998), one of the early advocates of best practices, introduced 17 best practicesthat firms should adopt for superior performances (Pathak et al., 2005). He subsequentlycondensed these practices to seven HRM themes, which are 1) job security; 2) superiorhiring practices; 3) team-based structures and decentralization; 4) performance-basedcompensation; 5) elaborate professional development; 6) egalitarian practices; and 7)transparency of financial information (Pfeffer, 1998). These practices when integrated withone another provide very effective organizational outcomes, such as increasedproductivity, innovation and retention, among several others (Pathak et al., 2005).

However, the universality of these “best” practices models in other social, economic andcultural contexts has been questioned. Can cultures that are ingrained in power-distanceadopt decentralization and teams? (Pathak et al., 2005; Marchington and Grugulis, 2000).Pfeffer (2006) clearly cautions that “best” practices might get easily lost in translation ifpractitioners try to adopt them without understanding its applicability in their businessenvironments. He compares the roles of HRM practitioners to those of doctors, suggestingthat HRM practices are like medical treatments that have to be customized. If “best”practices are imitated without understanding its rationale, then negative results coulddefinitely emerge. For example, several US companies tried to mimic the forced rankingperformance appraisal method of General Electric (GE), resulting in dysfunctional behaviorin several organizations. The culture of the senior leaders or their “mental models” mightalso be the linchpins when trying to implement best practice changes (Pfeffer, 2005,p. 123).

2.1 Literature review

Several global studies (Hinkin and Tracey, 2010; Bolton and Wibberley, 2007; Joo andMcLean, 2006; Joyce, 2003) have examined “best” practices from various industries toexpand and enrich this body of literature.

Hinkin and Tracey (2010) did an analysis on 21 companies in the USA from variousindustries such as hospitality, food service and health care, among several others. Theyprimarily used a variety of secondary sources such as company Web sites, journals and theInternet to understand these best practices. Several themes of practices emerged from thisconceptual study such as nurturing culture, transparent communication, work–life balancepractices, superior hiring practices, generous rewards, elaborate professionaldevelopment and continuous training. An example to illustrate a specific “best” practice –Whole Foods, a company from this list, adopts team hiring practices with the rationale thatthe team should have a strong “voice in the hiring decision” for any new incoming

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 127

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members. This will help maintain the harmony and sustain the productivity of the team(Hinkin and Tracey, 2010, p.8).

Bolton and Wibberley (2007, p. 150) did a conceptual study on the top ten bestmedium-sized firms from the Sunday Times list of 100 (UK) best companies. They identifiedthat the hallmark of the “best” companies is to provide “bundles” of HRM practices tocreate engaging environments. HRM practices provided holistically will offer the bestoutcomes for organizations. Their research suggested the “best” medium-sized companiesdo to provide small “bundles” of practices (such as rewards, professional development, jobsecurity) to create and provide a sense of “dignity at work” for the employees.

Joo and McLean (2006) suggest that the 20 “best companies” from the Hewitt’s BestEmployers in Asia usually have certain distinct characteristics. First, “best” companiesachieve superior recruiting outcomes as their reputations naturally attract talent. Second,employees working for “best” companies demonstrate a strong work commitment which isan outcome of the investment these companies have made on their employees. Finally, theemployees benefit immensely from the variety of innovative and progressive HRM practicesthese best companies offer.

Joyce (2003) did a content analysis of 30 Fortune’s 100 best companies in the USA andidentified the following practices:

� knowledge capital;

� nurturing workplace;

� work–life balance practices;

� diversity initiatives; and

� engaging workplace.

These practices create a behavior, recognition, signaling (BRS) cycle, as they gestureemployees to behave in a way almost tacitly mandated by their excellent reputations(Joyce, 2003).

These scholars (Hinkin and Tracey, 2010; Bolton and Wibberley, 2007; Joo and McLean, 2006;Joyce, 2003) from their various conceptual studies from different global regions provide similarthemes, suggesting that the “best” companies use various resources to develop engagingemployees and compelling cultures. These organizations conscientiously take the efforts tocreate their own brand of loyal employees and products, making them distinguished in theirown industries.

These articles suggest that understanding “best” practices are becoming a valuablebenchmark for HRM practitioners. The concept of identifying best practices has become acommon practice in most nations, as it provides a gold standard for other firms in theindustry. The business reports (Hewitt, Great Places to Work, Sunday Times BestCompanies, etc.) on best practices are publicized in various forms garnering a lot of mediaattention among industry practitioners (Bolton, 2006; Bolton and Wibberley, 2007; Joo andMcLean, 2006; Joyce, 2003).

There has been no conceptual studies analyzing HRM practices of the best companiesfrom a leading Asian economy, such as India. The objective of this paper is to fill this gapin this extant literature by describing these practices in a detailed manner. This researchstudy will help global practitioners understand Indian HRM practices better by providing ayardstick as to what is considered “best” in the Indian corporate and cultural context.

3. Methodology

This study adopts content analysis to systematically analyze an extensive business report(60 pages) from the Outlook Business Magazine and AON Hewitt of 2011 to identify thebest Indian HRM practices. Joyce (2003) also did a content analysis of 30 Fortune’s 100


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best companies in the USA from various secondary sources to identify superior HRMpractices.

The data source, Outlook Business Magazine and AON Hewitt of 2010, is consideredreliable and has been used for more than a decade in India. There are several othercompanies, such as Great Places to Work, Mercer, etc., that also identify similar results.However, these reports only identify the names of the companies with brief-write-ups. Theydo not provide extensive reports like the one used for this study. AON Hewitt is a globalhuman resource consulting company and is an established authority in identifying “best”companies in India since 2004. It took eight months for the company to identify the “best”companies for its list of 2011. The study was open to all organizations and 200 firmsparticipated. From these 200 firms, 25 organizations were ranked the “best” based on threeclear criteria (organization data, onsite visits and panel decisions). The data gathered fromorganizations included surveying employees (randomly selected), CEOs and HRM leaders.Three kinds of surveys were adopted in this data collection process that included employeeopinion survey, CEO questionnaire and people practices inventory (Hewitt, 2010).

The surveys assessed employees’ perceptions, CEOs’ contributions to HRM and HRMleaders’ viewpoints on current practices. Based on the organization data, 20 per cent of theparticipating organizations were randomly audited by onsite visits to verify if thesemanagement practices are being implemented. Finally, a five member panel of judgescomprising both practitioners and scholars reviewed all the data and collaborated to arriveat the best list of 25 companies. The chair of this panel had extensive practitioner andacademic experiences that scaled over four decades. The original completed surveys bythe employees were not made accessible to the public; however, the aggregate resultswere condensed into a comprehensive business report of 60 pages (Hewitt, 2010).

