Journal of Asia Business Studies Investment and collaboration: the Indian model for “best” HRM practices Pramila Rao, Article information: To cite this document: Pramila Rao, (2016) "Investment and collaboration: the Indian model for “best” HRM practices", Journal of Asia Business Studies, Vol. 10 Issue: 2, pp.125-147, https://doi.org/10.1108/JABS-03-2015-0033 Permanent link to this document: https://doi.org/10.1108/JABS-03-2015-0033 Downloaded on: 16 October 2017, At: 04:54 (PT) References: this document contains references to 88 other documents. To copy this document: [email protected] The fulltext of this document has been downloaded 344 times since 2016* Users who downloaded this article also downloaded: (2016),"Determinants of a successful cross-border knowledge transfer in franchise networks", Journal of Asia Business Studies, Vol. 10 Iss 2 pp. 148-163 https://doi.org/10.1108/ JABS-05-2015-0052 (2016),"Design leaps: business model adaptation in emerging economies", Journal of Asia Business Studies, Vol. 10 Iss 2 pp. 105-124 https://doi.org/10.1108/JABS-01-2015-0009

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*Related content and download information correct at time of download. Investment and collaboration: the Indian model for “best” HRM practices

Pramila Rao

Pramila Rao is Associate Abstract Professor at the School of Purpose – The purpose of this paper is to examine human resource management (HRM) practices of Business, Marymount the top 25 companies identified as “best” in in 2011. This paper provides insights into HRM University, Arlington, practices of a leading country in Asia that is playing a very important role in the global economy. Virginia, USA. Design/methodology/approach – This conceptual paper will use for its research analysis the business reports of the Outlook Business Magazine and AON Hewitt. AON Hewitt is a global human resource consulting company and is an established authority in identifying “best” companies in India since 2004. A qualitative content analysis was done of the business report to identify predominant themes. Findings – The analysis identified how the “best” 25 Indian companies offer progressive HRM practices that required careful investment and collaboration. This research showcases seven specific HRM themes that include elaborate staffing, investment in learning, work–life balance, egalitarian practices, developmental performance culture, generous benefits and engagement initiatives. Practical implications – This paper provides preliminary guidelines for global practitioners who may be interested in doing business in India. It also provides a model of “best” HRM practices adopted by 25 companies that could help other organizations identify successful HRM practices in India. Among the 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 Asian economy that has not been addressed before. This paper hopes to bridge this paucity in the extant literature by showcasing the “best” HRM practices from 25 “best” companies in India. It also provides an 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 Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) The BRIC (, Russia, India and ) economies have become key participants in the global economy showcasing excellent gross domestic product (GDP) rates. These nations have specialized resources that attract varied foreign direct investments (FDIs) (Yang et al., 2008). India is considered a strong player with several of its industries demonstrating global acumen (Friedman, 2006; Gannon and Pillai, 2010; Meredith, 2008). The Indian economy has been experiencing robust economic growth since the 1990s with an average of 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 of a progressive one towards FDI and multinationals (Jain et al., 2012). For example, India ranked 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 Received 25 April 2015 (political, economic and legal) of different countries as identified by prominent business Revised 18 July 2015 leaders. Leading multinationals have been establishing in India, demonstrating their 7 September 2015 Accepted 9 September 2015 business confidence for the Indian market. In 2012, India received $25.5bn in FDI from

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 multinationals in different countries such as Diageo (Britain), Starbucks (USA) and Ikea () (Laudicina et al., 2013). Today, more than 100 of the Fortune 500 US companies have their research and development (R&D) centers in India. For example, Dell has recruited almost 20,000 software engineers in India. Similarly, Pearson Educational Technologies, an educational service leader, has moved its entire e-learning development to India because of the sophistication of the local information technology (IT) industry (Frauenheim, 2006; Khozem, 2002; Zakaria, 2006). As these multinationals establish their Indian subsidiaries, they make specific choices with regard to the kind of human resource management (HRM) practices they should follow (Yang et al., 2008). Traditionally, Indian organizations followed a paternalistic management style with a lot of emphasis given to personal relationships among employees. The concepts of loyalty and trustworthiness were important predictors for employees’ successes and professional achievements. The increased presence of multinationals in India has prompted local organizations to slowly change their conventional practices. The outlook of the Indian HRM departments transformed placing an increased emphasis on organizational efficiency (Jain et al., 2012). Today, several large and well-established Indian organizations offer progressive HRM practices such as stock options, merit-based pay, flexible work schedules and part-time jobs, which, until relatively recently, were not common in the Indian corporate world (Ramamoorthy et al., 2005; Som, 2006). For example, Tata Iron and Steel Company (TISCO), India’s oldest steel plant, replaced seniority-based promotions with performance ethic programs (PEP) to create accountability among its employees. Arvind Mills, a leader, introduced Selection Information System, a recruitment practice that allowed HRM managers to offer different online recruiting options which were not normally adopted (Som, 2006). Cappelli et al. (2011) in their study of 98 Indian organizations suggest that the hallmark of Indian business leaders is their attitudes towards their employees and customers. The Indian business leaders indicated that investment in HRM practices and collaboration with their stakeholders are their greatest strengths. Indian HRM leaders have prominent roles in their organizations, with 87 per cent of them suggesting they work with the top management teams in strategic operations. HRM leaders have realized that people management practices are critical to create those lasting impressions with both customers and employees. 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 made publicly available, making it easy for researcher to analyze relevant data. The format of the paper is organized as follows: Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT)  the theoretical framework identifies Pfeffer’s classic “best” practice model. This section integrates 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’s understanding of this study; and  the conclusion provides the contributions and a conceptual model of “best” practices in India. The focus of this paper is to provide three clear objectives. First, it will showcase the HRM practices of the 25 best companies in India as identified by an established study. These companies include both Indian (16) and multinational subsidiaries (9) providing both emic and etic perspectives. Second, this paper showcases a comprehensive conceptual model

