BUSINESS CULTURE OF INDIA AND SOUTH KOREA EP JOHN

South Korea Facts and FiguresSouth Korea in FiguresLand Area 99,275 sq kmPopulation: 48mPopulation density: 483 sq kmLife expectancy: Men 74yrs

Women 82 yrsAdult literacy: 98%Average per household 2.8Divorces per1,000 : 3.5The EconomyCurrency: WonGDP: US$680bnGDP per heads: US$14,160Employment (% of total):Agriculture 8%

Industry 28%Services 64%Unemployed 4%

Main Exports: Type: Electronic productsMotor VehiclesMachineryChemicalsMetal Goods

Destinations: (% total) USA 17%Japan 9%China 20%Hong Kong 7%Taiwan 4%

Main Imports: Type: Electrical machineryCrude petroleumMachinery& equipmentSemi conductorsConsumer Durables

Main countries of origin: Japan 20%USA 13%China 13%Saudi Arabia 5%Australia 4%

Indian Facts and FiguresIndia in FiguresLand Area 3, 287,263 sq kmPopulation: 1,081m Population density: 329 sq kmLife expectancy: Men 63 yrs

Women 67 yrsAdult literacy: 61%Average per household 5.3Divorces per1,000 : UnknownThe EconomyCurrency: Indian RupeeGDP: US$ 691bnGDP per heads: US$ 640Employment (% of total):Agriculture 60%

Industry 17%Services 23%Unemployed 4%

Main Exports: Type: Engineering goodsJewellery & gemsTextilesChemicalsAgricultural goods

Destinations: (% total) USA 20%China 8%UK 5%UAE 8%

Main Imports: Type: Petroleum & productCapital goodsGold and silverElectronic goodsGems

Main countries of origin: USA 7%Belgium 6%China 6%Singapore 5%

BUSINESSAs a country, India covers a land area greater than that of Europe. Its inhabitants speak a bewildering array of languages (16 official languages as well as innumerable local dialects and patois) The people live in twenty-eight states and seven union territories. It is hardly surprising, therefore, that India is a country about which it is very difficult to make sweeping generalisations. Those business organisations that wish to profit from India's rise, would do well to spend a little time studying the cultural norms which drive the thinking of the Indian people.

Korea is probably more heavily influenced by Confucian values than any other business culture (including China). Confucian ethics permeate all aspects of working life, from management systems to interpersonal relations and although both Western and Japanese influences are becoming stronger, there is a deep well of conservatism within Korean society which makes change difficult, slow and somewhat painful. The recent economic downturn experienced in South Korea (as well as many other Asian countries) has precipitated a period of great introspection which has resulted in many traditional beliefs and approaches being challenged both internally and externally. Thus, South Korea is a business culture at a significant crossroads with a great need to find an accommodation between traditional values and modern management practice.

MANAGEMENT STYLEIndia is an enormously hierarchical society (arguably the most hierarchical in the world) and this, obviously, has an impact on management style. It is imperative that there is a boss and that the manager acts like a boss. The position of manager demands a certain amount of role-playing from the boss and a certain amount of deferential behaviour from his subordinates.

Although leadership is hierarchical and paternalistic, it is also infused with the Korean concept of inwha, which emphasises the harmony necessary between people of equal rank and standing. Thus, it is important that group situations are characterised by lack of confrontation and blame. The good manager spends a great deal of time and effort ensuring that his team has a good working relationship and that all members feel fully integrated.

BUSINESS STRUCTURESIn many ways, business structures mirror Indian society. Both are extremely hierarchical in nature, where people have an allotted position which they do not attempt to overturn. Many MNC's try to introduce a flatter, more egalitarian structure to their Indian subsidiary in order to align it with other offices in the group. This may prove difficult in a country where hierarchy is unquestioningly accepted. It may not be impossible to take this approach but it is certain to require a great deal of explanation, retraining and patience.

Korean companies have traditionally been characterized by a high degree of both centralization and vertical hierarchy. Most large business conglomerates have been family affairs with the founder's family continuing to exert a great deal of direct executive authority. This has led to a system where most decisions are executed at the top and delegated downwards along strong lines of authority.