Content analysis is widely used in management research. In all, 98 of the articles that werepublished between 1980 and 2005 adopted this methodology (p. 23). Researchers haveidentified several advantages with this methodical method. It can be used to analyze bothindividual and collective data of different organizational topics. Second, it allowsresearchers to perform two kinds of data investigation: numerical and interpretativeanalysis. Third, content analysis does not have any bias that may be usually associatedwith either qualitative or quantitative investigations. Fourth, the results of the contentanalysis can be corroborated by triangulation to ensure reliability of data. Finally, it is alsoconsidered non-invasive on respondents’ time and personal space (Duriau et al., 2007).

Content analysis requires certain procedures to be followed. The first step for theresearcher is to choose a reliable source of data (annual reports, public reports, interviews,field notes, Web sites, etc.) relevant to the study in question. Second, the researcher hasto code or define appropriate units of analyses (words, sentences or paragraphs) for theentire data set. Third, the researcher has to analyze the units of analyses into percentagesor frequencies to get meaningful categories (Duriau et al., 2007; Silverman, 2000).

This study followed all these procedural steps. It identified a credible source (OutlookBusiness Magazine & AON Hewitt) to study this phenomenon of best practices in Indianorganizations. Second, the report was read several times by the researcher to define andcode sentences and paragraphs. To further help with the coding, a matrix was createdidentifying HRM themes with common goals or similar outcomes. The researcher identifiedseven themes (such as leadership development, professional investment, etc.) afterreviewing the entire data. The final step included calculating and providing percentages tojustify these themes (Table III).

Content analysis allows researchers to use additional methods such as triangulation andinter-coder reliability to enhance the reliability of the study. This research adopted datatriangulation to enhance the consistency of the results (Yin, 2003). Several databases, suchas ABI Global Inform, Academic Search Complete, Business Source Complete, ArticlesFirst, Google Scholar, Proquest Research Library and company Web sites, that provided a


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variety of information (scholarly, non-scholarly and institutional) were used to garnerinformation on these companies. Other studies have adopted similar methods to enhancethe reliability of their studies (Hinkin and Tracey, 2010; Bolton and Wibberley, 2007; Bolton,2006). Inter-coder reliability is also an important step for content analysis. This analysisdid not use multiple coders to interpret the coded data, which might be considered alimitation. Other studies (Joyce, 2003) also did not use multiple coders for their contentanalysis of 30 companies as the principal investigator coded the entire data.Researchers suggest that the reliability for small samples (such as these) will not beaffected if a systematic procedure is followed (Silverman, 2000; Joyce, 2003). Thisstudy followed all the steps for content analysis as suggested by research experts(Duriau et al., 2007; Silverman, 2000).

This paper describes and analyzes the HRM practices of 25 “best” companies. Table Iidentifies their names, the number of employees, industry, type of ownership (private/public) and also country of ownership. These companies represent a range of industriessuch as: information technology (5), health care (1), financial services (1), hospitality (1),utilities (1), telecommunications (3), automotive (2), conglomerate (2), consumer goods (2),electronics (1), education (1), steel (1), restaurants (1), business process management (1),consumer electronics (1) and pharmaceutical (1).

4. Results

The researcher grouped comparable practices together and identified a cluster of seventhemes from this content analysis. The identification of these themes was furtherstrengthened by doing a percentage (%) calculation to identify how many companiesamong the 25 firms offered these practices. The seven themes and their respectivepercentages identified are as follows:

Table I Outlook AON Hewitt 2011 list of the 25 best Indian companies

# Name No. of employees* Industry Ownership Country of origin

1 Hindustan Unilever 16,500 Consumer goods Public India2 Aditya Birla Group 133,000 Conglomerate (metal, cement, textiles) Private India3 LG Electronics 3,000 Consumer electronics Private South Korea4 Godrej Consumer Products 9,700 Conglomerate (consumer products) Private India5 Bharti Airtel Limited 21,548 Telecommunication Public India6 NTPC 25,944 Utilities (energy) Public (state-owned) India7 Becton Dickinson 500 Health care Private USA8 Aircel 500 Telecommunications Private India9 Wipro 136,734 IT services, IT consulting Public India

10 Marriott Hotels India 3,500 Hospitality Private USA11 Kotak Mahindra Bank 20,000 Financial services Private India12 Scope International 5,000 Information technology Private UK13 Dr Reddy’s Lab 14,923 Pharmaceutical Public India14 Whirlpool India 10,000 Consumer goods Public15 Maruti Suzuki India Ltd 6.903 Automotive Public Japan16 Canon India Pvt. Ltd 1200 Electronics Private Japan17 Ford India Pvt. Ltd 10,000 Automobile Private USA18 Tata Teleservices 8,000 Telecommunications Public India19 Mindtree 14,202 Information Technology Private India20 NIIT 3,324 Education (for-profit) Public India21 Tata Steel 80,391 Steel Public India22 Jubilant FoodWorks 15,000 Restaurants Public India23 Cognizant Tech Solutions 145,132 IT services, IT consulting Public India24 First Source Solutions 26,000 Business process management Public India25 Aegis 10,000 Information technology and services Private USA

Notes: *This column represents values identified at the time this research was conducted.Source: This list of best companies has been obtained from http://was2.hewitt.com/bestemployers/apac/english/pdfs/HewittBEIndia2011study.pdf


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http://was2.hewitt.com/bestemployers/apac/english/pdfs/HewittBEIndia2011study.pdf


1. leadership development (40 per cent);

2. professional investment (64 per cent);

3. egalitarian practices (33 per cent);

4. developmental appraisals (20 per cent);

5. family-friendly practices (32 per cent);

6. engagement practices (56 per cent); and

7. generous benefits (32 per cent).

The analysis from this research suggests that professional investment, engagement andleadership development practices are the most frequently occurring themes for thesecompanies. For example, 64 per cent of the 25 firms invested in some kind of professionaldevelopment for their employees. The HRM practices offered for employee developmentincluded a gamut from virtual academy to corporate university to international trainingamong several others. The most common engagement practices offered by these firmswere empowerment, ownership (of tasks), job rotation, awards and expanding job roles.The leadership initiatives ran the breadth from structured programs to live workexperiences to global forums. The specific HRM practices offered by these 25 companiesunder each of these seven themes are listed in Table III.

The next section will address the predominant practices under each of these seventhemes. The ranks of the company are provided in parenthesis when its name appears forthe first time in this section.