PAGE 126 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 of Indian “best” practices. This will allow scholars and practitioners to understand if these practices are idiosyncratic. Third, this article will address a paucity in the extant literature as it details management practices from an emerging Asian country that is not usually researched like those of the Western nations (Pathak et al., 2005). The concept of identifying best companies has become a global practice, as it helps benchmark superior management practices from a wide range of organizations. For instance, in the USA, the Fortune 100 list, established in 1998, provides an annual identification of the best companies. The understanding of the “best” practices becomes an important benchmarking tool for organizations that may wish to adopt new practices congruent 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 how organizations in India adopt management practices that are contextually congruent. Pfeffer’s classic model was one of the early trends in identifying “best” practices in organizations (Pfeffer, 1998). Pfeffer (1998), one of the early advocates of best practices, introduced 17 best practices that firms should adopt for superior performances (Pathak et al., 2005). He subsequently condensed these practices to seven HRM themes, which are 1) job security; 2) superior hiring practices; 3) team-based structures and decentralization; 4) performance-based compensation; 5) elaborate professional development; 6) egalitarian practices; and 7) transparency of financial information (Pfeffer, 1998). These practices when integrated with one another provide very effective organizational outcomes, such as increased productivity, innovation and retention, among several others (Pathak et al., 2005). However, the universality of these “best” practices models in other social, economic and cultural contexts has been questioned. Can cultures that are ingrained in power-distance adopt decentralization and teams? (Pathak et al., 2005; Marchington and Grugulis, 2000). Pfeffer (2006) clearly cautions that “best” practices might get easily lost in translation if practitioners try to adopt them without understanding its applicability in their business environments. He compares the roles of HRM practitioners to those of doctors, suggesting that HRM practices are like medical treatments that have to be customized. If “best” practices are imitated without understanding its rationale, then negative results could definitely emerge. For example, several US companies tried to mimic the forced ranking performance appraisal method of General Electric (GE), resulting in dysfunctional behavior in several organizations. The culture of the senior leaders or their “mental models” might also be the linchpins when trying to implement best practice changes (Pfeffer, 2005, Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) p. 123).

2.1 Literature review Several global studies (Hinkin and Tracey, 2010; Bolton and Wibberley, 2007; Joo and McLean, 2006; Joyce, 2003) have examined “best” practices from various industries to expand and enrich this body of literature. Hinkin and Tracey (2010) did an analysis on 21 companies in the USA from various industries such as hospitality, food service and health care, among several others. They primarily used a variety of secondary sources such as company Web sites, journals and the Internet to understand these best practices. Several themes of practices emerged from this conceptual study such as nurturing culture, transparent communication, work–life balance practices, superior hiring practices, generous rewards, elaborate professional development 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 that the 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 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 best medium-sized firms from the Sunday Times list of 100 (UK) best companies. They identified that the hallmark of the “best” companies is to provide “bundles” of HRM practices to create engaging environments. HRM practices provided holistically will offer the best outcomes for organizations. Their research suggested the “best” medium-sized companies do to provide small “bundles” of practices (such as rewards, professional development, job security) 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 Best Employers in Asia usually have certain distinct characteristics. First, “best” companies achieve superior recruiting outcomes as their reputations naturally attract talent. Second, employees working for “best” companies demonstrate a strong work commitment which is an outcome of the investment these companies have made on their employees. Finally, the employees benefit immensely from the variety of innovative and progressive HRM practices these best companies offer. Joyce (2003) did a content analysis of 30 Fortune’s 100 best companies in the USA and identified 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 gesture employees 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 similar themes, suggesting that the “best” companies use various resources to develop engaging employees and compelling cultures. These organizations conscientiously take the efforts to create their own brand of loyal employees and products, making them distinguished in their own industries. These articles suggest that understanding “best” practices are becoming a valuable benchmark for HRM practitioners. The concept of identifying best practices has become a

Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) common practice in most nations, as it provides a gold standard for other firms in the industry. The business reports (Hewitt, Great Places to Work, Sunday Times Best Companies, etc.) on best practices are publicized in various forms garnering a lot of media attention among industry practitioners (Bolton, 2006; Bolton and Wibberley, 2007; Joo and McLean, 2006; Joyce, 2003). There has been no conceptual studies analyzing HRM practices of the best companies from a leading Asian economy, such as India. The objective of this paper is to fill this gap in this extant literature by describing these practices in a detailed manner. This research study will help global practitioners understand Indian HRM practices better by providing a yardstick 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 the best Indian HRM practices. Joyce (2003) also did a content analysis of 30 Fortune’s 100

PAGE 128 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 best companies in the USA from various secondary sources to identify superior HRM practices. The data source, Outlook Business Magazine and AON Hewitt of 2010, is considered reliable and has been used for more than a decade in India. There are several other companies, 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. They do not provide extensive reports like the one used for this study. AON Hewitt is a global human 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 firms participated. From these 200 firms, 25 organizations were ranked the “best” based on three clear criteria (organization data, onsite visits and panel decisions). The data gathered from organizations included surveying employees (randomly selected), CEOs and HRM leaders. Three kinds of surveys were adopted in this data collection process that included employee opinion survey, CEO questionnaire and people practices inventory (Hewitt, 2010). The surveys assessed employees’ perceptions, CEOs’ contributions to HRM and HRM leaders’ viewpoints on current practices. Based on the organization data, 20 per cent of the participating organizations were randomly audited by onsite visits to verify if these management practices are being implemented. Finally, a five member panel of judges comprising both practitioners and scholars reviewed all the data and collaborated to arrive at the best list of 25 companies. The chair of this panel had extensive practitioner and academic experiences that scaled over four decades. The original completed surveys by the employees were not made accessible to the public; however, the aggregate results were 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 were published between 1980 and 2005 adopted this methodology (p. 23). Researchers have identified several advantages with this methodical method. It can be used to analyze both individual and collective data of different organizational topics. Second, it allows researchers to perform two kinds of data investigation: numerical and interpretative analysis. Third, content analysis does not have any bias that may be usually associated with either qualitative or quantitative investigations. Fourth, the results of the content analysis can be corroborated by triangulation to ensure reliability of data. Finally, it is also considered non-invasive on respondents’ time and personal space (Duriau et al., 2007). Content analysis requires certain procedures to be followed. The first step for the researcher 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 has to code or define appropriate units of analyses (words, sentences or paragraphs) for the Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) entire data set. Third, the researcher has to analyze the units of analyses into percentages or frequencies to get meaningful categories (Duriau et al., 2007; Silverman, 2000). This study followed all these procedural steps. It identified a credible source (Outlook Business Magazine & AON Hewitt) to study this phenomenon of best practices in Indian organizations. Second, the report was read several times by the researcher to define and code sentences and paragraphs. To further help with the coding, a matrix was created identifying HRM themes with common goals or similar outcomes. The researcher identified seven themes (such as leadership development, professional investment, etc.) after reviewing the entire data. The final step included calculating and providing percentages to justify these themes (Table III). Content analysis allows researchers to use additional methods such as triangulation and inter-coder reliability to enhance the reliability of the study. This research adopted data triangulation to enhance the consistency of the results (Yin, 2003). Several databases, such as ABI Global Inform, Academic Search Complete, Business Source Complete, Articles First, Google Scholar, Proquest Research Library and company Web sites, that provided a

