Journal of World Business 47 (2012) 232–239

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Journal of World Business

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Managing diversity: Impact of religion in the Indian workplace

Asha Rao *
College of Business, California State University East Bay, VBT #422, 25800 Carlos Bee Blvd., Hayward, CA 94542, United States

A R T I C L E I N F O A B S T R A C T

Keywords: Religious diversity in India stems from centuries of foreign traders and invaders ranging from the
India Mongols to the Mughals, French and British who came with their faiths. Religious diversity has created
Religion much political conflict and bloodshed in society at large (e.g. the recent blasts in Mumbai), but many
Culture
differences have been reconciled in the workplace over time. MNCs seeking to engage in the Indian
Diversity
HRM
economy are attracted by the intellectual capital of this diverse nation. I examine the presence of religion
in the Indian workplace through cultural values, beliefs and management practices and their impact on
IHRM practices in managing diversity.
ß 2011 Elsevier Inc. All rights reserved.

1. Introduction in analyzing religion in the Indian workplace in order to develop

‘‘This would be the best of all possible worlds, if there were no
religion in it’’ John Adams
Global interest in world religions grew tremendously with the
religion based 9/11 attacks in the United States, followed by those
in Spain, Italy, and Mumbai. The last attack raised global firms’
concerns about the impact of religious conflicts in the Indian
workplace. These concerns need to be placed in the context of the
past centuries wherein India has experienced both religious
conflict and assimilation of successive groups of traders, invaders
and settlers such as the Aryans, Greeks, Mongols, Arabs, Persians,
Mughals and the Europeans. The world’s most populous democra-
cy is the birthplace of several world religions including Hinduism,
Buddhism, Jainism and Sikhism. It is home to a billion Hindus, the
world’s second largest population of Muslims, and twenty-five
million Christians.
We increasingly work in a global village where people are
internationally mobile or working locally but in global and often
virtual teams (Adler & Gundersen, 2008; Conlin, 1999). Conse-
quently, people are directly affected by the religious beliefs, norms
and practices of others and need to develop awareness of the
issues, and processes to manage religion at work. While MNCs are
advised to leverage their globally diverse workforces, their
attempts to do so have not been much examined (Sippola &
Smale, 2007). Religion is one of the key facets of diversity, along
with race, gender, disability and age. Yet we have virtually no
business research on the topic. This article takes an emic approach
* Tel.: +1 510 885 4517; fax: +1 510 885 2660.
E-mail address: Asha.Rao@csueastbay.edu.
our knowledge of managing global diversity in religion. The
analysis also seeks to transfer knowledge from the Indian
experience to firms’ global operations.
This paper focuses on work issues raised by major faiths in India
and the U.S., such as Hinduism, Islam, Christianity and Judaism, and
examines their impact on management in Indo-U.S. ventures
(Hinnells, 1997; Johnson, 1997). The first section examines the
nexus between religion and culture at work, drawing from research
in cross-cultural management and world religions. The second
examines the perceptions of senior executives on religious diversity
at work in India today. The latter section draws from structured
interviews with executives in both Indian and U.S. firms located in
India. The discussion, while international in scope, is exploratory in
nature and anchored in a more limited Indo/U.S. perspective.
Management scholars (Hofstede, 1992; Ronen & Shenkar, 1985)
have indicated that religion is one of the crucial factors (along with
geography and language) that underlie national culture. Examin-
ing the links between the two, religion and culture, in the Indian
workplace provides greater depth to our analysis of culture in the
workplace. Firms spend significantly on cultural training programs
for international assignments, and religion is a core determinant of
culture. Examining the two also enables managers to understand
why seemingly minor issues such as dress codes or schedules can
trigger strong responses in people. For example the Indian
independence movement (often termed the Sepoy Mutiny) is
traced back to 1857 when the Indian troops in British service arose
in mutiny over rumors that bullet cartridges they used were coated
in fat from beef and pork, forbidden by the Hindu and Muslim
religions respectively. In this context, the Indian freedom
movement essentially began with a religious revolt against the
British East India Company. Finally, it provides a basis to examine
potential conflicts where global diversity mandates based on

1090-9516/$ – see front matter ß 2011 Elsevier Inc. All rights reserved.
doi:10.1016/j.jwb.2011.04.010
 A. Rao / Journal of World Business 47 (2012) 232–239
home-country culture and religion may clash with religious values,
attitudes and practices in other locations.
1.1. A matter of faith
The two countries, India and the U.S, provide some interesting
similarities and contrasts for analysis. Religious freedom is a
fundamental right in both India and the U.S. as in many other
secular nations (Wolf, Friedman & Sutherland, 1998). In both
nations, it is articulated in the constitution, in Article 14 of the
Indian constitution and in Title VII in the United States. Eighty-
three percent of Indians are Hindu, thirteen percent are Muslim
and the rest are from a range of religions including Christianity and
Buddhism (Census of India, 2001). India hosts the worlds’ second
largest Muslim population. In contrast, the U.S. is primarily a
Christian nation (82%). Islam is one of the fastest growing religions
in the nation, but observed by only 0.5% of the population (Pew
Foundation, 2008). A little more than one percent of the U.S.
population is Jewish. A small fraction of Americans, primarily new
immigrants, follow other faiths such as Confucianism, Hinduism
(0.4%), and Buddhism.
