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Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 12
November 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 283
A Study on Hr Practices With Respective To Multinational
Companies
G. Monica Jadav
MBA
Badruka College
Abstract:
The most important asset for any organization is their Human Resources and they serve the
organisation to achieve its goal. Management of human resources plays an extremely vital
role as compared to the technology or capital and for its effective management, organization
requires effective HRM practices. HRM practices refer to activities of organization directed
at managing the puddle of human resources and ensuring that the resources are engaged
towards the accomplishment of organizational goal. This paper has been designed to review
the existing literature based on HRM Practices. The purpose of this paper is to build up an
understanding of HRM Practices and to examine the unique HRM practices implemented by
different organisations
Keywords: Human resource management; HRM practices; Organisations; Employees
performance
Introduction
The most important asset for any
organization is their Human Resources and
they serve the organisation to achieve its
goal. Management of human resources
plays an extremely vital role as compared
to the technology or capital and for its
effective management, organization
requires effective HRM practices.
Globalisation has provoked some
interesting speculation on the part of
enthusiasts about a „globalised economy‟
in which distinct national economies are
subsumed into region-states and
companies follow the same set of „best
practices‟, adopt a convergent model of
organisation that leads to a process of
homogenisation in their behaviour and a
deterioration of national management
models (Rowley & Benson 2002; Bartlett
& Goshal 1989). Success in today's
competitive market depends less on
advantages associated with economies of
scale, technology, patents but are more
derived from organizational human
resources and high involvement of human
resource management practices ( Tahir
Masood Quresh, Ayisha Akbar,
Mohammad Aslam Khan, Rauf A. Sheikh
and Syed Tahir Hijazi,2010). For an
organization to be more effective it should
have skillful and innovative employees to
work and should also try to retain them.
There is not a single HR Practice which a
company aspires to retain its employees.
There are different HR Practices which a
company combines to manage its HR
system. A company should always
combine “Number of Best HR Practices”
which they should implement for the
survival and sustainability of the
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Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 12
November 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 284
organization. ”Best practices" in HR are
subjective and transitory. They enhance
internal capabilities of an organization to
deal with current or future challenges to be
faced by an organization. Good HR
practices also energize people working in
the organization. The commitment and
motivation built through good HR
practices can lead to hard work. The
culture so built can help to create a
sustainable and lasting capability of the
organization to manage itself and not only
cope with the external turbulence (Aneet,
2006). Good employees are supposed to
have such characteristics as high
satisfaction with their jobs, high
commitment towards the organization,
high motivation to serve the public and
strong intentions to work for the
organization willingly and devotedly. (
Sangmook Kim,2004). There are different
HR Practices for the organization to adopt.
HR practices contribute to the
organization‟s bottom line, areas such as
recruitment, selection, training,
development and performance appraisal
which should be consistent, integrated and
strategically focused. Firms need to build
long-term commitment to retain their work
force.
Literature Review
According to Khatri (1999), manpower is
one of the most vital means for any
organisation which provides flexibility and
adaptability to organization. Rundle (1997)
argues that one needs to keep in mind that
employees (managers), not the firm,
follow the adaptive mechanism to
determine how the firm will withstand in
this competitive environment. DOI:
10.18535/ijsrm/v4i9.03 Akhilesh Mishra,
IJSRM volume 4 issue 09 September 2016
[www.ijsrm.in] Page 4642 However those
firms that have learnt, the management of
their human resources well would have an
edge over others for a long time to come
because acquiring and deploying effective
human resources is weighty and takes too
longer period of time (Wright et al., 1994).
Storey (1995) defines HRM as an
idiosyncratic approach to management of
the employment which seeks to obtain
spirited benefit through the exploitation of
a highly devoted and accomplished
manpower, using an array of techniques.
HRM can help organisation to improve
their manners in such areas as staff
commitment, proficiency and suppleness,
which in turn leads to improved staff
performance (Koch and McGrath, 1996).
In order to develop a potent HRM system,
the organization should have effective
Human Resource Management practices.
HRM practices refer to organizational
activities directed at managing the pool of
human resources and ensure that the
resources are engaged towards the
fulfillment of the goal of the organization.
(Schuler & Jackson, 1987; Schuler &
MacMillan, 1984; Wright & Snell, 1991).
HRM practices may differ from one
organization to another and from one
country to another. The modern strategy of
privatisation is based on the expectation
that the private sector is more efficient
than the public sector in the management
of an organisation. There is a hope that
changes in the ownership will lead to
organisational transformations that will
affect the way that the privatised
organization is well organised, governed
and managed, encouraging efficient
utilisation of its resources with improved
performance (Vickers and Yarrow, 1988).
This is only possible when their human
Page 3 of 5
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 12
November 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 285
resource management (HRM) department
play an important role in a strategy like
privatisation which seeks to improve
efficiency and performance in
organizations (Beer and Spector 1985).
According to Robbins (1982), HRM is a
process consisting of acquisition,
motivation, and maintenance of human
resources. On the other end, a definition
proposed by Nadler L (1970) for HRD as
“a series of organized activities conducted
within a specified time and designed to
produce behavioral change” through
training activities
HR Practices
HRM practices organizations could
employ to enhance knowledge-related
outcomes, otherwise known as knowledge- driven HRM practices. Using an
illustrative case study, Gupta and Singhal
(1993) investigate how companies manage
human resources to foster innovation and
creativity. They conceptualize HRM
practices along four dimensions
(1) Human resource planning, which
includes creating venture teams with a
balanced skill-mix, recruiting the right
people, and voluntary team assignment.
This strategy analyzes and determines
personnel needs in order to create effective
innovation teams.
(2) Performance appraisal, which includes
encouraging risk taking, demanding
innovation, generating or adopting new
tasks, peer evaluation, frequent
evaluations, and auditing innovation
processes. This strategy appraises
individual and team performance so that
there is a link between individual
innovativeness and company profitability.
Which tasks should be appraised and who
should assess employees‟ performance are
also taken into account.
(3) Reward systems, which includes
freedom to do research, freedom to fail,
freedom to form teams, freedom to run
businesses, balancing pay and pride,
noticeable pay raises, dual career tracks,
promoting from within, recognition
rewards, and balancing team and
individual rewards. This strategy uses
rewards to motivate personnel to achieve
an organization‟s goals of productivity,
innovation and profitability.
(4) Career management, which includes
empowering people, leading by
example,and continued education. This
strategy matches employees‟ long-term
careergoals with organizational goals
through continuing education and training
