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The Potential of India:Fact or Fallacy


 Paul Herbig

Executive Summary

India which has a population of more than 900 million people and expects to cross the 1 billion mark by the end of the century has a rich cultural and historical past dating back to 2500 BC to the civilizations of Harrapa and Mohenjodaro. The country is home to many cultures ,  many religions and a countless number of customs. The country is divided into 26 odd states and 6 union territories . Different languages are spoken in each of these states and even within each state it is not uncommon to find four to five languages being spoken. The lives of the Indians are guided by their religion and customs . The society is caste based though it may not be very prominent in the urban areas but caste is given due regard in certain important matters . Indians are also prove to superstition and supernatural . The majority of the population is Hindus followed by Muslims , Sikhs , Christians , Zoroastrians (Parsees) and Buddhists .  Though Hindi is the national language yet the commercial language especially in the private sector is English. 
The fact that India was ruled by the British who came as traders , it is understandable that the country chose a socialist closed economy after it gained its independence . However a series of reforms that started in the late eighties opened the country to foreign investment .
The paper aims to isolate some of the cultural aspects of the country and its implications on the  operating strategies of the multinationals that decide to establish business in India. Some of the cultural tips  offered are ; 1) develop an awareness of how you are perceived 2) understand the role of religion and family 3)build personal relationships 4) and realize the importance of hierarchy in the Indian work ethic. And the paper concludes with the final recommendation that it can be very profitable to set up a base in  India , cultural challenges not withstanding .


Introduction

	India , one of the oldest civilizations of the world  has a population of 900 million and  is home to  a diverse set of cultures ,  religions and regions speaking nearly 15 recognized languages and over 1000 dialects. The majority of the population is Hindu (80% approx) followed by Muslims (11%) and the rest are Christians , Sikhs , Jains , Zoroastrians and Buddhists. After getting freedom from British the Indian government adopted a somewhat socialist economic policy with restrictions on foreign investments and imports. However the changing world economic scenario and also an economic crunch in the late eighties forced the government to adopt a more liberal attitude and open up the economy. This has led to the emergence of multinationals on the Indian scene . And given the size of the Indian market most well known foreign companies have decided to set up shop in India. Though some foreign companies were operating in India before also but they worked under more restrictions. The business environment was governed by the ‘licence raj’. Having broken away from a socialist based market policy and moving towards a free market system with more stress on private enterprise it is but natural that there will still be some hangovers of the past. This obviously will pose challenges for the foreign companies who decide to move into India. Culture and  religion play an important part in the day to day lives  of the Indians ans thus making  it is essential for the MNCs to understand this dimension and tailor their company culture accordingly in order to get the most out of the hardworking yet sometimes unmotivated Indian workforce.
	The purpose of this paper is to pinpoint some of the cultural challenges that the multinationals and expatriates working in India are likely to face and try to give some cultural tips on how best to conduct themselves in the Indian business environment . Individualistic nature of the work force  , caste based society , bureaucratic red tape , diverse cultures , different  religions and languages are some of the things  any foreign business must consider before venturing into India as these can have very important implications on their operating strategy.   
 Why India
	Some of the reasons for the multinationals to be interested in India are ; 1) a 500 million consuming class 2) a 350 million strong middle class 3) availability of cheap skilled and semi-skilled labor 4) proximity to other Asian markets 5) existence of the third largest pool of professionals like scientists and software engineers 6) India’s political stability and commitment towards democracy.  

