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6 Academy of Management Perspectives May

E X C H A N G E

The India Way: Lessons for the U.S.
by Peter Cappelli, Harbir Singh, Jitendra Singh, and Michael Useem

Executive Overview
We describe a distinctive approach to business associated with the major corporations in India and contrast
it with practices in the United States. Specifically, the Indian approach eschews the explicit pursuit of
shareholder value in favor of goals associated with a social mission. These companies make extraordinary
investments in their employees and empower them in decision making. These practices combine with a
distinctively Indian approach to problem solving to create a competitive advantage that has led to
spectacular business growth, not just within India but in international markets as well. A particularly
important lesson for the United States is that the major Indian companies are not succeeding despite the
fact that they are pursuing a social mission and investing in their employees. They are succeeding precisely
because they do so.

T
he contemporary U.S. model for business is in With respect to management practices, we be-
trouble. That model asserts that maximizing lieve there are three additional elements at the
shareholder value is the primary goal of busi- heart of the contemporary U.S. model that are
ness—indeed, some would say the only goal of significantly different than practices elsewhere.
contemporary business. This model is fairly re- The first concerns business strategy. The U.S.
cent, however. Until the early 1980s, the domi- approach focuses attention outside the firm in the
nant model in the United States was the “stake- search for opportunities and, to a lesser extent, in
holder” model, which asserts that business has a related search for competencies through mergers
many groups with an interest or stake in its oper- and acquisitions and joint ventures. The second
ations, and that the interests of these different element focuses on restructuring: When markets
stakeholders have to be balanced. This model was or strategies change, U.S. companies lay off em-
pushed aside by theoretical arguments emanating ployees to cut costs and then hire new ones to
from the field of finance, which then played out in redirect the business toward new markets or to
the sphere of public policy beginning in the 1980s
meet new skill needs. The ability to restructure is
(Epstein, 2005; Williamson, 1993).
seen as a key to competitiveness. Finally, in this
model efforts to harness the motivation and abil-
ities of employees tend to focus mainly at the top,
This article is based on ideas put forth by the authors in their recent
book, The India Way: How India’s Top Business Leaders Are Revolutionizing with financial incentives (via equity) offered to
Management, Harvard Business School Publishing, 2010.

* Peter Cappelli (cappelli@wharton.upenn.edu) is George W. Taylor Professor of Management and Director of the Center for Human
Resources at The Wharton School of the University of Pennsylvania.
Harbir Singh (singhh@wharton.upenn.edu) is the Mack Professor, Professor of Management, Vice Dean for Global Initiatives, and
Co-Director of the Mack Center for Technological Innovation at The Wharton School of the University of Pennsylvania.
Jitendra Singh (singhj@wharton.upenn.edu) is Saul P. Steinberg Professor of Management at The Wharton School of the University of
Pennsylvania.
Mike Useem (useem@wharton.upenn.edu) is the William and Jacalyn Egan Professor, Professor of Management, and Director of the
Center for Leadership and Change Management at The Wharton School of the University of Pennsylvania.

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2010 Cappelli, Singh, Singh, and Useem 7

executives and top managers. They, in turn, figure irregularities is earnings restatements, serious
out how to motivate the rest of the workforce; the accounting errors where companies are forced to
threat of job loss is typically an important part of revise earnings that had previously been pre-
the mix. sented as accurate. These restatements, once
There are three recent and important chal- quite rare, grew by 145% from 1997 to 2001,
lenges to these aspects of the U.S. model. The first and about 10% of all publicly traded companies
is that it has not worked well for employees, restated earnings during that period (General
perhaps not surprisingly given that employees are Accounting Office, 2002). The fact that these
no longer seen as explicit stakeholders whose in- scandals were so common in the United States
terests have to be balanced against those of share- and so much less so in other countries suggests
holders. Except for a brief period of very tight that practices distinctive to the U.S. might be
labor markets at the end of the 1990s, employ- to blame (Coffee, 2005).
ment outcomes have advanced little in a genera- Then there is the 2007 financial meltdown,
tion. Compared to previous decades, jobs are which started on Wall Street and led to a world-
much less secure, wage growth is markedly lower, wide economic decline (see, e.g., Reinhardt &
and at least by some measures, employee attitudes Rogoff, 2008) and then to profound concerns
toward their jobs and their employers are worse. about U.S business practices. At the 2010 meet-
Specifically, evidence suggests that there has ing of the World Economic Forum in Davos,
been a long-term trend toward greater insecu- Switzerland, for example, any whiff of American
rity across most occupations and groups (Kalle- triumphalism from the previous decades had
berg, in press), that even before the 2008 reces- given way to U.S. contrition in the wake of the
sion outcomes for the “middle class” actually great financial crisis of 2008 –2009. Capturing
declined slightly during the economic expan- the essence of the mood, one of the event’s
sion from 2001 through 2007 (Mishel, Bern- leading figures put it bluntly: The calamity was
stein, & Shierholz, 2009), and that outcomes caused by a “failure of leadership” in both fi-
and conditions worsened markedly for those at nancial services and government where the cen-
the bottom of the income and occupational ters were the United States and to a lesser
distribution (Bertrand, Mehta, & Mullainathan, extent the United Kingdom (Useem, 2010).
2008). While interpreting longitudinal studies Third, and for our purposes most important,
of employee attitudes is at best difficult, those there are now alternative business models that
that exist show a downward trend (Franco, Gib- can lay claim to being more successful. Even
bons, & Barrington, 2010). putting aside the financial scandals, the overall
Second, U.S. corporate governance has been U.S. economy and the corporate sector per-
plagued in recent years by a sharp increase in formed poorly this past decade, especially as
malfeasance. There has been an unending (as of compared to international standards. In abso-
this date) stream of corporate financial scandals lute terms, the U.S. now ranks 14th in per
that began in the mid-1990s in which we saw capita gross domestic product (World Bank,
executives manipulating finances to improve 2009), with a growth rate over the 2000s of only
share prices and pad their own pockets. The most about 1.2% per year (U.S. Bureau of Labor
prominent of these were on such a monumental Statistics, 2009). Equity prices for U.S. firms,
scale that they literally brought down compa- the main measure of success in the corporate
nies—Enron, WorldCom, Adelphia, and Global world, lost 3.85% in nominal terms over the
Crossing (Markham, 2006). The list of compa- course of the decade, one of the worst perfor-
nies where financial malfeasance was bad but mances in the industrialized world.
not quite bad enough to force the failure of the There are many alternatives to the U.S. model,
company is much longer: Xerox, Sunbeam, but the one from which U.S. corporations could
Waste Management, Tyco, HealthSouth, and learn the most, in our view, comes from India, the
many more. An objective marker for financial country with the second-fastest growth rates in

