Cross-Cultural Management in India - Master Thesis

MASTER OF SCIENCE ENTREPRENEURSHIP

MASTER THESIS

Cross-cultural management in India How can we facilitate French managers’ expatriation in India?

© Julien De Groot

Valériane HENRY Supervised by Professor Lorraine UHLANER

November 2011

EDHEC Business School does not express approval or disapproval concerning the opinions given in this paper which are the sole responsibility of the author.

© Valériane Henry, 2011 – All rights reserved

EDHEC Master Thesis – Cross-cultural management in India

ACKNOWLEGMENT First, I want to express my gratitude to Professor Uhlaner who agreed to supervise this research about cross-cultural management in India, who has been supportive and guided me through this project with valuable inputs and feedbacks. I express my thanks to Professor Petit who has accepted to be my second reader and assessor for this master thesis. I also want to thank the managers who agreed to be interviewed for the purpose of this thesis and who gave me so much of their time, Julien De Groot, Franck Barthelemy, Maxime Louchart, Fanny Delannoy, Isabelle Roche, Jean-Paul Charraut and Eric Soubeiran. I also want to thank Professor Uhlaner and Julien De Groot for agreeing to read over my thesis. Finally I am grateful to my parents, Jean-Pierre Henry for his constructive advice about research methodology and Viviane Henry for allowing me to have access to her network.



ABSTRACT India has become an attractive country for foreign investors but cross-cultural cooperation is a challenge which does not always lead to success. A good cooperation between expatriates and Indian collaborators is based on the understanding of the Indian culture and the local business environment. The purpose of the study is to identify the main gaps due to cultural and business environment differences. The objectives are to facilitate French managers’ process of expatriation in India and to give them tools to overcome these obstacles. The theoretical framework consists of nine propositions and the study is based on interviews of seven French managers working in India. The most important gaps identified in this study are the communication schemes, the Indian standard time, the weight of hierarchy and the lack of empowerment in the Indian business environment. The other obstacles highlighted in this paper are easier to overcome by French managers but have also to be taken into consideration. It concerns Indian English, group and relationship orientation of the Indian society and knowledge about the Indian etiquette, body language, religion and governance. The recommendation resulting from this study is to provide French managers expatriated in India a three-step training program which is sketched in this paper.



TABLE OF CONTENT CHAP. 1

INTRODUCTION ..................................................................................................... 7

I.

REASON FOR RESEARCH ....................................................................................................... 7

II.

RESEARCH PROBLEM ............................................................................................................ 7

III. RESEARCH OBJECTIVES ........................................................................................................ 7 IV. OUTLINE............................................................................................................................... 8 CHAP. 2

TRAINING SOLUTIONS FOR EXPATRIATES ................................................. 9

I.

INTERNATIONAL ASSIGNMENT CYCLE MODELS ..................................................................... 9

II.

CROSS- CULTURAL TRAINING EFFECTIVENESS ....................................................................... 9

III. CROSS- CULTURAL TRAINING MODELS ................................................................................ 10 CHAP. 3

CROSS-CULTURAL MANAGEMENT THEORIES......................................... 12

I.

THE CONCEPT OF CULTURE................................................................................................. 12 1. Understanding the concept and qualifying a culture ..................................................... 12 2. Different levels of culture ............................................................................................. 12 2.1 National culture ..................................................................................................... 12 2.2 Organizational, corporate and professional culture............................................... 13

II.

THEORETICAL FRAMEWORKS TO COMPARE CULTURES ....................................................... 13 1. Comparing the influence of the context ........................................................................ 13 1.1 High-context culture.............................................................................................. 13 1.2 Low-context culture .............................................................................................. 14 2. Comparing status and function...................................................................................... 14 3. Comparing values in the workplace .............................................................................. 14 3.1 Power distance....................................................................................................... 14 3.2 Uncertainty avoidance ........................................................................................... 15 3.3 Individualism versus collectivism ......................................................................... 15 3.4 Masculinity versus feminity .................................................................................. 15 3.5 Long-term versus short-term orientation............................................................... 15

III. CENTRAL AREAS TO STUDY IN CROSS- CULTURAL MANAGEMENT ....................................... 15 1. Definition and framework ............................................................................................. 15 2. Identity .......................................................................................................................... 16 3. Communication ............................................................................................................. 18 4. Use of time .................................................................................................................... 20 5. Management and status ................................................................................................. 21 5.1 Power and hierarchy .............................................................................................. 21 5.2 Gender issues in a cross-cultural perspective........................................................ 22 © Valériane Henry, 2011 – All rights reserved


6.

Empowerment and initiatives ........................................................................................ 23

CHAP. 4

BACKGROUND ABOUT BUSINESS IN INDIA................................................ 25

I.

GOVERNANCE .................................................................................................................... 25 1. Political environment .................................................................................................... 25 2. Corruption issues........................................................................................................... 26

II.

LEGAL AND TAX SYSTEM .................................................................................................... 26 1. Business and laws.......................................................................................................... 26 2. Accounting and tax........................................................................................................ 28

III. CODE OF CONDUCT IN BUSINESS ......................................................................................... 29 1. Business communities ................................................................................................... 29 2. Indian main codes of etiquette ...................................................................................... 29 CHAP. 5 I. II.

METHODOLOGY.................................................................................................. 31

RESEARCH STRATEGY ........................................................................................................ 31 DATA COLLECTION PROCESS .............................................................................................. 31 1. Process: interviews ........................................................................................................ 31 2. Propositions ................................................................................................................... 31 3. Data analysis ................................................................................................................. 32

CHAP. 6

RESULTS................................................................................................................. 33

I.

WHAT ABOUT BUILDING TRAINING FOR FUTURE F RENCH EXPATRIATES IN I NDIA ? ............. 33 1. No stereotypes ............................................................................................................... 33 2. Pre-departure training.................................................................................................... 33 3. Real-time training.......................................................................................................... 33 4. Repatriation training...................................................................................................... 33

II.

CULTURAL GAP AND AREAS TO STUDY ............................................................................... 34 1. Cultural gap ................................................................................................................... 34 2. Identity .......................................................................................................................... 34 2.1 The weight of the family ....................................................................................... 34 2.2 Working as a team ................................................................................................. 35 2.3 Relationship orientation ........................................................................................ 36 3. Communication ............................................................................................................. 38 3.1 High context culture .............................................................................................. 38 3.2 Interactions: talking and listening in India ............................................................ 40 3.3 Body languages: from distance to closeness ......................................................... 42 3.4 Indian English ....................................................................................................... 42 4. Use of Time ................................................................................................................... 43 4.1 Circular time conception and local environment .................................................. 43 4.2 Effects on managers’ daily life.............................................................................. 43 4.3 Solutions ................................................................................................................ 44 © Valériane Henry, 2011 – All rights reserved


5.

Management and status ................................................................................................. 45 5.1 Weight of hierarchy............................................................................................... 45 5.2 Managing human resources................................................................................... 45 5.3 Managing a team ................................................................................................... 46 6. Gender issues................................................................................................................. 48 7. Empowerment and initiatives ........................................................................................ 49 III. BACKGROUND ABOUT INDIA .............................................................................................. 50 1. Governance.................................................................................................................... 50 2. Etiquette ........................................................................................................................ 51 3. Religion ......................................................................................................................... 52 CHAP. 7 I.

ANALYSIS AND DISCUSSION............................................................................ 54

ANALYSIS AND DISCUSSION ABOUT THE NINE PROPOSITIONS ............................................. 54 1. A three-step training program based on pre-departure, real-time and repatriation training can help French managers in the process of expatriation in India........................... 54 2. The Indian business environment is more collectivist than the French one, which has an impact on behaviors in the workplace. ............................................................................. 55 2.1 Belonging to a group ............................................................................................. 55 2.2 Relationship orientation ........................................................................................ 55 2.3 Individualism at work............................................................................................ 56 2.4 Conclusion............................................................................................................. 56 3. India has a high context culture whereas France is closer to the low context culture scheme which has direct consequences on communication in the workplace. ..................... 57 3.1 Indirect communication style ................................................................................ 57 3.2 Indian talking and listening patterns ..................................................................... 57 3.3 Conclusion............................................................................................................. 58 4. Body language and Indian English are two key issues for French managers working in India....................................................................................................................................... 58 4.1 A body language ruled by hierarchy or group affiliation...................................... 58 4.2 Indian English, an obstacle easy to overcome....................................................... 58 4.1 Conclusion............................................................................................................. 58 5. Indians time conception is polychromic whereas the French one is more monochromic which can cause tension in a cross-cultural business context. .............................................. 59 5.1 Indian standard time .............................................................................................. 59 5.2 Conclusion............................................................................................................. 59 6. India is similar to France in that it is a country with a high power distance culture and a hierarchy-based management style. ...................................................................................... 60 6.1 Inequalities and management ................................................................................ 60 6.2 Human relationships and hierarchy ....................................................................... 60 6.3 French manager’s management style in India ....................................................... 61 6.4 Conclusion............................................................................................................. 61 7. Males dominate the Indian society which has an impact on management in the workplace, in particular for French women managers. ......................................................... 61



8. Proactive behavior is rewarded in France and not valued in India which can have direct consequences on efficiency in a cross-cultural context. ....................................................... 62 9. A basic knowledge about governance, etiquette and religion in India can help French managers in the process of expatriation. ............................................................................... 63 II.

TRAINING PROGRAM FOR FRENCH MANAGERS EXPATRIATED IN INDIA ............................... 63 1. Framework .................................................................................................................... 63 2. Pre-departure training.................................................................................................... 63 3. Real time training .......................................................................................................... 65 4. Repatriation process ...................................................................................................... 65

III. FUTURE DIRECTIONS AND LIMITATIONS.............................................................................. 66 CONCLUSION AND PRACTICAL IMPLICATIONS .......................................................... 67 BIBLIOGRAPHY ....................................................................................................................... 69 EXHIBITS.................................................................................................................................... 72 EXHIBIT 1: Cultural dimensions to study............................................................................ 72 EXHIBIT 2: Questionnaire/Interview Guide ........................................................................ 74 EXHIBIT 3: Transcriptions of interviews............................................................................. 77 9/9/11 - Julien De Groot - Project Manager - Atherm India PL ...................................... 77 9/12/11 - Franck Barthelemy - CEO - Nagoya ................................................................. 80 9/12/11 - Maxime Louchart - General Manager - Atherm India PV ................................ 86 9/20/11 - Fanny Delannoy - Founder and General Manager - Zoé Designs PL............ 90 9/21/11 - Isabelle Roche - General Manager India and Sri Lanka - Entrepreneurs du Monde ................................................................................................................................ 94 10/03/11 - Jean-Paul Charraut - Head Supply Chain and ILN - Renault India PL ......... 98 10/09/11 - Eric Soubeiran - General Manager - Danone India ..................................... 101 EXHIBIT 4: Model and results ........................................................................................... 105



Chap. 1

INTRODUCTION

I. Reason for research Globalization and integration are today’s strategic aspects that cannot be neglected by multinational companies. Businesses are interconnected all over the world regardless of national boundaries. India is a growing market with a very attractive potential. Kumar (2007) wrote that India will be the fifth largest economy in the world by 2025 and is the second fastest-growing economy due to its growth rates around 8 percent. It explains why foreign investments from Western countries, including France, have seen a significant increase for the last decades. However, setting up a subsidiary and managing a team in India is not easy for French managers who quickly bump into barriers due to cultural differences and the local environment. They do not necessarily know Indian norms and values and do not understand Indian behaviors or way of communicating. When working in a foreign country with a significant cultural gap with France such as India, it is important to have a good knowledge of the local culture and environment; it allows managers to feel integrated and build sustainable working relationships as quickly as possible. The shorter the period of adaptation is, the more quickly the expatriate will succeed in the international assignment and consequently, and the more money and time the company will save.

II. Research problem How can we facilitate French managers’ expatriation in India?

III.

Research objectives

The purpose of the study is to identify the main gaps due to cultural and business environment differences. The goal is to facilitate French managers’ process of expatriation in India, and to give them tools to overcome these obstacles. The objective of this paper is to identify these obstacles through a framework constructed thanks to relevant theories from the literature. This framework defines the main areas to study in order to highlight barriers that exist in a cross-cultural business environment between Indian and French collaborators. Then, consequences on French expatriates’ working environment and management will be identified. A second goal of the study aims at providing solutions to expatriates by sketching out a training program in order to enhance their understanding about India. The purpose of such a program is to improve their working relationships and ability to manage Indian teams efficiently. The research is based on interviews of seven French managers with a significant top management experience in India from 6 months to 10 years. The interview guide has been construed following the framework established previously. © Valériane Henry, 2011 – All rights reserved 7


IV.

Outline

This thesis is divided into eight chapters. This first chapter of introduction gives a broad perspective of the study which will be narrowed by the research question in the following chapters. The chapter 2, “Training solutions for expatriates”, reviews relevant theories about international assignments and training, presents existing cross-cultural training frameworks and proposes a training model for French expatriates in India. The chapter 3, “Cross-cultural management theories”, is a presentation of the major theories about cross-cultural management. Then, a framework based on these theories is proposed. It identifies areas on which to focus on in order to study cross-cultural management in India. The chapter 4, “Background about business in India”, describes the aspects of the Indian environment that can be useful to know for expatriates: governance, legal and tax system, Indian etiquette. The chapter 5, “Methodology”, explains the research method chosen and how the study has been carried out. The chapter 6, “Results”, is the presentation of the empirical results that has been carried out through the interviews conducted. In the chapter 7, “Analysis and discussion”, propositions made in chapters 2, 3 and 4 are reconsidered in the light of the empirical results. The chapter 8, “Conclusion and implications”, states conclusions drawn from the analysis and discussion chapter and presents the implications of the study, that is to say a training program especially dedicated to French managers’ expatriation in India.

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Chap. 2

TRAINING SOLUTIONS FOR EXPATRIATES

I. International assignment cycle models Caligiuri, Phillips, Lazarova, Tarique & Burgi (2001) describe the international assignment as divided in four periods: honeymoon, culture shock, adjustment and mastery stages. This model assumes there is no training program before the departure (Grundey, 2008) which can explain why the process of adaptation is so long. It allows having a first synthetic overview of what happens for expatriates during an expatriation without training. The honeymoon is a two months period of time during which the expatriate is very open to the culture he or she is discovering. The culture shock stage occurs when the expatriate does not yet understand how to behave in the host country. The adjustment stage represents a period where the expatriate begins to adapt to his or her new environment, followed by the mastery phase, which reflects total adaptation to the host country. In contrast, Christstensen and Harzing (2004) propose a model based on the fact that preparation before expatriation and repatriation are two periods integrated into the international assignment. The model is an unbroken cycle based on the following steps: recruitment, hiring, preparation, expatriation and repatriation. This model, which includes a training program before departure, is the most commonly used by academics (Grundey, 2008) and will be the basis of the training program built in this study.

II. Cross-cultural training effectiveness GMAC Global Relocation Services (2004) conducted a survey in 2004 with 134 international human resources managers from small and medium companies representing 7,486 offices all over the world, and an expatriate population of 31,215 persons out of 4.5 million employees. The results show that 60% of the respondent companies propose cross-cultural training before expatriation and 28% provide it for the entire family of the manager. The training is mandatory only in 26% of the respondent companies. According to the literature, cross-cultural training is positively correlated with the success of expatriates. Eschbach, Parker and Stoeberl (2001; Nadarajah, Ahmad Kamil, Yussof, & Kadar Khan, 2011) demonstrate that cross-cultural training leads to better expatriates’ achievement. Morris and Robbie (2001; Nadarajah, Ahmad Kamil, Yussof, & Kadar Khan, 2011), identifying a positive correlation between cross-cultural training and expatriates’ results. This theory supported by Caligiuri, Phillips, Lazarova, Tarique & Burgi (2001), shows that cross-cultural training gives expatriates the ability to anticipate, which makes them more efficient in the host country. Siervers (1998) underlines that both expatriates and their families need such training. Waxin & Panaccio (2005) highlights that cross cultural training programs for expatriates and their family have a positive effect on work, interaction and general adjustments. Waxin & Pannaccio (2005; Nadarajah, Ahmad Kamil, Yussof, & Kadar Khan, 2011) demonstrated that training is a way to reduce cultural gap efficiently. 9



The type of training and how it is conducted is important (Waxin & Pannaccio, 2005; Nadarajah, Ahmad Kamil, Yussof, & Kadar Khan, 2011). In many companies, training is the same for all destinations whereas training focusing on the host country culture are the most effective. Waxin and Pannaccio (2005) highlight that cross-cultural training is better than a conventional didactic program: indeed, it makes expatriates change their attitude toward foreign cultures and improve their relationship with local partners or employees. Barker (2004) shows in his study how important it is to tailor a training to make it adapted to the international assignment of the expatriate. Mansour and Wood (2010) confirm the importance of training for expatriates because it prevents failures and as a consequence reduces unexpected additional costs.

III.

Cross-cultural training models

Based on the model presented by Christensen & Harzing (2004), Grundey (2008) proposes a model of international assignment (IA) aiming at reducing the cultural gap to avoid expatriates’ failure. This model is divided into nine stages 1 : general research about the host country, planning and objectives, candidates’ selection, primary orientation, pre-departure training, expatriation, international task achievement, repatriation and task evaluation. As proposed by Christensen & Harzing (2004), these stages can also be split between the three following steps: before IA, during IA, after IA. Mendenhall & Stahl (2000) state that in most companies, the HR policy regarding cross-cultural training is based on the assumption that pre-departure training is sufficient. This is a big mistake. The analysis of the expatriation process shows the importance of continued training after the departure of the expatriate (Gudykunst, Guzley, & Hammer, 1996; Mendenhall, 1999; Osland & Bird, 2000), it is sometimes considered as more efficient than pre-departure training (Black, Gregersen, Mendenhall, & Stroh, 1999; Mendenhall, 1999). For Mendenhall & Stahl (2000) there are three main emerging issues in term of cross-cultural training: in country real-time training, global mindset training and CD-ROM/Internet-based training. Mendenhall & Stahl (2000) show that real-time training is the best way to answer to expatriates’ daily questions and challenges. They state that it is the most individualized and efficient training. Indeed, since expatriates are already working in the host country, they can apply directly what they have learned and transform quickly this knowledge into adjustment skills. This training can be provided by a local consultant who is available to answer the expatriate’s questions quickly and to give relevant advice (a type of personal coach). The absence of in-country training can generate negative behaviors (Mendenhall & Stahl, 2000) and lengthen the period before reaching full efficiency (the mastery stage pointed out by Caligiuri, Phillips, Lazarova, Tarique & Burgi (2001)): without sensible advice, the risk is that expatriates reinforce stereotypes and misconceptions about the host culture, talking only with other expatriates. Mendenhall & Stahl (2000) explained that traditional pre-departure training and in country realtime training are complementary. Traditional training gives a first overview of the host culture and helps the expatriate to become familiar with local values, concepts and behaviors without 1

For more details, please consult Internationalization and cross-cultural business environment: Modeling the training process of expatriates (Grundey, 2008, p. 126)

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understanding them totally. It is the first way to develop a global mindset but it is not flexible enough to cover all the areas expatriates will need to succeed during their international assignment. In order to improve the efficiency of traditional training, companies can use repatriates and “reverse expatriates” (people from subsidiaries who come to the headquarters for a special mission). It allows future expatriates to have a real contact with people who have a strong experience in the host country, which is a real benefit according to Mendenhall & Stahl (2000). To sum up these arguments, the first proposition is stated as follows: Proposition 1: A three-step training program based on pre-departure, real-time and repatriation training can help French managers in the process of expatriation in India.

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Chap. 3

CROSS-CULTURAL MANAGEMENT THEORIES

I. The concept of culture Culture is a part of human society and plays a role within organizations, in particular in the context of globalization. In order to understand the influence of culture on business environment and management within companies, it is necessary to study this concept.

1. Understanding the concept and qualifying a culture There are several definitions of the concept of culture which are slightly different according to the point of view adopted –political, philosophical, national, and managerial. Hofstede provides a definition for culture widely cited in the cross-cultural management literature, perhaps because it is broad enough to integrate many other definitions of culture. He defines culture as “the collective programming of the mind which distinguishes the members from one human group to another […] Culture, in a sense, includes systems of values; and values are among the building blocks of culture” (Hofstede, 1984, p. 21). That is to say members of an entity are programmed by the group to see the world with a pre-determined point of view. It means besides that culture is acquired more than innate; it is taught from generation to generation to young children. Finally, this conception underlines quite well the relativity of the concept of culture and the fact that there are not universal standards to define it and not superior cultures either. When comparing cultures, the main risk is to stereotype too much. It reduces the complexity of a culture (Kumar Singh, Srinivasan, Sista, & Parashar, 2008). The study of different cultures can be done by the identification of general trends of each culture and then, by the comparison of these trends. The result is the construction of stereotypes that can be representative respecting some conditions. Adler (1991) states five perspectives that have to be kept in mind to create useful stereotypes. They have to: describe a group, not a single person; be descriptive, not be judgmental of value; be accurate, and be re-evaluated frequently. One of the objectives of this paper is to stereotype cultures in a proper way.

2. Different levels of culture Culture begins to develop within a group of persons who share a common experience (Schein, 1999). In a business context, culture can emerge at different levels. It is what Schein (1999) calls “sufficient shared history”. This collective experience is associated with different levels of culture identified below. 2.1 National culture It is sometimes necessary to distinguish the words ‘culture’ and ‘nation’ when talking about cross-cultural management (Tayeb, 2003). The notion of national culture is based on the concept of nation-state and is used as a model for the majority of the studies. Meek (1988) assumes that culture can be understood as a universal concept. However, a multidimensional conception of culture appears to be closer to the reality, in particular when countries with a wide cultural diversity such as India are studied (Kumar Singh, Srinivasan, Sista, & Parashar, 2008). In spite 12



of the fact that national culture can be heterogeneous, according to Tayeb (2003, p. 13) there is “a constant thread […] through our lives which make us distinguishable from others, especially those in other countries: this thread is our national culture”. This paper tends to identify the most relevant “constant threads”. 2.2 Organizational, corporate and professional culture Organizational culture is the acceptance, tacit or formal, of norms and behaviors by the members of an organization (Schein, 1999; Browaeys & Price, 2008). Corporate culture is based on this notion but goes further. It finds its roots through organizational culture and national culture as well, or even through a mix of national cultures, as in the case of multinational companies or Joint Ventures (Meschi & Roger, 1994). In the particular case of multinational companies, corporate culture can be either controlled by the headquarters, or very flexible and adapted to the local environment. This choice is strategic and can be a key success factor for the development of a company. The purpose is to determine the depth and the importance of national culture before making this choice. In this paper, it is assumed that expatriates are working in a local environment that requires total adaptation (Meschi & Roger, 1994).

II. Theoretical frameworks to compare cultures Since the beginning of the 20th century, scholars have worked on models to qualify and understand cultural differences. Working in a cross-cultural environment requires an adaptation and an understanding of norms and values shared by local partners. Models to identify and analyze cultural differences used in this paper are the following.

1. Comparing the influence of the context Communication is based on interpretation and the sharing of information. The way to express information is closely linked to values shared by members of a cultural group and influenced by the reaction of the group in a particular situation. Hall (1976) developed a theory built with qualitative data based on this observation and distinguishes high-context and low-context cultures. It is useful to understand why communication differs between cultures, in particular when developing business partnerships in a cross-cultural context. According to Samovar and Porter (1995, p. 101) cited in Mead (2005): “a high-context communication or message is one in which most of the information is already in the person, while very little is in the coded, explicitly transmitted part of the message. A low-context communication is just the opposite; i.e., the mass of the information is vested in the explicit code”. 1.1 High-context culture In high-context cultures, people are really attached to shared experiences and environmental interpretations when they communicate. Since their birth, they learn how to interpret clues (verbal or not) discernible to understand the indirect meaning of messages (Hall, Beyond Culture, 1976; Mead, 2005). The main features of high-context cultures are the following (Straker, 2006): implicit and nonverbal communication, personal acceptance of failure, reserved reactions, distinction between “in group” and “out group” people, strong links between people, long-term relationships with high commitment, flexible time, process being more important than product. 13



1.2 Low-context culture The low-context culture is one in which the environment is less important and nonverbal behaviors are not common. Communication is clearer and more direct (Hall, 1976). The main features of low-context culture are the following (Straker, 2006): explicit and verbal communication, blame others for failures, external reactions, flexibility and openness regarding changes in the group, fragile links between people, low commitment to people, time management and organization, and where product is more important than process.

2. Comparing status and function Scholars approached research around cross-cultural environment from a relational point of view too. Adler, Campbell and Laurent (1989) consider the management as a process whereby managers express their cultural values. Studies were carried out to define which points have to be observed in a cross-cultural context to understand better the nature of the relationship between managers and employees (Adler, Campbell, & Laurent, 1989): o Manager’s status out of the workplace: in some cultures the manager is a superior whatever the place or context whereas in other cultures, a superior- subordinate relationship exists only in the workplace. o Ability of the manager to bypass hierarchy: in some cultures it is normal to bypass the hierarchy, it is even necessary to be viewed as efficient whereas it is viewed as a real betrayal in other cultures. o Manager as expert or as facilitator: in some cultures the manager has to be the best expert whereas in other cultures he is the one who knows how to manage experts.

3. Comparing values in the workplace Hofstede (2001) conducted a study of IBM managers across 50 countries from 1967 to 1973, which become a reference for cross-cultural management researchers. His work demonstrated that values in the workplace are not universal despite the implementation of international norms; local values survive within multinational companies. Besides, local values are a kind of lens through which employees decode global norms. Consequently, if a company wants to impose global values to its employees, it takes the risk of generating a moral problem and inefficiency. Hofstede (2001) compared different cultures through five dimensions: power distance, uncertainty avoidance, individualism versus collectivism, masculinity versus feminity, and a long-term versus short-term orientation. 3.1 Power distance Power distance measures the way of which inequalities are handled within a country and as a consequence, the hierarchical relations that exist in the workplace. When power distance is low, hierarchy is a simple agreement of convenience, managers admit that they need support and subordinates expect to be consulted during the decision making process. At the opposite extreme, when power distance is high, managers make decisions in a more authoritarian manner and practice paternalism while subordinates execute orders (Hofstede, 2001).

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3.2 Uncertainty avoidance The objective is to measure the risk orientation of a culture. For instance, Japanese prefer to secure the future even if it is costly whereas Americans prefer to take risks to win more (Hofstede, 2001). 3.3 Individualism versus collectivism When individualism is high, individuals and personal development are promoted and results are highly rewarded within companies. When a culture is more collective, individuals are members of a group and the most important thing is loyalty to the group in order to compete against other groups (Hofstede, 2001). 3.4 Masculinity versus feminity When masculinity is high in a culture, roles are clearly defined: the ideal of the society is result and men are totally dedicated to their professional activity whereas women stay at home. Men are competitive and assertive whereas women are tender and relationship oriented. When a culture is more feminine, roles are less distinct and men and women have egalitarian status. Modesty is valued, private life respected, human relationships are considered to be more essential than power and competition between individuals aiming at reaching a higher social status is viewed as suspicious whereas outsiders are looked upon kindly (Hofstede, 2001). 3.5 Long-term versus short-term orientation This dimension had been developed after the previous ones, in parallel with the development of studies about Confucian culture. Principles of Confucian cultures are the following: stability is based on unequal relationships between people, family is the basis of organizations, virtue consists in working hard and not spending more than necessary and being patient and persevering is essential. It corresponds to a long-term orientation (Hofstede, 2001; Mead, 2005).

III.

Central areas to study in cross-cultural management 1. Definition and framework

The strategic dimension of cross-cultural management is obvious in the current business context where international business relations are dramatically increasing. In a cross-cultural context, the role of the manager is to take into account cultural diversity and to federate. Nancy Adler (2008) gave a clear definition of cross-cultural management: Cross cultural management explains the behavior of people in organizations around the world and shows people how to work in organizations with employees and client populations from many different cultures. Cross cultural management describes organizational behavior within countries and cultures; compares organizational behavior across countries and cultures: and, perhaps most important, seeks to understand and improve the interaction of co-workers, managers, executives, clients, suppliers, and alliance partners from countries and cultures around the world. (Adler & Gundersen, International Dimensions of Organizational Behavior, 2008, p. 13)

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The first issue for managers who work in a cross-cultural context is to understand and to adapt themselves to a new business environment and its own rules. Even if multinational companies’ subsidiaries seem to be similar across the world, employees’ behaviors are different in each geographical area. As a consequence it is crucial for a manager to identify the differences that exist with his or her home country (Urbonvicius, Dikcius, & Grundey, 2006). Lewis (2000) identifies the main differences that can have an influence in a cross-cultural context: language usage (verbal and non-verbal languages), use of time, decision making processes and behavior standards. Hun and Jenkins (2000) state that cultural differences that have to be taken into account are: different aspects of time (punctuality and relationship dimension), linguistic barriers (pronunciation, language), different business practices, cultural stress (blocks stress and interpret situation with and open minded approach) and body language and greetings. Crossing these two frameworks and theories about culture enables one to define the main areas to study in order to fill the gap between Indian and Western business cultures. The five following dimensions are identified: identity, communication, use of time, management and status, empowerment and initiatives.

