Cross Cultural & Strategic Management: Article Information
Cross Cultural & Strategic Management: Article Information
Cross Cultural & Strategic Management: Article Information
Power distance in India: Paternalism, religion and caste: some issues surrounding
the implementation of lean production techniques
Sagi Mathew, Greig Taylor,
Article information:
To cite this document:
Sagi Mathew, Greig Taylor, (2018) "Power distance in India: Paternalism, religion and caste: some
issues surrounding the implementation of lean production techniques", Cross Cultural & Strategic
Management, https://doi.org/10.1108/CCSM-02-2018-0035
Permanent link to this document:
https://doi.org/10.1108/CCSM-02-2018-0035
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Power distance
Power distance in India in India
Paternalism, religion and caste: some issues
surrounding the implementation of lean
production techniques
Sagi Mathew and Greig Taylor
School of Business and Management, RMIT International University, Received 27 February 2018
Revised 1 October 2018
Ho Chi Minh City, Vietnam Accepted 29 October 2018
Abstract
Purpose – The purpose of this paper is to explore how cultural differentiation can affect the successful
transplantation of lean management and production techniques from the parent country to subsidiary
countries in the developing world. In particular, the focus will be on car manufacture in India and the role of
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hierarchy in Indian society, with reflection on how this seeps into workplace and power relations.
Design/methodology/approach – Lean production techniques have been hailed as revolutionising modern
manufacturing, particularly in the automotive sector. In developed world countries, car manufacturers have
made significant gains in efficiency and productivity as a result of their implementation. However, as many of
these multinational companies (MNCs) have expanded production into rapidly-developing nations to take
advantage of both their market and low-labour costs, the introduction of lean production practices have met
some resistance. This is because certain underpinning concepts and values of the lean system, such as team
work, delegation of authority and upward communication can be considered incompatible with aspects of
local culture and employees’ attitude towards work and their superiors. The analysis presented is based on a
series of semi-structured interviews with managers and workers from an India-based subsidiary of a MNC car
manufacturer and engagement with the existing literature.
Findings – It concludes that paternal relationships, religious values and group orientation in Indian society have a
significant impact on the dynamics of the workplace and result in a brand of power distance that is specific to this
national context, raising questions about the suitability of universal implementation of lean production practices.
Originality/value – “Power distance” has become a catch-all term for cultures with an orientation towards
hierarchy and status in society. However, this categorisation masks some of the factors belying the
phenomenon and intricacies relating to how it plays out in the workplace. It is simplistic to postulate that high
power distance cultures might be incompatible with management approaches that decentralise authority and
increase worker participation. Rather than rely on overgeneralisations, the analysis provided has attempted
to deconstruct the composition of power distance in the Indian context and document systematically how
features of Indian culture conflict with the principles of lean production techniques, using a case study from
an Indian subsidiary of a MNC. In particular, the study finds that religion, caste and paternalism create an
India-specific power distance that manifests itself in worker behaviour and workplace relationships.
Keywords Lean production, Power distance, Employee relations, India, Religion and caste, Chamchagiri,
Yes boss, Paternal relationship
Paper type Research paper
1988). The Toyota Way (2001) claims that employee feedback and involvement is actively
encouraged through regular Kaizen (continuous improvement) and quality circle meetings,
in which workers suggest improvements to the way that tasks are organised and executed
(Ortiz, 2006; Liker, 2004). Implementable suggestions are often rewarded with recognition
and small cash bonuses. Such practices are designed to increase workforce enfranchisement
and underpin the team-work ethic. Nevertheless, while there can be little doubt that the
Japanisation of production has improved efficiency and productivity (Turnbull, 1986),
lean has in fact been criticised as actually having a detrimental effect on worker
autonomy, participation and wellbeing through intensification of labour, centralisation of
decision-making and the “illusion” of employee empowerment (Stewart et al., 2016, 2009;
Jones et al., 2013; Richardson et al., 2010; Sharpe, 2006; Lewchuck et al., 2001).