When Indian large corporations. 2009a). Infosys. developed than that in most Western nations 2008). 2009b). Foreign institutional and been seen as the future of the U. American Ford Motor Company in 2008 for $2. and busi- 1995–1996 to $63.. including those that had nearly that of China. behind China but ahead of the U.3 Our interest in India is in the practices of its billion (Spector & Bellman. India’s for. India’s GDP has risen by better than pete directly against Western multinationals in 9% per year—several times that of the U. of enterprises and operating well beyond the ment. high-human-capital service businesses such as rising by a factor of 13 from $4. the acquired firms increased both their ef- Figure 1 Rank of the Challenges of Doing Business in India and the U. and aluminum producer Hindalco billion at their bottom in 1991 to more than bought the Canadian aluminum maker Novelis $300 billion at the peak in 2008.S. and Tata Motors acquired the marquee (Hamm & Lakshman.2 billion in a new U. 2007). healthcare. economy: direct investment has grown rapidly as well. Anglo-Dutch Corus Steel in 2007 for $13. able to compete with the best the most favored destinations for direct invest. Reliance Entertainment in 2008 invested infrastructure in India is by all accounts less $1. 2007) and the challenges auto brands Jaguar and Land Rover from the of doing business are great (see Figure 1).S. 2004 to 2008 (Reserve Bank of India. (In. serve Bank of India.8 Academy of Management Perspectives May the world over the past decade.S.S. boundaries of India. 2008). Georgia) the of Indian exports increased by 2. and virtually all sectors. . A host of surveys And Indian companies have become interna- have confirmed that India has become one of tional acquirers. and companies took over publicly traded American hundreds of India’s other top companies have firms. During much of been clambering on to the world stage to com- the 2000s. 2010).2 eign exchange reserves rose from less than $1 billion. Reliance. Tata Steel purchased the dia Brand Equity Foundation. and the value (with executive offices in Atlanta.7 billion in 2007–2008 (Re. ICICI. 2008 Source: World Bank Group (2009). In collaboration with Steven Spielberg’s Dream- And all this occurred despite the fact that the works. film company (Schuker.9 billion in information technology.com.5 times from same year for $6 billion (Economist.S. ness services.

They are much less interested in acquiring competencies through mergers and acquisitions. When we asked Indian business . a trial-and-error approach that is deeply rooted in isons with U. Chen. As earlier work in job design estab- judiciary. as opposed to relying the CEO model. And Indian executives are in. mizing shareholder value. Indeed. We asked what qualities these executives saw as most vital to We next delve deeper into each of these four their success.S. “The In. more so than U. Rajah. these practices come together to create of management in the United States. An indication of the fact distinctive path can. But they have blazed their own Second. a culture of scarcity and constraints. seeing meaning in work is a leaders are well aware of the U.S. Network.S. Dominguez. firms do. volved interviews with the leaders of the 100 Third. we believe. Mohan. the persistence of engaged employees largest companies in India as well as other data contributes to a uniquely Indian approach to from them. banging away at hard problems with an inductive process that was aided by compar. 2008). We compared the responses to those in a series of surveys of U. & fundamental ways (see also. We asked how they recruited talent and managed teams. a unique approach to business strategy. carefully. one that is dia way.” convergence and divergence with Western practices. Relatively few of these companies use meet their long-term needs. Indian companies see their most impor- seeking talent for Western companies (Yee. not maxi- 2007). and open lished and more recent studies in positive capital and labor markets—and Indian business psychology affirm. joint ventures.” as we see it.S.S. They invest in was largely able to sidestep the 2007 financial the capabilities of their employees. & Lahiri. against that goal. and most of the compar. At 71 of them. business model in four nies’ value chains. perience each author has with different aspects Fourth.S. and Useem 9 ficiency and profitability (Chari. India ment of human capital seriously. We also gathered survey data from the heads of HR at these Social Mission Trumps Shareholder Value C companies. two leaders. firms. creasingly on the short lists of corporate recruiters First. companies are expected to say that maximizing ative data on HR practices come from surveys conducted by the Society for shareholder value is their most important pri- Human Resources Management. transcend the that they take these issues seriously is that they milieu from which it arose and offer lessons for measure and manage almost every aspect of companies elsewhere. Though rooted in the traditions and engage employees with empowerment and and times of the subcontinent. CEOs hief executives in publicly held American come from a New York Stock Exchange survey. human resource practices and effectiveness Our two-year study of Indian business in. And they are much more likely to stick with work arranged interviews with the leaders of India’s largest publicly listed companies by market capitalization. Singh. and other powerful motivator. The net. the top executive is called the “managing director. We conducted structured interviews traditional customers and search for better ways to with 105 leaders from 98 companies. a strong and independent ployees.” Leadership is shared at seven of them.1 We reached our conclusions about problem solving that we describe with the Hindi the attributes of the Indian approach through term jugaad. An advantage of this approach United States—including democratic principles for corporate performance is that it greatly en- and the associated arrangements of civil society hances the ability to motivate and engage em- such as a free press. promote in- crisis that brought most Western economies to ternally rather than relying on outside hiring.2010 Cappelli. as is the case in the India shares a great many traits with the United States. CEOs and HR executives. a highly diverse population. so there we interviewed on market research to find new opportunities. Singh. and where they perceived aspects of the “India Way. the value of their similar arrangements. Spencer. their knees. For example. or other externally 1 Our project began with the National Human Resource Development oriented approaches as compared to U. and what legacies they hoped to leave behind.S. 2009). tant goal as serving a social mission. arguably the most influential business group in India. everything they do is justified about the practices in these companies. how they worked with their boards. We supplemented these data with infor- mation from previous studies and descriptive information and case studies ority. is characterized by and internal and rests on innovations in the compa- distinct from the U. Western models. practices and the extensive ex. The most important data on U. Indian companies take the manage- path in the area of business.