2. Identity Hofstede’s model (2001) is controversial because of the methodology used but his study is the biggest that currently exists. Individualism is one of the variables studied by Hofstede. It represents the level of integration to a group of individuals within a given culture (Hofstede, 2001). The opposite of individualism is collectivism. Individualist societies are characterized by the distance that exists between people, and the interest people have for themselves and their immediate family. In collectivist societies, people are integrated within groups with a strong cohesion since their birth. The role played by extended family is often central (Hofstede, 2001). Hofstede grades individualism in India 48 whereas France was graded around 80, meaning that France is much more individualistic than India. Hofstede specifies that a difference of ten points between two countries shows up a significant difference in workplace behaviors and standards (Itim International, 2011). Western and Indian social make-up are very different according to Manian (2007). She describes Indian society as governed by many groups and sub-groups such as clans, castes, religions. There are different levels of connection which are more or less strong, from belonging to a family to the simple fact of being Indian. The role played by the extended family is central. It is normal for Indian people to live with their parents, uncles, brothers and sisters in the same place, even when they are adults and married. The role of each member of a family is to guarantee the life of the group. Parents take care of their young children who will take care of the elders when they will be adults. It can be explained in part by the fact that Indians do not have a formal Social Security system. Even though the situation is evolving due to the growth of cities and migrations to find a job; Indians still make many efforts to communicate with their relatives, for example by organizing at least one annual meeting with them, even if they live at the opposite side of the country (Manian, 2007). They rely on their family for everything (arranged marriage, purchase of a house, name of a child) and private life does not exist within this group (Lewis, 2010). This strong family system makes Indians conditioned to work as a team (Manian, 2007). They know almost from birth how to deal with an extensive network, interdependent relationships, © Valériane Henry, 2011 – All rights reserved 16


obligations and responsibilities inherent in collective life (Storti, 2007). This collectivist dimension does not mean that Indians do not have any personal aspirations but they tend to develop them in such way that they cannot be separated from those of the group (Storti, 2007). According to Manian (2007), this powerful and omnipresent family system is hierarchical: young people’s duties are to behave with deference and extreme respect towards elders. There are strong inequalities within groups. This is the reason why Indians know very well how to adjust their behavior according to the status of the person they have in front of them (Manian, 2007). Within companies, senior managers are often seen as a father figure (Trompenaars, 1996) and loyalty is a central value (Lewis, 2010). In collectivist societies, promotions at work are more often motivated by the age and the seniority rather than by the skills (Cullen, 2001). This is the opposite to western societies where egalitarianism and equity between people are one of the most important values; they are more or less noticeable according to the country but always present (Storti, 2007). According to Storti (2007) and Gesteland and Gesteland (2010) another aspect of collectivism is a need to preserve the harmony of the group and to save face in public in all situations. For instance, one of the main reasons for the durability of arranged marriages is that families choose their child’s husband or wife in order to be sure she or he will fit well with the group so that the harmony is protected. These authors state that the necessity to save face implies the existence of an inherent code of conduct which is qualified by being humble, effacing, deferring to seniors, avoiding public disagreements and confrontations, never causing offenses, never embarrassing anyone in front of other people or in front of the group. They underline that in the workplace, Western managers behave in a direct way. For instance, they can give negative feedback during meetings, which is very offending for Indian people. For Gesteland & Gesteland (2010), the managerial challenge is to find a way to overcome this cultural gap without reducing the efficiency of the team. Storti (2007) and Lewis (2010) describe Western people as more individualistic and selforiented. The role of the family is to prepare members to leave on their own. The family encourages children to look after themselves, to be independent and self-reliant. Given that wellbeing of one person does not depend on the others, direct consequences are that people are less attentive to feelings, moods and wishes of the others (Storti, 2007; Lewis, 2010). In addition, it can be noted that the survival of the group is not a parameter taken into consideration when going ahead (Storti, 2007). The collectivist or individualist dimension of a society often determines if this society is relationship or deal oriented (Gesteland & Gesteland, 2010; Lewis, 2010). The importance given to human relations inherent to collectivism explains why Indians are relationship oriented (Gesteland & Gesteland, 2010) whereas Westerners are more deal oriented (Lewis, 2010). Lewis (2010) describes relationship-oriented people as people who rely on contacts, face to face and referral introductions rather than on written contracts, rational data about a deal, laws and regulations to solve problems or disagreements. That is why it is common in India to organize parties or dinners with professional relations to develop closer relationships with them and strengthen the professional network. He describes Western people differently. For Westerners, 17



including French people, facts and figures are uncontestable that is why the content of a deal is more important than human relations established with the partner (Lewis, 2010). However, it is important to keep in mind that making efforts to socialize with relationship oriented people is a good way to create trust and motivation and to ensure the efficiency of the cooperation (Lewis, 2010). One can summarize these arguments with a second proposition as follows: Proposition 2: The Indian business environment is more collectivist than the French one, which has an impact on behaviors in the workplace. (See exhibit 1)

3. Communication In each country, language is a tool used in different ways. It allows people to deliver messages but actually much more than that. Indeed, it gives information about national characters and philosophy (Lewis, 2010). Hall (1976) distinguishes high and low context cultures. He states that in high context cultures communication is direct and there are numerous interpretations possible, based on the body language, tones or words used. In low context cultures, what is said is what is meant, communication is direct. According to Manian (2007), India is a high context culture. People do not state clearly what they expect from others, they already know it. Manian (2007) underlines that in Western countries low context culture is more common. People develop relationships but generally for a shorter period of time and for a precise reason. This difference compels westerners to ask explicitly what Indians mean and to be careful with the use direct language. Storti (2007) states that in India, the role played by the indirect and implicit communication and by the necessity to preserve harmony with others, generates unknown or hard to decode behaviors from a Western point of view. He identifies the first problem met by westerners which is the incomprehensible use of the word “yes”, as it is often the case in collective cultures to maintain good interpersonal relations. “Yes” does not mean anything for Indians, it is just a word used to show that they are listening to you. It is the same for “sure”, “fine”, “no problem” whereas for westerners, these words are used to express agreement. This Indian “yes” generally comes with a kind of head wobble very close to the Westerners’ “no”. Indian people cannot explain when and why they use it because they do not admit they do this gesture. Storti (2007) explained that concerning the Indian “no”, subordinates (younger people, workers, suppliers) never use it to avoid offending anyone. They use indirect methods such as the absence of yes, the absence of answer, changing the subject, postponing the answer, repeating the question, hesitating or turning the question to the speaker to signify “no”. The problem is that Westerners generally do not understand this pattern of communication. Storti (2007) notices that there is the same problem when Indians want to deliver bad news or negative feedback. In order to make others understand they will not respect the deadline, they use indirect ways to make the partner ask whether a delay is needed. Westerners do not even notice this indirect message and do not ask anything. Similarly, when it is not possible for Indians to do something, they avoid direct refusal and it can be understood like an acceptance by Westerners. Lastly, in order to avoid a © Valériane Henry, 2011 – All rights reserved 18


negative answer, Indians never ask for help but they try to give signals so that the person they are talking to proposes it by himself. Storti (2007) points out that a risk of misunderstanding exists when non westernized Indians misinterpret Westerners’ answers, considering wrongfully they think and talk indirectly just like them. Lewis (2010) defined communication and listening patterns for each culture. He describes Indian communication as human, sympathetic, generous, verbose, flexible, respectful, and underlining the collective nature of challenges, but also as reluctant to criticize and managing perfectly well ambiguity. Lewis (2010) qualifies the Indian listening pattern as relationship oriented; Indians are touched by eloquence, hurt by irony or pressure and more experienced than they look. They are not such a difficult audience and there is no doubt about their sagacity. Concerning Westerners’ communication, it is much more based on rationality and they focus on the argumentation more than on the form or the speech. Lewis (2010) defines the following French communication pattern: verbose approach, facts and proposals, use of imagination to reinforce logic and clarity. He stated that when they are listeners, French people listen to get information, look for logic and have a huge self-esteem of their own knowledge. In addition, Lewis (2010) points out that Indians do not use the same scheme than Westerners to interact. They interrupt the speaker in front of them to continue a conversation whereas in Western countries each speaker talks successively (Lewis, 2010). Culture provides a code of conduct taught by the society: it defines how individuals ought to behave, what are the rules of correctness in varying circumstances (Lewis, 2010). Physical distance and body language are a part of this code which differs from one culture to another. Lewis (2010) states that India is a crowded country and people are used to living close together; as a consequence, they are very tactile. However restraints exist especially between men and women or people from different classes (Lewis, 2010). Surprisingly, Indians are wary of body contacts and displays of affection in public and “Namaste”2 with folded hands is preferred to handshakes (Manian, 2007). Lewis (2010) states that the main difference between Western countries and India is the complexity of the codes. Indeed, Indian non-verbal communication is based on religious reasons; as a consequence the behavior adopted by people is adapted to the situation and to the caste. It is impossible for Westerners to be aware of all these rules but the knowledge of the most important, such as physical distance, can be a means to avoid daily tensions. At last, it is necessary to tackle another problem which can be surprising but which really matters: the Indian English (Storti, 2007). Storti (2007) stated it is often a disappointment for Westerners who expect to understand everything in India because they will work with English speakers. He explains that Indians do not know how hard it is to understand them because they speak English since birth; as a consequence they master this language from their point of view. In reality, Indians are fast talkers, have a very strong accent and speak Indian English. Westerners have to be very attentive and not to be reluctant to ask for clarification when it is necessary, without embarrassing the person they are talking to.

2

The Indian way to greet people is to say “Namaste”, hands together with palm touching in front of the chest.

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One can summarize these arguments with a third and a fourth proposition as follows: Proposition 3: India has a high context culture whereas France is closer to the low context culture scheme which has direct consequences on communication in the workplace. Proposition 4: Body language and Indian English are two key issues for French managers working in India. (See exhibit 1)

4. Use of time Lewis (2010) remarks that time is seen very differently in Eastern and Western cultures and there are even many different perceptions within these two areas. He states that misunderstanding concerning time conception is a real issue in a cross-cultural business environment. Depending on the culture of people participating to a meeting, time can be considered as precise and deadlines as highly important for ones whereas time is approximate and deadlines viewed as simple guidelines for others (Trompenaars, 1996). The origin of the conception of time is religious (Lewis, 2010; Manian, 2007). In India, it is mainly the reincarnation belief that influences the conception of time (Lewis, 2010). Time is cyclical; that is why it is not necessary to rush on opportunities given that they will inevitably reoccur in the future, even if it is in another life (Lewis, 2010). The Christian concept of good hell and heaven is at the origin of Westerners’ time conception. Present actions determine the future of each individual; that is why it is necessary to plan the present to make the future better (Ferraro, 1994; Lewis, 2010). Western countries follow a linear-active time scheme (Lewis, 2010). It means that time is a tangible asset, time is money; it is something segmented, modeled and that can be organized and managed by people. The future is considered as something known given that everything is already planned. In Asian countries, time is conceived as a cycle (Lewis, 2010). It is not a straight road totally manageable and there is a real adaptation of humans to time and events. Time passing without making any decision is not seen as a waste of time but as a way to think in order to act in a better way later. There are other words to define these two types of behaviors regarding time: polychromic and monochromic time (Hall, 1985; Gesteland & Gesteland, 2010). Polychromic people are characterized by their lack of punctuality, their interruptions and multitasking behaviors during meetings and their late deliveries and missed deadlines. For monochromatic people, punctuality is expected, meetings begin and finish on time, participants focus on one task at a time and deadlines are sacred (Gesteland & Gesteland, 2010). Manian (2007) describes time as flexible in India. Indians can work a lot, sacrificing week-ends but they are not necessarily efficient in terms of time consumption. For instance, they can be late in the morning, take the time needed to help a colleague even if they do not work on the same project but do additional hours for their own project activity. They consider they have plenty of time to reach their goal and time never prevails over human relationships. It can be noticed that © Valériane Henry, 2011 – All rights reserved 20


the situation is evolving and westernized and educated Indians who work on multinational companies try to monitor themselves to adjust to the western concept of punctuality (Manian, 2007). Lewis (2010) describes Westerners as focused on punctuality and using tools such as agenda and planning constantly in order to avoid wasting time (Lewis, 2010). French are slightly different because they can have polychromic tendencies regarding punctuality but it remains far from the Indian conception of time (Hall, 1985). One can summarize these arguments with a fifth proposition as follows: Proposition 5: Indians time conception is polychromic whereas French one is more monochromic which can cause tension in a cross-cultural business context. (See exhibit 1)

5. Management and status 5.1 Power and hierarchy The recognition of power differs according to cultures. Hofstede (2001) studied the “power distance”; it is a way to measure the extent to which inequalities regarding power distribution and acceptance are tolerated within a country. Within organizations, “power distance” is determined by norms and codes that allow superiors to influence behaviors and actions of their subordinates. “Power distance” measures the extent to which subordinates accept unequal distribution of power and give their boss more power than what he or she really has (Adler, 1991). It is fundamental for westerners to understand the Indian management style in order to know how Indians interact with managers and what they expect from them (Storti, 2007). According to Hofstede (2001; Mead, 2005), people are not equal in terms of physical or intellectual capabilities and it is the reason why inequalities can exist. All societies are unequal but with different levels. In his survey, Hofstede attributed a score of 77 to India whereas France is around 70 (Itim International, 2011). He states that a gap of ten points between two countries has a serious impact on cross-cultural relations in workplaces. Just to give an idea, European countries such as the UK, Netherland, Denmark, Finland, Germany, Sweden and Switzerland are graded around 35 (Storti, 2007) which is far from the French score. Europe is not homogeneous; it is confirmed by the GLOBE study (House et al. (eds) , 2004) in which sixty countries are placed into ten different clusters. Countries from the same cluster are quite similar in term of culture. European countries do not constitute one cluster but are split between the following ones: Nordic, Anglo, Germanic, Latin European, and Eastern European. The model of a manager in India is the father or the oldest male, as it is the case in the family; it can be described as nepotism (Lewis, 2010). Storti (2007) suggests that the Indian extended family system governs hierarchical relations between subordinates and managers too. In the Indian workplace, the best way for survival is deference; the rule is never to offend or disagree with a superior to preserve harmony. Indians know how to manage compromises in order to follow the prevailing direction and to be in line with what is expected from them. They obey 21



before asking or thinking and they never act in a sense that could make the boss lose his or her face. If they disagree, they try to find an indirect way to express their opinion and it is often not understandable for Westerners (Storti, 2007). But the hierarchical system gives them duties too: the manager has to be humanistic and initiate promotion for his employees (Lewis, 2010). He is in charge of keeping them happy and giving them the motivation necessary to work hard (Manian, 2007). It could be considered as a sort of paternalism. There is no unique Western management style but it is possible to identify common traits as Storti (2007) pointed out. It is overall less autocratic and authoritarian than Indian management style. Relationship of unequal is less visible and power is exercised with restraint. Subordinates are generally consulted or at least informed when decisions are made, and creativity and initiative taking are rewarded (Storti, 2007). Depending on the country, hierarchy is more or less noticeable. Lewis (2010) stated that in Western countries hierarchical pyramid is flatter than in India: priority is given to consensus and consultation, and managers talk with other executives before making decisions. Leadership is based on merit, skills and achievements (Lewis, 2010). Lewis (2010) underlines that France appears to be an exception. Leadership is highly personalized and chief executive status is given according to family, age, education, professional qualifications and oratorical skills. As it is the case in India, subordinates expect a lot from managers but they are more often consulted and communication is more direct (Lewis, 2010). One can summarize these arguments with a sixth proposition as follows: Proposition 6: India is similar to France in that it is a country with a high power distance culture and where hierarchy-based management style. (See exhibit 1) 5.2 Gender issues in a cross-cultural perspective The role played by women in the Indian society has evolved for few years (Dutta, 2008) and equality for women has become a major issue (Lewis, 2010). In spite of this recent evolution, women’s status remains different in India from Western countries. Sexes are traditionally more segregated in Indian than in the West and it is still visible in buses or classrooms where there are special places dedicated to men and women (Storti, 2007). In traditional Hindu education, the subordination of women to men is taught to children: young girls have household duties and have to do whatever the elders ask whereas boys are spoiled by their mother and aunties. Even though the Indian government tries to push families schooling their daughters, 78% of girls are removed from school versus 48% for boys (Kripalani, 2005). Storti (2007) explained that this traditional picture is changing, especially in urban areas and in southern India where gender equality is increasingly accepted. Nevertheless, among middle-aged and older men it can continue to be awkward for them to work with a woman. It explains why it is it still common for women to feel isolated and not taken into account when decisions are made in more traditional settings. Indian women have to assert themselves more than their male counterparts to be respected and as a consequence, are described as tougher than men in management. But even for this type of woman, submission around Indian men in noticeable.

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One can summarize these arguments with a seventh proposition as follows: Proposition 7: Males dominate the Indian society which has an impact on management in the workplace, in particular for French women managers. (See exhibit 1)

6. Empowerment and initiatives Storti (2007) describes how the deference syndrome influences management in India. The main difference between Western countries and India is empowerment. For instance, to handle a routine matter a Westerner will talk directly to the team who works on the subject concerned whereas in India, he or she should go through the Indian boss. In this situation, members of the team who are not empowered would feel very uncomfortable. This deference and extreme respect of the chain of command is not a common behavior in western countries where proactivity is highly encouraged (Storti, 2007). Storti (2007) underlines the direct consequence for Indian subordinates, that is to say a reluctance to use their own judgment and to make decisions alone, without consulting their superior. This behavior is considered as totally irrational for western managers. When instructions are bad or incomplete, Indian subordinates never interpret or correct them by themselves in order to prevent their boss from being put in an awkward position. They can try to give their opinion asking questions to show their doubts but it is done in such a polite way that Westerners do not even notice it. Storti (2007) points out that it is important to be aware of the different meanings of the word “initiative” in India and in Western countries to identify the gap between the two cultures. For Westerners, taking initiative is solving problem or acting on their own without being guided by a manager. In India, taking initiative is the fact of identifying potential improvements on their own, without acting before their idea is validated by the manager. Indians could be innovative but it is not at all encouraged; that is why Westerners who expect proactivity from their subordinates are often disappointed. Storti (2007) notices another point that can have negative consequences: it is the apparent unwillingness of Indian to admit their mistakes. Even if they do not understand, they do not ask for clarification from the manager for the same reason: to save face. To sustain efficiency and productivity at work, the manager has to find a way to be sure of the clearance of his or her explanations without using direct questions. Lewis (2010) noticed that even if Indians are highly collectivist, they have the skills to develop individuality and brilliance when they have to negotiate on their own with outsiders. They are very clever to do business and use plenty of tools to reach their goal. The Westerner’s accepted idea that Indians are reluctant to make decisions and to be innovative is false. This behavior is a code included in a whole which is Indian culture (Storti, 2007). One can summarize these arguments with an eight proposition as follows: 23



Proposition 8: Proactive behavior is rewarded in France and not valued in India which can have direct consequences for efficiency in a cross-cultural context. (See exhibit 1)

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Chap. 4

BACKGROUND ABOUT BUSINESS IN INDIA

This chapter is based on the following proposition: Proposition 9: A basic knowledge about governance, etiquette and religion in India can help French managers in the process of expatriation.

I. Governance 1. Political environment Manian (2007) describes India as the largest democracy in the world. Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) add that it is a stable, parliamentary and secular democracy with a reliable legal framework and accounting system, and an independent judiciary. Indian democracy is divided in federal states with different levels of governance which are national, state, local, and city governments. At each level the pluralism of political parties does exist. The two main parties at the national level are the Indian National Congress and the Bharathiaya Janatha, and there are lots of local political parties which are more or less close to these two main parties. Another point is that the press is free to give its opinion in India, even when it is different from the political parties’ proposals. Overall, the strength of the Indian democracy comes from the great diversity of its actors. The importance of religious unity is central and it possible thanks to the consensual model established which makes Indians unified during critical times. Even if each region in India has its own history, the economic development is unequal, geography is heterogeneous and there is a multiplicity of languages and religions, India has been a nation state with several consensual cultures for more than fifty years (Kumar Singh, Srinivasan, Sista, & Parashar, 2008). Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) highlight that since the liberalization of the economy in 1991; India has become attractive for foreign investors. There is no political risk except in the Kashmir valley but laws exist to limit foreign investments in this special zone. Manian (2007) explains that to be successful in India it is necessary to talk with the central government and the state government where the business will be set up. States are quite autonomous and authority between central and state governments is shared as the following: o Central government is in charge of defense, foreign affairs, currency, income and tax services, customs and excise duty, railways, shipping, posts and telegraph. o State governments are in charge of public order, police, public health, communication, agriculture, lotteries, taxes on entertainment and wealth, sales tax, VAT (value added tax). o There are fields that can be managed by both, which can sometimes lead to discrepancies. It is the case for: electricity, newspapers, criminal law, marriage and divorce, stamp duties, trade unions and price control. Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) underline that elections are very important for all Indian citizens. According to Kumar (2007) they have often an unpredictable © Valériane Henry, 2011 – All rights reserved 25


behavior when they vote, and it is one of the reasons why the political environment is considered as volatile by foreign investors. He explains that when foreign investors work with governments, projects can be abandoned or negotiations can sometimes become a never-ending cycle if the government decides it. In order to cope with this volatile environment the best way to secure it is to convince local stakeholders that foreign investors’ actions benefit India. For instance the company Hindustan Lever (subsidiary of Unilever) built its good reputation when it decided to indigenize its Indian operations and to promote social objectives proposed by the Indian government within the company. For Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003), the best advice is to develop friendly relationships with political parties and stakeholders of the Indian society to secure the environment. Manian (2007) states it is very important to explore and develop industrial relations with governmental or non-governmental organizations and to become one of the members if it is possible. For instance the Federation of Indian Chambers of Commerce and Industry is linked with many organizations such as the World Trade Organization, the United Nations Industrial Development, the International Labor Organization, the World Bank, and diverse joint business councils with various nations. Another example is the Confederation of Indian Industry (CII) which has a council dedicated to foreign companies and can arrange discussions with officials. Being known by these organizations can help to do lobbying and to protect long term interests.

2. Corruption issues Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) explain that after the Independence in 1947, the Indian government acted in favor of a mixed economy and focused on the role of the public sector. The main consequence of this strategy was the establishment of a bureaucratic system and the development of corruption. In 1991 the government recognized that liberalization of the economy was a step necessary to save the Indian system and it adopted laws to fight against corruption; unfortunately, investigations are often lax and penalties avoided. The NGO Transparency International ranks India 86th out of 91 regarding the level of corruption and gives it a grade of 3.3 out of 10 whereas France obtained 6.8 and is ranked 25th (Transparency International, 2010). By contrast, Manian (2007) recalls the existence of the Right to Inform Act which gives authorities the duty to answer to any question asked by an Indian citizen if the administration has the information. Using it can be a good solution to avoid recourse to illegal means to get information. It allows keeping the right way which is the best one to succeed in running a long-term business in India.

II. Legal and tax system 1. Business and laws The Indian legal system is similar to the British law and legal system; that is to say it is a common law country which has a constitution and in which individuals and properties are protected by rights (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). After the liberalization of the economy in 1991, the government based its policy on the reduction of licenses for Foreign Direct Investments (FDI) to decrease the number of barriers to entry. There 26



are exceptions for strategic sectors such as atomic energy, railway transport, drugs and pharmaceutical products, chemical and explosive products, tobacco, alcohol and products intended for small-scale industries. Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) underlines that foreigners are allowed to participate in the Indian market and that currency is convertible and can be repatriated. Foreign investors have to complete an application called IEM (Industrial Entrepreneur Memorandum) with the Secretariat of Industrial Insurance to receive a permit. They can set up their business wherever they want except in a city with a population larger than a million inhabitants; in this case the company has to be established at least 25 km from the center of the town (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). The objective of the Indian legal system is to create a fair and transparent framework based on equality for employers as for employees (Manian, 2007). For Manian (2007) there are twenty very important economic acts 3 to know when doing business in India, plus the Indian Company Law which set the rules to run a business there. The two most essential acts are the Indian Contract Act and the Negotiable Instrument Act. Manian (2007) recommends studying central and state economic laws before setting up a business; they sometimes overlap and it is necessary to straighten things out at the very beginning. The two main routes for FDI are the following (Manian, 2007): o The automatic approval route (AAR): the only condition is to submit all the information required to the Reserve Bank of India (RIB) within 30 days after issuing shares. o The government approval is necessary when the proposal requires a license, when the company has a prior collaboration in India or has already acquired shares in an Indian company or when the proposal concerns a strategic sector of the economy cited above. In this case it is necessary to submit the proposal to the Foreign Investment Promotion Board (FIPB). There are different forms of organization possible for foreign companies and the best choice depends on the industry and on laws (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). The different possibilities are the following: o Liaison office: dedicated to market study and observation; no business, no tax, no approval from the RBI. o Project office: dedicated to execute a specific project, limited to this project. o Branch office: same activity as the head office of the company, necessity to obtain RBI approval, used by companies to represent the parent company in India for different matters. o Joint Venture (preferred form): partnership or joint working agreement, same laws than for domestic companies (even for 100% foreign equity owned company), limited liability. o 100% owned subsidiary: it can be incorporated in India depending on the sector of activity4 .

3 4

The twenty essential economic laws are detailed in Doing Business in India for Dummies (Manian, 2007, p. 132). Investment caps by sector are detailed in Doing Business in India for Dummies (Manian, 2007, p. 69)

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For Manian (2007) and Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) the first thing to do before setting up a business in India is to hire a consultant with a perfect knowledge of Indian corporate taxes and laws.

2. Accounting and tax Given that India signed the General Agreement on Trade and Tariffs (GATT), the general trade policy encourages exports and at the same time does not discourage imports (absence of quantitative restriction, reduction of duties). The framework for accounting and revelation of corporate information is the Companies Act (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). Manian (2007) detailed how taxes are collected in India: o Central government: income tax, wealth tax, part of sales tax, service tax, customs and excise duties. o State government: intrastate sales taxes, entertainment and professional taxes, liquor manufacturing excises, stamp duties on transfer of property and property taxes. o Local government: VAT, charge for public utilities (water supply, sewerage…). Different types of taxes have to be distinguished: direct taxes paid by payees and indirect taxes paid by consumers (Manian, 2007). Direct taxes include personal income taxes, taxes on corporate incomes, wealth taxes, gift taxes and expenditures and interest taxes whereas indirect taxes include VAT (value added tax), stamps duties, property taxes, import duties and excise duties. VAT system is recent in India and aims at making uniform rates across the country; however, it is not yet established everywhere. The rate of indirect taxes can change every year (Manian, 2007) and state taxes vary from state to state depending if the government is probusiness or not (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003), that is why hiring an Indian tax consultant is highly recommended. As a consequence, re pricing products or services is very frequent and takes time as Manian (2007) highlighted. Concerning Corporate Income tax, it represents 35% on incomes for domestic companies and 45% on income derived from Indian operations for foreign companies, knowing that companies incorporated in India (even 100% foreign equity, excepted for branch ownership) are counted among domestic companies (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). The Income Tax Act stipulates that when sales exceed four million rupees, it is an obligation for companies to be audited and the report has to be checked by the government to detect irregularities (Manian, 2007). The Companies Act stipulates that financial statements have to be audited by a chartered accountant yearly and the director’s report, the auditor’s report, the balance sheet and the profits and loss account have to be submitted to the members of the company (Manian, 2007). In order to promote special fields of activity such as export, scientific research and economic development, there are laws called Tax Concession (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). Rules change among states and only a Tax professional can give advice to take full advantages of this law (Manian, 2007). For instance, for critical and strategic fields of activity such as power or infrastructure projects there is a tax exemption for ten years (Rathinasamy, Mantripragada, Krishnan, & Shivaswamy, 2003). To promote business in given areas governments have created Special Economic Zones (SEZ). The objective is to provide a © Valériane Henry, 2011 – All rights reserved 28


competitive, duty free, cost saving environment to develop oriented businesses like manufacturing, trade or services. Investors benefit goods infrastructures (road, water supply, drainage, and electricity), interesting customs facilities and tax advantages (Manian, 2007). Rathinasamy, Mantripragada, Krishnan, & Shivaswamy (2003) say that the creation of these zones is encouraged by the central government to be developed at a state level rather than at a national level, because it can be politically risky. Indeed, procedures to simplify foreign investments can include relaxed labor rules for instance which can quickly become polemical.

III.

Code of conduct in business 1. Business communities

Manian (2007) describes business communities as a direct reminiscence of the caste system. Traditionally, each class or community has developed special skills and knowledge in a given area of activity, from generation to generation. In addition to the impact of the class system, ethnic criteria and religions are associated with different kinds of trades and as a consequence play a significant role in the determination of the business communities. The membership to business communities is determined by birth, not by choice. The identification of the different business communities can help when doing business in India because it gives information about ancestors, background and how to behave with people. It is a good thing to differentiate the main business communities 5 and to be able to recognize people from each community observing their surname.

2. Indian main codes of etiquette Manian (2007) underlines that making a good first impression is central in building relationship on a good basis. In India, according to custom, “Namaste” is a common way to greet people. Using this sign is highly appreciated given that it shows an understanding of Indian culture. If the person greeted does not answer, it is not because he or she does not greet in this way, it is just an equivalent of a cold handshake. Indians are also familiar and comfortable with the Westernstyle handshake; however, they prefer a limp handshake to a firm grip because it is a sign of respect of the hierarchy. Indian names are very long and hard to remember explains Manian (2007) but they give lots of details about people (language, state of origin, religion…). Sometimes, pronouncing Indian names can be difficult for Westerners; asking precisions to pronounce correctly is a good way to show the effort made and is appreciated. Helping Indian people to pronounce Westerner names avoids them embarrassment when they need to use them. At the starting point of a business relation with an Indian partner, it is recommended to use formal forms such as Mr. or Mrs.; Mr. or Mrs. followed by the surname will be used latter. Manian (2007) points out business codes that cannot be ignored when doing business in India. The first incontrovertible interaction expected is to swap business cards. Indian business cards 5

The most important business communities are detailed in Doing Business in India for Dummies (Manian, 2007, pp. 41-42)

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are very detailed with a list of the academic diploma obtained, especially for young graduates. The mobile number is not specified and added handwritten depending on the context. This can be explained by the fact that Indians use mobile numbers freely when they obtain it that is why it is necessary to select carefully people before giving it. Another important point is the way to dress; Indians like to be elegant and never feel overdressed. For business meetings, a formal trouser and shirt (short sleeves are preferred in the south because of the warm weather) for men, and the same or a long skirt for women are recommended. It is better to wear colored clothes rather than black in India because of the sun and the bad quality of the water used to wash them. Sometimes, when entering in some places, it can be required to remove shoes; in this case, leaving socks too is appreciated. Lastly, offering gifts is common in business relationships. In general, something special from your country of origin is welcome but there are products to avoid. For instance Hindus do no use products made from animals’ hides and black and white colors are considered as unlucky colors; for Muslims, dogs representations have to be banished because it is dirty. Indians do not open gifts when they receive it and often give a gift in return. They use to offer gifts during important religious festivals too; it is possible to refuse gifts by explaining very politely the reason. For instance, one might say “it is not the policy of the company”, to avoid implications of bribery. Indian courtesy is highly extensive and rebuffing it is considered to be a failure for Indian hosts (Manian, 2007). Guests are treated as demigod and have to show they appreciate the efforts made to welcome them. Meals are a central preoccupation and an important part of courtesy and hospitality, which is a part of business in India (Manian, 2007). In order to behave as a polite Indian guest it is expected to eat a big quantity of food with hands or a spoon. The small talk during meals concern subjects belonging to a comfort zone such as the host’s city of origin, children’s education, cricket, family, Indian cinema, and travel in India or abroad. The main topics to avoid are the caste system, money matters, politics, poverty in India and sex. Indian politeness requires that a guest return the host’s hospitality by inviting the host on another occasion. Religion is central in India, 80% of Indians are Hindus and Hinduism is more than a religion, it is a philosophy and a way of life (Manian, 2007). The majority of Indians are devoted and the main goal is to reach an ideal through an idol. They often have a picture of their favorite god in their wallet or at the office and they commonly bow in front of this image before working. Religious ceremonies at the office are important for Indian workers when opening, groundbreaking or launching a factory. A priest speaking in Sanscrit is in charge of the ceremony. More regularly (each week), the ceremony of Puja 6 with or without a priest is made at the office for a chosen god. It is really appreciated that Westerners take part in the ceremony even if they do not stay the entire time (it can be very long). The best behavior to adopt is to watch what others do or to ask what to do. Indians consider the interest shown as a compliment.

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Puja is a religious ceremony during which divinities are invoked and offerings are given to them in order to protect people, buildings or even machines.

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Chap. 5

METHODOLOGY

I. Research strategy “How can we improve French managers’ expatriation in India?” The research problem requires knowledge and a close understanding of the local context and cultural differences. As a consequence the study is based on human behaviors, observations and descriptions of facts and not only on totally scientific and rational data. In this context, the structure of the research has to be flexible in order to answer the question in the best way. This explains why the collection of qualitative data is the most relevant way to obtain workable and reliable results. India is a multicultural country what explains why it is important to be cautious with generalizations. It is necessary to distinguish two types of Indian people: those who are very familiar with western culture and others who are very traditional Indians. The cultural gap is higher with the latter. That is why it is more interesting to focus on them. But in any cases, westernized or not, Indians are very attached to their traditions and their culture, and as a consequence are different from westerners on many points.

II. Data collection process 1. Process: interviews Primary data collection was based on interviews with French managers working in India or having had a significant experience with Indian teams. The method of selection used was the self-selection sampling given the means at disposal to conduct the research. Seven managers had been selected through the EDHEC Alumni directory and personal network. They are representative of expatriates at different steps of the international assignment given that they have between 6 months and 10 years working experience in India and are aged between 24 and 50 years old. The objective was to interview a broadly representative panel, based on age and length of work experience in India, in order to identify needs of expatriates in Indian in general. The data collection technique chosen was individual interviews via Skype or phone given that the majority of interviewees were living in India. An interview guide was written in advance in order to be sure to cover all the topics to tackle during the interview (see exhibit 2). However, interviewees were free to talk about other topics if they thought it was relevant. Interviews were conducted in French, and then recorded, taped and translated into English (see exhibit 3).

2. Propositions Reviewing the literature and collecting secondary data through a GMAC report and research articles allowed setting the following proposition: o Proposition 1: A three-step training program based on pre-departure, real-time and repatriation training can help French managers in the process of expatriation in India.

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Reviewing the literature helped to identify the five most important areas to study in order to compare Indian and French differences in a cross-cultural business environment: identity, communication, use of time, management and status, decision making processes and initiatives. The collections of secondary data from previous research articles and books allowed setting the following propositions: o Proposition 2: The Indian business environment is more collectivist than the French one, which has an impact on behaviors in the workplace. o Proposition 3: India has a high context culture whereas France is closer to the low context culture scheme which has direct consequences for communication in the workplace. o Proposition 4: Body language and Indian English are two key issues for French managers working in India. o Proposition 5: Indians time conception is polychromic whereas French one is more monochromic which can cause tension in a cross-cultural business context. o Proposition 6: India is similar to France in that it is a country with a high power distance culture and a hierarchy-based management style. o Proposition 7: Males dominate the Indian society which has an impact on management in the workplace, in particular for French women managers. o Proposition 8: Proactive behavior is rewarded in France and not valued in India which can have direct consequences on efficiency in a cross-cultural context. Secondary data collected from books about India and how to do business in this country also allowed setting the following proposition: o Proposition 9: A basic knowledge about governance, etiquette and religion in India can help French managers in the process of expatriation.

3. Data analysis Questions prepared in the interview guide are organized according to the nine propositions presented above (see exhibit 2). As a consequence the thematic analysis of interviews was the most relevant method to adopt. A model based on the following themes suggested by the interview guide has been constructed: cultural gap, identity, communication, use of time, management and status, decision making, knowledge of the environment, training and stereotypes (see exhibit 4). Certain quotes have been selected and classified according to this model and then, sub-themes have been defined in order to provide results presented in the next chapter (see exhibit 4). Then results were compared with the nine propositions in order to identify the main cultural differences between the French and the Indian business environment from French managers’ point of view. Based on this analysis a training aiming at improving French managers’ expatriation in India is proposed (see chapter 7).

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Chap. 6

RESULTS

I. What about building training for future French expatriates in India? 1. No stereotypes On the whole, French managers interviewed did not have any stereotyped view of India and its business environment before their international assignment. The majority of them had not received any training and none of them had been especially prepared for the Indian culture and business environment.