Car manufacturers are increasingly seeking to expand into rapidly-developing
economies to take advantage of emerging markets and low-labour costs, usually
exporting organisational philosophies along with production techniques. A case in point is
India, which has attracted high levels of foreign direct investment (FDI) over the last two
decades. However, the implementation of lean production in Indian subsidiary
manufacturing operations of automobile companies has faced considerable resistance and
instances of industrial unrest, pushing the issue of assumed universal principles of
management in this industry into sharp focus. Research on the cultural challenges of
establishing foreign management practices in India has received academic attention and
findings suggest that a lack of understanding local culture, which underpin behaviour in the
exchanges between leaders and team members, have a fundamental influence on levels of
workplace resistance ( James and Jones, 2014; Mathew and Jones, 2013; Basu and Yoshida,
2012; Budhwar et al., 2009; Baruch and Budhwar, 2006; Kakar et al., 2006; Lansbury et al.,
2006; Sinha, 2004).
Despite the increasing focus on issues surrounding cross-cultural management, the
features of Indian society that act as a challenge to implementing lean production in the
country’s automobile industry have not been extensively charted. There are a range of
studies from various industries that examine elements of Indian work culture, but these tend
to be narrow by nature, focusing on outcomes rather than causes, or on one particular event
or aspect of worker behaviour. This paper will attempt to synthesise some of the disparate
theoretical strands on Indian culture in the existing literature and reflect on these utilising
case study data. A complex, multi-faceted and India-specific manifestation of “power
distance” (Hofstede, 1980) is identified in this research as one of the major obstacles in
implementing core lean concepts such as team work and empowerment, including work
process planning and decision-making. This study will provide an analysis of embedded Power distance
cultural factors to reveal the intricacies of the composition of hierarchy in India, revolving in India
around patriarchy, caste relationships and group orientation in the workplace and how
these act as a barrier to the transplantation of lean production philosophy from parent to
host country production.
The society and culture of India has evolved through a historic tension of spiritual vs
material pursuits and religious conquests by foreign powers. It is therefore unsurprising
that India followed a closed economic policy post-independence until liberalisation in the
early 1990s. The new era of liberalisation has enabled a large number of automobile
manufacturing companies to establish subsidiary operations in India. As a result, major
car manufacturers such as Ford, General Motors, Mercedes-Benz, Volvo, Volkswagen,
Toyota, Honda, Hyundai and Suzuki have all set up manufacturing centres there. The
question of how India’s historical and developmental traits form a peculiar brand of power
distance and the impact of this has on efficacy of modern production techniques is
therefore an important one.
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3. Power distance
The classical theory of power distance defines the concept as the degree of inequality among
members belonging to the same social system (Mulder, 1963). This definition invokes
images of a power struggle between equality and inequality in a given ecosystem, such as a
society or an organisation. Kipnis (1972) came to a similar conclusion that power distance
encompassed attempts by those in a position of power to influence the behaviour of the less
powerful through maintaining a psychological distance. Building on these early conceptions
of power relationships, Hofstede (1980) defined power distance as the acceptance of
inequality in terms of power between the powerful and less powerful members of
organisations and societies. Accordingly, he classified global society into a scale
categorising high- and low-power distance countries (Hofstede, 1980, 2001). Similarly, the
GLOBE study also identified power distance as an important cultural dimension. This
defines power distance as “the degree to which members of an organisation or society
expect and agree that power should be unequally shared” (House et al., 2002, p. 5). It also
identifies the desire of high power distance cultures to have strong and powerful leaders
(House et al., 2004).