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 129 variety of information (scholarly, non-scholarly and institutional) were used to garner information on these companies. Other studies have adopted similar methods to enhance the 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 analysis did not use multiple coders to interpret the coded data, which might be considered a limitation. Other studies (Joyce, 2003) also did not use multiple coders for their content analysis of 30 companies as the principal investigator coded the entire data. Researchers suggest that the reliability for small samples (such as these) will not be affected if a systematic procedure is followed (Silverman, 2000; Joyce, 2003). This study 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 I identifies their names, the number of employees, industry, type of ownership (private/ public) and also country of ownership. These companies represent a range of industries such as: information technology (5), health care (1), financial services (1), hospitality (1), utilities (1), telecommunications (3), automotive (2), (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 seven themes from this content analysis. The identification of these themes was further strengthened by doing a percentage (%) calculation to identify how many companies among the 25 firms offered these practices. The seven themes and their respective percentages 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 16,500 Consumer goods Public India 2 133,000 Conglomerate (metal, cement, ) Private India 3 LG Electronics 3,000 Consumer electronics Private 4 9,700 Conglomerate (consumer products) Private India 5 Limited 21,548 Telecommunication Public India 6 NTPC 25,944 Utilities (energy) Public (state-owned) India 7 Becton Dickinson 500 Health care Private USA 8 Aircel 500 Telecommunications Private India 9 136,734 IT services, IT consulting Public India Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) 10 Marriott Hotels India 3,500 Hospitality Private USA 11 20,000 Financial services Private India 12 Scope International 5,000 Information technology Private UK 13 Dr Reddy’s Lab 14,923 Pharmaceutical Public India 14 Whirlpool India 10,000 Consumer goods Public 15 India Ltd 6.903 Automotive Public Japan 16 Canon India Pvt. Ltd 1200 Electronics Private Japan 17 Ford India Pvt. Ltd 10,000 Automobile Private USA 18 Tata Teleservices 8,000 Telecommunications Public India 19 14,202 Information Technology Private India 20 NIIT 3,324 Education (for-profit) Public India 21 80,391 Steel Public India 22 Jubilant FoodWorks 15,000 Restaurants Public India 23 Cognizant Tech Solutions 145,132 IT services, IT consulting Public India 24 First Source Solutions 26,000 Business process management Public India 25 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

PAGE 130 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 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 and leadership development practices are the most frequently occurring themes for these companies. For example, 64 per cent of the 25 firms invested in some kind of professional development for their employees. The HRM practices offered for employee development included a gamut from virtual academy to corporate university to international training among several others. The most common engagement practices offered by these firms were empowerment, ownership (of tasks), job rotation, awards and expanding job roles. The leadership initiatives ran the breadth from structured programs to live work experiences to global forums. The specific HRM practices offered by these 25 companies under each of these seven themes are listed in Table III. The next section will address the predominant practices under each of these seven themes. The ranks of the company are provided in parenthesis when its name appears for the first time in this section.

4.1 Leadership development/succession planning These organizations painstakingly invest in long-term career management initiatives for carefully developing their employees. These staffing practices make employees experience a deep sense of commitment and loyalty as they are groomed for leadership positions (Kimes, 2009). Succession planning is also contextually meaningful as long-term planning and future orientation are culturally embedded practices. The Indian society is known 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 leaders carefully 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 to develop 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 them over a five-year period. Wipro (Rank 9) has a well-defined succession planning system for Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) critical leadership positions. It identifies three prospective employees for significant leadership positions, so that the organization always has a well-defined talent pipeline for critical jobs (Hewitt, 2010). These examples suggest that leaders in these Indian organizations are carefully nurtured (Chhabria, 2010). Tata Steel (Rank 21) invests in focused leadership development programs such as the Global Leadership Development Program (GLDP), which involves annual meetings among domestic and global leaders of the company to discuss and learn best practices from one another. These structured professional 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 and global projects. Project managers are identified after a careful review of the employees’ annual performances. Once identified to lead projects, these managers take technical tests and behavioral training programs to identify their skill levels. These results are reassessed by senior leaders and are followed by simulation programs. In such programs, much of the technical details of the actual jobs are replicated to ensure that employees transition to

