SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

IHRM, ASSIGNMENT NO. 1

TAPIO OYJ IN INDIA

Submitted to
PROF. KINGSHUK BHADURY

Submitted by
NIKITA
KAUSHIK E-37
20020441164
 TAPIO OYJ IN INDIA
BACKGROUND
 Tapio OYJ was a company engaged in software design for mobile telephones in Helsinki.
It was well reputed in the telecommunications industry as one of the most innovative
companies in this field.
 Since India was one of the fastest growing mobile phone markets in the world, the
company had decided to set up a small consultancy operation in Bangalore.
 In 2008, two persons from the headquarters were assigned to set up operations in
Bangalore. They were Olavi Makinen, who had been COO of one of Tapio's business
groups in Finland and Anniki Virtanen, one of the senior designers in the company.
 Tapio had a consultancy contract from a leading Finnish manufacturer of mobile phones
Kimmo a leading mobile player in India, for improving the user interface for its ordinary
mobile phones.
 Tapio set up shop in India as it believed that it could hire high quality Indian software
specialists at a cost advantage. India's market growth a lot of potential for continued
projects.
 In three months, by April 2008, the company had twenty-five top professionals on board.
Anniki Virtanen headed the design team.
PROBLEMS FACED IN TAPIO OYJ: An analysis using Hofstede’s cultural
dimensions theory
Hofstede's cultural dimensions theory is a framework for cross-cultural communication,
developed by Geert Hofstede. It shows the effects of a society's culture on the values of its
members, and how these values relate to behavior. The framework consists of 6 Dimensions,

namely, Power distance index (PDI), Individualism vs. collectivism (IDV), Uncertainty
avoidance (UAI), Masculinity vs. femininity (MAS), Long-term orientation vs. short-
 term orientation (LTO) & Indulgence vs. restraint (IND).
I. POWER DISTANCE: The extent to which the less
powerful members of institutions and organisations within
a country expect and accept that power is distributed
unequally.
Finland: This dimension has a low score (33), indicating that the
Finnish style is characterized by the following:
 Being self-sufficient, flatter organizational structure,
equal rights, superiors who are accessible, coaching
leaders, and management that facilitates and empowers.
 Managers rely on the experience of their team members
because power is decentralized.
Control is loathed, and bosses are addressed by their first
names alone. Direct and participatory communication is used.
India: India receives a high score of 77 on this category,
suggesting a Respect for hierarchy and a top-down system in society and business.
 Professionals rely on the boss or the power holder for direction, accept unequal rights
between the power-privileged and those lower down the pecking order, immediate
superiors accessible but one layer above less so, paternalistic leader, management
directs, gives reason / meaning to one's work life, and rewards employees in exchange
for loyalty.
 Real power is concentrated in a few hands. Control is comfortable, even reassuring, and
supervisors are treated with respect.
Communication is top down and directive in its style and often feedback which is negative
is never offered up the ladder.
PROBLEM AREA- Practice of Hierarchy & Bureaucracy
i. Hence, (Olavi) Makinen who came from a country with flat organizations was
uncomfortable in being addressed as Sir and being “shown” high regard by Indian
Professionals who thoroughly practiced hierarchy.
ii. It was also because of this reason, that Mr. Rao & Dr. Iyer hesitated in speaking
objectively and freely with Makinen, for they were apprehensive of saying something
“wrong” to their boss and instead, tried to please him with their words but their
actions.
iii. Similarly, (Anniki) Virtanen had an experience with her team members agreeing to
what she said because she was their boss and trying to impress her with keeping
unrealistic deadlines that they could not fulfill. It was this lack of clear dialogue
between the two, with Indian Professionals not making any amends but doing things
as per their convenience, which made Virtanen question her entire exercise of being
in India.
II. INDIVIDUALISM V/S COLLECTIVISM: The degree of dependency that a society's
members have. It all comes down to whether people define their self-image in terms of
"I" or "We." Individualist civilizations expect people to look after only themselves and
their immediate family. People in collectivist cultures are members of "in groups" that
look after them in exchange for their loyalty.

Finland: Finland is an Individualist society, with a score of 63.

 This indicates a strong preference for a loosely-knit social

structure in which people are solely expected to care for
themselves and their immediate family.

 In Europe, Finland has the largest proportion of quarter lifers

(twenty-year-old) who have left the nest and no longer live with
their parents.

 The Finnish culture is more egalitarian/common-suffrage &

centered on the nuclear family.

 The employer-employee relationship is a contract based on mutual benefit, hiring and

promotion choices are expected to be made only on merit, and management is individual
management.

