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As India becomes part of the global mainstream, it is inevitable that different companies, countries and management styles will vie for a place here. It is increasingly necessary, therefore, to look at the management style of the company you are joining before taking the plunge.
“It’s been easy so far,” says Mumbai-based HR consultant Shashi Rao. “You had mainly UK and US companies which share a similar culture. But there is a huge difference now. First, the Indian operations are no longer a minor outpost in which local managers can do what they like. At IBM, for instance, analysts say the company will probably be run out of India in a couple of decades.”
Second, she says, companies from other countries have set up joint ventures, with the Indian partner calling the shots. IBM itself was one (with the Tatas). Other well-known names include Pepsi, Mazda, Honda and Shell. Today, everybody wants a wholly-owned subsidiary, so there is no dilution of the company’s culture.
Most importantly, India has become the hot new destination. From Finland to Mexico, South Africa to Israel, companies of all hues are rushing to set up shop here. They come with the baggage of their own cultures.
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In this context, a study by Manfred Davidmann on “Style of Management and Leadership”, though done some time ago, is still relevant.
In the US, the Taft-Hartley Act limits the right to strike, shifting responsibility for declaring a strike from the factory floor to the union head office.
In the UK, the Industrial Relations Act made ‘unofficial’ strikes illegal and so transferred the responsibility for deciding to strike from the men on the spot to the union head office.
The Chinese worker can be sacked at the drop of a hat. In the new dispensation, the management style is authoritarianism mixed with arbitrariness.
Japan is a democratic country. Strikes are legal. Loyalty to the company is strong and many workers normally strike during their lunch break.
Over the years, there has been a move from authoritarian to participative forms of management. The problem is that their cultures, though diluted to a large extent, are anachronisms when sought to be transplanted in countries that have a more liberal heritage. Doing exercises before starting work may be okay in Tokyo, but it strikes the wrong chord in Tamil Nadu.