Comparative management styles of india and china mas trinity

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

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.

CHINA INDIA

DECISION MAKING

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.

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.

CHINA INDIA

MANAGEMENT MATURITY

Shortage of middle- and senior managers with experience managing client expectations, leading large teams, and communicating with customers.

Strong project management skills and continues to invest in initiatives to strengthen middle management capabilities.

CHINA INDIA

TRANSPARENCY

Outsourcers in China are not transparent, which makes business operation difficult.

Outsourcers in India tend to promote transparency with customers, in as much as true openness is ever a part of an outsourcing deal.

CHINA INDIA

SIGNING ON THE DOTTED LINE

China only recently moved away from trading agreement forms to more mature contracting capabilities.

India has a strong tradition of private contracting and enforcement, similar to leading global providers

CHINA INDIA

SUPPLIER BASE

Market is fragmented and dominated by small to mid-size suppliers.

Robust and competitive provider legion of Indian-owned , publicly held suppliers and large local operations of global providers.

CHINA INDIA

DIFFERENCES IN ECONOMIC GROWTH PATTERNS

Depends on state-owned enterprises and banks .

Strong intervention from the government.

Small and medium-sized private enterprises are the main life stream of Indian economy.

Very less intervention of govt.

CHINA INDIA

EASE OF BUSINESS

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

CHINA INDIA

LEGAL SYSTEM

Derived from Soviet and continental legal principles; It is complex, and inconsistently enforced.

For Western customers, India's legal system is familiar-a British-based common law system with an independent judiciary.

CHINA INDIA

WAGE INFLATION

China's wage inflation has been low thus far.

India continues to experience strong upward pressure on salaries

CHINA INDIA

LABOR FORCE

China boasts 813.5 million workers and 4.3 percent unemployment

India's 467 million and 10.7 percent unemployment.

CHINA INDIA

CURRENCY RISK

Strong, but does not float despite increasing pressure.

A strong India rupee stills erodes the margins of Indian businessman.

CHINA INDIA

INFRASTRUCTURE

Major investments in a modern transportation system, power supply, telecommunications, and high-speed broadband.

India's infrastructure is weak and has not kept pace with economic growth.

CHINA INDIA

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.

THANK YOU..!

SUBMITTED BY:

MAYANK KUMAR MBA 1ST YEAR (A)

MAHESH SHERKHANE

HESHENA SEMA

LAV KUMAR

UDAY DOYAL