2. Pre-departure training Pre-departure training is considered helpful because it can reduce the cultural gap, avoid making some mistakes and help to be better prepared to the local context. Finally it is a way to be more efficient and to save time. I had French interns in Calcutta and it was very hard for them to adapt. Weather is warm and local the context is very disorienting; sometimes, the addition of these factors makes the cultural gap unbearable.

But according to four out of seven French managers interviewed, the other effect of predeparture training is that it can spoil the adventurous aspect of the experience. At all events, India is a country where open-mindedness is required. The fact of being too prepared can cause a lack of spontaneity and can push managers not to behave as they feel which is often counterproductive. When you have too much information before your departure you pay too much attention to details when you arrive in the host country. For instance in Japan, I met impulsive French managers who were totally different with Japanese and not as efficient as they were in France. I think the best way to be efficient in a cross-cultural environment is to be oneself. I consider that only managers who are opened minded and who volunteer for the assignment should be sent to India. In this context, they will adapt quite quickly to the Indian environment. Anyway India won’t change!

3. Real-time training “Real time” training is considered as very useful and relevant because when they receive it, managers already have contacts with the Indian business environment, they have actual problems and need help to solve them. This kind of training can be included in the “expatriate’s package” or if it is not the case, French managers ask questions to other expatriates or Indian friends. It is very important for them to find someone who can play the role of coach and who is a reliable person when they arrive in India.

4. Repatriation training Repatriation training is considered as helpful for managers who have spent more than five years in India. For the others it is something useless, more especially because even when working in France they collaborate with multicultural teams. 33



I have read that after 5 years abroad you are not considered by HR as adaptable to the French market anymore. I think it is useless because today you work with multicultural teams even within your headquarters. For me it was much more complicated to work with Americans when I was working in France than with Indians today!

II. Cultural gap and areas to study 1. Cultural gap The cultural gap between the French and the Indian cultures is felt very often by French managers working in India. It seems to be a feeling constantly present, a parcel of the daily life that cannot be ignored. The following answers to the question, “how often do you feel cultural gaps?” are representative. As soon as I speak with Indians, it means every minute! The way they think is totally different from mine. French people are quite rational whereas Indians let themselves be held by the system. Every day when interacting with Indian people! Every day even after 10 years spent here. When I was in Madagascar it was very different. This huge gap did not exist.

2. Identity 2.1 The weight of the family French managers feel the weight of the family much more in India than in France. Relatives are highly respected and their opinion is taking into account when it is time to make a decision concerning their life orientation. Youngers people are responsible for their extended family and have to meet their needs. This phenomenon is not specific to a given social class but extended to the entire Indian population. When I recruit people they always say they have to talk with their parents before accepting. Families give their opinion about the job of their children, about the localization of the job. For instance in Bangalore there are many young people who come alone to work and the family worry about that and want to be consulted before the decision making. For Indians, the family is the most important thing. They work to feed their wife, children, parents, grandparents and even sometimes uncles and cousins. They often live all together, parents, children, and grandparents.

This strong relationship between Indian people and their family does not influence their skills at work but has an impact on absenteeism. Indeed, Indian employees tend to give priority to problems met by members of their family and are absent from work because they try to solve them as quickly as possible. For instance they do not come to the office when a member of their extended (uncle…) family is sick. It is not a good reason in France but in India it is accepted. There are diverse problems within all Indian families because of health problems or money. It takes a lot of time and energy to Indians who always take care of their family members. It was hard to manage at work

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(absenteeism) but this year the situation is better. I think my team members are more mature and understand the importance of the missions they have at work.

Consequently, French managers are more flexible in India than in France because of the weight of the family, but also because traditions and ceremonies are still a priority in Indians’ daily life. Employees negotiate days-off frequently. French managers try to make their team members understand they have responsibilities to assume at the office too. It seems to work well with teams made up of educated managers who perfectly understand what is at stake, but not really with workers from lower middle classes. It takes more time to convince the latter but it is something possible for patient and tenacious managers. The other solution developed by Indian companies and sometimes used by multinational firms to cope with absenteeism is the system of tandem: two workers are trained for the same mission in order to continue the activity if one of them is absent. There is a system of tandem in the Indian team to solve this problem of absenteeism because of wedding, ceremonies… It is the family who decide for weddings and it can occur very quickly… For human resources managers, the use of tandem is the best method. I try to avoid using the tandem system but for production I am obliged to do it. Concerning managers, I try to make them understand that they have important responsibilities and consequently can’t be absent often. In general I am flexible with my managers; when they want a day-off I give it to them but I know that if I need them during a week-end, they will be available. This kind of flexibility does not exist in France.

2.2 Working as a team Teamwork is highly valued by French managers who consider it is required to succeed in project management. Surprisingly, teamwork is not something natural for Indians. As a result French managers have to handle that and find solutions to build team spirit and to create synergies within their teams. They have to encourage communication and find ways to develop openmindedness and curiosity among team members. If they reach this goal they can go further trying to put in place cross-functional teams. It is commonly used in France but not in India because in general, Indians are focused on their personal missions and tasks, and do not have a global understanding of projects. There are problems of communication and coordination in India. People are individualistic and do not communicate well. I try to improve this within my teams; it is my role to help people working together in a better way. It seems to work quite well until now. Team working is not something natural for Indians. It is harder to build cross-departmental teams in India than in France. In India, each person works on his or her field of activity and when it leads them to the boundary of their mission, they do not have the curiosity to ask questions. They stop because it is not their job anymore. I try to motivate them to develop this curiosity because in my opinion multitasking work is a key of efficiency. There is no team spirit between workers. They do their job and if someone needs something they do not offer their help, except if the person who asks is a member of their family. Indians from lower middle classes are not really opened minded and stay with people from their religion or community.

The individual development of each team member is important for the global harmony of a team but overall, it is a key aspect of management in India mainly because it is a good way to retain workers. Indeed, the turnover is very high and employees often leave a company because a competitor offers a better financial proposition or position. The fact of offering employees the opportunity to improve their skills is sometimes more valued by them than a simple salary © Valériane Henry, 2011 – All rights reserved 35


increase. It is a way to give them a perspective of progress in the hierarchal scale of the company which is very motivating, more especially for young Indians who are very ambitious. It is impossible to build harmony within a team without developing each member’s skills. There are many Indians who change companies every two months because they find better conditions elsewhere. If you don’t have a program of development of your team members there is no way to keep them. Another point is that Indian teams are generally younger than French ones; as a consequence in France they expect retirement whereas in India they are ambitious. Young Indians are very ambitious, much more than French graduates.

2.3 Relationship orientation Managers interviewed were used to make a clear distinction between private and public spheres at work when they worked in Western countries. Their private life was highly respected but in India things are different. When I began to work in big companies in Europe it was something very important for me to make a clear distinction between private life and public life and it was something integrated within corporate culture. When I arrived in India it changed. In India the distinction is not clearly made between private en public life.

The respect of private life does not exist in India; there is no clear limitation between working time and private life. Spending time and sharing personal moments with colleagues and even managers is something much more common than in France. It is very pleasant because Indian people are very nice. It is for instance common to receive a call at 10pm, we don’t hesitate to ask people to come very early or to leave late in the evening if it is necessary, and it is not a problem to change the program and to send someone to the UK with one day advance warning. This is particularly true in big companies where there are a majority of young people (average 26) who are flexible, who want to learn, who are ambitious and who accept everything to progress. There is no respect of private and family life. They invited me to share personal experiences: I ate at their home, I participated in a religious ceremony with them, I broke the coconuts for the Puja; it made all of us very happy. The main difference is that Indians are more youthful than the French and do not need any artifact to laugh; there is always festive atmosphere when we meet together.

This aspect of the Indian society explains why Indians are much more relationship-oriented than the French. As a result, networking is a very important tool to use when doing business in India. You have to create personal and private relationships with your collaborators to be integrated. You are invited to parties and you have to organize parties with your team at your home. It is very pleasant because Indians are jovial. In France we do not have this behavior and I think it is one of the reasons why we are bad exporters. We do not know how to do business anymore. When you are in a party in France you do not swap your business card with people whereas in India it is common. Relationships are easier to develop here and the role played by networks is much more important in business.

The other consequence of this relationship orientation is the exceptional involvement of team members which generates a high flexibility and adaptability. It allows the team to create extraordinary synergies and to reach goals that are not expected. In India when a team works well it is like a family: we spend a lot of time together; we have lunch or dinner together… A team which is so bound, when it works, it makes miracles! Results are exceptional; people are ready to be 100% involved if you respect them. In France it is different, people are never 100% involved (at

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least in my experience), and when you have a rush at the office people continue to respect working hours, whereas in India people don’t hesitate to change their own family life to finish the job.

But French managers can sometimes feel these close relationships with colleagues as an intrusion into their private life. Indians judge the private life of others and given that their society is still very traditional it can be hard to handle for foreigners. In India, personal life is quite the same than in France 50 years ago. Young couples do not live together, can’t have sex before the wedding and after the wedding, live with the in-laws. When I arrived in Delhi, I had to tell my colleagues I engaged to my boyfriend even through it was not true. In France, you can have your private life and do whatever you want. In India, there are rules and if you are different it is suspicious. It is the same when renting a flat; you have to prove you are married or to say when you will get married when you are a couple.

The lack of psychological distance between work and private life in India is replaced, perhaps in part, by the distance created by the respect for hierarchy. The Indian society is based on the caste system, which is a hierarchical system. Even if nowadays castes are not legal anymore, the system continues and people from lower and higher classes are not considered with the same level of respect. Within companies, hierarchy is very important too and respect for superiors is much more visible than in France even if managers share special moments with their teams. This last point is not true when there is a too big social gap between managers and their teams: if team members are from lower social classes, the respect of hierarchy is so high that nobody thinks about having relationships other than working relationships with managers. In my company, I worked with Indians from another social class and it is not something common to share time out of the office because I am the boss. When you work with educated Indians I guess it is different. From my point of view relations are more formal because they are based on hierarchy in India. But I feel close to my team. For instance this week -end we had an assessment center and we have shared extraordinary moments.

In summary, two very different types of behaviors are identified by French managers concerning the way to handle relationships in the Indian business environment. There are those who totally adapt and adopt relationship-oriented behaviors, and those who try to keep more distance and to protect their private life using their particular status of expatriated foreigners. The latter are often working in India for less than one year whereas the others have spent between 5 and 10 years in the country. I am a young general manager of 26 years old and maybe because of this I try to keep a kind of distance with my employees. In France I can share my private life with collaborators overall if I am working in an SME. In India I could do it easily too. But due to my position I prefer to limit my relationships with my employees. But I live in India and it does not prevent me from participating to an operator’s wedding for instance! In general, I try to fix a limit between private and public spheres at work. Sometimes I organize a dinner with my team. The Renault corporate culture is built on respect of private life. I talk about private life of my team members only if they ask or need it. When there is a wedding I am often invited, it is surprising. I refuse politely in general because I want to protect my private sphere. If you are an expatriate it is accepted but if you begin to behave in the Indian way, it becomes harder to manage it in the daily life.

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3. Communication 3.1 High context culture Communication is a pitfall when doing business in India. It is often neglected by Westerners but it is in reality one of the keys to success. Having a good understanding of communication habits is useful when negotiating for instance but it is not the only case in which it can help. The other important aspect is that understanding the Indian communication style can help when managing Indian teams too in order to be more efficient. Don’t think you have well understood too quickly because it often means you did not get everything. There are many problems of communication and when foreign companies begin to work with India it is the point they should really focus on but it is often what they forget to pay attention to. Misunderstandings due to communication are common and it can have an important influence on efficiency. At the beginning it made me laugh a lot but after a period of time spent in India it became annoying and it made me angry. Because of these misunderstandings things take more time. There are extraordinary misunderstandings in India!

Indirect communication is the way to communicate in India whereas French managers are used to using a more direct communication style. It can lead to big misunderstandings which have direct consequences on business. French managers consider Indians as unclear, inaccurate, and even sometimes as liars but have to deal with it. Before my first meeting in India, I asked a member of me team to prepare a report; he told me “ok”. One hour before the meeting, when I asked him to show it to me, he answered he had not done it because he had not understood what I expected! I was surprised and very angry but he repeated that if I had explained what I wanted clearly he would have done it. I came to the meeting without a report, I didn’t have any other choice than improvising approximate answers, and it was not professional at all. There is a lack of accuracy in their communication. Indians does not consider the fact of lying in the same way that we do. It is very surprising at work because as a French person, when I ask a question I expect the answer to be true by definition. Indians can lie to you without feeling any culpability; they do not have the Judeo-Christian conception of lying we have in France. It explains a lot of facts such as lack of punctuality, corruption, lack of efficiency… In order to handle that in the best way I try not to behave as a French person. I try to understand their objective, the reason which makes them lie to me.

The main milestones identified in the Indian communication style are the use of “yes” and “no” and the behavior adopted by Indian people in front of superiors. When Indians say “yes”, wobbling the head, it does not mean they agree or they understand but it informs you that they are listening. When Indians say “no” it means “no” but when they say yes it means” I don’t know”. Indians never say “no”. As a consequence it is quite difficult to rely on what they say or write. There is no visibility of what they do when working with them. The most important problem is how understand what Indians mean by the word “no”. For instance I asked one supplier for a full year to receive a quotation for his service but never got any answer (positive or negative). I guess my business did not interest them. But they prefer to keep silence rather than to say “no”. When they wobble with the head it seems to mean “yes” but in India it means “I am listening to you”.

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Hierarchy is a barrier for Indians to say “no” or to express their disagreement. They do not express clearly their opinion but they communicate it in a way which is imperceptible to French managers. “No” is not really used. It is not because Indians always agree but it can be because the person they are talking to is a superior. They let you think that they have understood and that they are going to do what you ask before the deadline but finally it is not what occurs. It is important to pay special attention to the Indian context, to the culture, to codes of communication.

It is necessary for French managers to adapt and to learn how they can understand indirect communication. It comes with time and experience. You can see in their eyes if they seem convinced or not. You can ask the question differently to be sure they understood and ask them to repeat to be really sure again. If you look Indians into the eyes you know if they mean “yes” or “no”. They know how to say “no”. Of course they do not say “no” very often to avoid conflict. Concerning the “yes” and “no”, I can get when they mean “no” because I have acquired an experience. It means we understand more and more easily codes with time. Today, my two years’ experience in India helps me to understand when Indians mean “no” (it is not always easy) and I can save time. The use of the « yes » and the « no » is of course different. But it is the same in Japan; it is an intercultural aspect that is not too hard to understand. You have to pay attention to get used to it as quickly as possible.

Managers interviewed try to find solutions to tackle the problem of indirect communication and to manage it every day in the most efficient way possible. They check and monitor everything and try to explain to their teams the importance of expressing their opinions. It takes time and requires having relationships based on confidence but it seems to work well. The earlier they identify a misunderstanding the more efficiently they are able to tackle the problem. It is necessary to make an effort of comprehension and to check if the communication is clear and well understood. Each time I ask something to an Indian manager or colleague I make him repeat what he has understood. It can seem to be stupid to behave as a teacher but it is the best way I found to avoid misunderstandings (word, vocabulary or content of the purpose). Unfortunately this is a recurrent problem in India for expatriates but I keep to this method and it works. The majority of our problems come from providers. The big matter is to find the real reason for their problems. We need to be on site to check what they say by ourselves. Otherwise they tell lies. We give our time and money to manage their problems, to understand their origin, to act if necessary and we deal directly with the top management to find solutions. If an Indian says “yes” because of hierarchy and does not understand what you mean you have to notice it. The consequence is that you have to develop a specific way to check things in India; it is not the case in France. You have to check everything in order not to waste too much time but in fact, it takes time and energy. It is one of the reasons why, very often, expatriates working in India are discouraged.

Even after several years working in India, misunderstandings still continue because French managers remain foreigners. When it is the case, they use their status of expatriate to justify it. There are many aspects of the communication that I do not understand because I am a foreigner; but there are many aspects of my behavior that Indians do not understand either. I think in a cross-cultural context the best way to behave is to do as you feel and to explain to your team why. When they are clever, people

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can understand everything. They can give their opinion. The most important point is to create a dialog and a relationship of confidence. I use and play with my “crazy foreigner” reputation when I do not want to explain what I do (not too often!).

3.2 Interactions: talking and listening in India According to French managers, the way in which Indians communicate with each other, both orally and writing, is not well structured; it is common to lose track of the main propose when talking, negotiating or even writing emails. When I arrived in India, I was working for the French embassy; I remember that a French and an Indian company were negotiating a contract for seven years. Finally, they stopped negotiations because they could not understand themselves anymore, it was impossible to go further, to set up a joint venture on this basis.

The best moment when managers can notice differences in communication style is during meetings. The first point is the fact that Indian participants do not give their opinion because of the high respect they have for the manager. Meetings are not a mess because hierarchy is very important. If the manager is speaking, nobody will interrupt him. If Indians have something to say, they will start saying, “yes I agree but”… and develop a new idea. They always say “yes” to save face but at the end of the meeting they do not ask questions if they do not understood or if they disagree. It is not really efficient. Indians do not ask questions when they don’t get something because they are afraid of the reaction of their manager.

As a consequence, decisions made during meetings are not based on debates between participants. This phenomenon is intensified when the meeting is led by a foreigner because the level of respect is more important again. In France we have debates during meetings, participants give their opinion and at the end of the meeting a decision is made. In India debates are not common. People listen and take notes, do not ask questions and it can pose a problem to foreigners who do not understand this silence because they think that everybody agrees. In reality it is not the case! It is necessary in India to be sure that people you are talking to have understood, to make them repeat or rephrase what they understood to be sure everybody agrees. When there is a foreign/western manager the communication is not as flexible as during a meeting with Indian participants only. There is a high respect for foreign managers and hierarchy, and this barrier does not exist when Indians are together (they have debates, much more lively).

Even hierarchy gives a structure to meetings in an Indian environment; it remains hard to keep the attention of the audience for French managers. Indians are not used to developing a global view of projects beyond their personal mission. As a result when the subject is not exactly about what they work on, they do not pay attention to what is said. Sometime Indians, if it is not their direct concern, do not feel that a problem is their responsibility at all even if it will be interesting to have their opinion. During meetings, Indian people use their mobile phone and even take calls. It is really disturbing. About listening habits, it is hard for Indians to remain concentrated. In India chiefs are respected. That is why during meetings with my teams there are no particular problems. During more complex meetings with teams from different departments it is harder to handle: you have to go straight to the point is order to keep the attention of listeners (15 min meeting in the factory not more). You have to prepare a good strategy to reach your goal during the meeting. If you do not prepare correctly

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the meeting you do not have the control and small groups are formed and talk together, you have a multitude of small meetings in parallel. You have to show authority and it works.

In India the global trend is not to structure meetings whereas in France meetings are framed by an agenda. This difference makes French managers consider meetings in India less efficient than in France. There is something that has never happened to me in France; it is to be invited to a meeting without knowing the subject! There is an obvious problem of preparation in a meeting managing by Indian people. It is not very well structured and it is quickly a mess. It is impossible to follow an agenda during meetings in India. They do not have the same conception of what is organization. It is hard to start a meeting on time even if after 6 years, it is something that they try to do. Speaking during a given and fixed period of time is a very hard exercise for them. In France we structure and plan time, maybe too much sometimes.

The same kinds of difficulties are met in written communication. Indians are not used to summarizing and synthesizing. They do not know how they can organize what they want to express and as a result, the core message becomes unclear. It is difficult for them is to write a synthesis of a meeting or what happened precisely. They do not know how they can organize the document. I try to train my team to acquire these skills. But one of the main problems in India is autonomy. It is a daily problem, overall when communicating via emails. After two or three emails are exchanged, the main subject of the discussion is lost. In order to avoid this I try to implement standards of presentation and content. I don’t know if I will succeed in this way of doing things but I really think this rigor is necessary. Otherwise it is really hard to manage.

The lack of structure noticed in the Indian communication reflects a difference in the way of thinking. French managers have the feeling they are extremely rational and organized in the Indian cross cultural environment. Indians’ behavior can be explained by the fact that education in India does not value thinking as it can be the case in Western countries. This is mainly due to the methodology of education used at school: they copy, they repeat after the teacher by heart but they never think alone or give their own opinion. It takes time to make them change.

French managers can make things change training their teams to adopt a more open-minded attitude and giving them time to express what they think. Indian employees can become really involved and play a dynamic role in meetings if they understand that. Punctuality is the main problem and listening and participation are other problems. But surprisingly, when they have an opinion and can express it with words, Indians are much more engaged than French who are “blasé” according to me. Meetings in India are quite long because you have to let the members of your team have the time necessary to express their opinion.

Attitudes are changing among young Indians who have more and more often international working experiences and are westernized. Today there is a new phenomenon: Indians who have worked abroad come back to India and bring a British culture in term of communication (clearer and more direct), they can communicate more efficiently with their Indian counterparts.

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3.3 Body languages: from distance to closeness Body language is something hard to change because people do not necessarily control it. French managers try to adopt the behavior they judge adapted to the situation without totally changing their original way of doing. Depending on their nature, they adapt more or less to the local codes. In all cases there are rules they have to respect. The first one is the way of greeting people which is not the handshaking but the “Namaste” with hands folded. Body language is something hard to change when you are used to gesticulating for instance. But when you are with Indians you feel that it is necessary to have a kind of restraint. You understand quickly that it is something embarrassing for Indian people to be kissed or to shake hands. It is not really a problem; you can simply say “good morning” and communicate by voice. Handshakes are not a way to greet someone in India, the use of Namaste is common. There is no body contact between men and women.

Physical distance depends on the hierarchy of people. The respect due to hierarchy is expressed by an extreme distance; having body contacts, even by mistake, is considered as a huge lack of respect. At the opposite, when they have close relationships with people or when they trust them, Indian men can become much closer than French people with men managers, even in a business context. Indian women always keep distance with French men managers; in the business context, Indian men generally also keep distance with French women managers. Physical distance depends on the hierarchy, the atmosphere you create with workers. They can be close because there are more tactile than French but when hierarchy comes… distance. They even apologize if they just touch the manager. The role of hierarchy is important; for instance, when I enter in the meeting room, my managers stand up even if they are older than I am, just because I am the boss! It is quite funny! But if you build a relationship of trust with Indian men, they become very tactile with you, big hug, pat on your shoulders… They behave at the other extreme!

The main difference is finally the behavior to adopt with women. In all situations, men have to keep distance and body contact is avoided. I am a woman; it creates a natural distance between male employees and me. There is more distance with women, no physical contact is accepted.

3.4 Indian English India is a country of diversity with hundreds of different languages; the two main languages spoken by the majority of the population are English and Hindi. Each region has its own language and sometimes people even do not speak English or Hindi. In this case it is more difficult to communicate; it requires finding a translator or more creative solutions. I Live in Chennai in Namil Nadu and English is not spoken by everybody; in many situations my hands are useful to communicate.

Indians who have received an academic education speak English very well but it is common that Indians from lower classes do not speak English at all. I do not work with people who speak English fluently. When foreigners visit us, it is hard for them to understand Indian English clearly.

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Indians’ accent is special and they use a specific vocabulary but in general it is just a matter of adaptation to understand them. After two or three months it is not a barrier anymore. At the beginning Indian English is really hard to understand. They pronounce words in a different way than British or American people and they use different words too. It took me around one or two months to understand a conversation during a meeting and a bit more to understand phone calls perfectly.

4. Use of Time 4.1 Circular time conception and local environment Time conception in India is totally different from time conception in France. In India time is considered as something circular, it is not a constraint. It means Indians do not value time as it can be done in France and they never feel under pressure because of a matter of timing (deadlines, delays…). At the opposite, French managers consider time as linear and are used to structuring it more rigorously. In India time is a circular concept whereas in France it is linear. In France what is not done today won’t be done tomorrow whereas in India, it is not a problem it will be done later. I think that when they have to do something, French are stressed by their objective and really want to reach it before the deadline. For Indians, this stress doesn’t exist, they don’t know this feeling and they don’t understand it. Time is something easier to live for them, they always think they have a lot of time.

The local environment has an influence on the Indian time conception too. For instance, India is an overcrowded country and as a result there is a huge traffic jam in big cities. It is not a detail but a factor that has to be taken into account when doing business in this country. It is the same concerning unexpected events: much more last-minute hitches occur in India than in France due to the diversity and the heterogeneity of the country. French managers generally try to take into consideration this dimension really peculiar to India. It is required to understand the Indian context to be efficient as a manager. Time management is totally different in India. There are so many uncontrollable things that happen every day! But time is not stretchable and the consequence is that it is impossible to follow a program. Many expatriates do not want to understand and take into account the local environment and I think it is a good reason for failure. You have to adapt to India.

4.2 Effects on managers’ daily life The circular conception of time makes Indian teams more flexible and available than French ones. It is highly appreciated by managers who can rely on their team in particular situations whereas it would have been inconceivable in France. Time is never a problem in India; it explains why when there is a deadline Indians do not hesitate to give their time. In France it is not possible to keep workers at the office until 1a.m if it is needed. In India, I can rely on my teams in term of timing: if I ask them to stay they will stay without asking compensation. Of course I will reward them but they even do not expect it. It is something really pleasant. In India if a supplier really wants to help you, an extra team will be assigned to work on your order and you will receive it the next day!

But there are other aspects resulting from the Indian time that are considered by French managers as daily problems difficult to tackle. Actually, the fact that Indians are not used to giving a value to time explains why they do not structure it either. They do not use schedules and 43



planning. They implement things one after the other without setting deadlines. They do not have an overview of processes and projects and it does not disturb them; it is the way they operate. It is something particularly difficult to manage when doing business with Indian suppliers. They do not have an overview of projects and deadlines; they deal with what has to be done step by step. Everything takes more time, everything is longer in India. They do not respect deadlines. In France there are deadlines, we use reverse planning to organize project management. In India they evaluate approximately the time needed to reach a goal and they are subjected to time more than manage it. That is why delays are quite common. We have big problems of delays with suppliers. The objective is to find a way to control exactly what they do. Sometimes we hire a person to stay 24/24 within the provider factory to check the advancement of the work that has to be delivered. With a supplier it is necessary to pay more attention than it is the case in Europe; you have to check if the deadlines are respected much more often but everything is possible.

The most impacting consequences of this time conception are delays and lateness. In India, everything takes more time. Indians consider time differently. When you have a meeting in France you arrive on time or in advance whereas in India it is at least 30 minutes late and sometimes they do not come without giving any explanation. When suppliers say it will take 15 days, in reality it is 30 days. It is something hard to manage when your customers are French and do not have this conception of time.

4.3 Solutions French managers try to find solutions to structure a bit more the Indian time. They fix realistic golden rules that play the role of a framework, although they take into account the local environment. Time management is a strategic milestone when managing teams in India. French managers spend time on developing processes to train and monitor their teams in order to respect deadlines. Micromanagement is widely used as a way to supervise and check a project’s progress. This method seems to work well but it is energy and time consuming, particularly at the beginning of the mission. Another aspect is that it is very difficult to develop multi-projects management or multitasking. Fortunately, Indian teams adapt with time which makes things easier to handle for French managers. You can have problems with delays if you do not know how to manage Indian teams. I have set up processes to check that at 20% of the process 20% of the work was done and it works pretty well… It is not a major problem, it is manageable. In India you have to reduce the number of projects you manage in comparison with France. Managers have to check frequently what the team is doing and it takes more time. The empowerment of team members takes more time too but it is something necessary to develop in order to make team members more autonomous and efficient. People I recruited are doing well today and I feel I have more time to work on my personal tasks today than 5 months ago.

As it is explained, one of the keys to deal with the Indian time conception is to fix a framework but it does not mean being inflexible. Indeed, flexibility stays a required quality to face the Indian environment and its high rate of uncertainty. French managers do not organize their 44



schedule in the same way they do in France because in India a “just-in-time” approach is not manageable. When providers tell me they need 15 days, I consider they will deliver products in 30 days in order to satisfy the expectations of my French customers who do not have the same conception of timing. Otherwise, my clients think I am not efficient. I noticed that in India managers do not have schedules as full as in France. They keep free moments to be able to deal with last-minute hitches, because they are frequent!

5. Management and status 5.1 Weight of hierarchy Hierarchy rules the Indian society and relationships within companies much more than in France. It results in a kind of paternalism of which French managers are not used to because it does not exist in French big companies anymore. In France, hierarchy carries weight, maybe much more than in other Western countries, but managers are respected because of their skills and their experience too. Besides, the Indian management system is almost autocratic; it means the boss makes decisions; employees implement those decisions without question. In France many decisions are made after exchanging with the team. In France, there is opposition with the boss or the manager. In India, the manager is the father figure, there is a kind of paternalism; a team that works well is like a family. It is totally different in France where respect is due to manager’s skills for instance and it does not prevent jealousy. This difference is noticeable in term of vocabulary too: in India we often say leader instead of manager. Indians accept hierarchy and it comes from their education. French are used to reconsidering the hierarchical system systematically. It does not mean that Indians do not have a dissenting past but this has less influence than in France.

As a result, common relationships between team members and managers are based on this very high respect for the superior and on inequality and fear. These are the reasons why Indians do not dare ask questions when they do not understand what the manager expects from them, or express a disagreement, or else a personal opinion. Another consequence is that Indians never by-pass hierarchy whereas in France it is something that can happen. Indian teams are more afraid of asking advice or help of the manager because they are afraid of disappointing him or binge fired. In France hierarchy is less present, there are less limits; it can be more efficient. Indians prefer waiting for the boss rather than making a decision alone and having it approved by the boss later. Indians are afraid of communicating what they think, there are on the defensive, they do not want to lose their job because of their opinions. Relationships are based on a lack of trust and authenticity.

5.2 Managing human resources The hierarchical system leads to a lack of sincerity, trust and authenticity. It is difficult for French managers to get bearings and to identify people they can rely on. The first obstacle French managers meet in general is when they want to recruit people. Then, they have to train themselves to identify lies on a day to day basis. It was the first time of my life I had to hire someone and this man lied on his CV. I did a big mistake recruiting him and I did not know it was something common in India to adapt a CV to a job offer to be

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hired more easily. Finally, after this experience I decided to change my way of recruiting Indian people. I chose cooptation. The best way to hire in India is to use networks and to meet only persons recommended by others.

After having hired good people, the main difficulty is to keep them. The turnover is very high in India because new companies are set up every day and they try to hire the best profiles offering attractive working conditions. It is essential for French managers to find a way to hold onto their team members. When they hire them they spend time and energy to train them and to make them adapt to a non-Indian system of management. In India young people begin at the bottom and evolve quickly. It is important to allow them to evolve, to have personal development within the company so that they stay with you. If they do not find what they need, you can’t keep them and they leave you to work for another company. In India the turnover is important and we know people can leave the company easily. We can’t retain them only with their earnings. The best counterpart in my opinion is to give them more responsibilities and to train them to acquire more skills.

Human relationships are essential in India when hiring people, managing and more globally, doing business. Networks play a much more important role than in France. It is pleasant because it creates an atmosphere based on mutual interactions, human contacts and communication. People, even when they have top managerial positions within companies, are accessible. Networking is a tool which can be very helpful in India and which is used more than in France. Relationships (suppliers, customers) are more flexible and communication goes faster. I think it is easier to meet a CEO, even in big Indian firms, than in France. There are fewer barriers; you can even get his phone number whereas in France it is impossible.

5.3 Managing a team The Indian basic management system is considered as neither structured nor rational by French managers. It is based on hierarchy only and Indian managers do not implement processes to involve teams in project management and to check project advancement. They spoil human resources they have at their disposal. Indians are full of energy, emotive and very good negotiators. French are organized; they don’t like adventure and are centralist in their way of managing people. French are more rational and Indians are chaotic. The French system of management is more efficient. I believe in collegial decision making and in India it is something impossible to establish; they always need a leader, a chief. In France and even in Africa, collegial decision making is something possible and very positive. In Calcutta, even with time, there is too much lack of autonomy in my team to establish this type of governance.

By definition when they work within a team, Indians are not autonomous. The high respect they have for the superior make them do exactly what the manager asks, no more, no less. They never give their opinion or express what they think because of the way they have been educated. They are used to a system which makes them focus on one task without thinking. One of the consequences is that they become unable to be multitask. After hiring my teams I trained them. I spent a lot of hours, days with them. Empowerment is not something natural in India and it takes time to make them understand. The time spent to coach them is very important and if it is well done it gives results.

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This behavior at work is mainly due to the Indian education. Classes are full and students are evaluated with multiple-choice tests only. Personal opinion, expression and team work are never valued. Besides, Indians do not practice sports missing one more opportunity to develop team spirit.

