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Sunday, December 6, 2015

Types of Private Sector Companies in India based on Closeness to Pure MNC Culture

It is an interesting exercise to determine the broad types in which private sector companies in India can be categorized. One way to perform this categorization is based on the company culture and can be measured in terms of how close the culture is to a pure MNC culture.

MNC (multi national corporation) in the context of this article embodies all the good things one would expect to find in a workplace and would constitute the following characteristics:
  • Strong ethics 
  • Professional management
  • No discrimination
  • Modern workplace
  • Progressive practices
  • Fair policies
Based on the above considerations, private sector companies in Indian can be categorized in following five types:
  • Pure MNC - these are organizations which are directly owned and operated by the global MNC. The management team in India is appointed by the HQ office and will generally have non-Indians as part of the team.
  • Quasi MNC - these are organizations which are directly owned and operated by the global MNC. The top man in India is appointed by the HQ office who then hires the others in the team and will generally have only Indians as part of the team.
  • Pseudo MNC - these are organizations which are not directly owned and operated by the global MNC but will have an office in US, Europe, etc. to give it the semblance of an MNC. The top man in India is part of the overall management team which will generally have only Indians as part of the team in the India office.
  • Desi MNC - these are organizations which are towards the far end of continuum and resemble Pseudo MNC is several ways. The culture and management style is modeled on the lines of an MNC but is dumped as per convenience of the management team which generally has only Indians as part of the team.
  • Pure Desi or Lala Companies - these are the anti-thesis of a Pure MNC. These organizations are run on the whims and fancies of the top man for whom anything is fine as long as profits are coming in.

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