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Created by : Darshana Sawant, HR Manager, Leading IT services company  | 11 19 2009 07:24:11 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : India(Markets)
Activity:  524 views;  last activity : 07 06 2010 20:18:09 +0000

Ratan Tata, the 71-year-old Chairman of Tata Group, whose tenure ends in 2012 told Wall Street Journal in an interview that his successor could be an expatriate. The TATA group is in the process of formalizing a successor after him. Since 65% of their revenues come from overseas, TATA feels an expatriate sitting in that position with justification will be a nice idea since no family candidate has been publicly identified to take over the role.

Recently there have been many cases where the positions of many top officials of many Indian companies were given to foreign nationals. But is it justifiable that a foreigner should head Indian companies? What do you think friends?

 
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Top Argument
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Its a brilliant thought that Indian business leaders are open to such ideas. Merit definitely needs to score over nationality. Because of a non-Indian head, its the merit we need to look into. Not the cast, creed etc. But I can already predict that there will be a lot of "hungama".


By Darshana Sawant, HR Manager, Leading IT services company  11 19 2009 08:03:01 +0000
 
Top Argument
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Yh I am not agree with Gargi but I am also not agree with Darshana, Indian Companies should be headed by forigners? No dout we are in Globalisation, but It does not mean our companies shoud be headed by others. A lots of Indian success in business as well with other sector. I am giving you a sort of example of some Indian who are not only success intheir life but they are the reason to success their company. The list are as follows 

1)Steel tycoon Lakshmi Niwas Mittal is the richest Indian in the world, with an estimated wealth of $25 billion. 2) Ratan Naval Tata, a bachelor, is the chairman of the Tata Group.3) Mukesh Ambani, the chairman and managing director of India's largest private sector enterprise.4) Nandan NilekaniNandan Nilekani is the CEO and managing director of Infosys Technologies. He, along with N R Narayana Murthy and five others, co-founded India's IT jewel, Infosys.5)Azim Hashim Premji, the chairman of Wipro Technologies, is one of the richest Indians. 6) The fourth richest Indian today, with a net worth of about $13.5 billion, Anil Ambani is chairman of Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Limited. 7) Sunil MittalSunil B Mittal is chairman and managing director of Bharti group. Bharti is India's largest GSM-based mobile phone service. 8) K V KamathKundapur Vaman Kamath is the managing director and CEO of ICICI Bank, the largest private bank in India. 9) Kumar Mangalam Birla, born on June 14, 1967, is among the richest persons in India and the eighth youngest billionaire outside India. 10) Rahul BajajRahul Bajaj is the chairman of the Bajaj Group, which ranks among the top 10 business houses in India. 11) Indra Krishnamurthy Nooyi Chief Executive Officer of Pepsi Co one of the world's leading food and beverage companies. 12) Chanda Kochhar as the bank's chief executive officer and managing director. 13) Akhila Srinivasan, Managing Director of Shriram Investments is a very successful Indian businesswoman. 14)Lalita Gupte and Kalpana Morparia Joint Managing Directors of ICICI Bank are made immense contribution to the banking sector in India. 15)The Fortune Magazine has ranked the owner of Jumbo group, Dubai based $1.5 billion business conglomerate, Vidya Manohar as the 38th most powerful women of the world. 16) Kiran Mazumdar Shaw, the owner of Biocon, the largest biopharmaceutical firm in India. She is the first female master brewer and the richest woman in India.17) Sulajja Firodia Motwani who is the Managing Director of Kinetic and Kinetic Finance.18) Naina Lal Kidwai, deputy CEO of HSBC,19)Priya Paul, Chairman of Apeejay Park Hotels,

These are not only persons, there are lots of who r very success in their life and heading big companies. There are many examples of Japanese & Korean companies that have always been headed by natives and are doing just fine.

We have a good talent and active brain to run our companies and foreigner are welcome to join hand with us. But we should not demovated our selve that Indian companies should be headed by Foreigners.

