India’s Make Up

8/14/2019 Indias Make Up

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India
http://hulk.bu.edu/misc/india/places/indiamap.html


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Craigheads Intl. 9th Edition

Indias Make-up

India is the 2 nd most populous countryin the world.

They hold 3% of the land and 16% of the population.Major religions are Hindu, Muslim, and

some Christians.There are 15 recognized languageswith Hindi as the official language.


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Kiss, Bow, Shake Hands

Social Interaction

Indians are very open and will askpersonal questions

The proper greeting is namaste or hello .3 feet of personal space, and gestureshave different meanings.Strong male hierarchy and commondiscrimination against women.


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Kiss, Bow, Shake Hands

Entertainment Protocol

Most meetings are between 11am and4pm.

Women can entertain during the day.Always use the professional title.An invitation to an Indians home should

be taken seriously: Follow the proper rules.


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Craighead's Intl. 9th Edition

Business Conduct

Business cards are in English, andexchanged at the first meeting.

Gifts are also a popular custom, but adhereto religious observance.The use of a respected 3 rd personintermediary for introduction is

recommended.Plan meetings in advance, and do not makea tight time schedule.


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Passport to India: Your Pocket Guide to Indian Business

Negotiation

Preparation is a key to success in India. Present issues in a hierarchical order

There is low sensitivity to time.A relationship must be formed.Negotiations should be at the highest levelof the Indian organization.


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Passport to India: Your Pocket Guide to Indian Business

Dos

Rely on written agreements, not YES.Modern India relies on contracts

Consider other firms.Bring a group of negotiators.Save concessions for strategicimplementation.


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Passport to India:Your Pocket Guide to Indian Business

Don'ts

Dont be swayed by kindnessDont bring up business on the firstmeeting.Dont trust every manager is equal.


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CulturalDimensions

of

India


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International Management p.116-131

HofstedesDimensions

Power distanceUncertainty avoidanceCollectivismMasculinity


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Passport India: Your Pocket Guide to Indian Business

Power DistanceDefinition: The extent to which less powerfulmembers of institutions and organizations

accept that power is equally distributed.

India ranks moderate-to-high.

Many subordinates give deference to ageand position within the hierarchal system.


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How To Do Business in Sixty Countries p.166-173

UncertaintyAvoidance

Definition: The extent to which people feelthreatened by ambiguous situations and havecreated beliefs and institutions that try to avoidthese.

India is very low.

Strong belief in fatalism.


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How to Do Business in Sixty Countries p.166-173

CollectivismDefinition: The tendency of people tobelong to groups or collectives and to

look after each other in exchange for loyalty.

India is moderate-to-high.

Caste system and Nepotism.


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When Cultures Collide p.296-298

MasculinityDefinition: A culture in which thedominate values in society aresuccess, money, and things

India is moderate.


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International Management p.116-131

Trompenaar s

DimensionsParticularism

CommunitarismNeutral v. EmotionalDiffuseAscription


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Doing Business Around the World p.169-180

ParticularismDefinition: The belief thatcircumstances dictate how ideas andpractices should be applied.

Indians believe that the environmentcontrols them so they accept fate andconform to it.


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When Cultures Collide: Managing Across Culture p.296-298

ommun ar sm

Definition: People regardingthemselves as a part of a group.

Strong family values and castesystem.


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Doing Business Around the World p.169-180

Neutral v

EmotionalIndians tend to be neutral in displayingaffection but are allowed to showassertiveness.

They are taught to be non-violent.


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Doing Business Internationally p.230-235

DiffuseDefinition: Both public and privatespace are similar in size and

individuals guard their public spacecarefully because entry into publicspace affords entry into private spaceas well.

Friendships and cordiality is expected.


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How to Do Business in Sixty Countries p.166-173

Achievement v

AscriptionMost Indians value ascription becauseof their reliance on the caste system.

Professional titles, age, degrees andcaste level are indicators of status.

Friendships and kinships are moreimportant than expertise.


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Passport India

Other Cultural

DimensionsTime

Be prompt for meetings unless withgovernment official.The immediatesituation and peopleare of major concern.

EnvironmentOuter directed

Fatalism


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Regions of INDIA


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Climate

India has 3 different seasons Summer- April thru June- it gets extremly

hot in summer with temp. up to 43C. Winter- November thru March- is normallymild, except in the North around theHimalayas where it snows.

Monsoons- in the beginning of June thruSeptember- it rains every day.Passport India p.27-28


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Regional Population

Three Largest Cities- In the West is Mambai with 14.5 Million

In the East is Calcutta with 12.0 Million In the North is Delhi the capital of India with10.1 Million

Maps of India homepage


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Business

North- City of Punjab is renowned for agriculture, small scale industrial sector

South- (heavy industry) City of Hyderabadproduces electronics, machine tools andaerospace industries.

Passport India. p.27-28


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Business

West- The western city of Gujaratfocuses mainly on the production of

major textile,cement,chemical,automotive and engineering industries.East- Calcutta is a heavy engineeringand steel industry and is addingpetrochemicals, electronics andsoftware to its repertoire.

Passport India: p. 27-28


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IndiasCommunication

Style


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Barriers of

CommunicationCulture- With India having so many different

languages communication can be difficult The national, political, and commercial

language is English.

Organization Studies : 8(3) p:246-247


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Communication Style

Indians use a downward flow of communication

Indians are obedient to their seniors They do not disagree with people of power Accustomed to being commanded

Organization Studies : 8(3), p:246-247


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Strategic Planning

Some companies in India use apolycentric strategy.

Polycentric- Tailored to suit thecultures of the country where the MNCoperates.

International Management (Text) p.253


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Polycentric Strategy

Example: Coca-Cola purchased alocal bottling company that bottled the

drink Thums Up. Coca-Cola tried to discount Thums Up so

that Coke would be the top sell how ever the market did not accept it and they wereforced to bring back Thums Up.

The Wall Street Journal: pg 1-4


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Acquiring qualified

workersFor every 5 openings, only 1 qualifiedcandidate

Employees seen as internal customers

HR managers judged as salespeople- rather than administrators

HRMagazine : 42(7), p. 104-110


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Recruitment/RetentionStrategies

Differentiating company from competitors- compensation and benefits tailored

to particular job

Play on sense of togetherness- de-emphasize pay-for-performanceMore important whether person liked and respected

- performance ability not valued as

strongly

HRMagazine : 42(7), p. 104-110


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Satyam Computer

Svc.s StrategyFund employee ideas; takes share instart-up

Weekend retreat center for families

Far Eastern Economic Review : 164(6), p. 70


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Common Benefits

Financial housing assistance in urbanareas

Funding for continuing education

HRMagazine : 42(7), p. 104-110


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Labor Relations

Legislation very protective of labor

Factories Act of 1948-maternity leave, child care

Industrial & Labor Relations Review : 49(4), p.635-657


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Unionization

Sponsored by political parties

Only 7 employees needed to form union

External leaders- political party reps.instead of company employees

Industrial & Labor Relations Review : 49(4), p. 635- 657


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BargainingDone at company level

Industrial Disputes Act of 1947-restricts firing, lay-offs, closings- required to pay 50% of wages

for 90 days of lay-off

Dispute resolution system ineffective

Industrial & Labor Relations Review : 49(4), p. 635-657


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Employers Reactions

to UnionsLockouts increasing

Promotions to administrative, supervisoryranks more common

Declaring private businesses essentially

public

Industrial & Labor Relations Review : 49(4): 635-657


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SummaryJust as in any country, doingbusiness in India requires theAmerican businessperson to keepan open mind to the culturaldifferences and businesspractices.

Documents

India’s Make Up