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IB Airtel Case Analysis B7

Bharti Airtel adopted an ethnocentric staffing framework in Africa, where headquarters made key decisions and subsidiaries implemented them. This allowed knowledge transfer to develop local talent but discouraged cultural empathy. Some advantages included buddy programs and activities to connect employees outside work. However, differences in communication styles and work-life preferences created barriers between Indian and African employees. The strategy of transferring employees from headquarters to leadership roles in Africa initially succeeded because roles were made appealing through career growth and mobility packages. Over 100 employees were transferred after early employees shared positive experiences. However, Africa proved more difficult than expected due to cultural challenges, communication issues, and stigma around Indian businessmen. High employee expectations and an inability to empower African employees ultimately

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164 views2 pages

IB Airtel Case Analysis B7

Bharti Airtel adopted an ethnocentric staffing framework in Africa, where headquarters made key decisions and subsidiaries implemented them. This allowed knowledge transfer to develop local talent but discouraged cultural empathy. Some advantages included buddy programs and activities to connect employees outside work. However, differences in communication styles and work-life preferences created barriers between Indian and African employees. The strategy of transferring employees from headquarters to leadership roles in Africa initially succeeded because roles were made appealing through career growth and mobility packages. Over 100 employees were transferred after early employees shared positive experiences. However, Africa proved more difficult than expected due to cultural challenges, communication issues, and stigma around Indian businessmen. High employee expectations and an inability to empower African employees ultimately

Uploaded by

Vikas J
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bharati Airtel in Africa

Submitted by: Section: B Group No: 7


1) Outline the staffing policy/ framework adopted by Bharti Airtel in Africa. What are
the advantages and disadvantages of adopting this framework?
Ans: Referring the concepts used in International Business, Ethnocentric Framework is the
frame work used by Bharti Airtel in Africa. The ethnocentric framework signifies the belief
that the management principles and business practices used by headquarters are superior to
those used in other countries. Subsidiaries implement the key decisions taken up by the
Headquarters.
The advantages and dis advantages are stated below:
Advantages
 The Company transferred their knowledge to Africans in order to develop local talent
and incorporated people development as an important component of performance
appraisals
 Bharti Airtel came up with buddy programs in order to create partnership between them.
 Transfers principles and practices of the company’s culture
 The company’s HR team organised activities for people to get to know each other
outside the work place
Disadvantages
 Discourages cultural empathies: Bharti’s Indian employee’s in Africa, prefer to speak
in Hindi among themselves, shutting the African colleagues out of the communication
 Fans dissent and demotivation among locals: It is mentioned in the case that African
employees complained the fact that Indian colleagues waking them early in the morning
and not being sensitive about the differences in time zone
 African employees did not have the power of decision making in the company
2) Did the strategy of transferring people from Airtel and Zain headquarters work
succeed in Africa? Justify your answer.
The strategy of transferring people from Airtel and Zain headquarter did succeed in Africa.
How the company managed to do that is given below:
 Indians aspired of looking for job in places like America or Europe rather than continent
such as Africa. So they had to offer mobility related packages to pull them on board
 The roles which were offered were made meatier and aspirational in order to make the
move to Africa worthwhile for people
 In order to encourage the employees, a group of 8 employees were sent to Africa and
then they their experience which was positive was made to share in the company
intranet. This resulted in more than 100 employees moving to Africa
 They also implemented buddy programmes between Indian and African employees
3) What are the reasons for failure of foreign employees in Africa?
Africa proved to be a much more difficult than what the company has expected. The reasons
for failure of foreign employees are-
1. Employee expectations: - Indian wanted to grow and thus wanted to shift to developed
economies of USA and Europe. Placement in Africa was below their expectation in
terms of career growth.
2. Cultural challenges: -
a. Leadership style- Expats from France, Lebanon and Jordan to run African
business which take consultants from African employees. Since the employees
were not empowered, their moral got down. Leaders were not able to get needed
input and working style
b. Working style- Indians were used to working for long hours and multitasking.
Africans, like Europeans preferred balance in work life and focus on single task.
This created barriers between the two set of employees and lead to false pre-
conceived notion. Further generalization of all people based on few lower the
motivation levels.
3. Communication and Language- Indian employees preferred to communicate with each
other in local language which unconsciously shutted out their African counterparts.
Communication styles of Indian leaders were direct, while Africans were used to
emotional approach. If the Africans did not feel connected to their work, numbers won’t
help.
4. Traditional stigma- Indian businessmen living in East Africa carried carried the image
of being poor paymasters. Many Africans feared that they will lose their salary. This
alienated them and they felt that Indians would conquer instead of collaborate.

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