International Human Ressources Achour Mourad de Beaudéan Adrien.

International Human Ressources

Achour Mouradde Beaudéan Adrien

Summary

I/ The economic, politic and cultural context in which managers work in India and Brazil

II/ The main trends and labour market

III/ Management and organization

IV/ Management of Human ressources

I/ Contexts • Introduction

Country Area (km²)

Population Population growth (%)

GDP – Real Growth rate

Inflation rate

Workforce (millions)

Unemployment rate (%)

India 3 287 263 1 166 079 217 1,548 7,4 8,3 525,5 9,1

Brazil 8 514 876 201 032 714 1,199 0,1 4,2 95,21 5,4

South Africa

1 219 090 49 062 489 0,281 3,1 11,3 17,79 22,9

Mexico 1 964 375 111 211 789 1,13 1,3 5,1 42,32 4

I/ ContextsA) Economic

India

• In 1991 the government decided to change the country from a state regulated to a free market industry

• Increase of foreign investment: export sector : +20% mid-2000’s

• Agricultural sector: 60% of the working population (country self-sufficient) but only 17.6% to the GDP

• Industry: 12% work. Pop, 29% of GDP

• Service: 53.4% GDP in 2008

• India is the “electronic housekeeper of the world”: information technology 47,6% growth / year New employment

I/ ContextsA) Economic

Brazil

• Historical tradition, even though globalization

• Hybrid management model

• Dependent on agriculture and exports of raw materials

• Privatization of public utilities

• South America's most improved economy

• Major producer and exporter of agricultural products

I/ ContextsB) Politics

India

• India is a Republic and one of the largest constitutional democracies in the world

• Stable since its independence from GB in 1947

• Elected president with limited political power

Brazil

• Brazil is a federal republic and have a democratically elected government.

• Brazil became independent from Portugal in 1824.

I/ Contexts

C) Cultural

India• Mixiture of religious, caste and linguistic groups: Hindouism

(80.5%), Islam (13.4%), Christianity (2.3%), Sikhism (1.9%) and others (1.8%)

• 3000 castes and ethnic groups, 200 languages and 500 dialects

• The two official languages are Hindi and English

• British cultural influence is very strong

I/ Contexts

C) Cultural

Brazil

• Brazil has Portuguese as its national language.

• Religious symbols and rituals are very important in people lives.

• The population is predominantly Christian (89%).

II/ Labour market and trends

A) Unemployment

India• Introduction of drastic austerity mesures to improve

organizations’ performance Eliminate their surplus labour

Brazil• Especially among the young people • Lowest rate of unemployment in South America• First Employment Program introduced in 2003

II/ Labour market and trendsB) Agricultural employment

India• 60% of employment

• More and more young and educated job seekers are not willing to work in agriculture because of the emergence of others sectors less difficult and well-pay, like in IT

Brazil• International markets for the export of agricultural products • 10% of the workforce is based on agricultural sector

II/ Labour market and trends

C) Employment and foreign investment

India• The liberalization process much foreign investments

• 2000: 15.000 multinational in India

• Availability of an English speaking, competent, highly educated and skilled workforce that provides effective and efficient work

• Existence of well-established infrastructure

II/ Labour market and trends

D) Multinationals and employment

Brazil• A significant aspect of South America labour markets has been

growth of foreign direct investment by multinational companies which created an appreciable level of employment for the indigenous workforce.

