Special Projects Team:Jiong ZhangMikael Thakur

SCHULICH SCHOOL OF BUSINESS -YORK UNIVERSITY4700 Keele Street, Toronto, Ontario, M3J 1P3Masters of Business Program

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TABLE OF CONTENTS

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1.0 INTRODUCTION

Due to rapid technology advancement, we now live in a small world with a global marketplace. Foreign

ideals and culture are easily spread and adapted by indigenous people in all corners of the globe via

radio, television and now especially, computers software and the Internet. This whole dilemma has been

termed as Globalization. The concept of globalization refers to increasing global connectivity, integration

and interdependence in the economic, social, technological, cultural, political and ecological spheres.

Industrial globalization has taken its grip and businesses are going across the cultural boundaries.

Worldwide production markets and broader access to a range of goods for consumers and companies is

available. Globalization has some pros and cons. The convergence enhances the communication level

between cultures. On the other hand, with globalization cultural differences are also highlighted.

India is a country of both diversity and continuity. It is a creative blend of cultures, religions, races and

languages. The nation’s identity and social structure remain protected by a rich cultural history that

dates back at least 5,000 years, making India one of the oldest civilizations in the world. The country is

the largest democracy country in the world with political consensus on reforms and stable democratic

environment in over 50 years of independence. With its consistent growth performance and abundant

highly skilled manpower provides enormous opportunities for investments.

One of the fundamental components of Indian culture is an understanding of the traditions and ways of

communicating with others that form the basis of India’s society. Understanding the comparative

strengths and the internal dynamics of the India is essential for conducting business in the country and

for policymakers.

The purpose of this report is to document our succinct cultural analysis and provide recommendations

that will improve cross cultural management issues between Amalgamated Conglomerated Industries

and businessmen in Mumbai India. The paper illustrates how business practices and managerial values

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are functional to cultural synergy. Research for this document was obtained through primary and

secondary research.

2.0 CULTURE

“I do not want my house to be walled in on all sides and my windows to be stuffed. I want the cultures of all the lands to be blown about my house as freely as possible. But I refuse to be blown off my feet by any.” - (Mahatma Gandhi )

India, home of the sacred River Ganges and the Himalayan Mountains, has a history of invasion and

migration that has influenced both its culture and its economy. Following the economic reform process

of 1999, India’s market has continued to strengthen and expand. Geographically, India benefits from its

close proximity to the major Indian Ocean trade routes and together with the country’s rich centre of

mineral and agricultural resources, India’s economy is witnessing significant inflows of foreign direct

investment (FDI). India is also recognized for its fiercely competitive education system and is one of the

largest providers of experienced scientists, engineers and technicians, making it an attractive market for

foreign business.

India is a complex country, and those arriving here to do business will discover that the path to success

is often, not very smooth. The culture of India has been shaped by the long history of India, its unique

geography and the absorption of customs, traditions and ideas from some of its neighbors as well as by

preserving its ancient heritages, from the Indus Valley Civilization onward. India's great diversity of

cultural practices, languages, customs, and traditions are examples of this unique co-mingling over the

past five millennia. India is also the birth place of several religious systems such as Hinduism, Jainism,

Buddhism, and Sikhism(See Appendix 3), some of which have had a great influence also in other parts of

the world. From the thirteenth century onwards, following the Islamic conquests and the subsequent

European colonialization, the culture of India was influenced by Turkish, Persian, Arabic and English

cultures. The various religions and traditions of India that were created by these amalgamations have

influenced South East Asia and some other parts of the world.

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2.2 MUMBAI

The culture and population of Mumbai is extremely diverse and throughout India nowhere one can see

such varied and diverse blend of people. At present the population of Mumbai is around 18 million1

and the density of population in the city is around 45, 662 persons per square kilometers 1. A survey

conducted on the population of Mumbai's population suggests that more than 50% of the city's total

population is of non Maharashtrian identity. Among the major groups that has made Bombay their

home away from home are the Gujratis, the South Indians, the Parsis and Sindhis and a large number of

people from the states of Uttar Pradesh and Bihar that are scattered all over the city.

2.2.1 Culture of Mumbai:

Mumbai is regarded as one of the most liberal and a cosmopolitan city of India and the life there is very

fast paced. The residents of Mumbai are called as Mumbaikar. Mumbai has one of the largest networks

of local trains in the world. Most of the folks here prefer to stay in proximity to a railway station for an

easy access to the metropolis. Many people particularly the city dwellers are left with very little time for

leisurely activities due to a significant amount of their time spent in commuting. There is a carefree

attitude in the air of Mumbai. The city embraces many concepts that are a taboo in many other

prominent Indian cities. Undoubtedly the city can be stated as a melting pot of numerous cultures from

different parts of India. Mumbai is also the centre of the second largest film industry next to Hollywood

– aptly referred to as Bollywood. The cinemas are often packed and cultural taboos are often the theme

of movies.

Even though the city is overcrowded in every available space there is a uniqueness that reflects in every

aspect of the culture of city such as the food, festivals, architecture, and art. Mumbai is one of the few

cities of India that celebrates almost each and every festival of the Hindus, Muslims, Sikhs, Christians,

1 The census states that Mumbai population is 18MN, however there is an incalculable number of people living in the streets. Some estimate this number to be just as high as the known population number.

