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
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