We would like to acknowledge the Indian Institute of Management Bangalore for institutional support during this research project. We would also like to thankfully recognize the students of the Management in Asia class, University of St. Gallen, participating in the India Study Trip in April 2003. Explicitly, we would like to acknowledge Bianca Braun, Reto Candrian, Martin Heusi, Carole Hofmann, Nicolas Markovic, Philippe Rose, Vincent Sennhauser and Nicole Ziegler for undertaking part of the interviews underlying this research and for supplying part of the within-case analyses as referred to in the methodology section of this paper. We also extend our deepest gratitude to the companies participating in this research project.
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Abstract: Rediscovering Indian Management In 1990-1991 the Indian economy took significant steps from a socialist to a market economy fundamentally changing the traditional face of the Indian business environment. Similarly, the economic liberalization triggered fundamental changes in management practices in India. Whereas traditional Indian management practices are well described in the literature, this research contribution is the first to throw light onto the emerging contemporary Indian management style. Based on six case studies of family-owned and multinational companies with a total of 36 interviews, we found that Indian managers tend to value relevant educational background and experience higher than caste belonging for employment decisions. Furthermore, Indian managers tend to display medium to low levels of nurturance for subordinates and tend to increasingly incentivize subordinates by non-monetary development opportunities. A participative management style tends to be appropriate in the contemporary Indian environment. Key Words: India, Management, Case Study
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INTRODUCTION During the years preceding the liberalization of the Indian economy, companies faced limited competition
References: Agrawal, N.M. 1994. Determinants of inter-generation conflict in organizations. Journal for Decision Makers, 9: 121--134. Amba-Rao, S.C., Petrick, J.A., Gupta, J.N.D. and Von der Embse, T.J. 2000. Comparative performance appraisal practices and management values among foreign and domestic firms in India. International Journal of Human Resource Management, 11: 60--89. Bernard, R. 2000. Social research methods – Qualitative and quantitative approaches. Thousand Oaks: Sage Publications. Chattopadhyay, G.P. 1975. Dependency in Indian culture from mud huts to company board room. Indian Management, 14: 22--29 & 42--47. Chong, L.C. (Ed.). 2002. Business Environment and Opportunities in India – Bangalore and its Surrounding Regions. St. Gallen: Verein Business Books & Tools. Eisenhardt, K. 1991. Better stories and better constructs: The case for rigor and comparative logic. Academy of Management Review, 16: 620--627. Eisenhardt, K. 1989. Building theories from case study research. Academy of Management Review, 14: 532--550. Falkenberg, A.D., Glamheden, H.A., Chong, L.C. & Agrawal, N.M. 2003. The impact of changing professionalism on multinational companies in emerging markets – the case of ABB India, Asia Pacific Management Conference Osaka 2003, Proceeding of the 9th Asia Pacific Management Conference, 283--292. Fayol, H. 1930. Industrial and general administration London: Pitman. Kakar, S. 1971. Authority patterns and subordinate behavior in Indian organizations. Administrative Science Quarterly, 16: 298--307. Miles, M. & Huberman, A. 1994. Qualitative data analysis: An expanded sourcebook. Thousand Oaks: Sage Publications. Mintzberg, H. 1975. The manager’s job – Folklore and fact. Harvard Business Review, 53(4): 49--62. Mullins, L. 2001. Management and organizational behavior (6th ed.). Upper Saddle River: Prentice Hall. Strauss, A. & Corbin, J. 1998. Basics of qualitative research (2nd ed.). Thousand Oaks: Sage Publications. Yin R. 1994. Case study research: Design and methods (2nd ed.). Thousand Oaks: Sage Publications. 11 TABLE 1 Comparison of Preceding Literature and Research Findings Management Practices Employee requirements Leadership style Traditional Indian Management Family relation and caste memberships of employees have to be considered Organizational leaders display a high level of personal involvement with their subordinates. Leaders provide nurturance contingent upon the subordinate 's task accomplishment Work is viewed as a means to an end i.e. for the sake of satisfying family needs. Little demand for changing work tasks, only the compensation is relevant Nepotism and caste considerations affect selection and compensation. Training less emphasized Contemporary Indian Management Relevant educational background and experience matching task requirements Increasingly participative management style where subordinates ' opinions and input are solicited. Personal relationship between management and employees reduced Elements such as job rotation, enrichment, autonomy, team work and competitive salaries are increasingly considered to motivate employees Objective selection criteria. Training programs and performance related compensation applied. Motivational aspects and rewards Human resource management practices 12