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Parsis and the numerous other communities that dwell in the city. Among the most famous celebrations

are the Ganesha festivals, diwali, holi, Christmas, Id, and Moharram.

2.2.2 Navi Mumbai - The New Mumbai

Mumbai, is projected by 2015 to be the planet's second most populous metropolis, after Tokyo2. But it's

already a world of its own. Inside the city’s other temples the so-called “lifestyle shopping malls” no

one’s afraid of conspicuous consumption, no matter what Gandhi said about the virtues of self-

restraint2. Young urbanites working in India’s business process outsourcing industry sit together at posh

restaurants with the latest iPhone or Blackberry Rim in hand who live in Manhattan-priced condos and

attend clubs similar to those in western countries. Mumbai is where Wall Street gets equities analyzed,

where Kellogg, Brown & Root sources kitchen staff for the U.S. Army in Iraq, and where your credit-card

details may be stored or stolen. It's where a phone operator who calls herself “Mary”, but it’s really

“Meenakshi”, sells Americans on two-week vacations that include a visit to the Taj Mahal and concluded

with cut-rate heart surgery3. Almost 40% of international flights to India land in Mumbai delivering

thousands of new visitors every day with an increasing number of whom that stay for good. The reason

is simple: to know Mumbai is to know modern India. It's the channel for a billion ambitions and an

emblem of globalization you can reach out and touch, a giant city where change is pouring in and

rippling out around the world.

2.2.3 Canadian Culture

Canada’s culture, like that of most any western country in the world, is a product of its history,

geography, and political system. Initially it has been shaped by the aboriginals, the English and the

French, where English and French being declared as both being the official languages. Canada has been

shaped by waves of immigration that have combined to form a unique blend of customs, cuisine, and

traditions that have marked the socio-cultural development of the nation. Multiculturalism, officially

2 Gandhi Systems of Virtues: Wealth without Work, Pleasure without Conscience, Science without Humanity, Knowledge without Character, Politics without Principle, Commerce without Morality, Worship without Sacrifice

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endorsed in Section Twenty-seven of the Canadian Charter of Rights and Freedoms4, has a large

influence on Canadian culture, which is post-ethnic and trans-national in character. Official symbols of

Canada include the maple leaf, beaver, and the Canadian Horse5. Many official symbols of the country

such as the flag of Canada have been changed or modified over the past few decades in order to

'Canadian-ize' them and de-emphasize or remove references to the United Kingdom.

Canada's federal government has influenced Canadian culture with programs, laws and institutions. It

has created crown corporations to promote Canadian culture through media, such as the Canadian

Broadcasting Corporation and the National Film Board of Canada, and promotes many events which it

considers to promote Canadian traditions. It has also tried to protect Canadian culture by setting legal

minimums on Canadian content in many media using bodies like the Canadian Radio-television and

Telecommunications Commission6.

3.0 COMPARATIVE CULTURAL ANALYSIS

3.1. DEMOGRAPHIC DIFFERENCES

India’s workforce is preponderantly young. Large numbers are entering the professional workforce at a

time of rapid economic expansion that provides increased opportunity for the well qualified and well

connected. However, access to professional education, socialization, entry and career advancement is

still disproportionately concentrated among social groups that have traditionally dominated the

professional fields. Despite its many strengths, the educational system doesn’t provide sufficient trained

talent for the job market, particularly the IT sector that is the new economy’s engine for growth. This

puts special pressures on employers in India around finding, competing for, holding and cultivating the

skilled employees they need.

In the Canada the average age of the workforce is older, mirroring the age demographics of the

population7. Changes in Canadian society have brought an unprecedented social diversity into the

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workforce, not only immigrants from all over the world, but segments of the society previously excluded

or under-represented in the professions, especially in managerial and leadership roles. Corporate

cultures, employment policies and networks of influence have been forced to change. The principal

challenge for Canadian employers today lies less in finding diverse talent, but in developing it and

creating an environment that supports social cohesion amid the diversity.

3.2 HOW DIVERSITY IS DEFINED

Unlike In India where the main diversity categories are gender, religion, place of birth (ethno-linguistic

region) and, for Hindus the caste system, in Canada the operative diversity categories are not only

gender, race/ethnicity, national origin, and religion, but also disability, age, marital status,

immigration/citizenship status, armed forces veteran status and sexual orientation. Discourse about

diversity distinguishes between social groups that are under-represented in the society’s institutions of

wealth, power and privilege, and are therefore “protected classes,” and those that have had greater

access to opportunities and professional advancement.

3.3 LEGAL FRAMEWORKS

In Canada, the past two decades have seen the development of a robust system of anti-discrimination

legislation, including mechanisms for monitoring compliance and redress for violations. It includes legal

accountability up the corporate chain of command for discriminatory or harassing behavior in the

workplace. It includes protection of employees from ‘hostile work environment’ situations and

protection against retaliation for bringing forward complaints. The success of a number of lawsuits

against corporate offenders has helped create a climate where discriminatory practices are no longer

considered acceptable, and the expected social norm for corporations is compliance with the law.

