INSTITUTE OF PROFESSIONAL EDUCATION AND RESEARCH, BHOPAL

PGDM Trimester-V Batch 4th (2012-2014) Cross Cultural Management Assignment-I

India
India
120 100 80 60 40 20 0 71 49

57 31

Power Distance Individualism

Masculinity

Uncertainty Avoidance

[1] Power distance The dimension deals with the fact that all individuals in societies are not equal i.e. it shows the attitude of the culture towards these inequalities amongst us. India has high score in this dimension, which shows that the Indian follow hierarchy pattern and a top down structure in society and organizations. If we talk about the Indian attitude, it shows that Indian people are dependent on the boss or the power holder for direction, acceptance of un-equal rights between the power-privileged and those who are lesser down in the pecking order, immediate superiors are available for communication but one layer above less so, paternalistic leader, management directs, gives reason to ones work life and rewards in exchange for loyalty from employees. Real power is centralized and also employees expect to be directed clearly as to their functions and what is expected of them is clearly defined to them. Control is familiar, even a psychological security, and attitude towards managers are formal even if one is on first name basis. Communication is top down and directive in its style. [2] Individualism The fundamental issue addressed by this dimension is the degree of interdependence that a society maintains among its members. In Individualist societies people are supposed to

look after themselves and their direct family only. In Collectivist societies people belong to in groups that take care of them in exchange for loyalty. India, despite an intermediate score of 49, is a society with clear collectivistic traits. This means that there is a high preference for belonging to a larger social framework in which individuals are expected to act accordingly for the development of once own defined groups. In India, the actions of a person is influenced by various concepts such as the opinion of ones family, extended family, neighbors, work group and other networks that one has some affiliation toward. For a collectivist, to be rejected by ones peers or to be thought lowly of by ones extended and immediate in-groups, leaves him or her rudderless and with a sense of intense emptiness. In India the employer/employee relationship is one of expectations based on expectations Loyalty by the employee and almost familial protection by the Employer. Hiring and promotion decisions are often made based on relationships which the Indian people have with each others. [3] Masculinity India scores 57 on this dimension and is thus considered a masculine society. Even though it is mildly above the mid-range in score, India is actually very masculine as they have willingness to display the power they have and the success they have achieved. The designer brand label, the flashiness that goes with advertising ones success, is widely practiced. However, India is also a spiritual country with millions of deities and various religious philosophies. It is also an ancient country with one of the longest surviving cultures which gives it ample lessons in the value of humility and abstinence. This often reigns in people from indulging in Masculine displays to the extent that they might be naturally inclined to. [4] Uncertainty avoidance India scores 31 on this dimension and thus has a medium low preference for avoiding uncertainty. In India, there is acceptance of ambiguity & imperfection as Indian people can handle them in appropriate manner. India is traditionally a patient country where tolerance for the unexpected is high. People generally do not feel driven and compelled to take action-initiatives and comfortably settle into established rolls and routines without questioning. Rules are often in place just to be circumvented and one relies on innovative

methods to bypass the system. A word used often is adjust and means a wide range of things, from turning a blind eye to rules being flouted to finding a unique and inventive solution to a seemingly insurmountable problem. It is this attitude that is both the cause of misery as well as the most empowering aspect of the country. There is a saying that nothing is impossible in India, so long as one knows how to adjust.

China
China
120 100 80 60 40 20 0 74

68 21

16 Power Distance Individualism Masculinity

Uncertainty Avoidance

[1] Power distance At 74 China sits in the higher rankings of PDI i.e. a society that believes that inequalities amongst people are acceptable. The subordinate-superior relationship tends to be polarized and there is no defense against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about peoples capacity for leadership and initiative. People should not have aspirations beyond their rank. [2] Individualism At a score of 16 China is a highly collectivist culture where people act in the interests of the group and not necessarily of themselves. In-group considerations affect hiring and promotions with closer in-groups (such as family) are getting preferential treatment. Employee commitment to the organization (but not necessarily to the people in the organization) is low. Whereas relationships with colleagues are cooperative for in-groups

they are cold or even hostile to out-groups. Personal relationships prevail over task and company. [3] Masculinity At 68 China is a masculine society success oriented and driven. The need to ensure success can be exemplified by the fact that many Chinese will sacrifice family and leisure priorities to work. Service people (such as hairdressers) will provide services until very late at night. Leisure time is not so important. The migrated farmer workers will leave their families behind in faraway places in order to obtain better work and pay in the cities. Another example is that Chinese students care very much about their exam scores and ranking as this is the main criteria to achieve success or not. [4] Uncertainty avoidance At 21 China has a low score on uncertainty avoidance. Truth may be relative though in the immediate social circles there is concern for Truth with a capital T and rules (but not necessarily laws) abound. None the less, adherence to laws and rules may be flexible to suit the actual situation and pragmatism is a fact of life. The Chinese are comfortable with ambiguity; the Chinese language is full of ambiguous meanings that can be difficult for Western people to follow. Chinese are adaptable and entrepreneurial. At the time of writing the majority (70% -80%) of Chinese businesses tend to be small to medium sized and family owned.

Comparison between China & India

Comparison between China & India

120 100 80 60 40 20 0 Power Distance Individualism China Masculinity India Uncertainty Avoidance 16 74 71 68 57 21 31

49

In power distance dimension, both the countries are on a similar condition. In both societies in-equalities are acceptable. In individualism, both the countries have low score. Both countries are collectivist in nature but the degree of collectivism is much higher in China as compared to India. In masculinity dimension, both societies are masculine but they China is having higher degree of masculinity and also China in comparison to India are more success oriented and also leisure time for Chinese people is not that important but in case of Indian people it is important for them.

The Uncertainty avoidance index of China in comparison to India is much lower which shows that Chinese people are more stable and they are more adaptable to unexpected situation. Uncertainty avoidance index of India is low which shows that they can handle unexpected situation and are also stable but in comparison to China, India is having less stability when dealing with uncertain situations.