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 131 real-life projects smoothly. Employees’ performances are evaluated on the jobs followed by developmental opportunities to groom them to become effective leaders (Chhabria, 2010). NIIT (Rank 20) develops its employees via “live” domestic and global projects to ensure that its leadership talent is “homegrown” (Hewitt, 2010, p. 43 & 44). As a part of the leadership development training, high-performing employees are cross-trained in several functions (sales, education, etc.) to get a holistic knowledge about the company’s mission and goals. In all, 80 per cent of the company’s leadership talent is developed from its own ranks. Canon India (Rank 16) grooms its high-performing employees through professional development or project opportunities for mid and senior management positions. These HRM strategies (professional learning or work experiences) help build excellent competencies for leadership levels. The company hires 25 per cent of its management talent internally, as its HR philosophy dictates that internal employees are its best sources of talent. These employees understand both the internal and industry culture very well, making them excellent candidates. Similarly, Ford India (Rank 17) hires most of its management talent from its internal labor source. It has structured its succession planning via formal programs such as the People Development (PDC) Committee and the Individual Development Program (IDP). PDC initiatives allow employees to get leadership mentoring from senior managers; IDP allows individuals to seek leadership opportunities in the firm’s domestic 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, offer comprehensive 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 strategic alliances with leading technical colleges to recruit the brightest talent. The company offers high-performing students from leading technical institutions to work on actual projects. This helps the firm capture the best and also benefit from a mutual learning spirit. Wipro has learning centers large enough to provide classroom training for 5,000 employees. It provides almost four months of training for new applicants (Wadhwa et al., 2008). Wipro also invests in its senior leaders by financing their graduate education overseas in leading global 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 educational opportunities. Employees can attend in-house technical seminars or external conferences to keep themselves constantly updated on the latest trends in the pharmaceutical industry Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) (Wadhwa et al., 2008). The organization also provides excellent opportunities for their employees to pursue graduate technical programs by collaborating with leading universities (Hopper and Balakrishnan, 2003). Dr Reddy’s Lab has partnered with leading local colleges to create customized graduate programs that tailor entry applicants to the specific demands of its industry. The company also has an in-house leadership academy to coach their leaders. Such painstaking collaboration reflects an incredible interest by the organization in creating its own distinctive talent (Hewitt, 2010; Wadhwa et al., 2008). National Thermal Power Plant (NTPC) (Rank 6) partners with leading local universities to offer continuing education for middle and senior managers. These employees are fully compensated even though they may not be able to attend their normal work schedules because of their academic curriculum. Becton Dickinson (Rank 7) provides learning courses via its virtual universities and has their own internal leaders play the roles of corporate teachers (Hewitt, 2010). Whirlpool (Rank 14) offers part-time employment opportunities for college students and integrates top performing students from this pool into their workforce. This allows them to

PAGE 132 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 capture fresh talent that they can mold to their organizational culture. Their training for new entrants is considered exemplary and lasts for almost 15 months (two months on-the-job training, three months of structured mentoring and nine months of cross-training). For leadership positions, high-performing employees in this company are provided training for almost 40 hours per year (Wadhwa et al., 2008). In 2011, the company spent approximately about five crores (Indian Rupees) ($50m or €1m) on providing a variety of training with mentors, coaches and subject matter experts (Hewitt, 2010). Whirlpool requires its senior managers to assign time on a weekly basis to mentor their junior employees. The benefits of such real-life coaching between superiors and subordinates are twofold. It allows junior and senior employees to develop strong professional bonds, creating loyal workforces. Second, junior employees gain knowledge of actual business lessons from the experienced gurus (teachers). Similarly, Wipro has realized 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 are responsible to develop and train their subordinates into effective leaders (Mishra, 2011). Organizations have also stepped away from their conventional norms to adopt current trends in their industries. Aditya Birla Group invests in internal training academies and online learning to train their brightest recruits. This is considered a big step for a company that 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 its employees via programs such as Happiness Delivered and Winning Edge creating a very competent workforce. It also provides tuition reimbursement at both the undergraduate (75 per cent) and graduate (50 per cent) levels. These policies have created other positive HR outcomes – a loyal workforce at the management levels (Jubilant FoodWorks Limited, 2011). Cognizant has created a very strong knowledge culture via its online platforms such as employee blogs, internal Web sites, intra Twitter/Facebook services, making professional development both an individual and collective responsibility (Hewitt, 2010). This best practice of investment in learning adopted by many of these organizations is a very strategic step towards talent management. The HRM consequences of this practice contribute not only towards employee retention and knowledge capital but also helps in the integration of other various best practices. High-performing employees who have been through the appropriate internal training programs become potential candidates for succession planning or leadership positions. These firms are able to effectively integrate its HRM practices into one another creating a chain of effective people strategies (Cappelli et al., 2010). Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) 4.3 Egalitarian practices These organizations provide several opportunities for employees to informally mix and mingle with their upper-levels of management. These HRM practices are considered progressive in India as power-distance and hierarchy are deeply entrenched in the social and corporate context (Cappelli et al., 2011; Gannon and Pillai, 2010). These casual meeting atmospheres between superiors and subordinates via lunch, coffee or tea sessions have helped create and promote egalitarian work cultures. For example, in MindTree, top executives are not encouraged to have exclusive offices as all employees share cubicle spaces. These simple logistics have broken down apparent barriers of authority, allowing employees among various levels to freely share their innovative ideas. At First Source (Rank 24), high-performing employees get to spend time informally with their strategic leaders over lunches or dinners. These kind of egalitarian environments have fostered a culture of high performance, making HR departments realize that these management practices are effective organizational tools (Hewitt, 2010; Siddiqui, 2007; Singh, 2003).

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 133 In Becton Dickinson, the CEO and senior HR leaders frequently meet their front-line sales employees to understand what their work challenges and concerns may be. This had an immense impact on entry-level sales, as this is unusual in the Indian work environment for leaders to talk with the front-line staff. Further, employees perceive this practice as a recognition of their contributions towards the organization (Hewitt, 2010). At Maruti-Suzuki (Rank 15), the managing director (or CEO) has quarterly “tea-meetings” with junior employees to discuss their professional inputs and become aware of their contributions towards the organization. This was considered a big change, as the organizational structure was typically hierarchical (Siddiqui, 2007). The company promoted this concept of social equality at the workplace via various other initiatives. For instance, senior managers do not have private rooms, employees wear standardized uniforms and everyone eats in a common cafeteria. These practices allowed employees from different levels to socialize, blurring the hierarchical veil between the upper and lower levels of management. At LG electronics, the CEO frequently schedules lunches with various junior teams every week. This has helped subordinates share their work experiences and also understand the leaders of their company (Singh, 2003). There are also weekly pizza meetings for juniors and seniors to connect, which is not very common in the Indian work environment (Hewitt, 2010, p. 219). The role of HRM as a change agent is demonstrated by the introduction of these practices which are considered unconventional in the Indian context. Scholars identify such leaders as “change champions”, as they modify conventional values for those of progressive to enrich employees in a positive way. HRM leaders realize the importance of amending traditional 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 a strong developmental flavor. Employees are encouraged to make mistakes, thus promoting work 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 of collectivism among employees (Hewitt, 2010). Failures at work are considered as methods for individuals to evaluate and enhance their future performances. For instance, in Godrej (Rank 4), a project team encountered tepid customer responses in pilot-testing a new product for which a lot of investment (Rs 20, 000 crores or about $200m) had been made. The team decided to delay the release of the product based on the initial market feedback. The team did not perform what had been initially identified as one of its annual goals. The upper management did not take any Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) punitive actions against the team for its lack of performance but allowed team members to learn from its marketing mistake (Hewitt, 2010). Dr Reddy Lab’s performance tool, performance enhancement coaching tool (PERFECT), is an appraisal tool that identifies concerns in performances and complements those areas with adequate coaching needs. Employees, thus, perceive their annual appraisal process as a robust developmental tool. In fact, employees look forward to their appraisals, as the spirit of learning and coaching is encouraged (Cappelli et al., 2011). Kotak Mahindra (Rank 11) bank follows a self-appraisal system called Race based on four performance criteria (qualifier, challenger, achiever and high-flier). Employees who remain on 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 and planning their careers (Hewitt, 2010). NTPC implements a performance management approach of rewarding points in four distinct areas (individual performances, job competencies, organizational values and future potential). The interesting feature of this appraisal process is that individual performances are only one among the four aspects