Challenges
	In India making a contact is fairly straight forward , perhaps a British influence. One can write directly to a business though having referrals and introduction can lend more credibility. For a small company in the process of establishing itself it may require more time investment. The response may be non-committal if they don’t know you but a personal visit helps in building trust.
	Relationships are another important part of doing business in India , where the right connection is the key to getting things done . So to build a network of connections especially in the bureaucratic maze must be the foremost task on the agenda of any MNC venturing into India.   Regional  and religious biases often interfere with negotiations and establishing trust in small companies. Over time , it is relatively easy to establish a strong relationship . Building a social and family relationships goes far in solidifying a long term relationship .
Indians are status conscious and it is proper to send a senior person  to conduct business talk. 	Those who are senior in age and position receive a great deal of respect. This is perhaps why Japanese fare better than the British in doing business in India - they send higher powered trade delegations to India(Martin Croft & Julia Irvine).  It is customary of the young people to touch the feet of the elder people to get their blessings. The mode of addressing is more formal than in the West. Typically last names are used along with Mr., Mrs., or title such as Doctor. 	Although workplace culture is more formal , Indians are generally more relaxed about time than their western counterparts particularly in government and family-owned businesses. Competition is more evident in private businesses .
However some of the most challenging tasks in doing business in India  before any multinational can be :
	1. Lack of team spirit: Though a great deal of stress is laid on unity and team work in the Indian value systems yet it turns out to be the most individualistic society. This is perhaps more because of circumstance than  choice . Given the growing population there are always huge many competing for too few. Be it a simple admission in a prestigious kindergarten to the premier business school the Indians are made to learn to fight it out. For example , 2500 four year-olds compete for 72 seats in the kindergarten class of Delhi’s prestigious Vasant valley School or nearly 25000 students compete for 180 seats in the MBA class at the Indian Institute of management , Ahmedabad, India’s equivalent to Harvard Business School. Growing up under this pressure , by the time they enter the workforce they are highly individualistic , with survival anxieties and the desire to somehow stay  ahead of others . If they can’t win why should others ? This ‘lose -lose’ attitude permeates every aspect of their behavior and  naturally precipitates into the work culture once these people join the work force (Anil Sachdev 15 ).
	According to Monir Tayeb , ‘the collectivism does not carry into the organizational work culture . He explains it in terms of the nature and size of the in groups . In India , the in-group includes parents , children and members of the expended family like grand parents , uncles , aunts , cousins , close friends and relatives. The workplace does not seem to have any place in the Indian in-groups . It is not unusual to find the workers put the interest of the in-group above that of the out-group’ (Monir Tayeb , 435-436  ). Perhaps this fact is also reflected in the nepotism and regionalism prevalent in India. A head of any selection committee is most likely to favor member of his in-group or a person of his own region for any vacant post. 
	2.Caste system: Caste system based on birth is  prevalent in the dominant Hindu society and divides them into four categories . ‘Brahmins’(Scholars) are at the top followed by ‘Khstriyas’(warriors) and then ‘Vysyas’(merchants) and lastly the ‘Shudras’ (low castes or the workers). Though caste system is not prevalent  in the metropolitan cities but it is exists  in the rural areas. And according to the government policies to promote the growth of these areas the manufacturing facilities are usually located in these areas . Given the caste system followed in these areas a foreign business can face challenges of a nature they haven’t faced before . A high caste Brahmin will resist working with a low caste even though they may be at the same skill level. Perhaps it can be argued that it is this thousands of years old tradition that has led to the development of excessively hierarchical levels in the workplace for it is not uncommon to find ‘12-15  levels of supervision between the production worker and the chairman’(Anil Sachdev).
	Perhaps another fallout of this caste system is that it has led to the practice of ‘dignity of labor’. Since to uplift these low castes the government has reserved certain jobs which need no or minimum qualifications and these low castes invariably find themselves working as ‘peons’. The responsibilities include carrying files from one desk to another , inter department mail , going to the post office , fetching tea from the street side tea stall etc. As such these jobs are considered degrading . If a peon is absent from work most of this activity is brought to a stand still unless the boss needs things urgent. A supervisor won’t usually  undertake the job of his subordinates as it is considered below the  dignity of his rank. In government undertakings it is not very uncommon to see the lowest rank officials carry out some household chores for the superiors. Any person whenever he gets a chance to assert his/her  authority over the juniors won’t  let it go.
		3.Job Safety: Another factor that the multinationals may want to consider is  the regulations regarding firing people. In India it is very difficult to fire an employee . The employee is protected by the state law and  also the trade union supports  his cause. This can perhaps be explained by the fact that unlike in the west or typically US , the instance of both partners working is rare and also children have to be  provided for till they complete their academic pursuits and are able to earn. Also the male earner of the family has the responsibility of taking care of his old parents as their is no concept of foster homes or adult care homes. With these things in view firing an individual would mean depriving the entire family of income and exposing them to economic and emotional hardships.
	For  any  Indian employee job promotion and salary and not job security are the  major worries. Switching jobs is also not a common practice in India . This can partly be due to the values of being loyal to a company and also because of the importance given to relationships that are developed at the workplace with superiors and colleagues. ‘Organizational Downsizing’ is not a very common term in India as it is considered very unethical and may be attributed to management inefficiency.
