MDI GURGAON Staffing Approaches for Tata Motors in U.K., Mexico and Kenya IHRM Project Kanika Kakkar (09PGHR17)|Madhur Kathpal (09PGHR20)| P.Swathi Shree (09PGHR27)|Priyank Bhandari (09PGHR31)| Roshni Arora (09PGHR38)| Vividh Bansal (09PGHR58) 2/3/2011 The project is a part of submission for the course IHRM for PGP-HR 2009-11 Term VI
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MDI Gurgaon
Staffing Approaches for Tata Motors in U.K., Mexico and Kenya
The project is a part of submission for the course IHRM for PGP-HR 2009-11 Term VI
Acknowledgement
We would like to take this opportunity to extend our gratitude to Prof. Pawan Budhwar
whose knowledge and experience has served as a continuous source of encouragement and
motivation. Without his invaluable guidance, this project would not have been possible. We
are grateful to the PGHR chairperson Prof. Jyotsana Bhatnagar for giving us the opportunity
to pursue this course under an esteemed faculty.
Last but not the least we would like to thank our esteemed institute, Management
Development Institute, Gurgaon, for providing the necessary facilities, without which this
project would have remained an unfulfilled dream.
Table of Contents
Sr. No.
Title Page No.
1 Objective 42 Company Chosen 43 Methodology 44 About TATA Motors 45 Competencies required in automotive industry 56 Culture – UK, Mexico, Kenya 67 Other considerations from research 88 TATA Motors in UK 119 Immigration rules in UK 11
10 Working in UK 1211 Employing Workers in UK 1312 Critical Analysis- Staffing Approach of Tata Motors in U.K. 1513 Mexico – Recruitment Considerations at Mexico 1914 Recruitment Practices followed in Mexico 2015 Critical Analysis- Staffing Approach of Tata Motors in Mexico 2116 Recommendations – Staffing Approach 2317 Kenya – Push and Pull factors to go to Kenya 2418 Culture of Kenya 2419 Critical Analysis- Staffing Approach of Tata Motors in Kenya 2520 Recommendations – Staffing Approach 25
References 27
Objective
The objective of the project is to recommend staffing approaches for an Indian company, giving
reasons for the same for subsidiaries in U.K., Mexico and Kenya.
Company chosen
The company that we have chosen for our analysis is Tata Motors. The company has subsidiaries in
U.K., and plans to progress in Mexico and Kenya.
Methodology
The methodology followed by us was-
1. Literature Survey: We studied literature on Staffing approaches followed by various Indian
Companies through journals and articles, as well as on the internet.
2. Critical Analysis: based on the information from the literature survey, we critically analysed
the 3 staffing approaches for U.K., Mexico and Kenya.
3. Recommendations: Based on the Critical analysis performed and our own judgement, we
recommend staffing approaches for the 3 countries.
About Tata Motors
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10.
It is a leader in commercial vehicles in each segment.
It is also amongst the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments
Along with that Tata Motors is World’s fourth largest truck manufacturer, and the world's
second largest bus manufacturer.
The employee strength of Tata Motors is 24,000
It is guided by the vision to be "best in the manner in which we operate, best in the products
we deliver, and best in our value system and ethics.“
Tata Motors has it operations in the UK, South Korea, Thailand and Spain. It also has a
strategic alliance with Fiat.
Competencies Required in Automotive Industry
Level 7 – Senior ManagerLevel 5 – Middle ManagerLevel 3 – First Line Manager
1. Creates a winning culture 2. Keeps things safe and legal 3. Organizes efficient systems4. Makes sense of information 5. Leads the team 6. Engages the workforce7. Selects the right people 8. Gets results through people 9. Adapts plans to a changing market 10. Grows customer value 11. Makes money 12. Drives sales 13. Joined up thinker 14. Acts decisively 15. Can do attitude 16. Develops self
Source: Automotive Management Association
Culture – U.K., Mexico, KenyaIndia
Mexico
United Kingdom
Kenya
Dimension Score Kenya
Score India
Score Mexico
Score U.K.
Power Distance Index
64 77 81 35
Individualism 27 48 30 89
Masculinity 41 56 69 66
Uncertainty Avoidance Index
52 40 82 35
Long Term Orientation
25 61 25
Other considerations from Research
Factors favouring HCNs-
A study by Banai and Reisel (1993) found that PCNs and HCNs do not differ with regard to their
loyalty to the MNC, which provides a strong case against the assumption that HCNs give subsidiary
concerns priority over headquarters’ concerns.
Factors favouring PCNs-
An in-depth study by Moore (2006) shows that PCNs do not primarily fulfill their role as control
organs of the headquarters, but that they strategically use their position between the Subsidiary
staffing and initiative-taking local and the headquarters management to follow their own personal
aims and motivations.