Statistics suggest that Americans are a religious people with
close to ninety five percent of them expressing a belief in God or a
religious faith. Many too believe that people can and do bring
religion to the workplace (48% according to Conlin, 1999). Church
attendance rates in the country are among the highest in the world
(Gannon, 1994) with Americans believing, far more than Eur-
opeans, that one has to be religious to be moral (Pew Forum, 2007).
Top executives from a range of firms believe that faith has an
impact on the bottom line. American CEOs and executives report
drawing on the Bible, Bhagvad Gita, Talmud and other scriptures
for inspiration at work (Brahm, 1999; Conlin, 1999; Leigh, 1997) In
2011, U.S. President Obama has further empowered his prede-
cessor’s faith based initiatives. The causes for this resurgence of
interest are many, including the diversity of the population, the
search for greater meaning in life in an increasingly dynamic
environment, broader political and social conflict between
religions and nations, and globalization. While there is no parallel
research in India, it is accepted that religion permeates all aspects
of life.
2. Religion, culture and work: a conceptual framework
The word religion is derived from the Latin word ‘‘ligare’’ which
means to join or to link (Hinnells, 1997). A primary function of
religion appears to be to give people a link to the powers that
control their destiny (Johnson, 1997). In the United States the term
‘‘religion’’ embraces all aspects of religious observance and
practice, as well as beliefs (1972 Amendment of Title VII of the
U.S. Constitution). Theologians distinguish between religions and
faith by noting that religions require the acceptance of a God, while
faiths such as Confucianism can have followers who are atheists.
These theological arguments are not the focus of this paper.
Instead, the impact of religion values, observances and practices on
work are examined, and I use the term religion in the broadest
sense to encompass all faiths (as in Hinnells, 1997). Most religions
prescribe the behavior of adherents, some (e.g. Islam) actively
encourage the blurring of lines between their followers behavior in
and out of the workplace (Cash, Grey, & Rood, 2000; Johnson,
1997).
Across the globe, religion has played a part in management
processes and economic development. Asian leaders such as Lee
Kuan Yew have espoused the role of Confucian ‘‘Asian values’’ in
the rapid economic development of the ASEAN region (Hofstede &
Bond, 1988; Sen, 1997). The impact of religion is not always direct
as in people’s attire, rituals or festivals that impact workplace dress
233
codes, or schedules such as Ramadan or Christmas. Religion has a
subtle but strong impact through national or ethnic culture. For
instance, the concept of the five-day workweek in the West is
firmly rooted in its Judeo-Christian heritage where Saturday and
Sunday are days of worship (the Sabbath) and rest, but most
Westerners see this as an accepted business practice rather than a
religious one. In India, we find a six day work week. To understand
the subtle impact of religion on business today one needs to
understand national cultures.
2.1. Culture
Culture has been described as the collective mental program-
ming shared by people (Hofstede, 1992). The power of religion is
evident in the similarities of culture across forty Islamic nations,
and in the cultures of the Indian diaspora in nations ranging from
Singapore, Fiji, the Caribbean to the U.S. Cultural bonds are usually
difficult to break even later in adulthood. We maintain culturally
derived values, beliefs and behavior in the workplace and even
when traveling across cultures as demonstrated by research in the
field of cross-cultural management (see Adler & Gundersen, 2008).
I use the model of the culture pit (Fig. 1), adapted from Schein’s
(1985) model of organizational culture to further examine the
relationship between religion and ethnic/national culture.
As seen in Fig. 1, culture is a pit with many layers. At the bottom
of the pit lie core values and beliefs, and cultural assumptions,
which are relatively stable across generations. The middle layer
includes rituals, attitudes and structures that are built on these
core beliefs. Like the core layer, these are hard to assess because
they are below the surface, but underlie behavior and other
observable manifestations of culture. The work attitudes here
include the attitude towards women in the workplace or towards
work itself. The top layer, visible at the surface, reflects the layers
below but is mutable. In the following discussion we link religious
beliefs, attitudes and rituals, and behavior to each layer.
2.2. Religion and core cultural values in India and the U.S.
2.2.1. The meaning of work
Religions differ in their emphasis on the role of work in life.
Much has been written about the Protestant Work Ethic (PWE) to
explain the centrality of work in the U.S. The ethic holds that a good
Protestant must work hard on earth and be successful in order to
Global
managerial
strategy
Adapt/Manage
Behavior
Symbols
(e.g. festivals, clothing)
Attitudes, rituals, structures
(e.g. the meaning of work,
attitude toward woman at work)
Core values, beliefs, cultural
assumptions
(e.g. the work ethic)
Understand
Fig. 1. The culture pit and religion in the workplace.