4.1 Leadership development/succession planning

These organizations painstakingly invest in long-term career management initiatives forcarefully developing their employees. These staffing practices make employeesexperience a deep sense of commitment and loyalty as they are groomed for leadershippositions (Kimes, 2009). Succession planning is also contextually meaningful as long-termplanning and future orientation are culturally embedded practices. The Indian society isknown for planning ahead for both their professional and personal work (Gannon, 2004).

The Aditya Birla Group (Rank 2) invests in succession planning for its top 100 leaderscarefully crafting their career paths. These leaders, referred to as the “corporate cell” (Som,2010, p. 557), report directly to the chairman (or CEO) and are provided full autonomy todevelop and better their leadership skills in their business units. LG Electronics (Rank 3)has career planning initiatives for their top 500 high-performing leaders and grooms themover a five-year period. Wipro (Rank 9) has a well-defined succession planning system forcritical leadership positions. It identifies three prospective employees for significantleadership positions, so that the organization always has a well-defined talent pipeline forcritical jobs (Hewitt, 2010). These examples suggest that leaders in these Indianorganizations are carefully nurtured (Chhabria, 2010). Tata Steel (Rank 21) invests infocused leadership development programs such as the Global Leadership DevelopmentProgram (GLDP), which involves annual meetings among domestic and global leaders ofthe company to discuss and learn best practices from one another. These structuredprofessional initiatives have contributed significantly to the increased productivity of steel(Tata Steel Annual Report, 2012).

Talent Transformation at Wipro is responsible for developing proficient leaders for local andglobal projects. Project managers are identified after a careful review of the employees’annual performances. Once identified to lead projects, these managers take technical testsand behavioral training programs to identify their skill levels. These results are reassessedby senior leaders and are followed by simulation programs. In such programs, much of thetechnical details of the actual jobs are replicated to ensure that employees transition to


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real-life projects smoothly. Employees’ performances are evaluated on the jobs followed bydevelopmental opportunities to groom them to become effective leaders (Chhabria, 2010).

NIIT (Rank 20) develops its employees via “live” domestic and global projects to ensurethat its leadership talent is “homegrown” (Hewitt, 2010, p. 43 & 44). As a part of theleadership development training, high-performing employees are cross-trained in severalfunctions (sales, education, etc.) to get a holistic knowledge about the company’s missionand goals. In all, 80 per cent of the company’s leadership talent is developed from its ownranks.

Canon India (Rank 16) grooms its high-performing employees through professionaldevelopment or project opportunities for mid and senior management positions. TheseHRM strategies (professional learning or work experiences) help build excellentcompetencies for leadership levels. The company hires 25 per cent of its managementtalent internally, as its HR philosophy dictates that internal employees are its best sourcesof talent. These employees understand both the internal and industry culture very well,making them excellent candidates. Similarly, Ford India (Rank 17) hires most of itsmanagement talent from its internal labor source. It has structured its succession planningvia formal programs such as the People Development (PDC) Committee and the IndividualDevelopment Program (IDP). PDC initiatives allow employees to get leadership mentoringfrom senior managers; IDP allows individuals to seek leadership opportunities in the firm’sdomestic or overseas subsidiaries (Hewitt, 2010).

4.2 Professional investment

These organizations provide several innovative ways to enhance their employees’knowledge. They collaborate with local universities, provide tuition assistances, offercomprehensive training and structure mentoring among other developmental practices(Wadhwa et al., 2008).

Wipro has created a program called Campus Connect, which allows it to form strategicalliances with leading technical colleges to recruit the brightest talent. The company offershigh-performing students from leading technical institutions to work on actual projects. Thishelps the firm capture the best and also benefit from a mutual learning spirit. Wipro haslearning centers large enough to provide classroom training for 5,000 employees. Itprovides almost four months of training for new applicants (Wadhwa et al., 2008). Wiproalso invests in its senior leaders by financing their graduate education overseas in leadingglobal universities (such as Wharton in the USA) and high-profile national universities.

Dr Reddy’s Lab (Rank 13) invests carefully in “growing” their talent via several educationalopportunities. Employees can attend in-house technical seminars or external conferencesto keep themselves constantly updated on the latest trends in the pharmaceutical industry(Wadhwa et al., 2008). The organization also provides excellent opportunities for theiremployees to pursue graduate technical programs by collaborating with leadinguniversities (Hopper and Balakrishnan, 2003). Dr Reddy’s Lab has partnered with leadinglocal colleges to create customized graduate programs that tailor entry applicants to thespecific demands of its industry. The company also has an in-house leadership academyto coach their leaders. Such painstaking collaboration reflects an incredible interest by theorganization in creating its own distinctive talent (Hewitt, 2010; Wadhwa et al., 2008).

National Thermal Power Plant (NTPC) (Rank 6) partners with leading local universities tooffer continuing education for middle and senior managers. These employees are fullycompensated even though they may not be able to attend their normal work schedulesbecause of their academic curriculum. Becton Dickinson (Rank 7) provides learningcourses via its virtual universities and has their own internal leaders play the roles ofcorporate teachers (Hewitt, 2010).

Whirlpool (Rank 14) offers part-time employment opportunities for college students andintegrates top performing students from this pool into their workforce. This allows them to


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capture fresh talent that they can mold to their organizational culture. Their training for newentrants is considered exemplary and lasts for almost 15 months (two months on-the-jobtraining, three months of structured mentoring and nine months of cross-training). Forleadership positions, high-performing employees in this company are provided training foralmost 40 hours per year (Wadhwa et al., 2008). In 2011, the company spent approximatelyabout five crores (Indian Rupees) ($50m or €1m) on providing a variety of training withmentors, coaches and subject matter experts (Hewitt, 2010).

Whirlpool requires its senior managers to assign time on a weekly basis to mentor theirjunior employees. The benefits of such real-life coaching between superiors andsubordinates are twofold. It allows junior and senior employees to develop strongprofessional bonds, creating loyal workforces. Second, junior employees gain knowledgeof actual business lessons from the experienced gurus (teachers). Similarly, Wipro hasrealized the critical need to “grow” leadership talent and has created the concept of“master coaches” or experienced internal leaders (Mishra, 2011, p. 229). These leaders areresponsible to develop and train their subordinates into effective leaders (Mishra, 2011).Organizations have also stepped away from their conventional norms to adopt currenttrends in their industries. Aditya Birla Group invests in internal training academies andonline learning to train their brightest recruits. This is considered a big step for a companythat has been family-owned and traditionally hired and trained employees informally (Som,2010).

Jubilant Foodworks (Rank 20) invests more than 11, 000 hours of annual training for itsemployees via programs such as Happiness Delivered and Winning Edge creating a verycompetent workforce. It also provides tuition reimbursement at both the undergraduate(75 per cent) and graduate (50 per cent) levels. These policies have created other positiveHR outcomes – a loyal workforce at the management levels (Jubilant FoodWorks Limited,2011). Cognizant has created a very strong knowledge culture via its online platforms suchas employee blogs, internal Web sites, intra Twitter/Facebook services, makingprofessional development both an individual and collective responsibility (Hewitt, 2010).