	As a result of these strict exit policies companies need to be very careful while hiring staff and take full advantage of automation . But this policy has the disadvantage of invoking the wrath of the political and public administration . 
	4.Unions: Almost all the companies have trade unions which in turn have political affiliations. Negotiations of wages , bonuses and employment conditions between the  management and the trade unions is an established practice . It is also not uncommon to see more than one trade union especially in large industrial establishments which may sometimes give rise to inter-union rivalry , resulting in detrimental effects on the company. 
	There are various acts of Parliament which secure minimum wages , regulation of payment of wages , working condition etc . Generally these industrial relation legislation are  pro worker and aim  at protecting a worker’s  employment and general well being . The regulations are such that it is virtually impossible for the management to sack a worker or reduce his or her wage even if she/he  has seriously breached the terms of  contract . The management and the union do not share a relationship of mutual trust.
	To avoid this problem a multinational company may avoid low tech , labor intensive industries. But  here again it may run into trouble with the government which is struggling to keep the unemployment rate down . It may also cause public resentment by limiting employment opportunities in the host country.
	Regions and States: India has about 26 states and six union territories and each of these states has a different language , a different culture and even varied customs within the states. It is hard to make any assumptions based on the cultural experience gained in  any one particular state.
	Hindi though the  national language does not have much of a regard in the southern and eastern part of India . People in these areas generally give second preference to  English language rather than Hindi. There is a strong regional sentiment among a major section of the population even though their national patriotism is unquestionable. 
	While looking to set up operations in India the foreign companies need to give due consideration to the culture and other socio-political aspects of the state in which they have to operate . Many of the states are politically unstable and communally sensitive. A recent example is the riots that took place after somebody  put a dirty pair of shoes on the statue of a deceased low caste leader , Dr. Ambedkar . The riot left scores wounded and a number of shops burnt. Also in terms of development of infrastructure facilities their is no uniformity. The  trade laws can vary from the state to state.    
	4.Religion: India is a country with diverse cultures and religions .Different languages and different customs exist in the 26 odd states and 6 union territories .  The majority of Indians (80%)  follow Hinduism which is why India is also referred to as ‘Hindustan’ meaning the land of the Hindus . Based on its long history and religious background India is also called ‘Bharat’.  Religion plays an important part in the lives of the Indians. The most important occasions ,  from a marriage ceremony to a ground breaking  ceremony , are preceded by sacred  recitations from the ‘Bhagwad Gita’.  Almost all the homes of the Hindus have small statues of gods in their homes to which offerings are made every morning .Keeping a picture of the gods or a small idol of a god in  the office premises is not uncommon . Before beginning the days  work the individual lights the incense and puts some money in front of the god as a humble offering and asks for blessings before he begins the days work. This is a common practice performed by all from a cab driver who has a small picture of a god mounted on the dash board to the owner of a retail  establishment. Given the number of festivals and religious holidays celebrated in different parts of the country the country may well be called the country of ‘festivals’. 
	In addition to New Years day , Republic day (Jan 26) , Independence day ( Aug 15) , Mahatma Gandhi’s birthday ( Oct 2) and Christmas , there are about 49 national and regional holidays . Since most of these are based on lunar or religious calender their occurrences vary from year to year. While not all holidays are observed nationally , a certain number are declared as ‘central government’ holidays at the beginning of each year and others may be observed by a particular religious community. Apart from this the states also have their own list of holidays.
	The foreign company operating in India must incorporate these dates into their calender and also try to maintain a diverse staff so that work may be carried on without disruption even if the employees celebrating their festival do not come to work. 
	It must be understood that these holidays are paid . And apart from this an Indian employee is entitled to take a paid leave of four to six weeks per year which is besides the casual and sick leave he can take. Women can be given a maternity leave of up to three to four months. Also in India a six day week is observed with Saturday being a half-day in some public offices. 
	5. Superstition : Apart from religion the Indians’ lives are guided by superstition . It is a country of superstitions where belief in supernatural and  witchcraft still exists . These  superstitions   may well exist in the businesses as well . For example the first deal of the day called the ‘boni’ is considered very important for the entire days business and any merchant will want to make the deal even if it may not be profitable. The Indians are also very superstitious about the timing of the events . Certain important events like marriages or  filming the first shot of  a movie  must be performed at a specific time called ‘muhurat’ which is considered opportune   and the ‘time’  is worked out by combining  astrological computations with the birth stars of the parties involved .This task is performed by the religious priests. If the ‘muharat’ is delayed or omitted by any chance it is considered a bad omen and may sometimes lead to postponing the marriage by a year if no other ‘muharat’ is in sight . According to a recent press release in Times of India daily , astrological compulsions caused postponement of the much-awaited expansion of the Union council of ministers . The event was postponed to ‘Thursday when it will be ‘navami,’  the 9th day of the Hindu calender and the ‘ashtami’ considered inauspicious by the Tamils , will have passed’. The postponement was in deference to the wishes of some members of the Tamil Maanila Congress - a party that belongs to the Indian State of Tamil Nadu. Another example of the Indian superstition is the ill timing of the ‘sneeze’. It is a common belief among Indians that a  fresh task or a beginning of a journey if greeted by somebody’s ‘sneeze’ ( as long as it is within the hearing range ) may jeopardize the task or render the journey unsafe .     