India: India has a lower score of 40, which makes it a Collectivist society.

 The collectivist side implies a strong desire to be a part of a bigger social framework
in which individuals are expected to operate in the best interests of their specified in-
group (s).

 The Indian society is centered on joint-families.

 In such instances, different ideas such as the opinions of one's family, extended
family, neighbors, work group, and others impact the individual's actions.

 Being rejected by one's peers or being despised by one's extended and immediate in-
groups leaves a person feeling rudderless and a sensation of deep emptiness. The
employer-employee relationship is one of expectations based on expectations, with
the employee pledging loyalty and the employer providing virtually family security.
  Relationships, which are central to everything in a Collectivist society, are frequently
used to make hiring and promotion decisions.

PROBLEM AREA 1- Gap in communication:

i. It was seen that the Indian professionals weren’t very comfortable conversing with
Makinen & Virtanen, since they would usually remain quite in the meetings, but
would have active conversations amongst themselves, since they did not identify with
the Finnish professionals culturally, as well as the fact the latter were the bosses.
ii. Finns, on the other hand are known for their reserved nature, non-indulgence in
small talk & heightened sense of personal space which can often make them appear
unapproachable.
PROBLEM AREA 2- Non-Cooperation amongst Professionals:
iii. Due to a difference in culture & backgrounds amongst the Indian professionals, there
were groups forming within the company that were at loggerheads with each other.
iv. These group were divided on the basis of their cultural backgrounds and states, such
as Mr. M P Rao and his team of Kannad Professionals who would not corporate with
Dr. Ram Iyer who had years of experience in Motorola, both in India & Abroad
because he was from Tamil Nadu along with many members from the design time.
v. The members from other states of India felt more isolation since they were away from
their respective hometowns and couldn’t identify with members of south Indian
states/locals.

This formation of groups was due to increased collectivism amongst professionals

belonging to particular culture.

III. UNCERTAINTY AVOIDANCE (UAI): The extent to which

the members of a culture feel threatened by ambiguous or
unknown situations and have created beliefs and institutions
that try to avoid these.

Finland: Finland has a high tendency for avoiding ambiguity,

scoring 59 on this category.
 Uncertainty Avoidance is strong in countries that maintain
rigid norms of thought and behavior and are intolerant of
unconventional behavior and ideas.
 Time is money in these cultures, people have an innate drive to
be busy and work hard, precision and punctuality are the norm, innovation may be
rejected, and security is a key aspect in individual motivation.
 Perfection is sought.
India: India has a relatively low preference for avoiding ambiguity, scoring 40 on this
dimension.
 There is an acceptance of imperfection in India; nothing has to be perfect or go according
to plan. India has a long history of being a patient country, with a strong tolerance for the
unexpected, which is even embraced as a welcome change of pace.
 People in general do not feel compelled to take action and are content to settle into
established roles and routines without question. Rules are frequently in place solely to be
circumvented, and one must rely on creative means to “get around the system.”
PROBLEM AREA- Punctuality:
i. Makinen called for team meeting every Monday Morning at 9AM to take update on
projects.
ii. However, after the first couple of weeks, The Indian professionals turned up late to
the meetings, which was a pattern that continued even after a few gentle remarks
made by Makinen.

IV. MASCULINITY VS. FEMININITY (MAS)- In this

dimension, masculinity is defined as "a preference in society
for achievement, heroism, assertiveness and material rewards
for success". Its counterpart represents "a preference for
cooperation, modesty, caring for the weak and quality of life".
Finland: Finland receives a score of 26 on this dimension, indicating
that it is a Feminine society.
 In feminine countries, the emphasis is on "working in order to
live," managers strive for consensus, and people place a
premium on equality, solidarity, and quality in their
workplaces.
 Compromise and negotiation are used to resolve conflicts. Free
time and flexibility are preferred incentives. Women in feminine societies, share modest
and caring views equally with men.
 In Finland, labor force participation of women as of 2018 was 64.4% with
employment rate bring 70.8%, Literacy rate being a 100%,
 There is gender-parity in having equal pay and benefits in its twenty most-common
occupations. The Finnish women are often described as strong-willed, adventurous,
fearless and great leaders.
 Their position in Finnish society and business, is superior to that of women in most other
cultures: Asian, African and Arab women play virtually no part in business.
 The equality of the sexes in Finland is a functioning reality. The women are
communicative, exploratory, and directly engaging
India: India receives a 56 on this scale, indicating that it is a Masculine society.
In terms of external displays of success and power, India is actually incredibly Masculine. In
India only a miniscule 20.7% women are in the labor workforce, with female literacy rate
being only 70.3%.
 This often prevents people from engaging in Masculine displays to the amount that they
would otherwise. The emphasis in more Masculine countries is on success and
accomplishments, which are acknowledged by financial rewards.
 Work is the focal point of one's life, and tangible indicators of success at work are quite
significant.
PROBLEM AREA- Sexism
i. Due to a patriarchal construct of the society in India, not a lot of women enter the labor
force and most of them are home-makers. It is also this mindset that doesn’t let a lot of
men see women as equals or capable of leading them.
ii. This is very evident in Virtanen’s lack of identification with Indian women who are part
of a joint family system and have perils of being home-makers, while the Finnish culture
is more egalitarian & centered on the nuclear family.
iii. In most traditional homes in India, Women and girls are expected to conduct themselves
in a modest-manner such as not speaking to men openly or loudly or indulging in alcohol,
which is unlike Finland, one of the most equal societies in the world.