Related to notions of power distance, Schwartz’s (2004) cultural framework classifies
societies on the basis of conservatism vs intellectual autonomy. Conservatism is
characterised by the maintenance of the status quo and established social order embracing
values such as obedience, respect and tradition, while intellectual autonomy emphasises
ascription to individual freedom. Trompenaars and Hampden-Turner (1997) identified
several important aspects of high power distance societies. For example, such societies tend
to have an orientation towards a family-like culture in organisations, where superiors adopt
father figure status and are expected to “care” for their dependents. As a result, workers
look upward for instructions from their leader to perform tasks, rather than work or
contribute to a team. They also proposed that the level of hierarchy and distance between
workers and supervisors can also be dependent on the features of the dominant religious
beliefs of a particular culture.
Mulder (1963) suggests that exercising power gives satisfaction and those higher up tend
to keep the less powerful at a distance. Thus, there is a clear gap or distance created between
the powerful and less powerful members of the society. Bruins and Wilke (1993) argue that
the greater this distance, the lesser the perception of threat by superiors and the lesser the
power aspirations of the subordinates. In high power distance cultures, status quo and
socially expected order are maintained when the powerful are assured of their status by the
words, deeds and actions of the less powerful, who are content with their position in the
social hierarchy (Schwartz, 2004). This is particularly prevalent in India where, along with Power distance
strong respect and inclination towards family values, there exists an unwritten rule of in India
“distance” and hierarchy in workplace interactions and relationships (Aycan, 2000).
As previously noted, lean production techniques have their origins in Japanese
automobile industry. Toyota and Nissan were the first companies to renovate scientific
management and the division of labour to encourage greater efficiency (Adler, 1995; Smitka,
1994). The success of lean in Japan and, subsequently, in subsidiary countries in the
developed world resulted in the near-universal adoption of these techniques across the
car-making industry. Japanese culture is categorised as relatively high power distance (54),
indicating that the nature, values and systems of lean are not necessarily contrary or
antagonistic to cultures where hierarchy and notions of status are prevalent (Hofstede,
2016). By extension therefore India, as a high power distance society (77), should not
inevitably be unreceptive to the philosophies which underpin lean production. Nevertheless,
the opposite has proven true. A series of high-profile industrial disputes have arisen in the
Indian subsidiaries of Suzuki, Honda and Toyota and these can be partially attributed to
resistance against imported production and management methods ( James and Jones, 2014;
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Bhandari, 2010; Das and George, 2006). So, the more nuanced question here is what is it
about Indian culture and its particular brand of power distance that acts as a barrier to the
adoption of lean production techniques? In order to answer this, a close analysis of the
cultural components of Indian society is necessary.
guidance and pastoral care in Indian workplaces. The patriarchal relationship also
encourages workers to attempt to ingratiate themselves to their superiors wherever
possible. Contrary to egalitarianism, Indian workers are inclined towards seeking the kripa
(mercy) of their boss, as ingratiation often prevails over individual performance in
workplace interactions (Sinha, 2004). Superiors enjoy the feel of power that ingratiation
brings, so sycophancy and favouritism tend to be features of the Indian workplace (Khatri,
2009). The concept of chamcha has been identified in research of Indian workplaces
(Srivastava and Kulkarni, 2009; Gupta and Sharma, 2003). The term literally means “spoon”
and is used colloquially to identify a person who employs sycophancy (chamchagiri) to
establish a personal relationship with superordinates. Sen (2009, p. 131) defines a chamcha
as “someone who is sly and always on the lookout to score points over his co-workers […]
by misreporting about work etc”. The chamchas of a workplace have curried the favour or
trust of a supervisor, either through ingratiation or a pre-existing relationship and, by
extension, enjoy their patronage and some authority through tacit delegation.
