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Comparative management styles of india and china mas trinity

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  • 1. CHIN IA  China + India= Chindia (Title of the book written by “Pete Engardio”  Main causes behind economic gap are:  Structure of govt.  Business culture  Similarities also like high economic growth rates and own huge labor markets.
  • 2.  Management styles are group of principles that any firm can follow as a part of their management policy to garner maximum output from its employees and grow collectively as a team.  Every management style is unique and some people may respond positively to a management style whereas some may not perform effectively for the same management style.
  • 3. CHINA  Businessmen emphasize on their "relations" with other businessmen and govt. officials. Their business depends on the strength of their "relations" with these powerful people. INDIA  The technology, research and development professionals and business managers have more avenues to success . In India, "relations" are not the only reason for success.
  • 4. CHINA INDIA Hierarchy is followed.  Team decision is followed.  The decision is made only by the key people at the top of the organization.  Decisions are reached by the person with the most authority.  Decisions may take a long time, as they require careful review and consideration.  Delays are to be expected, especially when dealing with the government.
  • 5. CHINA  Shortage of middle- and senior managers with experience managing client expectations, leading large teams, and communicating with customers. INDIA  Strong project management skills and continues to invest in initiatives to strengthen middle management capabilities.
  • 6. CHINA  Outsourcers in China are not transparent, which makes business operation difficult. INDIA  Outsourcers in India tend to promote transparency with customers, in as much as true openness is ever a part of an outsourcing deal.
  • 7. CHINA  China only recently moved away from trading agreement forms to more mature contracting capabilities. INDIA  India has a strong tradition of private contracting and enforcement, similar to leading global providers
  • 8. CHINA  Market is fragmented and dominated by small to midsize suppliers. INDIA  Robust and competitive provider legion of Indianowned , publicly held suppliers and large local operations of global providers.
  • 9. CHINA  Depends on state-owned enterprises and banks .  Strong intervention from the government. INDIA  Small and medium-sized private enterprises are the main life stream of Indian economy.  Very less intervention of govt.
  • 10. CHINA  Keep the communist party happy all the administrative and legal hassles can be taken care of, even during legal cases. INDIA  India, slow moving democracy, normally takes a higher moral ground and allows the law to take its own course, detrimental to business from
  • 11. CHINA  Derived from Soviet and continental legal principles; It is complex, and inconsistently enforced. INDIA  For Western customers, India's legal system is familiar-a British-based common law system with an independent judiciary.
  • 12. CHINA  China's wage inflation has been low thus far. INDIA  India continues to experience strong upward pressure on salaries
  • 13. CHINA  China boasts 813.5 million workers and 4.3 percent unemployment INDIA  India's 467 million and 10.7 percent unemployment.
  • 14. CHINA  Strong, but does not float despite increasing pressure. INDIA  A strong India rupee stills erodes the margins of Indian businessman.
  • 15. CHINA  Major investments in a modern transportation system, power supply, telecommunication s, and high-speed broadband. INDIA  India's infrastructure is weak and has not kept pace with economic growth.
  • 16.  So, after looking upon these differences of management approach, we can conclude that India is going to overtake Chinese economy in near future if it improves some sector like infrastructure, legal system and structure of govt.