By comparison, the legal safeguards redress mechanisms and monitoring processes in India are less

developed; discrimination in recruitment, selection and career advancement are less likely to be

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aggressively challenged. In India the approach toward correcting caste-based employment

discrimination has been quantitatively fixed reservations (quotas) in public-sector jobs, state-financed

colleges and legislatures. The pros and cons of this approach are passionately debated, in ways

reminiscent of public controversies in the early days of civil rights and affirmative action legislation more

like the United States. Recent attempts by the Indian government to extend the reservations system to

the private sector have met stiff resistance from Indian industry, and this initiative is now on hold.

Backlash against the existing reservations system has also won some legal victories. A sign of voluntary

change is the adoption by most of India’s major IT companies of the U.N. Global Compact’s principles8

regarding the elimination of discrimination with respect to employment and occupation.

4.0 FRAMEWORK OF CULTURAL ANALYSIS

When we examine different cultural aspects in India, we noticed that we can apply the Schein’s

model9of organizational culture and conduct an in-depth analysis to help ACI adapt to Indian business

culture and to leverage those cultural behaviors. Schein’s model has three layers, which are artifacts,

espoused values and basic assumptions10. We also added to the Schein’s model an additional more

layer, the origin of culture behavior, to help business executives understand culture behaviors more

thoroughly.

The aspects we chose to analyze should be tightly associated with our business operation. Therefore, we

organized artifacts to four different categories which are consistent with Hofstede’s four culture

dimensions11. The following is our analysis:

4.1 SCHEIN’S MODEL OF ORGANIZATIONAL CULTURE

4.1.1 Power distance

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Artifacts: “When addressing a person, it is advisable to prefix the name with a 'Mr.', 'Mrs .’ or 'Miss', or

the professional title of the person ['Doctor' or 'Professor'] unless the person asks you to refer to him by

his/her first name. ”12

According to our research Indian people are very sensitive to the rank/position of people, and such

awareness shapes their behavior towards it. They are used to a system of hierarchy in the work-place,

senior colleagues are obeyed and respected. Discussion is almost always lead by the most senior person.

Supervisors are expected to monitor an individual's work and shoulder the responsibility of meeting

deadlines.

Espoused Values: The harmony of society is based on the order of social status, following this order is

valued.

Basic assumption: Everyone is ranked in the society. People believe difference of social status within all

the organization. A person with higher rank in the organization should be obeyed and respected, even

though they may not always make a wise decision. Hierarchy is efficient to maintain the organizational

structure.

Origin: The hierarchy system is stemmed from the Indian caste system. Castes are primarily associated

with Hinduism but also exists among other Indian religious groups. Castes and caste-like groups, those

quintessential groups with which almost all Indians are associated, are ranked. Within most villages or

towns, everyone knows the relative rankings of each locally represented caste, and people's behavior

toward one another is constantly shaped by this knowledge.13

4.1.2 Individualism/Collectivism

Artifacts: India is a collectivist culture and their strength is that they work well in teams. Individuals tend

to do things together, for example, if one person gets up to get tea, he may ask several people to follow.

Indians usually have lunch together in the office as oppose to eating alone. Moreover, In India, there is a

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noticeable lack of privacy and a smaller concept of personal space, where several generations used to

live together under one roof. For Indian business practices this places an additional importance on

interpersonal contacts, avoidance of conflict and a more indirect approach to communication.

Espoused Values: Being able to compromise and work with the group is valued. Being able to maintain

good relationship with people is valued.

Basic assumption: Collective interest is more important than individuals’ interests. In order to be

accepted by society, individual should maintain a good relationship with team members.

Origin: Indian collectivism is derived from traditional Indian family values. Historically, the traditional,

ideal and desired family in India is the joint family.

“More often than not, it incorporates several generations, with grandparents, their married and

unmarried children and grandchildren living in the same house and sharing a common budget.”14

These members eat the food cooked at one hearth, share a common income, common property, are

related to one another through kinship ties, and worship the same idols. Indian people are raised this

way, and the interdependence among family members has been rooted in their value since they were

young. Therefore it creates a sense of harmony, interdependence and concern for others.

4.1.3 Masculinity/Femininity

Artifacts: Women in business are very common in India, and they are treated with respect in the work

place. However, one should wait for a female business colleague to initiate the greeting. Indian men do

not generally shake hands with women unless female initiate it. “Tula shanbhar mula hou det” (May you

be the mother of a hundred sons) is a common Hindu wedding blessing. In Mumbai they say “ashta

putra soubhagyawati bhav”, which mean “may u be a mother of bright 8 son’s” Statistics reveal that in

India males significantly outnumber females and this imbalance has increased over time.

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Espoused Values: For parents, they value boys more than girls as boys generally do more laborious tasks

and are normally become the breadwinners. For a girl, being good mother and housewife is valued.

Basic assumption: Women and men should take different roles in society, and women should be family

oriented.

Origin: India has witnessed gender inequality from its early history due to its socio-economic and

religious practices that resulted in a wide gap between the position of men and women in the society.

The origin of the Indian idea of appropriate female behavior can be traced back to the rules laid down by

Manu in 200 B.C15.: "by a young girl, by a young woman, or even by an aged one, nothing must be done

independently, even in her own house". "In childhood a female must be subject to her father, in youth to

her husband, when her lord is dead to her sons; a woman must never be independent ." Women's lives

are shaped by customs that are centuries old.

