Ericsson IHRM practices
- 1. Submitted by: Group 6 IMG 10 E Ankit Aggarwal (10346) Ashish Verma (10350) Diksha Jaiswal (10355) Shrutkirti Sood (10380) Ushma Khattar (10383)
- 2. Ericsson Ericsson was founded by Lars Magnus Ericsson in 1876 (Ericsson, 2009a) and has today grown to having 78,000 employees and customers in over 175 countries. The company’s main business is telecom network equipment and related services, where it is the world’s largest provider. The company has a longstanding tradition of sending employees abroad, Its international presence has also led an extensive movement of human capital within the organization. The company’s training program for preparing future expatriates started in 1978. Today the company has expatriates from 71 nationalities working in 110 different countries A total number of 1,615 expatriates (or Long Terms Assignees -LTAs, as they are referred to within Ericsson) are currently working at Ericsson, out of which 1492 (92%) are men. Sweden is the predominant host country, hosting 152 expatriates (9%) as for the first quarter of 2009
- 3. Expat- Employment Contracts and Ericsson Short Term Assignments Long Term Assignment s Regular Special Assignment
- 5. Motivation to work at Ericsson India and Sweden Sweden: Career development and personal growth Compulsory requirement by Ericsson to work at Sweden headquarters Understanding how new technology develops and works and it’s implementation India Understand and implement Ericsson’s global strategy in emerging markets Understand new business lines- higher risks Undertaking a challenging role for personal and career growth- holistic adaptation of Ericsson’s various verticals Global exposure- selling practices in India Past experience of her mentor in India- acted as a “guiding tool”
- 6. US • Action oriented working environment • Act First Attitude • Focus on taking higher risks and achieving higher rewards • Mature developed market, resulting in high growth and career advancement potential • Higher expectations from high salaried employees Sweden • Exact opposite culture from that of the US • Slow alignment towards newer and faster technology • Agile ways of working • Difference in mentality - focus on quality of life • No clear cut roles- highly feministic • More focus on soft skills than technical skills India • High potential and growth • Complete amalgamation between work and personal environment- personal issues discussed during coffee breaks, etc • Emerging market- different ways of thinking and acting in tricky work situations • Not time bound Experience at Ericsson India, US and Sweden:
- 7. Difference in Soft Skills US Direct Communication- to the point and brief “Time is Money”- attitude; getting things done Forthcoming and open attitude between seniors and juniors- low Power Distance “Cold”- minding one’s own business; lack of sympathy and empathy High level of accountability Sweden • Consideration towards other co- workers’ feelings • Passive and soft- warm attitude • More family-like working atmosphere India Communication is a challenge Indirect and subtle communication- “read in between the lines” Lack of clear accountability Delayed response to emails- relative time Delays in delivery
- 8. Training and Development Programmes for Expats at Ericsson Pre-Departure Training Swedish employees are offered to attend a one day briefing session before departure. Expatriates from other countries than Sweden receive a DVD with information as a substitute for the briefing session. Before the expatriate attends the pre-departure course they receive information, mainly via email and Internet. This information serves the purpose of inspiring and motivating participants to start investigate and read more on their own, but a booklet containing checklists with important things to do before departure is also received Post-Arrival Training Culture specific training, as well as other general information, is received in a post arrival Induction Program, organized by the host organization. Contacts with current expatriates, who are already familiar with the country, also occur here. The coordinator for the Induction Program is a local Ericsson HR officer, but external service providers are used when needed
- 9. Post Arrival Training for Expats in Ericsson India Post arrival expat training at Ericsson India consists of a very formal and organized activities during one day where a specialist on cultural issues gives speech about cultural differences and representatives from Ericsson speak about security and the work itself. Accompanying family members are welcome to participate in these activities and evening activities are arranged. Training is also location specific-local regulations and tax policies Economic Scenario and current political climate “Training provided at Ericsson India was not enough. The content was sufficient but there was a lack of practical training provided, especially cross cultural and communication training.”
- 10. Expat Compensation at Ericsson India A special case is made for Third Country Nationals for sending their talents to other countries- make a thorough justification for choosing expats over HCNs Motivated employees who are ready to work with a collaborative environment in place. Compensation Uniform criterion for evaluation-equal opportunities Compensation relative to markets- Going Rate Expat packages- series of meetings and negotiations with the HR heads Special care is made to maintain the expat’s standard of living, ensure safety and personal and family needs Special extra benefits given to expats transferred to unsafe locations, eg African subcontinent
- 11. Expat-specific issues faced in India Personal issues Bad traffic an network of public transport- difficulty in getting around having chauffer driven car- restrictive and curtails independence Difficulty in understanding the communication styles- mixture of casual and formal communication Social economic classes-very visible income inequality; “There are malls in Gurgaon on one side of the road and slums on the other”