234 A. Rao / Journal of World Business 47 (2012) 232–239
reap rewards later in heaven. A person’s work is their calling and
comes from God. In working hard, people make evident their worth
to both God and themselves (Gannon, 1994; Johnson, 1997). In the
U.S., the Protestant ethic meshed with social Darwinism as
expressed by Russell Conwell (a Methodist minister and the first
president of Temple University) who extolled his followers ‘‘I say
you ought to be rich; you have no right to be poor . . . I must say that
you ought to spend some time getting rich.’’, (Gannon, 1994). He
went on to say that it was absurd to believe that people should not
want wealth, because wealth enables people to truly accomplish
something of value on earth (Gannon, 1994). The work value is
combined with both drive and a high need for achievement in the
U.S.
Clearly, many other religions speak of the value of work, but, the
interpretation of work seems to vary in its emphasis on effort, time
put in, commitment, loyalty, creation of wealth and the kinds of
work valued by different groups. Hindu philosophy offers dharma
(duty) as one of the four means to salvation (Hinnells, 1997). In
motivating millions to fight for freedom from the British, Mahatma
Gandhi tapped into this aspect of Hindu religion espoused in the
Bhagvad Gita, as karma, which represents work or duty without an
attachment towards immediate rewards. Kalra, founder and CEO of
BioGenex laboratories, also links his success to the philosophy in
the Bhagvad Gita. Kalra says ‘‘The Bhagvad Gita teaches that I have
rights on action, but no rights on the fruits of action, nor should I be
attached to inaction as a result. So I have the right to be the best
CEO but no right to how much money I can earn. . .. As a result of
this, I have no fear of failure, and I can take risks’’, (Brahm, 1999).
Work helps the Hindu earn a living, satisfy worldly interests, gain
power and status, and take care of the family (Gannon, 1994). But,
Hinduism dictates that the role of work changes during different
stages in life. The role of work is strongest in the second stage of
life, where the grahasta is obliged to work and fulfill his duty to
society. At later stages, the Hindu needs to withdraw from worldly
accomplishments such as work to focus on the search for the truth.
The book of Islam, the Quran, indicates that work is an
obligation (Hinnells, 1997). Indeed, the prophet Muhammad was a
trader by profession. But Islam also breeds an element of fatalism
in the workplace, reducing economic pursuits and letting employ-
ees off the hook, because destiny is in the hand of God, who is the
ultimate creator of wealth (Rice, 1999; Rodinson, 1974).
2.2.2. Linking cultural assumptions and religions/faiths
Hofstede’s (1992) cultural dimensions can be linked to world
religions.1 Hofstede notes, for instance, that Roman Catholics
tended to score higher on Masculinity than Protestants, primarily
in response to the question ‘‘How important is God in your life?’’
Orthodox Christians and Roman Catholics tended to score high on
uncertainty avoidance, i.e., they were more risk averse in decision-
making. Protestants, Jews and Muslims scored lower on this
dimension (Hofstede, 1992).
While the U.S. scores low on Power Distance, India has a
relatively high score, possibly because of the emphasis in Hindu
religion on the respect for age, knowledge and hierarchy. Core
Hindu texts, the Ramayana and Mahabharata, are replete with
myths of the blind obedience of godly figures like Ram, Arjun and
Yudhistra to their parents and teachers, at great personal costs to
themselves. This philosophy helps explain the power differentials
between men and women, bosses and subordinates and the
relevance of seniority in India.
1
I assume that management scholars are familiar with his four dimensions of
culture – power-distance, individualism-collectivism, uncertainty avoidance, and
masculinity–femininity and will not go into them in great detail defining them here,
but will link them to religion.
Religion and cultural values have been linked to larger
economic development. In an analysis by Hofstede and Bond
(1988) cultures where long term values of persistence, ordered
relationships, thrift and a sense of shame (Confucianism dyna-
mism) were dominant, tended to experience rapid economic
growth assessed by GNP per capita. Cultures that clung to short
term and static Confucian values of personal steadiness, face,
tradition, reciprocity of favors, etc. tended to be slow developers.
While India was not part of this study, leaders like Mahatma
Gandhi long held that traditions and schisms created by religion,
akin to the short term Confucius values listed, were forces that
hindered the economic development of the nation. Some authors
suggest that a similar adherence to Islamic traditions impacts
economic growth (Rodinson, 1974).
2.3. Mid-layer-attitudes, social structures and the concept of time
The concepts discussed in this section are based on the values
and core assumptions described in the previous one. But, these
include rituals or artifacts that are observable as well as
discernable attitudes derived from core values. Some of the key
concepts include that of time, attitudes such as that towards
women and work, and structures such as architectural codes (Vastu
Shastra), division of labor (the Hindu caste system), Islamic
Banking and ethical codes such as in the Talmud or in Catholic
Social Teaching (CST, Laczniak, 1999).
