Comparative MANAGEMENT
STYLES OF INDIA AND CHINA
CHINDIA
China + India= Chindia (Title of the book written by Pete
Engardio
Main causes behind economic gap are:
Structure of govt.
Business culture
Similarities also like high economic growth rates and own huge
labor markets.
COMPARISON BETWEEN INDIAN AND
CHINIES MANGEMENT STYLE
Management Style
Management styles are group of principles that any firm can
follow as a part of their management policy to garner maximum
output from its employees and grow collectively as a team.
Every management style is unique and some people may respond
positively to a management style whereas some may not perform
effectively for the same management style.
BUSINESS CULTURE
CHINA
INDIA
Businessmen emphasize on
their "relations" with other
businessmen and govt.
officials. Their business
depends on the strength of
their "relations" with these
powerful people.
The technology, research
and development
professionals and
business managers have
more avenues to success .
In India, "relations" are
not the only reason for
success.
DECISION MAKING
CHINA
Hierarchy
is followed.
The decision is made only
by the key people at the
top of the organization.
Decisions may take a long
time, as they require
careful review and
consideration.
INDIA
Team decision is
followed.
Decisions are reached by
the person with the most
authority.
Delays are to be expected,
especially when dealing
with the government.
MANAGEMENT MATURITY
CHINA
Shortage of middle- and
senior
managers
with
experience managing client
expectations, leading large
teams, and communicating
with customers.
INDIA
Strong project
management skills and
continues to invest in
initiatives to strengthen
middle management
capabilities.
TRANSPARENCY
CHINA
INDIA
Outsourcers in India
tend to promote
transparency with
customers, in as much as
true openness is ever a
part of an outsourcing
deal.
Outsourcers in China are
not transparent, which
makes business operation
difficult.
SIGNING ON THE DOTTED LINE
CHINA
China only recently moved
away from trading
agreement forms to more
mature contracting
capabilities.
INDIA
India has a strong
tradition of private
contracting and
enforcement, similar to
leading global providers
SUPPLIER BASE
CHINA
INDIA
Market is fragmented and
dominated by small to midsize suppliers.
Robust and competitive
provider legion of Indianowned , publicly held
suppliers and large local
operations of global
providers.
DIFFERENCES IN ECONOMIC
GROWTH PATTERNS
CHINA
Depends on state-owned
enterprises and banks .
Strong intervention from
the government.
INDIA
Small and medium-sized
private enterprises are
the main life stream of
Indian economy.
Very less intervention of
govt.
EASE OF BUSINESS
CHINA
INDIA
Keep the communist party
happy all the
administrative and legal
hassles can be taken care
of, even during legal cases.
India, slow moving
democracy, normally
takes a higher moral
ground and allows the
law to take its own
course, detrimental to
business from
LEGAL SYSTEM
CHINA
Derived from Soviet and
continental legal
principles; It is complex,
and inconsistently
enforced.
INDIA
For Western customers,
India's legal system is
familiar-a British-based
common law system with
an independent judiciary.
WAGE INFLATION
CHINA
China's wage inflation has
been low thus far.
INDIA
India continues to
experience strong upward
pressure on salaries
LABOR FORCE
CHINA
China boasts 813.5 million
workers and 4.3 percent
unemployment
INDIA
India's 467 million and
10.7 percent
unemployment.
CURRENCY RISK
CHINA
Strong, but does not float
despite increasing pressure.
INDIA
A strong India rupee stills
erodes the margins of
Indian businessman.
INFRASTRUCTURE
CHINA
Major investments in a
modern transportation
system, power supply,
telecommunications, and
high-speed broadband.
INDIA
India's infrastructure is
weak and has not kept
pace with economic
growth.
CONCLUSION
So, after looking upon these differences of management
approach, we can conclude that India is going to overtake
Chinese economy in near future if it improves some sector
like infrastructure, legal system and structure of govt.
K
N
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A
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H
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