4.1.3 Uncertainty Avoidance

Artifacts ： Indians appreciate punctuality but may not reciprocate it. It is advisable to make

appointments at least one month in advance and confirm them when arriving in India. A flexible

schedule will prove useful. They prefer indirect communication other than direct communication.

Espoused Values: Being able to bear uncertainty and to make decision without concrete information is

valued.

Basic assumption: Indian people believe in fate/destiny/karma, which take charge of many issues. They

believe human being don’t much control over their lives, they should accept everything as it is.

Origin: The uncertainty avoidance in India is relatively low compared with other cultures. The concept of

fatalism stems from one of the most characteristic traits of Indian culture – spirituality. The notion of

Karma and that everything happens for a reason is still significant in the decision making process of

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many Indians. It also influences the concept of time in India and as a consequence business negotiations

may take longer and are never rushed.

4.2 GEERT HOFSTEDE ANALYSIS

In the 1970s Hofstede developed four

dimensions of culture based on an extensive

survey conducted among IBM managers in over

50 countries for work values and subsequently

developed those dimensions of culture

compatible in a sense to the business practices.

Hofstede defined culture as the collective programming of the mind which distinguishes the members of

one group or category of people from another3. According to his findings individual behavior is

determined by their mental programming, however they have the ability to deviate from this and react

in many ways, which are different than their culture. Hofstede, in his theory, gave four dimensions to

culture: 1) Individualism/Collectivism(IDV) , 2) Power Distance(PDI, 3) Uncertainty Avoidance(UAI),

4)Masculinity/Feminine,(MAS) and 5) Long Term Orientation(LTO).

Understanding of these five dimensions will give ACI business managers the knowledge to have

meaningful and effective interactions between the two cultures. Figure 1 graphs Hofstede’s cultural

dimensions comparing India with Canada as well as the world.

4.2 1Individualism/Collectivism

Individualism/Collectivism is the relationship between individuals and their fellow individuals. Hofstede

said that individualism stands for a society in which the ties between individuals are loose. Everyone is

looking after him or herself and their immediate families only. Collectivism stands for a society in which

people are integrated into strong cohesive groups, which protect them throughout their lives.

3 http://radio.weblogs.com/0107127/stories/2003/01/16/cultureGeertHofstedesModel.html

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World

Figure 1. Hofstede Dimensions

Individualism is often regarded as the characteristic of a modernizing society, while collectivism reminds

us of both more traditional societies and the failure of the communist experiments.

In India there is no standard for rewarding individuals of a company that are pro-active in their career

advancement. This concept is traditional to an individualistic culture, which India is not. This means that

we cannot expect ACI managers in India to ask for decisions from an employee of a company without

them contacting someone of authority first. According to our research, religion is not the reason for

individualism. Some religions have a greater set of rules that need to be followed. Doing business in

India involves building relationships. Indians only deal favorably with those they know and trust - even at

the expense of lucrative deals. It is vital that a good working relationship is founded with any

prospective partner. This must take place on a business level, i.e. demonstrating strong business

acumen, and at a personal level, i.e. relating to your partner and exhibiting the positive traits of

trustworthiness and honour.

Canada has Individualism as the highest ranking in Hofstede’s Dimension, and is indicative of a society

with a more individualistic attitude and relatively loose bonds with others. The populace is more self-

reliant and looks out for themselves and their close family members. Privacy is considered the cultural

norm and attempts at personal ingratiating may meet with rebuff.

Among high individualistic countries, success is measured by personal achievement. Canadians tend to

be self-confident and open to discussions on general topics; however, they hold their personal privacy

off limits to all but the closest friends.

If business dealings in India involve negotiations, always bear in mind that they can be slow. If trust has

not yet been established then efforts must be place on building a rapport. Decisions are always made at

the highest level. If the owner or director of the Indian company is not present, the chances are these

are early stage negotiations.

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4.2.2 Power Distance

Hofstede proposed Power Distance as the extent to which the organizations expect and accept the

unequal distribution of power. A high Power Distance ranking indicates that inequalities of power and

wealth have been allowed to grow within the society. These societies are more likely to follow a caste

system that does not allow significant upward mobility of its citizens. A low Power Distance ranking

1Mumbai Geography. URL: http://www.mumbainet.com/template1.php?CID=15&SCID=3. Date retrieved: July 20, 2008.

2Citizendium - The Citizens Compendium http://en.citizendium.org/wiki/Mumbai Date retrieved: July 20, 2008.

3 Time Magazine “Outsourcing your heart”. Url: http://www.time.com/time/magazine/article/0,9171,1196429,00.html. Date retrieved: July 17, 2008.

4 Canadian Charter of Rights (Overview). URL: http://en.wikipedia.org/wiki/Section_Twenty-seven_of_the_Canadian_Charter_of_Rights_and_Freedoms. Date retrieved: July 10, 2008

5 Canadian Symbols. URL: http://en.wikipedia.org/wiki/Culture_of_Canada. Date retrieved: July 10, 2008

6 Median and Canadian Cultural Policies.URL: http://www.media-awareness.ca/english/issues/cultural_policies/index.cfm. Date retrieved: July 12,2008

7 The Canadian Workforce - Statistics Canada. URL: http://canadaonline.about.com/cs/statistics/a/workforcestats.htm.

Date retrieved: July 12, 2008.

