How different experiences can lead to serious wrong decisions
Anyone who has followed the development of Indian business practices and behavior patterns over the years will certainly notice that the differences between Western and Indian companies have become smaller. Globalization plays a role in this that should not be underestimated. Can we conclude from this that intercultural aspects are negligible? Or to put it another way: Can we assume that Western leadership and management models can be easily transferred to India?
To better assess this aspect, here are some examples from everyday practice that can play a role, especially in the selection of leaders in India.
Differences in personal liability
The rights and obligations of a Managing Directors (MD) of a Pvt.Ltd. India can differ from those in other countries, especially with regard to questions of personal liability. These peculiarities become publicly visible whenever Indian authorities "take out of circulation" a well-known western manager for certain offenses (e.g. tax debts, compliance cases) with pre-trial detention and lengthy court proceedings. What seems arbitrary in our view is the applicable law and should be carefully considered, among other things, when selecting managers in order to avoid "nasty" legal surprises. [WB Article “CEO, Managing Director, General Manager, Country Head…?”-Titles and Corporate Positions in Indian Pvt. Ltd. Company"]
Different organizational models
Many international companies have a Matrix organization, which serves as “Standard organizational model” should also be applied in India. In practice, this often means that two or more local organizational units report equally to certain departments at headquarters.
However, a problem arises when there is no management function in India that acts as a "bracket" between these organizational units and, in this function, takes overarching aspects into account and ensures that there is no internal competition or conflicting goals between the respective units. The trigger for such problems is usually a culturally determined, different understanding of hierarchy - a reflexive adoption of international organizational models in India is therefore not advisable.
Another important point is that Indian authorities usually require that there is a single overall responsible person for India, which should be taken into account by the European parent company when choosing a suitable organizational structure.
Special features of the personnel strategy
The fact that hierarchies play a very important role in India also has a significant impact on the Human resources planning and strategy and ultimately on the leadership behavior of a manager. Well-known western leadership models such as "teamwork" or "multi-tasking" quickly lead to failure in India if they are to be implemented 1:1 without careful preparation.
It is equally important that organizational structures and job descriptions are checked for their “India suitability.”
Summary
Western management and control models, as well as internationally gained HR experience, should always be critically examined before being adapted to India. Our many years of experience on the ground show that certain organizational structures, team and personnel constellations can predictably lead to major difficulties. As much as India has adapted to Western standards in recent decades, it is still very different in many areas [WB Article: “Adventure Recruitment India”]
We would be happy to support you in developing an organizational strategy for India and help you find suitable specialists for your company.
Exchange ideas with our Senior Expert Werner Heesen [Profile Werner Heesen] who has worked in various management positions on three continents for Deutsche Lufthansa, most recently in the position of “Director South India” and spent 13 exciting years in India [WB Article "WB Personnel Consulting for India: Combining the strengths of both cultures!”].
