Indian culture and its Influence over Management Styles

Traditional India

Transformation of Indian Management

Fundamental & mutually reinforcing concepts

Caste System: Rigid social stratification

system
Karma:

Predestination related to past life Social duty

Dharma:

Historical/ Social Factors Influencing Indian Society

The Caste System - The caste system evolved from a composition of interdependent occupational groups to a stratified, hierarchical, socio-economic class system of British Colonisation- The British colonisation left a legacy of administrative bureaucracy and cleavage between leading and nonleading groups

Legacy

 Post-Independence Socialism- The development

goals behind the socialist ideology led to the protectionist economic situation that dominated until 1991 - beginning of challenge to values of Karma and Caste system due to social change and education Post-1991 Economy and Society- rapid change, Competition & achievements further challenged traditional shared values (Karma & Caste)

Traditional Influences at the Workplace

Fatalism at work (nothing can be improved)

Lower persistence and ambition

Scepticism towards innovation, the future Lack of sense of urgency and planning time

Ambivalent attitude towards material success

Conformity, dependence, seeking approval over

initiative, creativity, independence

Philosophical/ personal, shared values: Factors Influencing Indian Society

Karma Predestinations Humans are unchangeable and shaped by past life activities Impassive and impersonal outlook of pain, suffering and poverty Preordination of one's life events No mastery over nature and destiny What is unfinished in this life can be continued in the next

 Emphasis on heritage and tradition

Lack of urgency, preference for tried-and-true

Current time cycle is not worthy, predominance of

evil Dharma- social duty

Admiration of ascetic contemplators over doers
Motivation through duty to one's life roles and family

Traditional Indian Management in Comparison

Management Practice Employee Requirements Western Management Task requirements and abilities Traditional Indian Management Family relation and caste memberships

Leadership Style

Participative management style where input is solicited / Relationships remain impersonal Work an end itself / Intrinsic rewards

high level of personal involvement with their subordinates. Leaders provide nurturance Work is viewed as a means to an end Little demand for changing work tasks, only the compensation is relevant

Motivational Aspects and Rewards

Changing Environment After 1991

Opening up of the Indian Economy

> Before 1991 protected economy and import of certain goods was restricted > After 1991 competition increased tremendously after the liberalisation. Competitors from all over the world enter the Indian market
Competition from Low Wage Countries

> Low range products are floating into the market > Low price, low quality
Environmentalism and the Growing Importance of Stakeholders

> As the economic status of the people in India increases, aspects such as environmental issues are increasingly addressed

Areas of Change
Globalisation of Competition and Markets

Mobility of Professionals and Internationalisation of

Salaries Professionalisation of Human Resources Systems Urbanism and Centralisation

Evolution of Indian Management

Management Practice Employee Requirements Leadership Style Traditional Indian Management Family relation and caste memberships important Personal involvement with their subordinates. Leaders provide nurturance Work is viewed as a means to an end , to satisfy family needs Contemporary Indian Management Relevant qualifications for task requirements Increasingly participative management style job rotation, enrichment, autonomy, and competitive salaries are important Objective selection criteria. Training programs , performance related compensation

Motivational Aspects and Rewards Human resource management practices

Nepotism and caste considerations. Training less emphasized