French managers adapt to India on many points but do not manage their teams in the Indian way. The main challenge they have to face is to make team members autonomous, to push them to think and express their opinions about the project they work on. They are trained to be able to have an overview of the work to be done, of the objectives to reach; it is often something new for them. Indians are expected to behave in a way they are not used to and it takes a lot of time and energy to make them change. According to French managers, this step is considered as essential to succeed and work efficiently in India. The first condition to reach this goal is to create an atmosphere of trust. It is not easy given that Indians are afraid of being personally judged when they behave as they feel. I try to manage my company in the western way. I do not rely on hierarchy to manage people as Indian managers do. I am 26 years old and I consider that managers working in my company can bring me a lot. Some of them have understood perfectly well this way of thinking and adapted themselves. We have meetings together and we share our points of view as equals even when I take the final decision. But some managers who are used to the Indian system meet difficulties to adapt. They never give their opinion; they do not take any responsibility. It is hard to make them change. I think the main difference with France is the role played by affect. In France we have insight and we feel free to talk sincerely. In India, the judgment of others is very important and it is hard to find authenticity. It took me 6 years to build trust in my team. I observe every day the difference between the older and new members: the first feel free to express their ideas whereas the others ask before talking and do not give their opinion.

The second condition is to reward progress in a demonstrative way to motivate and encourage employees. This method is educational and is a way to give value to autonomy, personal thinking and initiative. Sometimes we manage Indian teams with a kind of naivety: for instance we give awards when managers or employees are efficient and Indians love this. They like to be rewarded; sometimes the financial bonus is even less important than the recognition.

French managers seem to have good results when they train Indian teams to be managed in a more westernized way. Indians’ flexibility and involvement coupled with French management based on communication, interaction and autonomy create a synergy that does not exist within French teams. This is very rewarding for French managers. When you are a manager in India it is possible to reach objectives even if it seems impossible. In France, the system is rigid; everything has to be planned in advance. In India, teams are much more available. I think well managed Indian teams are more efficient than French ones. The final result is not the same!

Managing in India is equivalent to find a balance between structure and flexibility. At the beginning of the expatriation, it is sometimes better not to expect too much in order to have good surprises and avoid discouragement. I think the best state of mind to adopt in India is to expect less in order to have good surprises. It allows us to be more open-minded and to enjoy “Incredible India”!

It is important to notice that management in India is evolving even within Indian firms. Traditional management style still exists within industrial companies but IT companies are westernized organizations. Another recurring aspect influencing India’s changes is that the © Valériane Henry, 2011 – All rights reserved 47


Indian younger generation is educated, ambitious and westernized; they accelerate the evolution of Indian management styles and behaviors. In IT hierarchy is less central. In Industry, the system of management is more traditional and you really feel the weight of hierarchy and castes, especially in factories. Old managers are very traditional whereas young Indians are able to make decisions, seek empowerment but given that the system is managed by old Indians they can’t develop these skills. The challenge is to build autonomous teams to work and go ahead all together. It is possible because young Indians are educated and ambitious (more than French graduates).

6. Gender issues Traditionally, there are inequalities between men and women in the Indian society. The country is currently at the beginning of the process of evolution concerning gender issues. For example, there are still particular rules to respect when interacting with Indian women depending on their marital status. Besides, it is still difficult for men from the old generation or from lower classes to be managed by women. There are few women working as managers; women do fewer studies and stay at home when they get married. In India men particularly do not like to receive orders from women, it can make them laugh. In the factory in Tamil Nadu it is impossible to be a woman and to manage a team. It is a very traditional state. Even for an expatriate it is hard to handle. Physical contact with women is impossible, especially when they are married.

Surprisingly, inequalities at work are less marked than in France for particular points such as pregnancy for instance. In France when we recruit a young woman we always wonder or even ask if she wants a baby. In India this question is never asked, we consider men and women have the same skills, maternity is something obvious and Indians are used to dealing with absenteeism. For instance in India men who like to type reports can become easily personal assistant whereas it is not yet the case in France where this job is reserved to women!

But most important for the future is that the Indian government is aware of the current inequalities that exist and is acting to reduce them. For instance, there are fewer taxes to pay when hiring female rather than a male for the same position. There are many advertising campaign to push parents to send to school their daughters.

For women managers, being a woman may make the adaptation to the Indian business environment more difficult. In fact it depends of the way they behave: when they behave like foreigners they have more chances to be considered as men but if they behave as Indian women they feel much more inequalities. When my husband and I have a meeting with suppliers I face two types of behaviors: the supplier shows an extreme respect for me because I am white or at the opposite, when I ask a question he answers in Hindi to my husband without looking at me! What I feel in such a situation is really unpleasant. There is nothing to do and I know I would not have set up my company alone in India, even as a Western woman. As a woman and a manager in India I have never had particular problems because my team has accepted that I am a foreigner and as a consequence I have a different behavior. For instance, they know that for me body contact is important whereas they traditionally avoid it, but they accept and adapt.

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7. Empowerment and initiatives According to French managers, decision making is the result of a structured process of communication and debates and is in line with a global strategy. In India they have the feeling that it is common to proceed step by step without having an overview of the ins and outs. French people are more organized, they monitor projects. They take more time to decide but when they make a decision, they are quite sure it is the good one. In India, people decide very quickly without thinking about all the steps and they often forgot very important points.

Indians are entrepreneurs and never think something is impossible. The Indian environment makes people creative because they always have to find solutions to juggle the unexpected. This energy can be a fantastic resource for French managers in the condition they find the way to channel it. Indians are entrepreneurs, they like juggle with new ideas, they never say “no” or “it is impossible”, there is always a solution, even if it is far-fetched, even if it takes 6 months to implement, there is always something to do and it is something really energizing. The manager is only here to give a framework. It is necessary to give autonomy because teams are young and often have better skills to create than their manager. They have lots of ideas and if you give them enough space to propose solutions they will find ones.

The main barrier in the decision-making process in India is that Indians do not take initiatives because they are not educated to do it. The sense of initiative is not valued at all and this is coupled with the extreme weight of hierarchy. As a result, Indian teams are not autonomous and initiative taking. It is particularly true for middle aged and older employees but not for young graduates. It is unusual when they do more than what they were supposed to do. I expect my employee to do more than what I ask. Basically, autonomy is not a factor of motivation for them. I need to motivate them continuously, telling they are doing a good job. They never have spontaneous initiatives and they never try to find solution to improve a process or a situation. Autonomy does not exist if it is not encouraged by the manager. My team members think I give them too much autonomy; I want them to create their way of doing things without a guide. From their point of view, having a manager means implementing his or her orders without thinking or taking initiative.

French managers know that employees never disagree with a manager. It means if they take a bad decision, nevertheless their team will implement it. I have seen Indian teams implementing foolish things their manager asked without saying anything and it was a failure! If you do not ask their opinion clearly they will do stupidities because you asked them to do so. A good manager is a manager who is able to decode the state of mind of the team, to make them confident and at ease with him and to give the team the space to disagree and give its opinion. Human resources management in India is very important; a manager is more a manager of people than a manager of production.

Once again, building a relationship based on trust is a key point. Otherwise, employees tend to hide their mistakes much more than in France and consequences can be disastrous. Confessing a mistake is impossible for Indians. They want to protect themselves. In France it can be the same but people are proud of having responsibilities. As a consequence they have to bear consequences of their acts.

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When they make a mistake they hide it as long as possible and consequences are disastrous for production.

In order to make Indian teams more autonomous, initiative taking and reliable, French managers have to train them to make them evolve and have to build an atmosphere of trust. Employees have to understand they are actors in the decision making process even if they sometimes make mistakes. I encourage the sense of initiative. The first condition is to give the right to make mistakes. Otherwise it is impossible to create a creative and entrepreneurial environment. This is true everywhere, not only in India. One of my main challenges is to motivate the sense of initiative of my employees. I try to make my team evolve and to encourage each member to be an actor. I changed my behavior in comparison with when I arrived in India: even if I know the solution, I let the manager find it by himself and implement it from the beginning to the end. It works very well with some of them and not at all with others. There is hard work to do during the training to make them confident enough so that they are not afraid to show their mistakes. When they understand they can bring something from their own thinking, when they begin to take initiatives, they feel very proud and happy; they discover they have a real value-added.

It is slightly different with Indians from the young generation who are overqualified and more westernized. People from the young generation are much more open minded and can understand more easily what we expect from them when we manage in the western way.

French managers get positive results spending time on training their teams. Decision making and autonomy is valued which makes Indians develop their sense of initiative as it is expected from westerner managers in general. I try to give them autonomy training them and developing empowerment within my teams. It works with ones and not with others. In all cases it takes more time than in France. Today, people I hired and trained are more autonomous. It means it works and I think my investment in terms of time was worthwhile.

III.

Background about India 1. Governance

The first advice given by French managers is to hire a lawyer when doing business in India. Relationships between companies and the government depend on the size of the company, in other words on its economic weight and power on the Indian society. Big companies can get licenses quite easily while small ones are subjected to corruption. I have worked only for big companies and I have never had problem with the Indian government because our political positioning was clear: we never gave bribes. We get licenses from the Defense Ministry and they knew we would have preferred waiting rather than paying an extra. In order to get a normal service from the government I have to pay. I don’t want to get something illegal or extraordinary. I try to avoid this way of doing business. Unfortunately, I manage an SME. As a consequence I do not have any political weight and I have to pay! India is the 5 th most corrupted country in the world; I have to deal with that.

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In general, corruption plays a role in the daily life of French expatriates managing projects in India. Companies can decide to have a zero tolerance policy with corruption but it is hard to implement. Even if it is a democracy, you have to give backstitch when you need licenses in order to respect your delays. When we receive parcels post from France we have to pay a backstitch to custom duties to be sure to get it in good condition. Corruption is present in India for each paper you need, for each authorization you have to give a backstitch. If you say “no” you can get what you want 1 year later instead of 2 months. Sometimes it is impossible to say no because you really need to go ahead.

However, the Indian government fights against corruption more and more actively. Indian governance and laws seem to be a mess but I think it is evolving. It becomes more and more organized and efficient. The thing is that India is so huge that it is impossible to check everything; that is why corruption can exist.

The fact that India is a very large country with many levels of governance multiplies the contacts with authorities for companies and can complicate negotiations, slowing down projects advancement. For instance when I built my plant, the authorities said they would remove an electrical pylon which was useless. Finally, several months after they discover this electrical line was not dead and provided electricity to a village. Today I have three different contacts to solve this problem: the village, the industrial zone and the provider of electricity. I know that negotiations will last several months… It is a real obstacle.

2. Etiquette The great diversity that exists in India in term of religions, communities and traditions, and the importance of these aspects in people’s daily lives makes this country complex in terms of etiquette. Paradoxically, there are so many rules that each individual can choose those he wants to follow and it is not something that put foreigners under pressure. Of course there are some rules to be cognizant of in order to be integrated but their use depends only on the managers’ willingness to adapt to India. There is no pressure in India. If you want to go to the canteen and eat with a fork and a knife, it is up to you. If you eat with your hands, you will be closer to your Indian colleagues. Western managers who do not want to adapt to Indian behaviors are not considered in the same way than if they make an effort. Personally, I prefer to adapt to the local environment instead of seeking to rebuild my French environment in India. I do not hesitate to go to weddings when I am invited by a team members, I am open minded in order to create authentic relationships with people. In my opinion it is a normal behavior for a manager to be personally involved sometimes. If you want to be accepted you can try to look like them, you show that you are not “Indian proof”! For instance, you can wear colored shirts. Personally, I did not eat with my hands! I try not to pay too much attention to etiquette. For instance in Japan there are expatriates who try to adapt too much and when they negotiate they do not ask anything to avoid upsetting Japanese people! Behaving like this, you do not do business anymore. When you are a foreigner you are a foreigner and you can’t behave like the local people. I am not totally French, not totally Japanese and people adapt to me.

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Here are some examples of rules that are followed by French managers. It concerns different aspects such as clothing, food and behaviors to adopt in specific circumstances with Indians. In general Indian people are very tolerant with foreigners who behave with respect and openmindedness, even if they do not have a deep knowledge of the Indian etiquette. I am a woman and when I arrived in India I suffered from the fact of wearing pants or long skirts and long sleeves shirts. I did not like it because the weather was very warm but I had to adapt to Indian rules. When I visit families living in slums or Muslim families I take care of having my arms and legs covered. It is a matter of respect. In France body contacts come easily whereas in India it is badly received. Even with my husband, we never show signs of affection in public. I have a daughter aged 15 months old and it was necessary I show her to my team and that we celebrate her first birthday all together. Otherwise they would have felt offended! It is necessary to accept this! When we have a meeting we sit on the floor and the most difficult thing is that you have to hide your feet! There are many rules in India: leaving shoes before entering in a house, greeting elders first, eating with your hands… The best way to adapt is to observe Indians and to behave in the same way. They observe you too and sometimes they propose a spoon or something else to make you more confortable.

3. Religion Religion takes an incontestable part in Indians’ daily life. Two types of behaviors are identified among French managers to deal with this aspect of the local environment. Religions are much more present than in France: there are many ceremonies, festivals and dayoffs year-round. The most common behavior adopted by French managers is flexibility. It means they accept compromises with employees to open the possibility of accommodating religion and work. There are festivals every month. It is not really a problem because Indians know how to deal with diversity for a long time. For instance, pork is not served at the canteen, and during Ramadan working hours are adapted and more flexible for Muslim people. Religious festivals are accepted and respected by everyone. It is not the case in France where the Ramadan is not celebrated because it is considered a catholic country. There is a lack of tolerance in France. In India big festivals are celebrated within companies. The orientation of the walls of sheds depends on the orientation of gods, it is necessary to keep a place for puja in evidence at the office and a ceremony is conducted every week. Every day they burn incense. I participate to improve the working atmosphere. There are 35 festivals in India and companies give 14 days-off to their employees. The most difficult thing is to choose the festivals because very often, all religions are represented within a company. It is a part of the daily life in India for me. For instance when I was working for a pharmaceutical firm it was impossible to do a traditional puja with flowers and coconuts within white rooms. I had to find solutions: fake flowers…

The other way of coping with religion in India is to behave in the same way than in France, it means that religion is not taken into consideration in the workplace. We do not do ceremonies at the office. We organized a seminar with other members of Entrepreneurs de Monde and there was a small Puja but it was more for the cultural aspect than for religious purposes

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We do not allow religious ceremonies within our company. There is no Puja but we give day-offs for festivals. We prefer to give value to production objective giving extra money to our employee than to religious purposes. I do not really feel the weight of religion at work. When they work, people are not religious oriented. When there is a wedding I am often invited, it is surprising. I refuse politely in general because I want to protect my private sphere. If you are an expatriate it is accepted but if you try to become too Indian, it becomes harder to handle.

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Chap. 7

ANALYSIS AND DISCUSSION

I. Analysis and discussion about the nine propositions 1. A three-step training program based on pre-departure, real-time and repatriation training can help French managers in the process of expatriation in India. According to the literature, cross-cultural training is positively correlated with the success of expatriates. Mendenhall & Stahl (2000) explained that traditional pre-departure training and in country real-time training are complementary and Christstensen and Harzing (2004; Grundey, 2008) consider that repatriation takes part of international assignments. The majority of French managers interviewed did not receive any training before their departure and have often a double point of view concerning the utility of this kind of program. At first they argue that pre-departure training is not necessary because India is a country which requires a great adaptability; if managers are afraid of this aspect they should not leave France. But secondly, they admit it can be useful to have a basic knowledge about the main milestones in order to have a better understanding of cultural gaps. That is why the next sections aim at analyzing results of the study in order to determine which aspects of the Indian culture have to be addressed during the pre-departure training program. Concerning real time training, managers interviewed are unanimous in saying it can be a very useful initiative. It is sometimes included in the “expatriate package” but when it is not the case, French managers freshly expatriated find members of expatriates’ networks or Indian friends to play the role of coach. It appears as necessary to include this aspect into the training program proposed in this paper. Indeed, given the great diversity of the country, it is totally impossible and unproductive to cover during a pre-departure training all the destabilizing situations that expatriates could meet; it explains why real time training is particularly helpful in India. The repatriation training is not considered as very useful even if managers who are expatriated in India for more than five years know it will be difficult to readjust to the French environment. The solution to help them is to integrate them in the pre-departure training of future French expatriates in India in order to value their experience and to make them gradually recover bearings in France. Repatriation should not really be an obstacle given that French companies are more and more multicultural, even in headquarters. Proposition 1 is not totally confirmed by the study because the three steps of the training are not considered as useful by all the managers interviewed. However, none of the three steps has been judged as useless by all the managers: it means that each step can be helpful depending on a managers’ character. Three-step training program appears as a rather complete solution to help French managers in the process of expatriation in India.

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2. The Indian business environment is more collectivist than the French one, which has an impact on behaviors in the workplace. 2.1 Belonging to a group According to the literature, India is a collectivist society governed by many groups and subgroups such as clans, castes, religions (Manian, 2007). This study confirms this point showing that from the French managers’ point of view, Indians have very close relationships with their extended family and have often the responsibility to take care of them as it was supported by Hofstede (2001; Mead, 2005). They adopt a different behavior with people belonging to the group and others, and are not very open-minded with the latter. This behavior can be considered as a reminiscence of the caste system which is today illegal but still rules the Indian society. The division of Indian people into groups and the weight of these groups (for instance the weight of the family) on members’ daily lives make India a collectivist business society. It does not really exist in France and it takes time to French managers to understand this dimension of the Indian society. The main impact on working life is absenteeism. French managers have to deal with this aspect inherent in the Indian workforce and have to adapt their behavior; they have to be flexible but to fix a framework at the same time. As Gesteland & Gesteland (2010) indicate, the challenge is to find a way to get over this cultural gap without reducing the efficiency of the teams. It is what French managers try to do finding solutions such as the work in “tandem” or negotiating with their employees to give them a day-off knowing for certain they could rely on them when they need them in the future. They have to train their Indian managers to make them understand they have responsibilities to assume at work whereas it is not necessary in France where it is something obvious. 2.2 Relationship orientation Gesteland & Gesteland (2010) and Lewis (2010) state that people from collectivist societies are much more relationship oriented than people from individualist societies who are more deal oriented. The study confirms this dimension which has direct consequences on behaviors in the Indian business environment. First of all private life is not respected in India as it can be the case in France. It is often surprising for French managers who generally adopt one of the two following behaviors or something in-between: they make the choice to adapt totally to the Indian closeness; otherwise they prefer to keep distance using their status of foreigner. The first ones accept invitations to employees’ weddings and parties, and are very open-minded whereas the others protect their private life avoiding being too close to their employees. Managers who build close relationships with their Indian teams can create synergies that do not exist within French teams. Indian employees are much more involved and available than French ones, which is very pleasant for managers. Another aspect resulting from the relationship orientation is the role played by networking in business. As Lewis (2010) said, people from collectivist societies rely on contacts whereas people from individualistic ones rely on facts and figures. This study elaborates how networking can be a tool to succeed in India, much more than in France. French managers have to use it to get ahead more quickly and to solve daily problems efficiently. For instance, swapping business © Valériane Henry, 2011 – All rights reserved 55


cards during a party and calling back the new contact the following day is a way to create opportunities in Indian whereas people do not behave in this way at a private party in France. 2.3 Individualism at work According to Ferraro (1994) businessmen from collectivist societies pay attention to the interests of the group and seek to share rewards. Even if India is seen as a collectivist society, the study shows than Indians can have very individualistic behaviors in the business environment. From French managers’ point of view, their Indian collaborators do not work efficiently as a team whereas it is required to succeed. Finally, even if French society is considered as more individualistic, French people seem more team oriented than Indians. This aspect of the Indian society is explained by Chhokar, Brodbeck, & House (2007) in the GLOBE study. In this study, a difference is made between “institutional” collectivism, which represents how collective actions are encouraged within organizations, and “in group” collectivism, which represents the frequency of collective behaviors within a society. India is ranked 25th for “institutional” collectivism and 4th for “in group” collectivism out of 62 countries. The GLOBE study states that the Indian society is based on family and groups (religions, communities), which explains why it is ranked among the first “in group” collectivist countries. However, individualistic behaviors are increasing in India, especially among managerial people who are in competition at work every day; it explains the medium rank for “institutional” collectivism, and behaviors observed by French managers. According to French managers, Indians lack team spirit and focus on their personal missions without having an overview of team’s objectives. It is mainly due to the educational system based on competition between students through multi-choice questionnaires. Indian people are not used to work in groups and to think by themselves, and being curious is not valued at all. Young Indians are very ambitious and sometimes this individualistic behavior can inhibit teamwork. In order to make teams work more efficiently, French managers try to find solutions and implement programs of personal development for their team members. It is a way to make them blossom within teams but overall to keep them in the company because the rate of turnovers in India is very high. 2.4 Conclusion Proposition 2 is correct because French managers have to adapt to behaviors inherent in the Indian collectivist society such as absenteeism due to the weight of family or the development of close relationships with collaborators. However, Indians can have more individualistic behaviors than French in the business environment when they have to work as a team; it has to be taken into account when working in a cross-cultural environment in India.

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3. India has a high context culture whereas France is closer to the low context culture scheme which has direct consequences on communication in the workplace. 3.1 Indirect communication style According to Manian (2007), Western countries often have a low context culture. This includes France. Storti (2007) states that the Indian high context culture generates behaviors very hard to decode for foreigners. The study confirms this aspect showing how communication is a pitfall for French managers doing business in India. It is really important not to neglect it to succeed in the Indian cross-cultural environment. French managers are used to communicate in a direct way with their collaborators whereas Indians naturally use indirect communication. It leads to misunderstandings due to French managers’ inability to decode Indian codes. For instance it is particularly true when Indian people say “yes” wobbling the head, which really looks like the French gesture to say “yes”, but in fact they mean “I am listening”. Another example is when they keep silent because they do not dare ask questions or express their disagreement with the manager because of the hierarchy. French managers adapt to the Indian communication and understand its meanings and codes better with time. However, even after several years spent in India, it is impossible to get everything right. In order to cope with this aspect, French managers develop solutions to check regularly if people they are talking to are on the same wavelength than they are. It seems to work well but when it is not the case, they use their status of foreigner as an excuse. Some aspects of the Indian communication can be studied before French expatriates’ departure but open-mindedness, observation and adaption are key qualities required to overcome the communication gap. What people feel may play a much bigger role in India than in France that is why it is necessary to develop a kind of sixth sense when working there. 3.2 Indian talking and listening patterns Indian communication pattern is considered as a mess by French managers: it is very easy to lose track of the main purpose when exchanging. According to Lewis (2010), the Indian communication pattern is the result of its high context and collectivist culture: they are open to contact and interactions, manage ambiguity perfectly well and are not such a difficult audience, whereas French are rational, logical and clear. This conclusion is in part confirmed by the study when French managers explain that the ambiguity of the Indian communication pattern is due to indirect communication and makes this pattern difficult to understand by rational people. However, Indian people are also considered to be difficult audience because it is hard to keep their attention and to make them listening to each other’s during meetings. In that context, the only framework which can have an impact on their behavior is hierarchy: due to the high respect they have for managers, especially foreigners, they do not dare to talk. The consequence is a lack of communication and debate during meetings and it does not suit French managers either. The latter have to adapt to this pattern which is in opposition with the French one and have to find solutions. They try to push their team members to structure and express their opinion as clearly 57



as possible. One of the keys to succeed is, as it is often the case in the Indian business environment, to build relationships based on trust with team members. 3.3 Conclusion Proposition 3 is confirmed by the study which clearly shows that communication is one of the main obstacles that has to be overcome by French managers working in India. There is little similarity between Indian and French communication styles. French managers have to learn how they can understand the Indian indirect communication and have to make their Indian collaborators evolve toward a more direct communication style. The lack of attention paid to this particular barrier is often a reason for expatriates’ failure in India. That is why it is necessary to draw future expatriates’ attention to this aspect.

4. Body language and Indian English are two key issues for French managers working in India. 4.1 A body language ruled by hierarchy or group affiliation French managers interviewed confirm what Lewis (2010) explains about the Indian body language. Indeed, there are many rules concerning behaviors to adopt in India with people belonging to different groups (castes, religions, sexes) and it is impossible for foreigners to know and understand all of them. As a result, French managers have identified particular aspects of body language that seem to be really important to respect. The physical distance maintained between people depends on the hierarchy or the group affiliation of the other speaker. This explains why handshakes are avoided with French managers who are highly respected by their team members. It is the same with married women who are not supposed to have any physical contact with men. But surprisingly, when they build a relation of trust with people, Indian men become very close to male managers and adopt the opposite behavior, being very tactile, as described also by Lewis (2010). However, they keep distance with women French managers in a business context; in private life, it is different, they often try to be very closed to French women because they know that Westerners are much more open-minded regarding sex than Indian women who respect traditions. 4.2 Indian English, an obstacle easy to overcome As highlighted by Storti (2007), Indian English is unique dialect of English and can thus be difficult to understand for foreigners. French managers interviewed for this project confirm that it takes time to understand the Indian accent and vocabulary, more especially when talking by phone. In spite of this, Indian English is not really considered as an issue by French managers who always find a way to communicate with Indian people, even when the latter do not speak English at all. 4.1 Conclusion Proposition 4 is not verified by the study. Body language and Indian English are two aspects that have to be taken into consideration by French managers but that are not considered as difficult issues. They have to be handled thanks to the managers’ natural adaptability required to be expatriated in India.

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5. Indians time conception is polychromic whereas the French one is more monochromic which can cause tension in a cross-cultural business context. 5.1 Indian standard time Lewis (2010) affirms that Westerners have a linear conception of time, segmenting and planning days, whereas Indians have a circular conception of time, considering time as an endless intangible asset. These two conceptions are characterized by monochromatic and polychromatic behaviors (Hall, 1985; Gesteland & Gesteland, 2010) : punctuality, planning, respect of the deadlines versus lateness and late deliveries. The study confirms the existence of these two conceptions. Even if French are sometimes considered as having polychromatic tendencies, they stay far from the Indian time conception. French managers are aware of the gap that exists between their Indian collaborators or other business contacts and them concerning the time conception. Indians never feel pressured by time whereas French considered it as a valuable asset and pay attention to deadlines and delays. There are different reasons to explain this difference of behavior regarding time. First of all, the Hindu time conception is based on reincarnation cycles: even when they miss one opportunity, Indians believe it will arise again. The Christian time conception is at the opposite: what is not done today can cause troubles tomorrow. Another reason is the local environment: Indian is an overcrowded country and commuting takes much more time than in France, which often accounts for lateness. Lastly, the difference of time conception in business between French and Indians can be due to the difference in labor cost in India and France. Indeed, in India labor cost is not very expensive compared with French salaries for similar jobs. As a consequence workingtime does not generate costs that need to be saved in India. French managers appreciate the availability and the high flexibility of their Indian collaborators due to their polychromatic time conception. The latter do not separate working and family time and do not hesitate to stay with their manager very late if it is necessary. But this polychromatic behavior has negative aspects too: from this conception of time results in lateness, delays, lack of structure, and lack of planning and respect of deadlines. It is very important for French managers to understand and control the Indian standard time in order to reach objectives fixed and to be productive. They generally try to fix golden rules to frame time and they monitor and micromanage their teams. Concerning their relations with suppliers and customers, they find solution to supervise suppliers and they anticipate and calculate delays in order to be able to satisfy their customers ‘expectations. 5.2 Conclusion Proposition 5 is confirmed by the study. Before their departure, French managers have to be conscious of the differences about time conception they will meet working in India in order to find solutions to manage them as quickly as possible. For many managers, the fact of discovering this aspect of the Indian culture at the beginning of their mission had been one of the reasons why they wasted time. They have to find the balance between flexibility and supervision in order to take advantage of the positive sides of the polychromatic time conception and to reduce its 59



negative aspects at the same time. It is maybe easier to handle for French than other Western managers since they can also have polychromatic tendencies.

6. India is similar to France in that it is a country with a high power distance culture and a hierarchy-based management style. 6.1 Inequalities and management According to Hofstede (2001; Mead, 2005), France and India have scores around 70 regarding power distance; it means inequalities concerning power distribution and their acceptance are quite similar in the two countries. The study does not confirm this aspect and French managers’ behaviors can be considered as closer to Western managers, generally scored around 40, than Indian managers. It means that the weight of hierarchy is much more important in India than in France. Because of the caste system, India is a country where inequalities due to the age, the social status, the sex or the group of people they belong to are accepted. As a consequence, the manager is considered as superior and has a lot of authority. The study confirms Lewis’ theory (2010) regarding the father figure resulting directly from the hierarchical Indian society. Managers are highly respected and have to take care of the subordinates and reward them when they obey. French managers’ are not used to this kind of paternalism because it does not exist in France anymore. French managers really feel the weight of hierarchy in India as it is the case in high power distance countries. The relationship between managers and collaborators is by definition a relationship between a superior and subordinates. It is based on inequality and fear and subordinates obey the superior without ever asking questions or expressing their opinion. It leads to misunderstandings with French managers who tend to interpret silence as agreements whereas it is just a way to show respect. The study confirms that French managers are used to consult and interact with their team and do not behave in an autocratic way as Storti (2007) says. 6.2 Human relationships and hierarchy The omnipresence of hierarchical relationships in India generates a lack of authenticity and a lack of trust between people considered as superiors and subordinates. These two aspects coupled with indirect codes of communication open the way what Westerners typically describe as lies. One of the difficulties of French managers is to separate these fictional exaggerated account especially when recruiting people and when dealing with suppliers. Indians do not have the same conception of truth and can lie without any remorse, which was inconceivable for French managers at the beginning of their mission. Lies are not considered as a sin in India and French managers really have to understand this conception and swallow their Western values. They have to be cautious, to build relationships based on trust with their teams and with their suppliers if possible, in order to avoid them lying. But such precautions alone are often not sufficient. French managers have to check everything every time which is time and energy consuming. Surprisingly, even though if hierarchy is very important, the relationship orientation of the Indian society makes top managers more open than in France. Indeed, the protection of private life © Valériane Henry, 2011 – All rights reserved 60


coupled with the hierarchical pyramid make top managers unapproachable in France. In India, the relationship orientation and the importance of networking remove some barriers and it is for instance easy to obtain the mobile number of a CEO whereas it is impossible in France. This aspect of the Indian business environment is very pleasant and can allow French managers to solve problems more quickly than in France. 6.3 French manager’s management style in India The Indian management system is entirely based on hierarchy. Apart from this framework, it is not structured to manage teams efficiently according to French managers interviewed who prefer management styles based on a flatter hierarchical pyramid. Because of the weight of hierarchy and the fear inspired by managers, Indian employees are not autonomous, not multitasking and do not have an overview of projects they work on; they obey the manager and nothing else. French managers try to train their employees to take more initiative in their actions in order to give them more responsibilities and to have the possibility to delegate. However, even if they progress, Indian employees always need a boss to supervise, encourage and reward them, much more than French employees. When French managers can equilibrate their relationships with their teams from a hierarchical point of view, they obtain very encouraging results because Indian employees are full of energy and can be very involved. It is much more real with young Indians who are very ambitious and adapt to Western management style more easily. 6.4 Conclusion Proposition 6 is not confirmed by the study. Indeed, it is verified that India is a high power distance country where hierarchy conditions business relationships and management style, but French managers do not recognize themselves in this system and do not try to adapt. They prefer to grow on their own management style based on consultation and communication more than hierarchy. Once more, it requires qualities such as adaptability and creativity and a previous knowledge of the Indian context. However, it is noticeable that French managers have a better understanding to the Indian hierarchical system than Westerners from countries where the hierarchical pyramid is flat. They understand paternalism because even if it does not exist in the majority of big companies anymore; it is still presents among French SME. In France, even if communication is direct and employees are consulted or at least informed, the hierarchical pyramid is not flat and hierarchy is far from being ignored even if it is not noticeable at the first glance.

7. Males dominate the Indian society which has an impact on management in the workplace, in particular for French women managers. Facts and figures put forward in the literature review are confirmed by the study. Men and women are traditionally unequal in the Indian society even though authorities are increasingly trying to reform the system. For instance they encourage families to send their daughters to school and encourage companies to hire more and more women. India is characterized by its diversity and the way of considering women is different depending on social classes, marital status or region of origin.

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Proposition 7 is confirmed in part because males dominate the Indian society in a much more significant way than in France. However, it does not necessarily reflect on the status of French women expatriated in India. Men’s domination can be felt in the daily life when walking in the street or talking with Indian men but as manager, French women are protected by their status of foreigner and are not treated as Indian women if they behave as foreigners. For instance, French women can have body contacts with Indian men if they desire, but they have to know that Indian men could be surprised. Paradoxically, French men and women managers seem to be more equal in the Indian cross-cultural environment than in France where sex equality is supposed to exist but where underlying inequalities still continue. In India, French managers are just considered as foreigners regardless of their sex. It is something particularly true in westernized big cities but not always in very traditional and conservative medium cities.

