Friday, January 1, 2016

Intersection of Culture and Business in India

India – a country abundant with youthful and highly energized population with diverse culture. Before talking anything about ‘Culture’, we need to first ask a question to ourselves is “What is a Culture?” Culture is nothing but a set of values, assumptions, understandings and norms that are collectively programmed into the human mind that distinguishes the member of one group ofHomo sapiens from those of another. This culture influences and impacts our environment which we are surrounded with. One of the influences created by Culture is the amount of impact it generates on the Indian Business environment. The word ‘business’ refers to any activity or occupation in which people are engaged with a view to earn profit. When these two words come together they have a profound impact on the business environment of India and its economy.
Human resource facilitates in running of the different businesses in India. And one of the things which are much talked about in India when it comes to ‘human resource facilitating the business’ is its Work Culture. In India, we have a very hierarchal system of work culture where the boss is always right. We all come from a system where we are always taught that we should respect our elders, superiors, and highly experienced people and never refute or question on an argument made by them. Most of the bosses in India belong to that category of ‘I am right and my juniors should follow what I tell them’. There is a tremendous amount of ego and superiority complex in an Indian boss. Hence in that case many times there is no proper exchange and debate of ideas between the employer and the employee. Sapna Chadha, Director of Marketing and Product development in American Express, Gurgaon when she came from US to work in India in 2008 supports this point by saying, “India is definitely much more hierarchical. Many of my younger staffs are very wary about speaking out in front of me. I had to convince them that I really wanted to hear their ideas, and then they finally started giving me their opinions”. Therefore the culture of “Yes Sir” in India needs a vanish touch. Hence the gap between a boss and its subordinate needs to be bridged and Indian boss should act as being a positive leader rather than using hard power as a tool to get the work done.
With the inception of Globalization in the Indian Economy, culturally it has changed the ways of living for most of the Indian households. From Mc Donalds to KFC to wearing of jeans by both the genders to celebration of Valentine’s Day, cultural globalization helped India to change its style of living. Valentine’s Day creates huge business and market opportunity. The year 2013 Valentine’s Day, the market was pegged in India at INR 15 billion (Source:http://zeenews.india.com/business/news/economy/valentines-day-market-in-india-pegged-at-rs-15-billion_70092.html). Yet the cultural influence many times blocks the business opportunities during this time because of the protests and havocs performed by Shri Ram Sena, Bajrang Dal, etc. preventing people to celebrate Valentine’s day as according to them this is against the Indian Culture and do not want western influences. Hence our police system and government should instill a sense of security among its citizens to exercise the right to freedom of expression which will not only create harmony in the society but would also create business and market opportunities for business people.
When there is an intersection between business and culture of India many times it also creates an ethical dilemma for the businesses. The famous ‘GE Healthcare and ultrasound in India’ case in the year 2007 is the classic example. GE Healthcare’s Ultrasound machine sales went up by 10 percent in 2006 and was successfully able to capture its market share outpacing its competitors. However in 2007 those ultrasound was being used illegally for sex determination of human fetuses and GE Healthcare was even accused for this. In India, there is a norm and understanding among most of the Indians that raising a daughter is like watering your neighbor’s garden. Hence these all things created an ethical dilemma for V. Raja, CEO of GE Healthcare India whether to continue with the business of ultrasound or not with growing potential of this business.
Hence when culture and businesses meet in a country like India some way or the other it might create inefficiency in the business process. Therefore we need a revolution in our thought process and a transition in conventional ways of handling or supervising of various tasks in the business. This reminds me of Lord Buddha who once said, “All that we are is the result of what we have thought.”
References:
This article was originally published in The Indian Economist.

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