Sarkar & Sarkar. Guide or teacher for employees dian boards has been questioned. “tunneling” (Bertrand et al. for corporate control than did their U. & pendix B of The India Way. Chief input for business strategy particular have been associated with lower perfor- 2. cern. ployees and the community) Sarkar. holder monitoring or rules-based role.g. Keeper of organizational culture mance (Ghosh. in companies where concen- holder. Civic leadership within the business commu. Yadav. 2008). explained. nity Indian executives generally placed less weight on 7. 2008). Representative of owner and investor interests rather than independence per se seems to be most 5. Megginson. Reed & Mukherjee. but Indian ership structure of its firms. management to create and market new products 2009). Indian boards as a rule monitor finances Corporate Governance less than American ones because financial perfor- The single most distinctive feature of corporate mance is less a concern for these corporations. working with ness out to encompass the entire nation (Singh. 2005. stock exchanges. We also asked concentrated in the promoter family’s holdings. with many firms op- erating under the umbrella of business groups and 2 All quotes in the article unless indicated otherwise are from inter- a significant number of infrastructure firms owned views with the authors. Details about the interviews are outlined in Ap- by the government (Chakrabarti. As governance across the Indian companies we stud. but the ownership of many remained below the interests of employees. “The Tata Group is less rules- of the firm’s diverse stakeholders. ship role with company executives. Representative of other stakeholders (e. all the groups based and more values-based. 2006). licly traded. 2000). believed you really cannot frame rules for corpo- What was especially striking was the emphasis on rate governance. Board structure also varies across Indian Business Leader Priorities companies (Tuteja.S. would see with the American approach. No matter the ownership or board structure.. a process known as U. and their ranking of the companies. trated majority ownership and holding company tives were major holders of their company shares. correlated with corporate performance (Sarkar. for example. The independence of In- 3. Protect- tially from that of the United States in the own.S. the board’s monitoring function than was com- nity mon in the West. 2004). which dian boardrooms take more of a strategic partner- extended from the immediate vicinity of the busi. structures create incentives to shift assets inappro- and in some cases their companies are listed on priately across companies.10 Academy of Management Perspectives May leaders to rank their priorities (see list below). 2006). parts (Morck & Steier. counter- nies. ing shareholder value is not ignored. No Indian business leaders This is not to say that there are no problems in our conversations placed shareholder value as with governance in Indian firms. Muthuraman. . at least in part because Indian firms and their directors faced a less active market Rank ordering from the top executives of 98 compa.”2 Nonexecutive directors in In- the interests of the broader community. and comparatively less of a share- models from the United States. but board quality 4. The firms we examined were pub- they placed maximizing shareholder value fourth. and larger boards in 1. Civic leadership outside the business commu. & Sen. the top human resource executives in the same The priority of interests noted in the list above did companies to answer the same question about not vary noticeably with the ownership structure their chief executives’ priorities. 6. as one Corporate governance in India differs substan. which is notable given that many execu. however.. em. 2002. the managing director of Tata ied was the determination to balance the interests Steel. was virtually identical. We have always that have a claim on what the company does. B. The rights of the top company priority or advanced the view minority shareholders have been a special con- that investors were the most important stake. reminiscent of the pre-1980s stakeholder and services.

the Indian region scored the . dard notions of corporate social responsibility as companies that operate in international markets self-regulation and a concern about doing good and every other dimension we examined. ech. Labs guaranteed to meet the healthcare needs of oed the views of the companies we interviewed in 40. The Godrej Group has Mission-Driven constructed schools. into the hands of the hundreds of millions of people in India who otherwise had no way to The Motivation for Mission communicate with each other. but the efforts of these com- social responsibility). rolled out a nationwide curriculum “Envisioning a larger societal purpose has always for school-age students in part to improve its fu- been a hallmark of ITC. Dr. employee welfare as a drag on shareholder value pany we saw articulated a clear social mission for than an asset for company growth. doubt the social needs are greater in India than in 2008. however. But making money is never run by non-Hindus as well. a leading conglomerate. Golden Tomorrow). the vanaprastha around the world. and engaged in hundreds of conflict between the twin goals of shareholder other projects. 2010. especially mission of the pharmaceutical and healthcare beyond one’s material needs. of the profits of the Tata Group companies. The social mission for panies to address them are nevertheless there for Bharti Airtel. medical clinics. separate act of charity. Hindustan Unilever’s Project ashrama. and Useem 11 directors incorporate the concerns of a range of These companies also put their money where constituencies—just as Indian executives do—in their mouth is with respect to mission. and living Central to the distinctiveness of the Indian model facilities for employees on a massive scale un- is the sense of mission. Mission Sunehra Kal (the (ITC. Singh. was to get cell phones all to see.S. The focus on mission cuts across com- In that sense. search on leadership. that sense of Virtually every major company has similar efforts mission extends to helping India and its citizens. which em. Two thirds reaching board decisions in partnership with man. job opportu- Indian companies describe their social mission nities for women. The third of medical needs of the poor in India as well as the four stages of Hindu life. go to its charitable foundations and then back into Indian society. help for them to band communities. for a comparative discussion of corporate most other countries. example. Typically. In comparative re- presented as the primary objective. Reddy’s Labs is to address the unmet the driver for the sense of mission. and expansion of education. Reddy’s their business. focuses on the search for meaning. under way. The difference is that together to negotiate with suppliers. 2004). panies that are family or “promoter” controlled. for agement.000 children. competitive business world. The company sees no ture applicant pool. and many do. all in the same year. companies talk about doing good in their tals to advise farmers. and it neatly coin- Some of these approaches build on the “fortune at cides with the typical age (over 50) of senior the bottom of the pyramid” approach. ITC developed value enhancement and societal value creation” a rural initiative.2010 Cappelli. p. 1). is no doubt part of company Dr. ITC. It is worth noting. business leaders. that includes knowledge por- U. the Tata Nano The priority and value placed in India on service story had a similar goal with respect to providing to others and the widely held belief that one’s goal low-cost transportation (see below). Singh. Every com. they act quite differently from stan. not just a involving five million people (Lakshman. Infosys has built and staffed en- this statement describing the company’s purpose: tire hospitals. The social in life should extend beyond oneself. a social goal for the busi. known among American companies. publicly as the purpose of the business. that phasizes business opportunities among the poor the concern about mission extends to companies (Prahalad. and a gradual withdrawal from the sales force in the poorest regions of the country. No while making money (see Williams and Aguilera. 2009). help- Shakti uses microfinance principles to create a ing others. for example. where direc- ness that goes beyond making money and helps tors and executives are far more likely to see employees see a purpose in their work.