Chamchagiri could be understood as a personalised relationship that overrides formal
rules and settings and is ubiquitous as a key variable in organisational politics in Indian
institutional discourse (Srivastava and Kulkarni, 2009). This is a mutually-beneficial
arrangement whereby the manager has his “political antenna” maintained with a flow of
information from his loyalists and the chamchas in turn enjoy special privileges, direct
access to authority and rewards for their service not prescribed in the job description
(Trompenaars and Hampden-Turner, 1997). As long as this balance is not breached,
subordinates are intrinsically motivated towards work and moreover develop an attitudinal
commitment towards the organisation, although the practice of ingratiation and
sycophancy can also cause competition and conflict amongst employees (Mowday et al.,
2013). Effectively, the chamchas of the workplace act as an intermediate stratum in the
power relationships of Indian workplaces and this has implications for the application of
some of the practices of lean, as will be discussed in the case study.
challenge authority or act autonomously for fear of reprisals, this very important aspect of
the “lean machine” is undermined.
In another interview comprising two union leaders and five members from the shop floor,
silent deference was acutely apparent. Throughout the interview only the leaders spoke, while
the members kept silent. Even questions asked to individual members were answered by the
leaders. However, there was no power struggle or feel of offence or frustration visible from the
team members. Again, there were frequent nods to the leaders’ statements. This phenomenon
was not confined to the shop floor. Hierarchy is just as palpable further up the chain. During
an interview with an Indian senior manager and his deputy, the senior manager spoke for
most of the time. On the rare occasions that the deputy did speak, the senior manager either
silenced or openly corrected him. Once this had happened, the deputy manager kept silent for
the rest of the interview. The deputy manager did not show offence, however, instead
following the “yes boss” mantra, either vocally or by affirmative nods.
Differences between Indian and Japanese culture also caused issues in this case. For example,
Japanese managers at the plant were unable to comprehend the silence of Indian workers. There
was an instance in which an employee committed a mistake on the shop floor. A Japanese
manager arrived at the scene and started criticising the employee. The employee in question
stood in silence with his head hanging down, but this offended the Japanese manager. Clearly
angered, he grabbed the cap of the worker, threw it on the floor and started stamping on it with
his feet, shouting “don’t you have anything to say?” The reason for this silent, deferential
behaviour is closely associated with paternalism. An Indian production supervisor reflected:
“I explain these concepts using the examples of family relationships […] for instance if your
father asked you to do something or your mother scolds you for a mistake […] how would you
take it? Won’t you silently accept it? You wouldn’t argue with your parents, would you?” So, this
almost child-like response to chastisement can be viewed as a logical extension of the Hinduism-
inspired paternalism of Indian society. Therefore, we can discern that lean production and its
underpinning tenets of continuous improvement, team work and shared responsibility for
quality are all potentially damaged by silence, “yes boss” and deference.
Chamchagiri (Sycophancy)
Chamchagiri is a common dynamic of workplace relationships in India (Srivastava and
Kulkarni, 2009; Sen, 2009; Gupta and Sharma, 2003). However, issues surrounding favouritism
and sycophancy were particularly acute at this joint-venture. The Indian side of the venture
was headquartered in a different region from that where the manufacturing plant was located.
When it came to recruitment, some workers came from the headquarter region and others
CCSM were recruited from the surrounding rural areas of the plant. This complicated workplace
relations because it created regional rivalry and divisions. Some of the members who were
recruited from the joint-venture partner’s hometown were immediately branded as chamchas
(sycophants) by the local workers and viewed with suspicion. One local worker alleged “as
they are chamchas of management, we are cautious […] if we say something it will reach the
ears of the management”. Others were more scathing in their assessment: “we have no
freedom […] they are colonising even our private space and time by planting chamchas in our
teams”. The situation deteriorated when some of these perceived chamchas were promoted as
team leaders. As well as being from another region, several were also considered inferior in the
caste hierarchy and this was the cause of considerable unrest.
Aside from regional rivalries, the meritocracy of sorts that lean subscribes to can clash
with the value attached to age. A similar scenario also emerges associated with work
experience. As team leaders can be appointed on merit of performance, there were instances
when junior members, either by age or date of appointment, were promoted as team leaders.
