Special Projects Team:

Jiong Zhang
Mikael Thakur

SCHULICH SCHOOL OF BUSINESS -YORK UNIVERSITY

4700 Keele Street, Toronto, Ontario, M3J 1P3
Masters of Business Program
TABLE OF CONTENTS

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1.0 INTRODUCTION

Due to rapid technology advancement, we now live in a small world with a global

marketplace. Foreign ideals and culture are easily spread and adapted by

indigenous people in all corners of the globe via radio, television and now

especially, computers software and the Internet. This whole dilemma has been

termed as Globalization. The concept of globalization refers to increasing global

connectivity, integration and interdependence in the economic, social,

technological, cultural, political and ecological spheres. Industrial globalization has

taken its grip and businesses are going across the cultural boundaries. Worldwide

production markets and broader access to a range of goods for consumers and

companies is available. Globalization has some pros and cons. The convergence

enhances the communication level between cultures. On the other hand, with

globalization cultural differences are also highlighted.

India is a country of both diversity and continuity. It is a creative blend of cultures,

religions, races and languages. The nation’s identity and social structure remain

protected by a rich cultural history that dates back at least 5,000 years, making

India one of the oldest civilizations in the world. The country is the largest

democracy country in the world with political consensus on reforms and stable

democratic environment in over 50 years of independence. With its consistent

growth performance and abundant highly skilled manpower provides enormous

opportunities for investments.

One of the fundamental components of Indian culture is an understanding of the

traditions and ways of communicating with others that form the basis of India’s

society. Understanding the comparative strengths and the internal dynamics of the

India is essential for conducting business in the country and for policymakers.

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The purpose of this report is to document our succinct cultural analysis and provide

recommendations that will improve cross cultural management issues between

Amalgamated Conglomerated Industries and businessmen in Mumbai India. The

paper illustrates how business practices and managerial values are functional to

cultural synergy. Research for this document was obtained through primary and

secondary research.

2.0 CULTURE

“I do not want my house to be walled in on all sides and my windows to be

stuffed. I want the cultures of all the lands to be blown about my house as
freely as possible. But I refuse to be blown off my feet by any.” -
(Mahatma Gandhi )

India, home of the sacred River Ganges and the Himalayan Mountains, has a history

of invasion and migration that has influenced both its culture and its economy.

Following the economic reform process of 1999, India’s market has continued to

strengthen and expand. Geographically, India benefits from its close proximity to

the major Indian Ocean trade routes and together with the country’s rich centre of

mineral and agricultural resources, India’s economy is witnessing significant inflows

of foreign direct investment (FDI). India is also recognized for its fiercely competitive

education system and is one of the largest providers of experienced scientists,

engineers and technicians, making it an attractive market for foreign business.

India is a complex country, and those arriving here to do business will discover that

the path to success is often, not very smooth. The culture of India has been

shaped by the long history of India, its unique geography and the absorption of

customs, traditions and ideas from some of its neighbors as well as by preserving its

ancient heritages, from the Indus Valley Civilization onward. India's great diversity

of cultural practices, languages, customs, and traditions are examples of this unique

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co-mingling over the past five millennia. India is also the birth place of several

religious systems such as Hinduism, Jainism, Buddhism, and Sikhism(See Appendix

3), some of which have had a great influence also in other parts of the world. From

the thirteenth century onwards, following the Islamic conquests and the subsequent

European colonialization, the culture of India was influenced by Turkish, Persian,

Arabic and English cultures. The various religions and traditions of India that were

created by these amalgamations have influenced South East Asia and some other

parts of the world.

2.2 MUMBAI

The culture and population of Mumbai is extremely diverse and throughout India

nowhere one can see such varied and diverse blend of people. At present the

population of Mumbai is around 18 million1 and the density of population in the city

is around 45, 662 persons per square kilometers1. A survey conducted on the

population of Mumbai's population suggests that more than 50% of the city's total

population is of non Maharashtrian identity. Among the major groups that has made

Bombay their home away from home are the Gujratis, the South Indians, the Parsis

and Sindhis and a large number of people from the states of Uttar Pradesh and

Bihar that are scattered all over the city.

2.2.1 Culture of Mumbai:

Mumbai is regarded as one of the most liberal and a cosmopolitan city of India and

the life there is very fast paced. The residents of Mumbai are called as Mumbaikar.

Mumbai has one of the largest networks of local trains in the world. Most of the folks

here prefer to stay in proximity to a railway station for an easy access to the

1
The census states that Mumbai population is 18MN, however there is an incalculable
number of people living in the streets. Some estimate this number to be just as high as the
known population number.

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metropolis. Many people particularly the city dwellers are left with very little time

for leisurely activities due to a significant amount of their time spent in commuting.

There is a carefree attitude in the air of Mumbai. The city embraces many concepts

that are a taboo in many other prominent Indian cities. Undoubtedly the city can be

stated as a melting pot of numerous cultures from different parts of India. Mumbai

is also the centre of the second largest film industry next to Hollywood – aptly

referred to as Bollywood. The cinemas are often packed and cultural taboos are

often the theme of movies.

Even though the city is overcrowded in every available space there is a uniqueness

that reflects in every aspect of the culture of city such as the food, festivals,

architecture, and art. Mumbai is one of the few cities of India that celebrates almost

each and every festival of the Hindus, Muslims, Sikhs, Christians, Parsis and the

numerous other communities that dwell in the city. Among the most famous

celebrations are the Ganesha festivals, diwali, holi, Christmas, Id, and Moharram.

