Business Culture in India

Cross Cultural Management: Case for India Culture Geert Hofstede undertook a comprehensive study of how values in the workplace are influenced by culture. He collected and analyzed data from over 100,000 employees from 40 countries. From these results, and subsequent studies, he developed a model of five primary dimensions to differentiate cultures. Of course, as a generalized study the results may or may not be applicable to specific individuals or circumstances. And there may be more than one culture group within any given country. The five dimensions of the culture that influences business practices are: Power Distance Index focuses on the degree of equality, or inequality, between people in a given culture (society). A High Power Distance ranking indicates that inequalities of power and wealth exist within the country. A Low Power Distance ranking indicates the society de-emphasizes the differences between a citizen’s power and wealth. In these societies equality and opportunity for everyone are stressed. Individualism considers the degree the society reinforces individual or collective achievement and interpersonal relationships. A High Individualism ranking indicates that individuality and individual rights are stressed within the society. Individuals in these societies may tend to form a larger number of looser relationships. A Low Individualism ranking typifies societies of a more collectivist nature with close ties between individuals. These cultures reinforce extended families and collectives where everyone takes responsibility for fellow members of their group. Masculinity focuses on the degree the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. A High Masculinity ranking indicates the country experiences a high degree of gender differentiation. In these cultures, males dominate a significant portion of the society and power structure. A Low Masculinity ranking indicates the country has a low level of differentiation and discrimination between genders. In these cultures, females are treated equal to males. Uncertainty Avoidance relates to the level of tolerance for uncertainty and ambiguity within the society. A High Uncertainty Avoidance ranking indicates the country has a low tolerance for uncertainty and ambiguity. This creates a rule-oriented society that institutes laws, rules, regulation, and controls in order to reduce the amount of uncertainty. A Low Uncertainty Avoidance ranking indicates the country has less concern about ambiguity and has more tolerance for a variety of opinions. Long-Term Orientation focuses on the degree the society embraces long-term devotion to traditional, forward thinking values. High Long-Term Orientation ranking indicates the country prescribes to the values of long-term commitments and respect for tradition. This is thought to support a strong work ethic where long-term rewards are expected as a result of today’s hard work A Low Long-Term Orientation rank indicates the country does not reinforce the concept of long-term, traditional orientation. In this culture, change can occur more rapidly as long-term traditions and commitments do not become impediments to change. Geert Hofstede Analysis India as follows:  (See figure in next page) Power distance: highest i.e 80% Individualism: 45% Masculinity:  55% Uncertainty avoidance: 35% Dilip Jhunjhunwala MA (Eco.), MBA Email:  dilipjhunjhunwala@yahoo.com Geert Hofstede Analysis of India: Dilip Jhunjhunwala MA (Eco.),  MBA Email:  dilipjhunjhunwala@yahoo.com