8. Proactive behavior is rewarded in France and not valued in India which can have direct consequences on efficiency in a cross-cultural context. The deference syndrome which generates a lack of empowerment presented by Storti (2007) is confirmed by the study. The main obstacle met by French managers interviewed is the lack of autonomy of Indian employees. They cannot do anything without asking a confirmation to the manager. They do not take any initiative and carry out exactly what the manager asks. By definition proactivity does not exist within Indian teams and it causes a lack of dynamism. This is mainly due to the Indian educational system which never rewards personal thinking or initiatives. At the beginning of their international assignment in India, French managers sometimes wonder if Indians can develop skills to be proactive given that even when they are obligated to go ahead without following the process fixed by the manager, they do not seek to have an overview of the project in order to anticipate the next steps. After a while working in the Indian business environment, French managers do not believe in this theory anymore. They discover Indian employees’ ability to find creative solutions. According to them, Indians are entrepreneurs and able to find unbelievable ways to solve problems using the endless resources offering by the Indian business environment. They confirm what Lewis (2010) states and understand they have to find a way to transform creativity into proactive behaviors. French managers really want to use and value the creativity of their Indian teams and to give them tools to develop proactivity. It is necessary to make them more autonomous and to develop empowerment, a condition necessary to be efficient according to French managers interviewed. The latter have to find adapted methods to train their employees, accepting mistakes and building trust among team members and themselves. It can take time but results are positive and Indian employees become conscious that they have a real value-added well over the simple fact of carrying out orders. Proposition 8 is confirmed by the study and French managers have to be able to train their Indian teams in order to reach an efficient functioning in the Indian business environment. It takes more time than in France to empower team members but it is possible.

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9. A basic knowledge about governance, etiquette and religion in India can help French managers in the process of expatriation. According to managers interviewed, a basic knowledge about India can be helpful even if it is impossible to know everything. Concerning governance, it is highly important to hire a lawyer when starting to do business in India in order to manage relationships with authority in the best way. Corruption is an aspect that cannot be avoided and managers have to be prepared to face it. The Indian etiquette is not too strict and the best behavior to adopt is to be open-minded, to observe Indian codes of conduct and to respect it. It is not necessarily required to follow Indian rules when foreigners explain clearly their reasons and do it with respect. Religion takes an important part in the Indian society and managers have to deal with this dimension which does not really exist in France. It is not necessary to study religion in depth before the expatriation because it is very complex. Proposition 9 is confirmed because having a basic knowledge about India before expatriation is a proof of interest for the host country and of open-mindedness. Apart from the governance aspect, etiquette and religions do not have to be considered as obstacles. When working in India, it is important to make a choice between considering everything as difficult, or at the contrary, viewing the Indian environment as particularly favorable to find extraordinary solutions and to boost creativity. The last state of mind seems to be the best to succeed.

II. Training program for French managers expatriated in India 1. Framework The program proposed in this paper is a three-step training program including pre-departure training, “real time” training and repatriation program. It could be integrated in the international assignment cycle proposed by Grundey (2008). The following sections present in details the three-step training program that could be proposed to French managers who are going to start an international assignment in India. It has to be kept in mind that these managers have been chosen because they are considered as having the skills necessary to succeed in an Indian assignment.

2. Pre-departure training The main objectives of the pre-departure training are to give managers a basic knowledge about India, underlying the main cultural gaps, and to give them an overview of the skills required. It is a way to check if they feel able to handle their future mission and to train them to succeed. This training only focuses on the points judged as necessary to cover before departure.

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Heading

Cultural gaps and business environment in India

Communication

What are the tools to manage Indian teams efficiently?

Form

Conferences (General knowledge)

Case study (In depth study)

Role plays (In depth study)

Content Governance in India with a particular focus on corruption. What is a collectivist society? o The weight of groups and traditions (family and religion) in the workplace. o Relationship orientation in India: learning to use it as a tool to succeed in management and business. The Indian hierarchical pyramid and its consequences on the Indian business environment. Example of misunderstands due to problems of communication and time conception in order to: o Define and identify what is indirect communication? o Identify Indian time conception. o Know tools to manage it in the daily life in India. Building training in different contexts in order to reach the following goals: o Building trust o Improving autonomy o Encouraging initiative and creativity

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Objectives

Definition of the Indian context: general knowledge. Underlining the importance of the following skills: o Adaptability o Open-mindedness o Flexibility o Creativity to manage unusual situations.

Preparing managers to understand indirect Indian communication/time as quickly as possible in order to reduce misunderstandings and their negative impacts on efficiency. Underlining that insight and listening skills are required. Identifying particular aspects of Indian teams. Acquiring relevant tools to train Indian teams efficiently. Being creative in order to find solutions adapted to the objective to reach.



Is it necessary to comply with the Indian etiquette?  For expatriates and their family.

Testimony Questions and answers period (General knowledge)

Indian English

CD Rom or Online exercises

Testimony of managers having a significant working experience in India about: o the behaviors to adopt in particular contexts in India o body language Talking and listening exercises

Having a lively outline of the Indian environment. Underlining the importance of the sense of observation, adaptability and respect. Improving the English level. Getting used to Indian English accent.

3. Real time training Real-time training is complementary to pre-departure training: pre-departure training is a proactive way to overcome obstacle whereas real-time training is a way to find solutions when the situation become difficult to managers. The main advantage of this method is that it is an individualized tool which allows expatriates to find solutions when they meet problems mainly due to cultural differences. The profile of the coach is the following: an Indian consultant with knowledge of the French culture and business environment, or a French consultant or manager from the company with a significant working experience in India. He or she has to be able to understand why French expatriated in India meet difficulties due to cultural differences in particular situations. The coach and the expatriated manager have to build a relationship based on trust. For that purpose it is better to make them get in touch before the departure of the expatriate. The coach becomes a marker for the expatriate and can help him or her to feel more confident in their new Indian environment. In order to be efficient in India, real-time training has to be framed by rules. The coach is not a personal advisor who can be called every day to solve all problems encountered by French managers. The Indian business environment is so unforeseeable that French managers have to face a lot of unexpected problems every day. They have to deal with this aspect inherent to the fact of doing business in India and develop their adaptability, their flexibility and their creativity. The real-time training in India consists in making the effort to identify and qualify problematic situations resulting from cultural differences before meeting the coach on a regular basis (once a week for example). Following this didactic process is a way to make the distinction between standard problems and cultural barriers that exist in the Indian business environment. The fact of selecting and analyzing in depth these obstacles allows expatriates to internalize and appropriate solutions and to be able to implement it efficiently in the future. It is much more efficient than if the coach gives answers on an ad hoc basis.

4. Repatriation process The repatriation process is a way to help French managers to readjust to the French environment after a long period of expatriation in India. Besides, it allows companies to save costs because they can use their internal human resources instead of external consultants to train future expatriates in India. At the end of their international assignment, expatriates return to the 65



headquarters and participate to the pre-departure training (conferences, testimony) or can play the role of coach in the real-time training process. They readjust to the French business environment and its codes bit by bit and can value their working experience in India in parallel. With this program, the reinstatement is smoother and easier to live with.

III.

Future directions and limitations

The framework used to conduct interviews was an interview guide based on different areas to study proposed in this paper. It was a good way to cover lots of topic in a reasonable period of time. Interviews generally lasted between fifty minutes and one hour and a half. One way to shorten interviews is to focus the study on one dimension only as it is proposed in the following paragraph. Questions were quite open in order to allow managers to talk about all the topics they thought interesting. The use of the “Critical Incident Technic” (CIT) approach was a good way to identify the most memorable cultural gaps met by interviewees and to collect concrete examples. Surprisingly, it was not easy for interviewees to find concrete examples to illustrate their answers, maybe because they thought that what they had in mind was too ordinary. Obviously, it was not the case at all. Using more frequently the CIT approach in a next study could be a good way to collect more detailed examples during interviews. It is important because concrete examples are often the most useful data in qualitative researches. A difficult point to manage during this study was to conduct interviews by Skype or phone. It is easier to communicate and to understand perfectly well what people want to express during face to face interviews. If possible, it could be better to give the priority to video conferencing if the interviewer and the interviewee are not in the same place. This research focused on different areas of French expatriates’ cross-cultural management in the Indian business environment and proposes a training program to help them in the process of expatriation. The study covers different aspects of the Indian culture but valuable information can have been neglected. In order to have a more precise idea of cultural gaps to overcome it would be interesting to focus more in depth on the two most important areas to understand when doing business in India, that is to say communication and hierarchy. The choice of these two dimensions can be justified by their higher complexity compared to the others. This study is based on representative interviews of seven French managers. It limits the results to the identification and the analysis of cultural differences from French managers’ point of view only. It could be interesting to cross these results with Indian managers’ interviews. Indian managers could be interviewed about their own management style but also about how they perceive and interpret French manager’s behaviors in the Indian business environment. It would aim at describing French and Indian management styles in India, in order to compare them and to identify the main cultural gaps.

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CONCLUSION AND PRACTICAL IMPLICATIONS The objective of the study was to provide a better understanding of the Indian business environment and culture. The objective was to help French managers in the process of expatriation in India. The purpose of the study was to investigate cultural differences to identify the main barriers and to give solutions to overcome them. The aspects considered as the most important when working in an Indian cross-cultural environment are those which are not easy to identify at the first glance by French managers. They lose time coming up against these barriers before finding solutions. These main obstacles identified in this study are the following. The indirect Indian communication scheme is very different from the French one which is more direct. It often leads to misunderstandings and waste of time. This the reason why it is important for expatriates to be aware this aspect and to consider it seriously as an obstacle. The Indian communication pattern can be for instance studied before departure. However, insight and listening skills are required to be able to identify and understand Indian codes of communication as quickly as possible. Another dimension that has to be kept in mind by French expatriates is the Indian standard time. Time conception is circular in India which explains delays and the lack of respect of deadlines. French managers should anticipate delays and be more flexible than in France. However, it is necessary to find a way to fix frameworks and monitor project advancement in order to make things evolve. The positive side of the Indian time conception is the great availability of employees which has to be considered and used as an asset. Finally, the weight of hierarchy coupled with the lack of empowerment that is observed in India means French managers have to adapt their management style. They have to train their employees and spend much more time than in France with them in order to make their team efficient. This process has to be implemented as soon as possible and managers have to be prepared to do it. However, French managers win good success in changing expectations and behaviors, especially among younger Indian employees, with persistence and clear direction.

The study allowed highlighting other obstacles which are easier to identify by French managers. Consequently, they can quickly find solutions to solve these problems. For instance it is important to be aware of the collectivist dimension of the Indian society but absenteeism or people’s relationship orientation are consequences easy to identify and to cope with. It is similar concerning governance: the existence of corruption has to be taken into consideration but not necessarily studied in depth before departure. Relating to the etiquette, the body language or the role played by religion, these are aspects of the Indian daily life which do not require particular training. Nevertheless, managers have to develop skills such as adaptability, flexibility, observation and respect to manage these dimensions. Finally, French women do not need particular training. Even if they will realize that women’s status is different in India, they will not necessarily feel it personally.

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The recommendation resulting from this study is to propose a three-step training program to help French managers expatriated in India to handle cultural differences and to cope with the India business environment. The most important obstacles identified previously will be covered during the pre-departure training while other problems will be solved through real-time training. The third step is a repatriation program to help managers to readjust to the Western business environment when coming back to the headquarters.

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EXHIBITS EXHIBIT 1: Cultural dimensions to study Dimensions / Culture

INDIAN

WES TERNER

Collectivism (Hofstede score 48)

Individualism (Hofstede score 80)

Society governed by groups: Works in group, group recognition, group aspirations prevail. IDENTITY

FRENCH

Central role of the family

Society governed by individuals' aspirations

Central role of individuals

Importance of hierarchy and seniority

Importance of skills

Inequality among individuals

Equality among individuals

Harmony

Rationality

Relationship oriented

Deal oriented

COMMUNICATION

High context culture

Communication pattern

Verbose and social approach Flexibility and adaptation ; interruption Insist on the collective dimension of challenges

Rationality, logic, talk successively

Verbose approach Facts and proposals Use of imagination to reinforce logic Clarity

Relationship oriented Touched by eloquence Hurt by irony and pressure M ore experience than they look

Rationality, logic, experience

Listen to get information Expect logic High self-esteem about their own knowledge

Listening pattern

Low context culture

Communication style

Indirect and implicit communication: - Use of the "Yes" - Disagreement

Physical distance

Codified proximity: - tactile - social distance depends on groups

Social distance is the Social distance less than 1 meter same with each person

Indian English

Indian English is the native language Strong accent

Easier for English second language speaker

Cycle Time/Polychromic

Direct communication

Linear Active Time/M onochromatic

Hinduism : reincarnation cycle US E OF TIME

M edium level of English

Time is flexible, lack of efficiency in term of time consumption

Christianity

Time is a tangible asset, time is money Globally, Westerners' time conception is linear active time

Lack of punctuality Deadlines are guidelines

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Polychromic tendency : lack of punctuality



MANAGEMENT AND S TATUS High power distance : 77

High power distance: 70

M anager = father figure, supervisor

M anager = supervisor and facilitator

High hierarchy Management and status

Inequality and extreme respect

Difference between France and High hierarchy Westerners in general regarding power distance Equality and deference (lower power distance).

Respect for seniority

Respect for skills and seniority

Paternalism

Autonomy

Segregation Women

Submission

M ore equal

Inequality Initiative = idea EMPOWERMENT AND INITIATIVES

Initiative=action

Irrational deference

Proactivity

Obedience

Reconsideration

Natural negotiation skills

Use of rationality to negotiate

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EXHIBIT 2: Questionnaire/Interview Guide General questions a- What are your academic and professional backgrounds? b- What is your position in the company? c- How long is your working experience in India? d- What do you think are the main characteristics of French and Indian people? e- How often do you experience cultural differences at office? Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? Identity: collectivism vs. individualism 1- Private and public spheres (personal subjects vs. public subject from French’ point of view) at work: the weight of family in India 3-1 Do you think it is important to draw a line between private and public life and purposes? 3-2 Do you think Indian people mix more easily public and private sphere (personal subjects, family) at work? Do you thing the weight of the family is the same in France and in India? Have you experienced problem because of this difference? 2- Team working 4-1 What do you value the most, working alone or in group? 4-2 According to you, is the harmony of a group more important than the personal development of group members? 4-3 Do you notice difference between French and Indian team work? Is it a problem to cooperate? 3- Relationship Orientation 5-1 How deep are your relationships with your business partners in India? Is it something normal for you, did you already have this kind of relations in your home country? Communication: high vs. low context culture and India English 6- Direct and indirect communication 6-1 Have you ever experienced any problems in cooperation with Indians because of a misunderstanding due to the use of unknown indirect communication or codes by Indians? 6-2 Do you think French people and Indians use “Yes” and “No” in the same way? How do you think Indians deal with negative and positive answers? 7- Communication patterns Do you notice differences between a French meeting and an Indian meeting in term of communication, listening, and behaviors? © Valériane Henry, 2011 – All rights reserved 74


8- Body language and behaviors Do you adopt the same behavior with Western and Indian business contacts (body language, physical distance…)? 9- Indian English Have you ever experienced problems to understand Indian English? Use of time: linear-active vs. cycle time 10- Do you think that conception of scheduled time and punctuality is different in India? How do you handle that? 11- Do you think the value of time is different in India? Why? What are the consequences? 12- Is time conception a problem when cooperating with Indians in term of efficiency? Management and status: power distance and gender issues 13- Hierarchical management and inequality 13-1 Do you think Indians have a different relation with their manager than French people? Why? 13-2 Do you think Indians and French people consider differently the fact of by-passing managers? 13-3 Do you promote and reward workers’ initiatives and creativity? Is it a factor of motivation for them? 13-4 Does the Indian and French systems of management lead to the same efficiency at work? Why? 14- Gender issues, sex inequalities 14-1 Do you think Indians and French people have a different conception of sex equality? Do you have a different relation with men and women at work? 14-2 If you are not a woman, do you know western women manager in India? Do they manage their team in the same way than in France? Empowerment and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. 16- Do you encourage autonomy and innovation at work? Is it a factor of motivation for Indians? 17- Do you think Indians feel free to talk to the manager when they make a mistake or when they disagree with her or him in the same way than French people? Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? 75



19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? 22- Did you have a stereotyped view of Indians before your departure? How does it evolved?

Is there anything else you would like to add about your experience in India as manager?

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EXHIBIT 3: Transcriptions of interviews 9/9/11 - Julien De Groot - Project Manager - Atherm India PL General questions a- What are your academic and professional backgrounds? I have a scientific bachelor and then I did a technical diploma with a focus on general physics stuff and then I get a Master in Thermic and Energetics. In order to succeed and to have my diploma I had to do a 6 month internship and I had the opportunity to do it in India. The mission was to set up a factory of Atherm in India to follow Schneider, the most important customer of the company, who had moved its line of production in Bangalore. The objective was to supply them directly there to cut costs and to keep them as customer. b- What is your position in the company? I was project manager. When I arrived in India, we were supposed to launch the production of units. But because of delays and everything when I arrived there, there were still employees to hire, suppliers to find and quotation to ask before buying furniture and so one for the shed… Finally, I was in charge of buying all the furniture necessary to start the production and then, training and managing the workers to build the first samples. c- How long is your working experience in India? It was a 6 months working experience there. d- What do you think are the main characteristics of Dutch/French and Indian people? French people are more organized, they monitor projects. They take more time to decide but when they make a decision, they are quite sure it is the good one. In India, people decide very quickly without thinking about all the steps and they often forgot very important points. e- How often do you experience cultural differences at office? Very often, every day. Critical incident 4- Think about a situation where you were able to handle the cultural differences of India vs. French/Dutch particularly well. Describe that situation. How did you handle it? What was the outcome? The situation is when I was trying to teach the operators how to build one unit. Actually at the beginning they were very shy, because I was French maybe, they did not dare to ask me questions when they do not understand. That was a very critical step of the manufacturing of units and I wanted to be sure they understood very well. I really wanted them to ask questions, I did not continue to build the unit if they do not have any question and it made them laugh. There were afraid of disappointing their manager. You have to make them more confident, it is a daily work, every day you have to remind them “If you have any question I prefer you tell me rather than hiding the mistake”. It worked pretty well. 5- How about a situation you weren't able to handle well? Describe that situation. How did you handle it? What was the outcome? The production manager we had hired did not take any decision alone even if I was a manager. He was supposed to manage operators but he was not able to take any decision, to implement it and then to manage it successfully. It was impossible for him to manage a project from the beginning until the end. The General Manager and I were rude with him but it was useless. Finally, we discovered I had not said the truth about his working experience on his CV. It is something quite common in India, they adapt their CV to the job offer even if they do not have the experience required, and that is why job interviews have to be led very carefully.

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Identity: collectivism vs. individualism 6- Private and public spheres (personal subjects vs. public subject from Westerners ‘point of view) at work: the weight of family in India In France, a kind of distance is supposed to exist. If you have to take a hard decision concerning one person you appreciate as a friend, it is more difficult to explain if the person is your friend. In an Indian factor, Indians at the same level of hierarchy them can share good moments but is amazing how they are afraid of their managers. Concerning workers, the weight of family is very important. For instance they do not come at office because a member of their extended (uncle…) family is sick, it is not a good reason in France but in India it is accepted. 7- Team working Sometimes it is necessary to have the point of view of everybody and sometimes it is more efficient to achieve a task alone. I think the most important is the personal development because the harmony of the group will change each time you hire a new employee. Personal development fits well with a good working context. Maybe Indian team are really more afraid of asking advice or help to the manager (afraid of disappointing him or to be fired) comparing with France where hierarchy is less present, there are less limits between their manager and them ; it can be more efficient if you can take directly decision with the boss. It can be a problem when Indian teams don’t understand the way of working with French manager. French manager ask many results…For Indian people the final result is important, they do not focus on each step of the production, they do not want to ask question when they don’t know. At the end, if the quality of the product is bad, they say it is not their fault and find a reason. Quality is one of the biggest problems. 8- Relationship Orientation I think I was closer to them because I knew I was not going to be their manager for a long time, only for few months. I wanted to learn about their culture so I came pretty deep in the relationship with them, I was curious about their way of life. They invited me to share personal experiences: I ate at their home, did with them religious ceremony broke the coconuts for the Puja; I saw they were very happy I shared these moments with them. For instance my boss tried to keep more distances with them. I would never have this kind of relations with French. The difference of culture makes me very curious. Communication: high vs. low context culture and Indian English 6- Direct and indirect communication For instance, when we built units to provide them to the customer, there was a big misunderstanding about dimensions of each piece. For the French Headquarters of this company (Schneider), the good dimensions were ours, for their Indian subsidiary, it was different. They do not communicate well together headquarters and subsidiary. There is a lack of accuracy in their communication. Indians always say “hum hum” with their head and say “ok” even when they do not understand. When Indians say “no” it means “no” but when they say yes it means” I don’t not know”. They prefer to say “yes” in general. They say “no” when you attack them directly and they want to defend themselves. You can see in their eyes if they seem convinced or not. You can ask the question differently to be sure they understood and ask them to repeat to be really sure again. 7- Communication patterns

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Sometime Indians, if it is not their direct concern, do not feel implicated at all even if it will be interesting to have their opinion. They do not want to take risks and prefer to shut their mouth. Meetings are not a mess because hierarchy is very important. If the manager is speaking, nobody will interrupt him. If Indians have something to say, they will start saying, “yes I agree but”… and develop a new idea. 8- Body language and behaviors Sometimes Indians do not speak very well; it is helpful to use hands to speak. Physical distance depends on the hierarchy, the atmosphere you create with workers. They can be close. because there are more tactile than French but when hierarchy comes… distance. They even apologize if they just touch the manager. 9- Indian English At the beginning it is a problem to understand Indian English. But is comes better and better; after one month you can understand well Indian accent and understand that they make many mistakes. Use of time: linear-active vs. cycle time 10- Do you think that conception of scheduled time and punctuality is different in India? How do you handle that? Time very different because first of the traffic jam! The only way to solve this problem is to fix very rude rules. It was working quite well. 11- Do you think the value of time is different in India? Why? What are the consequences? The value of time is different because they take more time, I do not know really why. They do not have an overview of things and deadlines; they see things steps by steps. Everything takes more time, everything is longer in India. 12- Is time conception a problem when cooperating with Indians in term of efficiency? They do not respect deadlines. Management and status: power distance and gender issues 13- Hierarchical management and inequality The relation with manager is hierarchical as I told before, based on fear and unequal power. Indians will not take the risk to by bass manager. I rewarded creation at work just speaking not with money and they liked to fell the best of the team. I continued. In France good efficiency and good atmosphere are two things possible at office. In India it is not common… efficiency = harshness. 14- Gender issues, sex inequalities There is sex inequality in India. There are few women managers. It reflects the status of women who do fewer studies and stay at home when they get married. At work I behaved in the same way with men and women, no problem… just difference of strength! Women are very rude, I do not know personally well one. I think it is a problem for men because in India they particularly do not like to receive orders from women, it can make them laugh. Decision making process and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. It depends a lot on their personal character, but it seems to be rare when they do more than what they were supposed to do. To my mind, they don't take sufficient initiative.

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16- Do you encourage autonomy and innovation at work? Is it a factor of motivation for Indians? Yes I do, I expected my employee to do more than what I asked them to do. I don't think that autonomy is a factor of motivation for them. They need to be motivated continuously, telling them that there doing good job 17- Do you think Indians feel free to talk to the manager when they make a mistake or when they disagree with her or him in the same way than Dutch/French people? There is a hard work to do during the training to manage to make them confident enough with you so that they will show their mistake. They NEVER say when they disagree, there are generally not allowed to disagree with their manager point of view. Practical points (background about India) 18- Have you experienced problems with governments or legal and tax system in relation with your business in India? Yes, the first thing when you set up a factory in India is to have a lawyer. Even if it is a democracy, you have to give backstitch to have licenses in order to respect your delays. Sometimes it is not useful but… 19- How do you adapt to the etiquette (the rules of polite society) and behavior to adopt in society? If you want to be accepted you can try to look like them, you show that you are not “Indian proof”! For instance wearing colored shirts. Food is spicy but you have to accept it, you can tell not spicy but it will be spicy! I did not eat with my hands! 20- How do you deal with the weight of religion at work? The orientation of the walls of shed depends on the orientation of gods, it is necessary to keep a place for puja in evidence and ceremony takes time every week. Every day they burn incense. I participated to improve the working atmosphere. Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program can help? I was not prepared but very opened minded and I did not have a stereotyped view of Indians. A training program could help to warm, to avoid surprise. 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? I did not have any stereotypes before my departure.

9/12/11 - Franck Barthelemy - CEO - Nagoya General questions a- What are your academic and professional backgrounds? I was graduated from the EDHEC in 1993. A joined the French Foreign Affairs Ministry for my national service and I were sent to Bombay. After one year and few months I came back to France and I began to work for petroleum companies. The first one was EXXON Mobile and the second BP. I was very attracted by India and I wanted my boss to send me there as soon as possible. It was not possible with EXXON because I stayed only 2 or 3 years within the company but BP gave me a mission in India and I stayed there 6 years. I came back to France in 2009 in the context of recession and I did not appreciate. I left BP and I went back to India to set up my own company Nogaya (Art fair trade). b- What is your position in the company? CEO

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c- How long is your working experience in India? Nine years. d- What do you think are the main characteristics of French and Indian people? French people in India are shy and are not very well mixed with the local population. Indians are entrepreneurs, they like juggle with new ideas, they never say “no” or “it is impossible, there is always a solution, even if it is far-fetched, even if it takes 6 months to implement, there is always something to do and it is something quite energizing. e- How often do you experience cultural differences at office? Every day when interacting with Indian people! Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? Before my first meeting in India, I asked a member of me team to prepare a report for me, he told me “ok”. One hour before the meeting, when I asked him to show it to me I answer he had not done it because he had not understood what I expected! I was surprised and very angry but he repeated that if I explained it clearly he would do it. I came to the meeting without report and angry, I didn’t have any other choice than improvise approximates answers, it was not professional at all. After this event, in order to avoid this kind of situation, each time I asked something to an Indian manager or colleague I made him repeat what he had understood. It can seem to be stupid to behave as a teacher but it is the best way I found to avoid misunderstanding (word, vocabulary or content of the purpose). Unfortunately this is a recurrent problem in India for expatriates but I kept this method and it works. Identity: collectivism vs. individualism 9- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India. When I began to work in big companies in Europe is was something very important for me to make a clear distinction between private life and public life and it was something supported by companies in which I worked. In BP I was “director of the diversity”, I defended the value of respect of private life of employees (in term of timetable for instance). When I arrived in India it changed. In India the distinction is not clearly made between private en public life. It is for instance common to receive a call at 10pm, we don’t hesitate to ask people to come very early or to leave late in the evening if it is necessary, and it is not a problem to change the program and to send someone to UK with one day advance warning. This is particularly true in big companies where there are a majority of young people (average 26) who are flexible, who want to learn, who are ambitious and who accept everything to progress. There is no respect of private and family life. The weight of family is very important. When I recruit people they always say they have to talk with their parents before accepting. Families give their opinion about the job of their children, about the localization of the job. For instance in Bangalore there are many young people who come alone to work and the family worry about that and want to be part of the decision. After recruitment it is not really a problem except for human resources management: there are many goods festivals and ceremony and they want to go back to their native. They try to find solution but in France it could not be possible. There is a system of tandem in Indian team to solve this problem of absenteeism because of wedding, ceremonies… It is the family who decide for weddings and it can occur very quickly… For human resources managers, the use of tandem is the best way. 10- Team working

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Personally I prefer team working; in my previous job my main skill was to build teams. It is something very important for me inside and outside companies (network, virtual teams). Today in my company I still consider it is essential to work in team. The harmony of the team is conditioned by the reconnaissance of each team members’ contributions. It is impossible to have harmony within a team without developing the skills of each member. It is true in India too. There are many Indians who change company every 2 months because they find better conditions elsewhere. If you don’t have a program of development of your team members there is no way to manager and to keep them. 11- Relationship Orientation In India when a team works well it is quite a family: we spend a lot of time together, we have lunch or dinner together… A team which is so bound together, when it works, it makes miracles! Results are exceptional; people are really to be 100% involved if you respect them. In France it is different, people are never 100% involved (it is my experience), and when you have a rush at office there are still working hours whereas in India people don’t hesitate to change their own family life to complete the mission. The advantage of Indians is their flexibility. Communication: high vs. low context culture and Indian English 6- Direct and indirect communication There are many problem of communication and when foreign companies began to work with India it is the point they should really focus on but it is often what they forget to pay attention. For instance in India, No is not really used. It is not because Indians always agree but is can be because the speaker is superior in the hierarchy. They let you think that they have understood and that they are going to do what you ask before the deadline but finally it is not what occurs. It is important to pay special attention to the Indian context, to the culture, to codes of communication. When the wobble with the head for instance it seems to mean “yes” because in India it means “I listen to you”. It is necessary to make an effort of comprehension and to check if the communication is clear and dwell understood. When I arrived in India, I worked in the French embassy; I remember that French and an Indian company were negotiating a contract for seven years. Finally, they stopped negotiations because they could not understand themselves anymore, it was impossible to go further, to set up a joint venture on these bases. Today there is a new phenomenon: Indian who have worked abroad come back to the big Indian firms and bring a British culture in term of communication (clearer and more direct), they can communicate more efficiently with their Indian counterparts. Communication is the most important thing when Westerners and Indians negotiate. 7- Communication patterns In France the tendency is to have debates during meetings, participants give their opinion and at the end of the meeting a decision is made. In India debates are not common. People listen and take notes, do not ask questions and it can pose a problem to foreigners who do not understand this silence because they think that everybody agree. In reality it is not the case! It is necessary in India to be sure that people you are talking to have understood, to make them repeat or rephrase what they understood to be sure everybody agree. Once again a “yes” in India does not mean “I agree” but “I have heard you”. When there is a foreign/western manager the communication is not as flexible as a meeting with Indian participants only. There is a high respect for foreign managers and hierarchy, and this barrier does not exist when Indian are together (they have debates, much more lively). 8- Body language and behaviors

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The body language is something hard to change when you are used to gesticulate for instance. But when you are with Indians you feel that it is necessary to have a kind of restraint. You understand quickly that it is something embarrassing for Indian people to be kissed or to shake the hands. It is not really a problem; you can simply say “good morning” and communicate by the voice. 9- Indian English There is an Indian English with words that have a different meaning, with “Indianism” constructed with Hindu words. I have the chance to speak India so I can get more things; I understand why they repeat three times the same word! It is just a question of adaptation and of being open minded when arriving in India. Communication is very important, it is necessary to ask if something is not understood and to feel when there is a frontier that should not be over passed. Use of time: linear-active vs. cycle time It is not the same. In India Time is a circular concept whereas in France it is linear. In France what is not done today won’t be done tomorrow whereas in India, it is not a problem it will be done later. Time is never a problem in India that is why when there is a deadline to respect; Indians do not hesitate to give their time. In France it is not possible to keep workers at office until 1a.m if it is needed. In India, I can rely on my teams in term of timing: if I ask them to stay they will stay without asking compensation. I will give them one because it is normal. It is something really pleasant. You can have problems with delays if you do not know how to manage Indian teams. I set up processes to check that at 20% of the process 20% of the worked is done and I work pretty good… It is not a major problem, it is manageable. But there is a necessity of understand the Indian context to be efficient as manager. With suppliers it is necessary to shout them and it works. It is necessary to pay more attention to them than it is the case in Europe; you have to check if the deadlines are respected much more often but everything is possible. I mean I France if the work is not done, it is not done. In India if the supplier really want to help you or if you shout him, an extra team will be affected to work on your order and you will receive it the next day! Management and status: power distance and gender issues 13- Hierarchical management and inequality In France, there is an opposition with the boss or the manager. In India, the manager is the father figure, there is a kind of paternalism; a team that works well is like a family. It is totally different in France where it can have respect because of the skills of the manager for instance but there often jealousy too. This difference is noticeable in term of vocabulary too: in India we often say leader instead of manager. In India the French concept of “cadre” does not exist. In France it can be a problem when young graduate from EDHEC for instance manage older people. This problem does not exist in India because young people begin at the bottom but evolve quickly. That is why it is important to allow them to evolve, to have a personal development within the company so that they stay with you. If they do not find what they need, you can’t keep them and they leave you to work in another company. In India there is too much respect for the manager to complain to the manager to the big boss. It is not in the culture. In my mind it is necessary to reward good workers. Sometimes we manage Indian teams with a kind of naivety: for instance we give award when managers or employees are efficient and Indians love this. They like to be rewarded; sometimes the bonus is even less important than recognition. It is hard to compare Indian management and French management because we do not do the same things in India and in France. I would say the Indian system of management is much more open, it is possible to reach a goal even if it seems impossible. In France, the system is quite rigid, for instance I tried to solve punctual problems motivating people to come at the office the week-end, it was not accepted, it is highly

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complicated to open the company when it is not planned in advance… In India, they do not hesitate to come and do not ask if they will be paid in India. In think that well managed teams are more efficient than French ones. Another point is that Indian teams are generally younger than French ones; as a consequence in France they expect retirement whereas in India they are ambitious. The final result is not the same! 14- Gender issues, sex inequalities It is hard to answer because I worked in big companies where they try to equilibrate things. There is a huge diversity of religions, of communities in India; as a consequence there is a tradition to equilibrate things. I have the same behavior with men and women in India. In France when we recruit young women we always wonder or even ask if she wants a baby. In India this question is never asked, we consider men and women have the same skills, maternity is something obvious and Indian are used to deal with absenteeism. Women are as efficient as men at the position of manager; what is important in India is the result and the diversity of means to reach it is not a problem. It is something you quickly understand as foreign manager in India. For instance in India when men like to type reports they become assistant whereas it is not yet the case in France! In India there are women who are CEO of being companies but it is not a reason to be in the headlines like in France, they are seen as good managers and their resulted are considered without differentiation. Decision making process and initiatives It is necessary to give autonomy because teams are young and have often better skills to create than their manager. They have lots of ideas and if you give them enough space to propose solutions they will find ones. The manager is only here to give a framework. Indians do not feel free to disagree with their manager. It is necessary for foreign manager to know that. I have seen Indian teams implementing foolish things their manager asked without saying anything and it was a failure! If you do not ask their opinion clearly they will do stupidities because you asked them to do so. A good manager is a manager who is able to decode the state of mind of the team, to make them confident and at ease with him and to give the team the space to disagree and give its opinion. Human resources management in India is very important; a manager is more a manager of people than a manager of production. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? I have worked only for big companies and I have never had problem with Indian government because our political positioning was clear: we never gave backstitch. We get licenses from the Defense Ministry and they knew we would have preferred waiting rather than paying an extra. The strategy was to draw up and submit a complete file to authorities and to say that if any paper missed, we will come back and we won’t go to the back of the office to pay a backstitch. It worked well because we have always be clear with Indian authorities but maybe other expatriates will have another point of view about this subject according to their own experience. 19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation.