2.2.2 Navi Mumbai - The New Mumbai

Mumbai, is projected by 2015 to be the planet's second most populous metropolis,

after Tokyo2. But it's already a world of its own. Inside the city’s other temples the

so-called “lifestyle shopping malls” no one’s afraid of conspicuous consumption, no

matter what Gandhi said about the virtues of self-restraint2. Young urbanites

working in India’s business process outsourcing industry sit together at posh

restaurants with the latest iPhone or Blackberry Rim in hand who live in Manhattan-

priced condos and attend clubs similar to those in western countries. Mumbai is

where Wall Street gets equities analyzed, where Kellogg, Brown & Root sources

kitchen staff for the U.S. Army in Iraq, and where your credit-card details may be

2
Gandhi Systems of Virtues: Wealth without Work, Pleasure without Conscience, Science without Humanity,
Knowledge without Character, Politics without Principle, Commerce without Morality, Worship without Sacrifice

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stored or stolen. It's where a phone operator who calls herself “Mary”, but it’s really

“Meenakshi”, sells Americans on two-week vacations that include a visit to the Taj

Mahal and concluded with cut-rate heart surgery 3. Almost 40% of international

flights to India land in Mumbai delivering thousands of new visitors every day with

an increasing number of whom that stay for good. The reason is simple: to know

Mumbai is to know modern India. It's the channel for a billion ambitions and an

emblem of globalization you can reach out and touch, a giant city where change is

pouring in and rippling out around the world.

2.2.3 Canadian Culture

Canada’s culture, like that of most any western country in the world, is a product of

its history, geography, and political system. Initially it has been shaped by the

aboriginals, the English and the French, where English and French being declared as

both being the official languages. Canada has been shaped by waves of immigration

that have combined to form a unique blend of customs, cuisine, and traditions that

have marked the socio-cultural development of the nation. Multiculturalism,

officially endorsed in Section Twenty-seven of the Canadian Charter of Rights and

Freedoms4, has a large influence on Canadian culture, which is post-ethnic and

trans-national in character. Official symbols of Canada include the maple leaf,

beaver, and the Canadian Horse5. Many official symbols of the country such as the

flag of Canada have been changed or modified over the past few decades in order

to 'Canadian-ize' them and de-emphasize or remove references to the United

Kingdom.

Canada's federal government has influenced Canadian culture with programs, laws

and institutions. It has created crown corporations to promote Canadian culture

through media, such as the Canadian Broadcasting Corporation and the National

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Film Board of Canada, and promotes many events which it considers to promote

Canadian traditions. It has also tried to protect Canadian culture by setting legal

minimums on Canadian content in many media using bodies like the Canadian

Radio-television and Telecommunications Commission6.

3.0 COMPARATIVE CULTURAL ANALYSIS

3.1. DEMOGRAPHIC DIFFERENCES

India’s workforce is preponderantly young. Large numbers are entering the

professional workforce at a time of rapid economic expansion that provides

increased opportunity for the well qualified and well connected. However, access to

professional education, socialization, entry and career advancement is still

disproportionately concentrated among social groups that have traditionally

dominated the professional fields. Despite its many strengths, the educational

system doesn’t provide sufficient trained talent for the job market, particularly the

IT sector that is the new economy’s engine for growth. This puts special pressures

on employers in India around finding, competing for, holding and cultivating the

skilled employees they need.

In the Canada the average age of the workforce is older, mirroring the age

demographics of the population7. Changes in Canadian society have brought an

unprecedented social diversity into the workforce, not only immigrants from all over

the world, but segments of the society previously excluded or under-represented in

the professions, especially in managerial and leadership roles. Corporate cultures,

employment policies and networks of influence have been forced to change. The

principal challenge for Canadian employers today lies less in finding diverse talent,

but in developing it and creating an environment that supports social cohesion amid

the diversity.

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3.2 HOW DIVERSITY IS DEFINED

Unlike In India where the main diversity categories are gender, religion, place of

birth (ethno-linguistic region) and, for Hindus the caste system, in Canada the

operative diversity categories are not only gender, race/ethnicity, national origin,

and religion, but also disability, age, marital status, immigration/citizenship status,

armed forces veteran status and sexual orientation. Discourse about diversity

distinguishes between social groups that are under-represented in the society’s

institutions of wealth, power and privilege, and are therefore “protected classes,”

and those that have had greater access to opportunities and professional

advancement.

3.3 LEGAL FRAMEWORKS

In Canada, the past two decades have seen the development of a robust system of

anti-discrimination legislation, including mechanisms for monitoring compliance and

redress for violations. It includes legal accountability up the corporate chain of

command for discriminatory or harassing behavior in the workplace. It includes

protection of employees from ‘hostile work environment’ situations and protection

against retaliation for bringing forward complaints. The success of a number of

lawsuits against corporate offenders has helped create a climate where

discriminatory practices are no longer considered acceptable, and the expected

social norm for corporations is compliance with the law.