 


By BIBHU PRASAD SAMAL, Marketing Manager, ICFAI  11 20 2009 07:17:12 +0000
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Result and/or outcomes are important... whether it is given by DESI or PERDESI .... ultimately we have our own authority to keep them with us or throw them out based on result .... so talent is important to keep ball rolling .....

Wish to ask ... is there really a vacuum of indian brain ? who cannot show his strengths to be a leader of indian corporates....

Darshana there will not be a HUNGAMA in this case .....Bibhu has a valid points but talent we can get from any other part of the world also .... if number of indians are there then we cannot forget to mention the number of names from other world .... 

BUT I PREFER INDIAN SHOULD HOLD SUCH POSITION, BECAUS HE IS WELL FAMILIAR WITH THE WORKING ENVIRONMENT ... EITHER INTERNAL OR EXTERNAL ... AND INDIAN HAVE PROVED THAT..

I worked with TATAs for nine years and know that to reach this global position lot of indian brain (talking about higher hierarchy) had worked out for this group. 

GOOD DEBATE ... APPRECIATED THE VIEWS OF ALL OTHERS. BIBHU KEEP IT UP .... WELL SAID  .... DARSHANA YOU ALSO MADE A SHORT AND EFFECTIVE COMMENT


By Nitin M Aras, XYZ  | 02 26 2010 05:45:02 +0000
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why not, it helps an outsider to look at things more objectively leading us towards global mkts.

This would help bring more professional approach on how Indian companies are run. This should come through.


By Phani Mohan krishna, Head/VP/GM- Purchase/Material Mgmt, ANAGHA DATTA TRADE  | 02 25 2010 06:54:10 +0000
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Although I provided my opinion earlier, the richness of te arguments makes me feel I must provide another comment.

I think in business it's irrelevant the nationality of the hhead of the company, as long as the strategy, the tactical plans, the resources and the results are in line to the shareholders and society's expectations.

In business, and in a global economy, I believe there is no room for sentiments.


By Robert Moore Bernardos, Senior Finance, Operations & IT Executive - advisor to foreign investors  | 02 18 2010 08:37:38 +0000
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Dear Bhibhu,

The very fact that you could cite a dozen names is in itself a reflection. Now start to compute this with number of companies or number of educated in India making the grade.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 02 18 2010 06:27:58 +0000
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It doesn't Matter if the person heading the company is an Indian or a foreigner , what matters is the value the person brings to the table - in terms of experience , exposure to a large scale global operation,contacts and compatibility in terms of the company's vision for the future.In short the new CEO should be able to add significant value and growth to the organisation.  


By Pradeep Thomas Abraham, Managing Director, Paytronic Network pvt Ltd  | 02 17 2010 09:40:17 +0000
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If we can head forginers company why not indian company is headed by others.


By IRFAN AHMAD, Mechanical Engineer-HVAC, MISTRAL AIRCONDITIONING PVT LTD  | 12 18 2009 06:14:06 +0000
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This is a world which trancends boundaries. In the not so near past we only heard abt takeovers & mergers in the West. But now the Indian cos r also taking over the cos of the west. Many western cos r now headed by Indians. So y cant an Indian co be ruled by an expat. The only diff it will make is in the mindset of the ordinary Indians and their perception work. The TATAs has themselves divulged tt now 65% of their earnings r from outside India. So why r we now calling it an Indian co. It is an MNC with at par its global compatriots. So I feel tt a foreigner taking over the reign may be foreign notion to us but in the not-so-distant future it will be a reality. Further, do we object to Ms. Sonia Gandhi taking the reign of the oldest party of India - the Congress. 


By sanjay dey, Tax & accounting , Consultatnt  | 11 26 2009 06:30:02 +0000
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Yes Why not?

If reputed international companies are headed by Indians, the Indian companies also can be headed by foreigners. Talent and experience should not be differentiated by nationality


By Murali K Balla, Technical Support Manager Atkins  | 11 20 2009 13:15:26 +0000
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With globalisation and Indian born managers at the helm in Pepsi and Citibank etc. There is no need to differentiate the best managers as Indians and Foreigners. Already many Indian companies are owned by FII (about 20% already) and all Indian companies should now get the best possible talent from across the globe rather than looking within family.