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How did you handle the situation (describe your behavior accurately)? What was the result? There is no pressure in India. If you want to go to the canteen and eat with a fork and a knife, it is up to you. If you eat with your hands, you will be closer to your Indian colleagues. You will perceive these things. Western managers who do not want to adapt to Indian behaviors are not considered in the same way than if they make an effort. Personally, I prefer adapt to the environment in which I am instead of seeking to rebuild my French environment in India. I do not hesitate to go to weddings when I am invited by a team member I am open minded and always want to adapt, to create a true relationship with people. Even when I leave a team I keep in touch with some members. In my opinion it is a normal behavior for a manager to be sometimes personally involved and I do not have any problem with this. 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? The weight of religion is important; there are festivals something like every month. It is not really a problem because Indians know how to deal with diversity for a long time. For instance, pork is not served at the canteen, during Ramadan; working hours are adapted and more flexible for Muslim people. It is something normal and there is no pressure, it is great! Indians do not celebrate wars victories such as 8 Mai in France but Gods ‘birth. Religious festivals are accepted and respected by everyone. It is not the case in France where the Ramadan is not celebrated because it is considered as a catholic country. There is a lack of tolerance in France. In India big festivals are celebrated within companies too (Christmas, Diwali…). Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? The only training i received was about mu security. I think training is not useful because I consider that only opened minded and volunteers managers have to be sent in India. In this context, they will adapt quite quickly to the Indian environment, anyway India won’t change! 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? Before my first mission in India I has already do a 2 weeks internship there. It was a nice experience for me and I did not have a pessimistic view of the country or stereotypes. People who want to understand India do not focus only on poverty, bad smell and dirtiness. There are rats in Paris and it is not what we keep in mind when we visit the city! Is there anything else you would like to add about your experience in India as manager? Notion of time is very important. Notion of paternalism has to be understood by French managers. Communication: do not think you have well understood too quickly because it often means you did not get everything. It is not very important to understand the Indian culture in the sense of Indian history because it is really complicated. Being respectful in every situation even when facing with superstition for instance. India is a young country and young people are often overqualified and begin to work at 20. They have quickly a significant working experience and it is important to consider them as equal because they

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deserve it! Even assistant have MBA, as a consequence debates are often higher in term of thinking than in France.

9/12/11 - Maxime Louchart - General Manager - Atherm India PV General questions a- What are your academic and professional backgrounds? After getting my scientific French baccalaureate I integrated l’Ecole des Mines de Douai. My profile is more scientific and technical than management oriented but today I am general manager of Atherm India Pvt Ldt, the Indian subsidiary of Atherm France, supplier of Schneider. I came in India with the status of VIE to set up this company and today I still manage it. b- What is your position in the company? General Manager. c- How long is your working experience in India? I came in India 2 years ago. d- What do you think are the main characteristics of French and Indian people? Indians never say « no » as a consequence it is quite difficult to rely on what they say or write. There is no visibility on what they do when working with them because they do not monitor each step of a project. But on the other side, it is easy to work with them from the point of view of relationships. My working experience in France is short but I think French people are never satisfied. It can be a problem but it is a quality too. Indeed, they always want to improve what they do and the consequence on quality and efficiency is quite positive. Indians do not seek to improve the way they do something; they are often satisfied of the current situation. e- How often do you experience cultural differences at office? As soon as I speak with Indians, it means every minute! The way they think is totally different from mine. French people are quite rational whereas Indians let themselves held by the system. Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? It was the recruitment of my first Indian manager, the production manager. It was the first time of my life I had to hire someone and this man lied on his CV. I did a big mistake recruiting him and I did not think it was something common in India to adapt a CV to a job offer to be hired more easily. As a consequence he was the first person I hired too. Finally, after this bad experience I decided to change the way I recruited Indian people. I chose cooptation in order to have a third person to contact in order to make my opinion on the candidate.

Identity: collectivism vs. individualism 12- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India In France I was really open to share private moments with my colleagues and in India it is something absolutely common. Indians are more attached to close relationship at work and in general than French. In France, private and public lives are clearly separated whereas in India, personal matters can have an influence at work. I am a young manager of 26 years old in India and maybe because of this I try to keep a kind of distance with my employees. For Indians family is the most important thing. They work to feed their family (wife, children and grand-parents). One of the problems of this conception is absenteeism. Workers are often absent

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because of their relatives ’problems (health or any other reasons). The priority is given to the family when it is necessary. The solution in Indian company is to make people work in tandem. I try to avoid that but for production for instance I am obliged to do it. Concerning managers, I have tried to make them understand that they have important responsibilities and consequently can’t be absent often. In general I am flexible with my managers, I mean when they need a day-off I give them and I know if I need them during a week-end later they will be there. This kind of flexibility does not exist in France. It is the same with the use of mobile phone: in India even during the week-end, your professional mobile phone is switched on whereas in France it is not the case. 13- Team working I try to manage my team with cleat objectives. Considering the size of my company (SME) when I talk to operators I consider them as a team but when I talk to managers, each of them represent a department and have specific mission so it is more individualized. More generally speaking, I prefer team working and I thing it works well when there is a good manager. I have two cases in my company. It is necessary for the operators to have a kind of harmony within the team but managers prefer to achieve their mission alone and it is quite hard to give them a team state of mind. In my opinion, India managers do not work in team very well because they are focused on their own mission without thinking about the project as a whole. They protect themselves from mistakes and do not want to be responsible for a possible failure. In France people are more focused on the global project advancement. 14- Relationship Orientation In France I can share my private life with collaborators overall if i am working in a SME. In India I could do it easily too. But due to my position I prefer to limit my relationships with my employees. It does not prevent me from participating to an operator’s wedding for instance! Communication: high vs. low context culture and Indian English 6- Direct and indirect communication Misunderstandings due to communication are common and it can have an important influence on efficiency. The most important problem is how to understand when Indians mean “no”. For instance I have asked during one year quotations to a supplier and I never get any answer positive or negative because I guess my business does not interested them but they prefer to keep silence rather than say “no”. Today, it is my 2 years’ experience in India which helps me to understand when Indians mean no (it is not always easy) and I can save time. 7- Communication patterns There is something that never happened to me in France it is to be invited to a meeting without knowing the purpose of it! There is an obvious problem of preparation in meeting managing by Indian people. It is not very well structured and it is quickly a mess. During meetings, Indian people use their mobile phone and even take calls. It is really disturbing. They always say yes to save the face but at the end of the meeting they do not ask question if they do not have understood or if they disagree. It is not really efficient. 8- Body language and behaviors Indians can touch you more easily than in France but when there is a hierarchical relation it is the contrary.

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9- Indian English At the beginning Indian English is really hard to understand. They pronounce words in a different way than British or American people and they use different words too. It took me around 1 or 2 months to understand a conversation during a meeting and a bit more to get perfectly phone calls. Use of time: linear-active vs. cycle time 10- Do you think that conception of scheduled time and punctuality is different in India? How do you handle that? Time conception is totally different in India. Time does not have the same value. In France there are deadlines, we use reverse planning to organize project management. In India they evaluate approximately the time needed to reach a goal and they suffer time more than manage it. That is why delays are quite common. 11- Do you think the value of time is different in India? Why? What are the consequences? They do not fix clear timing that is why it always takes the time that it takes... 12- Is time conception a problem when cooperating with Indians in term of efficiency? The main problem is delays. I am sometimes obliged to shout my suppliers to get what I need on time. Management and status: power distance and gender issues 13- Hierarchical management and inequality I try to manage my company in the western way. I do not rely on hierarchical relations to manage people as Indian managers do. I have 26 years old and I consider that managers working in my company can bring a lot of things. Some of them have perfectly well understood this way of thinking and adapted themselves. We have meetings together and we share our points of view as equal even if I take the final decision. But there are old managers used to the Indian system who can’t adapt to this system. They never give their opinion, do not take any responsibility. It is hard to make them change. In India, bypassing hierarchy is not something common. They prefer waiting for the boss than taking a decision alone and make it approved by the boss later. One of my main challenges is to motivate the autonomy and the sense of initiative of my employees. I try to make my team evolve to encourage each member to be an actor. I changed my behavior in comparison with the time I began my mission in India: today, even if I know the solution, I let the manager find it by himself and implement it from the beginning to the end. It works very well with some of them and not all with others. I think the Indian management system is efficient where the French system is not. Within the company, the French management system is more efficient because timing and objectives are fixed clearly, operational processes advancement is monitored and checked. In India, it is not really organized but relations with other actors (suppliers, customers) are more flexible and communication goes faster. It can take much less time than in France if your supplier wants to help you. 14- Gender issues, sex inequalities France is still a male chauvinist country. In India, there are differences of earnings between men and women and women are more often in charge of children and husband’s parents for instance. But Indian government awakes and wants to change things. There are fewer taxes to pay for companies when hiring female rather than a male for the same position. As manager there is no special behavior to adopt with Indian women. When there are not married there are still like teenagers whereas after the wedding they are more subjected to men in general. It is true for non-qualified employees and not really the case for young graduates...

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Decision making process and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. Not at all. I try every day to make them understand that it is what i expect from them. It works with some of them. I have to push them to take initiatives and forecast the future. It depends of the open minded orientation of Indian collaborators. The young generation is much more open minded than the older and can understand more easily what we expect from them when we manage in the western way. 16- Do you encourage autonomy and innovation at work? Is it a factor of motivation for Indians? For managers who can adapt to my way of management it is highly valuable. A mutual trust exists between us. When they can’t adapt, this autonomy becomes a problem for them, it is highly stressful because they do not want to take any decision and when they make mistakes they hide it; it is necessary to monitor everything they do. 17- Do you think Indians feel free to talk to the manager when they make a mistake or when they disagree with her or him in the same way than French people? Telling you have made a mistake is impossible for Indian. They want to protect themselves. In France it can be the same but people are proud of having responsibilities, as a consequence they have to bear consequences. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? To get a normal service from government I had to pay back shish to the VAT Office. I did not want to get something illegal or extraordinary, just the normal procedure. It worked but I am not proud of that and I try to avoid this way of doing business. Unfortunately, I manage a SME as a consequence I do not have any political weight and I have to pay! India id the 5 th most corrupted country in the world, I have to deal with that. 19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? Respecting hierarchy is a rule in India. I supply Schneider and for them we are not equal, they are superiors. I do not want to respect this rule because my customer sometimes behaves with a lack of respect for my company and our work and I do not want to establish this kind of relation. Otherwise, they are no rules comparing with France. People spit out or belch in the street or within buildings. It is not a problem. 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? There is a huge diversity of religions in India. For instance my employees want to do a Puja every Friday. I let them do. There are 35 festivals in India and company used to give 14 days-off to their employee. The most difficult thing is to choose the festivals because very often, all religions are represented within a company. I let them more or less days off according to the amount of work we have to do. I know if they are absent one day, they will come during the week-end when it will be needed.

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Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? I had technical training and information about security. I think a pre-departure training can really help to be better prepared. A real time training is a really good idea. It already exists because when you meet French expatriates arriving in India, you know you can rely on them to coach you if you need it. For the repatriation training I have read that after 5 years abroad, you are not considered by HR as adaptable to the French market anymore. From this point of view repatriation training is needed. 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? India was not a choice, I had the opportunity and I was attracted by the mission. I did not know this country and when I arrived I knew I should adapt to a new environment, it would be different, without having a stereotype in mind. Is there anything else you would like to add about your experience in India as manager? From a professional point of view Indian are quite open minded, especially young graduate but from a personal point of view they are still focus on Indian culture. For instance, they are not really curious to taste foreign cooking and prefer to eat Indian food only. I think it is going to change with the new generation of westernized Indian.

9/20/11 - Fanny Delannoy - Founder and General Manager - Zoé Designs PL General questions a- What are your academic and professional backgrounds? I am graduate from the fashion design school ESMOD. I made several internship in French fashion design companies such as Sonya Rickiel or Promod and I wanted to have an international experience. I knew India because I had been there with my parents when I was a child and I had loved it. I found a job in 2004 within an Indian fabrics company in Bangalore where I was designer. After one year I came back to France during one year where I worked for Kiabi during one year. I left France to work in Delhi for Redcats Group before deciding to set up my own factory with my husband who is Indian 8 years ago. Zoé Designs Pvt ltd is a garment factory, our customers are in general French brands or designers and we make and export their products. b- What is your position in the company? Director c- How long is your working experience in India? 9 years d- What do you think are the main characteristics of French and Indian people? Indians consider time differently. When you have a meeting in France you arrive 10 minutes in advance whereas in India it is at least 30 minutes late and sometimes they do not come without giving any explanation. With our suppliers, when they promise it will take 15 days, in reality it is 30 days. It is hard to handle that when your customer are French and do not have this conception of timing. e- How often do you experience cultural differences at office? Every day. Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result?

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I do not have a special example but there are recurring things that are really hard to handle. As I said before, delays are difficult to manager even if I have a 9 years’ experience in India. Maybe one thing which was hard was the fact of being a woman. When my husband and I have a meeting with suppliers I face two types of behaviors: the supplier shows an extreme respect for me because I am white or at the opposite, when I ask a question he answer in Hindi to my husband without looking at me! What I feel in such situation is really unpleasant. There is nothing to do and I know I would not have set up my company alone in India as a western woman. Identity: collectivism vs. individualism 15- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India Personal life in India is quite the same than in France 50 years ago. Young couples do not life together, can’t have sex before the wedding and after the wedding, life with the family in law. When I arrived in Delhi, I had to tell my colleagues I was fiancé with my boyfriend even if it was not true. In France, you can have your private life and do whatever you want. In India, there are rules and if you are different it is suspect. It is the same when renting a flat; you have to prove you are married or to say when you will get married when you are in couple. It is annoying. The weight of family is very important. They often live all together, parents, children, and grandparents. In our company, women have to go back home before the night and if it is not the case, their father, husband or cousin come. The problem with the weight of family is absenteeism and they even sometimes lie saying that the grand ma is dead six times in the same year! 16- Team working French are more efficient and multi-tasking. In India, workers do one task and it is hard to make the change, it takes a lot of time. It is due to the social class of our workers which is really low. They are not educated and they have been used to work without ever thinking in India. There is no team state of mind between workers. They do their job and if someone needs something they do not propose to help except if the person who asks is a member of the family. When there is a new worker, he does not get closer to the others easily. Indians from low social class are not really opened minded and stay with people from their religion or community. 17- Relationship Orientation In my company, I worked with Indians from another social class and it is not something common to share time out of the office because I am the boss. When you work with educated Indians I guess it is different. Communication: high vs. low context culture and Indian English 6- Direct and indirect communication I do not speak Hindi and my workers often do not speak English. I have to explain them what to do showing them the gesture and if they do not understand well they do not tell me. Even if they do not understand clearly, they do the work in the way they feel and it can be a huge waste of time. Maybe I would need someone to translate but the solution I found is that I show them what to do and I stay 5 minutes with each of them to check if he or she has understood correctly. The problem is that sometimes I do not have enough time. The employees’ turnover is very important for tailors and helpers and I have to start again this kind of training very often. 7- Communication patterns Indians do not ask questions when they don’t get something because they are afraid of the reaction of their manager. Sometimes they repeat what I say and I know they have understood. With my production

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manager it is easier because its English is better but he never disagree either. I think that with graduate Indians it is maybe different, the gap is smaller but it think it still exists. 8- Body language and behaviors Handshakes are not a way to greet someone in India, the use of Namaste is common. There is no body contact between men and women. I try to know the name of each employee in order to greet them personally with an eye contact. The fact I am a woman establish more distance between male employees and I. Given I am a director they pay an important attention to avoid touching me in all circumstances. 9- Indian English When you are French and you do not speak English very well as i did, it is very easy to understand Indian English. Language is a real barrier with people from low classes because they often don’t speak English at all! Use of time: linear-active vs. cycle time 10- Do you think that conception of scheduled time and punctuality is different in India? How do you handle that? Time conception is different in India maybe because in Asia in general, people don’t know how to say no. Providers think that is they say no I will find someone else to buy what I need, but it is not the case! I would rather know the real amount of time they need whereas facing huge delays every time.

12- Is time conception a problem when cooperating with Indians in term of efficiency? When providers tell me they need 15 days, I count 30 days in order to satisfy the expectations of my French customers who do not have the same conception of timing. Otherwise, my clients think I am not efficient. Management and status: power distance and gender issues 13- Hierarchical management and inequality When I have a meeting with a provider, i think it is easier to meet the director, even in big Indian firms, than in France. They are fewer barriers; you can even get his phone number whereas in France it is impossible. But within companies it is different. I my company we work in open space as a consequence workers can come to talk to us easily; we have a good contact with them, relations are easy. In my opinion hierarchy is less important than what I knew in French companies where I have worked. 14- Gender issues, sex inequalities The conception is very different from French ‘one. Earnings are different, women can’t do the same work than men because of their strength and they leave work early in the evening because of security matters. After, men and women eat together; men do not feel especially superior. I feel inferiority when I have a meeting with a provider and he decides not to talk to me but only to my husband. I do know if it is because I am a woman or I am white. Within my company or when I walk in the street I never have this feeling. Decision making process and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. They have never spontaneous initiatives and they never try to find solution to improve a process or a situation.

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16- Do you encourage autonomy and innovation at work? Is it a factor of motivation for Indians? Yes and no, it depends on the person. I work in majority with non-educated people and it is very hard to manage them. If I let them do things as they feel, it is not organized, it takes more time and it is often a poor quality work. 17- Do you think Indians feel free to talk to the manager when they make a mistake or when they disagree with her or him in the same way than French people? When they do a mistake in their job they hide it as longer as possible, consequences are a disaster for the production. When there is a problem with their earning they do not hesitate to come and to shout. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? When we receive parcel post from France we have to pay a backstitch to custom duties to be sure to get it in good condition. Indian governance and laws seem to be a mess but I think it is evolving. It becomes more and more organized and d efficient. The thing is that India is so huge that it is impossible to check everything that is why authority can sometimes be more flexible (it is an advantage) but that is why corruption can exist too. 19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? When i arrived in India i suffered from the fact of wearing clothes that covered my arms and my legs even when the weather was very warm. Todays it has become a habits but I miss France on this point. Within my company I am not seen as an Indian director by my employees because I help them to held packages or when something fall on the floor I take it… It is not what an Indian director used to do. I really pay attention to my behavior with Indian men outside the company because as i am white they think i am open to sex relations, even if i am married. It is necessary to totally avoid ambiguity. In France body contacts come easily whereas in India it would not go down well. Even with my husband, we never show affection signs in public. I am a sensitive person but in India it is considered as weakness to show feelings, it is better to become hardened. 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? We do not allow religious ceremonies within our company. There is no Puja but we give day offs for festivals. We prefer to give value to production objectives giving extra money to our employee than to religious purposes. Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary?

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I did not have any training but i think it could be very useful to deaden the cultural gap. Real-time training can be a real help to solve daily problem and be more efficient. About repatriation training I thing problem would be more about how to rebuild personal/private relationships than about professional adaptation. 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? I did not have stereotype but at the beginning i felt superior to Indian because i was French, white and they considered me with an extreme respect. After several years I understood that each culture has its own specificity and positive aspects that is why it is not a matter of inferior/superior, just a matter of difference.

9/21/11 - Isabelle Roche - General Manager India and Sri Lanka - Entrepreneurs du Monde General questions a- What are your academic and professional backgrounds? I am engineering in aeronautic and I completed my diploma with the study of philosophy, sociology and theology. I began to work as engineer in private companies and in 1998 I had the opportunity to work for NGO, it was what I wanted to do for a long time. I had been hired by Interaid (parent organization of Entrepreneurs du Monde) and I went to Bombay for 4 years where I was working on a social development program. Then, I went to Madagascar during 3 years to set the same kind of projects. Then I came back to India, in Calcutta where I work for 6 years. b- What is your position in the company? I am General Manager of Entrepreneurs du monde in India and Sri Lanka. I manage an Indian team of 35 persons. c- How long is your working experience in India? 10 years d- What do you think are the main characteristics of French and Indian people? French are more rational and Indians are chaotic. They are very over proud too but it would seem that it is the same for French. e- How often do you experience cultural differences at office? Every day even after 10 years spent there. When i was in Madagascar it was very different, there was no this huge gap due to cultural differences. Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? When I start to work in Calcutta i met many problems due to cultural differences. When you are a foreigner and you work for an ONG you appear as a source of money. Indians tried to seduce me to get money. A feeling of suspicion comes and it is very hard to handle and to know how and when trust people. In France working relationships are based on confidence, it is not the case in India. At the very beginning I have been had by fraudulent NGO and I send them money. Today I am really aware of this and I have often good surprise. I think the best state of mind to adopt in India is to expect less in order to have good surprises. It allows to be more open-minded and to enjoy of what we call incredible India. Identity: collectivism vs. individualism 18- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India

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In NGO we use to mix quite easily private and public life. There are many problems within all Indian families because of health problems or money. It takes a lot of time and energy to Indians who always take care of their family members. It was hard to manage at work (absenteeism) but this year the situation is better. I think my team is more mature and understood the importance of the missions they have at work. 19- Team working What I value the most is team working. I think harmony comes with development of each individual, it can’t be separated. If a team member is well-adjusted from a personal and technical point of view, the group harmony will be kept. I think the main difference with France is the role played by affect. In France we know have hindsight and we feel free to talk sincerely. In India, the judgment of others is very important and it is hard to find authenticity. In my team the trust is stronger and stronger but it took 6 years. 20- Relationship Orientation From my point of view relations are more formal because they are based on hierarchy in India. But I feel close to my team. For instance this week-end we had an assessment center and we have shared extraordinary moments. The main difference is that Indian are more childish than French and do not need any artifact to laugh; there is always an atmosphere of party/special day when we meet all together. Communication: high vs. low context culture and Indian English 6- Direct and indirect communication It is something common in India. At the beginning it made me laugh a lot but after a period of time spent in India it become annoying and it has made me angry. Because of these misunderstandings things take more time. For instance when I rented my first flat in Bombay I asked the owner to pain the wall in white. When I arrived to check if it was done, the wall was blue. I ask if it was white for them and they answer, “No problem Mum, it is the first layer!”… There are extraordinary misunderstandings in India! Concerning the yes and no, today I can get when they mean no more easily because I have acquired an experience. It means we understand more and more easily codes with time. 7- Communication patterns It is quite impossible to follow an agenda during meetings in India. They do not have the same conception of the organization in general. It is hard to start a meeting on time even if after 6 years, it is something that they try to do. Speaking during a given and fixed period of time is a very hard exercise. In France we structure and plan time, maybe too much sometimes. About listening habits, it is hard for Indians to remain concentrated; as a consequence it is complicated to train them. Another point which is difficult for them is to write synthesis of a meeting or what happened precisely, they do not know how they can organize the document. I try to train my team to acquire these skills. But one of the main problems in India is autonomy. This is mainly due to the methodology of education used at school: they copy, they repeat after the teacher by heart by they never think alone or give their own opinion. It takes time to make them change. 8- Body language and behaviors 9- Indian English

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I do not work with people who have fluent English; it was maybe easier for me to understand them. When foreigners visit us, it is harder for them to understand the Indian English clearly.

Use of time: linear-active vs. cycle time 10- Do you think that conception of scheduled time and punctuality is different in India? How do you handle that? Time management is totally different in India. There are so many uncontrollable things that happen every day! But time is not extensible and the consequence is that it is impossible to follow a program. 11- Do you think the value of time is different in India? Why? What are the consequences? I think French, when they have to do something, are stressed by their objective and really want to reach it before the deadline. For Indians, this stress does not exist, they don’t know this feeling and they don’t understand it. For them time is something easier to live, they always have the feeling they have a lot of time. 12- Is time conception a problem when cooperating with Indians in term of efficiency? Delays are the main problem. Management and status: power distance and gender issues 13- Hierarchical management and inequality In France people are freer to talk to their manager, there are no all these rules of respect; we respect each other’s but keeping the freedom to communicate, to give his or her opinion and suggestions. Indians are afraid of this, there are on defensive, they do not want to lose their job because of their behavior. The relation is based on a lack of trust and authenticity. For instance I observe every day the difference between the older and d new members of my team: the first feel free to express their ideas today whereas the others ask before talking and do not give their own opinion. It takes time to reach this objective. I think the French system of management is more efficient. I believe in corporatism and in India it is something impossible to establish; they always need a leader, a chief. In France and even in Africa, corporatism is something possible and very positive. In Calcutta, even with time, there is too much lack of autonomy in my team to establish this type of governance. 14- Gender issues, sex inequalities In France within a team we do not care if members are men or women. In India, women are respected but not in the same way. Women can’t do lots of things and contact is not possible for instance. As women and manager in India I have never had particular problem because my team accepted that I am a foreigner and as a consequence, I have a different behavior. They know that for me body contact is important whereas they avoid it. They accept handshakes when foreigners visit us and pat in the back when I encourage them. Decision making process and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. No, autonomy does not exist if it is not encouraged by the manager. 16- Do you encourage autonomy and innovation at work? Is it a factor of motivation for Indians? Every minute and it is what my team has against me. They think I give them too much autonomy; I want them to create their way of doing things without guide. From their point of view, having a manager means implementing its order without thinking or taking initiative. When they understand they can bring

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something more from their own thinking, when they begin to take initiative, they feel very proud and happy; they discover they have a real value-added. 17- Do you think Indians feel free to talk to the manager when they make a mistake or when they disagree with her or him in the same way than French people? They have the feeling they behave with a lack of respect if they do it. They know that with me it is different, I want to know everything. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? Corruption is present in India for each paper you need, for each authorization you have to give a backstitch. If you say no you can get what you want 1 year after instead of 2 months. Sometimes it is impossible to say no because you really need to go ahead. For instance we go to court and we won but to close the affair we have to pay, without any reason. 19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? When I visit families in slums or Muslim i take care of having my arms and legs covered. It is a question of respect. When we have meeting we sit on the floor and the most difficult thing is that you have to hide your feet! There are many many rules in India. Leaving shoes before entering in a house, greeting older at first, eating with your hands… The best way to adapt is to observe Indians and to behave in the same way. They observe you too and sometimes they propose a spoon or something else to make you more confortable. 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? We pay more attention to religions than in France because it can create problems even in a team in which people are not so much religious oriented. We adapt to Muslim when needed, for the Ramadan for instance. But we do not do ceremonies at office. We organized a seminar with other members of Entrepreneurs de Monde and there was a small Puja but it was more for the cultural aspect than for religion purposes. Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? I did not have any training. I think it can be helpful. But I like discovering new things so it is was not a problem for me. But when I have French interns in Calcutta it is very hard for them to adapt. Weather is warm and context special, these factors make cultural gap sometimes unbearable. Real time training is a

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very good idea too, especially in private firm where expatriates are not in direct contact with local populations and can’t understand Indian behaviors and codes easily. After more than 3 years abroad and in India especially I think it is very hard to come back to France. 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? Not especially. Is there anything else you would like to add about your experience in India as manager? Expatriates network is something very important when you live in India. It allows keeping contact with your home culture, to use your own codes. But there is a huge difference of conception with expatriates from private sectors and from NGOs.

10/03/11 - Jean-Paul Charraut - Head Supply Chain and ILN - Renault India PL General questions a- What are your academic and professional backgrounds? I am 40 years old. I have an international profile. I lived in Brazil, I spent my last year of EDHEC in Finland and then i lived in Argentina and Japan. I am Franco Japanese and my wife is Japanese. When I came back to France I was hired by Renault and I worked in South Africa and then I India. b- What is your position in the company? I have always worked in logistic. Today I am Logistic Manager of Renault India. My mission is composed of two main activities: managing Renault-Nissan logistic project within our Indian factory (5 persons) and sourcing/exporting pieces from India to France (30 persons). c- How long is your working experience in India? 6 months d- What do you think are the main characteristics of French and Indian people? Time conception is very complex is India. In my field of activity, I mean industry, we need to go ahead quickly and in India it is not always possible. Another point is the Indian management style: old managers are very very traditional whereas young Indians are able to take decisions, seek empowerment but given that the system is managed by old Indians they can’t develop these skills. The age is a problem but the origins are another problem to tackle in the same way. e- How often do you experience cultural differences at office? Renault India management is very French and Japanese. As a consequence it is a mix of culture and it is difficult to identify if a problem is typically Indian or not. I try to adapt case by case to people I work with and I do not stereotype. Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? The majority of our problems come from providers. The big matter is to find the real reason of their problem. We need to be on site to check what they say by ourselves otherwise they tell lies. It is necessary to give time and money to manager their problem, to understand their origin, to act if necessary and to talk directly to the top management to find a solution. In France it is different, there is a confidence and in case of problem they are different step before contacting the top management. In India, the best way is to use hierarchy because the system is based on this and to check everything every time. Identity: collectivism vs. individualism

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21- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India In general, I try to fix a limit between private and public spheres at work. Sometimes I organize a dinner with my team and the Renault corporate culture is built on respect of private life. I talk about private life of my team members only if they ask or need it. 22- Team working I have always valued a lot team working. In India there are problems of communication and coordination. People are individualistic here and do not communicate well, then I tried to improve this within my teams, it is my role to help people working together in a better way. It seems to work quite well until now. In India the turnover is important and we know that people can leave the company easily. We can’t retain them only with their earning. The best counterpart in my opinion is to give them more responsibilities and to train them to acquire more skills. I try to help them to develop individually but I think working in group is very important too to have a global coherence and efficiency. I try to balance these two aspects. Team working is not something natural for Indians. It is harder to build cross-department teams in India than in France. In India, each person works on his or her field of activity and when it leads them to the limit they do not have the curiosity to continue. They stop because it is not their job anymore. I try to motivate them to develop this curiosity because multitasking work is a key of efficiency in my mind. 23- Relationship Orientation I recruited many people when I arrived. But to hire 6 persons in India you need to meet 50 persons… It is hard to handle and very time consuming. The best way is to use networks to meet persons recommended by other. After hiring my teams I trained them. I spent a lot of hours, days with them. Empowerment is not something natural in India and it takes time to make them understand. The time spent to coach them is very important and if it is well done it gives results. Communication: high vs. low context culture and Indian English 6- Direct and indirect communication I it a daily problem, overall when communicating via emails. After 2 or 3 emails exchanged, the main subject of the discussion is lost. In order to avoid this I try to implement standard of presentation and content of emails. I don’t know if I will success in this way of doing things but I really think this rigor is necessary, otherwise it is really hard to manage. The use of the « yes » and the « no » is off course different. But it is the same in Japan; it is an intercultural aspect that is not too hard to understand. You have to pay attention to get used to it as quickly as possible. 7- Communication patterns In India chiefs are respected that is why during meetings with my teams there i no particular problems. During more complex meetings with teams from different departments it is harder to handle: you have to go straight to the point is order to keep the attention of listeners (15 min meeting in the factory not more). You have to have prepared a good strategy to reach your goal during the meeting. It is a bit the same as in Japan. If you do not prepare correctly the meeting you do not have the control and small groups are formed and talk together, you have a multitude of small meetings in parallel. You have to show authority and it works. Meeting in India are not consensual. Consensuses are made before meetings with 2 or 3 key persons and meetings are the time of decision making. 8- Body language and behaviors

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I did not have the time to change my behavior yet. I think it is important to laugh with Indian particularly when you are the manager and you want to give a negative feed-back. They take what you say very personally that is why you have to keep smile to make them feel comfortable and to reduce tension. 9- Indian English When I speak in face to face with India I can get easily what they say but when i have to talk them by phone i can’t get anything. I Live in Chennai in the Namil Nadu and English is not spoken by everybody; in many situations my hands are useful to communicate. Use of time: linear-active vs. cycle time Time conception is different in India. I noticed that in India manager do not have schedules as full as in France. They keep free moments to be able to deal with list minute hitch, because this kind of situation is common here. Another point is that in India you have to reduce the number of project you manage in comparison with France. Managers have to check frequently what the team is doing and it takes more time. The empowerment of team members takes more time too but it is something necessary to develop within team in order to make team members more autonomous and efficient. People I recruited are in the good way and I feel I have more time to work on my personal tasks today than 5 months ago. Concerning providers we have big problems of delays with them. The objective is to find a way to control exactly what they do. Sometimes we hire a person to stay 24/24 within the provider factory to check the advancement of the work that has to be delivered. Management and status: power distance and gender issues 13- Hierarchical management and inequality The hierarchy is very present and the respect of the superior is much more important than in France. But it is different within IT companies and in industry. In IT and services in general, hierarchy is less central and castes barriers either. In Industry, the system of management is more traditional and you really feel the weight of hierarchy and castes, especially in factories. 14- Gender issues, sex inequalities In the factory in Tamil Nadu it is impossible to be a woman and to manager a team. It is a very traditional state. Even for an expatriate it is hard to handle. Decision making process and initiatives 15- Do you feel that Indian colleagues take sufficient initiative in their work? Explain. I try to give them autonomy training them and developing empowerment within my teams. It works with ones and not with others. In all cases it takes more time than in France. Today, people I hired and trained are more autonomous. It means it works and the initial time investment worth. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? I did not face Indian authorities in my job. I had some problems to get my visa but I shouted the good person and it worked. This kind of behavior is not natural for me and it did not work in all countries!

