Workforce Diversity in a Foreign Subsidiary

1. Abstract:

In the today's dynamic competitive business environment, Diversity management is one of the main element challenging area in Human Resource Management (HRM) in specifically to the Multinational Companies (MNC's) those who have started their businesses recently in a country like India where in fact the culture is completely different from european culture. This newspaper mainly targets to what magnitude Goal India, the subsidiary of retail large Target Corporation, USA, has taken initiative to keep the work power diversity and assess the major issues and issues confronted while implementing with their strategic HR procedures. It also discusses the role of Man Source of information Management (HRM), International Individual Resource Management (IHRM) and Strategic International Human Tool Management (SIHRM) in utilizing and integrating the diversity initiatives. To look at the effectiveness of Aim for India HRM insurance policies with regards to the variety and culture, I used publicized sources like Goal internal files, articles, literature, internet and online data bases.

2. Benefits:

Target Corporation is one of america biggest shop. It was proven in 1902 and known as Dayton Dry out Goods Company before it was known as as Aim for. The first Target store was opened in Minnesota, in 1962. It is widely multiply in United States with 1, 613 stores in 47 states. This includes 240 Super Goal stores which gives a unbelievable grocery shopping experience. Target ranked 41 on the list of "Americas Most Reputable Companies"-2009

Target Firm has its existence in India by creating Target India Company in Bangalore in 2005. Concentrate on India has 2500 employees presently which is expected to grow faster and also have 5000 employees by end of fiscal yr 2010. Goal India is located in three different places in Bangalore namely Embassy Primary, RJU building which is named after Robert J. Ulrich, the past CEO of Target Corporation and GWS building which is named after Gregg W. Steinhafel. Another location has been founded in Mysore in 2015.

Due to demographic differences, it's very obvious that Aim for India with respect to Target Organization varies in work culture, time, work-life balance and all public and personal aspects. Aim for India takes every effort to develop Concentrate on culture in the task place which is nearly the same as Target brain quarters with help of strong strategic HR insurance policies.

Target is in particular about the company culture which include Collaboration, lessening hierarchy, Work/Life balance, Accountability. Target's perspective to be "the best company ever" follows the three core principles: FFF (Fast, Fun and Friendly), E's of Superiority (Energy, Passion and Execution) and Acceleration is life.

3. Backdrop:

Target Firm has its just offshore extension called Concentrate on India. The fast and extended growth of Focus on India displays the commitment to build up a global work force. Concentrate on drives business effectively by motivating associates (employees), crediting innovations and thereby presenting the best guest experience. Aim for India plays an integral role in providing the brand offer of Focus on "Expect More. Pay Less. " by implementing the technology and business solutions. Target India works together with ten pyramids: Focus on India is a key partner to achieve the vision of Goal "Best Company Ever" and reach the goal of 100 billion in level. The key fulfillment of Goal India is beginning Goal Sourcing Services (TSS) in Bangalore during the first wedding anniversary and also by opening the new center which is currently called Gregg W. Steinhafel (GWS) centre.

4. Literature Review:

Over the years, it is very obvious that organisations are considering diversity as an important competitive benefit factor to support in the market place where they can serve various array of customers and their needs, to help make the customers and stake holders happy and meet. Diversity so this means is reached beyond the Equivalent Employment opportunity legislation and provides possibility to the labor force with irrespective to gender, colours, religions, races.

One of the most important styles in the recent years has been the growing curiosity about the huge benefits to be achieved by planning for a diverse labor force known as diversity management. This was based on view that "people should be treated equally irrespective of race, cultural orgin, gender and sexual orientation and other social categorization so that individual are enabled freely and evenly to be competitive for sociable rewards (Jewson and Mason, 1986 P. 307)". Jewson and Mason place equivalent opportunities within a free of charge market tradition, and the purpose of the legislation and polices was viewed as removing road blocks and distortions to the working markets. Regarding to liff(1997b), there are four methods to managing diversity based on the amount of the dedication to sociable group equality as an organizational target and on the perceived relevance of communal group differentiation for plan making. Four diversity management solutions are :1)dissolving the dissimilarities2) valuing the differences3)accommodating dissimilarities4)utilizing differences

Diversity, according to Schneider (2001, P. 27) is "about creating an operating culture that looks for, respects, prices, and harnesses difference'. The essential distinction with the equal opportunities can be an acceptance that there is difference between people, that such difference can be respected and they are the source of productive probable within the organisation".