Additionally, Black and Gregersen (1992) as well as Loveridge (2006) demonstrated that a
headquarters orientation is only with those PCNs that do not go native (e.g. by marrying a host
country national, converting to the locally dominant religion, or taking up permanent local residence),
whereas Peterson et al. (2000) found that a strong orientation towards the local subsidiary is only with
those HCNs that do not have international career options.
Subsidiary CEO’s Positioning
Regional Selection Criteria
Asia Pacific
Europe & the Middle East
The Americans
Japan
Most Important Criteria
Skills or Competencies
Skills or Competencies
Skills or Competencies
Job Performance
II Most Important Criteria
Job Performance
Job Performance
Job Performance
Job Level
Least Important Criteria
Marital Status
Marital Status
Marital Status
Projected assignment cost for the Individual
II Least Important Criteria
Language ability
Projected assignment cost for the Individual
Language ability
Marital Status
* ORC Worldwide 2002 , Worldwide survey of International Assignment Policies and Practices
U.K.
It is a constitutional monarchy and unitary state. It consists of four countries-England, Northern
Ireland, Scotland, and Wales. It is governed by a parliamentary system with capital in London .It is
a developed country, with the world's sixth largest economy by nominal GDP and eighth largest
economy by purchasing power parity. It was the world's first industrialised country and also was the
world's foremost power during the 19th and early 20th centuries, but the economic and social cost of
two world wars and the decline of its empire in the latter half of the 20th century diminished its
leading role in global affairs..
Tata Motors in U.K.
In the UK, Tata Motors has set up the Tata Motors’ European Technical Centre in Warwick, engaged
in the business of design engineering and product development for the automotive industry.
In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, to be launched later in the
year in India. A development that signifies a first for the global automobile industry, the Nano brings
the comfort and safety of a car within the reach of thousands of families. The high fuel efficiency also
ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint. Tata Motors’ portfolio comprises the
Tata, Jaguar and Land Rover brands.
Under the UK government's Automotive Assistance Programme (AAP), to develop and
manufacture the Tata Indica Vista Electric Vehicle in the UK
The loan will support the £25 million investment from Tata Motors to develop and
manufacture electric vehicles in the UK.
Loan will strengthen electric vehicle manufacturing expertise, securing and creating high value
engineering jobs in the West Midlands. "The government is determined to help the car industry to
exploit fully the opportunities offered by green manufacturing. Today we are backing Tata as Tata
backs Britain,” Business Secretary Lord Mandelson.
Introduction: Immigration Rules in UK
The current immigration categories for highly skilled workers, investors and entrepreneurs -
Highly skilled workers-Tier 1 (General) of the points-based system
No job offer, but you must demonstrate that you are highly skilled, have money to support yourself and can speak English
Closed to applicants outside the UK.
Entrepreneurs: Explains the requirements for applying under Tier 1 (Entrepreneur) of the points-based system
Investors :Explains the requirements for applying under Tier 1 (Investor) of the points-based system
Post-study workers: This section explains how you can apply under Tier 1 (Post-study work) of the points-based system.
Working in U.K.
There are three principal bases on which you may apply to bring non EEA nationals to work in the
UK:-
Work permit: The work permit scheme enables UK based employers to recruit and bring employees
from outside the EEA to work in the UK. However, strict and detailed rules apply to work permit
applications and in most cases the employee will need to have a UK degree level qualification.
The Department of Education and Employment issues all work permits through its Overseas Labour
Service (OLS). It accepts applications only from employers based in the UK in respect of a specific
job. The application must be made before the proposed employee arrives in the UK, typically taking
two to four weeks to process. Generally speaking, there are three types of work permit:
A full work permit - must show that there is no other person within the EEA who can
perform the job to the required standard
An intra-group work permit -the employee must have worked for at least 6 months at a
relatively senior level in your organisation
Board level work permit – The individual must have responsibility for the day-to-day
running of the company in the UK, will have a number of years' experience at that level
and will command a salary of at least £50,000
Work permits can be granted for up to five years. After four years, the employee may apply for
permanent residency in the UK (which, if granted, means that he or she will no longer require a work
permit to continue working in the UK).
Sole representative: If you have no existing branch or subsidiary or representative in the UK, 'sole
representative' may enter the UK to establish a branch or a subsidiary without a work permit.
However, in all cases, entry clearance must first be obtained from the British Embassy or Consulate.
The applicant must provide:-
a full description of your company's activities;
evidence that your company will establish a branch or subsidiary;
details of his or her job description and salary and a copy contract of employment;
a statement from your company that he or she will be its sole representative;
confirmation that he or she is an existing senior employee who can make important
decisions on behalf of your company and that he or she is familiar with all aspects of the
firm’s activities and policies; and
a current passport.
Although a sole representative does not need a work permit, other employees coming in from
overseas to work in a newly established branch will do.
Business visitor: Just sending individuals to attend meetings and contracts.