By comparison, the legal safeguards redress mechanisms and monitoring processes

in India are less developed; discrimination in recruitment, selection and career

advancement are less likely to be aggressively challenged. In India the approach

toward correcting caste-based employment discrimination has been quantitatively

fixed reservations (quotas) in public-sector jobs, state-financed colleges and

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legislatures. The pros and cons of this approach are passionately debated, in ways

reminiscent of public controversies in the early days of civil rights and affirmative

action legislation more like the United States. Recent attempts by the Indian

government to extend the reservations system to the private sector have met stiff

resistance from Indian industry, and this initiative is now on hold. Backlash against

the existing reservations system has also won some legal victories. A sign of

voluntary change is the adoption by most of India’s major IT companies of the U.N.

Global Compact’s principles8 regarding the elimination of discrimination with respect

to employment and occupation.

4.0 FRAMEWORK OF CULTURAL ANALYSIS

When we examine different cultural aspects in India, we noticed that we can apply

the Schein’s model9of organizational culture and conduct an in-depth analysis to

help ACI adapt to Indian business culture and to leverage those cultural behaviors.

Schein’s model has three layers, which are artifacts, espoused values and basic

assumptions10. We also added to the Schein’s model an additional more layer, the

origin of culture behavior, to help business executives understand culture behaviors

more thoroughly.

The aspects we chose to analyze should be tightly associated with our business

operation. Therefore, we organized artifacts to four different categories which are

consistent with Hofstede’s four culture dimensions11. The following is our analysis:

4.1 SCHEIN’S MODEL OF ORGANIZATIONAL CULTURE

4.1.1 Power distance

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Artifacts: “When addressing a person, it is advisable to prefix the name with a

'Mr.', 'Mrs.’ or 'Miss', or the professional title of the person ['Doctor' or 'Professor']

unless the person asks you to refer to him by his/her first name. ”12

According to our research Indian people are very sensitive to the rank/position of

people, and such awareness shapes their behavior towards it. They are used to a

system of hierarchy in the work-place, senior colleagues are obeyed and respected.

Discussion is almost always lead by the most senior person. Supervisors are

expected to monitor an individual's work and shoulder the responsibility of meeting

deadlines.

Espoused Values: The harmony of society is based on the order of social status,

following this order is valued.

Basic assumption: Everyone is ranked in the society. People believe difference of

social status within all the organization. A person with higher rank in the

organization should be obeyed and respected, even though they may not always

make a wise decision. Hierarchy is efficient to maintain the organizational structure.

Origin: The hierarchy system is stemmed from the Indian caste system. Castes are

primarily associated with Hinduism but also exists among other Indian religious

groups. Castes and caste-like groups, those quintessential groups with which almost

all Indians are associated, are ranked. Within most villages or towns, everyone

knows the relative rankings of each locally represented caste, and people's behavior

toward one another is constantly shaped by this knowledge.13

4.1.2 Individualism/Collectivism

Artifacts: India is a collectivist culture and their strength is that they work well in

teams. Individuals tend to do things together, for example, if one person gets up to

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get tea, he may ask several people to follow. Indians usually have lunch together in

the office as oppose to eating alone. Moreover, In India, there is a noticeable lack of

privacy and a smaller concept of personal space, where several generations used to

live together under one roof. For Indian business practices this places an additional

importance on interpersonal contacts, avoidance of conflict and a more indirect

approach to communication.

Espoused Values: Being able to compromise and work with the group is valued.

Being able to maintain good relationship with people is valued.

Basic assumption: Collective interest is more important than individuals’ interests.

In order to be accepted by society, individual should maintain a good relationship

with team members.

Origin: Indian collectivism is derived from traditional Indian family values.

Historically, the traditional, ideal and desired family in India is the joint family.

“More often than not, it incorporates several generations, with grandparents, their

married and unmarried children and grandchildren living in the same house and

sharing a common budget.”14

These members eat the food cooked at one hearth, share a common income,

common property, are related to one another through kinship ties, and worship the

same idols. Indian people are raised this way, and the interdependence among

family members has been rooted in their value since they were young. Therefore it

creates a sense of harmony, interdependence and concern for others.

4.1.3 Masculinity/Femininity

Artifacts: Women in business are very common in India, and they are treated with

respect in the work place. However, one should wait for a female business

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colleague to initiate the greeting. Indian men do not generally shake hands with

women unless female initiate it. “Tula shanbhar mula hou det” (May you be the

mother of a hundred sons) is a common Hindu wedding blessing. In Mumbai they

say “ashta putra soubhagyawati bhav”, which mean “may u be a mother of bright 8

son’s” Statistics reveal that in India males significantly outnumber females and this

imbalance has increased over time.

Espoused Values: For parents, they value boys more than girls as boys generally

do more laborious tasks and are normally become the breadwinners. For a girl,

being good mother and housewife is valued.

Basic assumption: Women and men should take different roles in society, and

women should be family oriented.

Origin: India has witnessed gender inequality from its early history due to its socio-

economic and religious practices that resulted in a wide gap between the position of

men and women in the society. The origin of the Indian idea of appropriate female

behavior can be traced back to the rules laid down by Manu in 200 B.C 15.: "by a

young girl, by a young woman, or even by an aged one, nothing must be done

independently, even in her own house". "In childhood a female must be subject to

her father, in youth to her husband, when her lord is dead to her sons; a woman

must never be independent." Women's lives are shaped by customs that are

centuries old.