2.3.1. Time
The concept of time is very cyclical in Hinduism. The world goes
through many cycles of creation and destruction. Life itself is
cyclical, with souls being reincarnated till they achieve salvation
(Gannon, 1994). This, coupled with the belief that the world is an
illusion or ‘‘maya’’, encourages people to have a flexible attitude
towards time. Time becomes imprecise and infinite since one
always has at least a second opportunity. In contrast, the concept of
time is linear, and more specific in the predominantly Christian
U.S. culture. Opportunity knocks only once so people are
encouraged to seize the day. In Islam, time becomes more
imprecise because schedules and other time related matters are
in the hands of God (Hinnells, 1997).
2.3.2. Attitude towards women in business and management
Christianity, Islam, Hinduism, Judaism and Confucianism all
assign women to nurturing, family primary and career secondary
roles, allowing for power differentials between men and women at
work. For example, in the U.S. the Southern Baptist Convention
declared that wives should be submissive to their husbands
(Orlando Centennial, 1998). More subtly, the family primary role
advocated for women by religions has translated into societal
norms limiting their career choices, and business practices such as
unequal pay for equal work. While women hold key positions in
U.S. business, they still ‘‘pay’’ for using initiatives like flextime
(Catalyst, 2009).
Similarly, in India, while gender based discrimination is illegal,
religious norms underlie societal values as well as family law.
Traditional Hindu wives are supposed to be family primary and
obey their husbands (Manusmriti described disobedience as a sin)
which can negatively impact women at work where it can translate
to an implicit bias in power for men. Paradoxically, the mother
goddess is revered in many forms in Hindu mythology; as a
powerful force in Shakti, Durga and Kali, as wealth and prosperity in
Lakshmi, and as knowledge in Saraswati. Feminists looking beyond
Manusmriti (i.e. Manu’s code developed in approximately 200 BC)
to the Vedic period (1500 BC) highlight the equality provided in the
Vedas. Successful women have harnessed the latter frame of
religion both in politics and management where women have
 A. Rao / Journal of World Business 47 (2012) 232–239
enjoyed powerful positions in recent years. In Imagining India,
Nilkani (2008, p. 16) quotes Indira Gandhi as saying ‘‘you have no
idea how tiring it is to be a goddess’’!
2.3.3. Architectural codes
The Hindu system called vaastu shastra defines architectural
codes to ensure that physical structures relate well with the
natural environment and meet the physical, emotional and
spiritual needs of people (Ananth, 1998). Much like feng shui,
vastu shastra has an impact on design in India where architecture
needs to balance the five forces of nature. Businesses, local and
multinational, often employ geomancers to ensure that their
facilities meet these codes. Ground breaking ceremonies include
the priest to bless the facilities and media images show local and
foreign business people sporting ‘‘tikkas’’ on their foreheads from
the ceremony.
2.3.4. Division of labor and business codes
While educated Indians consider caste a medieval degenera-
tion, it has been a basic feature of Hindu society for centuries.
About two thousand years ago, the Aryan caste system mandated a
religious division of labor into four castes of priests (brahamans),
warriors (kshatryias), businessfolk (vaishyas) and workers (sudras),
which was potentially useful at that time. The discriminatory
negative consequences of this system when it became an inherited
division of labor are well known. Caste barriers endure despite the
Indian government’s efforts to legislate it out of existence. On the
brighter side, many Indian enterprises, in India and overseas, can
be traced to the business families belonging to the vaishya clans
(Saha, 1993). The knowledge that it was their mandated role in
society, and centuries of specialization helped the vaishya business
houses hone their business skills, financial systems and tight
networks that endure today. In seeking alliances in India, foreign
MNCs flock to ally themselves with business houses, often built by
many of the vaishya clans.
In Islamic law, business law is derived from the Quran and the
Hadith. The fact that the Prophet Mohammad prohibited riba or
unearned profit, lead to the development of Islamic banking where
banks invest in business or enter into partnership so that the
lender and borrower share the same risk and reward rather than
profit form another’s work. However, unlike the Middle East, the
concept of Islamic banking did not take root in India where Islamic
law has had a greater impact on family law and the status of
women.
2.3.5. Religion and ethics
Religious values and management interface in discussions of
ethics and social responsibility, but surface in different forms in
different cultures (Laczniak, 1999; Rice, 1999; Vogel, 1992);
individualistic in the U.S. and more collective in Asia. In the wake of
business scandals, U.S. firms (e.g. Nike, JC Penney) are further
developing codes of ethical conduct for their employees world-
wide. In explaining the high level of public interest in business
ethics in the U.S. compared to the rest of the world, Vogel (1992)
refers to America’s Protestant heritage which makes the creation of
wealth ‘‘God’s work’’, it raises people’s expectations of the moral
behavior of individuals. Most Americans believe that these ethics
are or should be universal, compared to eastern cultures, which
allow for contextual variations (Trompenaars, 1994). Firms in the
rest of the world, however, are not happy to adapt to the
developing U.S. norms. In discussing Hindu ethics, Dhand (2002)
notes that there is no equivalent word for ‘‘ethics’ in Sanskrit. She
also notes that the western concept as a code of conduct does not
translate well because there are different levels of ‘‘right’’ in the
Hindu texts, where the right thing to do is contextual, perhaps
explaining (but not condoning) the level of corruption in India.
