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Workforce diversity in a foreign subsidiary A Case Study on Target India

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1. Abstraction:

In the today ‘s dynamic competitory concern environment, Diversity direction is one of the cardinal ambitious country in Human Resource Management ( HRM ) in peculiarly to the Multinational Corporations ( MNC ‘s ) those who have started their operations late in a state like India where the civilization is wholly different from western civilization. This paper chiefly focuses on to what extent Target India, the subordinate of retail giant Target Corporation, USA, has taken inaugural to keep the work force diverseness and analyse the major challenges and issues faced while implementing with their strategic HR policies.

It besides discusses the function of Human Resource Management ( HRM ) , International Human Resource Management ( IHRM ) and Strategic International Human Resource Management ( SIHRM ) in implementing and incorporating the diverseness initiatives. To analyze the effectivity of Target India HRM policies with regard to the diverseness and civilization, I used published beginnings like Target internal records, articles, books, cyberspace and online informations bases.

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2. Introduction:

Target Corporation is one of the United States biggest retail shop.

It was established in 1902 and known as Dayton Dry Goods Company before it was named as Target. The first Target shop was opened in Minnesota, in 1962.It is widely spread in United States with 1,613 shops in 47 provinces. This includes 240 Super Target shops which gives a incredible food market shopping experience. Target ranked 41 on their list of “ Americas Most Reputable Companies ” -2009

Target Corporation has its presence in India by set uping Target India Corporation in Bangalore in 2005. Target India has 2500 employees presently and it is expected to turn faster and hold 5000 employees by terminal of financial twelvemonth 2010. Target India is located in three different topographic points in Bangalore viz. Embassy Prime, RJU edifice which is named after Robert J. Ulrich, the former CEO of Target Corporation and GWS edifice which is named after Gregg W. Steinhafel. Another location is being established in Mysore in 2015.

Due to demographic differences, it is really obvious that Target India with regard to Target Corporation varies in work civilization, age, work-life balance and all societal and personal facets. Target India takes every attempt to construct Target civilization in the work topographic point which is really similar to Target caput quarters with aid of strong strategic HR policies.

Target is in peculiar about the company civilization which includes Collaboration, minimising hierarchy, Work/Life balance, Accountability. Target ‘s vision to go “ the best company of all time ” follows the three nucleus values: FFF ( Fast, Fun and Friendly ) , E ‘s of Excellence ( Energy, Enthusiasm and Execution ) and Speed is life.

3. Background:

Target Corporation has its offshore extension called Target India. The fast and continued growing of Target India reflects the committedness to develop a planetary work force. Target drives concern expeditiously by actuating squad members ( employees ) , crediting inventions and thereby giving the best invitee experience. Target India plays a cardinal function in supplying the trade name promise of Target “ Expect More. Pay Less. ” by implementing the engineering and concern solutions. Target India plants with 10 pyramids: Target India is a cardinal spouse to accomplish the vision of Target “ Best Company Ever ” and make the end of 100 billion in graduated table. The cardinal achievement of Target India is opening Target Sourcing Services ( TSS ) in Bangalore during the first day of remembrance and besides by opening the new installation which is now called Gregg W. Steinhafel ( GWS ) Centre.

4. Literature Reappraisal:

Over the old ages, it is really obvious that administrations are sing diverseness as an indispensable competitory advantage factor to prolong in the market topographic point where they can function assorted array of clients and their demands, to do the clients and interest holders happy and satisfy. Diversity significance is reached beyond the Equal Employment chance statute law and provides chance to the work force with regardless to gender, colorss, faiths, races.

One of the most of import tendencies in the recent old ages has been the turning involvement in the benefits to be achieved by be aftering for a diverse work force known as diverseness direction. This was based on position that “ people should be treated every bit irrespective of race, cultural orgin, gender and sexual orientation and other societal classification so that person are enabled freely and every bit to vie for societal wagess ( Jewson and Mason,1986 P.307 ) ” .Jewson and Mason set equal chances within a free market tradition, and the intent of the statute law and constabularies was seen as taking obstructions and deformations to the working markets. Harmonizing to liff ( 1997b ) , there are four attacks to pull offing diverseness based on the grade of the committedness to societal group equality as an organisational aim and on the sensed relevancy of societal group distinction for policy doing.Four diverseness direction attacks are:1 ) fade outing the differences2 ) valuing the differences3 ) suiting differences4 ) utilizing differences

Diverseness, harmonizing to Schneider ( 2001, P.27 ) is “ about making a on the job civilization that seeks, respects, values, and harnesses difference ‘ . The basic contrast with the equal chances is an credence that there is difference between people, that such difference can be valued and that they are the beginning of productive potency within the administration ” .

