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ITALY

INTRODUCTION
Italy became a nation state in 1861 .

World's most celebrated tourist destination .

World's greatest hoard of art treasures .

A delicious and authentic national cuisine .

Yet Italy is not perfect . Corruption still


reaches to the highest levels .
GEOGRAPHY
Italy is a peninsula , shaped rather like a boot ,
jutting out into the Mediterranean Sea .

Much of Italy is covered by mountains .

Italy includes two large islands : Sicily and


Sardinia .

There are also a few active volcanoes in Italy :


Etna , the largest active volcano in Europe ;
Stromboli ; and Vesuvius , the only active volcano on
the mainland of Europe .
GEOGRAPHY :
STATISTICS
Natural resources : Mercury , potash , marble , sulfur ,
dwindling natural gas and crude oil reserves , fish , coal ,
arable land
Land use
Arable land : 31 %
Permanent crops : 10 %
Permanent pastures : 15 %
Forests and woodland : 23 %
Other : 21 %
Irrigated land 27 , 100 km²
Natural hazards Regional risks include landslides ,
mudflows , avalanches , earthquakes , volcanic eruptions ,
flooding ; land subsidence in Venice
NORTH – SOUTH ITALY
DIVIDE
North Italy is close to the rest of Europe . It can sell
goods to these countries whereas South Italy is far away
from the rest of Europe .

North Italy has lots of people – a large population


whereas South Italy is less densely populated .

North Italy has very warm weather with some rain whereas
in South Italy is hot and dry .  

Many farmers in South Italy cannot afford to borrow


money to improve their farms but whereas in farmers in
North Italy can afford the best machinery .
NORTH – SOUTH ITALY
DIVIDE
Roads in North Italy are very good . They can easily get
to other areas . But Roads in South Italy are very poor .

The North has lots of flat land available for factories


but most of the land in the South is hilly .

People in South Italy are not well educated as compare


to North Italy .

Rampant unemployment and presence of Mafia and slow


growth in South Italy are the major problem faced by the
entire Italy as whole .

 
LANGUAGE
Italian is the official language of Italy , and 93 % of
population are native Italian speakers .

Around 50 % of population speak a regional dialect as


mother tongue .

Albanian is spoken by 0 . 2 % of the population , mainly in


the southern part of Italy , as too are Croatian and Greek .

Catalan is spoken in one city , Alghero , on the island of


Sardinia , by around 0 . 07 % of the population . On the rest
of the island , Sardinian is spoken by over 1m , which comes
to 1 . 7 % of the Italian population .
ECONOMY
It ranks as the world's sixth - largest industrial
economy and belongs to the Group of Eight ( G - 8 )
industrialized nations ; it is a member of the
European Union and the OECD .
Major Industries: textile production , clothing and
fashion , chemicals , cars , iron
Trade: Italy exports metals , textiles and clothing ,
production machinery , motor vehicles ,
transportation equipment , chemicals , wines and oil .
Imports include industrial machinery , chemicals ,
metals , food and agricultural products , and
transportation equipment .
Division of Labor: There is a great hierarchy of
prestige according to one's occupation .
ECONOMY
Quality of life index : Italy has a very high
standard of living , world 8 th highest quality of life
index .

Tourism : Italy is the fifth major tourist


destination and the fourth highest tourist earner in
the world .

GDP growth rate : - 1 %

The cities of Milan and Rome major European


financial and political centers .

Naples is characterized by high levels of


unemployment and organized crime .
CULTURE : ITALIAN FAMILY
VALUES
The family as epicenter .

Joint and Nuclear family

The family as support system


CULTURE: ITALIAN
STYLE
 Appearances matter in Italy .

The concept of 'bella figura' or good image is

important to Italians .

Clothes are important to Italians .


CULTURE: CATHOLICISM
The primary religion in Italy is Roman Catholic .

Catholics make up 87 . 8 % of the population , with 36 . 8 %


considering themselves practicing Catholics and 30 . 8 %
attending Church every Sunday .

According to the most recent Eurobaro meter Poll 2008 :

74 % of Italian citizens responded that they believe there is


a God

16 % answered that they believe there is some sort of spirit


or life force
DEMOGRAPHICS
The following demographic statistics are from the CIA
World Fact book , unless otherwise indicated .

Population estimate

61 , 020 , 000 ( I stat , January 1st 2009 )

Age structure

0 - 14 years : 14 . 03 % ( male 4 , 302 , 487 ; female 4 , 064 , 556 )


( 2008 )

15 - 64 years : 65 . 93 % ( male 19 , 647 , 451 ; female 19 , 658 , 810 )


( 2008 )

65 years and over : 20 . 04 % ( male 4 , 999 , 809 ; female


DEMOGRAPHICS
Population growth rate

- 0 . 047 % ( 2009 est .)

Birth rate

8 . 18 births / 1 , 000 population ( 2009 est .)