By Prasad PN, Consultant, Trainer  | 11 20 2009 11:24:32 +0000
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Its g8, as whenever we induct some briliant at top slot its always give benefit. When Indira Nui @ pesico can do it why cant other nationals can do the same on the base of merits


By Dushyant Hada, Territory Manager  | 11 20 2009 11:11:21 +0000
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1

I believe Indian companies, and society as a whole, would benefit. This is because Indian companies are becoming more global in scope.

Just we foreigners need to understand Indian culture and society more in-depth, Indian people and companies would benefit from understanding people and countries with which they are doing business with. I call this cross-pollination, for the benefit of all.

 

 

 

 

 

 


By Robert Moore Bernardos, Senior Finance, Operations & IT Executive - advisor to foreign investors  | 11 20 2009 09:36:30 +0000
1
0

If you ask should the Indian companies.. I would answer NO.. but if it is can a foreigner be the head of.. I would answer yes!.. If there is talent why should we restrict saying him/her as an expatriate?


By Vishnu M., Head - Software QA/QC , UAEEXchange & Financial Services Ltd.  | 11 20 2009 07:20:11 +0000
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If it's through merit then it's fine otherwise it's needless. There are many examples of Japanese & Korean companies that have always been headed by natives and are doing just fine.


By Suvrajit Gangopadhyay, B.E. (Elex. & Comm.)  | 11 19 2009 18:00:56 +0000
1
0

I have to disagree with Gargi on the point that Indian employees wont prosper or come up. If a person like Mr. Tata can have an organization that is so amazing that foreigners want to be his successor I think Indians will still make it big. Also look at companies around the world, there will be atleast one Indian with a big post in every decent sized company. If they can do so abroad why will they not do the same in India.


By Ajay Kuruvila, Business Development Executive, Data Software Research Company  | 11 19 2009 09:04:58 +0000
1
0

I agree with Darshana. He shouldn't look at cast or creed for selecting a successor. I think Tata is one of those rare organizations that believes in upholding their values...No bowing down to anybody to get work done... I think thats amazing and so it would be against their values to judge people based on where they're from or who they are. Now coming to the topic should Indian companies be headed by foreigners. It will be hard for foreigners to adapt to the Indian aspect of business but like Mr Tata said business is coming to India...Why not outsource the head posts to get more business into India... I believe that all over the world including India there is a huge affinity to people abroad(Foreigners).


By Ajay Kuruvila, Business Development Executive, Data Software Research Company  | 11 19 2009 09:00:15 +0000
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barring parsi bosses( parsis are beyond compare   .. humane businessman) e.g. ratan tata , godrej ,you can so all.parsis ...rest  ..i believe foreigners sould take over ..


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 11 19 2009 07:34:55 +0000
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...foreigner .....


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 11 19 2009 07:31:39 +0000
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We the Indians are very talented and hard working. When it comes to top positions of (particulalrly Indian) companies why we should leave it foreign nationals. Are foreign companies like MS,IBM etc are ready to install Indian as CEOs. This is because, one has to give weigtage to the culture and traditions of the individual nations. Though we are globalised the culture and tradition is restricted to a nation/region.


By ATMA RAM CHAVALI, MANAGER IT, SBH  | 04 05 2010 17:07:22 +0000
0
0

Its more like US administration. Not good for us. Of course the vested interest decides the prime factor to nominate the head. However, its not palatable to taste.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 03 18 2010 17:52:34 +0000
2
1

I also agree wit you, because after all, we´re human and feelings, culture and history play a big part, either consciously or not, on our decisions.

I would like to point out one thing, though: being the potential powerhouse India is (based on my knowledge of having been to India many times, and having worked for an Indian company), India and it's people have the opportunity of not becoming yet another western-style economy, with the same management structures and inherent liiations, but of creating and establishing a new way, a new style.


