Cross Culture Issues

8/2/2019 Cross Culture Issues

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In a global village, human resource management and

organizational behavior are expected to play crucial role in theprocess of internationalization of business. Globalization hasits impact on people management. The management is

required to cope with problems of alien cultures, unfamiliarlaws, languages, attitudes, practices, competitors, managerial

styles, work ethics, and so on. Human resource function suchas hiring, maintaining and remunerating must acquire globalperspective. To face this challenge, the management must beflexible and proactive. By helping the best qualified people

execute the company's strategy on a global scale, the

management can become a source of competitive advantage forthe company.


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y Power distance

y Masculinity vs. feminism

y Uncertainty avoidance

y Individualism vs. collectivism


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y Long term vs. short-term orientation

y Language

y Cooperation

y Work Group Characteristics

y Motivation system


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y Government policy issues

y Tax policy issuesy Company development issues

y Company Management Capabilities issues

y Communication issues

y GDPissues

y Long term vs. short-term orientation issues

y Employment issues


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India

y Corporate Income Tax: 15%

y First five years of

profitability: 0% taxy Second five years of

profitability: 50% tax (This isassumed to be 7.5%.)

y Third five years of

profitability: 50% of tax ratefor any invested dividendsthat are invested back intoIndia

y Corporate IncomeTax: 24%

y

Tax-Incentives for high-tech industries: 15%y Tax Holidays for

manufacturing industries:y Initial two years of

profitability: 0 percent taxy Next three years of

profitability: 50% of taxrate (This is assumed to be12%)

china


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As can be seen, India has introduced a tax regime thatis vastly more advantageous in the Special Economic

Zones than China.A

nother benefit of India overChina with respect to locating in the Special EconomicZones is that India does not discriminate betweenmanufacturing and services and either can offer theabove incentives, which is not the case in China.(Service companies are treated less favorably in Chinafor incentives.)


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INDIA

y Indian companies can listdomestically on the

Bombay Stock Exchange,Asias oldest exchange.

y Bombay has US$1 trillionwith 4,833 companies

y Bombay is run to

international standardsand has tremendousstability in the quality of itscompanies

y China has both theShanghai and Shenzhen

stock exchanges.y Shanghai has US$1.7

trillion with 849companies

y Chinas Securities

Commission has no powersto impose punishments,which must be imposed bythe courts

CHINA


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the government is the major stockholder of its State-

owned enterprises all these firms are not subject toindependent policing and true financial analysismeaning that the value of many of these firms issuspect. This means that generally India has the more

transparent economy.


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INDIA CHINA


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India is for long term profit. China is for short term profit.

India takes so much time to make a companysuccessful .

China take less time to make a company successful.


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India

y Less educated

y More employment

y Developing country

y Employment policychange time to time

y More educated

y Less employment

y More then developingcountry

y Employment policy

doesnt change time totime

china


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y After this we can say that there is more chance ofemployment. Indian people are hard worker andalways respect their boss. Competition is less than the

china.


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y We have to prefer Indian market for expanding thebranch because India is developing country, if we wantlong term profit with high risk we choose India.

y

If we want short term but maximum profit we have tochoose Chinese market.


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Cross Culture Issues

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