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Chapter Summary

HRM is a strategic function concerned with recruitment, training and


development, performance appraisal, communication and labor relations. HR
policies guide the various functions of HRM. The need for a particular type
of HRM is determined by the need for standardization or adaptation.

Managing human resources in an international context is more complex than


in a domestic set up because of the many differences between headquarters
and the subsidiaries. The HR policies of certain companies seem to
discriminate on the basis of religion, race, caste, sex or nationality.
Companies like Ford and Volvo, however, strive to maintain equality in work
and pay.

Staffing is an important aspect of HRM. The staffing policies of MNCs are


determined by their approach to globalization. MNCs with an ethnocentric
approach fill all top management positions with home country nationals to
ensure that home country practices are replicated in subsidiaries. Companies
that adopt a polycentric approach to globalization, fill all senior management
positions with local nationals to ensure maximum adaptation to local
conditions.

Companies that adopt a geocentric approach to globalization, identify


managers irrespective of their nationality for various international
assignments to ensure that best practices are identified and replicated in all
the units of the organization. Managers belonging to a particular country and
working in another country are called expatriates.

The selection, training, period of stay abroad, compensation and repatriation


of expatriates are delicate issues that have to be managed by the HR
department. On their repatriation, they must be provided suitable challenging
assignments that give them the autonomy they have become accustomed to.
Since maintaining expatriate managers is expensive, a company must
develop local talent.

Companies can identify and develop local talent through in-house


Management Development Programs (MDP). These programs will help
improve the coordination between employees with diverse cultural, religious
and educational backgrounds. Performance appraisal is another activity
where there can be differences of opinion between headquarters and
subsidiaries.
Subsidiary managers must be involved in setting of unambiguous targets and
the establishment of criteria for measuring performance. Performance
Management attempts to link performance appraisal to employee training and
development, and possibly to compensation. There are three theories
concerning the autonomy of subsidiaries in decision-making.

They are: limited autonomy, variable autonomy and negotiated autonomy.


According to the theory of limited autonomy, the degree of autonomy will
depend on the MNC's approach to globalization. The theory of variable
autonomy states that the degree of autonomy varies with the degree of
internationalization of the company.

Companies that adopt an export strategy can afford to have centralized


decision-making, whereas strategic business units (SBUs) will require
decentralized decision-making. According to the theory of negotiated
autonomy, the degree of autonomy of a subsidiary will depend on its ability
to negotiate with headquarters.

HRM plays an important role in maintaining harmonious industrial relations.


Companies are often intimidated by the strength of the union and the political
support it enjoys. Certain companies like Volvo ensure cordial relations with
the labor union by actively participating in their development. But certain
other companies, like Bata have had frequent labor relations problems in
India.

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Consumer Behavior

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Consumer Behavior : Overview
In this era of competition, understanding the
consumer is a necessity for marketers. Consumer
needs and preferences are continuously changing,
given the changes in factors like demographics and
lifestyles. These changes can become great business
opportunities for alert marketers and threats for
marketers who fail to adapt.

Consumers acquire, consume, and dispose off the


products and services created by organizations. They
go through several cognitive and behavioral
processes while making their purchase and
consumption decisions. The knowledge of how they
decide on one brand instead of another and what
factors influence their decision-making is crucial for
marketers, not only to cater to the existing needs of
their consumers but also to prepare for their future
needs. This knowledge is also essential to make
various business decisions related to product
development, packaging, pricing, distribution,
promotions, communication, etc.

Consumer Behavior helps students understand the internal variables like motivation,
personality, perception, learning, and attitude, and external variables like reference
groups, family, social class, and, culture, and their influence on consumer decision-
making process. It also discusses the consumers' acceptance of innovation, and their
purchase and post-purchase behavior. The impact of marketing communication on
consumers, and the need for its regulation have also been discussed in the book.

"We can believe that we know where the world should go. But unless we're in touch with our
customers, our model of the world can diverge from reality. There's no substitute for
innovation, of course, but innovation is no substitute for being in touch, either"
Marketing strategy of MNCs:
Marketing research various products, prices, distribution,
and promotion strategies. Marketers who collect accurate
and relevant information quickly and design their
strategies quicker than their competitors are more likely
to be successful.

Marketing research helps in effective planning and


implementation of business decisions by providing
accurate, relevant, and timely information. The process
of marketing research involves a series of steps that
systematically investigate a problem or an opportunity
facing the organization.

This investigation starts with problem or opportunity recognition and definition,


development of objectives for the research, development of hypothesis, planning the
research design, selecting a research method, analyzing the research designs, selecting a
sampling procedure, data collection, evaluating and analyzing the data and finally
preparing and presenting the research report.

The research process provides a scientific platform, contrary to the traditional intuitive
approach of decision making by managers which used to put large amounts of resources
of the organization at risk. Organizations in areas such as IT, pharmaceuticals, telecom,
manufacturing, transportation, advertising, banking, law, education and even
governments utilize marketing research to find solutions to different kinds of decision-
making problems.

Marketing research is used in new product development, in segmenting markets, in


identifying the needs of the customers, in sales forecasting and estimating the market
potential of products and services, in analyzing the satisfaction levels of customers, and
so on.

Introduction to Marketing Research provides an overview of various marketing research tools and
techniques, and their application to different marketing problems.
1. Introduction to Marketing Research
2. Scientific Method
3. Research Proposal and Design 15. Sampling
4. The Research Process 16. Preparation and
5. Types of Research Tabulation of Data
6. Secondary Data 17. Tests of Significance
7. Commercial Surveys, Audits and Panels 18. Bivariate Measures of
8. Survey Research Association
9. Instruments for Respondent Communication 19. Multivariate Measures of
10. Experimentation Association
11. Data Collection and Errors 20. Analysis of Variance
12. Measurement in Marketing Research (ANOVA)
21. Marketing Research
Reports
22. Market Segmentation
23. New Product
Development
24. Advertising Research
25. Market and Sales
13. Attitude Measurement Analysis Research
14. Observation and Physiological Measures 26. Managing Marketing
Research
27. Ethics in Marketing
Research
Glossary

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Table of Contents
Introduction

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