The configuration of developing and integrating IHRM practices in Auto parts MNC subsidiaries

The case of Schaeffler Technologies in India

By

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

1.1 Background1

1.2 Company background1

1.3 Problems statement1

1.4 Purpose and Significance2

1.5 Research justification3

1.6 Research aims3

1.7 Research Objectives3

1.8 Research questions4

1.9 Hypothesis4

1.10 Structure of the dissertation4

CHAPTER 2: LITERATURE REVIEW6

2.1 International Human Resource Management6

2.2 Recruitment and Selection7

2.3 Training and Development8

2.4 Performance Evaluation9

2.5 Compensation9

CHAPTER 3: METHODOLOGY11

3.1 Mixed Research11

3.2 Classification of research methods12

3.2.1Multi-method studies12

3.2.2 Mixed method studies12

3.3 Steps in mixed methodology12

3.4 Strength and weakness of the mixed research13

3.4.1 Strengths13

3.4.2 Weaknesses13

3.5 Instrument for data collection13

3.6 Methods of objective13

3.7 Data collection14

3.8 Primary data collection and its Justification14

3.9 Secondary data collection and its Justification14

3.10 Sample of the Research14

3.10.1 Steps in sampling process14

3.10.1 Respondents15

3.11 Data collection process and Difficulties15

3.12 Ethical Considerations15

REFERENCES16

CHAPTER 1: INTRODUCTION

1.1 Background

The field of human resource management is growing as many scholars have realized that organizational success depends on the effective human resource. Since the organizational success depends on the human resources practices, it is very important that the human resource strategies are aligned with the overall business strategy of the organization. As far as the multinational organizations subsidiaries are concerned, the multinational subsidiaries usually adopt the strategies of the headquarters (Allen 2004 58). This research will focus on the international human resource practices in Schaeffler Group in India.

1.2 Company background

Schaeffler India, a major player in the Indian automotive components industry, will build a state-of-the-art research and development center in India for the Asia Pacific region, modernize its existing plants and add new product lines. The company will also invest in its human resource capital and increase its staff strength of 2,089 by 10% over the next three years (Arshad 2010 1791).

Schaeffler India consists of the internationally famous brands of LUK, INA and FAG. It is one of the leading automobile components manufacturers and supplier of ball and roller bearings, clutch and clutch releasing systems, engine and transmission components in India. It operates a clutch manufacturing plant at LUK India in Hosur, manufactures engine and transmission elements at INA India in Pune and ball and roller bearings at FAG India at Vadodara.

Schaeffler India produces over 110 million parts per year for the Indian market through its three local production facilities. New generation vehicles have the contributions of Schaeffler India's products in all segments offering innovative technology that is both economical and safe.

1.3 Problems statement

The rapid internationalisation of commerce today has spawned a large number of multinational corporations whose operations span across many national boundaries. The unique nature of the international operations of these multinational corporations means that they have to adopt new human resource management strategies that take into account the international nature of their operations, called International human resource management (international human resource management). The need for international human resource management stems from the fact that division of labour increases efficiency; when a firm's operations are spread across different geographical regions, its international human resource management strategies can be used as part of its business strategy. Balain (2010) for explains that three different staffing approaches ...