Cross Cultural Management Guide for India

The advice offered below is for managers who want to learn more
about the management style and business culture of India.

It provides some useful information for managers who are

relocating to the country for employment as well as those who
may have Indian employees in their global or multicultural
teams.
Topics include:

 Role of a manager
 Approach to change
 Time and scheduling
 Communication
 Negotiation style

Being a Manager in India

The key to being a successful manager in India is understanding that there are protocols and rituals that exist
to maintain harmony. It's crucial that this is never threatened, so cultural sensitivity is vital.

 The Indian workplace is hierarchical in nature, with organizations being vertical.

 When managing in India, it is important to keep in mind that each person has a very distinct role within the
organization, and maintaining that role helps to keep order.
 It's important that you respect the hierarchy as failing to do so may lose you the respect of your colleagues and
any reporting team members.
 Trying to engage subordinate employees in decision-making may also work against you as they may view you
as having insufficient expertise for your role.
 Be aware that the honour of those with whom you work is very important. Be very careful not to criticise or
embarrass anyone in front of others.
 Don't challenge people in such a way that they feel shame at not having the right response.

The Role of a Manager

In India, as in other hierarchical societies, managers may take a somewhat paternalistic attitude toward their
employees. They may demonstrate a concern for employees that goes beyond the workplace. This may include
involvement in their family, housing, health, and other practical life issues.
You should also consider that:

 It is the manager’s job to regularly check on the work of a subordinate and to provide regular constructive
feedback.
 This may include monitoring work quality and the timing of its completion.
 Failing to provide regular feedback and guidance may make your subordinate feel that they are not being
suitably managed.

Approach to Change
According to intercultural studies, India has a moderate tolerance for change and risk. What does this mean
for managers proposing changes?

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  It is important for innovations to have a track record or history, noting the benefits if they are to be accepted
and implemented.
 It is also of benefit to outline the value that these changes will bring to the company as a whole.
 Since India is a relationship-based culture, then it's fair to say that personal and group impacts shouldn't be
underestimated.
 You may well find that the value of change to the group is given priority to the value of the change on time
savings or the financial bottom line.
 As such, emphasising these areas will benefit you.
 A well-known saying in India asserts that 'nothing is impossible'. Indians tend to rise to the challenge and
typically like to see beyond potential barriers.
 As such, dealing with unforseen outcomes, particularly within the framework of change, is often taken in
one's stride and viewed in a sense of 'challenge on'.

Time and Priorities

Indians are generally quite careful about time in business situations. Schedules, timelines and deadlines are
taken seriously.

 However, where, timescales seem less important, then they may well be overlooked.
 It's important to remember that Indian culture is concerned with relationships so there may be instances where
there is some flexibility to strict standards of adhering to schedules.
 To err on the side of caution, when working with people from India, it’s advisable to reinforce the importance
of the agreed-upon deadlines and how that may affect the rest of the organization.
 Successful management will depend on the individual’s ability to meet deadlines.
 Global working means that some managers may have a greater appreciation of the need to enforce timescales
and as such, agreed deadlines are more likely to be met.

Decision Making
The culture in India is very relationship and group-oriented, so a strong emphasis is placed on maintaining harmony
and proper lines of authority in the workplace. This means that in some cases, Indians may not say what they think to
avoid offence or causing upset. This is particularly the case with people that they don't know, or, people higher up in
the hierarchy.
However, where relationships are strong then, it may well be the case that Indians are far more direct, in which case
you can deal with them in the same way:

 The manager makes decisions and accepts responsibility for work performed by subordinates.
 The middle manager may consult with subordinates before reaching a decision, although it is more likely that
he will confer with trusted advisors or relatives.
 You will need to bear in mind the importance of people in the office sticking to their roles.
 For instance, it would be inappropriate for a manager to make photocopies or move a piece of furniture
because these tasks belong to someone else.
 Be careful not to engage in behaviour that would be seen as inappropriate for a manager.

Boss or Team Player?

If you are working in India, then you will find that managers tend to adopt more of a 'boss' role. This is not
necessarily always the case though.

 Indian managers try to find a balance between being a strong, directive boss and a caring, concerned leader.
 It is not uncommon for managers to know the ins and outs of their employees' lives and show interest in their
personal circumstances.
 On the whole, managers tend to give tasks or work to their team as opposed to also getting involved with it.

Communication and Negotiation Styles

To be effective when working with Indians you need to understand the importance of personal relationships. They are
crucial to conducting business and are based on mutual respect and trust. It takes time to develop a comfortable
working relationship and you will need patience and perseverance.

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  Indians are non-confrontational. It is rare for them to overtly disagree, although this is beginning to change in
the managerial ranks.
 Decisions are reached by the person with the most authority but reaching that decision can be a slow process.
 Never appear over-legalistic in negotiations; in general, Indians do not trust the legal system and someone’s
word is sufficient to reach an agreement.
 Successful negotiations may be celebrated over a meal.

Comparison of Business Management in India and America

In India, many organizations are also family businesses thus run by the family. The leadership of the organization is
passed to the family members even if in a case where they lack professional management knowledge. In the same way
presidents of some of America’s big organizations are the sons of the founders of the family. However, there is a lot of
freedom for managers working in America than in India. In addition in America, firms are managed by specialized
managers who in many cases are replaced through other specialized managers, when they retire or as a directive by the
board of directors. Other organizations with a good management structure and leadership ladder simply select
replacements within the organizations. In many cases, the CEOs of these organizations have vast experience with the
organization spanning for over 20 years in some cases. (Hill, 2005).

Hill (2005) states that in America as opposed to India many organizations are at a later stage of development and
mainly depend on capital markets. Whereas, in India, many organizations depend on getting capital from the
government. This aspect has created the management of organizations in India to have a bigger say than those in
America. It is also clear that the American management style is more democratic than the management of India which
is in most cases autocratic. (Hill, 2005).

Conclusion

Management styles in an organization differ following the culture of the organization. Another influencing aspect of
the management style is the size and ownership of the organizations. In India, most organizations have adopted an
autocratic management style which gives the management a lot of power in running the organization. However, in
America, most organizations are more democratic in their management styles and uphold participative management
styles. Hill (2005) observes that over the last years, globalization has had a remarkable and extensive impact on the
Indian management style, policies, and leadership culture. Thus, currently, there are emerging changes that are
occurring in Indian management style both on the micro and macro scale.

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