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India's management capabilities only second to U.S.

si Team
Wednesday, August 1, 2007
si Team
Here is good news for the managers and would be managers of MNCs in India. According to a survey by McKinsey, a strategy consultant, and the London School of Economics, management capabilities of multinational manufacturers in India are second only to equivalent companies operating in the U.S. The findings reflect the level of resources directed towards India by many global manufacturers, attracted by good economic prospects as well as their success in hiring highly skilled local workers.

However the high score for the management standing of multinationals is in stark contrast to India’s local status in terms of operational practices of all India-based manufacturers, including locally owned businesses. In the study of 4,000 medium sized manufacturing businesses across 12 countries, India comes bottom in terms of the management performance of all companies.

As per Stephen Dorgan, a McKinsey partner and one of the study’s authors, by implementing good management practices multinationals can rise above the weaknesses of the countries they are operating in. If you are one of the brightest and best in India, a company with a good global presence will attract you.

India’s historically weak economic performance and restrictive government rules that have been eased only in the past decade contribute to its poor position in the overall league table of management skills of all companies.

The survey included some multinational subsidiaries and independent businesses. The U.S. scored the highest for management capabilities of all manufacturers, followed closely by Sweden, Germany, and after a substantial gap, the U.K.

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