PAGE 134 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 evaluated. There is equal emphasis given also to the other three performance-related criteria. For instance, allowing individuals to assess their future capabilities help incorporate career planning into the appraisal process (Goyal and Khurana, 2010). Aditya Birla Group implements a 360-degree performance appraisal process to ensure that employees receive feedback from various stakeholders. This is considered very progressive for an Indian work culture that reflects authority and power. Subordinates now feel they can question their superiors’ behaviors via the appraisal process. Further, it provides a comprehensive picture of the employees’ performances, encouraging training or coaching in the appraisal process. Employees have responded positively to such a well-rounded performance system by becoming more accountable. The company also changed the “kith- and- kin policy” (Som, 2010, pp. 560) of recruiting family members or friends, as this policy did not promote a culture of high performance. This change is considered 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 developmental appraisals. Many of these organizations offer coaching or development as a part of the performance management process. This allows the HRM departments to identify unified solutions using the outcomes of one (performance management) with the goals of another (training and development). In other words, the HRM leaders have been able to strategically connect the dots among the various practices to ensure better consequences for 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 practices have on employee productivity and retention. They adopt several practices that allow for such rich connection and employee integration (People Matters, 2013; Hewitt, 2010; Siddiqui, 2007). Hindustan Lever (Rank 1) offers job-sharing, day-care centers and other nurturing programs to ensure that its employees (males and females) may accommodate the demands and roles of work–life well. Job-sharing is a popular program that both men and women 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 the demands of their professional and non-professional roles. For instance, only one of ten men opt 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 its

Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) understanding and support of the various roles employees play in their professional and personal lives. These practices have helped women immensely, as they have more demands from their personal lives and roles (Ghosh, 2011; Hewitt, 2010). Career Choice allows women to restart their professional careers after any break, while Career Break provides sabbaticals (for 2 years) for both men and women. In India, almost 1.5 million women drop out of their careers, as cultural demands make it difficult for them to balance their professional and personal roles. Today, 25 per cent of the company’s workforce is represented by women and 18 per cent of the women are in leadership positions. The inclusion of such nurturing work–life practices have helped women establish a strong presence (Ghosh, 2011). The firm also provides monetary assistance and work accommodations for employees if their parents have any chronic ailments. Such acts of altruism leave an indelible impression in the employees’ minds, contributing to high rates of employee retention (Hewitt, 2010). Marriott Hotels (Rank 10) provides latitude in scheduling that allows sales associates take a break in their work-schedules every other weekend. The hospitality industry usually makes rigorous work schedule demands on its sales associates or front-line staff. Hence,

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 135 such an employment practice is viewed extremely positively by the employees (Hinkin and Tracey, 2010). The organization also allows associates to celebrate their birthdays with their families at the hotel properties, which includes a lavish one-night stay. Scope international (Rank 12) offers flexible timings for several positions, allowing applicants (such as home makers or housewives) to pursue these jobs as well. This is considered forward-thinking for a culture that usually does not tap into these non-traditional (housewives) labor segments (People Matters, 2013). Similarly, Aegis (Rank 25) allows its employees to work part time and also offers female employees to choose their core working hours. These practices provide employees a great sense of work–life balance (Hewitt, 2010). LG Electronics’, Family Connect, provides training opportunities for the family members of employees also. This initiative has become a huge retention tool, as employees are deeply appreciative 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 considered a generous leader in family-friendly benefits. This company provides medical insurance not only to an employee’s immediate family (spouse and children) but also to the employee’s parents (Kumari, 2011; Ghosh et al., 2009). These organizations provide opportunities for employees’ families to participate in corporate activities. At Maruti-Suzuki, the employees’ families are invited to observe the company’s manufacturing plants on assigned days called Parivar Milan (Family Connection). Such annual events, replete with fun and activities, allow employees and their families to connect and interact communally (Siddiqui, 2007; Hewitt, 2010). Similarly, at LG electronics, annual events and picnics have become the norm. Such benign practices help cultivate strong organizational bonds among the employees, their families and the organizations (Singh, 2003). These work–life and family-friendly practices create tacit psychological ties between these organizations and their employees. Further, they have positive HRM outcomes in terms of loyalty and employee turnover rates. For example, Marriott Hotels has 8 per cent lower attrition rates than its counterparts of its industry (Ganguly, 2013). NTPC has an attrition rate of 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 via empowerment, cross-training, role expansions and role variety. Employee engagement involves challenging or empowering employees to excel and grow (Martel, 2003). Employees will feel engaged when they feel connected to their work and are allowed to Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) explore different roles (Hewitt, 2010; Robinson, 2009). Aditya Birla, Marriott Hotels and Wipro group allow its mid-management employees to cross-train and seek positions across various functions (marketing, finance, human resources, etc.). This job rotation has helped employees garner a comprehensive strategic picture of the organization as they seek upper-level leadership positions. Aditya Birla has several different business units from finance to to telecommunications and has used this organizational diversity to its advantage in leveraging its internal talent across various business units. This allows its employees to experiment and expand in finding their right niches (Hewitt, 2010). Wipro has developed “Wings Within”, where entry and mid-level employees can choose different roles among the various business units or subsidiaries of the company. This has allowed employees to engage and explore various roles and positions (Barman, 2010) before finding their “sweet spots” (Robinson, 2009, p. 8). At Maruti-Suzuki and Scope, employees at entry and mid-levels frequently rotate among various jobs to enhance and enrich their knowledge, skills and abilities (Hewitt, 2010; Mishra, 2011).