V. LONG-TERM ORIENTATION VS. SHORT-TERM

ORIENTATION (LTO): This dimension describes, how
every society has to maintain some links with its own past
while dealing with the challenges of the present and
future, and societies priorities these two existential goals
differently.
Finland: Finnish culture can be classed as Normative due to its
low score of 38.
 People in such civilizations are preoccupied with
establishing the absolute Truth; their thinking is
normative.
 They have a high regard for tradition, a low proclivity
to invest for the future, and a strong desire to get
immediate results.
India: A dominant preference in Indian culture cannot be determined with an intermediate score
of 51 in this factor.
 The concept of "karma" is central to religious and philosophical thought in India.
Because time is not linear, it is not as significant to Asian society as it is to Western ones,
which score low on this dimension.
 India, for example, has a high level of tolerance for religious beliefs from all over the
world. Hinduism is frequently seen as a philosophy rather than a religion; it is a
collection of ideas, viewpoints, practises, and esoteric beliefs.
  There is an understanding in India that there are many truths, and that they often rely on
the seeker.
PROBLEM AREA- Cultural Idiosyncrasies: India is a diverse country with many people
believing in astrology, superstitions & Godmen. Many a times, these cultural idiosyncrasies
can pose as obstacles for important events and do not have any merit. The Finnish were of
the opinion that as they were a company dealing with modern technology, operating with
expert professionals, bowing down to superstitions and astrologers was redundant.
VI. INDULGENCE VS. RESTRAINT (IND):  This dimension
relates to the degree of freedom citizens have in satisfying
their human desires as a result of society norms. "A culture
that allows relatively unrestricted fulfilment of basic and
natural human impulses related to enjoying life and having
fun" is how indulgence is defined. Its polar opposite is defined
as "a society that governs and manages the satisfaction of
demands through the use of stringent social rules."
Finland: Finland is classified as an Indulgent country due to its
comparatively high score of 57.
People in communities with a high Indulgence score are more likely to
follow their instincts and wants when it comes to enjoying life and
having fun.
They have a good mindset and a proclivity for optimism. Furthermore,
they place a larger value on leisure time, acting as they please and spending money as they
please.
India: In this area, India earns a low score of 26, indicating that it is a culture of restraint.
 Cynicism and pessimism are common in societies with a low score on this area. In
addition, unlike Indulgent civilizations, Restrained societies place less importance on
leisure time and exercise greater control over the fulfilment of their needs.

 People with this viewpoint believe that their behaviors are constrained by social norms,
and that indulging themselves is unethical.
PROBLEM AREA- Sexism:
i. Women and girls are expected to behave modestly in most traditional Indian houses,
such as not speaking to men openly or loudly or indulging in alcohol, in contrast to
Finland, one of the world's most egalitarian countries.
ii. It was due to this that Virtanen came across as rather forward to the Male Indian
Professionals for sharing a drink with them even though her intentions were only to
be a friendly & approachable leader.

PROBLEMS THAT KAARINA KOSKINEN COULD BE FACED WITH:

1. Ethnocentrism: People's predisposition to see their own culture as superior to all others, and
 to judge other cultures according to their own standards and ideals. It evaluates other
cultures' behaviors and ideas in terms of their own culture, claiming that their culture is
superior to all others. Ethnocentrism also creates an “us versus them” mentality that can be
detrimental. This can also lead to Self-Referencing which means judging another person’s
culture by own’s yardstick.
This holds true not only with respect to the discontent between the Finnish & The Indians
but also various groups from different states such as Tamil Nadu, Karnataka & the North
Indians within the company.