By Robert Moore Bernardos, Senior Finance, Operations & IT Executive - advisor to foreign investors  | 02 18 2010 10:04:24 +0000
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Dear Robert,

Agree with you completely Nationalities should not be allowed to interfere in business. Yet, facts historical and to an extent still pursued by a few continue to project differently and are responsible in many a decision. Remember the case of Orient Express and Tata Group or the Corus Steel etc.just to cite a few.

In any case years of working as dictated has its affect and may require some changes and time to bring parity. 


By Ravindra Sharma, Managing Consultant, CHEF-India  | 02 18 2010 09:48:40 +0000
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Dear Darshana,

Hope and would want to believe it is as simple as being mentioned.

Do you see a possibility that we are still slaves in mind and thus better manageable this way or Indian Mangers have not been able to match up to the mark.

Whatever said or not finding mention Mimicry, Sycophancy, Short sightedness and Ego-first are some traits that most Indian Managers may require to shed to grow in real terms. Encourage Open ear & minds while broadening the vision. 


By Ravindra Sharma, Managing Consultant, CHEF-India  | 02 18 2010 06:23:29 +0000
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I totally support Gargi`s arguement here.Indians are quiet capable of heading `ANY` company be it Indian or M.N.Cs like Pepsico or Citibank.Thank you Gargi once again for posting such clear-cut views.


By Arunangshu Choudhury, Agent, L.I.C  | 01 09 2010 17:38:26 +0000
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1

I think that the basic assumtion that Western Business models or Western business leaders or employees are superior to Asian ones or Indians,has been Demolished for all time.Indians have proved that they are more talented,quicker learners,more tech saavy and hardworking than most Westerners.In other words,Indians are more capable.So when the whole world is outsourcing the most critical tasks to Indian companies,the question of appointing Westerners to head them should not have arisen!


By Arunangshu Choudhury, Agent, L.I.C  | 01 09 2010 17:29:47 +0000
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We Indian people are hardworking people since from school as compare to foreign countries where even 8th standard student use calculator for simple sum.

so i do not think that is very good.we indians are very calculative,before implementing any new plans we think twice.while the pshychology of foreign people are totally different then us.

So.i think if company earns maximum from india then it is not good thing to give a command to foreign person.

But, in case of tata, according to company its 65 percent of income come from foreign. so in that case it depands on thinking.

but according to me indians are best in the world in straregical thinking so that we are less effected in this recession too.


By Bhavit , B.Tech/B.E. student, Parul institute of Engg & Tach, Gujarat University,Baroda  | 12 09 2009 09:50:34 +0000
1
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India has good men power and the culture of India is different form other country we welcome our guest but the company head should be Indian so that they can feel that its our own person and can do good for us.


By Mohammadarif.A.Shaikh , Consultant, My Learning Centre (CALORX)  | 11 20 2009 13:15:25 +0000
3
1

I don't think it's a good idea as far as Tata Empire is concerned. Jameshd Ji started Tata venture not to make money but to give India a sound Foundation. Tata Enterprise is emboded with cultural & ethcial values of India, where it'll be very dificult to be understood by a foreinger. A foreign head will not be able to mingle with the philosiphy of the company. apart from this i strongly believe in the same opnion posted by Gargi. India has abundent talent within itself. It'll be the biggest disappointing decision to hire a foreign head for Indian company, where foreign companies are hiring Indian heads for foreign company.


By Nilesh Godle, HR & Training Executive , Boutique Hotels India Pvt. Ltd.  | 11 20 2009 07:36:26 +0000
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It is not at all a good idea. Indian companies should not at all be headed by foreigners. If it is done, then our talents won't get chance to come up. Not only that, foreigners won't understand the different ethical backgrounds the Indian employees come from so won't be able to be a good leader thus there won't be a good communication between leader and employees which will definitely won't be good for the organisation.


By Gargi Sinha, Senior Consultant, Hewitt Associates  | 11 19 2009 07:27:41 +0000
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