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France vs. India: Encounters in the Realm of Restructuring

By Ashok Som

Abstract

Few empirical studies have been done to date regarding the role of human resource management during change process vis-a-vis an organizational restructuring process in general and specifically when it involves strategic initiatives across cultures. An extensive in-depth study of four large, complex companies and market leaders in France and India, in the same industry, supports our belief that the proactive role of HRM is one of the key success factors in cultural integration during an organizational restructuring process. This article presents a contingency framework, which offers guidelines as to how organizational restructuring can be achieved by implementation of suitable HRM practices. Key words: HR strategies, Organizational restructuring, Change Human Resource Strategy has become an important topic for discussion both in academic and business circles. The recent emphasis among practitioners and academics on "people " and "people management systems " as a source of competitive advantage has focused increasingly on the science and practice of Human Resource Management (HRM). HRM is considered to be one of the key ways of gaining competitive advantage, which is difficult to imitate (Grundy, 1997). Organizations today are paying increasing attention to see how their Human Resource (HR) strategies are organized. Meanwhile, HR is under pressure to reduce costs, to improve its services, to increase its impact and to provide more satisfaction to its employees (Ulrich, 1998). Most traditional organizational designs seek to balance several factors, such as functional expertise and customer alignment, which were prominent in the rationale for organizing. HR surveys (Kotter, 1995) have shown that several efforts of organizational restructuring due to changing strategic paradigms have been failures, and have been attributed to inappropriate human resource practices. No wonder, many surveys (Huselid, 1995; Yeung, Brockbank, and Ulrich, 1994) over the past decade have singled out HRM practices as the prime concern for HR executives. HRM practices need a critical review in the light of increasing competition. With changes in strategic initiatives there is a growing need for organizations to utilize their human resources more effectivel

Year: 2011
OAI identifier: oai:CiteSeerX.psu:10.1.1.197.6238
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