Thomas(1995) argues that "diversity does not automatically mean with respect to competition and gender and illustrate diversity as not synonyms with difference but encompasses difference and similarities". (Cassel 2001) define" variety is a complex, multidimensional concept as a whole. It really is a plural term with different belief in different organisations, societies and natural cultures without any unitary meaning".

Hofstedede's (1980) research suggest demonstrate that even within a large multinational, famous for its strong culture and socialization work, national culture is constantly on the play major role in differentiating work principles. The convergence /divergence argument (Webber 1969) states that economical development, technology, and education would make possible globalization whereas differential degrees of available resources and national cultures works against this.

The dependence on human resource consultants, professionals and specialist to look at international orientation in their efficient activities for those who are working in Multinational Businesses (MNEs) are participating in key role in utilizing the cross ethnical and comparative individuals learning resource management to make their organisation success. Boxall (1995) establish the variation between comparative HRM and International HRM.

5. Variety Management

Diversity Management denotes attaining wide selection of advantages from diverse work force. The management of diversity concentrates on individuals rather than categories. This also includes opportunities for everyone individual and not simply for people owned by minority category.

Ellis et, (1994) identifies "A multicultural management point of view fosters more impressive and creative decision making, satisfying work environments, and better products because everyone who've a contribution to make or encourage to be engaged in a important way".

Diversity management denotes the initiatives considered by the company to take advantage on the diversity in their labor force including characteristics such as (origin, gender, get older, ethnicity and disability) as a tactical method of achieve the organisational goals.

The key dissimilarities between equal opportunities and controlling diversity is given in the below table


Equal Opportunities

Managing Diversity


Reduce discrimination

Utilise worker potential to maximum advantage

Case argued

Moral and ethical

Business case - improve profitability

Whose responsibility

HR/workers department

All managers

Focuses on




Dealing with different needs of different groups


Benefits for employees

Opportunities advanced for disadvantaged groupings, primarily through environment targets

Opportunities improved for everyone employees

Focus on management activity




Changing systems and practices

Changing the culture

Source : designed from Human Resource Management p -540) Derek Torrington, laura Hall, Stephen Taylor

Diversity Management is recognized as the core approach to implement equality. It really is believed that equal job opportunity is influenced by HR functions and variety management is motivated by the professionals. As grounds to run the business, it is argued that managing diversity should be made as the crucial part of any organizational coverage. This concept is named mainstreaming.

5. 1 Variety at Concentrate on India

Diversity became one of the key aspects and challenging area for the HRM area over the last few years. This is not only to take on high cost but also to acquire workforce variety to attract, maintain and motivate diverse inhabitants of team members to help and server diverse guests and areas. At Focus on, " diversity is much more than a goal or plan, it's a main value we integrate into all areas of our business - from our suppliers, to our teams, to the shopping experience inside our stores, we foster an inclusive culture that allows our high-performing and diverse team to drive innovation". Goal adopts a 'miltilocal' approach in putting into action the diversity, So Aim for India is in charge of designing and applying the diversity management program. Goal corporate headquarters can be an advisory, informing the organization wide diversity related information and providing assistance if required.

The definition of variety at Goal India is wide and centered on appreciating and realizing the personality of associates. Aim for India put this in simple conditions as "The Talents of Many. THE ABILITY of One. ". At Focus on India, diversity plays an integral part of the culture to communicate better with diverse team members and thereby portion the guests and areas in the simplest way possible. Target India creates the competitive benefit to operate a vehicle the success by appealing to the best talent and creating an atmosphere where diverse folks are respected.