II/ Labour market and trends

E) Informal sector employment

India• Only 7% is organized-employment

• 93% of 402 million were employed in the informal or unorganized sector

• No protection against arbitrary dismissal, work security

(accidents), and social security (maternity and health care benefits

II/ Labour market and trends

E) Informal sector employment

Brazil• Privatization of state-owned companies Decline in public sector employment = growth in informal sector

• This sector is becoming the largest employer

• Temporary, seasonal and short-term employment contracts are very common

II/ Labour market and trends

F) Female participation in the labour market

India• Women: jobs from home or to work in the informal sector

(30% for women, 6.5% for men)

• New reforms: education, foeign invest, development of new sectors

• Providing opportunities to women: get access to the labour market

II/ Labour market and trends

F) Female participation in the labour market

Brazil• Increasing employment of women

• Better education

• Still low-paid and not in all sectors

• More and more women are entering the labour market, gender inequality is still widespread

II/ Labour market and trends

G) Child labour and illegal employment practices

Country 0-14 years (%)

15-64 years (%)

Other 65 years (%)

Median age (years)

Life expenctancy at birth

India 31,1 63,5 5,5 25,3 69

Brazil 26,7 66,8 6,4 28,6 72

South Africa

28,9 65,8 5,4 24,4 50

II/ Labour market and trends• H) Skill shortages

India• Industries suffer from acute shortages of skilled and

professional employees

• Shortages of programmers

• Annual demand for software employees will surpass the supply by about 235.000 in 2008

• The shortage appears to be more critical at the middle and upper management level and high skill categories

III/ Management and organizationIndia

Authoritative and paternalistic management

• Management and leadership styles can be bureaucratic and authoritarian

• Mecanisms of control, hierarchy, status consciousness, or nurturant-task

• Authoritarism on one side and participative leadership on the other

• Like a family: with affection, dependence and need for personalized relationships

III/ Management and organizationIndia

Integrated and international management

• Indian managers: educated in western countries or in indian institutions of education that are based on their model

• This hybrid management has grown over the years and control the indian economy

• It benefits from foreign direct investisments (MNC)

III/ Management and organization

Brazil• Managers in Brazil use a combination of national and

international management policies

• Person-centred approach : because of the importance that managers give to social relations at work

• Authoritarian management and procedural formality

• Paternalism : they run business as family unit

IV/ Managing human resourcesA) Recruitment and selection

IndiaRecruitment: Difference between the recruitment of the more qualified (white-collar) and the less qualified (blue-collar) employees• White-collar employees by advertising externally through agencies• Blue-collar employees through both external and internal advertising

(introductions, recommendations)Selection: Tough and rigorous because employees have many applicants to choose fromGraduate recruitment:• Millions of college and university graduates join the labour market • More and more difficult for the new graduates to find employment. • Consequently with this wider pool of graduates to choose, the process

selection has become more complex and sophisticated

IV/ Managing human resourcesA) Recruitment and selection

Brazil• Labor market is very dynamic, particularly for managers

• Brazilian but also international recruitment agencies are increasingly important in the job market

IV/ Managing human resources

IndiaB) Training and development

Education and learning:

• Education system is made available to all classes of society • Higher education institutions are known for their world-class standards and

their reputation of their schoolars. • Undergraduate and post graduate levels suffer from acute shortages of resources

Vocational education and training• Lot of spezialized vocational training intsitutions throughout the country. • Apprenticeship: very limited

Organizational training• Reforms have put great pressure on indian employers to train more employees• Goal: to face the challenges o international competition in a free market

economy

IV/ Managing human resourcesBrazil

B) Training and development

• Organizational training : basic education and training to their employees. Government has introduced lots of financial incentives.

• Apprenticeships : family-owned companies push to learn a job from the experienced employees.

• Vocational training : Higher Technological Institutes to learn specific skills by short term courses

IV/ Managing human resourcesC) Reward and remuneration

India• Basic pay, benefits and allowances

• Indian employees receive a basic salary and a number of benefits, allowances and bonuses

• 50% of the total pay= rewards above the basic salary

• Bonus: to attract top management talent

• Performance appraisal and performance related pay

IV/ Managing human resourcesC) Reward and remuneration

Brazil• Large range of monetary and non monetary reward with their

employees

• Increase the gap between the more and the less educated employees

• Minimum wage reached 312 USD in 215

Conclusion

Thanks to these two examples which are India and Brazil, we can see the evolution from an economical or political point of view. These developing countries which are creating their social model from scratch can be a model for western countries which have reached some limits. (for example social protection)