Andr Alves

Valeria Cerball
DIVERSITY IN INDIA
Saniya Bopiyeva
Kristina Cheney
AGENDA

Importance of India
Diversity in Language
Regional Origin
Religious Diversity
Socioeconomic Status
Gender Issues

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IMPORTANCE OF INDIA

The back office of the World

2nd largest country in the World

Booming Economy

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DIVERSITY IN LANGUAGE
 DIVERSITY IN LANGUAGE

22 official languages

Thousands of dialects
and less spoken
languages

Most spoken: Hindi

(30% population)

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DIVERSITY IN LANGUAGE
Two main families: Indo-Aryan and
Dravidian

English: urban areas and academia

Also used as bridge between North-

South

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BUSINESS IMPLICATIONS
Strong accent non-Indians might not
understand

English skills may not be well

developed in some key actors in
negotiations

Diversity is a business opportunity

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REGIONAL ORIGIN
REGIONAL ORIGIN
Indians are very proud of their regional
or state identity. When two Indians
meet for the first time they often ask
each other, Where are you from?

The next step is to ask for a name

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 Whats in a name?

The last name or surname

conveys cultural
characteristics of the
person. They give away not
only the likely state of origin
but also the caste or sub-
caste backround of the
person.

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 Indian last names can also be derived from
professions their families were engaged in:

Batliwala= dealing in bottles

Carpenter=carpentry
Daroowala=dealing in alcohol
Engineer=engineering
Hazam=barber
Mistry=repair person
Pandit=priesthood
Rangwala=dealing in paints
Supariwala=dealing in betel nuts

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REGIONAL DIVISIONS
29 states
5 union territories
But Indias vast geographic diversity is
primarily considered in terms of the
North-South divide, based on linguistic
and cultural divisions rather than
geography.

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SOUTH INDIA
Although it occupies a
smaller portion on the
entire country, it has
received a great deal of
attention and prominence
during Indias recent
economic revolution.

South India has given

birth to many new
companies solely
devoted to offshore
development work,
creating a huge market
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the software
development and
 Bangalore,
Chennai and
Hyderabad are
representative
cities of the
South and have
become the
embodiment of
the 21st century
high-tech white-
collar revolution
in India

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NORTH-SOUTH COMPARISONS
Southern states: lower population density, higher literacy rates,
use English more, and have a larger number of educational
institutions on a per capita basis.
Stronger educational initiatives, infrastructure development,
less visible corruption in business and government have
generated more rapid economic growth in the South
Similar levels of poverty in rural areas, but urban poverty is
more clearly evident in the North
South: more religious, traditional in their social customs; less
impact of Islamic rule
South: more politeness and less aggressiveness in social and
interpersonal interactions

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OTHER MAJOR REGIONS AND THEIR
CHARACTERISTICS

Northwestern region:
The majority of the population are Hindus
(except for Jammu and Kashmir where more
than 2/3 are Muslim)
Considerable influence over national politics
New Delhi, the countrys capital, is the main
hub of the region
Uttar Pradesh is the indian state with the
largest population (over 160 millions)

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 Western region:
Gujarat and Goa are highly industrialized and
developed in comparison of most other states
Maharashtra is the biggest recipient of foreign
direct investment in the entire country.
Mumbai (Bombay), its capital has the worlds
largest film industry
Mumbai has also one of the highest urban
poverty rates in the world, and the highest
incidence AIDS in the country

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 Eastern region:
Kolkata (Calcutta) is the main hub of
the region and was a major industrial
center with an array of light and
medium manufacturing industries
The entire region has now become
one of the most economically
disadvantaged, mainly because of its
continued reliance on low-value
added industries and a lack of
serious government involvement in
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attracting newer industries
Bopiyeva Cheney
REGIONAL DIFFERENCES: BUSINESS IMPLICATIONS

Go beyond the immediate questions:

Foreign companies interested in India
should ask themselves questions about
workforce availability; infrastructure
development and incentives for setting
up operations; but it is also wise to look at
other factors such as boarder economic
climate; likely employee retention rates,
changing government regulations, and
political corruption
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 Do not generalize:
Regional comparative advantages
are changing rapidly; it is best to
avoid decisions based solely on
generalizations about a particular
city, state or region

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 Investors should examine not only the
current social and economic
infrastructure in large cities; but in
smaller cities as well

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 Interregional tensions are more likely to
exist in some state-owned enterprises
where the majority of the employees
belong to the same region and may be
inclined to exclude others.

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 70 percent of the population still lives in
villages or rural areas. But there is a
growing rural to urban migration trend.
Smaller towns are losing college graduates
because foreign or domestic investments
in offshore operations are concentrated in
major cities.
High-quality educational institutions and
trends toward urbanization may be the
solution for that in the long term.