	6. Language : The diversity of India is also illustrated by its linguistic pattern . There are almost 15 languages recognized by the constitution and about 1000 dialects. In some states three or more languages are spoken along with a vast number of dialects .  Some of these languages are Hindi , Assamese , Bengali , Gujrathi , Kashmiri , Punjabi , Urdu , Tamil , Telegu , Malayalam and Kannada . The linguistic diversity is also illustrated by the 2150 daily newspapers that are published in 92 different languages.
	Though Hindi is the official language it is only spoken by the 30% of the population and has failed to gain a widespread acceptance especially in the south. Most of the colleges and institutions of higher learning have English as the medium of instruction , it is widely understood and continues to be the language of commerce . As such assisstance with translators and interpretors will not be necessary ( Thomas and Phillip)  
	6.Politics: This dimension of the Indian society affects all the aspects of life. Whether it is a local or a foreign company  political connections are a must for any company that wants to do business in India and succeed . Having these connections can mean the difference between getting a contract , a license or any project approved and not getting them . This eventually exposes  any foreign business to the ethical dilemma of kickbacks and a possible contradiction with its own policies back home . 
	Rapid changes in regulations and ruling parties over the past decade has led businesses in uncertain direction. It is quite possible to have a reverse set of policies in a matter of days and thus making future planning difficult. This results in “getting the job done” attitude by managers. To get the job done the managers frequently engage in bribes with the government officials either directly or through some middle men.
	Since such a practice is not very common in the west especially the US , an foreign manager would normally refrain from indulging in kick -backs. But for administrative reasons and to avoid the bureaucratic frustrations they might be forced to make these moral and ethical  compromises.
  	At the  lower the level of population their is a  greater  expectation that a bribe is necessary to get the task done. Though the chain begins at the lowest level but it ends at the highest level . Belief in the effectiveness of the bribe is inherent among most Indians. They are accustomed to such practices and accomplish tasks through traditional methods such as personal contacts , bribery and communities rather than organized impersonal procedures. The Indians are familiar with the term ‘nexus’ which describes the clandestine relationship between the politicians , bureaucrats and the criminals. 
	7. Political instability : The recent political upheavals and the communal riots in India have amply demonstrated the shaky structure of the government and how prone it is to the ‘unpredictable swings and wide ranging oscillations’. The growing strength of the left wing religious parties like BJP ( Bhartiya Janata Party) , VHP , Shiv sena and the communal sentiment they promote can be a cause for concern for the multinationals staking their interests in India. The spate of bomb explosions in Bombay , the commercial capital of India right after the demolition of the Babri mosque have put the secular credentials of the country in question and created reservations among the companies wishing to do business in India.
	The most recent stalemate caused by Congress parties withdrawal of support to the 13 party coalition government in Delhi which left the fate of the ‘Indian budget’ undecided has created much confusion among the industry.
	Slogans like , “We want computer chips - not potato chips” , promoted by the BJP and VHP , are likely to create reservations among the foreign companies and especially with the  KFC and the Enron incidents fresh in minds . 
	8. Bureaucratic red tape : It can be a major hurdle for any foreign business venturing into India. Lot of paper work , cumbersome procedures of applications are required which often move between various administrative levels before approvals can be given. This leaves room for corruption and bribery and also requires well placed confections . It is important to develop contacts with a core group of influential people before starting shop.
	Because of the close relationships they built with the Indian bureaucrats , the Japanese were able to elbow aside GM and Italy’s Fiat , both of whom had a limited collaboration with two different Indian companies at one time.
	But the consolation is that after the reform process which began in 1990's most of the bureaucratic red tape has been eliminated especially in the fields of industry and one of the most important steps in this direction has been the removal of the ‘license raj’-the applications regarding industrial licences. And the extent to which this has been effective can be exemplified by the experience of Motorola’s paging products group while moving an entire assembly line from Singapore to the Indian city of Bangalore. According to Dinesh Raghvan ‘ we received great amount of cooperation from the customs , civil aviation , airport authorities and freight forwarders to clear 40 tons of assembly line equipment out of the plane and have it installed in less than eight hours.’
	However , it is still important for a company that seriously considers India as a potential market and production base should invest heavily in manpower to build relationships with government functionaries to scout out the best potential partners to facilitate a better business environment.
	9. Inadequate intellectual  property protection: Multinationals in India may also be faced with the insecurity of the intellectual property rights ( trademarks , patents , copyrights and designs ), although legislation to check the abuse does exist but these are seldom implemented. And if complaints are filed in courts against the violators they take unusually long time to process. 
	‘As far as trademarks are concerned in the US the right of trademark is based on the use of the trademark and belongs to the person who is the first to use the trademark. In India , the trademark generally goes to the person who is the first to register it. Therefore expeditious and proper registration is the only effective way to protect trademark rights in India. As far possible a foreign company should try to ensure that there are no deficiencies in its trademark registration’ (Jain, p186, 1993).
	However , as far as attacking a competitors product directly is concerned Indian advertising regulations do not offer this liberty .    