5. 2 Obstacles in Maintaining Variety:

Over the past few years, many Organizations have the purpose of putting into action multicultural work culture. However, promoting variety across the Organizations has been challenging in functional way. You can find three significant reasons for failure of workforce variety across Organizations. 1) Misunderstanding the problem, 2) Wrong solution, 3) inability to obtain clear learning cure.

Major challenges faced by Target India through the initiatives of labor force variety are, 1) Issues related by marginalization and discrimination, 2) Because of time constraint, getting associates together to accumulate data and reviews regarding diversity is a hard task, 3) To make team members in charge of goals related to variety, 4) As variety is a new happening in HRM, training all the team members requires huge cost, time and effort, 5) Slow progress rate, 6) Complexity in handling different perspectives from various communities or individuals.

5. 3 Target India Vs Headquarters:

Target India team member culture differs to headquarters. The primary cultural differences come up as Goal India team members are younger when compared to the headquarters and much more specifically in Technology Services. Being young to job and also with a lot of job opportunities, Focus on India team members have a tendency to leave the job for salary or job growth. This is in great distinction with the onsite team member.

Team Users at Focus on India tend to just work at different time structure than their onshore counter parts. The normal work time is nine to five at headquarter. Associates reach on time, complete their work and leave promptly. Although time is 9:30 AM to 6:30 PM at Concentrate on India, team member work on flexible timings to overlap with the onsite timings for better co-ordination and save time and effort. Caffeine/Tea breaks are taken according to the convenient time whereas in head office normally they do not take much time. Also, Concentrate on India is providing free nutritious meals to all or any the team members which they would prefer to have along at cafeteria.

5. 4 Cultural Adjustments:

Most of the prospective team members have not worked in a international land. It really is with the establishment of Goal India, Target associates should travel to India for working. The juxtaposition of developed and underdeveloped and more importantly rich and poor, the essential compare of American culture that they need to cope up with. Indian people likewise have assist in cleaning, cooking, driving a car etc. Though it sense to be of much help but there have to be significant modification on two core values of American culture: Level of privacy and Self-reliance.

The authority style needed a great alteration moving to focus on India. Concentrate on India team members are used to work with instructions from clients and managers. They need more of interactive approach where the innovator can post their ideas, views and recommendations rather than providing standard instructions.

6. Target India HR Strategy:

The main property to IT industry is recruiting. The challenging task for Multi Country wide Companies (MNCs) in the IT sector is managing the recruiting, specifically for MNC subsidiary like Target India, where in fact the culture is very different from one another. Being very young to market, Target India faces the same challenge to sustain employees. Though country like India is abundant in low priced and highly skilled labourers, it is very hard to keep employees because of salary and profession growth. Goal India can cope with it better with its strong strategic HR policies and methods.

Target India HR guidelines work as per the below metrics,

HR Management

Organizational Effectiveness

Training and Development

The main target of HR management is to shape strong HR regulations and thereby handling and retaining the human resources. This consists of the best recruiting and selection methods, Pay and Benefits, Performance appraisals, Job development. Organizational Efficiency practically means integrity. Their main goal is to keep the secure work atmosphere with information security, zero tolerance and assault free place of work. Training and Development team deals with training programs such as technical trainings for budding technology professionals, authority training for those who admire to become leaders, personal development trainings, work focused trainings.

6. 1 HRM Practise:

The following are the team members experience and declaring about Target India.

"I used to be fascinated with the nice and cool shopping experience I needed at Target during one of my appointments to the U. S. and simply fell in love with Target. Then i wondered what it might be like working here and therefore began my voyage of checking out working at Target. Target is merely the perfect world for high-energy, fun-loving and make-things-happen people. The welcoming ambience, smiling teams and committed professionals are just the things I like here.

"I am going after the Experts program in Software Executive and am part of the global cohort. It's truly a global experience. I reach do capstone projects within Focus on as educational work and at exactly the same time it's a real life experience

-Praveen, Information Technology

"I've never seen any firm so far in my career where everyone's so approachable and friendly. Target's where I noticed my creative probable was explored. Supervisors and peers are available to ideas and change. This continues me going every day. "

- Dee, Brand Management, Buying + Planning

6. 1. 1 Recruitment and Selection:

Target India employs identical opportunity as an workplace. Career practises are implemented without respect to religion, coloring, race, creed, caste, making love, age, place of birth, impairment. This list also contains sexual orientation and also being pregnant.