2008). to Indian society. that do good things for the community (Lev. connection individuals see between the tasks they rounded by so much poverty. for example. told us that Petrovits. A. compassionate. We know opment of the country. and doing good things for people when they to pay the average employee enough in share- have no money and are not customers can re. The focus on help- panies as well. cation systems have forced companies to develop and social impact more generally can lead to per- healthcare and classes for their own talent. not just by their employees. 2008). they are encircled by throngs of destitute people. Muthuraman. and generous (Javidan.” he ac. for the contributions their companies have made tors and Farm Equipment maintains a first-world. At least some substantial share of cus- And some part of explanation for the mission tomers would rather do business with companies fits this altruistic norm. with the talent (Grant. where a company’s sibility is one of the main factors in retaining business goal is seen as bettering society. Mallika Srinivasan. it is extremely expensive ories. Go- almost everywhere companies operate in India palakrishnan. and government intervention is the people in India. Trac. based incentives to get him or her to focus on dound to a company’s advantage when those in. 2006). shareholder value. Acting responsibly may U. formance outcomes that are orders of magnitude But social investment pays off for these com. pay to shareholder value. practices. making money for shareholders as a goal that is Mission as a business goal also affects relation. Contrast this Indian model. your products. Like many other big companies.S. “Our his. approach is at a sizable disadvan- clearance in India can depend on being known for tage because it is difficult for most people to see public responsibility. 1975). powerful when they contribute to helping others. & House. greater (Grant. . ing others very clear. E. forward. “We from the original work on job design that the are all seeing these islands of prosperity sur. the managing ing fellow Indians as the social mission makes this director of Tata Steel. tor of Tractors and Farm Equipment. A recent study of employee turnover in India found. “Corporate social responsibility and good Most important.S. Individuals have long mem. powerful way to motivate employees. & Radhakrishnan. personally meaningful. they do business—witness the current rush of ture manifesting service to others as a source of companies touting their “green” environmental motivation.. Model that the perception of a company’s social respon. How many companies anywhere campus-like facility within sight of third-world could make that claim? slums. That pref. inadequate. efforts to aid the broader connection between the work one does and help- community create a reputational asset. model. M. The U. There is every reason to tory in corporate social responsibility. 2010).S. We also know that consumers care Dorfman. For B. Srinivasan organization is an important source of positive explained that her company feels duty bound to step employee outcomes (Hackman & Oldham. While it is possible to tie ships with customers. Some of the social engagement is also More recent work shows that the effects of task driven by necessity. The rapid growth of the Indian significance on job performance are much more market and the inadequate scale of health and edu. perform and the overall product or outcome of the ment we heard from many executives. about the values of the companies with which erence fit nicely with the aspect of national cul. “has enhanced the group brand.12 Academy of Management Perspectives May highest of any area in desiring leaders who were dividuals do have money and are in the market for humane. where we try to motivate employees also pay off especially in dealing with regulators: around the corporate goal of making shareholders Obtaining industrial licenses and environmental rich. executive director of Tata Sons. R. said that he believed the Tata Group was loved by needs are stark. Social Mission Versus the U.” Srinivasan told us. direc.” Echoing a senti. retaining employees at Tata Steel. believe it leads to the same increases in perfor- knowledged. using a social mission is a governance are related to the state of the devel.” mance in these companies as research studies have That has proved invaluable for recruiting and documented elsewhere.. De Luque.

and unemploy. the practices that support this approach.S. but when use “transactional leadership” styles that tie per- Lehman was on the verge of bankruptcy in Sep. higher. This could be seen in ican counterparts. built employee commitment by creat- and Warren Buffet stand out so prominently for ing a sense of reciprocity with the workforce. Lehman Indian executives create a significantly greater failed. formance to rewards than were our Indian execu- tember of the same year. the stock market plunged. 2004). families and implicitly asking employees to look rably stood forward. sense of empowerment among employees. their interest in improving society is because so looking after their interests and those of their few other American business leaders have compa. Bass & Avolio. Not surpris. after the firm’s interests in return. we found that the firm at the behest of the U. human resource practices to a similar survey of . motivation. 2010. scoring tutions such as AIG and Merrill Lynch buckled.S. intellectual stim- tives to concentrate on the interests of their own ulation. ployees in a way that often conflicted with histor- ences in leadership style. Comparisons with a different study of 56 to help resolve a far bigger threat to the system. 2003. Avolio. the connection between employee competencies ing mission-driven organizations—the executives and business strategies. We asked finding the right people to hire. no banks stepped forward tives. are willing not only to articulate societal commitment into action. rewards based on performance— executives were willing to take measures beyond but less prone to manage by exception or look for their own company’s self-interest that might have mistakes. Ramirez. 2001). financial crisis. When Bear Stearns neared from a sample of 48 chief executives of U. scored low on passive and avoidance practices. Indian executives. one bank acquired the tune 500 companies. House. giving them the freedom used assessment of leadership in the United to plunge into problems they encountered and States. where virtually no rewards—that is. Sorkin. Business leaders whose executives we interviewed to assess the directed their attention to building organizational leadership style of their top bosses. We used the most widely ical and cultural norms. culture. financial insti. the Multifactor Leadership Questionnaire create their own solutions.2010 Cappelli. developing them the heads of human resources at the companies internally. are quick to use contingent the recent U. such as maniam. Then they devoted a (MLQ). which shows ingly given the picture of Indian business leader. & Sivasubra. Puranam. Shareholder capitalism had pre- dictably led most bankers to focus entirely on their Taking Human Capital Seriously B own immediate welfare. Indian leaders. like their Amer- of the community or society. to examine the leadership styles of these great deal of executive attention and resources to Indian leaders (Antonakis. for instance. On the enterprise and devote less attention to the welfare transactional side. we collective intervention. idealized influence. employees how to behave. by con. 2009). the business leaders interests but to act on them. and improving morale. and to demonstrating ship already described—actively engaged in build. helped avert the 2007 financial meltdown and When we compared these results with those subsequent recession. Indian companies. and Useem 13 The overwhelming focus on creating share. Treasury to avoid American leaders were significantly more likely to broader disruption to the economy. however. To translate trast. Figure 2 compares the results of our survey of Nor were we surprised to see that Indian business these top 100 Indian companies concerning their leaders ranked highest in practices that fall gen. their number-two priority. For- collapse in March 2008. erally under “transformational style”: inspirational holder value in the United States has led execu. Singh. Singh. American chief executives also suggested that With narrow self-interest prevailing. went to extraordinary lengths to empower em- The focus on mission may also relate to differ. The fact that Bill Gates found. even at a moment when eyond the sense of mission lies the actual man- their common interest would have pointed to agement of employees. on the “intellectual stimula- the economy went into reverse. and individual consideration. & ment soared around the world (Paulson. tion” category (Waldman.S.

MindTree Consulting. compared with only 26% in the U. combines classroom train- quently measured the development of skills of ing.S. and Society for Human Resource Management. versus 28% in the Vitton. and peer-based learning commu- employees..S. these leading firms seem dedicated at Pantaloon. seven-month training program for science gradu- The biggest differences in measurement had to do with investments in the development of em. 65% fre.14 Academy of Management Perspectives May Figure 2 Company Use of Human Resource Metrics Sources: Survey of Indian companies. Some companies do even more: Companies in the U. Despite high turnover in the red-hot Indian New recruits for clerks and other front-line jobs labor market. U. 45% nities. a leading retailer. & Gereffi. dence at a company training center followed by . of training. U. Even relatively low-skill industries such as frequently tracked the ability to promote from business process outsourcing and call centers pro- within through succession. ates being converted into business consultant ployees: 62% of the Indian firms frequently roles.S. a mas- least taken more seriously and are arguably more sive investment given that employees are paid sophisticated than those in the United States.S.S. clearly know how to track Tata Consultancy Services. mentoring. firms. during that time. and everyone in the company gets 14 days of tracked progress in overall talent management.. One study of prac- difficult to manage and take seriously issues that tices in India found that the IT industry provides are not measured. formal training each year.S. 2006. receive six weeks to policies of promotion from within (SHRM In. another IT company. and 46% frequently used metrics to assess companies require about 20 days (Wadhwa. 2008). for example. versus only 21% in the U. versus 21% in the vide something like 30 days of training. including five and a half days in resi- dia. especially their new hires.. has a these outcomes. and retail U. Given that it is ees. They just choose not to. companies.S. these results are consistent with new hires with more than 60 days of formal train- the notion that HR functions in India were at ing—about 12 weeks of classroom training. 2008). de the development of leaders. The Indian firms were more Training likely to measure and track all human resource They are also investing heavily in their employ- outcomes than were U.