WORKING AS TEAMSTeam working, as understood in the Anglo-Saxon world is alien to the Indian approach to business. Therefore, the team leader takes complete responsibility for the success or failure of a project and needs to be constantly on top of progress and looking out for problems. If anything goes awry, the team leader is expected to sort it out personally. Once again, micro-management is the key.

Koreans have a strong family and clan attachment and see themselves as individually subordinate to these greater bodies. If the right environment can be created, Koreans will prove wonderfully loyal team players. If, however, the environment is uncomfortable (and worst of all a place in which people's face is not protected), then groups will flounder and co-operation can be subtly withdrawn.

COMMUNICATION STYLESEnglish is one of the fifteen official languages in India and is the only one which is universally spoken by the educated sections of society. when faced with disagreement, you are likely to encounter vagueness and lack of commitment. Answers such as, 'We'll try' or 'Yes, but it may prove difficult' should be viewed with great suspicion and will probably mean 'No'. As Indians are highly family-oriented, do not be surprised if many meetings begin with questions about your family.

There is a contradiction at the heart of Korean communication patterns which is that, they have a tendency to become emotional if they feel that things are not going their way. Generally speaking, Koreans regard saying 'no' as poor etiquette and something to be avoided at all costs. This obviously has the effect of making meetings longer and can be somewhat frustrating. It is important to maintain patience and politeness at all times. Remember that communication is seen as a means to developing good relationships.

MEETING STYLESMeeting styles will be heavily dependent upon the type of organisation with which you are engaged in business. Many of the emergent and highly successful hi-tech industries are actively pursuing western-style business methodology and this will result in meetings following familiar patterns with agendas, a chairperson and reasonable time keeping. More traditional Indian companies will, however, retain more local approaches to meetings and these may cause the international business traveller more concerns.

First meetings can often be completely dominated by the need to start the relationship-building process. It is important not to show impatience or irritation at this stage. Rather view the meeting for what it is - the essential first steps in creating a, hopefully, rewarding and long-term business relationship. Punctuality is important, as is dress and body language.

BUSINESS-WOMENForeign women seem to have little difficulty being accepted in an Indian organisation. If a woman has the position of manager, she must be there for a reason and her instructions will be followed just as diligently as those of a male manager. It is important that women managers act at all times in a formal manner with male subordinates, as any overt signs of friendship or affection could be misconstrued.

By Western standards, the role of women in society is distinctly inferior to that of men. It is rare for women to succeed in business in Korea and most women work as secretaries or in poorly paid assembly line positions. It is generally expected that women will leave work on getting married or having children. Although foreign women will be accepted and possibly expected as part of a visiting delegation.

DRESS CODEMen tend to wear smart, but comfortable and cool clothing. Women should wear conservative dresses or trouser suits. Clothing should not reveal too much skin - especially legs.

Appearance is important in Korea as in many other Asian countries and it is important that you look your smartest at all times - both for formal and informal gatherings. The conservative convention of dark suit, shirt and tie are still very much the norm in Korea with smart business suits or dresses being favored by women. (Trousers tend not to be worn by women in business situations but are acceptable in informal, social settings.) The winters are very cold in Korea, so be sure to take suitable coats, scarves, gloves and hats. Summers are hot and therefore lightweight suits are needed.

GIFT GIVINGGift giving is an endemic part of life in India and it is thought that the gift giver is the one who should thank the receiver. Gifts need not be large or expensive but should always be wrapped. Traditionally, gifts are wrapped and not opened in front of the giver. When wrapping gifts, avoid black or white paper which is considered unlucky.

Gift giving is an endemic part of Korean business life and should not be confused with notions of bribery and corruption. Gifts should not be too lavish but should always be of good quality. It is important to take a number of small gifts to Korea to distribute to new and existing contacts. Gifts should always be wrapped. Alcohol, especially good single malt whiskey and brandy is always an appreciated gift. It is polite to seem to refuse the gift a couple times before accepting.

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