This best practice of investment in learning adopted by many of these organizations is avery strategic step towards talent management. The HRM consequences of this practicecontribute not only towards employee retention and knowledge capital but also helps in theintegration of other various best practices. High-performing employees who have beenthrough the appropriate internal training programs become potential candidates forsuccession planning or leadership positions. These firms are able to effectively integrate itsHRM practices into one another creating a chain of effective people strategies (Cappelli etal., 2010).

4.3 Egalitarian practices

These organizations provide several opportunities for employees to informally mix andmingle with their upper-levels of management. These HRM practices are consideredprogressive in India as power-distance and hierarchy are deeply entrenched in the socialand corporate context (Cappelli et al., 2011; Gannon and Pillai, 2010). These casualmeeting atmospheres between superiors and subordinates via lunch, coffee or teasessions have helped create and promote egalitarian work cultures. For example, inMindTree, top executives are not encouraged to have exclusive offices as all employeesshare cubicle spaces. These simple logistics have broken down apparent barriers ofauthority, allowing employees among various levels to freely share their innovative ideas. AtFirst Source (Rank 24), high-performing employees get to spend time informally with theirstrategic leaders over lunches or dinners. These kind of egalitarian environments havefostered a culture of high performance, making HR departments realize that thesemanagement practices are effective organizational tools (Hewitt, 2010; Siddiqui, 2007;Singh, 2003).


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In Becton Dickinson, the CEO and senior HR leaders frequently meet their front-line salesemployees to understand what their work challenges and concerns may be. This had animmense impact on entry-level sales, as this is unusual in the Indian work environment forleaders to talk with the front-line staff. Further, employees perceive this practice as arecognition of their contributions towards the organization (Hewitt, 2010). At Maruti-Suzuki(Rank 15), the managing director (or CEO) has quarterly “tea-meetings” with junioremployees to discuss their professional inputs and become aware of their contributionstowards the organization. This was considered a big change, as the organizationalstructure was typically hierarchical (Siddiqui, 2007). The company promoted this conceptof social equality at the workplace via various other initiatives. For instance, seniormanagers do not have private rooms, employees wear standardized uniforms andeveryone eats in a common cafeteria. These practices allowed employees from differentlevels to socialize, blurring the hierarchical veil between the upper and lower levels ofmanagement. At LG electronics, the CEO frequently schedules lunches with various juniorteams every week. This has helped subordinates share their work experiences and alsounderstand the leaders of their company (Singh, 2003). There are also weekly pizzameetings for juniors and seniors to connect, which is not very common in the Indian workenvironment (Hewitt, 2010, p. 219).

The role of HRM as a change agent is demonstrated by the introduction of these practiceswhich are considered unconventional in the Indian context. Scholars identify such leadersas “change champions”, as they modify conventional values for those of progressive toenrich employees in a positive way. HRM leaders realize the importance of amendingtraditional practices to stay responsive with contemporary norms. These organizations,thus, become powerful representatives of change agents in their industries (Ulrich et al.,2012).

4.4 Developmental performance approach

Many of these organizations emphasize high-performance work cultures that reflect astrong developmental flavor. Employees are encouraged to make mistakes, thus promotingwork cultures that do not have a fear of failure (Paul and Anantharaman, 2004; Hewitt,2010). Profit sharing is encouraged for any superior performances, promoting a spirit ofcollectivism among employees (Hewitt, 2010).

Failures at work are considered as methods for individuals to evaluate and enhance theirfuture performances. For instance, in Godrej (Rank 4), a project team encountered tepidcustomer responses in pilot-testing a new product for which a lot of investment (Rs 20, 000crores or about $200m) had been made. The team decided to delay the release of theproduct based on the initial market feedback. The team did not perform what had beeninitially identified as one of its annual goals. The upper management did not take anypunitive actions against the team for its lack of performance but allowed team members tolearn from its marketing mistake (Hewitt, 2010).

Dr Reddy Lab’s performance tool, performance enhancement coaching tool (PERFECT), isan appraisal tool that identifies concerns in performances and complements those areaswith adequate coaching needs. Employees, thus, perceive their annual appraisal processas a robust developmental tool. In fact, employees look forward to their appraisals, as thespirit of learning and coaching is encouraged (Cappelli et al., 2011).

Kotak Mahindra (Rank 11) bank follows a self-appraisal system called Race based on fourperformance criteria (qualifier, challenger, achiever and high-flier). Employees who remainon the same grade level for 12 months qualify to be considered for the next grade level.Employees experience a sense of autonomy in identifying their own performance levels andplanning their careers (Hewitt, 2010). NTPC implements a performance managementapproach of rewarding points in four distinct areas (individual performances, jobcompetencies, organizational values and future potential). The interesting feature of thisappraisal process is that individual performances are only one among the four aspects


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evaluated. There is equal emphasis given also to the other three performance-relatedcriteria. For instance, allowing individuals to assess their future capabilities helpincorporate career planning into the appraisal process (Goyal and Khurana, 2010).

Aditya Birla Group implements a 360-degree performance appraisal process to ensure thatemployees receive feedback from various stakeholders. This is considered veryprogressive for an Indian work culture that reflects authority and power. Subordinates nowfeel they can question their superiors’ behaviors via the appraisal process. Further, itprovides a comprehensive picture of the employees’ performances, encouraging trainingor coaching in the appraisal process. Employees have responded positively to such awell-rounded performance system by becoming more accountable. The company alsochanged the “kith- and- kin policy” (Som, 2010, pp. 560) of recruiting family members orfriends, as this policy did not promote a culture of high performance. This change isconsidered avant-garde for a company that has been family owned for several generations(Som, 2010).

The integrative nature of HRM practices can be observed via these developmentalappraisals. Many of these organizations offer coaching or development as a part of theperformance management process. This allows the HRM departments to identify unifiedsolutions using the outcomes of one (performance management) with the goals of another(training and development). In other words, the HRM leaders have been able tostrategically connect the dots among the various practices to ensure better consequencesfor their employees (Ulrich et al., 2012).

4.5 Work–life balance and family-friendly practices

These organizations realize the importance work–life balance and family-friendly practiceshave on employee productivity and retention. They adopt several practices that allow forsuch rich connection and employee integration (People Matters, 2013; Hewitt, 2010;Siddiqui, 2007).