but the available sta. a stunning difference. through a one-year our culture. store staff receive a week of five biggest IT employers in the U. the Indian cor- tion technology industry found that the most porations also take pains to protect those invest- common mention of any human resource is. including those delivered. and Useem 15 five weeks of on-the-job training directed by local and develop employees. out- with two years or less of tenure—was about 24 comes.. The closest state- Training is one way the company develops a shop.” we “are also very proud of our people.S. In fact. The outcome American executives reported most frequently as Employee Appreciation the purpose of employee learning was to better exe- A different measure of the priority that India Way cute existing strategies: “Learning” seemed more like companies place on their employees comes from training. experienced hires get training. With . the Amer- hours per year in those first two years (U. A meager 4% of their American training of any kind from their employer in the counterparts in training and learning roles said the first two years of employment. factors that ployees is that they see employees as key to building are often used to explain the lack of training in the organizational capabilities that drive competi- the U. both “the visual and aesthetic side and the logical.S.2010 Cappelli. Reddy’s Labo. “While we’re proud of the financial results we ratories puts all its outside hires. pany” (Chambers. study of the annual reports in the Indian informa. Bureau ican executives rarely saw learning as serving strate- of Labor Statistics. Singh. nity. brief discussion of how Infosys trains its new re- functional project presented to the top executives. Four of five of the top Indian human re- Systematic data on training among U. the leading U. They contributions or sometimes for their life experi. Kishore Biyani. could not in good conscience do this to their loyal ences. 2008). Oracle. typically for their special family members who would suffer alongside. chairman of sue—so common. with substantial experience. new training each year (Wadhwa et al. source executives reported that building capabilities panies is hard to come by.” After that.) Again. capability building amount of training received for new hires—those ranked next to the bottom on the list of U. outside of their work tasks (Murthy & Abey- gram in the organization which everyone has to go sekera. decided against it in large measure because they ond most common HR mention was to highlight knew that for every employee laid off. and the way Cisco operates as a com- training program that includes ten weeks of as. that it happened on the Mahindra Group.S. So they put their otherwise redundant tions of employee capabilities and efforts to train employees to work in the company gardens. information-technology compa- cally trains people to use both sides of the brain. Even then it was embraced by only 14% of munity about their operations. That was followed in frequency by men. Singh. 2007). called ‘design management. This is the case for the 2007 annual reports for the rational. An interesting respondents. in fact.S. 1995). cruits. The sec.’ which basi. while the average same thing (see Figure 3). explains that much of their training employees were making to the broader commu- goes beyond practical job skills: “We run a pro. ing tasks. employees. In general. gic-level goals for the organization. and Cisco.S. Much like Japanese companies. (See Appendix A for a signments abroad as well as a culminating cross. HP. for the organization was an important purpose for tistics suggest that 23% of new hires received no employee learning. ments in employees. designed to improve performance on exist- what they tell shareholders and the broader com. Pantaloon’s chief common mention was to discuss contributions executive. these investments occur in the context of The reason Indian companies invest in their em- tight labor markets and high turnover. And the fourth most store managers.” nies contained nary a mention of the employees.S. the annual reports of through. Even sentence in Cisco’s shareholder letter that says. com. 2007). there were five individual employees. Dr. By contrast. ment to the India model is a reasonably generic ping experience more suited to customers.: IBM. Keshub Mahindra. told us that they contem- average more than once in each report—was to plated laying off workers in the recent downturn but thank employees for their contributions. tiveness. Microsoft.

it is otherwise extremely employee-friendly. 2007). While the company is with the company’s leadership where all questions known for being cheap in the area of compensa- are tackled on the spot. But the most un. same travel policies (coach class). can be found in As an example of empowerment. Having motivated and skilled employees might The high-water mark for a culture of openness not matter if they were not given the opportunity and flat hierarchy probably goes to the Sasken to use those skills. Corporation. some satisfaction. The software company Mind. 2006. and Petals. from entry-level to feedback to executives. same cri- the competitive environment and the state of the teria for compensation (no separate executive company.16 Academy of Management Perspectives May Figure 3 How the Learning Function Provides Strategic Value to the Organization Sources: Survey of Indian Companies. All Minds Meet. are treated identically—same of- monthly updates called Snapshots that describe fices. with policies that include extensive programs for ging site (MindTree. well-known for his motto of “employee first. which Rajiv Mody started in Silicon Tree has adopted a host of innovative methods for Valley and moved back to his home in Bangalore fostering ideas and execution. The company’s “single-status” policy entire menu of ways for the employees to give means that all employees. Among the arrangements: Mody himself. and the lessons the tomer second. has become its Web site accounts of ethical failures and vio. including a six-week sabbatical after four usual aspect of the MindTree approach. the company encour- ages others to admit theirs and to follow its lead in Employee Empowerment and Transparency making changes. cus- lations of company policies. you are willing to be accountable to your employ- . where grievances are addressed. transparency and role modeling.” The point. tion. 2010a). espe- has some of the finest gardens in India! cially those made by leaders. MindTree posts on yar. a regular open house compensation policies). People Net intranet. he added that the company now The idea is that by acknowledging mistakes. Vineet Na- the company’s integrity policy. beginning with an in 1991. Nayar said. is that “if firm has learned from each (MindTree. both in years of employment (Express Computer. and American Society for Training and Development. the CEO of HCL Technologies. leaves. 2010b). a blog.