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19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? I try not to pay too much attention to this. For instance in Japan there are expatriates who try to adapt too much and when they negotiate they do not ask anything to avoid upsetting Japanese! Behaving like this, you don’t do business anymore. When you are foreigner you are foreigner and can’t behave like local people. I am not totally French, not totally Japanese and people adapt. 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? I do not really feel the weight of religion at work. When they work, people are not religious oriented. When there is a wedding I am often invited, it is surprising. I refuse politely in general because I want to protect my private sphere. If you are an expatriate it is accepted but if you try to become too Indian, it becomes harder to handle. Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? No particular training before leaving. I think it is not useful because when you have too much information before your departure you pay too much attention to details when you arrive in the host country. For instance in Japan, I met impulsive French managers who were totally different with Japanese and not as efficient as they were in France. I think the best way to be efficient in a cross-cultural environment is to stay you. A real-time support is something more interesting even necessary. Concerning repatriation, I think expatriation do not have to last more than 3 years otherwise you are disconnected from the headquarters and it is not good. After 3 years spent abroad I think you do not need a particular training when you are repatriated. 22- Did you have a stereotyped view of Indians before your departure? How does it evolved? I had stereotypes watching TV. But India is incredible and unpredictable. Life is totally different if you live in Chennai or in Delhi for instance. The better is to avoid having stereotypes in mind because the opposite often occurs!

10/09/11 - Eric Soubeiran - General Manager - Danone India General questions a- What are your academic and professional backgrounds? Graduated from EDHEC in 2001, i began my career working at Arthur Andersen, one of the big 5 consulting firms before the Enron crisis. Then I worked 3 years in consulting before being hired by the English company Rexam as strategy planner and manager of acquisitions. They asked me to become General Manager of Rexam India and I spent 3 years in Bangalore. When I came back to France I had been hired by Danone and I am General Manager of Danone India for one year. b- What is your position in the company? General manager c- How long is your working experience in India? 4 years

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d- What do you think are the main characteristics of French and Indian people? Indians are full of energy, emotive and very good negotiators. French are organized; don’t like adventure and centralist in their way of managing people. e- How often do you experience cultural differences at office? Every day when working with Indian teams. Critical incident Think about a situation which you faced in your work with Indian colleagues which was particularly difficult. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? A frequent situation is the conception of the truth in India. Indians does not consider the fact of lying in the same way than what we do. It is very surprising at work because as French, when I ask a question I expect the answer to be true by definition. Indians can lie to you without feeling any culpability; they do not have the Judeo-Christian conception of lie we have in France. It explains a lot of facts such as lack of punctuality, corruption, lack of efficiency… In order to handle that in the best way I try not to behave as French. I try to understand their objective, the reason which makes them lie to me. In India it is important to fix a framework and golden rules to respect. You have to explain it to your collaborators and to make them understands these rules have not to be broken. But, inside this fixed framework you have to be flexible otherwise it is impossible to go ahead. For instance Danone India sells fresh products which have to be maintained refrigerated. The main problem in India is power cut and products can’t be refrigerated in the same way than in Europe. You have to adapt your product to this local constraint. Identity: collectivism vs. individualism 24- Private and public spheres (personal subjects vs. public subject from French ‘point of view) at work: the weight of family in India Not in India. You have to create a personal and private relationship with your collaborators to be integrated. You are invited to parties and you have to organize parties with your team at your home. It is very pleasant because Indians are jovial. In France we do not have this behavior and I think it is one the reasons why we are bad exporters. We do not know how to do business anymore. When you are in a party in France you do not swap your business card with people whereas in India it is common. Relationships are easiest to develop here and the role played by the network is much more important in business. 25- Team working Hierarchy is central here; it is the boss who makes decisions. He has the authority; it is a kind of autocratic system. In France, decisions are built and made with the team. In Indian it is a real challenge to build an autonomous team to work and go ahead all together. But it is possible spending time to make them understand and because there are more and more very well educated young Indians who are very ambitious, much more than French graduates. This behavior at work is mainly due to the Indian education. Classes are charged and students are evaluated with multiple questions questionnaires only. Personal opinion, expression and team working are never valued. Besides, Indians do not practice sports and miss as a consequence one more opportunity to develop team spirit. In my opinion it is necessary to make them autonomous because the objective of Danone is to manage Danone India from France, without sending expatriates. I think results are quite positive even if it takes time, I need to force them, to explain how to communicates, how to disagree, and it is not something normal for them. Disagreements have to be expressed during meetings and not via indirect

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communication. I try to listen to them a lot to help them efficient to evolve. You see you have good results when they become to communicate without feeling obliged to use you as intermediary.

Communication: high vs. low context culture and Indian English 6- Direct and indirect communication About the use of « yes » and « no » it is not a barrier. If you look Indians into the eyes you know if they mean yes or no. They know how to say no. Of course they do not say no very often to avoid conflict. If an Indian says “yes” because of hierarchy and do not understand what you mean you have to notice it. The consequence is that you have to develop a specific way to check things in India; it is not the case in France. You have to check everything in order not to lose too much time but it takes time and energy. It is one of the reasons why, very often, expatriates working in India are discouraged. There are many aspect of the communication that I do not understand because I am a foreigner but there are many aspect of my behavior that Indians do not understand either. I think in a cross-cultural context the best way to behave is to do as you feel and to explain why to your team. When there are clever, people can understand everything. They can give their opinion. The most important point is to create a dialog and a relation of confidence. I use and play with my “crazy foreigner” reputation when I do not want to explain what I do, but not very often! 7- Communication patterns Punctuality is the main problem and listening and participation are other problems. But surprisingly, when they have an opinion and can express it with words, Indians are much more engaged than French who are “blasé” according to me. Meetings in India are quite long because you have to let the members of your team time to express their opinion. 8- Body language and behaviors There is more distance with women, no physical contact is accepted. The place of hierarchy is always important; for instance, when I enter in the meeting room, my managers stand up even if they are older than I am because am the boss! It is quite funny! But is you build a relation of confidence with Indians men, they become very tactile with you, big hug, pat on your shoulders… They behave at the other extreme! Use of time: linear-active vs. cycle time Punctuality is the main problem when managing an India team. The solution is to fix rules be being flexible. For instance you have to take into account the local environment, traffic jam which is huge in India, accidents… Many expatriates do not want to understand and take into account the local environment and I think it is a good reason for failure. You have to adapt to India. Management and status: power distance and gender issues Indians accept hierarchy and it comes from their education. They are less dissenting than French about hierarchy. French used to reconsider the hierarchical system systematically. It does not mean that Indians do not have a dissenting past but it is less influent than in France. Decision making process and initiatives I encourage the sense of initiative. The first thing is to give the right to do mistakes otherwise it is impossible to create a creative and entrepreneurial environment. This is true everywhere, not only in India. I give them autonomy and they know why they have to do this or this. Very often we don’t know why we do things within companies and the simple fact of asking “why” a value-added in my mind is. I try not to value status quo but opinions. I want my teams to express and defend their opinion even if I

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decide at the end. In India they are not used to give their opinion until the ages of 20, it is not valued at all and it has a negative impact on creativity. When I give them autonomy I do not know if they feel proud but I know they understand why. Practical points (background about India) 18- Think about a situation which you faced in your work with government or/and legal and tax Indian system. Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? I have problem every days. For instance when I built my plant the authorities said me the will remove an electrical pylon which was useless. Finally, several months after they discover this electrical line was not dead and provided electricity to a village. I have 3 contacts to solve this problem: the village, the industrial zone and the provider of electricity. I know that negotiations risk lasting several months… It is a real barrier. 19- Think about a situation you faced in which you had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? For instance I have a daughter aged 15 months old and it was necessary I show her to my team and we celebrate her first birthday all together, otherwise they would have felt offended! It is necessary to accept this! 20- Think about a situation you faced in which you dealt with the weight of religion at work had to adapt to the Indian etiquette (the rules of polite society). Describe the situation. How did you handle the situation (describe your behavior accurately)? What was the result? How often does this kind of situation occur? Is it really a weight? I don’t know. Religion is very present in the daily life: bank holidays, festivals, pujas when we have a new machine or shed… It is a party of the daily life in India for me. I have to handle that. For instance when I worked in a pharmaceutical firm it was impossible to do a traditional puja with flowers and coconuts within white rooms. I had to fins solution: fake flowers… You have the choice, you can consider India as a country where everything is difficult or, at the contrary, where you can find extraordinary solutions, it boosts your creativity! Training program 21- Before starting your work in India how prepared were you to handle cultural differences? Do you think a training program before departure could help? Do you think reality time training could help? Do you think repatriation training is necessary? I did not do any training. For me it was something useless because I loved the fact of discovering and adapting myself to my new environment. It depends on the personality of each expatriates and I think a pre-departure training could be useful for lot of them. I received a cross cultural training in India and it was much more useful in my mind because I knew what India was more concretely. When I do not know how to behave I ask my Indian friends who have often a working experience in western countries and they understand quite well what I feel and what I do not understand. About repatriation training, I think it is useless because today you work with multicultural teams even within your headquarters. For me it was much more complicated to work with Americans when I was working in France than with Indians today!

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EXHIBIT 4: Model and results MAIN TOPICS

S UBTOPIC

S YNTHES IS OF RES ULTS

Q UOTATIO NS Every day when interacting with Indian people! It is not very important to understand the Indian culture in the sense of Indian history because it is really complicated. Very often, every day

Cultural gap is something felt extremely frequently by French managers when working in India.

As soon as I speak with Indians, it means every minute! The way they think is totally different from mine. French people are quite rational whereas Indians let themselves be held by the system.

CULTURAL GAP

Every day even after 10 years spent there. When i was in Madagascar it was very different, there was no this huge gap due to cultural differences. Renault India management is very French and Japanese. As a consequence it is a mix of culture and it is difficult to identify if a problem is typically Indian or not. I try to adapt case by case to people I work with and I do not stereotype.

The weight of family is very important. When I recruit people they always say they have to talk with their parents before accepting. Families give their opinion about the job of their children, about the localization of the job. For instance in Bangalore there are many young people who come alone to work and the family worry about that and want to be part of the decision. After recruitment it is not really a problem except for human resources management: there are many goods festivals and ceremony and they want to go back to their native. They try to find solution but in France it could not be possible. There is a system of tandem in Indian team to solve this problem of absenteeism because of wedding, ceremonies… It is the family who decide for weddings and it can occur very quickly… For human resources managers, the use of tandem is the best way. Concerning workers, the weight of family is very important. For instance they do not come at office because a member of their extended (uncle…) family is sick, it is not a good reason in France but in India it is accepted.

IDENTITY

Family

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Influence personal decision making Absenteeism No influence on skills at work Solution = tandem or making them understand they have managerial responsibilities.

For Indians family is the most important thing. They work to feed their family (wife, children and grand-parents). One of the problems of this conception is absenteeism. Workers are often absent because of their relatives ’problems (health or any other reasons). The priority is given to the family when it is necessary. The solution in Indian company is to make people work in tandem. I try to avoid that but for production for instance I am obliged to do it. Concerning managers, I have tried to make them understand that they have important responsibilities and consequently can’t be absent often. In general I am flexible with my managers, I mean when they need a day-off I give them and I know if I need them during a weekend later they will be there. This kind of flexibility does not exist in France. It is the same with the use of mobile phone: in India even during the week-end, your professional mobile phone is switched on whereas in France it is not the case. The weight of family is very important. They often live all together, parents, children, and grandparents. In our company, women have to go back home before the night and if it is not the case, their father, husband or cousin come. The problem with the weight of family is absenteeism and they even sometimes lie saying that the grand ma is dead six times in the same year! In NGO we use to mix quite easily private and public life. There are many problems within all Indian families because of health problems or money. It takes a lot of time and energy to Indians who always take care of their family members. It was hard to manage at work (absenteeism) but this year the situation is better. I think my team is more mature and understood the importance of the missions they have at work.

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EDHEC Master Thesis – Cross-cultural management in India Personally I prefer team working; in my previous job my main skill was to build teams. It is something very important for me inside and outside companies (network, virtual teams). Today in my company I still consider it is essential to work in team. The harmony of the team is conditioned by the reconnaissance of each team members’ contributions. It is impossible to have harmony within a team without developing the skills of each member. It is true in India too. There are many Indians who change company every 2 months because they find better conditions elsewhere. If you don’t have a program of development of your team members there is no way to manager and to keep them. Sometimes it is necessary to have the point of view of everybody and sometimes it is more efficient to achieve a task alone. I think the most important is the personal development because the harmony of the group will change each time you hire a new employee. Personal development fits well with a good working context.

Team working

There is no team state of mind between workers. They do their job and if someone needs something they do not propose to help except if the person who asks is a member of the family. When there is a new worker, he does not get closer to the others easily. Indians from low social class are not really open- minded and stay with people from their religion or community.

French: Team working orientation Personal development of team members to motivate and keep them Indians : do not have team spirit Individualism : focus on its personal mission Cross team working quite impossible.

I have always valued a lot team working. In India there are problems of communication and coordination. People are individualistic here and do not communicate well, then I tried to improve this within my teams, it is my role to help people working together in a better way. It seems to work quite well until now. Team working is not something natural for Indians. It is harder to build cross-department teams in India than in France. In India, each person works on his or her field of activity and when it leads them to the limit they do not have the curiosity to continue. They stop because it is not their job anymore. I try to motivate them to develop this curiosity because multitasking work is a key of efficiency in my mind French people in India are shy and are not very well mixed with the local population. When I began to work in big companies in Europe is was something very important for me to make a clear distinction between private life and public life and it was something supported by companies in which I worked. In BP I was “director of the diversity”, I defended the value of respect of private life of employees (in term of timetable for instance).When I arrived in India it changed. In India the distinction is not clearly made between private en public life. It is for instance common to receive a call at 10pm, we don’t hesitate to ask people to come very early or to leave late in the evening if it is necessary, and it is not a problem to change the program and to send someone to UK with one day advance warning. This is particularly true in big companies where there are a majority of young people (average 26) who are flexible, who want to learn, who are ambitious and who accept everything to progress. There is no respect of private and family life.

France: India: -

Relationship orientation

In India when a team works well it is quite a family: we spend a lot of time together, we have lunch or dinner together… A team which is so bound together, when it works, it makes miracles! Results are exceptional; people are really to be 100% involved if you respect them. In France it is different, people are never 100% involved (it is my experience), and when you have a rush at office there are still working hours whereas in India people don’t hesitate to change their own family life to complete the mission. The advantage of Indians is their flexibility. In France, a kind of distance is supposed to exist. If you have to take a hard decision concerning one person you appreciate as a friend, it is more difficult to explain if the person is your friend. In an Indian factor, Indians at the same level of hierarchy them can share good moments but is amazing how they are afraid of their managers. I think I was closer to them because I knew I was not going to be their manager for a long time, only for few months. I wanted to learn about their culture so I came pretty deep in the relationship with them, I was curious about their way of life. They invited me to share personal experiences: I eat at their home, did with them religious ceremony broke the coconuts for the Puja; I saw they were very happy I shared these moments with them. For instance my boss tried to keep more distances with them. I would never have this kind of relations with French. The difference of culture makes me very curious. In France I was really open to share private moments with my colleagues and in India it is something absolutely common. Indians are more

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-

-

-

Private life highly respected. Distance

no distinction between private and public life high flexibility, adaptability, involvement Close relationships sometimes inquisitiveness and judgment. private life = traditional Hierarchy can create this distance and when notion of castes differences between managers and workers = distance Share good moment = Indian childish different atmosphere

Two types of managers: those who


EDHEC Master Thesis – Cross-cultural management in India attached to close relationship at work and in general than French. In France, private and public lives are clearly separated whereas in India, personal matters can have an influence at work. I am a young manager of 26 years old in India and maybe because of this I try to keep a kind of distance with my employees. In France I can share my private life with collaborators overall if i am working in a SME. In India I could do it easily too. But due to my position I prefer to limit my relationships with my employees. It does not prevent me from participating to an operator’s wedding for instance!

adapt to India and relationship oriented behaviors and those who keep distance and protect their private life (it is easier when you are an expatriate).

Personal life in India is quite the same than in France 50 years ago. Young couples do not life together, can’t have sex before the wedding and after the wedding, life with the family in law. When I arrived in Delhi, I had to tell my colleagues I was fiancé with my boyfriend even if it was not true. In France, you can have your private life and do whatever you want. In India, there are rules and if you are different it is suspect. It is the same when renting a flat; you have to prove you are married or to say when you will get married when you are in couple. It is annoying. In my company, I worked with Indians from another social class and it is not something common to share time out of the office because I am the boss. When you work with educated Indians I guess it is different. From my point of view relations are more formal because they are based on hierarchy in India. But I feel close to my team. For instance this week-end we had an assessment center and we have shared extraordinary moments. The main difference is that Indian are more childish than French and do not need any artifact to laugh; there is always an atmosphere of party/special day when we meet all together. In general, I try to fix a limit between private and public spheres at work. Sometimes I organize a dinner with my team and the Renault corporate culture is built on respect of private life. I talk about private life of my team members only if they ask or need it. Not in India. You have to create a personal and private relationship with your collaborators to be integrated. You are invited to parties and you have to organize parties with your team at your home. It is very pleasant because Indians are jovial. In France we do not have this behavior and I think it is one the reasons why we are bad exporters. We do not know how to do business anymore. When you are in a party in France you do not swap your business card with people whereas in India it is common. Relationships are easiest to develop here and the role played by the network is much more important in business. Communication is the most important thing when Westerners and Indians negotiate. Do not think you have well understood too quickly because it often means you did not get everything Before my first meeting in India, I asked a member of me team to prepare a report for me, he told me “ok”. One hour before the meeting, when I asked him to show it to me I answer he had not done it because he had not understood what I expected! I was surprised and very angry but he repeated that if I explained it clearly he would do it. I came to the meeting without report and angry, I didn’t have any other choice than improvise approximates answers, it was not professional at all. After this event, in order to avoid this kind of situation, each time I asked something to an Indian manager or colleague I made him repeat what he had understood. It can seem to be stupid to behave as a teacher but it is the best way I found to avoid misunderstanding (word, vocabulary or content of the purpose). Unfortunately this is a recurrent problem in India for expatriates but I kept this method and it works.

COMMUNICATION

High vs. Low context culture

There are many problem of communication and when foreign companies began to work with India it is the point they should really focus on but it is often what they forget to pay attention. For instance in India, No is not really used. It is not because Indians always agree but is can be because the speaker is superior in the hierarchy. They let you think that they have understood and that they are going to do what you ask before the deadline but finally it is not what occurs. It is important to pay special attention to the Indian context, to the culture, to codes of communication. When the wobble with the head for instance it seems to mean “yes” because in India it means “I listen to you”. It is necessary to make an effort of comprehension and to check if the communication is clear and dwell understood. For instance, when we built units to provide them to the customer, there was a big misunderstanding about dimensions of each piece. For the French Headquarters of this company (Schneider), the good dimensions were ours, for their Indian subsidiary, it was different. They do not communicate well together headquarters and subsidiary. There is a lack of accuracy in their communication. Indians always say “humhum” with their head and say “ok” even when they do not understand.

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Communication is a pitfall when doing business in India. Indirect communication is the way to communicate in India whereas French managers are used to direct communication. M ain milestones of the Indian communication: Yes means “I am listening” Hierarchy is a barrier to say “no” M anagers adapt, learn how to understand indirect communication and can use their status of foreigners



When Indians say “no” it means “no” but when they say yes it means” I don’t not know”. They prefer to say “yes” in general. They say “no” when you attack them directly and they want to defend themselves. You can see in their eyes if they seem convinced or not. You can ask the question differently to be sure they understood and ask them to repeat to be really sure again.

to justify their own behaviors and misunderstandings.

Indians never say « no » as a consequence it is quite difficult to rely on what they say or write. There is no visibility on what they do when working with them because they do not monitor each step of a project. But on the other side, it is easy to work with them from the point of view of relationships. Misunderstandings due to communication are common and it can have an important influence on efficiency. The most important problem is how to understand when Indians mean “no”. For instance I have asked during one year quotations to a supplier and I never get any answer positive or negative because I guess my business does not interested them but they prefer to keep silence rather than say “no”. Today, it is my 2 years’ experience in India which helps me to understand when Indians mean no (it is not always easy) and I can save time. It is something common in India. At the beginning it made me laugh a lot but after a period of time spent in India it become annoying and it has made me angry. Because of these misunderstandings things take more time. For instance when I rented my first flat in Bombay I asked the owner to pain the wall in white. When I arrived to check if it was done, the wall was blue. I ask if it was white for them and they answer, “No problem Mum, it is the first layer!”… There are extraordinary misunderstandings in India! Concerning the yes and no, today I can get when they mean no more easily because I have acquired an experience. It means we understand more and more easily codes with time.

Solutions to tackle this problem: Checking if the people you are talking to understand and establish confidence Using feelings and looking at Indians eyes M onitoring everything to solve problems as early as possible.

The majority of our problems come from providers. The big matter is to find the real reason of their problem. We need to be on site to check what they say by ourselves otherwise they tell lies. It is necessary to give time and money to manager their problem, to understand their origin, to act if necessary and to talk directly to the top management to find a solution. In France it is different, there is a confidence and in case of problem they are different step before contacting the top management. In India, the best way is to use hierarchy because the system is based on this and to check everything every time. The use of the « yes » and the « no » is off course different. But it is the same in Japan; it is an intercultural aspect that is not too hard to understand. You have to pay attention to get used to it as quickly as possible. About the use of « yes » and « no » it is not a barrier. If you look Indians into the eyes you know if they mean yes or no. They know how to say no. Of course they do not say no very often to avoid conflict. If an Indian says “yes” because of hierarchy and do not understand what you mean you have to notice it. The consequence is that you have to develop a specific way to check things in India; it is not the case in France. You have to check everything in order not to lose too much time but it takes time and energy. It is one of the reasons why, very often, expatriates working in India are discouraged. There are many aspect of the communication that I do not understand because I am a foreigner but there are many aspect of my behavior that Indians do not understand either. I think in a cross-cultural context the best way to behave is to do as you feel and to explain why to your team. When there are clever, people can understand everything. They can give their opinion. The most important point is to create a dialog and a relation of confidence. I use and play with my “crazy foreigner” reputation when I do not want to explain what I do, but not very often! A frequent situation is the conception of the truth in India. Indians does not consider the fact of lying in the same way than what we do. It is very surprising at work because as French, when I ask a question I expect the answer to be true by definition. Indians can lie to you without feeling any culpability; they do not have the Judeo-Christian conception of lie we have in France. It explains a lot of facts such as lack of punctuality, corruption, lack of efficiency… In order to handle that in the best way I try not to behave as French. I try to understand their objective, the reason which makes them lie to me.

Interactions: talking and listening

When I arrived in India, I worked in the French embassy; I remember that French and an Indian company were negotiating a contract for seven years. Finally, they stopped negotiations because they could not understand themselves anymore, it was impossible to go further, to set up a joint venture on these bases.

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It is easy to lose track of the main purpose when talking, negotiating or



exchanging with Indians. Today there is a new phenomenon: Indian who have worked abroad come back to the big Indian firms and bring a British culture in term of communication (clearer and more direct), they can communicate more efficiently with their Indian counterparts. In France the tendency is to have debates during meetings, participants give their opinion and at the end of the meeting a decision is made. In India debates are not common. People listen and take notes, do not ask questions and it can pose a problem to foreigners who do not understand this silence because they think that everybody agree. In reality it is not the case! It is necessary in India to be sure that people you are talking to have understood, to make them repeat or rephrase what they understood to be sure everybody agree. Once again a “yes” in India does not mean “I agree” but “I have heard you”. When there is a foreign/western manager the communication is not as flexible as a meeting with Indian participants only. There is a high respect for foreign managers and hierarchy, and this barrier does not exist when Indian are together (they have debates, much more lively). Sometime Indians, if it is not their direct concern, do not feel implicated at all even if it will be interesting to have their opinion. They do not want to take risks and prefer to shut their mouth. Meetings are not a mess because hierarchy is very important. If the manager is speaking, nobody will interrupt him. If Indians have something to say, they will start saying, “yes I agree but”… and develop a new idea. There is something that never happened to me in France it is to be invited to a meeting without knowing the purpose of it! There is an obvious problem of preparation in meeting managing by Indian people. It is not very well structured and it is quickly a mess. During meetings, Indian people use their mobile phone and even take calls. It is really disturbing. They always say yes to save the face but at the end of the meeting they do not ask question if they do not have understood or if they disagree. It is not really efficient. Indians do not ask questions when they don’t get something because they are afraid of the reaction of their manager. Sometimes they repeat what I say and I know they have understood. With my production manager it is easier because its English is better but he never disagree either. I think that with graduate Indians it is maybe different, the gap is smaller but it think it still exists. It is quite impossible to follow an agenda during meetings in India. They do not have the same conception of the organization in general. It is hard to start a meeting on time even if after 6 years, it is something that they try to do. Speaking during a given and fixed period of time is a very hard exercise. In France we structure and plan time, maybe too much sometimes. About listening habits, it is hard for Indians to remain concentrated; as a consequence it is complicated to train them. Another point which is difficult for them is to write synthesis of a meeting or what happened precisely, they do not know how they can organize the document. I try to train my team to acquire these skills. But one of the main problems in India is autonomy. This is mainly due to the methodology of education used at school: they copy, they repeat after the teacher by heart by they never think alone or give their own opinion. It takes time to make them change.

Oral communication during meeting: M anager is highly respected and participants do not give their opinion There are not debates to make decisions It is hard to keep the attention of the audience There is no agenda or structure and it can become a mess

Written communication: Difficulties to summarize and write a synthesis Lack of framework when writing something (email) Reason: Indian methods of education. M anager can make it evolve Communication in India is evolving with young Indians who have a more westernized behavior.

In India chiefs are respected that is why during meetings with my teams there i no particular problems. During more complex meetings with teams from different departments it is harder to handle: you have to go straight to the point is order to keep the attention of listeners (15 min meeting in the factory not more). You have to have prepared a good strategy to reach your goal during the meeting. It is a bit the same as in Japan. If you do not prepare correctly the meeting you do not have the control and small groups are formed and talk together, you have a multitude of small meetings in parallel. You have to show authority and it works. Meeting in India are not consensual. Consensuses are made before meetings with 2 or 3 key persons and meetings are the time of decision making. I it a daily problem, overall when communicating via emails. After 2 or 3 emails exchanged, the main subject of the discussion is lost. In order to avoid this I try to implement standard of presentation and content of emails. I don’t know if I will success in this way of doing things but I really think this rigor is necessary, otherwise it is really hard to manage. Punctuality is the main problem and listening and participation are other problems. But surprisingly, when they have an opinion and can express it with words, Indians are much more engaged than French who are “blasé” according to me. Meetings in India are quite long because you have to let the members of your team time to express their opinion.

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The body language is something hard to change when you are used to gesticulate for instance. But when you are with Indians you feel that it is necessary to have a kind of restraint. You understand quickly that it is something embarrassing for Indian people to be kissed or to shake the hands. It is not really a problem; you can simply say “good morning” and communicate by the voice. Sometimes Indians do not speak very well; it is helpful to use hands to speak. Physical distance depends on the hierarchy, the atmosphere you create with workers. They can be close because there are more tactile than French but when hierarchy comes… distance. They even apologize if they just touch the manager. Indians can touch you more easily than in France but when there is a hierarchical relation it is the contrary.

Body language

Hard to make it evolve but necessity to adapt to Indian culture. Each manager behaves in the when he feels adapted. -

Handshakes are not a way to greet someone in India, the use of Namaste is common. There is no body contact between men and women. I try to know the name of each employee in order to greet them personally with an eye contact. The fact I am a woman establish more distance between male employees and I. Given I am a director they pay an important attention to avoid touching me in all circumstances.

Avoid handshake => Namaste Physical distance depends on hierarchy and close physical contacts come when Indians trust you.

I did not have the time to change my behavior yet. I think it is important to laugh with Indian particularly when you are the manager and you want to give a negative feed-back. They take what you say very personally that is why you have to keep smile to make them feel comfortable and to reduce tension. There is more distance with women, no physical contact is accepted. The place of hierarchy is always important; for instance, when I enter in the meeting room, my managers stand up even if they are older than I am because am the boss! It is quite funny! But is you build a relation of confidence with Indians men, they become very tactile with you, big hug, pat on your shoulders… They behave at the other extreme! There is an Indian English with words that have a different meaning, with “Indianism” constructed with Hindu words. I have the chance to speak India so I can get more things; I understand why they repeat three times the same word! It is just a question of adaptation and of being open minded when arriving in India. Communication is very important, it is necessary to ask if something is not understood and to feel when there is a frontier that should not be over passed. At the beginning it is a problem to understand Indian English. But is comes better and better; after one month you can understand well Indian accent and understand that they make many mistakes.

Indian English

At the beginning Indian English is really hard to understand. They pronounce words in a different way than British or American people and they use different words too. It took me around 1 or 2 months to understand a conversation during a meeting and a bit more to get perfectly phone calls.

Indian accent is special but it is just a question of adaptation. Educated Indians speak English well (with their accent) but Indians from lower classes sometimes do not speak English at all. It can depends on the region too because there are many languages in India.

When you are French and you do not speak English very well as i did, it is very easy to understand Indian English. Language is a real barrier with people from low classes because they often don’t speak English at all! I do not work with people who have fluent English; it was maybe easier for me to understand them. When foreigners visit us, it is harder for them to understand the Indian English clearly. When I speak in face to face with India I can get easily what they say but when i have to talk them by phone i can’t get anything. I Live in Chennai in the Namil Nadu and English is not spoken by everybody; in many situations my hands are useful to communicate. I do not speak Hindi and my workers often do not speak English. I have to explain them what to do showing them the gesture and if they do not understand well they do not tell me. Even if they do not understand clearly, they do the work in the way they feel and it can be a huge waste of time. Maybe I would need someone to translate but the solution I found is that I show them what to do and I stay 5 minutes with each of them to

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EDHEC Master Thesis – Cross-cultural management in India check if he or she has understood correctly. The problem is that sometimes I do not have enough time. The employees’ turnover is very important for tailors and helpers and I have to start again this kind of training very often.

US E OF TIME

It is not the same. In India Time is a circular concept whereas in France it is linear. In France what is not done today won’t be done tomorrow whereas in India, it is not a problem it will be done later. Time is never a problem in India that is why when there is a deadline to respect; Indians do not hesitate to give their time. In France it is not possible to keep workers at office until 1a.m if it is needed. In India, I can rely on my teams in term of timing: if I ask them to stay they will stay without asking compensation. I will give them one because it is normal. It is something really pleasant.