235
Jewish business ethics also acknowledge the centrality of the
community (Pava, 1998) as reflected in Talmudic principles that
call for ethical conduct beyond legal norms (lifnim mishurat hadin).
The emphasis on community over wealth is apparent in Brahm’s
(1999) account of Arron Feuerstein’s (President/CEO, Malden Mills
Industries) decision to keep his mill open, and his employees on the
payroll, even after it was burnt down. Feuerstein drew on the
teachings of the Talamud which stress that money is not as crucial
as taking care of others and acquiring a good name which is ‘‘the
greatest treasure a man can acquire’’. Feuerstein paid his
employees for the next few months, and was rewarded with his
employees’ motivation and loyalty. In discussing Islamic ethics,
Rice (1999) states that Islam requires the free markets system to be
complemented by an internal moral filter so that scare resources
are equitable distributed in society. The religion stresses brother-
hood, equality, and socioeconomic justice for all. In the Gulf
countries the wealth from oil has brought amazing wealth to a few,
but has also trickled down to the masses through social welfare
programs. Zakat, or alms tax, is one of the five pillars of Islam that
was imposed on the Hindu majority during Muslim rule, but no
longer exists. According to Rice, the Quranic injunction ‘‘there is no
compulsion in religion’’ leads people to follow a strong internal
moral code. These contrasting approaches show that global
religions focus on different aspects of ethics, which can cause
different interpretations of MNCs codes of conduct or differential
adaptation to them.
2.4. Surface culture
This layer is the most evident, yet the most mutable layer of
culture. Managers are usually aware of these cultural manifesta-
tions and seek to either manage or accommodate for them in
managing diversity. Many of the cultural clashes and legal issues
have occurred over visible, surface culture issues such as dress,
observances and symbols. Some manifestations of surface culture
that impact international organizations are discussed below, such
as symbols, schedules and calendars, festivals, and the concept of
the workweek.
2.4.1. Symbols and artifacts
Some of the most obvious symbols that come to mind are those
linked to appearance. For instance, for Muslims, Jews and Sikhs,
male facial hair is a symbol of their faith. The Sikh, reputed
warriors, have clashed with many national and organizational
safety laws regarding helmets and hard hats, around the world and
won battles that permit them to keep their hair and turbans. In
these religions, head coverings such as scarves, turbans and
yarmulke are a mark of faith, in stark contrast to the Christian
practice of removing a hat as a mark of respect. American firms that
assume the latter practice is a universal norm at work are surprised
to encounter resistance. In Islamic and Hindu cultures where
modesty is a virtue, women wear loose-fitting clothing to work.
Muslim women often wear the veil, which represents honor,
dignity, chastity, purity and integrity. Bias claims in the U.S. have
emerged out of the clash between traditional American norms and
Muslim women’s desire to wear their headscarves (National
Employer, 2002). Given the centuries of assimilation, diversity in
appearance is more accepted in the Indian workplace.
Religious artifacts are often present in the workplace. Hotels
place the holy Bible in their rooms. Christians often wear the
crucifix, Silks must carry a small sword called a kripan (which may
violates workplace safety rules), Hindus often wear the holy mark
‘‘bindi’’ on their forehead. Some religious symbols carry different
meanings in different cultures that can create conflict. For instance,
the Swastika, a symbol of the Nazi Germany program of ethnic
cleansing, is a revered Hindu symbol that is commonly used on
236 A. Rao / Journal of World Business 47 (2012) 232–239
religious occasions by priests who have potentially never heard of
Hitler. To Hindus, the Swastika is a solar symbol representing the
cosmos, the four principles of divinity, and the four sacred texts
(Vedas). It is seen on walls, in calendars, screen savers, and
displayed on religious occasions in India.
2.4.2. Calendars, schedules and the workweek
While the five-day workweek is common in many countries, it
is most accepted in Christian ones. Sunday has no religious
significance for much of the world. In the Islamic world, the
weekend begins on a Thursday. In predominantly Hindu India, the
workweek is five and a half days. Religious days for the Hindus,
Jews and Muslims are determined by the lunar calendar and
change from year to year (reflecting their flexible norms on time),
unlike the Christian solar calendar where Christmas falls on the
same date every year. This is important for the modern business
traveler because across the globe, most mandated holidays are
religious ones. Mapping them has become a business necessity and
enterprise. Work slows down in the Muslim world during the
month of Ramadan (the ninth month in the Islamic calendar) where
people fast from sunrise to sunset and focus on prayer. A similar
phenomenon occurs around Diwali in India. Given the flexibility in
time discussed earlier, these changes are accommodated relatively
easily in India and rarely in the U.S.
2.5. Managerial relevance of the cultural framework
What does the above analysis mean for the practicing manager?