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RELIGIOUS DIVERSITY
 RELIGIOUS DIVERSITY AND REGIONS
Table 4-3. SAMPLE INDIAN STATES AND RELIGIOUS GROUPS
Religion (% of Sample States and % of States with the Largest
population) Religious Group Number of
Adherents Practitioners (millions)
Hindus (80.5%) Himachal Pradesh Uttar Pradesh (133.90
(95.6%), million)
Orissa(94.4%),
Chattisgarh (94.7%),
Madhya Pradesh (91.1%),
Gujarat (89.1%)
Muslims (13.4%) Jammu & Kashmir Uttar Pradesh (30.74
( (67.0%), million)
Assam (30.9%),
West Bengal (25.2%),
Kerala (24.7%),
Uttar Pradesh (18.5%)
Christians (2.3%) Nagaland (90.0%), Kerala (6.00 million)
Mizoram (87%),
Meghalaya (70.3%),
Manipur (34.0%),
Kerala (19.0%)
Sikhs (1.9%) Punjab (59.9%), Punjab (14.59 million)
Haryana (5.5%),
INDIAN SECULARISM

The Indian Constitution has

guaranteed religious freedom since its
inception in 1950.

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 the ethos of religious and other kinds
of tolerance in India goes back to the
era of Emperor Ashoka in the third
century B.C.

the sects of other people deserve

reverence for one reason or another is
certainly among the earliest political
defenses of tolerance anywhere.

- UNDP Human Development Report

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(2004)
RELIGION AND LITERACY RATES

Indias overall literacy rate for people

age seven and above is 64.8%.

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Religious Group Literacy rate (in
%)
Jain 94.1%

Christians 80.3%

Buddhists 72.7%

Sikhs 70%

Hindus 65.1%

Muslims 59.1%
 Muslims were considered to be outside
of the caste system and had less
educational opportunities because of
higher poverty rate.

Most of the Jain population lives in

urban areas and its primary
occupational activities are on the fields
of industry, commerce, and professional
services.
- Jain group
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RELIGION IN THE INDIAN WORKPLACE
Religion is not a factor in
the hiring practices.

Hierarchy is an important
concept in Hindu paradigm.

Religious affiliation affects

the way that employees
arrange their work-spaces
as well as their own
personal dress and
appearance.

The visibility of these

religious practices is in
sharp contrast with the
West.
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 Indias complex
holiday calendar
reflects aspects of
its religious diversity
as well as key
secular events.
Secular National

Holidays:
- Republic Day
(January 26)
Independence Day

(August 15)
Mahatma Gandhis

Birthday (October 2)
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WORKPLACE IMPLICATIONS OF INDIAS
RELIGIOUS DIVERSITY

New company projects can be

launched with a token religious
worship or ceremony.

Indian employees may request

unplanned or sudden leaves of
absence for weddings and other
family ceremonies.
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 Traditionally minded employees may
refrain from making any critical
decisions or starting an important
task during inauspicious times.

A company may have to provide a

designated space as a ritual room for
prayers.
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RECOMMENDATIONS
Respect the religious beliefs of all segments
of the Indian society.
Challenge the religious beliefs of your

working surrounding can become a serious

demotivating factor for them.
You should always try to participate in some

of the local religious holidays.

There are certain areas where religious

tensions may sometimes arise. Try to keep

an eye on the news and take precautionary
measures to avoid any harm to your
employees.
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SOCIOECONOMIC STATUS
SOCIOECONOMIC STATUS
A constantly evolving caste system

Division of labor/occupation
Brahmins: scholars, top of social ladder
Dalits (Untouchables): leather workers,
toilet cleaners, bottom of social ladder

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REFORM
Mahatma Gandhi: children of God

Effort to eradicate untouchability

1950 new Constitution

Education for formerly oppressed members

Reservation of positions
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SOCIOECONOMIC STATUS: BUSINESS IMPLICATIONS

Gaps in living standards, disparity between rich

and poor still exist

Reform has created pool of human resources:

corporate social responsibility

Promotion based on merit

Increased loyalty

Retention of talent
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GENDER ISSUES
GENDER ISSUES IN INDIA
YOU CAN TELL THE CONDITION OF A NATION BY LOOKING AT THE STATUS OF ITS WOMEN.

Traditionally male dominated society

Women caught between tradition and

modern reality (business world)

Generation gap

Women continue to be victims of

discrimination
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WOMEN IN THE WORKFORCE
Acceptable positions according to caste and social
group
More equality in skilled labor
Non-preferred employment:
Law enforcement, restaurant staff, security
Rural:
Teaching, healthcare, government agencies, rural
banking
Urban:
Medicine, healthcare, scientific research, airlines,
administration

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BUSINESS IMPLICATIONS
Number of skilled women in workforce continues
to grow

20-25 percent of IT sector

Low gender-based salary differential

Low attrition rates lends stability in business

Women prove to be excellent workers

Still facing many challenges

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PROFILE OF INDIAN NEGOTIATOR
Respectful
Tries to reach compromise
Not aggressive
Honest
Persistent
Trusts his/her instincts
Applies his/her strenghts
Committed
WHAT CAN WE TAKE AWAY?
Helping empower women through
education, job training opportunities,
healthcare, and benefits improve the
reputation of corporations

Discovering economically and culturally

diverse regions can assist companies in
realizing the potential of India
WHAT CAN WE TAKE AWAY?

It is useful to have local liaisons to

assist in language issues

Regional origin still matters

teambuilding

Respect religion diversity