Cultural tips
India is a complex country, and those arriving there to do business will find there are no simple
recipes for success. Providing foreign managers to  India with the following tips will give them an idea of the things they need to keep in mind. This information may also help employers recognize the need for a deeper understanding of Indian culture and business norms. 
	1.Broadening  horizons : When working in a foreign environment, there is a delicate balance between maintaining credibility with the locally-hired staff and corporate colleagues, and meeting the expectations of the home based  headquarters. This situation is exacerbated by the fact that at the same time,  new phenomena is observed   and dealing with people who interact differently. It is important to try to understand what is reasonable and feasible in India, rather than expecting time lines, efficiency and other things that might be taken for granted in the ‘home’ country. 
	2.Develop an awareness of how you are perceived :Be conscious of how to come across  Indians. The slightest hint of superiority or disrespect from your  side will put them off. What Americans consider mere assertiveness and directness Indians may misinterpret as aggressiveness.  Indians don’t like being treated as  inferiors , though they have respect for authority. Self-respect is their most cherished value.
 Indians, especially those who are less literate, also sometimes tend to  read the  body language, feelings and attitudes more accurately than can be imagined. 
	
	3.Getting  to know them : It is recommended to take  the time to know Indians as individuals before expecting to have a sincere and trusting professional relationship with them. Do not dismiss personal talk and invitations to an Indian’s home as something "apart from business." Such actions are the Indian’s way of evaluating , seeing  as a whole person in different environments, and determining  sincerity and integrity before they decide to do business with the opposite party. "Guests" are very important in India .They usually invite business partners to their homes and this is supposed to strengthen the business relation further and also shows the amount of trust they place on the partner . Gifts are usually exchanged . 
	4. Sensitivity  to cultural differences : Although the personal and the professional personae are typically kept separate in the western and typically US business culture, they are intricately intertwined in India, and many Indians find it difficult to separate them. When you criticize someone’s ideas or something they have worked on, be aware they may feel you have personally attacked or rejected them. It helps to reaffirm the person before critiquing their idea or product. 
	5. Understand the role of the family : The family is especially important to Indians, and it is legitimate to let family take priority over  work, when they clash. Talking about and showing concern for your own family will make you a more respected person in the eyes of many Indians. 
	6.Adapt to the pace of life : Many Indians may have a different sense of time and urgency than you. In the workplace, double-check on important things way before the deadline to avoid last-minute disappointments. This is especially important when dealing with people who have come from a hierarchical  environment, since they will expect their supervisors to shoulder more of the responsibility and "monitoring" function. Educated or Westernized Indians, and those who have worked for multinationals have learned to monitor themselves, and meet their deadlines responsibly. 
	7. Dig for a deeper understanding :  Sometimes, you may feel you are not getting a "straight answer" from an Indian colleague. There may be several reasons why this is happening. One reason is that situations are more complicated in India than in a Western country, and may warrant a more complicated response.  Another reason is that the Indian may not want to give you bad news, and worries about your reaction. Create a safe and comfortable environment in which people can share mistakes without fear of repercussion. 
Sometimes, in a desire to please, the person may be conveying what they hope they can do. They
may say "I will try," rather than disappoint you by saying "no" or by failing to meet your expected
deadline. They genuinely do mean to try, so keep your expectations and deadlines realistic. If you
push too hard to get commitments for a stricter deadline, you may find that these commitments go unmet. Make it known that it is okay to say "no," and that you value that more than the inability to  meet a commitment. 
The lack of a straight answer may also just be the individual’s verbose style. Learn how to help
such a person come to the point. Summarize and ask "So what you are trying to say is?" or "Tell
me exactly what you would like to do about this" or "The point you want me to get is?" 
	8.Understand the meaning of silence : Silence during a meeting rarely means consent. Indians may refrain from contradicting you out of respect for you and your seniority, but that does not mean you have convinced them. It may also may be that only the senior-most person in their group will speak, and the others will maintain silence, seemingly agreeing with that person. 
When dealing with Westernized Indians, however, their assertiveness and directness may surprise you. Do not take it personally. Often, they are simply testing you. When you find them in that mode, it is best to make sure you have heard their real concern or issue, and then be respectfully  candid yourself, and politely firm, if necessary. Indians are often concerned about Americans’ perceived superficiality. They need to experience that you will always be honest, yet polite, with them. 
	9.Respect differences in lifestyles: Indians are more formal at workplace and are  not accustomed to humor in the workplace. Also, do not expect them to enjoy or spend leisure time in the same way as you. Many traditional Indians may be teetotalers and/or vegetarians. Respect their eating habits and other needs. Westernized Indians, however, may be more outgoing, and may socialize - and drink - more than you are used to! 
	10.Avoid staring : Refrain from making prolonged, direct eye contact with Indian women, particularly traditional and married women. This can easily be misinterpreted as being overly familiar. And shaking hands with women can be a tricky business. Shake hands when the woman initiates it otherwise just fold your hands near the chin called ‘namaste’ which is the formal form of greeting.
	11.Realize the importance of hierarchy . Keep in mind that hierarchy is deeply ingrained in the Indian psyche. Obedience to, and respect for seniors are cherished values. 
 	