” The HCL. and therefore the CEO’s office will in their work that goes beyond their immediate become irrelevant. and when ability to make do and improvise with what little asked what he would like to be his greatest legacy was available created the necessity for jugaad. a micro- “my boss sucks. is or fixed.” His public blogs on the com. beyond the achievements of the firm pany website include a 2008 post titled “Destroy. the good widespread purchasing power. self-interest.” An even more unusual tactic is to finance organization. ranged from “I have a problem with my bonus” to Vijay Mahajan. he has pushed for ever “smaller units of sonal transparency at the top serves to reduce the decision makers for faster speed and higher accu. an ability most senior company managers worldwide. even the very personal. One can use it in a crowded bus. where the top is accountable to for the organization helps employees see a purpose the bottom. opportunity to make use of that motivation. to the company in five years. He makes it a personal goal to shake the tough. therefore the customer likes us because of trans. and the bad. In these modern have destroyed the office of the CEO. per- sions would be made at the points where the sisting until they find creative solutions and work- decisions should be made”—that is. and Useem 17 ees.500 his explanation of the power of jugaad. It is used in a wide transparent than anybody else in our industry and range of situations. unique cultural context of learning to work in a ture. Jugaad and Adaptability T To make this happen. communicating this vision often using trial and error methods. 2006). in spite of lack of re- ing the chief executive himself. he said he sought so much “transparency” plays out through motivated and committed em- and “empowerment” in the company that “deci. resource-constrained country where the hand of every employee every year. we get a sense of how these accountable to our employees.2010 Cappelli. HCL seeks to invert the organizational pyramid When we combine jugaad with the unique Indian by making. not weary resignation. electronic “tickets” on what needs to be changed Creative adaptation. including Nayar’s by” in an economy that was until the late 1990s own.” It constitutes a cornerstone of Indian the option of evaluating not just their boss but enterprise. The for the company and managing the corporate cul. having a sense of mission and social goal would be inverted. As he told us. company’s employees. then the way the employee behaves with the parency. where the arounds. chief executive of Basix.” To more broadly acceptable. Singh. is posted on an intranet site within several oppressed by controls and stymied by a lack of weeks for all employees to see—all of it. and the “spirit of jugaad has also their boss’s boss and three other managers. argued for many in offering require 360-degree feedback reports on the 1. The “organization Again. employees like us because there are no customer is with a high degree of ownership. ployees hammering away at tough problems. usually with a plaintive smile. sense of vertical separation (Som. “command and control” idea of performance improvement has become is giving way to “collaborative management. enabled the Indian businessman to survive and get And the 360-degree feedback. “our managers approach to strategy. where three .” One tactic for firms are competing and winning on the interna- doing so is to encourage employees to submit tional stage. which have central to the Indian approach to management. What makes them willing to do that? company meets the client. though. Employees have sources. “our competitive The English word adjust is also spoken in var- differentiation should be the fact that we are more ious local accents in India. 2008). So we built transparency. in his view.” At hidden secrets. racy in decisions” to provide HCL’s customers with more timely and customized service. Nayar responded Keeping old equipment running with improvised without missing a beat: “They would say that I spare parts is the classic example. “to manage somehow. and the heightened per- that end. and its owners. includ. he spends as much as he Hindi term jugaad describes the ability to half his time in town hall meetings with the improvise and find a way around problems. the jugaad phenomenon explain. And empowerment provides the ing the office of the CEO” (Nayar. Singh. as Vineet Nayar told us. Nayar contended.” Pressed to corporations.

with the cost of a DVD-player option in luxury hospital.000 rupees per car. achieving outcomes that cycle.500 at the time. Tata set idea of dispersing wealth” (Surender & Bose. a willingness to challenge conventional wis- they meet government officials.” said Tata Motors executive and services. environment. But realizing that India’s mass market hun. tors has built up a position. power brakes. “Tata Mo- ers required an extensive application of jugaad. Here as well. . With all that in mind.S. dom. Strategically were taken for granted by other carmakers. to rural customers. changing the way sur- world’s most inexpensive car when unveiled in gery is performed. Termed “open distribution in- ness goal involved a social mission: creating trans. the busi. with outcomes as good and at about Western autos (Kurczewski. strategy of focusing the energy and attention of ratories in other countries. the pint-sized car built by Tata Mo. director for finance Praveen Kadle. Meeting this create not only the world’s least expensive auto- extraordinary challenge for its traditional custom. So it set about learning target price point (ICFAI. and so he decided to make it the effectively automate them. about cannot afford it. now it’s just 24 The hospital group Narayana Hrudayalaya of- or 18 months. India’s largest maker of automobiles and an important innovation in the value chain: Kits trucks. and radios.S. 2008). They designed everything in the Nano from scratch. the method could portation for the poorest consumers.” said Gopalakrishnan. top managers to work through the many con- ation. obviously for a consider. re. it is used by businessmen when ity. out to engineer an automobile whose price would 2008. is a efit of the research and development that one large part of what the India Way is all about: a might find in universities and government labo. Tata Motors fers a similar story of jugaad and strategy. . enough for the masses to afford (a challenge yet to cuff estimate by Ratan Tata. p. the country that would produce the car .S. to speed up the myriad permissions still straints and challenges of operating in the Indian required to do anything in India. which generated be mastered in the West) was to standardize and huge attention. “We can’t have 48 or 36 months to bring break through traditional standards of products out the new products. That figure was not generated only way to provide quality operations cheap by market research. without the ben.18 Academy of Management Perspectives May people are already seated on a seat for two.” And that. where Japanese quality and prices domi. 75% below existing auto shops or new garages created to cater the cheapest competitor. includ- Consider also the better known example of the ing air conditioning. in essence. to compete with us. seeking to “ad. novation” by Business Week. It achieved one-tenth the cost as the best U. mobile but also its largest selling one. It now performs more than January 2008. Tata talked about “creating entrepreneurs across nated. It was swiftly designed the Nano from a clean sheet of founded by Devi Shetty to help the thousands of paper to meet what appeared to be an impossibly Indian children who need cardiac surgery and low price point: 100. Tata Nano. The long-run plan for the Nano also includes tors. profit margins are slightly above those of its U. its sticker price was to be on par twice as many cardiac surgeries as the biggest U. Ratan market. Tata even anticipated providing the not just be marginally lower than the lowest end tools for local mechanics to assemble the car in existing products but radically lower. Presented as the to perform them at scale. 1). . Conventional market strategy would have of components are to be sold en masse for assem- suggested staying away from the low end of the bly and distribution by local entrepreneurs. It came about as an off-the. provider. and a single-minded determination by Tata’s just” various regulations. . my gered for even lower cost transportation. Its this price point not through technological inno. 2009). vation but by a completely new approach that questing them to “adjust” to accommodate a closely resembles the jugaad concept: deep frugal- fourth person. Or. It also knew that the company managers on the hard and persistent Nano would have to be developed on a shorter needs of their customers. Tata Motors knew that it would have to do the “where international car companies are not able engineering largely on its own. The group discovered that the $2. and they deleted features that Doing More With Less.