4.1.3 Uncertainty Avoidance

Artifacts：Indians appreciate punctuality but may not reciprocate it. It is advisable

to make appointments at least one month in advance and confirm them when

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arriving in India. A flexible schedule will prove useful. They prefer indirect

communication other than direct communication.

Espoused Values: Being able to bear uncertainty and to make decision without

concrete information is valued.

Basic assumption: Indian people

believe in fate/destiny/karma, which

take charge of many issues. They

believe human being don’t much

control over their lives, they should

accept everything as it is.

Origin: The uncertainty avoidance in India is relatively low compared with other

cultures. The concept of fatalism stems from one of the most characteristic traits of

Indian culture – spirituality. The notion of Karma and that everything happens for a
Figure 1. Hofstede
Dimensions
reason is still significant in the decision making process of many Indians. It also

influences the concept of time in India and as a consequence business negotiations

may take longer and are never rushed.

4.2 GEERT HOFSTEDE ANALYSIS

In the 1970s Hofstede developed four dimensions of culture based on an extensive

survey conducted among IBM managers in over 50 countries for work values and

subsequently developed those dimensions of culture compatible in a sense to the

business practices.

Hofstede defined culture as the collective programming of the mind which World

distinguishes the members of one group or category of people from another3.

3
http://radio.weblogs.com/0107127/stories/2003/01/16/cultureGeertHofstedesModel.html

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According to his findings individual behavior is determined by their mental

programming, however they have the ability to deviate from this and react in many

ways, which are different than their culture. Hofstede, in his theory, gave four

dimensions to culture: 1) Individualism/Collectivism(IDV) , 2) Power Distance(PDI, 3)

Uncertainty Avoidance(UAI), 4)Masculinity/Feminine,(MAS) and 5) Long Term

Orientation(LTO).

Understanding of these five dimensions will give ACI business managers the

knowledge to have meaningful and effective interactions between the two cultures.

Figure 1 graphs Hofstede’s cultural dimensions comparing India with Canada as well

as the world.

4.2 1Individualism/Collectivism

Individualism/Collectivism is the relationship between individuals and their fellow

individuals. Hofstede said that individualism stands for a society in which the ties

between individuals are loose. Everyone is looking after him or herself and their

immediate families only. Collectivism stands for a society in which people are

integrated into strong cohesive groups, which protect them throughout their lives.

Individualism is often regarded as the characteristic of a modernizing society, while

collectivism reminds us of both more traditional societies and the failure of the

communist experiments.

In India there is no standard for rewarding individuals of a company that are pro-

active in their career advancement. This concept is traditional to an individualistic

culture, which India is not. This means that we cannot expect ACI managers in India

to ask for decisions from an employee of a company without them contacting

someone of authority first. According to our research, religion is not the reason for

individualism. Some religions have a greater set of rules that need to be followed.

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Doing business in India involves building relationships. Indians only deal favorably

with those they know and trust - even at the expense of lucrative deals. It is vital

that a good working relationship is founded with any prospective partner. This must

take place on a business level, i.e. demonstrating strong business acumen, and at a

personal level, i.e. relating to your partner and exhibiting the positive traits of

trustworthiness and honour.

Canada has Individualism as the highest ranking in Hofstede’s Dimension, and is

indicative of a society with a more individualistic attitude and relatively loose bonds

with others. The populace is more self-reliant and looks out for themselves and their

close family members. Privacy is considered the cultural norm and attempts at

personal ingratiating may meet with rebuff.

Among high individualistic countries, success is measured by personal achievement.

Canadians tend to be self-confident and open to discussions on general topics;

however, they hold their personal privacy off limits to all but the closest friends.

If business dealings in India involve negotiations, always bear in mind that they can

be slow. If trust has not yet been established then efforts must be place on building

a rapport. Decisions are always made at the highest level. If the owner or director of

the Indian company is not present, the chances are these are early stage

negotiations.

4.2.2 Power Distance

Hofstede proposed Power Distance as the extent to which the organizations expect

and accept the unequal distribution of power. A high Power Distance ranking

indicates that inequalities of power and wealth have been allowed to grow within

the society. These societies are more likely to follow a caste system that does not

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allow significant upward mobility of its citizens. A low Power Distance ranking

indicates the society de-emphasizes the differences between citizen's power and

wealth. In these societies equality and opportunity for everyone is stressed.

The Hofstede analysis for India suggests a large power distance society and all

other measures are relatively moderate. This would be indicative of the fact that

India is in the midst of change. The traditional caste systems has been outlawed,

however the large power distance score indicates that the attitudes still remain.

As it can be seen in figure 1, India’s Power Distance score was very high for culture,

with a ranking of 77 compared to a world average of 56.5. This Power Distance

score for India indicates a high level of inequality of power and wealth within the

society. This condition is not necessarily subverted upon the population, but rather

accepted by the population as a cultural norm. In India, social hierarchies are very

much in place and even at work it is not easy to be friendly with one’s boss in most

organizations. Calling one’s boss by his first name is rare in India. In fact abuse by

seniors is also common and usually the employee is helpless and his only recourse

is to leave.

Canada's Power Distance is relatively low, with an index of 39, compared to a world

average of 55. This is indicative of a greater equality between societal levels,

including government, organizations, and even within families. This orientation

reinforces a cooperative interaction across power levels and creates a more stable

cultural environment.