Time conception totally different in India: circular conception (time is not a constraint, Indians are never under pressure because of time) vs. linear conception.

You can have problems with delays if you do not know how to manage Indian teams. I set up processes to check that at 20% of the process 20% of the worked is done and I work pretty good… It is not a major problem, it is manageable. But there is a necessity of understand the Indian context to be efficient as manager. With suppliers it is necessary to shout them and it works. It is necessary to pay more attention to them than it is the case in Europe; you have to check if the deadlines are respected much more often but everything is possible. I mean I France if the work is not done, it is not done. In India if the supplier really want to help you or if you shout him, an extra team will be affected to work on your order and you will receive it the next day!

Other reason: local environment (population, traffic jam, inconvertible events occur…) => has to be taken into account.

Time very different because first of the traffic jam! The only way to solve this problem is to fix very rude rules. It was working quite well. The value of time is different because they take more time, I do not know really why. They do not have an overview of things and deadlines; they see things steps by steps. Everything takes more time, everything is longer in India. They do not respect deadlines.

Positive consequences: Availability Flexibility

Time conception is totally different in India. Time does not have the same value. In France there are deadlines, we use reverse planning to organize project management. In India they evaluate approximately the time needed to reach a goal and they suffer time more than manage it. That is why delays are quite common. They do not fix clear timing that is why it always takes the time that it takes... The main problem is delays. I am sometimes obliged to shout my suppliers to get what I need on time.

Negative -

Indians consider time differently. When you have a meeting in France you arrive 10 minutes in advance whereas in India it is at least 30 minutes late and sometimes they do not come without giving any explanation. With our suppliers, when they promise it will take 15 days, in reality it is 30 days. It is hard to handle that when your customer are French and do not have this conception of timing. I do not have a special example but there are recurring things that are really hard to handle. As I said before, delays are difficult to manager even if I have a 9 years’ experience in India. Time conception is different in India maybe because in Asia in general, people don’t know how to say No. Providers think that is they say no I will find someone else to buy what I need, but it is not the case! I would rather know the real amount of time they need whereas facing huge delays every time. When providers tell me they need 15 days, I count 30 days in order to satisfy the expectations of my French customers who do not have the same conception of timing. Otherwise, my clients think I am not efficient. Time management is totally different in India. There are so many uncontrollable things that happen every day! But time is not extensible and the consequence is that it is impossible to follow a program. I think French, when they have to do something, are stressed by their objective and really want to reach it before the deadline. For Indians, this stress does not exist, they don’t know this feeling and they don’t understand it. For them time is something easier to live, they always have the feeling they have a lot of time. Delays are the main problem.

-

effects: Lateness Delays Lack of structure, planning and objectives in term of time Lack of projects global overview

Solutions: Fixing a framework, golden rules M icromanagement, monitoring Being more flexible Expecting less to have good surprises

Time conception is different in India. I noticed that in India manager do not have schedules as full as in France. They keep free moments to be able to deal with list minute hitch, because this kind of situation is common here. Another point is that in India you have to reduce the number of project you manage in comparison with France. Managers have to check frequently what the team is doing and it takes more time. The empowerment of team members takes more time too but it is something necessary to develop within team in order to make team members more autonomous and efficient. People I recruited are in the good way and I feel I have more

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EDHEC Master Thesis – Cross-cultural management in India time to work on my personal tasks today than 5 months ago. Concerning providers we have big problems of delays with them. The objective is to find a way to control exactly what they do. Sometimes we hire a person to stay 24/24 within the provider factory to check the advancement of the work that has to be delivered. Punctuality is the main problem when managing an India team. The solution is to fix rules be being flexible. For instance you have to take into account the local environment, traffic jam which is huge in India, accidents… Many expatriates do not want to understand and take into account the local environment and I think it is a good reason for failure. You have to adapt to India. In France, there is an opposition with the boss or the manager. In India, the manager is the father figure, there is a kind of paternalism; a team that works well is like a family. It is totally different in France where it can have respect because of the skills of the manager for instance but there often jealousy too. This difference is noticeable in term of vocabulary too: in India we often say leader instead of manager. In India the French concept of “cadre” does not exist. In France it can be a problem when young graduate from EDHEC for instance manage older people. This problem does not exist in India because young people begin at the bottom but evolve quickly. That is why it is important to allow them to evolve, to have a personal development within the company so that they stay with you. If they do not find what they need, you can’t keep them and they leave you to work in another company. In India there is too much respect for the manager to complain to the manager to the big boss. It is not in the culture. In my mind it is necessary to reward good workers. Sometimes we manage Indian teams with a kind of naivety: for instance we give award when managers or employees are efficient and Indians love this. They like to be rewarded; sometimes the bonus is even less important than recognition. It is hard to compare Indian management and French management because we do not do the same things in India and in France. I would say the Indian system of management is much more open, it is possible to reach a goal even if it seems impossible. In France, the system is quite rigid, for instance I tried to solve punctual problems motivating people to come at the office the week-end, it was not accepted, it is highly complicated to open the company when it is not planned in advance… In India, they do not hesitate to come and do not ask if they will be paid in India. In think that well managed teams are more efficient than French ones. Another point is that Indian teams are generally younger than French ones; as a consequence in France they expect retirement whereas in India they are ambitious. The final result is not the same! Notion of paternalism has to be understood by French managers.

MANAGEMENT AND S TATUS

M anagemen t systems

The situation is when I was trying to teach the operators how to build one unit. Actually at the beginning they were very shy, because I was French maybe, they did not dare to ask me questions when they do not understand. That was a very critical step of the manufacturing of units and I wanted to be sure they understood very well. I really wanted them to ask questions, I did not continue to build the unit if they do not have any question and it made them laugh. There were afraid of disappointing their manager. You have to make them more confident, it is a daily work, every day you have to remind them “If you have any question I prefer you tell me rather than hiding the mistake”. It worked pretty well. Maybe Indian team are really more afraid of asking advice or help to the manager (afraid of disappointing him or to be fired) comparing with France where hierarchy is less present, there are less limits between their manager and them ; it can be more efficient if you can take directly decision with the boss. The relation with manager is hierarchical as I told before, based on fear and unequal power. Indians will not take the risk to by bass manager. I rewarded creation at work just speaking not with money and they liked to fell the best of the team. I continued. In France good efficiency and good atmosphere are two things possible at office. In India it is not common… efficiency = harshness. It was the recruitment of my first Indian manager, the production manager. It was the first time of my life I had to hire someone and this man lied on his CV. I did a big mistake recruiting him and I did not think it was something common in India to adapt a CV to a job offer to be hired more easily. As a consequence he was the first person I hired too. Finally, after this bad experience I decided to change the way I recruited Indian people. I chose cooptation in order to have a third person to contact in order to make my opinion on the candidate. I try to manage my team with cleat objectives. Considering the size of my company (SME) when I talk to operators I consider them as a team but when I talk to managers, each of them represent a department and have specific mission so it is more individualized. More generally speaking, I prefer team working and I thing it works well when there is a good manager.

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Weight of hierarchy Hierarchy is central within Indian society. Within companies relationships are ruled by hierarchy. India: Respect based on paternalism France: based on skills of the manager Relationship with manager due to high respect (hierarchy), inequality, fear and do not want to make manager lose face: No question No disagreement No opinion Never bypass hierarchy M anaging human contacts Indians can lie to be hired = cooptation. They can lie for everything and it is difficult to manage. Personal development to retain employees. The importance of networks very positive. Top managers are more abordable. Contact if often easy in India. M anaging a team Indian management system is not organized. Indians are neither multitasking nor autonomous.


EDHEC Master Thesis – Cross-cultural management in India I have two cases in my company. It is necessary for the operators to have a kind of harmony within the team but managers prefer to achieve their mission alone and it is quite hard to give them a team state of mind. In my opinion, India managers do not work in team very well because they are focused on their own mission without thinking about the project as a whole. They protect themselves from mistakes and do not want to be responsible for a possible failure. In France people are more focused on the global project advancement. I try to manage my company in the western way. I do not rely on hierarchical relations to manage people as Indian managers do. I have 26 years old and I consider that managers working in my company can bring a lot of things. Some of them have perfectly well understood this way of thinking and adapted themselves. We have meetings together and we share our points of view as equal even if I take the final decision. But there are old managers used to the Indian system who can’t adapt to this system. They never give their opinion, do not take any responsibility. It is hard to make them change. In India, bypassing hierarchy is not something common. They prefer waiting for the boss than taking a decision alone and make it approved by the boss later. I think the Indian management system is efficient where the French system is not. Within the company, the French management system is more efficient because timing and objectives are fixed clearly, operational processes advancement is monitored and checked. In India, it is not really organized but relations with other actors (suppliers, customers) are more flexible and communication goes faster. It can take much less time than in France if your supplier wants to help you. French are more efficient and multi-tasking. In India, workers do one task and it is hard to make the change, it takes a lot of time. It is due to the social class of our workers which is really low. They are not educated and they have been used to work without ever thinking in India. When I have a meeting with a provider, i think it is easier to meet the director, even in big Indian firms, than in France. They are fewer barriers; you can even get his phone number whereas in France it is impossible. But within companies it is different. I my company we work in open space as a consequence workers can come to talk to us easily; we have a good contact with them, relations are easy. In my opinion hierarchy is less important than what I knew in French companies where I have worked.

M anage in the French way establishing a relation of trust but Indians always need a boss. Good results Reward worker : Demonstrative way , To motivate, encourage them Indians are youngers, full of energy, ambitious, more involved, everything is possible. Do not expect too much to have very good surprises and impressive results. Things are evolving with young Indians and it depends to the field of activity too.

French are more rational and Indians are chaotic. They are very over proud too but it would seem that it is the same for French. When I start to work in Calcutta i met many problems due to cultural differences. When you are a foreigner and you work for an ONG you appear as a source of money. Indians tried to seduce me to get money. A feeling of suspicion comes and it is very hard to handle and to know how and when trust people. In France working relationships are based on confidence, it is not the case in India. At the very beginning I have been had by fraudulent NGO and I send them money. Today I am really aware of this and I have often good surprise. I think the best state of mind to adopt in India is to expect less in order to have good surprises. It allows to be more open-minded and to enjoy of what we call incredible India. What I value the most is team working. I think harmony comes with development of each individual, it can’t be separated. If a team member is well-adjusted from a personal and technical point of view, the group harmony will be kept. I think the main difference with France is the role played by affect. In France we know have hindsight and we feel free to talk sincerely. In India, the judgment of others is very important and it is hard to find authenticity. In my team the trust is stronger and stronger but it took 6 years. In France people are freer to talk to their manager, there are no all these rules of respect; we respect each other’s but keeping the freedom to communicate, to give his or her opinion and suggestions. Indians are afraid of this, there are on defensive, they do not want to lose their job because of their behavior. The relation is based on a lack of trust and authenticity. For instance I observe every day the difference between the older and new members of my team: the first feel free to express their ideas today whereas the others ask before talking and do not give their own opinion. It takes time to reach this objective. I think the French system of management is more efficient. I believe in corporatism and in India it is something impossible to establish; they always need a leader, a chief. In France and even in Africa, corporatism is something possible and very positive. In Calcutta, even with time, there is too much lack of autonomy in my team to establish this type of governance. Another point is the Indian management style: old managers are very very traditional whereas young Indians are able to take decisions, seek

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EDHEC Master Thesis – Cross-cultural management in India empowerment but given that the system is managed by old Indians they can’t develop these skills. The age is a problem but the origins are another problem to tackle in the same way. In India the turnover is important and we know that people can leave the company easily. We can’t retain them only with their earning. The best counterpart in my opinion is to give them more responsibilities and to train them to acquire more skills. I try to help them to develop individually but I think working in group is very important too to have a global coherence and efficiency. I try to balance these two aspects. I recruited many people when I arrived. But to hire 6 persons in India you need to meet 50 persons… It is hard to handle and very time consuming. The best way is to use networks to meet persons recommended by other. After hiring my teams I trained them. I spent a lot of hours, days with them. Empowerment is not something natural in India and it takes time to make them understand. The time spent to coach them is very important and if it is well done it gives results. The hierarchy is very present and the respect of the superior is much more important than in France. But it is different within IT companies and in industry. In IT and services in general, hierarchy is less central and castes barriers either. In Industry, the system of management is more traditional and you really feel the weight of hierarchy and castes, especially in factories. Indians are full of energy, emotive and very good negotiators. French are organized; don’t like adventure and centralist in their way of managing people. In India it is important to fix a framework and golden rules to respect. You have to explain it to your collaborators and to make them understands these rules have not to be broken. But, inside this fixed framework you have to be flexible otherwise it is impossible to go ahead. For instance Danone India sells fresh products which have to be maintained refrigerated. The main problem in India is power cut and products can’t be refrigerated in the same way than in Europe. You have to adapt your product to this local constraint. Hierarchy is central here; it is the boss who makes decisions. He has the authority; it is a kind of autocratic system. In France, decisions are built and made with the team. In Indian it is a real challenge to build an autonomous team to work and go ahead all together. But it is possible spending time to make them understand and because there are more and more very well educated young Indians who are very ambitious, much more than French graduates. This behavior at work is mainly due to the Indian education. Classes are charged and students are evaluated with multiple questions questionnaires only. Personal opinion, expression and team working are never valued. Besides, Indians do not practice sports and miss as a consequence one more opportunity to develop team spirit. In my opinion it is necessary to make them autonomous because the objective of Danone is to manage Danone India from France, without sending expatriates. I think results are quite positive even if it takes time, I need to force them, to explain how to communicates, how to disagree, and it is not something normal for them. Disagreements have to be expressed during meetings and not via indirect communication. I try to listen to them a lot to help them efficient to evolve. You see you have good results when they become to communicate without feeling obliged to use you as intermediary. Indians accept hierarchy and it comes from their education. They are less dissenting than French about hierarchy. French used to reconsider the hierarchical system systematically. It does not mean that Indians do not have a dissenting past but it is less influent than in France.

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It is hard to answer because I worked in big companies where they try to equilibrate things. There is a huge diversity of religions, of communities in India; as a consequence there is a tradition to equilibrate things. I have the same behavior with men and women in India. In France when we recruit young women we always wonder or even ask if she wants a baby. In India this question is never asked, we consider men and women have the same skills, maternity is something obvious and Indian are used to deal with absenteeism. Women are as efficient as men at the position of manager; what is important in India is the result and the diversity of means to reach it is not a problem. It is something you quickly understand as foreign manager in India. For instance in India when men like to type reports they become assistant whereas it is not yet the case in France! In India there are women who are CEO of being companies but it is not a reason to be in the headlines like in France, they are seen as good managers and their resulted are considered without differentiation.

Gender issues

Theory: India is a country with a huge diversity tradition to equilibrate thinks. In reality, men and women are traditionally unequal but not on the same aspects than in France.

There is sex inequality in India. There are few women managers. It reflects the status of women who do fewer studies and stay at home when they get married. At work I behaved in the same way with men and women, no problem… just difference of strength! Women are very rude, I do not know personally well one. I think it is a problem for men because in India they particularly do not like to receive orders from women, it can make them laugh.

Depends on the social class. In managerial position: Skills, babies, kind of work ok But earning, managers… as in France

France is still a male chauvinist country. In India, there are differences of earnings between men and women and women are more often in charge of children and husband’s parents for instance. But Indian government awakes and wants to change things. There are fewer taxes to pay for companies when hiring female rather than a male for the same position. As manager there is no special behavior to adopt with Indian women. When there are not married there are still like teenagers whereas after the wedding they are more subjected to men in general. It is true for non-qualified employees and not really the case for young graduates...

But things are evolving in India : the government encourage the education and the employment of girls

Maybe one thing which was hard was the fact of being a woman. When my husband and I have a meeting with suppliers I face two types of behaviors: the supplier shows an extreme respect for me because I am white or at the opposite, when I ask a question he answer in Hindi to my husband without looking at me! What I feel in such situation is really unpleasant. There is nothing to do and I know I would not have set up my company alone in India as a western woman.

For expatriates, depends on how they behave.

The conception is very different from French ‘one. Earnings are different, women can’t do the same work than men because of their strength and they leave work early in the evening because of security matters. After, men and women eat together; men do not feel especially superior. I feel inferiority when I have a meeting with a provider and he decides not to talk to but only to my husband. I do know if it is because I am a woman or I am white. Within my company or when I walk in the street I never have this feeling. In France within a team we do not care if members are men or women. In India, women are respected but not in the same way. Women can’t do lots of things and contact is not possible for instance. As women and manager in India I have never had particular problem because my team accepted that I am a foreigner and as a consequence, I have a different behavior. They know that for me body contact is important whereas they avoid it. They accept handshakes when foreigners visit us and pat in the back when I encourage them. In the factory in Tamil Nadu it is impossible to be a woman and to manager a team. It is a very traditional state. Even for an expatriate it is hard to handle. Indians are entrepreneurs, they like juggle with new ideas, they never say “no” or “it is impossible, there is always a solution, even if it is farfetched, even if it takes 6 months to implement, there is always something to do and it is something quite energizing.

DES ICION MAKING

It is necessary to give autonomy because teams are young and have often better skills to create than their manager. They have lots of ideas and if you give them enough space to propose solutions they will find ones. The manager is only here to give a framework. Indians do not feel free to disagree with their manager. It is necessary for foreign manager to know that. I have seen Indian teams implementing foolish things their manager asked without saying anything and it was a failure! If you do not ask their opinion clearly they will do stupidities because you asked them to do so. A good manager is a manager who is able to decode the state of mind of the team, to make them confident and at

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Decision making is the result of a structured process for French managers whereas Indians do not have this overview and decide one thing after the other. In can have consequences on quality.


EDHEC Master Thesis – Cross-cultural management in India ease with him and to give the team the space to disagree and give its opinion. Human resources management in India is very important; a manager is more a manager of people than a manager of production. India is a young country and young people are often overqualified and begin to work at 20. They have quickly a significant working experience and it is important to consider them as equal because they deserve it! Even assistant have MBA, as a consequence debates are often higher in term of thinking than in France. French people are more organized, they monitor projects. They take more time to decide but when they make a decision, they are quite sure it is the good one. In India, people decide very quickly without thinking about all the steps and they often forgot very important points. It can be a problem when Indian teams don’t understand the way of working with French manager. French manager ask many results…For Indian people the final result is important, they do not focus on each step of the production, they do not want to ask question when they don’t know. At the end, if the quality of the product is bad, they say it is not their fault and find a reason. Quality is one of the biggest problems. It depends a lot on their personal character, but it seems to be rare when they do more than what they were supposed to do. To my mind, they don't take sufficient initiative. I expected my employee to do more than what I asked them to do. I don't think that autonomy is a factor of motivation for them. They need to be motivated continuously, telling them that there doing good job. There is a hard work to do during the training to manage to make them confident enough with you so that they will show their mistake. They NEVER say when they disagree, there are generally not allowed to disagree with their manager point of view. My working experience in France is short but I think French people are never satisfied. It can be a problem but it is a quality too. Indeed, they always want to improve what they do and the consequence on quality and efficiency is quite positive. Indians do not seek to improve the way they do something; they are often satisfied of the current situation. I try every day to make them understand that it is what i expect from them. It works with some of them. I have to push them to take initiatives and forecast the future. It depends of the open minded orientation of Indian collaborators. The young generation is much more open minded than the older and can understand more easily what we expect from them when we manage in the western way. For managers who can adapt to my way of management it is highly valuable. A mutual trust exists between us. When they can’t adapt, this autonomy becomes a problem for them, it is highly stressful because they do not want to take any decision and when they make mistakes they hide it; it is necessary to monitor everything they do. Telling you have made a mistake is impossible for Indian. They want to protect themselves. In France it can be the same but people are proud of having responsibilities, as a consequence they have to bear consequences.

Indians are entrepreneurs and never think something is impossible. The Indian environment makes people creative because they always have to find solutions to juggle the unexpected. Indians do not take initiatives because they are not educated like this, it is not something valued in India. Teams never disagree: if you take a bad decision and they implement it, it is your fault. Training is required to make them change and a relation based on trust has to be established. Indians are young and overqualified it has to be taken into consideration. Results come with time. It is easier with young generations.

They have never spontaneous initiatives and they never try to find solution to improve a process or a situation. Yes and no, it depends on the person. I work in majority with non-educated people and it is very hard to manage them. If I let them do things as they feel, it is not organized, it takes more time and it is often a poor quality work. When they do a mistake in their job they hide it as longer as possible, consequences are a disaster for the production. When there is a problem with their earning they do not hesitate to come and to shout. No, autonomy does not exist if it is not encouraged by the manager. Every minute and it is what my team has against me. They think I give them too much autonomy; I want them to create their way of doing things without guide. From their point of view, having a manager means implementing its order without thinking or taking initiative. When they understand they can bring something more from their own thinking, when they begin to take initiative, they feel very proud and happy; they discover they have a real value-added. They have the feeling they behave with a lack of respect if they do it. They know that with me it is different, I want to know everything. I try to give them autonomy training them and developing empowerment within my teams. It works with ones and not with others. In all cases it takes more time than in France. Today, people I hired and trained are more autonomous. It means it works and the initial time investment worth.

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EDHEC Master Thesis – Cross-cultural management in India I encourage the sense of initiative. The first thing is to give the right to do mistakes otherwise it is impossible to create a creative and entrepreneurial environment. This is true everywhere, not only in India. I give them autonomy and they know why they have to do this or this. Very often we don’t know why we do things within companies and the simple fact of asking “why” a value-added in my mind is. I try not to value status quo but opinions. I want my teams to express and defend their opinion even if I decide at the end. In India they are not used to give their opinion until the ages of 20, it is not valued at all and it has a negative impact on creativity. When I give them autonomy I do not know if they feel proud but I know they understand why. One of my main challenges is to motivate the autonomy and the sense of initiative of my employees. I try to make my team evolve to encourage each member to be an actor. I changed my behavior in comparison with the time I began my mission in India: today, even if I know the solution, I let the manager find it by himself and implement it from the beginning to the end. It works very well with some of them and not all with others.

I have worked only for big companies and I have never had problem with Indian government because our political positioning was clear: we never gave backstitch. We get licenses from the Defense Ministry and they knew we would have preferred waiting rather than paying an extra. The strategy was to draw up and submit a complete file to authorities and to say that if any paper missed, we will come back and we won’t go to the back of the office to pay a backstitch. It worked well because we have always be clear with Indian authorities but maybe other expatriates will have another point of view about this subject according to their own experience.

KNOWLEDGE OF THE ENVIRONMENT

Governance

The first thing when doing business in India is to hire a lawyer.

Yes, the first thing when you set up a factory in India is to have a lawyer. Even if it is a democracy, you have to give backstitch to have licenses in order to respect your delays. Sometimes it is not useful but…

Depends on the size of the company and on the corporate policy : big companies = weight on government / small company = corruption

To get a normal service from government I had to pay back shish to the VAT Office. I did not want to get something illegal or extraordinary, just the normal procedure. It worked but I am not proud of that and I try to avoid this way of doing business. Unfortunately, I manage a SME as a consequence I do not have any political weight and I have to pay! India id the 5 th most corrupted country in the world, I have to deal with that.

Daily life long nego/corruption

When we receive parcel post from France we have to pay a backstitch to custom duties to be sure to get it in good condition. Indian governance and laws seem to be a mess but I think it is evolving. It becomes more and more organized and d efficient. The thing is that India is so huge that it is impossible to check everything that is why authority can sometimes be more flexible (it is an advantage) but that is why corruption can exist too. Corruption is present in India for each paper you need, for each authorization you have to give a backstitch. If you say no you can get what you want 1 year after instead of 2 months. Sometimes it is impossible to say no because you really need to go ahead. For instance we go to court and we won but to close the affair we have to pay, without any reason. I did not face Indian authorities in my job. I had some problems to get my visa but I shouted the good person and it worked. This kind of behavior is not natural for me and it did not work in all countries! I have problem every days. For instance when I built my plant the authorities said me the will remove an electrical pylon which was useless. Finally, several months after they discover this electrical line was not dead and provided electricity to a village. I have 3 contacts to solve this problem: the village, the industrial zone and the provider of electricity. I know that negotiations risk lasting several months… It is a real barrier.

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There is no pressure in India. If you want to go to the canteen and eat with a fork and a knife, it is up to you. If you eat with your hands, you will be closer to your Indian colleagues. You will perceive these things. Western managers who do not want to adapt to Indian behaviors are not considered in the same way than if they make an effort. Personally, I prefer adapt to the environment in which I am instead of seeking to rebuild my French environment in India. I do not hesitate to go to weddings when I am invited by a team member I am open minded and always want to adapt, to create a true relationship with people. Even when I leave a team I keep in touch with some members. In my opinion it is a normal behavior for a manager to be sometimes personally involved and I do not have any problem with this

Country of diversity, no pressure but if you want to be integrated observes and adapt. Behavior depends on the managers, personal. Adaptation without excess.

If you want to be accepted you can try to look like them, you show that you are not “Indian proof”! For instance wearing colored shirts. Food is spicy but you have to accept it, you can tell not spicy but it will be spicy! I did not eat with my hands! Respecting hierarchy is a rule in India. I supply Schneider and for them we are not equal, they are superiors. I do not want to respect this rule because my customer sometimes behaves with a lack of respect for my company and our work and I do not want to establish this kind of relation. Otherwise, they are no rules comparing with France. People spit out or belch in the street or within buildings. It is not a problem.

Etiquette

When i arrived in India i suffered from the fact of wearing clothes that covered my arms and my legs even when the weather was very warm. Todays it has become a habits but I miss France on this point. Within my company I am not seen as an Indian director by my employees because I help them to held packages or when something fall on the floor I take it… It is not what an Indian director used to do. I really pay attention to my behavior with Indian men outside the company because as i am white they think i am open to sex relations, even if i am married. It is necessary to totally avoid ambiguity. In France body contacts come easily whereas in India it would not go down well. Even with my husband, we never show affection signs in public. I am a sensitive person but in India it is considered as weakness to show feelings, it is better to become hardened. When I visit families in slums or Muslim i take care of having my arms and legs covered. It is a question of respect. When we have meeting we sit on the floor and the most difficult thing is that you have to hide your feet! There are many many rules in India. Leaving shoes before entering in a house, greeting older at first, eating with your hands… The best way to adapt is to observe Indians and to behave in the same way. They observe you too and sometimes they propose a spoon or something else to make you more confortable. I try not to pay too much attention to this. For instance in Japan there are expatriates who try to adapt too much and when they negotiate they do not ask anything to avoid upsetting Japanese! Behaving like this, you don’t do business anymore. When you are foreigner you are foreigner and can’t behave like local people. I am not totally French, not totally Japanese and people adapt. For instance I have a daughter aged 15 months old and it was necessary I show her to my team and we celebrate her first birthday all together, otherwise they would have felt offended! It is necessary to accept this!

Religion

The weight of religion is important; there are festivals something like every month. It is not really a problem because Indians know how to deal with diversity for a long time. For instance, pork is not served at the canteen, during Ramadan, working hours are adapted and more flexible for Muslim people. It is something normal and there is no pressure, it is great! Indians do not celebrate wars victories such as 8 Mai in France but Gods ‘birth. Religious festivals are accepted and respected by everyone. It is not the case in France where the Ramadan is not celebrated because it is considered as a catholic country. There is a lack of tolerance in France. In India big festivals are celebrated within companies too (Christmas, Diwali…).

Depends on the companies, two types : -

Being respectful in every situation even when facing with superstition for instance.

Religion is a part of daily life No religion at work

The orientation of the walls of shed depends on the orientation of gods, it is necessary to keep a place for puja in evidence and ceremony takes time every week. Every day they burn incense. I participated to improve the working atmosphere.

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EDHEC Master Thesis – Cross-cultural management in India There is a huge diversity of religions in India. For instance my employees want to do a Puja every Friday. I let them do. There are 35 festivals in India and company used to give 14 days-off to their employee. The most difficult thing is to choose the festivals because very often, all religions are represented within a company. I let them more or less days off according to the amount of work we have to do. I know if they are absent one day, they will come during the week-end when it will be needed. We do not allow religious ceremonies within our company. There is no Puja but we give day offs for festivals. We prefer to give value to production objectives giving extra money to our employee than to religious purposes. We pay more attention to religions than in France because it can create problems even in a team in which people are not so much religious oriented. We adapt to Muslim when needed, for the Ramadan for instance. But we do not do ceremonies at office. We organized a seminar with other members of Entrepreneurs de Monde and there was a small Puja but it was more for the cultural aspect than for religion purposes I do not really feel the weight of religion at work. When they work, people are not religious oriented. When there is a wedding I am often invited, it is surprising. I refuse politely in general because I want to protect my private sphere. If you are an expatriate it is accepted but if you try to become too Indian, it becomes harder to handle. Is it really a weight? I don’t know. Religion is very present in the daily life: bank holidays, festivals, pujas when we have a new machine or shed… It is a party of the daily life in India for me. I have to handle that. For instance when I worked in a pharmaceutical firm it was impossible to do a traditional puja with flowers and coconuts within white rooms. I had to fins solution: fake flowers… You have the choice, you can consider India as a country where everything is difficult or, at the contrary, where you can find extraordinary solutions, it boosts your creativity!

The only training i received was about mu security. I think training is not useful because I consider that only opened minded and volunteers managers have to be sent in India. In this context, they will adapt quite quickly to the Indian environment, anyway India won’t change! I was not prepared but very opened minded and I did not have a stereotyped view of Indians. A training program could help to warm, to avoid surprise. I had technical training and information about security. I think a pre-departure training can really help to be better prepared. A real time training is a really good idea. It already exists because when you meet French expatriates arriving in India, you know you can rely on them to coach you if you need it. For the repatriation training I have read that after 5 years abroad, you are not considered by HR as adaptable to the French market anymore. From this point of view repatriation training is needed.

TRAINING

I did not have any training but i think it could be very useful to deaden the cultural gap. Real-time training can be a real help to solve daily problem and be more efficient. About repatriation training I thing problem would be more about how to rebuild personal/private relationships than about professional adaptation. I did not have any training. I think it can be helpful. But I like discovering new things so it is was not a problem for me. But when I have French interns in Calcutta it is very hard for them to adapt. Weather is warm and context special, these factors make cultural gap sometimes unbearable. Real time training is a very good idea too, especially in private firm where expatriates are not in direct contact with local populations and can’t understand Indian behaviors and codes easily. After more than 3 years abroad and in India especially I think it is very hard to come back to France. Expatriates network is something very important when you live in India. It allows keeping contact with your home culture, to use your own codes. But there is a huge difference of conception with expatriates from private sectors and from NGOs.

Training specific to India does not exist. Pre departure training: lack of spontaneity, discovering by yourself is better but 2 or 3 points to be aware of can be good. Real time training: really useful, something which is done when exchanging with other expatriates or Indian friends. Repatriation training = more personal than professional.

No particular training before leaving. I think it is not useful because when you have too much information before your departure you pay too much attention to details when you arrive in the host country. For instance in Japan, I met impulsive French managers who were totally different with Japanese and not as efficient as they were in France. I think the best way to be efficient in a cross-cultural environment is to stay you.

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EDHEC Master Thesis – Cross-cultural management in India A real-time support is something more interesting even necessary. Concerning repatriation, I think expatriation do not have to last more than 3 years otherwise you are disconnected from the headquarters and it is not good. After 3 years spent abroad I think you do not need a particular training when you are repatriated. I did not do any training. For me it was something useless because I loved the fact of discovering and adapting myself to my new environment. It depends on the personality of each expatriates and I think a pre-departure training could be useful for lot of them. I received a cross cultural training in India and it was much more useful in my mind because I knew what India was more concretely. When I do not know how to behave I ask my Indian friends who have often a working experience in western countries and they understand quite well what I feel and what I do not understand. About repatriation training, I think it is useless because today you work with multicultural teams even within your headquarters. For me it was much more complicated to work with Americans when I was working in France than with Indians today! Before my first mission in India I has already do a 2 weeks internship there. It was a nice experience for me and I did not have a pessimistic view of the country or stereotypes. People who want to understand India do not focus only on poverty, bad smell and dirtiness. There are rats in Paris and it is not what we keep in mind when we visit the city!

No particular stereotype

I did not have any stereotypes before my departure.

S TEREOTYPES

India was not a choice, I had the opportunity and I was attracted by the mission. I did not know this country and when I arrived I knew I should adapt to a new environment, it would be different, without having a stereotype in mind I did not have stereotype but at the beginning i felt superior to Indian because i was French, white and they considered me with an extreme respect. After several years I understood that each culture has its own specificity and positive aspects that is why it is not a matter of inferior/superior, just a matter of difference. Not especially. I had stereotypes watching TV. But India is incredible and unpredictable. Life is totally different if you live in Chennai or in Delhi for instance. The better is to avoid having stereotypes in mind because the opposite often occurs!

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Cross-Cultural Management in India - Master Thesis

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