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Indian culture v

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  • 1. SALIENT FEATURES OF INDIAN CULTURE AND ITS IMPACT ON BUSINESS
  • 2. CULTURE • Culture is the collective programming of the mind which distinguishes the members of one human group from another. • Culture can also be defined as pattern of basic assumptions-invented,discovered or developed by a given group as it learns to cope with its problems of external adaptations and internal integeration. • “A system of values and norms that are shared among a group of people and that when taken together constitute a design for living.”
  • 3. MODEL OF ORGANIZATIONAL CULTURE • Distribution and concentration of power can be one basis of classifying cultures . From this view point it can be of following types: • Autocratic • Bureaucratic • Technocratic • Entrepreneurial
  • 4. Organizational culture Autocratic (deaf) Bureaucratic (code) Technocratic (expex) Entrepreneurial (ace)
  • 5. Indian culture v/s Western culture Traditionally Indian culture is characterized by family system. •Western culture believes in a nuclear family system. • These characteristics have as strong influence on the thinking of the people. •It influence the organization and managers belonging to that culture.
  • 6. BASIS INDIAN CULTURE WESTERN CULTURE Belief in faith and luck Strong believers Believes in hard work and effort Belief in spiritualism Strong believer Believes in materialism
  • 7. BASIS INDIAN CULTURE WESTERN CULTURE Public Appearance No body exposures Fashionable clothes in thing Care of old people Sons are expected to take care Old parents are not cared for Respect for women No religious ceremony is held Relegated to old homes.Looked as
  • 8. IMPACT OF CULTURE • It affects: • Consumer behavior • Local demand • Buying decisions • Brand Image • Culture influences managerial styles and management • decisions • Culture affects the nature of business negotiations.
  • 9. IMPORTANCE OF CULTURE • Knowledge of Native culture is useful when dealing with home markets but it has little value when dealing in foreign markets. • Culture acts as a hidden entry barrier, but it can be overcome with cultural sensitivity, hard work & quality. • Managerial behaviour is driven by his/her cultural knowledge
  • 10. INDIAN CULTURE In such a richly diverse and complex country as India it is difficult to impart generic conclusions that can be used by those doing business there. Regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behaviour, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed.
  • 11. CULTURAL FACTORS • Language • Different states in India each have different official languages. Central government only recognises Hindi as the official language of India. However, when doing business in India, English is the language of international commerce.
  • 12. CULTURAL FACTORS…Cont • Hierarchy • Of all the cultural influences that most impact Indian business culture, hierarchy plays a key role. With its roots in Hinduism and the caste system, Indian society operates within a framework of strict hierarchy that defines people's roles, status and social order.
  • 13. DOING BUSINESS • The aim of business is the same everywhere, but the way to do it varies across countries. • Global Managers must be able to handle Culture shock. • Similar business situations in different countries does not imply similar opportunities. Alcohol in Muslim world.
  • 14. DOING BUSINESS Meeting and Greeting • When doing business in India, meeting etiquette requires a handshake. However, Indians themselves use the Namaste. This is where the palms are brought together at chest level with a slight bow of the head. Using the Namaste is a sign of your understanding of Indian etiquette.
  • 15. DOING BUSINESS…Cont • Building Relationships • Doing business in India involves building relationships. Indians only deal favourably 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.
  • 16. DOING BUSINESS…Cont • Meetings and Negotiations • Meetings should be arranged well in advance. This should be done in writing and confirmed by phone. Avoid meetings near or on national holidays such as Independence Day, Diwali or either of the two Aids. Avoid the heat by scheduling between October and March. • Punctuality is expected, although being 10 minutes late will not have disastrous consequences. Flexibility is paramount. Family responsibilities take precedence over business so last minute cancellations are possible when doing business.
  • 17. DOING BUSINESS…Cont • If your business dealings in India involve negotiations, always bear in mind that they can be slow. If trust has not yet been established then concentrate efforts on building a rapport. Decisions are always made at the highest level. Indians do not base their business decisions solely on statistics, empirical data and exciting PowerPoint presentations. They use intuition, feeling and faith to guide them. Always exercise patience, show good character and never exhibit frustration or anger
  • 18. CASE STUDY • Mumbai’s famous Marine drive glittered as thousands of cars and motorcycles sped homeward. A loudspeaker blared Bollywood film music as though competing with the chaotic din of traffic. Across the road, people strolled along a promenade separating Marine drive from the Arabian Sea, apparently unconcerned by the loud noises. A light, salty breeze caressed the walkers as they relaxed after a long day’s work. • • Mike absently watched the people on the promenade from the balcony of his hotel room. He had gone out for a walk on each of his last six nights in Mumbai. But today he could not get himself to leave the room. His hopes for starting a new joint venture in India, which had soared high only a week ago, had now come crashing down. His future in this strange, exotic land suddenly seemed bleak. He did not understand what had happened. He was utterly frustrated.
  • 19. The Indian economy was booming, and held great promise for the future. Several multi-national firms had already set up offices across the country, encouraged by the opening up of India’s foreign policies. Mike and his American associates had been excited at the prospect of starting a joint venture with a particular reputed Indian firm. Initial negotiations had been positive, but slowly misunderstandings and other problems crept up. Mike had attended several meetings in the past week, expecting to have a finalized deal by that morning. But his Indian counterparts did not appear to feel it was important to close the deal as soon as possible.
  • 20. They had had long, rambling discussions about the project’s objectives and feasibility without making any solid decisions. Even the few decisions that had been reached were not concrete as approval had to be sought from senior colleagues. An exasperated Mike tried to hasten the process as many other issues remained to be addressed, but the Indians felt that he was only interested in completing the deal, and not in examining the finer aspects of the venture. As a result, they began to question his sincerity and ability. His aggressive manner made him appear rude and tactless. His way of addressing them informally also made them feel disrespected and uncomfortable. The bottom line was that they did not trust him.
  • 21. In turn, trust also became an issue at Mike’s end as he began to doubt the Indians’ capability of seeing a project through to completion within the deadline. Consequently, he was uncertain if they would make good business partners.
  • 22. REASON FOR NOT FINALISING OF THE DEAL??
  • 23. THANKS