It has been found that in most cultures there is a correlation between a country's

religion and the Hofstede Dimension ranking it has. The Hofstede Dimension that

correlates most with the Hindu religion is Power Distance the same as Atheists in

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China and Muslims. All three have a high level of Power Distance as the highest

correlating cultural dimension with their religions.

4.2.3 Masculinity/Feminine

This Hofstede Dimension concept of a culture refers to the distribution of roles

between the men and women in a cultural society. Studies revealed that men’s

values differ from those of the women. Men’s values are assertive and competitive

from one country to another. Women’s values of one country are modest and caring

and are similar to the values of another country. The assertive aspect of a culture

has been named masculine and the caring modest aspect has been termed as

feminine. In a masculine society men are supposed to be tough, focused and

assertive while women are supposed to be more modest and caring. On the other

hand in a feminine society both men and women are supposed be modest, tender

and concerned with the quality of life. Masculine individuals are characterized as

aggressive and money oriented. Feminine individuals are characterized as people

oriented and less interested in personal recognition.

India has Masculinity as the third highest ranking Hofstede Dimension at 56, with

the world average just slightly lower at 51. The higher the country ranks in this

dimension, the greater the gap between values of men and women. It may also

generate a more competitive and assertive female population, although still less

than the male population.

Applying the concept of masculinity to Canada the raw scores indicate similarities to

the world average which suggests a balance of assertiveness and modesty.

4.2.4 Uncertainty Avoidance

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This dimensions focuses on the level of tolerance for uncertainty and ambiguity

within the society - i.e. unstructured situations. 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, regulations, and

controls in order to reduce the amount of uncertainty. A low Uncertainty Avoidance

ranking indicates the country has less concern about ambiguity and uncertainty and

has more tolerance for a variety of opinions. This is reflected in a society that is less

rule-oriented, more readily accepts change, and takes more and greater risks.

India's rank in the Uncertainty Avoidance dimension is 40, compared to the world

average of 65. On the lower end of this ranking, the culture may be more open to

unstructured ideas and situations. The population may have fewer rules and

regulations with which to attempt control of every unknown and unexpected event

or situation, as is the case in high Uncertainty Avoidance countries. Normally a low

score is ‘good’, as it means that the society has fewer rules and does not attempt to

control all outcomes and results. It also means a greater level of tolerance for a

variety of ideas, thoughts, and beliefs and a high tolerance for ambiguity.

Canada has a similar score when it comes to the Uncertainty Avoidance measure at

43. The similar scores for both countries represent a call to attention for regional

managers, who must understand that there is minimal differing thought-process of

Canadian and Indian employees towards the future. Collaborating on complex

problems will be much easier as long as you have establish authority.

4.2.5 Long Term Orientation

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The final dimension of Hofstede’s analysis of culture is that of Long-Term

Orientation. This fifth element was recently added by Hofstede in an attempt to

incorporate more Eastern attitudes, and it is based on Confucian principles.

India's Long Term Orientation Dimension rank is 61, with the world average at 48. A

higher Long Term Orientation score can be indicative of a culture that is perseverant

and parsimonious. India has a very high score meaning that their culture is more

persistent and thrifty. Indian’s have a sense of shame that is shared amongst a

group of people and relationships are viewed by order of status. It is expected that

the Indian businessperson will need to plan further out in their business plans

because of their need for Long-Term Orientations. It’s interesting to note that even

when Indians travel abroad they work very hard and sacrifice a lot for long-term

benefit, which is the education of their children. Staying put in one job is also an

indication of long term orientation and this once was very common in India,

however this is changing due to economic growth.

Canadian's ranks low in this dimension at 23, compared to the average of 45. This

low ranking is indicative of a societies' belief in meeting its obligations and tends to

reflect an appreciation for cultural traditions.

5.0 RECOMMENDATIONS

Based on our succinct analysis of Indian culture, the following are our

recommendations that will ensure ACI’s vested interest in doing business in India to

be a success in all fronts. Successful implementation of these recommendations will

require ACI organizational cultural competencies, business strategy, and ability to

adapt to change.

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1. CROSS-CULTURAL TRAINING

We have tried to cultivate special training programs for those dealing with

international business as a means of reducing the size and effectiveness of the so

called “cultural shock”. Thus, one goal of cross-cultural training programs is to give

international assignees skills and strategies that will help them through this process

of adjustment.

The training will include three parts. First part is a basic introduction about general

culture differences. For those people who never went aboard and worked in a

different culture, they will be amazed that an exotic culture has so many different

norms and underlying assumptions. Second part will introduce some inter-cultural

management models (Schein’s model, Hofstede’s five dimensions, and MCI model)

and theories that can apply to different cultural background in general. Finally the

last part will be specific Indian cultural training, including key concepts and values,

Indian business practice training (management style and communication methods)

and Indian business etiquette training. This training will help our employees to

understand the differences, bridge the gaps and manage these differences.

Training may also be provided to family members accompanying the expatriate.

While the employee has the inherent support and structure of their work, the

spouse and children often have greater difficulty in the cultural adjustment process

since they may have greater daily contact with the host society.

