Indian Culture and Business Ethics
Culture is the collective programming of the mind which distinguish the member of one human group from another .
Culture can also be defined as pattern of basic assumption invented discovered or developed by a given group as it cope with its problems of external adaptation and internal integration.
A system of values and norms that are shared among a group of people and that when taken together constitute a design for living .
INDIAN CULTURE.
In such a richly diverse and complex country as India . It is difficult to impart generic conclusion 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 . Behavior ,etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed.
- Knowledge of native culture is useful when dealing with home market but it has little value when dealing in foreign market .
- Culture act as a hidden entry barrier , but it can be overcome with culture sensitivity , hardwork &quality.
- Managerial behavior is driven by his /her culture knowledge
BUSINESS ETHICS :
Business ethics are moral principle that guides the way a business behave .The same principle that an individual's action also apply to business.
Eg. Companies should not use child labour .They should not unlawfully use copyrighted material and processes
CULTURAL FACTOR:
- LANGUAGE
- HIERARCHY
DOING BUSINESS
- The aim of business is the same everywhere , but the way to do it varies across countries.
- Global Manages is must be able to handle culture shock.
- Similar business situations in different countries does not imply similar opportunities .Alcohol in Muslim world .
When doing business in India , meeting etiquette requires a handshake . However , Indian themselves use the Namaste .This is where the plam are bought together at chest level with a slight bow of the head .Using the Namaste is a sign of your understanding of Indian etiquette.
BUILDING RELATIONSHIPS
Doing business in India involved building relationships .Indian only deal favorably with those they know and trust -even at the expense of lucrative deals.It is vital that a good working relationships is founded with any prospective partner .This must take place on a business level ,i.e .demonstrating strong business acumen , and at personal level , i.e , relating to your partner and exhibiting the positive traits of trustworthiness and honor
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 holiday 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 responsibility take precedence over business so last minute cancellation are possible when doing business.
If your business dealings in India involved negotiation ,always bear in mind that they can be slow .If trust has not yet been established then concentrate efforts on building a rapport . Decision are always made at the highest level .Indians do not base their business decision solely on statistical ,empirical data and exciting Power Points Presentations. They use intuition , feeling and faith to guide them .Always exercise patient ,show good character and never exhibit frustration or anger .
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
IMPACT OF CULTURE OVER BUSINESS .
- Change in consumer behavior .
- local demand
- Consumer buying decision .
- Brand image .
- Managerial style and management .
- Managerial decision making .
- Nature of business and negotiation.
RELEVANCE OF NISKAM KARMA YOGA IN MANAGEMENT .
Today's business world is dominated by stuff competition and survival in becoming increasingly difficult .This has resulted in negative competition behavior and degeneration in value based business practices where and has become more important than means .The tenets of Niskam Karma Yoga Services as guidelines long lasting success and happiness .The main objectives of Niskam Karma Yoga are perfection inner autonomy work commitment, work is workship for excellence and mind enrichment which plays important role in the success of business .The concept of Niskam Karma is not merely a plan of actions to way to achieve results by stressing more on actions .It is only through work that one can attain his or her goal .
CASE STUDY
Mumbai famous Marine drive glittered as thousand of cars and motorcycles sped homeward. A loudspeaker blared Bollywood films music as through competing with the chaotic din of traffic .Across the road , people scrolled along a promenade separating Marine drive from Arabian Sea , apparently unconcerned by loud noises. Alight , 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 .
Indian economy was booming and held great promise for the future .Several multinational 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 firms .Initial negotiation 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 counter part did not appear to feel it was important to close the deal as soon as possible .They had a long , rambling discussion about the projects objectives and feasibility without making any solid decision .Even the few decision that had been reached were not concrete as approval had to be sought from senior colleague .
As exasperated Mike tried to hasten the process as amny other issue remained to be addressed , but the Indians felt that he was only interested in completing the deal , and not in examining the finer aspect of the venture ,As a result , they began to question his sincerity and ability .His aggressive manner madee 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.
IN TURN ,TRUST ALSO BECAME AS 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.
Nishtha Upmanyu
MBA 2nd Year
SCHOOL OF MANAGEMENT SCIENCES ,LUCKNOW
Nicely defined and elaborated. Specially the way of classification of culture and it's imapct is nicely described.
ReplyDeleteNice... Such informative...
ReplyDeleteGood keep it up
ReplyDeleteThank you sir .
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