8 United Nations Global Compact 'Ten Principles'. URL: http://www.unglobalcompact.org/AbouttheGC/TheTENPrinciples/index.html. Date retrieved: July12,2008.

9 Schein, Edgar. Organizational Cultural & Leadership. 1997.

10 Schein’s Model of Organizational Culture, slide page 11, class 1 Introduction,

11 What made Hofstede’s contribution so highly valued?, slide page 3,Class 3,

12 Your guide to India, Madhukar Shukla http://www.executiveplanet.com/index.php?title=India

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indicates the society de-emphasizes the differences between citizen's power and wealth. In these

societies equality and opportunity for everyone is stressed.

The Hofstede analysis for India suggests a large power distance society and all other measures are

relatively moderate. This would be indicative of the fact that India is in the midst of change. The

traditional caste systems has been outlawed, however the large power distance score indicates that the

attitudes still remain.

As it can be seen in figure 1, India’s Power Distance score was very high for culture, with a ranking of 77

compared to a world average of 56.5. This Power Distance score for India indicates a high level of

inequality of power and wealth within the society. This condition is not necessarily subverted upon the

population, but rather accepted by the population as a cultural norm. In India, social hierarchies are

very much in place and even at work it is not easy to be friendly with one’s boss in most organizations.

Calling one’s boss by his first name is rare in India. In fact abuse by seniors is also common and usually

the employee is helpless and his only recourse is to leave.

Canada's Power Distance is relatively low, with an index of 39, compared to a world average of 55. This

is indicative of a greater equality between societal levels, including government, organizations, and even

within families. This orientation reinforces a cooperative interaction across power levels and creates a

more stable cultural environment.

It has been found that in most cultures there is a correlation between a country's religion and the

Hofstede Dimension ranking it has. The Hofstede Dimension that correlates most with the Hindu religion

13 The Caste System in India， http://www.indianchild.com/caste_system_in_india.htm

14 P16, Passport INDIA, By World Trade Press, Manoj Joshi

15 Indian women http://www.southasianmedia.net/profile/india/india_women.cfm

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is Power Distance the same as Atheists in China and Muslims. All three have a high level of Power

Distance as the highest correlating cultural dimension with their religions.

4.2.3 Masculinity/Feminine

This Hofstede Dimension concept of a culture refers to the distribution of roles between the men and

women in a cultural society. Studies revealed that men’s values differ from those of the women. Men’s

values are assertive and competitive from one country to another. Women’s values of one country are

modest and caring and are similar to the values of another country. The assertive aspect of a culture has

been named masculine and the caring modest aspect has been termed as feminine. In a masculine

society men are supposed to be tough, focused and assertive while women are supposed to be more

modest and caring. On the other hand in a feminine society both men and women are supposed be

modest, tender and concerned with the quality of life. Masculine individuals are characterized as

aggressive and money oriented. Feminine individuals are characterized as people oriented and less

interested in personal recognition.

India has Masculinity as the third highest ranking Hofstede Dimension at 56, with the world average just

slightly lower at 51. The higher the country ranks in this dimension, the greater the gap between values

of men and women. It may also generate a more competitive and assertive female population, although

still less than the male population.

Applying the concept of masculinity to Canada the raw scores indicate similarities to the world average

which suggests a balance of assertiveness and modesty.

4.2.4 Uncertainty Avoidance

This dimensions focuses on the level of tolerance for uncertainty and ambiguity within the society - i.e.

unstructured situations. A high Uncertainty Avoidance ranking indicates the country has a low tolerance

for uncertainty and ambiguity. This creates a rule-oriented society that institutes laws, rules, regulations,

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and controls in order to reduce the amount of uncertainty. A low Uncertainty Avoidance ranking

indicates the country has less concern about ambiguity and uncertainty and has more tolerance for a

variety of opinions. This is reflected in a society that is less rule-oriented, more readily accepts change,

and takes more and greater risks.

India's rank in the Uncertainty Avoidance dimension is 40, compared to the world average of 65. On the

lower end of this ranking, the culture may be more open to unstructured ideas and situations. The

population may have fewer rules and regulations with which to attempt control of every unknown and

unexpected event or situation, as is the case in high Uncertainty Avoidance countries. Normally a low

score is ‘good’, as it means that the society has fewer rules and does not attempt to control all outcomes

and results. It also means a greater level of tolerance for a variety of ideas, thoughts, and beliefs and a

high tolerance for ambiguity.

Canada has a similar score when it comes to the Uncertainty Avoidance measure at 43. The similar

scores for both countries represent a call to attention for regional managers, who must understand that

there is minimal differing thought-process of Canadian and Indian employees towards the future.

Collaborating on complex problems will be much easier as long as you have establish authority.

4.2.5 Long Term Orientation

The final dimension of Hofstede’s analysis of culture is that of Long-Term Orientation. This fifth element

was recently added by Hofstede in an attempt to incorporate more Eastern attitudes, and it is based on

Confucian principles.