2. Stereotyping: It’s also common to rely on oversimplified clichés about people from
different cultures. In fact, there are quite a few cross-cultural trainings in the market that are
focused on memorizing cultural differences and can reinforce stereotyping. While learning
about differences can be useful as a starting point, individuals are unique; you can never
predict a person’s behavior based on his or her nationality. 
Indians are god-fearing and have great respect for culture & religion, though it could
vary from individual-to-individual. Considering people devoted towards their religion also
superstitious is a common stereotype that the expatriate must flex.

3. Conflicting values: The Indians & Finnish have differing views & behaviors which
often form the tip of the iceberg of their culture.
 Task oriented vs. relationship oriented – While The Finnish are more reserved in
nature, have a high value of their personal space, Indians like indulging in
communication with people they are comfortable with in order to build relationships.
 Egalitarian vs. hierarchical- Team members from more egalitarian countries, like
Finland may be accustomed to voicing their unfiltered opinions and ideas, while those
from more hierarchical cultures such as India tend to speak up only after more senior
colleagues have expressed their views.
This can lead to stifled or ineffective dialogue while discussing areas of problem
with respect to the organizational culture.
4. Communication Barrier- Speaking clearly and leaving no space for misinterpretation is a
sign of professionalism in countries like Finland. People in countries like India like to
interact indirectly. Problems are approached through a series of ambiguous references.
The risk is that Anniki & Olavi who are from a direct culture may come across as
insensitive, while Mr. Rao & Dr. Iyer from an indirect culture will come out as
imprecise.

These problems can be overcome by Kaarina Koskinen by facilitating dialogue between the
Finnish & The Indians & helping them embrace each other’s working styles & cultures.

ADVICE FOR OLAVI:

1. Determine whether a given trait or behavior is a job necessity:
If one wants their staff to perform successfully, they must accept some cultural differences with
them rather than trying to change them. However, there are some cultural challenges that are
crucial to your company and to which individuals from other cultures will need to adjust if they
are to succeed in the workplace. A sense of urgency and punctuality are two examples. In order
to create a productive work environment, it is the role as the manager to identify which cultural
differences are acceptable and which are not. Since superstitions hamper productivity or
occurrences of important events, they must be discouraged while making the professional aware
that their sentiments are nonetheless respected.
Hence, the importance of punctuality must be explained to the professionals.
2. Determine whether you can accommodate the cultural difference in a reasonable
manner:
Some cultural variations, such as an employee's willingness to face their employer, can be
addressed by modifying the situation's circumstances. Since, in India, due to hierarchical
construct with power disparity, professionals aren’t comfortable in giving direct feedback, it is
necessary to explain to them the importance of feedback & how it would only help in rectifying
problems at a faster rate & lead to less future errors with success of the project.
3. Determine the most effective way to accommodate the cultural disparity: Indians are
more concerned with the collectivism than with the individualism since they seek approval
from their families, peers, colleagues & friends.
It is this sense of collectivism that must be appealed to when accommodating cultural
disparity between the groups since the team’s goal should realign with that of the
organization’s that would lead to the success of the project. Hence, dialogue must be
encouraged to work differences out amongst themselves.

4. Define Workplace Parity: Indians do not have more than 20% of females participating in
the labour force, hence it could be a little difficult for men raised in a patriarchal society to
see a female as their boss since they use SELF-REFERENCING from their own culture
here where women are mostly confined to homes and modesty is a way of life for them. A
dialogue must be initiated with the team to make them aware of their female boss’s capability
and she is here because of her caliber. Men must be promoted as the brand ambassadors of
change at their workplace.
Knowing how to establish an inclusive work environment that allows all employees to attain
their full potential is one of the challenges of having a diverse workforce. Managers must
affirmatively determine where language and cultural differences may be tolerated in the
workplace and where they cannot.
More significantly, a manager's job requires them to work with, though, or around these
disparities in order to assist employees reach their full potential. When certain employees try to
manipulate the system by utilizing their language or cultural variety as a barrier, they may need
to be confronted directly in order to attain their full potential.

REFERENCES:
Country Comparison - Hofstede Insights (hofstede-insights.com)
https://www.relocatemagazine.com/articles/international-assignment-cultural-challenges-in-
india-for-the-international-assignee
https://www.brosix.com/blog/cultural-barriers/
https://en.wikipedia.org/wiki/Culture_of_Finland#Etiquette
Geert Hofstede site CV work life theory 6 dimensions of culture Gert Jan
BOOKS:
Finland: Cultural Lone Wolf by Richard D Lewis