	12.A country of many colors: India is a land of many contrasts. Expats may find that all of the items mentioned apply to some of the people they meet, while none of them apply to others they encounter. Much depends on an individual’s class, caste, community, socioeconomic level, religion, education, profession and Westernization. Expats should use this information as a guideline, realizing that each individual they  meet will possess a unique combination of traditional and/or Western values.

Conclusion
	Given the challenges to do business in India the key to progress and success lies in having a lot of patience and also partner with a local well established and well connected company. The incentives can be many ; 1) Given a middle class of nearly 350 million Indians who have the means to afford better products and also a rural population who is better off than it was a decade ago , no foreign business planning on global expansion can afford to ignore the Indian market. 2) India also has to third largest pool of professional like doctors , engineers , scientists and software personnel whose services can be made use of 3) The availability of skilled and semi-skilled and also technical people at much cheaper prices can be an important consideration for any company that plans to cut costs. Such labor being in abundance should make India a logical choice. For example a low level programer earns $3,700 per year in India compared to $30,000 in the US.
	These reasons should be enough to convince foreigners to establish their presence in India. Also the laws are becoming more flexible and investment friendly , repatriation of profits is being made easier and above all despite the occasional political outbursts India remains committed to its democratic political set up.
	Though the practices are beginning to change in response to the number of multinationals setting shop in India but it is recommended for the MNCs to give a basic training to the workforce. Also hiring managers who are educated in the US can be helpful. But at the same time these managers need not be complacent as they might want to do things the way they are done in US and in effect antagonize the workers. A more professional attitude needs to be inculcated among the work force. At the time of hiring the foreign companies need to be careful in assessing the qualifications of the applicants.  However the greatest advantage the American managers and their business culture can have is  their informal style of working in an organization. This if communicated effectively would create greater motivation among the workforce.  