India's Long Term Orientation Dimension rank is 61, with the world average at 48. A higher Long Term

Orientation score can be indicative of a culture that is perseverant and parsimonious. India has a very

high score meaning that their culture is more persistent and thrifty. Indian’s have a sense of shame that

is shared amongst a group of people and relationships are viewed by order of status. It is expected that

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the Indian businessperson will need to plan further out in their business plans because of their need for

Long-Term Orientations. It’s interesting to note that even when Indians travel abroad they work very

hard and sacrifice a lot for long-term benefit, which is the education of their children. Staying put in one

job is also an indication of long term orientation and this once was very common in India, however this

is changing due to economic growth.

Canadian's ranks low in this dimension at 23, compared to the average of 45. This low ranking is

indicative of a societies' belief in meeting its obligations and tends to reflect an appreciation for cultural

traditions.

5.0 RECOMMENDATIONS

Based on our succinct analysis of Indian culture, the following are our recommendations that will ensure

ACI’s vested interest in doing business in India to be a success in all fronts. Successful implementation of

these recommendations will require ACI organizational cultural competencies, business strategy, and

ability to adapt to change.

1. CROSS-CULTURAL TRAINING

We have tried to cultivate special training programs for those dealing with international business as a

means of reducing the size and effectiveness of the so called “cultural shock”. Thus, one goal of cross-

cultural training programs is to give international assignees skills and strategies that will help them

through this process of adjustment.

The training will include three parts. First part is a basic introduction about general culture differences.

For those people who never went aboard and worked in a different culture, they will be amazed that an

exotic culture has so many different norms and underlying assumptions. Second part will introduce

some inter-cultural management models (Schein’s model, Hofstede’s five dimensions, and MCI model)

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and theories that can apply to different cultural background in general. Finally the last part will be

specific Indian cultural training, including key concepts and values, Indian business practice training

(management style and communication methods) and Indian business etiquette training. This training

will help our employees to understand the differences, bridge the gaps and manage these differences.

Training may also be provided to family members accompanying the expatriate. While the employee has

the inherent support and structure of their work, the spouse and children often have greater difficulty in

the cultural adjustment process since they may have greater daily contact with the host society.

2. ORGANIZATION STRUCTURE

Working successfully with individuals unlike ourselves is difficult and requires change. When change is

not successfully managed in culturally diverse work groups, the disadvantages can reduce the

productivity of the organization. Diversity in work groups increases ambiguity, complexity, and

confusion. As a result, these groups may have difficulty converging meanings, reaching a single

agreement, and agreeing on courses of action. However, ACI can minimize this risk by creating proper

organization structure.

Indian people are good with teamwork, and they prefer the hierarchy organization system. So it’s

suggested we setup pyramidal power structure. We should arrange Canadian expatriates to work with

an Indian team and assign their roles as team leaders, their responsibility will be monitoring, checking

and look after the subordinators. In general, subordinates are not expecting to participate in the

decision making process and hardly turn down the request for their superior, making them hard

workers. However, some micro management and clear guideline of work will be needed.

3. COMMUNICATION IMPROVEMENT

The inability to convey meaning and reach agreements reflects the communication within the groups. A

work group cannot function properly without proper communication. In any type of the relationships,

especially in a group, communication is the key to understanding and solving problems. The perceptions

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of time, space, and business practices can disrupt effective communications. Being alert and sensitive to

cultural cues and context before speaking is the first step in overcoming cultural communication

barriers. Because Canadians prefer direct communication while Indians prefer indirect communication,

it would be quite possible that miscommunication inside the organization between the Canadian

managers and Indian subordinators. Moreover, because Indian employees are very sensitive to the

ranks between the colleagues, they probably will not directly point out the false direction of the

company strategy and give negative feedback. In order to improve the communication between the

management and employees, we recommend that ACI to setup an email account to accept anonymous

emails from the employees. It will be efficient method to get feedback from employees.

Even though English is widely spoken in Indian corporate culture, the meaning of words and expressions

may not be similar. The form of English that Indians are taught in school is essentially ‘British English’,

and as you know Canadian English and British English differ immensely. However, ACI should be aware

that Indian English is evolving. The grammar of Indian English has many distinguishing features, of

which perhaps the best-known are the use of the present continuous tense, as in 'He is having very

much of property', and the use of ‘isn't It’ as a ubiquitous question tag: 'We are meeting tomorrow, isn't

it?'. Verbs are also used differently, with speakers often dropping a preposition or object altogether. To

‘read between the lines’ so to speak, we recommend that you review the common idioms listed in

Appendix 4 and be aware that even though you may be speaking the same language you may be

communicating something completely different. Our best recommendation for this will be to just to

learn the differences through osmosis. ACI managers will eventually understand the difference and pick

up some slang as well.

4. SCHEDULING AND APPOINTMENT

In order to meet the schedule of business operation, we need to keep on track of the business process

and always confirm the schedule with Indian workers. To make an appointment with a major client it is

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acceptable to allow some flexibility in the time arrangement. In order to get everything on schedule, we

should plan in advance and setup some allowance in the project management system.

5. CONTRACT NEGOTIATION

In general, Indians are cautious in accepting a new ideas or proposals. Openness to a new idea depends

not only on its quality, but also on its source and endorsement. That is, information about whom else

has implemented it or who has proposed it has a major influence on the decision about a new idea. In

making a proposal, you must include such details accordingly.