The obvious conclusion: ing interventions and inputs from the CEOs into Strategy in these companies comes from internal the strategies of various businesses. Table the “chief input to strategy” as their most impor. egies developed in various units. ple that help drive their strategies. and in supported by a set of attributes such as organiza- rural India only a tenth of that. The source of the distinctiveness of Other differences related to strategy concern the India Way and the ability to focus the business the identification of opportunities in the market.2010 Cappelli.S. far less costly avenues for reaching the organized into strategic business units each re- poor. new and better ideas. managers then develop. were traced to the positive attitudes and flexibility in unit-level practices while incorporat- behaviors of employees. use process with market research to identify new cus- social mission to create motivation. Their view of strategy is nies— described the source of comparative advan. And these outcomes. and Useem 19 peers. managing the organizational Indian business leaders—and the industry analysts culture. corporations are alternative. ensuring that West. egy means building these capabilities and stressing ducted at one-tenth the cost of banking in the alignment within the organization.” A scaled-down urban chitecture and culture and systems for investing in branch model was still prohibitively expensive for and engaging their employees. India was apt to be no more than $1.V.000. ranging from nonprofit microfinance groups sponsible for its own strategy.” being the “chief input into the strategy process” ICICI chief executive K. are much more likely to stick with their through. companies. as well as the opportunity infrastructure of their organizations. an ap- tage as coming from deep inside the company. The India Way companies. incentive structures.S. so Kamath and his team turned to While most mainstream U. “That’s means that the CEOs monitor and maintain the where the challenge is. The focus for viewed claimed that his company succeeded them is less on the analytics behind the strategies based on his own cleverness or even on the and more on creating the context: designing the efforts of a top team. the firms’ ar- and the excitement. including one not far from Miami. the leaders own a significant part of the strategy function for the entire company. That meant op. empower tomers and opportunities that offer superior profit them. proach to business that they can encode into the from motivated employees. companies are inclined to begin the strategy management of people: They invest in them. and in that sense the fact that India. value to this market at an extremely low cost. Whereas a typical savings account in the sources of strategy among the Indian corporations West might be $10. Kamath said. and in turn. Almost without exception. In this context. Strategy is often seen as a staff function utives in India and their U. and rural banking at one-hundredth. a typical one in urban we examined are deeply rooted within the firms. 1 shows comparative data on how these top exec- tant task. on solving hard problems rests heavily on the U. therefore as a set of enduring principles. shaping the strategies that and business journalists who follow their compa. “We many separate practices are consistent with one need to be able to conceptualize how to deliver another and mutually reinforcing. tional culture and practices around managing peo- erating expenses had to be pared down propor. But it makes perfect sense given that the banking.S. As noted earlier. counterparts have . Florida the number-one priority for the Indian CEOs was (Narayana Hrudayalaya Hospitals. rural banking. in these Indian to using local fertilizer distributors as agents. This ap- and superior execution. firms. and it is now planning hospitals outside in U. traditional customers and take on the long-term. in con- hammer away at hard problems until they break trast. Singh. firms’ responses to market opportunities.S. our interviewees saw being persistent challenges those customers face. to be the main input into strategy may seem like ICICI Bank did something similar for rural a puzzle. setting Strategy From Within the agenda and taking a visible role in the strat- N one of the Indian business leaders we inter.000. Singh. capabilities. in proach to strategy allows for improvisation and turn. Building strat- tionately: Urban banking in India had to be con. and tap into the cultural aspect of jugaad to opportunities. 2010).

S. is about an indication of priorities.) less characterize key elements of strategy. [and] theme present throughout is an emphasis on ca- adaptability to change” (Baranowska. Omitted column is “no change. 2007). then. India Leadership Tasks % More Time % Less Time % More Time % Less Time 1. speed.S. corpo- ment. and their nized the need for capability development as the increased focus was all on factors outside the market opened up postreform. also helps these We also asked Indian business leaders to iden. and human resource issues. to a far greater extent than we see in U. flexibility. Indian leaders report the biggest declines architecture of the firm. giving more autonomy to lower manage. There is always the risk that critical challenges from among several dozen. companies find opportunities where no one else was tify the capacities that have been most critical to looking. Day-to-day management 28 27 24 55 7. Stock Exchange (2006) survey. and doing more with three years. figures from N. per. HUL challenged sonal qualities.S. For them.20 Academy of Management Perspectives May Table 1 How Indian and American Business Leaders Have Changed Their Allocation of Time Over the Past Three Years (Items in bold: More than half of the executives affirmed) U. strategies developed in the units reporting to them ment. Customer relations 22 27 62 7 U. Beyond setting the firm. Hindustan Unilever’s (HUL) development the leadership of the firm over the past five years. CEOs recog- of largest net decline for U.Y. Shareholder relations 58 4 41 31 4. making sure those strategies remain con- countries paradoxically report they were devoting sistent with the core business principles. flexibility. Adapta- more time to just about every priority in the past tion. When asked to identify their most zation of resources. Regulatory/compliance issues 98 2 41 24 2. especially social mission. Customer relationships were the area will compete in the marketplace. Strategy in the Indian context. quality could be compromised in this search for ican executives ranked “consistent execution of ever more creative ways of competing.” changed their allocation of time in recent years. CEOs. Reporting to the board 72 1 41 17 3. Their pability development and on resilience in a rap- Indian counterparts reversed the ranking. But a strategy” considerably above “speed. CEOs provide input into in their time in the area of day-to-day manage. ness principles by which the firm or business group tionships. Amer. possible to address a new market. Setting strategy 47 9 93 0 5. Indian leaders saw the the CEO’s involvement in setting the core busi- biggest increases in strategy and in customer rela. of a system for selling products through rural self- They placed their greatest stress on four capacities: help groups illustrates how new structures made it visioning. and adaptability were at the heart The process of driving strategy through core of strategy and the greater priority. ers. Media relations 31 11 31 17 6. improvisation (jugaad). architecture and culture of the firm. (Careful readers will see that leaders in both rations. Fostering workplace diversity 26 13 21 41 8. Although a subsidiary of a multinational con- . idly changing environment. This is head-on the assumption that standardized consumer consistent with the notion that developing enduring products could not be sold to lower income consum- capabilities is the key to success. principles.S. The An even more telling discrepancy emerged in a Tata Nano example and others above illustrate 2007 Conference Board survey of chief executives this adaptability and creative extension and utili- worldwide.