Hindustan Lever (Rank 1) offers job-sharing, day-care centers and other nurturingprograms to ensure that its employees (males and females) may accommodate thedemands and roles of work–life well. Job-sharing is a popular program that both men andwomen like to use, as it allows them to adequately manage their work and non-work roles.Women predominantly take advantage of these practices, as it helps them balance thedemands of their professional and non-professional roles. For instance, only one of ten menopt for job-sharing, while nine of ten women choose such programs ((Hewitt, 2010; Ghosh,2011).

The firm also offers two other programs (Career by Choice and Career Break), signaling itsunderstanding and support of the various roles employees play in their professional andpersonal lives. These practices have helped women immensely, as they have moredemands from their personal lives and roles (Ghosh, 2011; Hewitt, 2010). Career Choiceallows women to restart their professional careers after any break, while Career Breakprovides sabbaticals (for 2 years) for both men and women. In India, almost 1.5 millionwomen drop out of their careers, as cultural demands make it difficult for them to balancetheir professional and personal roles. Today, 25 per cent of the company’s workforce isrepresented by women and 18 per cent of the women are in leadership positions. Theinclusion of such nurturing work–life practices have helped women establish a strongpresence (Ghosh, 2011). The firm also provides monetary assistance and workaccommodations for employees if their parents have any chronic ailments. Such acts ofaltruism leave an indelible impression in the employees’ minds, contributing to high ratesof employee retention (Hewitt, 2010).

Marriott Hotels (Rank 10) provides latitude in scheduling that allows sales associates takea break in their work-schedules every other weekend. The hospitality industry usuallymakes rigorous work schedule demands on its sales associates or front-line staff. Hence,


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such an employment practice is viewed extremely positively by the employees (Hinkin andTracey, 2010). The organization also allows associates to celebrate their birthdays withtheir families at the hotel properties, which includes a lavish one-night stay. Scopeinternational (Rank 12) offers flexible timings for several positions, allowing applicants(such as home makers or housewives) to pursue these jobs as well. This is consideredforward-thinking for a culture that usually does not tap into these non-traditional(housewives) labor segments (People Matters, 2013). Similarly, Aegis (Rank 25) allows itsemployees to work part time and also offers female employees to choose their core workinghours. These practices provide employees a great sense of work–life balance (Hewitt,2010).

LG Electronics’, Family Connect, provides training opportunities for the family members ofemployees also. This initiative has become a huge retention tool, as employees are deeplyappreciative of the enormous investments the firm has made towards their families as well(Hewitt, 2010). NTPC, often referred to as navaratna or nine jewels by locals, is considereda generous leader in family-friendly benefits. This company provides medical insurance notonly to an employee’s immediate family (spouse and children) but also to the employee’sparents (Kumari, 2011; Ghosh et al., 2009).

These organizations provide opportunities for employees’ families to participate incorporate activities. At Maruti-Suzuki, the employees’ families are invited to observe thecompany’s manufacturing plants on assigned days called Parivar Milan (FamilyConnection). Such annual events, replete with fun and activities, allow employees and theirfamilies to connect and interact communally (Siddiqui, 2007; Hewitt, 2010). Similarly, at LGelectronics, annual events and picnics have become the norm. Such benign practices helpcultivate strong organizational bonds among the employees, their families and theorganizations (Singh, 2003).

These work–life and family-friendly practices create tacit psychological ties between theseorganizations and their employees. Further, they have positive HRM outcomes in terms ofloyalty and employee turnover rates. For example, Marriott Hotels has 8 per cent lowerattrition rates than its counterparts of its industry (Ganguly, 2013). NTPC has an attrition rateof 0.4 per cent, suggesting a long-tenured workforce (Kumari, 2011; Ghosh et al., 2009).

4.6 Engagement initiatives

These companies have established initiatives that constantly engage their employees viaempowerment, cross-training, role expansions and role variety. Employee engagementinvolves challenging or empowering employees to excel and grow (Martel, 2003).Employees will feel engaged when they feel connected to their work and are allowed toexplore different roles (Hewitt, 2010; Robinson, 2009).

Aditya Birla, Marriott Hotels and Wipro group allow its mid-management employees tocross-train and seek positions across various functions (marketing, finance, humanresources, etc.). This job rotation has helped employees garner a comprehensive strategicpicture of the organization as they seek upper-level leadership positions. Aditya Birla hasseveral different business units from finance to retail to telecommunications and has usedthis organizational diversity to its advantage in leveraging its internal talent across variousbusiness units. This allows its employees to experiment and expand in finding their rightniches (Hewitt, 2010). Wipro has developed “Wings Within”, where entry and mid-levelemployees can choose different roles among the various business units or subsidiaries ofthe company. This has allowed employees to engage and explore various roles andpositions (Barman, 2010) before finding their “sweet spots” (Robinson, 2009, p. 8). AtMaruti-Suzuki and Scope, employees at entry and mid-levels frequently rotate amongvarious jobs to enhance and enrich their knowledge, skills and abilities (Hewitt, 2010;Mishra, 2011).


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Many of these organizations empower their employees by providing a culture of autonomy andentrepreneurship. In Godrej Consumer Products, managers run their departments like“mini-companies” that give departmental employees complete autonomy (Hewitt, 2010). AtNTPC, mid-level employees are allowed to participate in management councils that allow themto contribute and discuss strategic topics with upper levels of management. Such a processallows employees to experience the bigger picture and also understand the significance oftheir roles and tasks. Employees are frequently nudged to take on new challengingresponsibilities to broaden their horizons (Kumari, 2011). Whirlpool India allowshigh-performing young leaders pursue global management positions. This practice of allowingtheir junior leadership talent experiment and develop has been an excellent recruiting andretention tool. The average employee age is 29 in Whirlpool India (Hewitt, 2010).

Organizations like Aircel and Whirlpool India create exciting reward programs to engagetheir employees at all levels. These include employee of the quarter awards, browniepoints, bravo cards (redeemable at consumer stores) and award ceremonies, whichmotivate employees to perform better. All these programs suggest that superiorperformances will get noticed and rewarded (Hewitt, 2010).

These various examples of broader skill development is another key strategic move from theseHRM departments. These initiatives allow these leaders to integrate the outcomes of thesepractices (cross-training, job-rotation) with other programs such as succession planning andprofessional development to get the best results for both the employees and the organizations.The integration among various HRM practices helps create idiosyncratic cultures that becomedifficult for organizations to duplicate. Further, it helps create “bundles” of strategic HRMpractices that connect with one another to cultivate a holistic engaging environment (Ulrichet al., 2012).

