Introduction To The Indian Business Culture Commerce Essay


The management of work source of the business is what we called as Human resource Management. India is the country who invented the management in the very beginning. According to the record it was invented three hundred years before Christ. The name of that ancient Indian management is called Arthashastra.

In olden days India has segregated the work according to their caste. They divided the castes in to four categories and the categories are

Brahmins - Priests and Teachers

Shatriyas - Rulers and Warriors

Vaishyas - Merchants and Businessman

Sutras - Workers

Untouchables - The people who not counted in the above mentioned categories

Even a decade ago the companies in India were still dominated by certain castes. So after the globalisation culture have implemented by the government in Indian, these caste system have started diminishing from its nature. Now the companies have derived selected policies for their company and make the employees to work according to that. This is how the human resource management have born and slow grown in India.

1.12 Overview of Indian culture

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People belong to India in ancient day have concentrated more with the cultural activities. They have derived more of things which help the people to lead the perfect life style. But in those cultural activities they have implemented the management within. So it makes the people to follow the management properly. In each and every activity of Indian culture will relate their life with the management.

2.1 Socometal - A modest check

Socometal is a mixed Franco - Senegalese company which is located in Dakar a capital city of Senegal. The business team is a combination of French emigrants and Senegalese executives. Socometal is a company which produces can and metal containers.

Socometal is a company with mixed culture. It was a company which is started by Senegalese but financed French. So 52 percent of the company is owned by French and 48 percent is Senegalese. So management has been handled by people from different cultures. In order get the new demand Socometal plans to increase the productivity from their workers. Mr. Olivier Bernard the production manager of Socometal have calculated and declared that it is impossible to achieve.

Mr. Bernard has gone to France suddenly due to illness, so his assistant Mr. Diop has been in his position. After Diop have been an acting production manager Mr. N'Diaye, unofficial representatives of Senegalese worker have meet Diop in the local cafe.

During the meeting Diop asked N'Diaye to pay the workers for extra working time and promised that he can increase the production up to 30% of the current production. And N'Diaye has guaranteed Diop that he can meet the order in a short period of time. N'Diaye added that current 12000 units will rose to 20000 units by the next evening if the offer accepted.

Next day Diop met N'Diaye in front of the factory and gave his agreement under the condition that the production has to reach the target by next evening. And the increase in the wages have consider by the management which is after the worker have maintain the production level in the long run.

As N'Diaye promised the production level have shown increase between thirty eight percent to forty three percent. This was the level which was never experienced before in the history of the company. But when Mr. Bernard return and shocked with the raise but he were ready to pay for one hour work and not for two hours work. Even though the pay where not satisfied the employees are ready to maintain the same production level to make N'Diaye and Diop proud.

3.1 Benefits for an Employee

The employee is the force which makes the company to be performing or not to be. The human resource management is a team which helps the company to track the state of employee. By tracking the employee the management will do the needful to employee and experience the benefits from the employee.

If the employee is more satisfied with the company then he work dedicated and convince the other employee to be committed. For that the management has to assign certain award and reward for the period of time. It will encourage the employee to be satisfied. They are two types of benefits which a company can offer to an employee are:

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Financial Benefits

Non-Financial Benefits

3.2 Financial Benefits

The financial benefits only include the pay which can make the employee to be satisfied. Te pay has to be exactly balance with the work time which they have worked for the company. The exact pay scale will motivate the employee more and make them to show more dedication on the job.

3.21 Financial Benefits for an Employee in Socometal

In Socometal employee normal working time is 8 hours a day. But as Diop request they have increased their working time to 10 hrs a week. Diop asked the employee to raise the production as 30% but their employees have shown 38% to 43% in those 2 hours of overtime work. So as per the Human Resource Management they have maintain the employee satisfaction by giving the exact pay for the excess two hours. But in Socometal they refused to pay for the extra two hours and they meant that they can pay only for one hour. Actually this will make the employee to be frustrated and will create the situation of annoyance. So this is how financial benefits where lack in Socometal for employee.

Non Financial Benefits

As a reality Employees are not encouraged by money only. However, this is not easy to believe they are more stimulated by the way we treat them and by the way we encourage them. In the base of it's the essential rewards and they are different and motivating work, challenging tasks and innovative work. And often this will scrutinise the true motivators and not everyone. Even though pay, bonus are essential to an employee they are just a short-term motivators. These non-financial rewards will make them to be in the job on long run.

The non financial benefits are also includes flexible working time, giving a day off, family picnic, a small party, some gifts for the family members could be also motivate the employee to work the company with more of dedication.

4.1 Importance and perspective of HRM in India

The management ideology in India is very old and well practiced. Chanakya the scholar who have written the Book of Management called Arthashastra. It explains the three different parts of the management to the world and they are:

Public Policy

Administration and Exploitation

Accounting principles and Taxes

So Indians are deeply influenced by these management principles traditionally. Apart from these they were well influenced by their communal values which make them to be in a civilisation standard of duty to their family and society.