                                                               Appendix A

  Indian festivals and National holidays for 1997

 Gazetted Holidays ( Central Govt..)

Republic Day                                     : 26th of January(National Holiday)
 Idu’l Fitr                                            : 9th of February
Holy                                                     :24 March
Good Friday                                         : 28 March
Ram Nyami                                          : 16 April
Idu’l Zuha                                             : 18 April
Mahayir jayanti                                      : 20 April
Muharram                                              : 18 May
Buddha Purnima                                     : 22 May
Milad-un-Nabi                                         : 18 July  (birthday of Prophet Muhammad PBUHAF) 
Independence Day                                    : 15 August
Janamastami                                            : 25 August
Mahatma Gandhi’s Birthday                   : 2 October
Dussehra                                                  : 11 October
Diwali                                                       : 30 October
Guru Nanak’s Birthday                             : 14 November
Christmas                                                   : 25 December






Restricted Holidays 

New Year’s day                           	    	: 1 January
Makar Sankranti/Pongal                  	    	: 14th of January
Guru Gobind Singh’s Birthday        		: 15 January
Jumat-ul-vida                                    		: 7 February
Basant Panchami                               		: 11 February
Guru Ravidas’s Birthday                   		: 22 February
Maharishi Dayanand Jayanti             		 : 4 March
Mahashivratri                                    	  	: 7 March
Holi                                                      	: 23 March
Chaitra Sukladi                                     	: 8 April
Vaisakhi                                                	: 13 April
Vishnu/Vaisakhadi/Bhag Bihu              	: 14 April
Ruth Yatra                                             	: 6 July
Raksha bandhan                                     	: 18 August
Parsi New Year                                     	 : 22 August
Ganesh Chaturthi                                    	: 6 September
Onam                                                       	: 14 September
Dussehra ( Maha Saptami)                      	: 8 October
Dusshera ( Maha Ashtami)                      	 :9 October
Dusshera (Maha Navami)                        	: 10 October
Maharishi valmiki’s Birthday                  	: 16 October
Naraka Chaturdasi                                    	: 30 October
Goverdhan Puja                                         	: 31 October
Bhai Duj                                                    	 : 2 November
Hazrat Ali’s (A.S) Birthday                             :14 November 
Guru Teg bahadur Martyrdom day                   : 4 December

Source : http://rajiv.org/iu/holidays-1997.html
  
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