As indicated in Fig. 1, global managers need to understand the
religious roots of cultural assumptions and core values that they
cannot really change. They also need to understand the basis of
attitudes, rituals and structures at the middle level that appear
irrational without an understanding of the philosophical argu-
ments upon which they are based. As we move up the culture pit,
we encounter behavior and artifacts that managers can either
choose to adapt to, or request adaptation from their employees,
based on their understanding of core cultural and religious values.
For instance, Americans working overseas will be more willing to
adapt to the local workweek when they understand why they
differ, and also realize that their own workweek is also based on
religious norms. Again, in scheduling work or modifying dress
codes for employees of different faith, they will also be more
understanding of the need to accommodate employees’ faith.
3. Managing religious diversity in India: some empirical
evidence
Examining religion at work is a challenge. Unlike other forms of
diversity, such as age or gender, firms do not keep records of their
employees’ religious affiliations. Managers are reluctant to discuss
this sensitive topic. Given the lack of empirical work in this area,
this is an exploratory initiative to expand our understanding of
religion in the workplace. In-depth interviews were conducted
with a group of senior managers in India. Based on consultation
with faculty experts in a reputed Indian business school, the author
identified ten MNCs in a large south Indian metropolitan area from
lists of top MNCs in the region that were drawn from public access
databases such as fundoodata.com and naukri.com. Selection
criteria included identification as the area’s dominant employers
by experts; their visibility in the business press; size to ensure they
were large enough to have faced challenges in managing diversity
(1000 or more employees); local access for face to face interviews
on a sensitive topic; representative of Indian and US MNCs; and
restricted to private sector firms since public sector firms face
some unique HR requirements. Introductions were sought through
the CII (Confederation of Indian Industry) to the senior most
executive who could discuss this topic in the firm. Much like China,
India being a collective culture, introductions through the network
are necessary to reach the appropriate people for information.
3.1. Sample
Senior executives in seven U.S. multinational firms, and two
Indian MNCs were interviewed in this project. (The executives of
the 10th firm were not available for a face to face interview during
the researcher’s stay in India). In the seven U.S. firms, four of the
interviewees were the CEOs of their firm’s Indian unit, two were HR
managers and one a GM (General Manager). The 4 CEOS of U.S.
firms were all expatriates on assignment in India and at the time of
interview had been on site for at least a year. The HR managers and
GM were Indian nationals. Of the two Indian MNCs, one
interviewee was the CEO of the firm and the other was the VP
of Global Human Resources. Seven of the nine firms were in the
technology sector, and two in the automobile sector. The
interviewees were primarily male (8 out of 9), with one female
HR manager. Questions on religion were asked in the context of a
semi-structured interview on cross-cultural differences and
management in India. The interviewees were asked the following
questions based on the concepts discussed earlier on.
Does religion have an impact on work in India? If yes, how does
it impact work? (For expatriates, was religion part of your cross-
cultural training?).
What is its impact on (a) Management styles and philosophy?
(b) HR practices such as recruitment, selection, retention? (c)
Women at work, attitude to work? (d) Observances, holidays,
appearance or the way people behave at work? (e) Religious
clashes at work?
The interviews were video-taped when permitted, or the
interviewer took detailed notes.2 All interviewees (100% of the
sample) responded that religion had an impact on the workplace.
The expatriates felt it more strongly than the local executives who
accepted religion as a fact of life. One indicated that ‘‘religion is
everywhere’’ and that ‘‘you can’t get away from it’’. They spoke of
the caste system but could not indicate where it played a part in
their organizations, but indicated that it had an impact on the
social lives of their employees such as in arranged marriages or
how people seemed to know each other’s castes. They also
indicated that people needed to take time off for religious events
far more than in the U.S. The interviewees found it very difficult to
indicate specific instances where it had an impact on the
workplace without the follow-up questions. None of the expatri-
ates were very familiar with the Hindu or Islamic religions (the two
dominant faiths in the country) when they came to India. While
their firms had offered them cross-cultural training which
included information on religion, only three of the four had taken
advantage of the training. They indicated that it was brief and they
learned far more while on their assignment, driven by curiosity and
the need to understand the culture. One expatriate manager said
that while he was a Mormon by faith, he was reading the Bhagvad
Gita and often had conversations about religion with his Indian
colleagues, unlike in the U.S. where people did not talk about their
personal religion with colleagues.
2
Videography is a relatively new approach to academic research that has both
benefits and drawbacks. It allows for a clearer record of the interview and playback
to read body language, especially when working across cultures. It also frees up the
interviewer to focus and follow up with key questions. Belk and Kozinets (2005)
outline strategies to reduce response bias that were applied in this study (seeking
their permission ahead of time, gaining the interviewees trust and acceptance and
framing the taping as a compliment i.e. for classroom education, broad questions,
using a tripod and keeping the camera at a distance, allowing them to continue
discussions off camera at their discretion).