A disgruntled worker plainly stated, “he just came yesterday [a relatively recent recruit] and
today he is a team leader. We are seniors and much more experienced. How could this
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happen unless one is a chamcha […] we don’t like chamchagiri”. An industrial journalist
who studied instances of industrial unrest in the plant highlighted the meritocratic nature of
lean as a major issue in the Indian context:
You know our society cannot accept such practices. Seniority is still a deciding factor in promotions
in India. When they introduced this concept and moreover when outsiders were promoted, this
created unrest […] the blame game of chamchagiri started immediately and the company
objectives, what they call lean practices, could not be established.
Any promotion that impinges upon perceived hierarchical protocols, particularly where
regional or experiential rivalry is concerned, is blamed on chamchagiri and this in turn has
an obvious, negative impact on team spirit and cohesion.
The chamchas of the workplace add an intermediate stratum to workplace power relations
and this has further deleterious effects on the human side principles of lean. One example lies
in the Kaizen process. Through Quality Circle meetings, workers are invited to discuss
potential improvements to the work process, work areas, scheduling, material/parts supply
etc., with those responsible for making implementable suggestions often rewarded. However,
because the chamchas have the ear of their supervisors, the continuous improvement process
is open to manipulation. A worker described this issue:
As part of kaizen we make suggestions, but these chamchas will go and present to the managers as
their idea. Thus they get the rewards. We cannot complain, because they are chamchas and enjoy
favour from the superiors. If we complain, then these guys will give us more trouble by making
false allegations against us.
When questioned about this specific concern, a middle manager simply responded,
“chamchagiri is a strong culture in our society, it is there in politics and everywhere […] We
try to maintain a strictly objective approach to work. But, sometimes there may be
something missing. After all, you cannot change everything overnight, it will take time”.
Chamcharigi permeates all Indian workplaces and all aspects of workplace
relationships. However, it is particularly damaging for the lean system, which places
emphasis on perceptions of employee empowerment and team-based work groups. Just as
workers expect the care of their supervisors to transcend work/home boundaries, so do the
actions of the chamchas. A senior trade union leader explained the centrality of
chamcharigi to Indian culture:
It is our culture that subordinates try to impress their superiors by establishing a personal relationship.
Sometime they fetch water or tea or coffee for their seniors or buy paan [a combination of ingredients
wrapped in betel leaves, which is chewed]. Even outside, they do menial support such as cleaning the Power distance
motor bike or car of their superiors, or even buy vegetables for them […] so many ways. It is a in India
collective society and though it is chamchagiri, more than that it is like building a good relationship.
Kripa (Mercy)
Directly associated with paternalistic relationships in the workplace and religiosity in
broader society is the idea that managers should “care” for their employees. Just as
managers are ascribed fatherly status, so junior members of the workforce are perceived as
children and should be nurtured accordingly. Workers therefore often seek the kripa (mercy)
of their superiors if they face difficulty or have committed a mistake. A senior manager
described this cultural trait succinctly:
It is an Indian religious tradition. In this situation, we can call it “guru kripa” [mercy of the teacher/
leader]. People have weaknesses, difficulties, hardships and so they look up for kripa. It is a
religious and social responsibility in Indian culture to show kripa so as to be freed from karma cycle
[…] so it is quite natural that you witness that in the workplace too.
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treatment (Laufer et al., 2018; Gomez and Rosen, 2001; Green and Liden, 1980). In the Indian
context, this inner circle is usually made up of chamchas.
Aside from the broad cultural incongruities relating to delegation of responsibility,
employee empowerment and ingratiation, there are specific integral elements of the lean
philosophy that clash with Indian cultural sensibilities. For example, the practice of kaisen
endeavours to involve team members to contribute to efficiency in production practices and
outcomes. This requires every employee, irrespective of status and position, to openly
express views, make suggestions and ask questions. However, this is emasculated by
one-way communication norms and the “yes boss” and silence orientations of Indian
workers. Another specific example of how fundamental tenets of the lean philosophy clash
with Indian cultural values lie in the concepts of muda and andon. So central to the lean
system, these initiatives encourage all employees on the shop floor to stop the production
line at any time if a suspected fault is identified. Babson’s (1995) study on lean production
system determined that, even in low power distance cultures, assembly line workers who
activate the andon system to halt production often have to face the wrath of supervisors.
