● Recruitment of people based on recommendation rather than merit and experience.

● Encouraged hereditary succession and diluted much-needed focus on performance

● Family members were installed as heads for most businesses but the CEOs were
professionals
● Regarding recruitment, the level of personal promises and assurances were totally
distanced from a business focus.
● Business decisions were influenced by emotional consideration
● The culture enabled retention of only mediocre senior executives and had not allowed
the development of any professional/systems orientation at work
● If the CEO attempted to act independently, he was promptly hauled and denounced for
breaking the rules
● Day-to-day business decisions could not be taken without the family’s permission
● The visible culture of the Balaji's contrasted with their management style. While there
was a show of wanting to empower, the family sent signals demanding subservience.
● Led by the overall fear of the family and performance bonus, the business heads were
risk-averse and quick to pass the buck.
● There was tremendous suspicion, doubt and undermining of each other’s work rather
than a clear-cut discussion of the problems.