2. ORGANIZATION STRUCTURE

Working successfully with individuals unlike ourselves is difficult and requires

change. When change is not successfully managed in culturally diverse work

groups, the disadvantages can reduce the productivity of the organization. Diversity

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in work groups increases ambiguity, complexity, and confusion. As a result, these

groups may have difficulty converging meanings, reaching a single agreement, and

agreeing on courses of action. However, ACI can minimize this risk by creating

proper organization structure.

Indian people are good with teamwork, and they prefer the hierarchy organization

system. So it’s suggested we setup pyramidal power structure. We should arrange

Canadian expatriates to work with an Indian team and assign their roles as team

leaders, their responsibility will be monitoring, checking and look after the

subordinators. In general, subordinates are not expecting to participate in the

decision making process and hardly turn down the request for their superior,

making them hard workers. However, some micro management and clear guideline

of work will be needed.

3. COMMUNICATION IMPROVEMENT

The inability to convey meaning and reach agreements reflects the communication

within the groups. A work group cannot function properly without proper

communication. In any type of the relationships, especially in a group,

communication is the key to understanding and solving problems. The perceptions

of time, space, and business practices can disrupt effective communications. Being

alert and sensitive to cultural cues and context before speaking is the first step in

overcoming cultural communication barriers. Because Canadians prefer direct

communication while Indians prefer indirect communication, it would be quite

possible that miscommunication inside the organization between the Canadian

managers and Indian subordinators. Moreover, because Indian employees are very

sensitive to the ranks between the colleagues, they probably will not directly point

out the false direction of the company strategy and give negative feedback. In order

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to improve the communication between the management and employees, we

recommend that ACI to setup an email account to accept anonymous emails from

the employees. It will be efficient method to get feedback from employees.

Even though English is widely spoken in Indian corporate culture, the meaning of

words and expressions may not be similar. The form of English that Indians are

taught in school is essentially ‘British English’, and as you know Canadian English

and British English differ immensely. However, ACI should be aware that Indian

English is evolving. The grammar of Indian English has many distinguishing

features, of which perhaps the best-known are the use of the present continuous

tense, as in 'He is having very much of property', and the use of ‘isn't It’ as a

ubiquitous question tag: 'We are meeting tomorrow, isn't it?'. Verbs are also used

differently, with speakers often dropping a preposition or object altogether. To ‘read

between the lines’ so to speak, we recommend that you review the common idioms

listed in Appendix 4 and be aware that even though you may be speaking the same

language you may be communicating something completely different. Our best

recommendation for this will be to just to learn the differences through osmosis. ACI

managers will eventually understand the difference and pick up some slang as well.

4. SCHEDULING AND APPOINTMENT

In order to meet the schedule of business operation, we need to keep on track of

the business process and always confirm the schedule with Indian workers. To make

an appointment with a major client it is acceptable to allow some flexibility in the

time arrangement. In order to get everything on schedule, we should plan in

advance and setup some allowance in the project management system.

5. CONTRACT NEGOTIATION

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In general, Indians are cautious in accepting a new ideas or proposals. Openness to

a new idea depends not only on its quality, but also on its source and endorsement.

That is, information about whom else has implemented it or who has proposed it

has a major influence on the decision about a new idea. In making a proposal, you

must include such details accordingly.

Indians usually do not express their disagreements openly and directly; doing so

would be considered discourteous. Instead, when differences arise, they may

circumvent them by statements such as 'we will discuss this later' or 'I will have to

check with others about this.'

Bargaining for the price or additional concessions is normal in India. Indian

negotiators expect and value flexibility in negotiation. Therefore, sometimes a

straightforward offer may be perceived as a rigid stand. It is always advisable to

build some buffers in one's initial offer, which allow for bargaining later.

Do not insist on commitment in the first meeting. Making a decision, in Indian

organizations, is often a long-drawn out process. This is not only because of the

bureaucratic nature of many Indian organizations, but also because a decision may

have to be ratified by people who may not be present at the negotiating table.

6. GENDER ISSUES

Business women are well-educated and respected in Indian society. Be aware of the

gender gap in the Indian society will help the organization operating properly.

Displays of affection in public are considered inappropriate and sometimes illegal.

24 | P a g e
 6.0 APPENDICES

APPENDIX 1 : SURVERY QUESTIONNAIRE

Indian culture Survey questionnaire

As you understood part of Indian culture, please choose what you prefer as an
Indian.

Neither Agree

Strongly Nor Strongly

Agree Agree DisagreeDisagree

Disagree

1. It is ok to be little late for a meeting. 1 2 3 4 5

2. Promotion is one incentive to work hard. 1 2 3 4 5

3. If situation is not under control, nothing we can do 1 2 3 4 5

about it.

4. Keeping a good relationship with co-workers is 1 2 3 4 5

an important part of my job.

5. It is not polite to deny other’s request directly. 1 2 3 4 5

6. It is good habit to save money for future. 1 2 3 4 5

7. I think man should do better jobs than woman on most things. 1 2 3 4

5

25 | P a g e
8. It is necessary to get good education before going to work. 1 2 3 4 5

9. I would do whatever my boss told me to do even if 1 2 3 4 5

I don’t think his decision is bright.