PAGE 136 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 Many of these organizations empower their employees by providing a culture of autonomy and entrepreneurship. In Godrej Consumer Products, managers run their departments like “mini-companies” that give departmental employees complete autonomy (Hewitt, 2010). At NTPC, mid-level employees are allowed to participate in management councils that allow them to contribute and discuss strategic topics with upper levels of management. Such a process allows employees to experience the bigger picture and also understand the significance of their roles and tasks. Employees are frequently nudged to take on new challenging responsibilities to broaden their horizons (Kumari, 2011). Whirlpool India allows high-performing young leaders pursue global management positions. This practice of allowing their junior leadership talent experiment and develop has been an excellent recruiting and retention tool. The average employee age is 29 in Whirlpool India (Hewitt, 2010). Organizations like Aircel and Whirlpool India create exciting reward programs to engage their employees at all levels. These include employee of the quarter awards, brownie points, bravo cards (redeemable at consumer stores) and award ceremonies, which motivate employees to perform better. All these programs suggest that superior performances will get noticed and rewarded (Hewitt, 2010). These various examples of broader skill development is another key strategic move from these HRM departments. These initiatives allow these leaders to integrate the outcomes of these practices (cross-training, job-rotation) with other programs such as succession planning and professional development to get the best results for both the employees and the organizations. The integration among various HRM practices helps create idiosyncratic cultures that become difficult for organizations to duplicate. Further, it helps create “bundles” of strategic HRM practices that connect with one another to cultivate a holistic engaging environment (Ulrich et al., 2012).

4.7 Generous benefits These organizations offer several benefits to make employees feel valued with both monetary and non-monetary benefits. LG Electonics provides all its employees “Feel Free” hours (allotted time), where employees can engage in any external activities (playing sports, learning languages, etc.) that they would like to pursue. Employees are more productive at work when they have time for personal goals that they are passionate about. Neuroscientists suggest that motivation, learning and performance are powerfully linked to an 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 most creative 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 gold

Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) coins. 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 most local weddings (Gannon, 2004). The average age of the workforce is 46 and the attrition rate is 0.4 per cent (Hewitt, 2010). All the employees of NTPC are provided houses at subsidized rates which are usually in enclosed residential communities. These communities also have several other conveniences such as schools, parks, hospitals, stores, etc. This secluded environment also develops personal ties among the employees as they observe one another in non-professional roles. Hindustan Unilever, Godrej and Kotak Mahindra Bank provide several recreational benefits to their employees such as fitness and yoga centers and club memberships (Hewitt, 2010). Godrej Consumer Products adopts annual profit sharing, ensuring all its employees partake in its financial successes. These generous practices have also provided rich dividends in retention (Hewitt, 2010). This company also initiates a rewards culture following the Japanese Kaizen model. Employees are strongly encouraged to bring forth any new innovative ideas to enhance the workplace. This practice encourages employees to behave like internal consultants as they constantly scan and monitor their own management practices. Employees

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 137 are rewarded generously for any novel suggestions that would help create work-place improvements (Gondhalekar and Karamchandani, 1994). These organizations provide different forms of vacation benefits that result in positive outcomes for both the employees and the firms. Organizations like Aditya Birla offer their senior employees sabbaticals to encourage them to pursue other purposeful interests. For instance, a senior manager took a two-year sabbatical to participate in the Teach for India program. This has created positive outcomes for both the employee and the employer; the employee broadens his experience with this altruistic opportunity and the organization welcomes a more productive individual. Scope International provides mandatory vacations to their employees to ensure they have time for personal rejuvenation. For example, the company provides “block leave” that mandates all employees to compulsorily take two weeks of vacation time annually (Hewitt, 2010).

5. Discussion This research showcases an Indian model of best practices which reflects its own cultural or emic characteristics that might not be observed in other Western models. While there may be some overlap between the Indian model and that of Pfeffer’s, (professional investment, egalitarianism), there are some distinct differences also. This Indian work environment clearly reflects the importance of succession planning, as 40 per cent of these companies invest in structured 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 to coach employees to improve their performances. Family-friendly practices are also important in the Indian cultural context (32 per cent), as employees have close ties to both their nuclear and extended families. These themes from this Indian model can be contrasted to those of Pfeffer’s and others. The classic question begets whether HRM models are transferrable from one culture to the other (Cappelli et al., 2011). Scholars suggest (Cappelli et al., 2010) that Indian HRM practices might become a global paragon just like the Japanese manufacturing practices revolutionized the automobile industry a couple of decades ago (Fernández-Aráoz, 2007; Pfeffer, 2005). These Indian organizations demonstrate a sense of high investment and collaborative spirit in integrating with their employees. This has provided positive HRM outcomes, such as employee loyalty and retention. 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 are much below their industry averages (Hewitt, 2010; Wadhwa et al., 2008). Comparative statistics of 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 for Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) sales associates at Marriott Hotels (one of the identified organizations in this study) is 8 per cent below the average for the hospitality industry (Ganguly, 2013). The systematic succession planning practices identified in these organizations might also be very congruent with the national culture of future orientation and long-term planning (Gannon and Pillai, 2010). Succession planning, an elaborate staffing process, signals to employees that organizations have invested their time and efforts by identifying clear career paths for their employees. This staffing practice is very meaningful in the Indian work environment, 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 and promoting as evidenced by their internal recruitment strategies. For example, 60 per cent of Tata Teleservices management positions are from within the company (Ramnani, 2012). There is a cultural prominence on learning and education in the Indian environment. This characteristic translates well into the organizational context in the form of professional development. Organizations in India frequently behave as extensions of universities and provide several opportunities for learning (Gannon and Pillai, 2010). These organizations

