India

1
India

2
Indias Make-up

• India is the 2nd most populous country in 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 languages with Hindi as
  the official language.

3
Social Interaction

• Indians are very open and will ask personal
  questions
• The proper greeting is namaste or hello.
• 3 feet of personal space, and gestures have
  different meanings.
• Strong male hierarchy and common discrimination
  against women.

4
Entertainment Protocol

• Most meetings are between 11am and 4pm.
• 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.

5
Business Conduct

• Business cards are in English, and exchanged at
  the first meeting.
• Gifts are also a popular custom, but adhere to
  religious observance.
• The use of a respected 3rd person intermediary
  for introduction is recommended.
• Plan meetings in advance, and do not make a tight
  time schedule.

6
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 level of
  the Indian organization.

7
Dos

• Rely on written agreements, not YES.
• Modern India relies on contracts
• Consider other firms.
• Bring a group of negotiators.
• Save concessions for strategic implementation.

8
Don'ts

• Dont be swayed by kindness
• Dont bring up business on the first meeting.
• Dont trust every manager is equal.

9
Cultural DimensionsofIndia
10
Hofstedes Dimensions

• Power distance
• Uncertainty avoidance
• Collectivism
• Masculinity

11
Power Distance

• Definition The extent to which less powerful
  members of institutions and organizations accept
  that power is equally distributed.
• India ranks moderate-to-high.
• Many subordinates give deference to age and
  position within the hierarchal system.

12
Uncertainty Avoidance

• Definition The extent to which people feel
  threatened by ambiguous situations and have
  created beliefs and institutions that try to
  avoid these.
• India is very low.
• Strong belief in fatalism.

13
Collectivism

• Definition The tendency of people to belong to
  groups or collectives and to look after each
  other in exchange for loyalty.
• India is moderate-to-high.
• Caste system and Nepotism.

14
Masculinity

• Definition A culture in which the dominate
  values in society are success, money, and things
• India is moderate.

15
Trompenaars Dimensions

• Particularism
• Communitarism
• Neutral v. Emotional
• Diffuse
• Ascription

16
Particularism

• Definition The belief that circumstances
  dictate how ideas and practices should be
  applied.
• Indians believe that the environment controls
  them so they accept fate and conform to it.

17
Communitarism

• Definition People regarding themselves as a
  part of a group.
• Strong family values and caste system.

18
Neutral v Emotional

• Indians tend to be neutral in displaying
  affection but are allowed to show assertiveness.
• They are taught to be non-violent.

19
Diffuse

• Definition Both public and private space are
  similar in size and individuals guard their
  public space carefully because entry into public
  space affords entry into private space as well.
• Friendships and cordiality is expected.

20
Achievement v Ascription

• Most Indians value ascription because of their
  reliance on the caste system.
• Professional titles, age, degrees and caste level
  are indicators of status.
• Friendships and kinships are more important than
  expertise.

21
Other Cultural Dimensions

• Time
• Be prompt for meetings unless with government
  official.
• The immediate situation and people are of major
  concern.

• Environment
• Outer directed
• Fatalism

22
Regions of INDIA
23
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 normally mild,
  except in the North around the Himalayas where it
  snows.
• Monsoons- in the beginning of June thru
  September- it rains every day.
• Passport India p.27-28

24
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 with
  10.1 Million
• Maps of India homepage ltwww.mapsindia.com/overview
  gt

25
Business

• North- City of Punjab is renowned for
  agriculture, small scale industrial sector
• South- (heavy industry) City of Hyderabad
  produces electronics, machine tools and aerospace
  industries.
• Passport India. p.27-28

26
Business

• West- The western city of Gujarat focuses mainly
  on the production of major textile,cement,chemical
  , automotive and engineering industries.
• East- Calcutta is a heavy engineering and steel
  industry and is adding petrochemicals,
  electronics and software to its repertoire.
• Passport India p. 27-28

27
IndiasCommunicationStyle
28
Barriers of Communication

• Culture-
• With India having so many different languages
  communication can be difficult
• The national, political, and commercial language
  is English.
• Organization Studies 8(3) p246-247

29
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), p246-247

30
Strategic Planning

• Some companies in India use a polycentric
  strategy.
• Polycentric- Tailored to suit the cultures of the
  country where the MNC operates.
• International Management (Text) p.253

31
Polycentric Strategy

• Example Coca-Cola purchased a local 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 were forced to bring back
  Thums Up.
• The Wall Street Journal pg 1-4

32
Acquiring qualified workers

• For every 5 openings, only 1 qualified candidate
• Employees seen as internal customers
• HR managers judged as salespeople- rather than
  administrators
• HRMagazine 42(7), p. 104-110

33
Recruitment/Retention Strategies

• Differentiating company from competitors
• - compensation and benefits tailored
• to particular job
• Play on sense of togetherness
• - de-emphasize pay-for-performance
• More important whether person liked and respected
• - performance ability not valued as
• strongly
• HRMagazine 42(7), p. 104-110

34
Satyam Computer Svc.s Strategy

• Fund employee ideas takes share in start-up
• Weekend retreat center for families
• Far Eastern Economic Review 164(6), p. 70

35
Common Benefits

• Financial housing assistance in urban areas
• Funding for continuing education
• HRMagazine 42(7), p. 104-110

36
Labor Relations

• Legislation very protective of labor
• Factories Act of 1948
• -maternity leave, child care
• Industrial Labor Relations Review 49(4), p.
  635-657

37
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

38
Bargaining

• Done 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

39
Employers Reactions to Unions

• Lockouts increasing
• Promotions to administrative, supervisory
• ranks more common
• Declaring private businesses essentially
• public
• Industrial Labor Relations Review 49(4)
  635-657

40
Summary

• Just as in any country, doing business in India
  requires the American businessperson to keep an
  open mind to the cultural differences and
  business practices.