10 For project planning, it is important to allow some flexibility. 1 2 3 4

5

11. I prefer working with a team other than working alone. 1 2 3 4 5

12. Women should take care of family and children. 1 2 3 4 5

13. It is necessary to hang out with colleagues after work. 1 2 3 4 5

14.I think people are born to be smart, repected and wealthy. 1 2 3 4 5

15.I like to plan for long term other than short term. 1 2 3 4 5

16.I like to marry a woman who is family oriented. 1 2 3 4 5

17.I believe fate. 1 2 3 4 5

18.I think people are not equal since the day they were born. 1 2 3 4 5

19.If I want to have good life, I should start to plan now. 1 2 3 4 5

20.I don’t want my wife to work to support family. 1 2 3 4 5

26 | P a g e
Survey Results :

Name of 1 1 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
respondents 8 9 0
Ashish
2 1 2 1 2 2 1 2 2 3 1 2 2 2 3 1 1 1 1 3
Ghangrekar

Aniket Choudary 2 1 1 2 1 3 2 2 1 2 2 2 2 1 2 1 2 1 1 2

Stuart Browne 3 3 1 3 2 3 1 1 2 3 2 2 1 4 2 2 3 2 2 3

1. 1. 2. 1. 1. 1. 2. 1. 2. 1. 2. 2. 1. 2. 1. 1. 2.
Average 2.3 1.3 2.0
7 7 7 3 7 7 7 7 0 7 3 3 3 0 3 3 7

Question 1,3,10,17 are about uncertainty avoidance, if they answered stronger agree(1), then
thhave high UAI.
Question 2,9,14,18 are about Power distance, if they answered stronger agree(1), then they
have High PDI.
Question 4,5,11,13 are about Individualism, if they answered stronger agree(1), then they
have Low IDV.
Question 6,8,15,19 are about Long term orientation, if they answered stronger agree(1), then they
have High LTO.
Question 7,12,16,20 are about Masculinity, if they answered stronger agree(1), then they have
High MAS.

(weighter
average)
UAI 2.1 High
PDI 1.8 High
IDV 1.8 Low
LTO 2.0 High
MAS 1.8 Low

Since we don't have comparison data for the survey, Our survey results just show a
relatively high or low on different culture dimensions.

Intervie Description
wee

1 Indian national, worked in

India

2 Indian national, worked in

India & Canada

3 Canadian (white) national, did

business in India

27 | P a g e
APPENDIX 2 : LITERATURE AND MOVIE RECOMMENDATIONS

Movie Recommendations:

BOMBAY: OUR CITY

This movie tells the story of the daily battle for survival of the 4
million slum dwellers of Bombay who make up half the city's
population. Although they are Bombay's workforce - industrial
laborers, construction workers, domestic servants - they are
denied city utilities like electricity, sanitation, and water. Many
slum dwellers must also face the constant threat of eviction as
city authorities carry out campaigns to "beautify" Bombay.

I for India

In 1965 Yash Pal Suri left India for the U.K. The first thing
he does on his arrival in England is to buy 2 Super 8
cameras, 2 projectors and 2 reel to reel recorders. One
set of equipment he sends to his family in India, the
other he keeps for himself. For forty years he uses it to
share his new life abroad with those back home - images
of snow, miniskirted ladies dancing bare-legged, the
first trip to an English supermarket - his taped thoughts
and observations providing a unique chronicle of the
eccentricities of his new English hosts. Back in India, his
relatives in turn, respond with their own 'cine-letters'
telling tales of weddings, festivals and village life.

As time passes and the planned return to India becomes

an increasingly remote possibility, the joy and curiosity
of the early exchanges give way to the darker reality of
alienation, racism and a family falling apart.

A bitter-sweet time capsule of alienation, discovery, racism and belonging, "I for
India" is a chronicle of immigration in sixties Britain and beyond, seen through the
eyes of one Asian family and their movie camera.

Book Recommendation:

CHINDIA – Published by Business Week

China's growth and manufacturing dominance are two of the biggest

global trends of the last 10 years. India's technology, service, and
outsourcing industries make it a valued partner, as well as a
formidable competitor.

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The stunning rise of China and India makes it clear: to survive and thrive in the new
global market, you have to engage with China and India. This comprehensive guide
is your road map to meeting this challenge. The book combines frontline reports
from BusinessWeek's award-winning Asia staff with point-by-point commentary by
the experts, including new introductions to each chapter by BusinessWeek's Pete
Engardio.

This up-to-date exploration includes award-winning special reports on key issues

such as manufacturing (“The China Price”) and technology (“The Rise of India”). It's
filled with the crucial information you need to compete-from the world's most widely
read business magazine.

Doing Business in India

By Rajesh Kumar, Anand Sethi

This short book first explores India’s history and cultural

background, and then provides guidelines for doing business in
India. The historical background may seem remote from day-to-day
business considerations, but, in fact, it is essential to understanding
the apparent anomalies of Indian negotiating styles, management
behavior, government policies and so forth. getAbstract urges
readers to be patient with the book’s small type and sometimes
convoluted sentence structure, for if you are, you will discover much
to reward you. The authors examine business challenges in India,
including strategic planning, personnel management, government relations,
negotiations and conflict resolution. Any manager investing in, working in or
outsourcing to India will find this book very useful.