Equal Occupation Opportunity policy plays an important role for Concentrate on India's commitment to hire and develop talented, strong and diverse labor force. With this coverage, Target India accommodates experienced and talented applicants, employees with disability and also people with strong spiritual values provided such team member doesn't create hardship to focus on India.

At Aim for India, recruitment and selection happens for both fresher and experience candidates. The highly talented fresh young graduates from the most notable universities are decided on after the written aptitude test, group talk and HR circular. Experience prospects are appointed after a series of process such as curriculum vitae selection, initial technological round, advanced technical round followed by managerial and HR round. Associates at Aim for India are able to get rewards through referral programs.

6. 1. 2 Training and Development:

The Training and Development team co-ordinates and arranges various training programs. Technical trainings, Personality Development trainings, Induction training, Integrity trainings, Work place trainings, Leadership trainings are the major trainings provided by working out department. Inner training programs will be the major trainings assemble where associates are encouraged to attend and learn new technologies and various leadership skills. Goal India also spouse with exterior training consultants for those trainings which are not available internally. Fresher recruited from universities are been trained in technical and development trainings originally. Experienced individuals are also given trainings in the latest version with their technology to perform the work according to the time schedule. Target India employs the mentoring system. With help of the mentoring system, mature leaders are helping various team members by motivating, providing organizational posts, helping in career planning.

Target India is convinced in job rotation for just about any interested team member. Any team member who's willing to transfer to another pyramid, department or technology is motivated with various basic specialized trainings and job controlling trainings.

Apart from class room trainings, Target India offers online trainings for associates. The online trainings include integrity trainings to keep up confidentiality of information and also have best ethics in work place.

6. 1. 3 Job Management:

Target India is committed for team member's personal and job development. That is completed with mentoring, Specific Development Plan (IDP) creation where team member and the supervisor analyze the team member's talents and development opportunities to develop the job map.

There can be an opportunity for team members in Aim for India to move vertically and horizontally across Target Technology Services (TTS), Focus on Financial Services (TFS), Strategy, Target. com, Stores, Marketing, Human Resources, Property Development, Legal and Quality. This is referred to as "talent pool scheme".

6. 1. 4 Flexible Work Timing:

This is one of the strong HR regulations which permit the associates to work on their convenient time shifts. This makes the prospective India team members to own better co-ordination using their onsite counter-top parts. This will save you lots of time and work which ultimately brings about better output.

6. 1. 5 Reimbursement and Benefits:

Based upon the employee's experience and technical/managerial skills, Goal India offers settlement package as per or more than the professional standards. Settlement revision normally modified double in a time. Target India supplies the following benefits to all its team members,

Health Benefits - Concentrate on India's health advantages supports wellbeing and healthy living because of its associates with schemes such as Group Mediclaim, Parental Insurance, Personal Automobile accident, Health and fitness Program, and MEDICAL CARE INSURANCE while Travelling.

Retirement - Focus on India associates are encouraged to save for pension by making contribution to their Provident Account (PF).

Paid Time Off - This includes Privilege Leave, Informal Leave, Maternity Leave, Paternity Leave, National Getaways, and Bereavement Leave. This helps the team members to recharge and renew themselves.

Additional Benefits - All eligible Target India associates are provided with additional benefits: Company Lending options, Conveyance Program, Gratuity, Free Meals, Tuition Scholarship, Team Member Recommendation Bonus offer, Concierge Service, Training and Development.

Other benefits such as professional counselling for associates and their members of the family, facility for new associates to settled down easily and quickly in new location and everything relevant assistance for associates and their family members travelling on an assignment are also provided.

6. 1. 6 Performance Management:

Performance Management is a crucial determinant of culture and what professionals consider in their thinking about their team members. Measurement of performance is an indicator of organizations' business success.

