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Study on the management transition in India
Date Issued
2009
Author(s)
Wong, Wai Nap
Abstract
India, together with China, Egypt and Babylon, is recognized as “The Four Great Ancient Civilizations” and its management system has been influenced by their religions and the belief with over thousand of years.
In 1990s, India has liberalized its market to the domestic and foreign firms. With the lower barriers, change of the government policy and other benefits, the foreign direct investment (FDI) has begun rapidly growth in India and industrialization has been developed in past decades, especially in IT industry. The management system in India has been evolving by different factors, such as globalization, foreign managerial cultures, and technology advancement.
This study is to evaluate the transition in the management system in India so as to define its unique characteristics. Critical factors and their impacts to the management system in India are also identified by the convergent-divergent process model for management in Asia proposed by Chatterjee and Nankervis (2006). The critical factors include the government policy, the trend of globalization, the traditional caste system, the establishment of multinational corporation (MNCs) and inflow of foreign direct investment (FDI), market liberalization, technology advancement, and education system.
Those aforementioned factors and their dimensions influence the traditional Indian management system in different aspects, and lead to a transition include: from hierarchical to ability-based management system; from family-based to corporate
management system; from close to cross-cultural management system; from collectivism to coexistence of individualism and collectivism management system and from regulated to professional management system.
By studying the impacts of these critical factors, foreign managers, who would like to advance their career achievement in India, can get a better understanding of the Indian management system. Foreign managers can then aware of the importance of the critical factors and know how to deal with their impacts so as to work successfully in India.
In 1990s, India has liberalized its market to the domestic and foreign firms. With the lower barriers, change of the government policy and other benefits, the foreign direct investment (FDI) has begun rapidly growth in India and industrialization has been developed in past decades, especially in IT industry. The management system in India has been evolving by different factors, such as globalization, foreign managerial cultures, and technology advancement.
This study is to evaluate the transition in the management system in India so as to define its unique characteristics. Critical factors and their impacts to the management system in India are also identified by the convergent-divergent process model for management in Asia proposed by Chatterjee and Nankervis (2006). The critical factors include the government policy, the trend of globalization, the traditional caste system, the establishment of multinational corporation (MNCs) and inflow of foreign direct investment (FDI), market liberalization, technology advancement, and education system.
Those aforementioned factors and their dimensions influence the traditional Indian management system in different aspects, and lead to a transition include: from hierarchical to ability-based management system; from family-based to corporate
management system; from close to cross-cultural management system; from collectivism to coexistence of individualism and collectivism management system and from regulated to professional management system.
By studying the impacts of these critical factors, foreign managers, who would like to advance their career achievement in India, can get a better understanding of the Indian management system. Foreign managers can then aware of the importance of the critical factors and know how to deal with their impacts so as to work successfully in India.
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