Death rate

10 . 72 deaths / 1 , 000 population ( July 2009 est .)


DEMOGRAPHICS
Gender ratio

At birth : 1 . 07 male ( s )/ female

Under 15 years : 1 . 06 male ( s )/ female

15 - 64 years : 1 . 02 male ( s )/ female

65 years and over : 0 . 72 male ( s )/ female total


population : 0 . 96 male ( s )/ female ( 2007est .)
DEMOGRAPHICS
This is a scheme of the religious composition of
Italian population ( 2008 , estimated ):
Christians: 53 , 550 , 000 ( 91 . 2 %)
Catholics: 51 , 600 , 000 ( 87 . 8 %)
Roman Catholics: 51 , 500 , 000 ( 87 . 6 %)
Eastern Rite Catholics: 100 , 000 ( 0 . 2 %)
Italo - Albanians : 60 , 000 ( 0 . 1 %)
Others ( Romanian - Catholics , Ukrainian Greek Catholics ,
Armenian Catholics , etc .): 40 , 000 ( 0 . 07 %)
CUSTOMS:MEETING
ETIQUETTES
Greetings

Italians are guided by first impressions .

Many Italians use calling cards in social

situations .
CUSTOMS: GIFT GIVING
ETIQUETTES
Do not give chrysanthemums .
  Do not give red flowers .
Do not give yellow flowers .
  If you bring wine , make sure it is a good
vintage .
  Do not wrap gifts in black .
  Do not wrap gifts in purple .
Gifts are usually opened when received .
CUSTOMS: DININNG
ETIQUETTE
If invited to an Italian house :

  If an invitation says the dress is informal , wear


stylish clothes that are still rather formal , i . e .,
jacket and tie for men and an elegant dress for
women .

  Punctuality is not mandatory .

  If you are invited to a meal , bring gift - wrapped


such as wine or chocolates .

  If you are invited for dinner and want to send


flowers , have them delivered that day .
CUSTOMS: TABLE
MANNERS
Remain standing until invited to sit down . You may be
shown to a particular seat .

Table manners are Continental .

  Follow the lead of the hostess .

Do not keep your hands in your lap during the meal ;


however , do not rest your elbows on the table either .

  It is acceptable to leave a small amount of food on your


plate .
FOODS OF ITALIANS
Italians are known throughout the world for

pizza , pasta , and tomato sauce .

Italians are known for their use of herbs in

cooking .

Cheese also plays an important role in Italian

cuisine .
LABOUR LAWS
1 . Is it a legal requirement that No , a contract can be oral or in
employees must receive an employment writing .
contract ?

2 . What factors constitute a fair A substantial reason or breach of


dismissal i . e . legally justifiable terms that prevents the continuance of
reasons to terminate employment the contract . The reason has to be
without the need to pay compensation? related to personal facts , which
breaches the trust of the employment
relationship .
3 . What is good practice with regard to Notice must be provided - employee has
dismissal procedures to minimize the 15 days to ask for a reason - employer
risk of claims for unfair dismissal? must reply in 7 days or the notice is
void .
4 . If an employee is dismissed unfairly If a dismissal is judged as unlawful
what is the financial range of an employer ( of more than 15 employees )
compensation that can be made to must reinstate an employee within
employees? three days . Alternatively the employee
can choose compensation equal to 15
month's wages . If the employer has less
than 16 employees , reinstatement or
compensation of between 2 . 5 to 6
month's wages is possible .
LABOUR LAWS
5 . Do employees have the right to be Yes
members of a trade union?

6 . Is there any legal requirement for Yes , to the national pension system
an employer to contribute to a pension ( 50 % financial responsibility )
for employees?
7 . What are standard maternity rights? A pregnant employee cannot be
dismissed in the year after the birth
of the child . Maternity leave : from two
months before the expected birth to
three months after the birth - 80 % of
salary paid by the employer .

8 . What are parental leave rights Until the child is one year old , the
( including paternity leave ) ? mother has the right to two daily
rest periods of one hour each - fully
paid . Until the child is eight year
hold , the parents can take up to 10
months leave , each of them not more
than six months , but if the father
takes at least three months , 11 months
leave is possible . Until the child is
three , eligible to 30 % salary , up to
six months maximum .
 

LABOUR LAWS
9 . When are employees eligible for When employment is terminated as a
redundancy payments? result of crisis , re - organization ,
conversion or reconstruction of a
business with more than 15 employees .

10 . What are the statutory redundancy 80 % of the monthly salary , but not
payment limits? exceeding € 880 per month .