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APPENDIX 3 : RELIGIOUS DEMOGRAPHICS

Religious
Population * (%)
Composition
Hindus 827,578,868 80.5
Muslims 138,188,240 13.4
Christians 24,080,016 2.3
Sikhs 19,215,730 1.9
Buddhists 7,955,207 0.8
Jains 4,225,053 0.4
Other Religions &
6,639,626 0.6
Persuasions
Religion not stated 727,588 0.1
Total * 1,028,610,328 100

Source :
http://www.censusindia.gov.in/Census_Data_2001/India_at_glance/religion.aspx

30 | P a g e
APPENDIX 4 : COMMON INDIAN IDIOMS

• Condoled - as in 'The railway minister condoled the families of those killed in

the accident'.
• Gone for a six or Taken a six - to mean something got ruined. (Origins linked
to game of Cricket)
• Eve-teasing - 'Sexual harassment'
• Pre-cap - 'like re-cap at beginning of serial TV show, a pre-cap at the end
previewing the next one'
• Convented - 'A girl educated well in Christian convent-style school'
• I got a firing/I was fired by him - 'I got yelled at by him'
• Sharma sir is not here - same as Sharma-ji is not here, a respectful address.
No knighthood suffix.
• I will make a move now - means 'I'm leaving', not 'making a move on
someone', or anything related to chess.
• Where are you put up? means 'Where do you live'?. Heard often in S.India.
• Where do you stay? is the same as 'Where do you live?' or 'Where's your
house?'
• Cheap and best means good quality at a low price - a great deal
• I don't take meat/milk/whatever - 'I don't eat meat/ drink milk' etc
• It is worst - 'It is really bad or of very poor quality'.
• She is innocently divorced or divorced (innocent)- not the party at fault, or
the marriage was not consummated..
• Wheatish complexion - Seen in matrimonial ads. Means 'not dark skinned,
tending toward light'
• "Your good name please?": "What is your name?", carryover from Hindi
expression "Shubh-naam", literally meaning "auspicious name". This is similar
to the way Japanese refer to the other person's name with an honorific "O-"
prefix, as in "O-namae" instead of the simple "namae" when referring to their
own name. It is also an indication that the questioner wants to know the
person's formal or legal given name, as opposed to the pet name s/he would
be called by close friends and family.
• "Out of station" to mean "out of town". This phrase has its origins in the
posting of army officers to particular 'stations' during the days of the East
India Company.
• "Join duty" to mean "reporting to work for the first time". "Rejoin duty" is to
come back to work after a vacation.
• "Hello, What do you want?": used by some when answering a phone call, not
perceived as impolite by most Indians
• "Tell me": used when answering the phone, meaning "How can I help you?"
• "send it across" instead of "send it over", as in "send the bill across to me"
instead of "send the bill over to me".
• "order for food" instead of "order food", as in "Let's order for sandwiches".

31 | P a g e
 • "What a nonsense/silly you are!" or "Don't be doing such nonsense any
more.": occasional - idiomatic use of nonsense/silly as nouns (although this
use of nonsense is not uncommon in British English).
• "pass out" is meant to graduate, as in "I passed out of the university in
1995."
• "go for a toss" is meant to go haywire or to flop, as in "my plans went for a
toss when it started raining heavily."
• "funny" is meant to replace not only "odd"/"strange" but
"rude"/"precocious"/"impolite" as well. "That man was acting really funny with
me, so I gave him a piece of my mind"
• "on the anvil" is used often in the Indian press to mean something is about to
appear or happen. For example, a headline might read "New roads on the
anvil".
• "tight slap" to mean "hard slap".
• I have some doubts - 'I have some questions'

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7.0 REFERENCES

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1
Mumbai Geography. URL: http://www.mumbainet.com/template1.php?CID=15&SCID=3.
Date retrieved: July 20, 2008.
2
Citizendium - The Citizens Compendium http://en.citizendium.org/wiki/Mumbai Date
retrieved: July 20, 2008.
3
Time Magazine “Outsourcing your heart”. Url:
http://www.time.com/time/magazine/article/0,9171,1196429,00.html. Date retrieved: July
17, 2008.
4
Canadian Charter of Rights (Overview). URL:
http://en.wikipedia.org/wiki/Section_Twenty-
seven_of_the_Canadian_Charter_of_Rights_and_Freedoms. Date retrieved: July 10, 2008
5
Canadian Symbols. URL: http://en.wikipedia.org/wiki/Culture_of_Canada. Date
retrieved: July 10, 2008
6
Median and Canadian Cultural Policies.URL: http://www.media-
awareness.ca/english/issues/cultural_policies/index.cfm. Date retrieved: July 12,2008
7
The Canadian Workforce - Statistics Canada. URL:
http://canadaonline.about.com/cs/statistics/a/workforcestats.htm.

Date retrieved: July 12, 2008.

8
United Nations Global Compact 'Ten Principles'. URL:
http://www.unglobalcompact.org/AbouttheGC/TheTENPrinciples/index.html. Date
retrieved: July12,2008.
9
Schein, Edgar. Organizational Cultural & Leadership. 1997.
10
Schein’s Model of Organizational Culture, slide page 11, class 1 Introduction,

11
What made Hofstede’s contribution so highly valued?, slide page 3,Class 3,

12
Your guide to India, Madhukar Shukla
http://www.executiveplanet.com/index.php?title=India

13
The Caste System in India， http://www.indianchild.com/caste_system_in_india.htm

14
P16, Passport INDIA, By World Trade Press, Manoj Joshi
15
Indian women http://www.southasianmedia.net/profile/india/india_women.cfm