4.7 Generous benefits

These organizations offer several benefits to make employees feel valued with bothmonetary and non-monetary benefits. LG Electonics provides all its employees “Feel Free”hours (allotted time), where employees can engage in any external activities (playingsports, learning languages, etc.) that they would like to pursue. Employees are moreproductive at work when they have time for personal goals that they are passionate about.Neuroscientists suggest that motivation, learning and performance are powerfully linked toan individual’s state of emotions. Employees who experience positive contexts (such as“feel free”) are more likely to be creative and prolific at work (Van Dam, 2013). The mostcreative ideas of Google Inc have emerged when employees pursued their 10 per cent“free time” (Iyer and Davenport, 2008).

NTPC provides unique monetary benefits to their senior employees in the form of goldcoins. Employees who have completed 25 years of service receive gold coins (Hewitt,2010). Gold jewelry is very symbolic in the Indian culture, as it is a part and parcel of mostlocal weddings (Gannon, 2004). The average age of the workforce is 46 and the attritionrate is 0.4 per cent (Hewitt, 2010). All the employees of NTPC are provided houses atsubsidized rates which are usually in enclosed residential communities. Thesecommunities also have several other conveniences such as schools, parks, hospitals,stores, etc. This secluded environment also develops personal ties among the employeesas they observe one another in non-professional roles. Hindustan Unilever, Godrej andKotak Mahindra Bank provide several recreational benefits to their employees such asfitness and yoga centers and club memberships (Hewitt, 2010).

Godrej Consumer Products adopts annual profit sharing, ensuring all its employees partake inits financial successes. These generous practices have also provided rich dividends inretention (Hewitt, 2010). This company also initiates a rewards culture following the JapaneseKaizen model. Employees are strongly encouraged to bring forth any new innovative ideas toenhance the workplace. This practice encourages employees to behave like internalconsultants as they constantly scan and monitor their own management practices. Employees


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are rewarded generously for any novel suggestions that would help create work-placeimprovements (Gondhalekar and Karamchandani, 1994).

These organizations provide different forms of vacation benefits that result in positiveoutcomes for both the employees and the firms. Organizations like Aditya Birla offer theirsenior employees sabbaticals to encourage them to pursue other purposeful interests. Forinstance, a senior manager took a two-year sabbatical to participate in the Teach for Indiaprogram. This has created positive outcomes for both the employee and the employer; theemployee broadens his experience with this altruistic opportunity and the organizationwelcomes a more productive individual. Scope International provides mandatory vacationsto their employees to ensure they have time for personal rejuvenation. For example, thecompany provides “block leave” that mandates all employees to compulsorily take twoweeks of vacation time annually (Hewitt, 2010).

5. Discussion

This research showcases an Indian model of best practices which reflects its own cultural oremic characteristics that might not be observed in other Western models. While there may besome overlap between the Indian model and that of Pfeffer’s, (professional investment,egalitarianism), there are some distinct differences also. This Indian work environment clearlyreflects the importance of succession planning, as 40 per cent of these companies invest instructured forms of leadership development. There is also a focus on developmental appraisals(26 per cent) among these companies, which suggests that the corporate culture prefers tocoach employees to improve their performances. Family-friendly practices are also importantin the Indian cultural context (32 per cent), as employees have close ties to both their nuclearand extended families. These themes from this Indian model can be contrasted to those ofPfeffer’s and others. The classic question begets whether HRM models are transferrable fromone culture to the other (Cappelli et al., 2011).

Scholars suggest (Cappelli et al., 2010) that Indian HRM practices might become a globalparagon just like the Japanese manufacturing practices revolutionized the automobile industrya couple of decades ago (Fernández-Aráoz, 2007; Pfeffer, 2005). These Indian organizationsdemonstrate a sense of high investment and collaborative spirit in integrating with theiremployees. This has provided positive HRM outcomes, such as employee loyalty andretention. For instance, the employee attrition rates in some of these companies are 0.4 (NTPC),10 (Kotak Mahindra Bank), 13 (Whirlpool), 15 (Wipro) and 17 per cent (Dr Reddy’s), which aremuch below their industry averages (Hewitt, 2010; Wadhwa et al., 2008). Comparative statisticsof these numbers with some industry norms might help strengthen the value of these figures.The pharmaceutical industry and IT industry in India have attrition rates of about 35 (entry level)and 25 per cent (junior management) (Deloitte, 2013; Unnikrishan, 2006). The attrition rate forsales associates at Marriott Hotels (one of the identified organizations in this study) is 8 per centbelow the average for the hospitality industry (Ganguly, 2013).

The systematic succession planning practices identified in these organizations might alsobe very congruent with the national culture of future orientation and long-term planning(Gannon and Pillai, 2010). Succession planning, an elaborate staffing process, signals toemployees that organizations have invested their time and efforts by identifying clearcareer paths for their employees. This staffing practice is very meaningful in the Indian workenvironment, as its national culture places a lot of importance on future planning(Fernández-Aráoz, 2007; Doh et al., 2008). There is a lot of emphasis of hiring, developing andpromoting as evidenced by their internal recruitment strategies. For example, 60 per cent ofTata Teleservices management positions are from within the company (Ramnani, 2012).

There is a cultural prominence on learning and education in the Indian environment. Thischaracteristic translates well into the organizational context in the form of professionaldevelopment. Organizations in India frequently behave as extensions of universities andprovide several opportunities for learning (Gannon and Pillai, 2010). These organizations


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regard professional development as a collaborative journey between employers andemployees. An educated workforce enhances the reputation of any company, as all thestakeholders benefit from the employees’ superior skills and abilities (Ulrich andBrockbank, 2005; Hatch and Dyer, 2004).

These organizations have established egalitarian practices to reduce the conventionalpower-distance culture very visible in Indian organizations. These companies provideopportunities for informal meetings between senior and junior members. This practice is anuncommon feature in the Indian corporate, which has slowly helped transform theseorganizational cultures into being less hierarchical (Hewitt, 2010; Gannon and Pillai, 2010).

Organizations that emphasize a developmental culture of performance create a nurturing workenvironment. Employees will present their best in an environment where punitiveconsequences do not govern the performance culture. These organizations provide anatmosphere that allows employees to be coached, mentored and trained to achieve superiorlevels of performances (Jackman and Strober, 2003; Iyer and Davenport, 2008). The creationof the software program, Java, was a result of Sun Microsytems’ tolerance and understandingthat its employees’ performances may include several errors during the learning process(Martel, 2003).