Thomas ( 1995 ) argues that “ diverseness does non automatically intend with regard to race and gender and describe diverseness as non synonyms with difference but encompasses difference and similarities ” . ( Cassel 2001 ) define ” diverseness is a complex, multidimensional construct as a whole. It is a plural term with different perceptual experience in different administrations, societies and natural civilizations without any unitary significance ” .

Hofstedede ‘s ( 1980 ) research suggest demonstrate that even within a big transnational, celebrated for its strong civilization and socialisation attempts, national civilization continues to play major function in distinguishing work values. The convergence /divergence statement ( Webber 1969 ) states that economic development, engineering, and instruction would do possible globalisation whereas differential degrees of available resources and national civilizations would work against this.

The demand for human resource advisers, directors and specializer to follow international orientation in their functional activities for those who are working in Multinational Enterprises ( MNEs ) are playing cardinal function in implementing the cross cultural and comparative human resource direction to do their administration success. Boxall ( 1995 ) specify the differentiation between comparative HRM and International HRM.

5. Diversity Management

Diversity Management denotes accomplishing broad scope of benefits from diverse work force. The direction of diverseness dressed ores on persons instead than groups. This besides includes chances for all person and non merely for people belonging to minority class.

Ellis et, ( 1994 ) defines “ A multicultural direction position Fosters more advanced and originative determination devising, fulfilling work environments, and better merchandises because all people who have a part to do or promote to be involved in a meaningful manner ” .

Diversity direction denotes the enterprises taken by the administration to take advantage on the diverseness in their work force including features such as ( origin, gender, age, ethnicity and disablement ) as a strategic attack to accomplish the organizational ends.

The cardinal differences between equal chances and pull offing diverseness is given in the below tabular array


Equal Opportunities

Pull offing Diverseness


Reduce favoritism

Utilise employee potency to maximal advantage

Case argued

Moral and ethical

Business instance – better profitableness

Whose duty

HR/personnel section

All directors

Focuss on




Covering with different demands of different groups


Benefits for employees

Opportunities improved for deprived groups, chiefly through puting marks

Opportunities improved for all employees

Focus on direction activity


Pull offing


Changing systems and patterns

Changing the civilization

Beginning: adapted from Human Resource Management P -540 ) Derek Torrington, laura Hall, Stephen Taylor

Diversity Management is considered as the nucleus attack to implement equality. It is believed that equal employment chance is driven by HR maps and diverseness direction is driven by the directors. As a ground to run the concern, it is argued that pull offing diverseness should be made as the built-in portion of any organisational policy. This construct is called mainstreaming.

5.1 Diversity at Target India

Diverseness became one of the cardinal facets and disputing country for the HRM country over the last few old ages. This is non merely to undertake high cost but besides to hold work force diverseness to pull, retain and actuate diverse population of squad members to assist and server diverse invitees and communities. At Target, ” diverseness is much more than a end or run, it ‘s a nucleus value we integrate into every country of our concern – from our providers, to our squads, to the shopping experience in our shops, we foster an inclusive civilization that allows our high-performing and diverse squad to drive invention ” . Target adopts a ‘miltilocal ‘ attack in implementing the diverseness, So Target India is responsible for planing and implementing the diverseness direction plan. Target corporate central office is an consultative, informing the corporate broad diverseness related messages and supplying aid if required.

The definition of diverseness at Target India is wide and focused on appreciating and acknowledging the individualism of squad members. Target India set this in simple footings as “ The Strengths of Many. The Power of One. ” . At Target India, diverseness plays an built-in portion of the civilization to pass on better with diverse squad members and thereby functioning the invitees and communities in the best manner possible. Target India builds the competitory advantage to drive the success by pulling the best endowment and making an ambiance where diverse persons are respected.

5.2 Challenges in Keeping Diverseness:

Over the past few old ages, many Organizations have the end of implementing multicultural work civilization. However, advancing diverseness across the Organizations has been disputing in practical manner. There are three chief grounds for failure of work force diverseness across Organizations. 1 ) Misconstruing the job, 2 ) Incorrect solution, 3 ) failure to hold clear learning remedy.