Target India identifies the appraisal as an activity which analysis a person's overall capabilities and potential. Among the important part of the process is examination where team member's history and current work behaviour and performance are gathered and reviewed. With the help of performance appraisal, Focus on India is able to improve morale, stimulate associates, reduce ambiguity about performance, clarify expectation, figuring out training and development opportunities, manage employment opportunities, improve communication, preparing goals and goals.

Target India practices transparent process for evaluating team participants' performance and providing settlement packages. Being translucent, it is very clear to the team members as of what is required to reach next level. Concentrate on India offers high performers with performance certificates by means of "Great Team Card (GTC)" and praise and vouchers. To stimulate the associates, high performers are honoured in the Total annual Leadership Conference.

6. 1. 7 Work-Life Balance:

Target India is conscious about "Work-Life Balance". This has been supported in the form of work from home where associates are allowed to work from home due to disaster and other personal commitment. More mature team members who want to stay in work are allowed to work fewer hours or different switch pattern. To keep up work-life balance various programs such as versatile work timings, Personal counselling for team members and their family members are initiated. This form of "work-life amounts" gives satisfaction to the associates in the form of managing work and also caring children and older parents.

6. 1. 8 Community Work by Employees:

Target India is convinced in serving the community. Target India and its own associates play a essential role in getting involved in community work to serve the culture. Many team members play control role in community work. Being a corporate citizen's responsibility, team members are allowed to plan various camps to rural areas to help in educating and having recognition about different sociable triggers to rural society. This brings do it yourself satisfaction to the team members and also makes work place more enjoyable.

6. 1. 9 Women Empowerment

To boost the women workforce, Target India conducts recruitment programs especially for women. Aim for India women all hands assembly is conducted frequently to help and discuss the hurdles encountered by the working women. These conferences not only give women soul but also help them to build up career growth and leadership characteristics.

6. 1. 10 Staff Retention:

Attrition rate is a significant concern for recently started out MNC subsidiaries in growing country like India. When other similar organizations possess the attrition rate in two times digit, Target India managed the employee retention rate in solitary digits with help of their sound career growth strategies, high rewards and appreciation apart from their fulfilling settlement and benefits. Concentrate on India supplies the following benefits to retain the team members,

Good work atmosphere

Meals and vehicles facilities

Giving more career plans

Employee focused policies

6. 1. 11 Start Door Policy:

No group can improve without constant feedbacks, ideas, suggestions in a diverse work place. Aim for India aligns with its headquarters belief of experiencing "Start Door Insurance plan". To improve workforce diversity, team users' recommendations, feedbacks and ideas become a critical factor. This eye-sight is gained through Start Door Insurance plan where team members can reach to any head regardless of their caste, faith, sex, culture, age at any time with their thoughts. Although this is the easiest way to reach to any innovator, for those who feel uncomfortable talking with the leaders immediately gleam separate HR team known as as Employee Relations team. Associates can post their issues, solutions and ideas to the Employee Relations team or call the Integrity Hotline statistics being anonymous. Every matter of the team participants' are examined by the Worker Relations team and sent to the appropriate head.

6. 1. 12 Great Team Popularity:

Target India follows a distinctive culture of appreciating great work. Although identification is done each year through performance appraisals, best performer awards and certificates, many great works go unnoticed in the gross annual meetings. To avoid that, Aim for India encourages sending Great Team Card to anybody contribution or to the team at at any time. This makes the associates feel that they are really seen in diverse work culture.

7. Bottom line:

Due to globalization, organizations are working in multicultural framework. A key argument is to what extent their diversity programs should be standardised across subsidiaries. As there is no best method of manage diversity labor force, since it differs from corporation to company, country to country.

From last many quarters, Target India is growing steadily because of its strong strategic HR procedures and in particular with workforce diversity. The procedure of acquiring, keeping and taking success with diverse human population in an evergrowing organization like Aim for India is not a fairly easy task. The determination from top management, HR and functions team across Concentrate on India and Goal Corporation, helped Concentrate on India to achieve the success of applying strategic HR policies in a multicultural and diverse workforce.

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