Organizations that create work–life balance practices such as job-sharing, flex time, amongothers will definitely attract a diversified labor pool. The demographics of any labor forceinclude a variety of employees, such as dual-career couples, single working parents,employees with elder care concerns and employees with child-care needs. Organizationsthat offer work flexibility will definitely have a more productive workforce (Hinkin and Tracey,2010; Joyce, 2003). The ROWE (results only work environment) work policy of US electronicretailer, Best Buy, has revolutionized the sheer concept of work by providing employeesabsolute work flexibility. This unique work practice allows employees to set their own workhours. They are held accountable only for their end results and not for their physical presencesin the organization. The ROWE program has demonstrated 35 per cent increase in workproductivity and more than 50 per cent decrease in employee turnover (Jossi, 2007).

Organizations that provide a culture to ensure their employees are engaged experiencepositive financial and human resource outcomes. Bhatnagar (2012) demonstrated in anempirical study of 230 Indian managers that work practices such as employeeempowerment and work engagement were critical predictors of firm innovation andretention. Employees who have work autonomy and challenging jobs are most likely tomake innovative contributions. Most of Google’s innovative products (such as Gmail) havebeen the result of an engaging work philosophy (Iyer and Davenport, 2008). Engaginginitiatives (such as cross-training, expanded career roles and enhanced responsibilities)create a strong connection between employees and their jobs and has shown to lead toincreased retention and reduced employee turnover (Pfeffer, 2005).

Indian business leaders often receive Forbes philanthropy awards in the Asia-Pacificregion, suggesting a deep sense of altruism (Manjushree, 2011). This benevolentcharacteristic of nurturing is reflected in the manner these leaders treat their employees.Large Indian organizations offer a variety of employee benefits with the philosophy ofcultivating a family environment within the organization. The local collectivist culturecherishes and upholds such values (Gannon, 2004; Gannon and Pillai, 2010).

6. Conclusion

This conceptual research provides four main contributions. First, it details the current “best”HRM practices of leading organizations in India. Therefore, this research enhances thebody of knowledge specifically on culture-specific or emic HRM practices (Zhu andBargiela-Chiappini, 2013; Martinez and Dorfman, 1998). There have been several articleson management practices in India by both global and local scholars (Cappelli et al., 2011;Merdith, 2008; Fernández-Aráoz, 2007; Wadhwa et al., 2008; Budhwar, 2009; Budhwar et


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al., 2009). These researchers draw attention to these practices, as they have proveneffective in several industries. Consequently, they imply that these emic practices may begood role models for global practitioners to implement. The question that may arise iswhether practices from one country can translate well into another. Or will they be lost intranslation? For instance, practices like egalitarianism might not be required to beimplemented in cultures such as the USA, where the concept of equality amongorganizational levels is a norm. On the other hand, practices like the rigorous successionplanning, generous benefits, developmental performance cultures and meticulousdevelopmental strategies may be examples for Western organizations to emulate.

Second, this article contributes to the cross-cultural and international managementliterature, as it provides both emic (local Indian companies) and etic (multinationalsubsidiaries) practices. This study provides seven themes of “best” emic practices thatcould provide preliminary guidelines for global practitioners (Lui et al., 2004). Multinationalsfrequently like to benchmark “best” local practices, as this implementation may be one oftheir best passports for cultural assimilation (Fernández-Aráoz, 2007). Budhwar et al.(2009) suggest from their qualitative study of 55 multinationals (MNCs) in India that thesefirms usually adopted emic approaches to HRM practices.

This research also showcases etic practices of multinational subsidiaries (BectonDickinson, Maruti Suzuki and LG Electronics), as these firms offer egalitarian initiativeswhich is not a common practice in India’s hierarchical environment. Other multinationalsubsidiaries (Marriott Hotels, Scope International and LG Electronics) provide family-friendly practices that are not the traditional norm among domestic companies. Thesemultinationals follow progressive etic approaches in an effort to modify traditional emicpractices of power-distance and gender egalitarianism (Budhwar, 2009). This resonateswith a qualitative study done by Haq (2012), who demonstrated that multinationalsubsidiaries in India proactively promote etic practices and offer gender-friendly practices(towards women) both in their recruitment and work-schedule practices. This study alsoreflects how some subsidiaries (Canon and Ford India) have invested in successionplanning, indicating their inclination towards following local practices.

Third, this research provides a model for both practitioners (Tables II and III) and scholars(Figure 1) enriching the body of knowledge on “best” practices. Table II provides theseseven themes with a corresponding cultural rationale as to why multinationals may want to

Table II A model of the “best” human resource management practices that multinationals can benchmark

# HRM practices Rationale for benchmarking

1 Leadership development/succession planning The local culture prefers to always plan ahead which is reflected in its staffingpractices. Firms should collaborate to develop strategic practices forleadership development

2 Professional investment The Indian culture values any form of continuous learning. Organizationsshould behave as proxy schools and invest in professional development eitherexternally or internally

3 Egalitarian practices The local culture is doused in power-distance practices. Managementinitiatives that reduce these hierarchical barriers will be appreciated

4 Developmental appraisals The collective orientation prefers a developmental approach. Performanceappraisals that emphasize coaching and mentoring will be congruent with thelocal culture

5 Work–life balance and family-friendly practices The collectivist culture views their commitment in their non-professional rolesequally important as their professional careers. Management practices thatprovide any accommodations will result in increased loyalty and retention

6 Engagement practices The work culture will embrace any opportunity for professional growth.Management initiatives such as cross-training and empowerment that enhancebusiness knowledge will be readily accepted by employees

7 Generous benefits The local work culture is experiencing a lot of job-hopping and attrition because ofincreased demand for talent. Organizations should invest innovatively invest inboth non-monetary and monetary incentives to retain its talent


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Table III Content analysis identifying seven human resource management themes from the 25 “best” organizations

# Names of organization% of firms reflecting theseHR themes HRM practices

1 1 Hindustan Unilever2 Aditya Birla3 LG Electronics4 Wipro5 Kotak Mahindra Bank6 Scope International7 Canon India8 Ford India9 NIIT

10 Tata Steel

Leadership development/succession planning40 %

1 Career management initiatives2 CEO monitors succession plans for top 100 leaders3 Five-year career planning for 500 core leaders4 Succession planning initiatives in all business units5 Performance appraisals help identify superior performing

employees for leadership positions6 High performers are identified on a career track to take on

leadership positions

2 1 Hindustan Unilever2 Aditya Birla3 LG Electronics4 Bharti Airtel5 NTPC6 Becton Dickinson7 Aircel8 Wipro9 Marriott Hotel India

10 Kotak Mahindra Bank11 Scope International12 Dr Reddy’s Lab13 Whirlpool India14 Maruti Suzuki15 Jubilant FoodWorks16 Cognizant

Professional investment64 %

1 Cross-training2 Training academy, E-learning3 Coaching programs4 Standardized training for all managers; cross-training5 Power management institute (corporate university); executive

education programs6 Virtual university7 Aircel academy (corporate university)8 Campus connect; cross-functional training; Wipro Academy of