Major challenges faced by Target India during the enterprises of work force diverseness are, 1 ) Issues related by marginalisation and favoritism, 2 ) Due to clip restraint, acquiring squad members together to roll up informations and feedback sing diverseness is a hard undertaking, 3 ) To do squad members accountable for ends related to diverseness, 4 ) As diverseness is a new phenomenon in HRM, developing all the squad members requires immense cost, clip and attempt, 5 ) Slow advancement rate, 6 ) Complexity in managing different positions from assorted groups or persons.

5.3 Target India Vs Headquarters:

Target India squad member civilization is different to central offices. The chief cultural differences arise as Target India squad members are younger when compared to the central offices and more specifically in Technology Services. Bing immature to occupation and besides with a batch of occupation chances, Target India squad members tend to go forth the occupation for salary or calling growing. This is in great contrast with the onsite squad member.

Team Members at Target India tend to work at different clip construction than their onshore counter parts. The typical work clip is nine to five at headquarter. Team members reach on clip, finish their work and go forth on clip. Though the clip is 9:30 AM to 6:30 PM at Target India, squad member work on flexible timings to overlap with the onsite timings for better co-ordination and salvage clip and attempt. Coffee/Tea interruptions are taken as per the convenient clip whereas in central offices usually they do non take much clip. Besides, Target India is supplying free alimentary repast to all the squad members which they prefer to hold together at cafeteria.

5.4 Cultural Adjustments:

Most of the Target squad members have non worked in a foreign land. It is with the constitution of Target India, Target squad members are encouraged to go to India for working. The apposition of developed and developing and more significantly rich and hapless, the basic contrast of American civilization which they need to get by up with. Indian people besides have aid in cleansing, cookery, driving etc. Though it sense to be of much aid but at that place necessitate to be important accommodation on two nucleus values of American civilization: Privacy and Independence.

The leading manner needed a great change traveling to Target India. Target India squad members are used to work with instructions from clients and directors. They need more of synergistic attack where the leader can post their thoughts, positions and suggestions instead than giving general instructions.

6. Target India HR Approach:

The chief plus to IT industry is human resources. The disputing undertaking for Multi National Companies ( MNCs ) in the IT sector is pull offing the human resources, particularly for MNC subordinate like Target India, where the civilization is wholly different from each other. Bing really immature to market, Target India faces the same challenge to retain employees. Though state like India is abundant in low cost and extremely skilled laborers, it is really difficult to retain employees because of salary and calling growing. Target India is able to manage it better with its strong strategic HR policies and methods.

Target India HR policies work as per the below prosodies,

HR Management

Organizational Effectiveness

Training and Development

The chief aim of HR direction is to border strong HR policies and thereby pull offing and retaining the human resources. This includes the best recruiting and choice methods, Pay and Benefits, Performance assessments, Career development. Organizational Effectiveness literally means unity. Their chief intent is to keep the secure work atmosphere with information security, zero tolerance and force free workplace. Training and Development squad trades with developing plans such as proficient preparations for budding tech professionals, leading preparation for those who admire to go leaders, personal development preparations, work oriented preparations.

6.1 HRM Practise:

The followers are the squad members experience and stating about Target India.

“ I was fascinated by the neat and cool shopping experience I had at Target during one of my visits to the U.S. and merely fell in love with Target. I so wondered what it would be like working here and therefore began my journey of researching working at Target. Target is merely the perfect universe for high-energy, fun-loving and make-things-happen people. The welcoming atmosphere, smiling squads and committed directors are merely the things I like here.

“ I am prosecuting the Masters plan in Software Engineering and am portion of the planetary cohort. It ‘s genuinely an international experience. I get to make finishing touch undertakings within Target as academic work and at the same clip it ‘s a existent life experience

-Praveen, Information Technology

“ I have ne’er seen any organisation so far in my calling where everyone ‘s so accessible and friendly. Target ‘s the topographic point where I felt my originative potency was explored. Supervisors and equals are unfastened to thoughts and alteration. This keeps me traveling every twenty-four hours. ”

– Dee, Brand Management, Buying + Planning

6.1.1 Recruitment and Selection:

Target India follows equal chance as an employer. Employment practises are implemented without respect to faith, coloring material, race, credo, caste, sex, age, topographic point of birth, disablement. This list besides includes sexual orientation and besides gestation.