In India managerial values are more functional and it is according to their dedication and interest. The sign of managerial values were given a certain perspective to the organisational life which has reflected in the corporate culture. To understand these values it will need more of cultural understanding and social orientation of India.

The traditional values of the nation have urbanised and get more of renovation during the British rule. For example the multinational companies and global firms in India have shifted their prominence to the human resource with their knowledge.

4.11 Growth of HRM in India

In India growth of an HRM concept can be traced back to ancient times, it is a philosophical, value based concept developed over centuries by various people starting from Kautilya to present day management gurus. There are also references and evidences to HRM in the Geeta and Upanishads and also in the philosophical writings of Vivekananda and Radhakrishnan. India is facing the onslaught of liberalisation and globalisation, the intense competition by international firms has increased the pressure on Indian firms to prepare and develop employees so that they can compete with them in skills, efficiency and effectiveness, (Budhwar and Sparrow 1997; Singh 2004). In today's business leaders are legacies of the past where inadequate attention is paid in thinking ahead and to prepare and develop employees for the future.

5.1 Pay scale management in India

In India pay scale is satisfied for certain people and not satisfied for others. Except multinational companies in India other companies are not paying up to the standard. As multinational companies are has certain standards and to maintain the standards they are paying according to it.

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The micro, small companies are not paying their employees up to the standard. Even in some multinational companies they are using outsourcing to reduce the pay. To reduce the expense for recruiting and training the employee companies in India are using two systems one is outsourcing employee and another is hired employee.

5.11 Outsourcing Employee

To reduce the pay for an employee company will outsource the employment to another company. Placing an employee in one company for least pay and making the employee to work in a multinational company where that specific role carries more pay. So being a company it will sign a contract with an employee for six months and renew the contract once in six months. This helps the company to reduce their expense for human resource.

All the new employees will be on probation period for first 6 months which can be extended at the discretion of the company. Notice period during probation period will be one calendar month, however during the probation period the company reserves the right to terminate the services of the employees without any notice or compensation and also without giving explanations for it. The important fact is only 50% of salary is paid and performance pay is not calculated even though staff goes live or hits the work floor.

Notice period means work after resigning, when management accepts resignation letter from the employee, employee has to serve the notice period for 2 months or he has to train the new employee, in this case only half the amount will be paid. Earlier it was 1 month notice period and due to recession company has extended to one month.

5.12 Hired Employee

Hired employee is a process of hiring an employee for a specific job. So it will help the company to reduce the expense on recruitment and training. And it helps the company to estimate the overall pay for a person in a single stretch. Once the project ends company will stop giving work to the hired employee.

6.1 Cross-Culture Management

Cross culture management is all about culture. Basic human beings came with different Racial Background or Cultural background. The way of practices in one culture may not be same in another culture. The good practice in one culture may be a bad practice in another culture. But in some case both the culture carries same practice with different meanings and interpretation. So person from one culture background meeting, working or interpreting with a person from another culture background is called cross culture management.

Even we were in the converging world some people were still believes that they are living in the world of divergence. Still there is two types of people where living in this globalised culture there this controversy is aroused. So the cross culture management ids the one way to handle these condition.

6.11 Cross-Culture Management in Socometal

Cross culture management in Socometal between the Franco- Senegalese is vague. They did not understand their co workers in the way that they are. They have just working with them on the assumption. Even Senegalese are hard workers management have assumed that employees were lazy in nature. They were not showing the real interest to find the real traits to share their work with them. Mr. Olivier Bernard is a production manager from France. He has not understood the exact traits of the employees. So the cross culture management is not up to the need in Socometal between French and Senegalese.

6.12 Cross-Culture Management in India

People from different culture background have working together is called cross culture. This is very familiar with multinational companies in India. In olden days people from India have gone toward west for employment. However after globalisation has dominated India the western people have started coming to India for employment. So the cross culture management has taken place in Indian companies.

Indian cross culture management has been in a way that can satisfy the people belong to the both culture. The mode of deed in a culture may not be the same as other culture. In some culture's good things may taken bad in another culture. But sometimes both the culture activities are giving the impression of being same but with the different meaning and different understanding.

Example: Business has different views and interpretation. In UK business creates organisational wealth but in India business creates the individual wealth. In UK job are based on education but in India jobs are based on experience.

7.1 Recommendation

Management should take right objective to decide right people in the right job based on the assessment

Organisational commitment of the manger which is one of the most important factors that can be improved through the HRM approach

No partial treating between the employees

Satisfying the employees with the right pay will make them happy and encourage them to work more

Being friendly with the employees will make the employees to be more comfortable to share their views with the management

Making an in-house project Instead of outsourcing will give the output with more quality

A good management does not depend on cultural background but on individual ethics

8.1 Conclusion

"Socometal - Rewarding African Workers" this case study explains briefly about the African management policies but it is run by France manager were it explain us the exact state cross culture in Africa. While comparing India with Africa, India was been in the certain position before some decades. But today's position is we were carrying a shinning tag called "Developing Country" around the world. In future we expect Africa in the same state where currently India stands.