Shakti creates jobs for the rural women. more than half of scratch or. They for retail in India is that the rural market is scat. views on Indian culture as they relate to business. were by and large entrepreneurs who started from tered in some 600. newspapers. reshape the drawing board. especially Hindi culture. Some parts .S. they created responded to the remarkably different ment). models that use standard marketing and supply. for other countries in part because it addresses the As most of the women in the self-help groups have intense pressures for greater social responsibility no prior sales or business experience. but the set of prac- markets.000 leaders are saints. While there are bits and pieces of the India to the community. They reached the new market U. we self-help groups. the attributes that distinguish them from other ture. The self-help-group entrepreneurs work as advantage that appears to be sustainable in the social influencers. and Gamble and local competitors in traditional The India Way is unique. e understand that not all Indian business the company plans to have more than 100. HUL realized that opening new markets tices that comprise it are not necessarily depen- was a way to create new opportunities. there are no apparent operate as mutual thrift societies.) mostly those targeted at women. the complete package of the application of Indian cultural norms or business India Way could be found nowhere else. typically might over time evolve into something closer to comprise 10 to 15 women from a single village. set might be tempting to think that Indian practices up by nongovernmental organizations.S. in the case of existing companies such which were not effectively connected to urban as the Bank of Baroda. These groups. HUL hires but most importantly because it is succeeding in rural-sales promoters to coach the nascent entrepre. It is more likely. HUL was also very much practices to modern corporations. At least some of the aimed at the most remote and lowest income con. combining small forces to drive such an evolution: The Indian amounts of cash toward a common pool. but it is nothing like a simple Way in other contexts. Microcredit firms are already exposed to the international in- agencies then lend additional funds to finance ap. was designed to address environment for business offered up by the eco- this gap. and then resell them to their neighbors. and that even for these leading companies. India Way for the most part did not come from the A persistent and previously unsolved problem executive ranks of the legacy companies. pursue the practices we describe here. In fact. practices. not all Indian companies Shakti entrepreneurs covering 500. the an Indian company with many products unique to model looks relatively little like the practices of India. we may be Roots of the India Way: Can It Translate? describing their best attributes. that the India Way should serve as a model products.S. such as obligations models. launched in 2000. Singh. At the same time. stock markets—and they are succeeding mightily Shakti entrepreneurs borrow money from their in international competition.000 villages.2010 Cappelli. Models are built on archetypes and that are consistent with traditional Indian cul. Singh. and by the end of 2010. proved microcommercial initiatives. While it through women’s self-help groups. HUL has Conclusions W extended Shakti to 15 states. model in a previous generation. That helped it to look past Western business companies before the 1990 economic reforms. and rail. were part of the marketing channels. vestment industry—several are listed on U. apply it to the purchase of HUL argue. But the same can I s the India Way so unique to the Indian context be said for accounts of companies in other con- that it cannot apply elsewhere? It has aspects texts as well. The India Way model Project Shakti (meaning strength or empower. such as stakeholder-based governance sumers to extend the firm’s reach beyond traditional and investments in employees. The project dent on the Indian context. the competitive environment with a competitive neurs. The new generation of leaders who created the chain practices. With rising competition from Procter nomic reforms and more open markets after 1990. They the current U. (See Appendix B about the accepted changing attitudes toward usage of various products. increasing local awareness and long run. leaders with a mandate to centers by electronic media. model.000 villages. and Useem 21 sumer products company.

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and ambitious leaders who populate corporate training facility in the world. 21(8). Table 5: Per. A. group who achieve an A grade on these tests. and the disciple_became_guru_72208. six months. Company managers Wadhwa. Corporate social for the achievements of their subordinates was quite com- responsibility in a comparative perspective.wharton. July 1).org/DATASTATISTICS/ tination reduces personal ambition and persistence. from http://leadership. Williamson. counterparts and that the greater discovers why. K. visited. Retrieved April 1. V.S. J. Candidates hired from outside trieved April 1. that Indian salespersons more and more companies are recruiting people from the perform better under more hierarchical authority arrange- subcontinent for top management positions. Bureau of Labor Statistics. & D. World Bank. 44(1). innovative Indian business scene. R. for example. Financial Times Weekend Magazine. Crane. House. India receive even longer training.. 14(3-4). in their first reviews. Once hired at Infosys. a similarity that countries. new recruits move to the largest empowered employees.t05. are hard to recon- Appendix A: Training at Infosys cile with the fast-moving. DC: World Bank and hierarchical social relations make individual leaders more International Finance Corporation. International comparisons of GDP per capita and per employed person: 17 rooms resembled typical college classrooms. The facility can handle 6. Retrieved April 1. country’s deep historical orientation leads to conformity World Bank Group. G. Stars of India: Around the world. 2010. D. (2008).” World Development. The Oxford handbook of corporate social responsibility (pp.S. G. July). & Gereffi. Holding supervisors similarly responsible Journal. before the mid-1980s but is now extremely A. 2007). to help them upenn. from http:// center was designed to feel like a college campus.bls. . acres outside of Mysore. J. Williams. important than the goals they pursue. Doing business (Annual report with the past and resistance to change. as possible. In A. (2007.. Gross national income per Suresh Gopalan and Joan Rivera (1997) summarized the capita 2008.org/pdf/ who achieve various competency certifications.gov/news.pdf.release/sept. the Resources/GNIPC. Wharton Leadership Digest [Web Page].. The training ment characteristics.S. from http://sites.S.htm.gov/fls/flsgdp. Moon. similar arguments. the number trieved April 1. When we www. J.worldbank. with plans to quadruple in size.. July 28). (2010). These views of Indian culture. (2008. we were struck by how much the training-session U. 2010. The 14-week training regimen includes regular Useem. power imbalance between superiors and subordinates in Indian society requires leadership styles that are much more Appendices task-oriented. UK: Oxford University Press. continue in the program. adapt to the Indian and Infosys cultures. from World Development Indicators Database: to business as follows: The Hindu religion’s belief in predes- http://siteresources.pdf.). leaving little room for individual autonomy. 1960 –2008. (1993).. Democracy and the “Washington Appendix B: Indian National Culture and Business consensus. mon in the U. de Vitton. are assessed based on the percentage of new hires in their The disciple became a guru: Is it time for the U. D. Retrieved April 1. A.bls. however. 1329 –1336.edu/digest/01-10. accepted views about Indian national culture as they relate 2010. G.shtml. to learn workforce development from former disciple India? Re. R. 452– 472). Washington. U.0 in exams and assessments that the new hires must pass to Davos. from http://www. (2001).. Amy Yee ments than do their U. based on the job satisfaction of their employees and the tributes and profitability under conditions of perceived percentage of leadership positions that have an identified environmental uncertainty.doingbusiness.24 Academy of Management Perspectives May employer provided training-employee results. Does leadership matter? CEO leadership at. rare (Rao & Hoyt. & Puranam. (2009). (2009. A. 2010. Re. C. & Aguilera.pdf. Academy of Management internal successor. Ramirez. (2009. ees at a time. June 30). Siegel (Eds. V. 40. 2010. More senior managers are assessed P. a long tradition of series by country). 2010. p. Atlas method and PPP. from makes the transition from college to the company as smooth http://www.org. percentage of outside or lateral hires who are rated as “good” Waldman. 134 –143. The Asia way: Market capitalism 2.kauffman.000 train- cent of employees who received training by selected employ. Matten. M. Others have made Yee. just short of 300 the India Way. McWilliams. Retrieved April 1. Oxford.

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