PAGE 138 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 regard professional development as a collaborative journey between employers and employees. An educated workforce enhances the reputation of any company, as all the stakeholders benefit from the employees’ superior skills and abilities (Ulrich and Brockbank, 2005; Hatch and Dyer, 2004). These organizations have established egalitarian practices to reduce the conventional power-distance culture very visible in Indian organizations. These companies provide opportunities for informal meetings between senior and junior members. This practice is an uncommon feature in the Indian corporate, which has slowly helped transform these organizational cultures into being less hierarchical (Hewitt, 2010; Gannon and Pillai, 2010). Organizations that emphasize a developmental culture of performance create a nurturing work environment. Employees will present their best in an environment where punitive consequences do not govern the performance culture. These organizations provide an atmosphere that allows employees to be coached, mentored and trained to achieve superior levels of performances (Jackman and Strober, 2003; Iyer and Davenport, 2008). The creation of the software program, Java, was a result of Sun Microsytems’ tolerance and understanding that 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, among others will definitely attract a diversified labor pool. The demographics of any labor force include a variety of employees, such as dual-career couples, single working parents, employees with elder care concerns and employees with child-care needs. Organizations that 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 electronic retailer, Best Buy, has revolutionized the sheer concept of work by providing employees absolute work flexibility. This unique work practice allows employees to set their own work hours. They are held accountable only for their end results and not for their physical presences in the organization. The ROWE program has demonstrated 35 per cent increase in work productivity and more than 50 per cent decrease in employee turnover (Jossi, 2007). Organizations that provide a culture to ensure their employees are engaged experience positive financial and human resource outcomes. Bhatnagar (2012) demonstrated in an empirical study of 230 Indian managers that work practices such as employee empowerment and work engagement were critical predictors of firm innovation and retention. Employees who have work autonomy and challenging jobs are most likely to make innovative contributions. Most of Google’s innovative products (such as Gmail) have been the result of an engaging work philosophy (Iyer and Davenport, 2008). Engaging initiatives (such as cross-training, expanded career roles and enhanced responsibilities) create a strong connection between employees and their jobs and has shown to lead to

Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) increased retention and reduced employee turnover (Pfeffer, 2005). Indian business leaders often receive Forbes philanthropy awards in the Asia-Pacific region, suggesting a deep sense of altruism (Manjushree, 2011). This benevolent characteristic of nurturing is reflected in the manner these leaders treat their employees. Large Indian organizations offer a variety of employee benefits with the philosophy of cultivating a family environment within the organization. The local collectivist culture cherishes 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 the body of knowledge specifically on culture-specific or emic HRM practices (Zhu and Bargiela-Chiappini, 2013; Martinez and Dorfman, 1998). There have been several articles on 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

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 139 al., 2009). These researchers draw attention to these practices, as they have proven effective in several industries. Consequently, they imply that these emic practices may be good role models for global practitioners to implement. The question that may arise is whether practices from one country can translate well into another. Or will they be lost in translation? For instance, practices like egalitarianism might not be required to be implemented in cultures such as the USA, where the concept of equality among organizational levels is a norm. On the other hand, practices like the rigorous succession planning, generous benefits, developmental performance cultures and meticulous developmental strategies may be examples for Western organizations to emulate. Second, this article contributes to the cross-cultural and international management literature, as it provides both emic (local Indian companies) and etic (multinational subsidiaries) practices. This study provides seven themes of “best” emic practices that could provide preliminary guidelines for global practitioners (Lui et al., 2004). Multinationals frequently like to benchmark “best” local practices, as this implementation may be one of their best passports for cultural assimilation (Fernández-Aráoz, 2007). Budhwar et al. (2009) suggest from their qualitative study of 55 multinationals (MNCs) in India that these firms usually adopted emic approaches to HRM practices. This research also showcases etic practices of multinational subsidiaries (Becton Dickinson, Maruti Suzuki and LG Electronics), as these firms offer egalitarian initiatives which is not a common practice in India’s hierarchical environment. Other multinational subsidiaries (Marriott Hotels, Scope International and LG Electronics) provide family- friendly practices that are not the traditional norm among domestic companies. These multinationals follow progressive etic approaches in an effort to modify traditional emic practices of power-distance and gender egalitarianism (Budhwar, 2009). This resonates with a qualitative study done by Haq (2012), who demonstrated that multinational subsidiaries in India proactively promote etic practices and offer gender-friendly practices (towards women) both in their recruitment and work-schedule practices. This study also reflects how some subsidiaries (Canon and Ford India) have invested in succession planning, 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 these seven 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 staffing Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) practices. Firms should collaborate to develop strategic practices for leadership development 2 Professional investment The Indian culture values any form of continuous learning. Organizations should behave as proxy schools and invest in professional development either externally or internally 3 Egalitarian practices The local culture is doused in power-distance practices. Management initiatives that reduce these hierarchical barriers will be appreciated 4 Developmental appraisals The collective orientation prefers a developmental approach. Performance appraisals that emphasize coaching and mentoring will be congruent with the local culture 5 Work–life balance and family-friendly practices The collectivist culture views their commitment in their non-professional roles equally important as their professional careers. Management practices that provide 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 enhance business knowledge will be readily accepted by employees 7 Generous benefits The local work culture is experiencing a lot of job-hopping and attrition because of increased demand for talent. Organizations should invest innovatively invest in both non-monetary and monetary incentives to retain its talent

PAGE 140 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 Table III Content analysis identifying seven human resource management themes from the 25 “best” organizations % of firms reflecting these # Names of organization HR themes HRM practices

