Importance of HR function in Indian subsidiaries of MNC organizations


    Most US companies underestimate the importance of a strong HR function in India when they set up their own centers. The people function in India has its unique needs due to the combination of the uniqueness of the culture, need for structured capability improvement programs and nascent stage of today’s industry.

    Often, the business line managers and country managers make the mistake of trying to play the HR role themselves and make critical mistakes in hiring and retention plans during the early stage of the setup. The initial mistakes they make often become costly and slow the evolution and maturity of their organizations in India.

    When we interviewed some of the country managers of the successful subsidiaries of MNCs in India, many of them felt that their HR directors and managers were an integral part of any India-related strategic decisions they make today and that it’s important for fill the HR leader position in India with a senior person with a strategic mindframe than a tactical HR manager.