 A. Rao / Journal of World Business 47 (2012) 232–239
3.2. Impact on management styles and philosophy
While all interviewees categorically indicated that religion had
an impact on management styles and philosophy, they struggled to
respond to this question. Evidently understanding the religions in
India gave them a better grasp on the people they managed. One
issue they raised was the respect for authority and age in the
workplace that is a part of Hindu culture. One executive indicated
that even though they hired the best and the brightest for their
firm, his subordinates constantly checked back with him on even
minor matters and sought his permission to proceed which he
attributed to the respect for superiors. Another indicated that it
was very hard for older managers to address him by his first name,
but that the younger ones were more westernized and felt
comfortable doing so. The Indian CEO indicated that the respect for
superiors also stifled brainstorming and creativity, processes that
he found was easier in their foreign operations.
3.3. HR activities
All interviewees said they did not use religion as a basis for any
HR decisions. One interviewee (of Indian origin) indicated that her
American HQ had initially asked her to provide a breakdown of the
recruitment by caste, automatically considered that they recruited
from the disadvantaged castes much like affirmative action in the
US. They dropped the idea because it was not necessary by law and
not an accepted practice in the India private sector.
Religion played a more indirect role in HR in the context of
recruiting women. All the interviewees indicated that religion
seemed to have suppressed female participation at work and that
their firms had a global policy of hiring irrespective of gender. Give
that many of the firms were in the IT sector, they employed more
women than in the other sectors. But even in manufacturing units,
the two firms in this case also employed approximately 35% and
40% women.
The retention issue came up in the discussion on women and
religion. One of the interviewees in the technology sector indicated
that he had anticipated retention problems, with women dropping
out of the workforce when they got married into traditional
households, but that this did not occur. What did occur were
requests for time off and more flexibility to accommodate religious
events that the women of the household conducted with more
rigor than their male counterparts, and to keep their in-laws
happy. The Indian interviewees also felt that outsiders made too
much of religion in India and that in today’s competitive climate,
religion had less of an impact than regionalism, linguistic
differences and perhaps social class.
3.4. Religion and the attitude to work, women at work
Again, interviewees found it difficult to answer this question
with specific examples, while they believed that it did have an
impact on both. Two of them indicated that it had an impact on
their security and transport services. They had mini-buses or taxis
take their female employees home when they worked late because
it was a safety issue and they needed to take more care of their
female employees. Another indicated that women made good
employees because they appreciated the break they were getting
and made the most of it. One respondent raised the issue that
women did not speak up at meetings because of the cultural
conditioning to defer to others. Another indicated that they had a
strong women’s network which ran training programs for women
to help them develop managerial competencies. The sole woman
respondent indicated that in some ways it was far easier for her to
work in India rather than the US office because of the strong social
support and childcare that her family provided in India that left her
237
free to work. She said that these strong bonds were probably
rooted in Hindu philosophy. She also felt that the management was
more responsive to family needs in the Indian operations than in
the US because of the trend in all Indian business to do so.3 One
Indian interviewee indicated that work was a duty or ‘‘karma yoga’’
according to Hindu philosophy. The expatriates commented on the
fact that their female employees worked very hard and had a
strong work ethic.
3.5. Observances, holidays, appearance or the way people behave at
work
All interviewees were able to come up with specific examples to
illustrate the impact of religion at the surface level. The Indian
MNCs referred to their holiday calendars and how many religious
holidays they had. One felt that Indians had the most amount of
official holidays in the world because they celebrated all religious
holidays, not just their own. They also indicated that they
celebrated many religious occasions in the workplace. For instance
they had a Christmas tree even though very few of their employees
were Christian. (All of the firms had a Christmas tree in the foyer for
the holidays). Another Indian firm said they had cut back on
holidays so employees could choose to take off time for their
religious holidays. Religious symbols are found very often at work
– ranging from jewelry to screen savers.
Both expatriates and locals indicated that they often had to stop
by for a religious observance at a colleagues place during the week,
usually at lunch time. The expatriates were surprised that their
presence was sought at so many religious events that are private
events in the U.S. For instance they were invited to weddings of
colleagues and employees and their families, house-warmings,
funerals, naming ceremonies and miscellaneous pujas or prayer
services for special occasions. Regarding appearance, three
respondents raised the appearance of women at work indicating
that it was unusual to see women dressed in traditional clothes in
many other parts of the world, but common in India. The
expatriates also remarked on the ‘‘bindi’’ worn by the women
and the ‘‘nama’’ or the holy ash mark on the forehead that the South
Indian men applied on religious days.
Regarding accommodations they made in the workplace
beyond time off for religious events, the interviewees provided
some interesting examples. One of the U.S. firms had switched to
completely vegetarian food in their cafeteria given that they were
in South India where many of their employees were vegetarian.
They found that these employees would not eat in a cafeteria
where the kitchen cooked meat because it went against their
religious principles. Another indicated that they had two separate
caterers, one for the vegetarian food and another for the non-
vegetarian so that employees were reassured that no meat was
cooked in the vegetarian kitchen.