11 . Can existing employees be No , not within EU law .


dismissed if you buy a business with
employees?
12 . Any other general legislation? The 'Employees' Statute' ( 1970 ),
regulations rights of the employees
e . g . trade union activity , right of
reinstatement if unlawfully dismissed .
Other legislation concerns sexual
discrimination , employment procedures
in relation to strikes and redundancy
funds .
POLITICAL LIFE
Government

Leadership and political official

Social problems and control

Military activity
HUMAN RESOURCE
POLICIES
The average employee in the Italy works for 38 . 5 hours
per week , 18 % of the Italy ’ s working population works
part - time .

14 . 8 % are on temporary contracts and 5 . 1 % of employees


started their job in the last 3 months .

12 . 9 % of the population aged 15 - 64 have undergone


tertiary education and almost 10 % of the Italy population
aged 25 - 64 take part in lifelong learning activities .

Italy citizens spend 12 . 2 % of GDP on pensions and their


average retirement age is 59 . 9 years .
STRATEGIES CHECKLIST:
FIAT
COST SAVING :

Reduction of operational costs

Control of overheads

Limitation of future liabilities

Pain sharing
STRATEGIES CHECKLIST:
FIAT
OPERATIONAL FLEXIBILITY :

Job flexibility

Pay and benefit flexibility

Operational flexibility
HR POLICIES AND
STRATEGIES CHECKLIST
HUMAN CAPITAL :

Encouragement of lifelong learning

Retention of know - how

Promotion of equal opportunities

Promotion of health and fitness


STRATEGIES CHECKLIST:
FIAT
PERFORMANCE EFFECTIVENESS :

Use of performance management methods

Improvement of recruitment process

Reduction of absenteeism

Prevention of fraud and theft


STRATEGIES CHECKLIST:
FIAT
CORPORATE CULTURE :

Family - friendly workplace

Corporate governance

Localization

Employee welfare
STRATEGIES CHECKLIST:
FIAT
LEGAL AND ETHICAL COMPLIANCE :

Safety

Employment

Privacy and security

Personnel accounting

Community
LABOUR UNION
Italian General Confederation of Labour ( CGIL )

Confederation of Trade Unions in Italy ( CISL )

Italian Workers Union ( UIL )


COMPENSATION AND
REWARDS
PERFORMANCE RELATED COMPENSATION :

Base Salary

Short - Term Incentive

Long - Term Incentive


COMPENSATION AND
REWARDS
TARGET DIALOUGE :

To strengthen personal performance through targets which


can be individually influenced and measured in numbers .

Targets for the Target Dialogue are set using a


cascading approach of corporate , team and individual
targets .

All targets in the Target Dialogue should be consistent


from Group to Team to Individual .

All targets in the Target Dialogue should be consistent


from Group to Team to Individual .
BUSINESS ETIQUETTES
RELATIONSHIP AND COMMUNICATION :
  Italians prefer to do business with people they know and
trust .

Italians much prefer face - to - face contact , so it is important


to spend time in Italy developing the relationship .

Italians are intuitive .

Networking can be an almost full - time occupation in Italy .


Personal contacts allow people to get ahead .

Italians are extremely expressive communicators . They tend to


be wordy , eloquent , emotional , and demonstrative , often using
facial and hand gestures to prove their point .
BUSINESS ETIQUETTES
BUSINESS MEETING ETIQUETTES :

Appointments are mandatory and should be made in

writing ( in Italian ) 2 to 3 weeks in advance .

Reconfirm the meeting by telephone or fax ( again in

Italian )

Many companies are closed in August , and if they are

open many Italians take vacations at this time , so it


BUSINESS ETIQUETTES
BUSINESS MEETING ETIQUETTES :

In the north , punctuality is viewed as a virtue and

your business associates will most likely be on time .

The goal of the initial meeting is to develop a

sense of respect and trust with your Italian

business colleagues .

Have all your printed material available in both


BUSINESS ETIQUETTES
BUSINESS NEGOTIATION :

In the north , people are direct , see time as money , and get
down to business after only a brief period of social talk .

  In the south , people take a more leisurely approach to life


and want to get to know the people with whom they do
business .

Allow your Italian business colleagues to set the pace for


your negotiations . Follow their lead as to when it is
appropriate to move from social to business discussions .
BUSINESS ETIQUETTES
BUSINESS NEGOTIATION :

Italians prefer to do business with high - ranking people .

Negotiations are often protracted .

Never use high - pressure sales tactics .

Decisions are often based more on how you are viewed by

the other party than on concrete business objectives .


BUSINESS CARD
Business cards are exchanged after the formal
introduction .

To demonstrate proper respect for the other person ,


look closely at their business card before putting it
in your card holder .

  It is a good idea to have one side of your business


card translated into Italian .

If you have a graduate degree , include it on your


business card .

Make sure your title is on your card . Italians like


knowing how you fit within your organization .
 
 PRESENTED BY :

DIVYA ARYA , GARGI RAPARIA , GAURAV DHANANJAY , GINCY VERGHESE


AND NEHA JHA


12/23/09 IBSB, ICFAI UNIVERSITY 42