Indians usually do not express their disagreements openly and directly; doing so would be considered

discourteous. Instead, when differences arise, they may circumvent them by statements such as 'we will

discuss this later' or 'I will have to check with others about this.'

Bargaining for the price or additional concessions is normal in India. Indian negotiators expect and value

flexibility in negotiation. Therefore, sometimes a straightforward offer may be perceived as a rigid stand.

It is always advisable to build some buffers in one's initial offer, which allow for bargaining later.

Do not insist on commitment in the first meeting. Making a decision, in Indian organizations, is often a

long-drawn out process. This is not only because of the bureaucratic nature of many Indian

organizations, but also because a decision may have to be ratified by people who may not be present at

the negotiating table.

6. GENDER ISSUES

Business women are well-educated and respected in Indian society. Be aware of the gender gap in the

Indian society will help the organization operating properly. Displays of affection in public are

considered inappropriate and sometimes illegal.

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6.0 APPENDICES

APPENDIX 1 : SURVERY QUESTIONNAIRE

Indian culture Survey questionnaire

As you understood part of Indian culture, please choose what you prefer as an Indian.

Neither Agree

Strongly Nor Strongly

Agree Agree Disagree Disagree Disagree

1. It is ok to be little late for a meeting. 1 2 3 4 5

2. Promotion is one incentive to work hard. 1 2 3 4 5

3. If situation is not under control, nothing we can do 1 2 3 4 5

about it.

4. Keeping a good relationship with co-workers is 1 2 3 4 5

an important part of my job.

5. It is not polite to deny other’s request directly. 1 2 3 4 5

6. It is good habit to save money for future. 1 2 3 4 5

7. I think man should do better jobs than woman on most things. 1 2 3 4 5

8. It is necessary to get good education before going to work. 1 2 3 4 5

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9. I would do whatever my boss told me to do even if 1 2 3 4 5

I don’t think his decision is bright.

10 For project planning, it is important to allow some flexibility. 1 2 3 4 5

11. I prefer working with a team other than working alone. 1 2 3 4 5

12. Women should take care of family and children. 1 2 3 4 5

13. It is necessary to hang out with colleagues after work. 1 2 3 4 5

14. I think people are born to be smart, repected and wealthy. 1 2 3 4 5

15. I like to plan for long term other than short term. 1 2 3 4 5

16. I like to marry a woman who is family oriented. 1 2 3 4 5

17. I believe fate. 1 2 3 4 5

18. I think people are not equal since the day they were born. 1 2 3 4 5

19. If I want to have good life, I should start to plan now. 1 2 3 4 5

20. I don’t want my wife to work to support family. 1 2 3 4 5

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Survey Results :

Name of respondents 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Ashish Ghangrekar 2 1 2 1 2 2 1 2 2 3 1 2 2 2 3 1 1 1 1 3

Aniket Choudary 2 1 1 2 1 3 2 2 1 2 2 2 2 1 2 1 2 1 1 2

Stuart Browne 3 3 1 3 2 3 1 1 2 3 2 2 1 4 2 2 3 2 2 3

Average 2.3 1.7 1.3 2.0 1.7 2.7 1.3 1.7 1.7 2.7 1.7 2.0 1.7 2.3 2.3 1.3 2.0

1.3

1.3

2.7

Question 1,3,10,17 are about uncertainty avoidance, if they answered stronger agree(1), then thhave high UAI.

Question 2,9,14,18 are about Power distance, if they answered stronger agree(1), then they have High PDI.

Question 4,5,11,13 are about Individualism, if they answered stronger agree(1), then they have Low IDV.

Question 6,8,15,19 are about Long term orientation, if they answered stronger agree(1), then they have High LTO.

Question 7,12,16,20 are about Masculinity, if they answered stronger agree(1), then they have High MAS.

(weighter average)

UAI 2.1 HighPDI 1.8 HighIDV 1.8 LowLTO 2.0 HighMAS 1.8 Low

Since we don't have comparison data for the survey, Our survey results just show a relatively high or low on different culture dimensions.

Interviewee Description

1 Indian national, worked in India

2 Indian national, worked in India & Canada

3 Canadian (white) national, did business in India

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APPENDIX 2 : LITERATURE AND MOVIE RECOMMENDATIONS

Movie Recommendations:

BOMBAY: OUR CITY

This movie tells the story of the daily battle for survival of the 4 million slum dwellers of Bombay who make up half the city's population. Although they are Bombay's workforce - industrial laborers, construction workers, domestic servants - they are denied city utilities like electricity, sanitation, and water. Many slum dwellers must also face the constant threat of eviction as city authorities carry out campaigns to "beautify" Bombay.

I for India

In 1965 Yash Pal Suri left India for the U.K. The first thing he does on his arrival in England is to buy 2 Super 8 cameras, 2 projectors and 2 reel to reel recorders. One set of equipment he sends to his family in India, the other he keeps for himself. For forty years he uses it to share his new life abroad with those back home - images of snow, miniskirted ladies dancing bare-legged, the first trip to an English supermarket - his taped thoughts and observations providing a unique chronicle of the eccentricities of his new English hosts. Back in India, his relatives in turn, respond with their own 'cine-letters' telling tales of weddings, festivals and village life.