3.6. Religious clashes at work
While all the interviewees felt that religion could potentially
trigger serious conflict in the workplace, most were not able to
identify specific conflicts that had occurred within their firms.
While they spoke of the riots in Mumbai and the tension between
Hinduism and Islam, they did not see it at work. One person
commented that people wanted to leave that insanity out of the
3
Interestingly enough, Indian maternity benefits are more generous than the U.S.
The Indian Maternity Benefit Act of 1961 mandated 12 weeks of paid maternity
leave while the US Family and Maternity Leave Act of 1993 still allows for up to 12
weeks of unpaid maternity leave. Consequent Indian legislation based on the report
of the 6th Pay Commission appears to be heading towards more generous benefits
such as 6 months of enhanced maternity leave to two years for special
circumstances.
238 A. Rao / Journal of World Business 47 (2012) 232–239
workplace. Another indicated that the workplace was predomi-
nantly Hindu so there were few opportunities for clashes beyond
the expatriates not understanding some of the religious beliefs and
practices. Respondents spoke of small problems that could easily
be accommodated before they became a serious problem and none
indicated any grievances filed with HR regarding religious bias.
One person provided an interesting example of a conflict where
they had signs posted indicating that workers could not wear
heavy jewelry while operating machinery. They found that their
female employees ignored this sign and wore heavy gold necklaces
to work. The American expatriates could not understand why
women would risk their safety and threatened to take action. The
Indian managers intervened because the necklaces were the
equivalent of the western wedding ring and the women could not
remove them! The Indian managers also believed that their
exposure to many religions gave them an edge in internationaliza-
tion because they were already familiar with three world religions.
In sum, these interviews corroborate the impact religion has in the
workplace, both directly, and also through the culture.
4. Managerial relevance
The discussion and analysis in this paper indicate that religion
has always been present in the workplace. It has an impact on
peoples’ values, attitudes and behavior at work. The prior
discussion suggests that religion in India does not currently cause
serious workplace conflict because of centuries of assimilation and
accommodation to differences in appearance, observances, diet
and behavior. However, recent global events have triggered a
greater awareness of religious differences and made it more critical
to both understand societal religious conflicts that can spill over
into the workplace and also determine how to harness the benefits
of religious diversity in the workforce.
An understanding of religions allows managers to understand
why accommodations are necessary to prevent conflict. Research
indicates that few firms currently provide training to managers to
understand the nature of religions and cultures represented in
their workforce, and to learn of their firm’s policies and procedures
for dealing with religious based conflicts (SHRM, 2001). Those that
do, find that it facilitates recruitment, commitment and morale of
employees. Other studies indicate that despite this being a
knowledge democracy with phenomenal access to information
on religions, Americans have a poor knowledge of any religion
other than their own (Pew Annual Survey on Religion and Public
Life, 2002). Ignorance can lead to misunderstandings, stereotypes
and bias that need to be reduced with education. Our model of
religion and the culture pit gives managers a tool they can use to
understand and manage religious diversity and identify some of
the critical religion-related cultural phenomena that need to be
managed. It suggests we examine potential religious conflict issues
given the nature of their workforce and proactively determine the
firm’s stance on accommodations. The cultural model shows how
surface behavior is sometimes based on deep-rooted religious
values. Hence, what may seem to be minor issues of dress or
schedule may trigger a stronger conflict than anticipated by
managers. The Indo-U.S. firms in this sample have not encountered
conflict based on religion, but have made many small accom-
modations to prevent conflict such as providing vegetarian food,
time off for observances, and flexible schedules to meet the
religious commitments of employees. In this context it is
important for managers to proactively develop their firm’s policy
on religion in the workplace. Research indicates that only 2% of U.S.
firms currently have a religious diversity policy (SHRM, 2001).
Finally we need to unearth the firm’s cultural assumptions to
see if there is an unwitting bias based on the dominant culture. And
last, but not least, try to see if there is scope to build synergy on
religious differences. For instance, employees from non-Judeo
Christian faiths may be more willing to work on weekends and
traditional holidays, which give the firms great flexibility in
scheduling work, vacations, and breaks. International firms can
harness the tacit religious knowledge of their employees to
understand foreign customers and their needs.
5. Limitations of this study and suggestions for future research
This paper was an exploratory attempt to examine religion in
the global workplace, an issue of current and significant
importance to organizations, with greater relevance to interna-
tional organizations. The synthesis ties together research and
concepts from many disparate areas, including religion and human
resource management to provide some framework for managers in
managing religious diversity, and for researchers to further
examine the issue. The paper has its limitations. First, while
global in scope, the focus is primarily on Indian and U.S. firms in
India. Second, it synthesizes concepts and research with broad
brush strokes as a precursor to developing hypotheses for testing
in empirical research. Further research is needed to fill in this
canvas with more intricate details. Some directions for further
research include; a survey of the managed rather than the
managers to determine their experience of religious diversity at
work, narrowing the scope to focus on specific HR issues and actual
compliance and implementation of diversity regulations, and
examining the diversity issues for Indian MNCs in their global
operations.
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