Software excellence (WASE; corporate university); internationaleducation

9 Management development training for all managers10 Synchronized and asynchronized online learning modules for all

employees11 Managerial training for new and experienced managers;

employees receive training in other departments outside of theirmain roles

12 Leadership academy; technical seminars, conferences;international education

13 Education assistance for employees; coaches and mentors astrainers; elaborate training programs for managerial levels

14 Educational assistance; international training opportunities3 2 Hindustan Lever

3 LG Electronics4 Dr Reddy’s labs5 Maruti Suzuki6 Becton Dickson7 MindTree8 First Source Solutions

Egalitarian practices3 2 %

1 Internet portal for employees to freely express opinions aboutsenior management

2 Pizza meetings for employees to communicate with top leaders3 Collective decision-making from all levels for strategic decisions4 Common cafeterias for all employees; tea meetings between

juniors and seniors5 CEOs and HR leaders interact with front-line sales

4 1 Hindustan Unilever2 Godrej Consumer

Products3 Dr Reddy’s Labs4 Kotak Mahindra5 NTPC

Developmental appraisals20 %

1 Career progression appraisals with a focus on coaching2 Employees are encouraged not to fear performance failures3 “PerFect” appraisal system focuses on being both

developmental and evaluative4 Performance appraisals help identify skills required for coaching5 Future potential is identified in the appraisal process for

developmental purposes5 1 Hindustan Unilever

2 LG Electronics3 Marriott Hotels India4 Kotak Mahindra Bank5 Scope6 NTPC7 Maruti Suzuki8 Aegis

Family-friendly practices32 %

1 Day care centers, job-sharing, flex-time schedules2 Family connect programs to integrate employees’ families3 Flex-time schedules; six days off every month4 Day care centers5 Flex-time schedules6 Medical allowances for employees’ parents7 Corporate events that include employees’ families

(continued)


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benchmark these practices. Pfeffer (2005, 2006) suggests that “best” practices is largelycontextual as the values, norms and laws intertwine to create idiosyncratic work cultures.For instance, succession planning is well accepted by the local employees, as the Indianculture always likes to plan ahead. Similarly, professional investment is easilyacknowledged by Indians as an emphasis on education is an ingrained cultural trait(Gannon and Pillai, 2010). Table III provides a comprehensive list of all the HRM practicesoffered by these companies under these seven themes. A content analysis suggests that

Table III

# Names of organization% of firms reflecting theseHR themes HRM practices

6 1 Hindustan Unilever2 Aditya Birla3 LG Electronics4 Godrej Consumer

products5 Bharti Airtel6 Becton Dickinson7 Aircel8 Wipro9 Marriott Hotels India

10 Kotak Mahindra Bank11 Scope International12 Dr Reddy’s Labs13 Whirlpool India14 Maruti Suzuki

Engagement practices56 %

1 Employees’ inputs on strategic decisions2 Autonomy, entrepreneurial spirit3 Empowerment, ownership of tasks4 Empowerment5 Entrepreneurial spirit; expanded roles6 Empowerment7 Recognition programs such as employee for the quarter,

brownie points, bravo cards8 Entrepreneurial culture, empowerment9 Cross-functional opportunities

10 Empowerment and ownership11 Job rotation; employees can take four days per year to

participate in any social cause12 Empowerment, ownership13 “World of Winners” recognition programs for employees;14 Expanded roles for employees; empowerment; job rotation

11 1 Hindustan Unilever2 Aditya Birla3 LG Electronics4 Godrej consumer

products5 NTPC6 Kotak Mahindra Bank7 Scope International8 Maruti Suzuki

Generous benefits32 %

1 Gym, badminton courts, grocery stores2 Employee sabbaticals3 Bonus five times a year; “feel free” hours to pursue personal

hobbies4 Housing, school, club, gymnasium, sports centre; profit-linked

bonuses5 Elaborate retirement bonuses; gold coins for employees who

have 25 years of service; health clubs; access to best hospitals;above market pay salaries for executives; housing; gyms

6 Gym, yoga centre, prayer room, recreation centre, conveniencestore and cafeteria

7 “Block leave” of taking two weeks of vacation time per year ismandatory for all employees

8 Full medical assistance for employees and their families

Figure 1 A model of “best” practices in 25 Indian organizations

“Best” organiza�ons

in India

� Leadership Development� Professional Investment� Egalitarian Prac�ces� Developmental

Appraisals� Work-Life Balance &

Family Friendly Prac�ces� Engagement Ini�a�ves� Generous Benefits


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professional investment (64 per cent), engagement (56 per cent) and leadership (40 percent) practices are the most commonly offered best practices among these 25 companies.

The Indian business model as evidenced from this study demonstrates a relentless pursuitof investment and collaboration. These firms provide meticulous talent pipelines for bothinternal and external sources of recruitment. Organizations view their roles as proxyschools as professional development is provided in different flavors. Egalitarian practiceshave helped break traditional communication barriers creating more transparency. Thesecompanies genuinely help employees reach their goals as performance managementpractices are considered synonymous to coaching tools (Cappelli et al., 2011). Work–lifebalance practices have helped employees balance both professional and personal goalswhich are very meaningful for the family-oriented Indian culture. Engagement practiceshave made employees find their perfect niches (Robinson, 2009) in a persistent effort tomake them feel richly connected to their jobs and roles. Generous benefits have helpedcreate family atmospheres within these firms and help enhance the retention rates (Doh etal., 2008). This model is a significant contribution of this study, as it advances theknowledge about best practices in India, an emerging nation in the Asian and globaleconomy.

This study is not without its limitations. This is an investigation on a few select largeorganizations (25) that have been identified as “best” in their industry in 2011. Theseorganizations have a lot of capital and labor resources to develop and establish these“magic formula” practices (Bolton, 2006, p. 14). Thus, this summary of “best” practicesmight not be reflective or generalizable of what is happening in other organizations in thesame industry or even in the same cultural context. However, they are valuable guidelinesfor both practicing managers and academics (Bolton, 2006).

This article provides scope for potential researchers interested in furthering this topic.Future conceptual studies can examine “best” HRM practices from different economies toidentify comparative models. For instance, a majority of these Indian companies focusedon professional investment and engagement initiatives. Are these characteristic to theIndian work environment? These answers require further investigation of best practicesfrom other nations also. Empirical researchers can also test this model via surveys orinterviews to prove or refute its claim.

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Corresponding author

Pramila Rao can be contacted at: [email protected]

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Journal of Asia Business Studies · 2020-01-03 · Investment and collaboration: the Indian model...

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