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8/14/2019 Indias Make Up
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India
http://hulk.bu.edu/misc/india/places/indiamap.html8/14/2019 Indias Make Up
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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.