Equal Employment Opportunity policy plays an of import function for Target India ‘s committedness to engage and develop talented, strong and diverse work force. With this policy, Target India accommodates qualified and gifted appliers, employees with disablement and besides appliers with strong spiritual beliefs provided such team member does n’t make adversity to Target India.

At Target India, enlisting and choice happens for both fresher and see campaigners. The extremely talented fresh immature alumnuss from the top universities are selected after the written aptitude trial, group treatment and HR unit of ammunition. Experience campaigners are hired after a series of procedure such as resume choice, initial proficient unit of ammunition, high degree proficient unit of ammunition followed by managerial and HR unit of ammunition. Team members at Target India are able to acquire wagess through referral plans.

6.1.2 Training and Development:

The Training and Development squad coordinates and arranges assorted developing plans. Technical preparations, Personality Development preparations, Induction preparation, Integrity preparations, Work topographic point preparations, Leadership preparations are the major preparations provided by the preparation section. Internal preparation plans are the major preparations arranged where squad members are encouraged to go to and larn new engineerings and assorted leading accomplishments. Target India besides spouse with external preparation advisers for those preparations which are non available internally. Fresher recruited from universities are trained in proficient and development preparations ab initio. Experienced campaigners are besides provided with preparations in the latest version of their engineering to carry through the work as per the clip agenda. Target India follows the mentoring system. With aid of the mentoring system, senior leaders are assisting assorted squad members by actuating, supplying organisational updates, assisting in calling planning.

Target India believes in occupation rotary motion for any interested squad member. Any team member who is willing to reassign to a different pyramid, section or engineering is motivated with assorted basic proficient preparations and occupation handling preparations.

Apart from category room preparations, Target India besides offers on-line preparations for squad members. The on-line preparations include integrity preparations to keep confidentiality of information and have best moralss in work topographic point.

6.1.3 Career Management:

Target India is committed for squad member ‘s personal and calling development. This is carried out with mentoring, Individual Development Plan ( IDP ) creative activity where squad member and the supervisor analyze the squad member ‘s strengths and development chances to develop the calling map.

There is an chance for squad members in Target India to travel vertically and horizontally across Target Technology Services ( TTS ) , Target Financial Services ( TFS ) , Strategy, Target.com, Stores, Marketing, Human Resources, Property Development, Legal and Quality. This is by and large known as “ talent pool strategy ” .

6.1.4 Flexible Work Timing:

This is one of the strong HR policies which enable the squad members to work on their convenient clip displacements. This makes the Target India squad members to hold better co-ordination with their onsite counter parts. This saves a batch of clip and attempt which finally leads to better productiveness.

6.1.5 Compensation and Benefits:

Based upon the employee ‘s experience and technical/managerial accomplishments, Target India offers compensation bundle as per or higher than the industrial criterions. Compensation alteration usually revised twice in a twelvemonth. Target India provides the following benefits to all its squad members,

Health Benefits – Target India ‘s wellness benefits supports health and healthy life for its squad members with strategies such as Group Mediclaim, Parental Insurance, Personal Accident, Wellness Program, and Medical Insurance while Travelling.

Retirement – Target India squad members are encouraged to salvage for retirement by doing part to their Provident Fund ( PF ) .

Paid Time Off – This consists of Privilege Leave, Casual Leave, Maternity Leave, Paternity Leave, National Holidays, and Bereavement Leave. This helps the squad members to reload and review themselves.

Extra Benefits – All eligible Target India squad members are provided with extra benefits: Company Loans, Conveyance Program, Gratuity, Free Meals, Tuition Scholarship, Team Member Referral Bonus, Concierge Service, Training and Development.

Other benefits such as professional guidance for squad members and their household members, installation for new squad members to settled down easy and rapidly in new location and all relevant aid for squad members and their household members going on an assignment are besides provided.

6.1.6 Performance Management:

Performance Management is a important determiner of civilization and what directors consider in their thought about their squad members. Measurement of public presentation is an indicant of organisations ‘ concern success.

