Culture is defined as a system of shared beliefs, values, customs, behaviors, and artifacts that the members of society use to cope with their world and with one another, and are transmitted from generation to generation through learning. This document focuses on the impact of culture and cultural diversities on business in India. With the increasing globalization, reaching out to several foreign countries becomes essential. It is indispensable to be present on the international market to be more competitive in this incontrovertible global world. This helps reduce costs of production by seeking lower costs of labor and raw materials in developing countries as well as increasing growth opportunities, reducing costs of distribution or finding new market shares. In order to avoid problems of settling, before expanding into a foreign country, we have to focus on its environmental factors and cultural differences. We employ the PEST analysis to analyze the environment of a country here.
[...] We provide pre-departure programmes but we advise to go on training even after their arrival to cope with the difficulties they might encounter. These problems show how important it is to train the manager to be able to identify the differences of reaction of a culture and its participants. Our training includes: Academic lectures on the influence of culture on behaviour, cultural self-awareness of the country employees are sent to, and role –plays and negotiation simulations to put them in real cultural issues situations. The training stimulates learning in cognitive, affective and behavioural areas. [...]
[...] Work values inherent to India are: learning, honesty, tolerance, and a sense of duty whereas in France, we insist more on productivity, efficiency, rights and self determination. Masculinity India's masculinity index reaches 56, with a world average just slightly lower at 51. This index evaluates the place of women in the country. It refers to the degree of masculine values (assertiveness, materialism, lack of concern for others) that prevail in a society. On the other hand, a feminine society emphasizes on feminine values concern for others, for relationships and for the quality of life. [...]
[...] Analysis of the cultural diversities in India The PEST analysis The PEST analysis gives a general overview of the political, economical, social and technological aspects of a country. Political facts India is a federal republic. The currency is the Indian rupee. Economical facts emerging country, with an economic growth equalling 8%. Infrastructures, which are still not enough developed everywhere in the country. The middle class is burgeoning, yet the population below the poverty line remains high.(25%) The standard of living is also improving. [...]
[...] 3)Trompenaars approach Trompenaars has equally produced a theory about the cultural differences and their impact on work. The first dimension of Trompenaars opposes universalism versus particularism. The universalistic nations “apply rules and systems objectively, without consideration for individual consequences”. On the contrary the particularistic approach is more subjective and puts the obligations towards relationship first. Indian culture is rather particularistic. In this kind of society, people are more likely to share information with their friends than in a universalistic one. [...]
[...] It will be important to emphasize the social aspects of the company in India such as the employees' welfare, their safety and contribution to the society. As far as decisions are concerned, a collectivist population prefers to make a decision within a group, the members of the organisation, whereas in individualistic areas one person makes decisions and take son the responsibilities attached to it. Affective vs. Neutral This approach focuses on the communicative emotional orientation of relationship. Indians are more affective, which means that they express their emotion during a meeting or a negotiation, in a business context. [...]
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