1 1 Hindustan Unilever Leadership development/ 1 Career management initiatives 2 Aditya Birla succession planning 2 CEO monitors succession plans for top 100 leaders 3 LG Electronics 40 % 3 Five-year career planning for 500 core leaders 4 Wipro 4 Succession planning initiatives in all business units 5 Kotak Mahindra Bank 5 Performance appraisals help identify superior performing 6 Scope International employees for leadership positions 7 Canon India 6 High performers are identified on a career track to take on 8 Ford India leadership positions 9 NIIT 10 Tata Steel 2 1 Hindustan Unilever Professional investment 1 Cross-training 2 Aditya Birla 64 % 2 Training academy, E-learning 3 LG Electronics 3 Coaching programs 4 Bharti Airtel 4 Standardized training for all managers; cross-training 5 NTPC 5 Power management institute (corporate university); executive 6 Becton Dickinson education programs 7 Aircel 6 Virtual university 8 Wipro 7 Aircel academy (corporate university) 9 Marriott Hotel India 8 Campus connect; cross-functional training; Wipro Academy of 10 Kotak Mahindra Bank Software excellence (WASE; corporate university); international 11 Scope International education 12 Dr Reddy’s Lab 9 Management development training for all managers 13 Whirlpool India 10 Synchronized and asynchronized online learning modules for all 14 Maruti Suzuki employees 15 Jubilant FoodWorks 11 Managerial training for new and experienced managers; 16 Cognizant employees receive training in other departments outside of their main roles 12 Leadership academy; technical seminars, conferences; international education 13 Education assistance for employees; coaches and mentors as trainers; elaborate training programs for managerial levels 14 Educational assistance; international training opportunities 3 2 Hindustan Lever Egalitarian practices 1 Internet portal for employees to freely express opinions about 3 LG Electronics 32% senior management 4 Dr Reddy’s labs 2 Pizza meetings for employees to communicate with top leaders 5 Maruti Suzuki 3 Collective decision-making from all levels for strategic decisions 6 Becton Dickson 4 Common cafeterias for all employees; tea meetings between 7 MindTree juniors and seniors 8 First Source Solutions 5 CEOs and HR leaders interact with front-line sales 4 1 Hindustan Unilever Developmental appraisals 1 Career progression appraisals with a focus on coaching 2 Godrej Consumer 20 % 2 Employees are encouraged not to fear performance failures Products 3 “PerFect” appraisal system focuses on being both Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT) 3 Dr Reddy’s Labs developmental and evaluative 4 Kotak Mahindra 4 Performance appraisals help identify skills required for coaching 5 NTPC 5 Future potential is identified in the appraisal process for developmental purposes 5 1 Hindustan Unilever Family-friendly practices 1 Day care centers, job-sharing, flex-time schedules 2 LG Electronics 32 % 2 Family connect programs to integrate employees’ families 3 Marriott Hotels India 3 Flex-time schedules; six days off every month 4 Kotak Mahindra Bank 4 Day care centers 5 Scope 5 Flex-time schedules 6 NTPC 6 Medical allowances for employees’ parents 7 Maruti Suzuki 7 Corporate events that include employees’ families 8 Aegis (continued)

VOL. 10 NO. 2 2016 JOURNAL OF ASIA BUSINESS STUDIES PAGE 141 Table III % of firms reflecting these # Names of organization HR themes HRM practices

6 1 Hindustan Unilever Engagement practices 1 Employees’ inputs on strategic decisions 2 Aditya Birla 56 % 2 Autonomy, entrepreneurial spirit 3 LG Electronics 3 Empowerment, ownership of tasks 4 Godrej Consumer 4 Empowerment products 5 Entrepreneurial spirit; expanded roles 5 Bharti Airtel 6 Empowerment 6 Becton Dickinson 7 Recognition programs such as employee for the quarter, 7 Aircel brownie points, bravo cards 8 Wipro 8 Entrepreneurial culture, empowerment 9 Marriott Hotels India 9 Cross-functional opportunities 10 Kotak Mahindra Bank 10 Empowerment and ownership 11 Scope International 11 Job rotation; employees can take four days per year to 12 Dr Reddy’s Labs participate in any social cause 13 Whirlpool India 12 Empowerment, ownership 14 Maruti Suzuki 13 “World of Winners” recognition programs for employees; 14 Expanded roles for employees; empowerment; job rotation 11 1 Hindustan Unilever Generous benefits 1 Gym, badminton courts, grocery stores 2 Aditya Birla 32 % 2 Employee sabbaticals 3 LG Electronics 3 Bonus five times a year; “feel free” hours to pursue personal 4 Godrej consumer hobbies products 4 Housing, school, club, gymnasium, sports centre; profit-linked 5 NTPC bonuses 6 Kotak Mahindra Bank 5 Elaborate retirement bonuses; gold coins for employees who 7 Scope International have 25 years of service; health clubs; access to best hospitals; 8 Maruti Suzuki above market pay salaries for executives; housing; gyms 6 Gym, yoga centre, prayer room, recreation centre, convenience store and cafeteria 7 “Block leave” of taking two weeks of vacation time per year is mandatory for all employees 8 Full medical assistance for employees and their families

benchmark these practices. Pfeffer (2005, 2006) suggests that “best” practices is largely contextual 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 Indian culture always likes to plan ahead. Similarly, professional investment is easily acknowledged 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 practices offered by these companies under these seven themes. A content analysis suggests that Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT)

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

 Leadership Development  Professional Investment  Egalitarian Pracces “Best” organizaons  Developmental Appraisals in India  Work-Life Balance & Family Friendly Pracces  Engagement Iniaves  Generous Benefits

PAGE 142 JOURNAL OF ASIA BUSINESS STUDIES VOL. 10 NO. 2 2016 professional investment (64 per cent), engagement (56 per cent) and leadership (40 per cent) practices are the most commonly offered best practices among these 25 companies. The Indian business model as evidenced from this study demonstrates a relentless pursuit of investment and collaboration. These firms provide meticulous talent pipelines for both internal and external sources of recruitment. Organizations view their roles as proxy schools as professional development is provided in different flavors. Egalitarian practices have helped break traditional communication barriers creating more transparency. These companies genuinely help employees reach their goals as performance management practices are considered synonymous to coaching tools (Cappelli et al., 2011). Work–life balance practices have helped employees balance both professional and personal goals which are very meaningful for the family-oriented Indian culture. Engagement practices have made employees find their perfect niches (Robinson, 2009) in a persistent effort to make them feel richly connected to their jobs and roles. Generous benefits have helped create family atmospheres within these firms and help enhance the retention rates (Doh et al., 2008). This model is a significant contribution of this study, as it advances the knowledge about best practices in India, an emerging nation in the Asian and global economy. This study is not without its limitations. This is an investigation on a few select large organizations (25) that have been identified as “best” in their industry in 2011. These organizations 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” practices might not be reflective or generalizable of what is happening in other organizations in the same industry or even in the same cultural context. However, they are valuable guidelines for 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 to identify comparative models. For instance, a majority of these Indian companies focused on professional investment and engagement initiatives. Are these characteristic to the Indian work environment? These answers require further investigation of best practices from other nations also. Empirical researchers can also test this model via surveys or interviews to prove or refute its claim.

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Corresponding author Pramila Rao can be contacted at: [email protected] Downloaded by ABE, Miss Claire Siegel At 04:54 16 October 2017 (PT)

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