Target India defines the assessment as a procedure which analysis a individual ‘s overall capablenesss and potency. One of the of import portion of this procedure is assessment where squad member ‘s yesteryear and current work behavior and public presentation are collected and reviewed. With the aid of public presentation assessment, Target India is able to better morale, motivate squad members, cut down ambiguity about public presentation, clear up outlook, placing preparation and development chances, manage callings, better communicating, puting ends and marks.

Target India follows crystalline procedure for measuring squad members ‘ public presentation and supplying compensation bundles. Being crystalline, it is really clear to the squad members as of what is required to make following degree. Target India offers high performing artists with public presentation certifications in the signifier of “ Great Team Card ( GTC ) ” and honor and verifiers. To actuate the squad members, high performing artists are honoured in the Annual Leadership Meeting.

6.1.7 Work-Life Balance:

Target India is witting about “ Work-Life Balance ” . This has been supported in the signifier of work from place where squad members are allowed to work from place due to exigency and any other personal committedness. Older squad members who wish to stay in work are allowed to work fewer hours or different displacement form. To keep work-life balance assorted plans such as flexible work timings, Personal guidance for squad members and their household members are initiated. This signifier of “ work-life balances ” gives satisfaction to the squad members in the signifier of managing work and besides caring kids and aged parents.

6.1.8 Community Work by Employees:

Target India believes in functioning the community. Target India and its squad members play a critical function in taking portion in community work to function the society. Many squad members play leading function in community work. As a corporate citizen ‘s duty, squad members are allowed to form assorted cantonments to rural countries to assist in educating and conveying consciousness about different societal causes to rural population. This brings self satisfaction to the squad members and besides makes work topographic point more gratifying.

6.1.9 Women Empowerment

To increase the adult females work force, Target India conducts recruitment plans particularly for adult females. Target India adult females all custodies meeting is conducted often to assist and discourse the hurdlings faced by the on the job adult females. These meetings non merely give adult females spirit but besides assist them to develop calling growing and leading qualities.

6.1.10 Employee Retention:

Abrasion rate is a major concern for freshly started MNC subordinates in developing state like India. When other similar organisations have the abrasion rate in dual figure, Target India managed the employee keeping rate in individual figures with aid of their sound calling growing programs, high wagess and grasp apart from their fulfilling compensation and benefits. Target India provides the following benefits to retain the squad members,

Good work atmosphere

Meals and transit installations

Giving more calling programs

Employee oriented policies

6.1.11 Open Door Policy:

No organisation can better without changeless feedbacks, thoughts, suggestions in a diverse work environment. Target India aligns with its central offices belief of holding “ Open Door Policy ” . To better work force diverseness, squad members ‘ suggestions, feedbacks and thoughts become a important factor. This vision is attained through Open Door Policy where squad members can make to any leader irrespective of their caste, faith, sex, civilization, age at any clip with their ideas. Although this is the easiest manner to make to any leader, for those who feel uncomfortable speech production to the leaders straight there is besides a separate HR squad named as Employee Relations squad. Team members can post their issues, solutions and thoughts to the Employee Relations squad or name the Integrity Hotline Numberss being anon. . Every concern of the squad members ‘ are reviewed by the Employee Relations squad and sent to the appropriate leader.

6.1.12 Great Team Recognition:

Target India follows a alone civilization of appreciating great work. Although acknowledgment is done yearly through public presentation assessments, best performing artist awards and certifications, many great plants go unnoticed in the one-year meetings. To avoid that, Target India encourages directing Great Team Card to any single part or to the squad at any minute. This makes the squad members feel that they are noticed in diverse work civilization.

7. Decision:

Due to globalisation, organisations are runing in multicultural context. A cardinal argument is to what extent their diverseness programmes should be standardised across subordinates. As there is no best attack to pull off diverseness work force, since it varies from organisation to organisation, state to state.

From last many quarters, Target India is turning steadily because of its strong strategic HR policies and in peculiar with workforce diverseness. The procedure of geting, retaining and conveying success with diverse population in a turning organisation like Target India is non an easy undertaking. The finding from top direction, HR and operations team across Target India and Target Corporation, helped Target India to accomplish the success of implementing strategic HR policies in a multicultural and diverse work force.

Cite this Workforce diversity in a foreign subsidiary A Case Study on Target India

Workforce diversity in a foreign subsidiary A Case Study on Target India. (2017, Jul 23). Retrieved from https://graduateway.com/workforce-diversity-in-a-foreign-subsidiary-a-case-study-on-target-india/

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