As time passes and the planned return to India becomes an increasingly remote possibility, the joy and curiosity of the early exchanges give way to the darker reality of alienation, racism and a family falling apart.

A bitter-sweet time capsule of alienation, discovery, racism and belonging, "I for India" is a chronicle of immigration in sixties Britain and beyond, seen through the eyes of one Asian family and their movie camera.

Book Recommendation:

CHINDIA – Published by Business Week

China's growth and manufacturing dominance are two of the biggest global trends of the last 10 years. India's technology, service, and outsourcing industries make it a valued partner, as well as a formidable competitor.

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The stunning rise of China and India makes it clear: to survive and thrive in the new global market, you have to engage with China and India. This comprehensive guide is your road map to meeting this challenge. The book combines frontline reports from BusinessWeek's award-winning Asia staff with point-by-point commentary by the experts, including new introductions to each chapter by BusinessWeek's Pete Engardio.

This up-to-date exploration includes award-winning special reports on key issues such as manufacturing (“The China Price”) and technology (“The Rise of India”). It's filled with the crucial information you need to compete-from the world's most widely read business magazine.

Doing Business in India

By Rajesh Kumar, Anand Sethi

This short book first explores India’s history and cultural background, and then provides guidelines for doing business in India. The historical background may seem remote from day-to-day business considerations, but, in fact, it is essential to understanding the apparent anomalies of Indian negotiating styles, management behavior, government policies and so forth. getAbstract urges readers to be patient with the book’s small type and sometimes convoluted sentence structure, for if you are, you will discover much to reward you. The authors examine business challenges in India, including strategic planning, personnel management, government relations,

negotiations and conflict resolution. Any manager investing in, working in or outsourcing to India will find this book very useful.

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APPENDIX 3 : RELIGIOUS DEMOGRAPHICS

Religious Composition

Population * (%)

Hindus 827,578,868 80.5

Muslims 138,188,240 13.4

Christians 24,080,016 2.3

Sikhs 19,215,730 1.9

Buddhists 7,955,207 0.8

Jains 4,225,053 0.4

Other Religions & Persuasions

6,639,626 0.6

Religion not stated 727,588 0.1

Total * 1,028,610,328 100

Source : http://www.censusindia.gov.in/Census_Data_2001/India_at_glance/religion.aspx

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APPENDIX 4 : COMMON INDIAN IDIOMS

Condoled - as in 'The railway minister condoled the families of those killed in the accident'. Gone for a six or Taken a six - to mean something got ruined. (Origins linked to game of Cricket)

Eve-teasing - 'Sexual harassment'

Pre-cap - 'like re-cap at beginning of serial TV show, a pre-cap at the end previewing the next one'

Convented - 'A girl educated well in Christian convent-style school'

I got a firing/I was fired by him - 'I got yelled at by him'

Sharma sir is not here - same as Sharma-ji is not here, a respectful address. No knighthood suffix.

I will make a move now - means 'I'm leaving', not 'making a move on someone', or anything related to chess.

Where are you put up? means 'Where do you live'?. Heard often in S.India.

Where do you stay? is the same as 'Where do you live?' or 'Where's your house?'

Cheap and best means good quality at a low price - a great deal

I don't take meat/milk/whatever - 'I don't eat meat/ drink milk' etc

It is worst - 'It is really bad or of very poor quality'.

She is innocently divorced or divorced (innocent)- not the party at fault, or the marriage was not consummated..

Wheatish complexion - Seen in matrimonial ads. Means 'not dark skinned, tending toward light'

"Your good name please?": "What is your name?", carryover from Hindi expression "Shubh-naam", literally meaning "auspicious name". This is similar to the way Japanese refer to the other person's name with an honorific "O-" prefix, as in "O-namae" instead of the simple "namae" when referring to their own name. It is also an indication that the questioner wants to know the person's formal or legal given name, as opposed to the pet name s/he would be called by close friends and family.

"Out of station" to mean "out of town". This phrase has its origins in the posting of army officers to particular 'stations' during the days of the East India Company.

"Join duty" to mean "reporting to work for the first time". "Rejoin duty" is to come back to work after a vacation.

"Hello, What do you want?": used by some when answering a phone call, not perceived as impolite by most Indians

"Tell me": used when answering the phone, meaning "How can I help you?"

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"send it across" instead of "send it over", as in "send the bill across to me" instead of "send the bill over to me".

"order for food" instead of "order food", as in "Let's order for sandwiches".

"What a nonsense/silly you are!" or "Don't be doing such nonsense any more.": occasional - idiomatic use of nonsense/silly as nouns (although this use of nonsense is not uncommon in British English).

"pass out" is meant to graduate, as in "I passed out of the university in 1995."

"go for a toss" is meant to go haywire or to flop, as in "my plans went for a toss when it started raining heavily."

"funny" is meant to replace not only "odd"/"strange" but "rude"/"precocious"/"impolite" as well. "That man was acting really funny with me, so I gave him a piece of my mind"

"on the anvil" is used often in the Indian press to mean something is about to appear or happen. For example, a headline might read "New roads on the anvil".

"tight slap" to mean "hard slap".

I have some doubts - 'I have some questions'

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7.0 REFERENCES

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