In India, where lower level production workers are regularly treated as children, this is even
more acute. Employees are frightened to stop production, wary of being labelled as a trouble
causer and this severely undermines the lean emphasis on quality, “right first time” and
minimisation of muda.
The emphasis on muda and the elimination of waste causes other issues when applied in
the Indian context. As well as supposedly being responsible for waste in the production
process, the lean system requires team members to be fully responsible for their area of
work. This involves cleaning designated work areas and organising tools and materials
systematically. However, societal status restricts higher caste workers from doing such
menial jobs as it equalises their status with lower orders and is hence perceived an affront to
social rank. The team-oriented and egalitarian approach to work areas and tasks that lean
depends on clashes with perceptions of caste status in Indian context.
In addition to the influence of status, deference and chamchagiri, other aspects of Indian
culture are an anathema to the principles of lean. Lean’s orientation towards meritocracy is
aimed at encouraging high performance amongst individuals and teams through
recognition, reward and career advancement. The best performing individuals can be
promoted to team leaders, regardless of their tenure in the company. However, in the Indian
context, this is met with resistance, especially when the achiever is from a lower caste.
Perceptions of seniority, age and experience engendered in paternalist orientation also
contributed to the discomfiture surrounding performance-based promotion. For example,
CCSM one worker commented that “team leaders are sometimes younger than team members. In
our culture age is highly regarded and respected”.
One of the major contributions of this paper is to emphasise the cultural challenges that
MNC car manufacturers face when attempting to import lean manufacturing techniques into
their Indian subsidiaries or when embarking upon joint ventures in the country. To
summarise in diagram form, organisational discourse in Indian workplaces consists of
various factors that constitute a unique manifestation of power distance. This has an impact
upon work culture and workplace relationships and is particularly detrimental to specific
elements of the “human side” lean philosophy, such as kaisen, muda and andon (Figure 1).
The acute stratification of Indian society poses myriad questions for MNCs seeking to
manufacture their product in this rapidly modernising and expanding economy. Traditions
of patriarchy, religion, caste divisions, seniority and group orientation lend themselves to
workplace power and hierarchical structures that act as an analgesic to the decentralised,
team-based model that is an integral part of lean’s success. This has significant implications
for both the Indian economy and future FDI in the country’s rapidly-developing car
manufacturing industry.
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YE
E
S
NC
P ANCE
BO
IST
HI
SILE
SS
LATIONS
POWER D
POWER
ORGANISATIONAL
DISCOURSE
RE
DI
AL
STANCE
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Figure 1. CH
Indian Power AM
CHAGIRI
Distance Factors
strategies incorporating cultural factors and hints towards slowly-changing attitudes Power distance
amongst Indian managers. in India
As other economies, such as those elsewhere in Asia and South America, continue to
modernise and expand, so MNCs will seek to outsource or relocate production to these new
markets. More detailed research is also required on how elements of each culture’s unique
historical, religious and political development might conflict with contemporary
management and production techniques in order to pre-empt issues and assist in future
planning for organisations. Nevertheless, in the specific case of car manufacture in India, it
is hoped that this study will help inform the practice of various stakeholders, from senior
executives to managers and government economic strategists to HR professionals, allowing
for a better understanding of how the complex nature of national culture can conflict with
certain elements of modern management methods, such as lean.
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toyota-kirloskar-motor-registers-highest-sale-in-december.html (accessed 10 November 2017).
Corresponding author
Sagi Mathew can be contacted at: [email protected]
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