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TESCO ENTERING THE INDIAN MARKET

1.0 INTRODUCTION:

Tesco is Europe's second largest supermarket after the French firm Carrefour, and
according to Mintel market research in 2004, Tesco is closing the gap. It is the fourth largest
supermarket in the world. Tesco operates 2,318 stores in 12 countries around the world and
employs 326,000 people, 237,000 of them in Britain where it is the largest private employer. It
operates 1,878 stores in the UK, 261 stores in Europe and 179 stores across Asia and plans to
open 184 stores worldwide over the next year.

1.1 SIGNIFICANCE OF THIS PROJECT:

After grabbing a major share of UK retail market, moving into the international market
will be a good marketing strategy as it gives the organization a scope to expand its business
horizon, as it had already entered into 12 different nation markets, it will be a great move for
Tesco to enter Indian market, where the economy is booming and the opportunities to take a
good percentage of retail market is possible.

In 21st century, human resource had become the back bone for the companies, they
play a vital role in uplifting the organization and at the end of 2003 Tesco had been voted on the
top as “the Ability to Attract, Develop & Maintain Top Talent”

2.0 RECRUITMENT:

According to Edwin B. Flippo, “recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the organization”. Recruitment is the
activity that links the employers and the job seekers.

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2.1 ORGANISATIONAL HIRERACHY OF TESCO :

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2.2 JOB ANALYSIS:

What is job
analysis?

It is the process of analyzing the job.


This process is done before advertising
the vacancy. The job analysis consists
of two parts. They are:

Candidate Job
definition definition

2.3 JOB ANALYSIS FOR THE POSTIONS IN TESCO:

• In the head office the job would be more on decision making.

• In the branch offices and stores the job would be falling into the middle level of
management

• The duty managers and team leaders role are intermediary in nature

• Though customer assistant is in the bottom line they are the crucial resource for Tesco.

2.4 THE JOB AND CANDIDATE DESCRIPTION:

This process involves the person specification and the job specification. The person
specification can be done using Rodger’s ‘7 point plan’ (Alec Rodger, 1985)

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2.5 PERSON SPECIFICATION OF TESCO:

2.6 JOB DESCRIBTION:

Job description is where the personnel applying for the job are given a clear picture of
what is expected of them, to successfully complete the job.

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• The top management’s main job will be to assess various pros and cons and take crucial
decisions for Tesco. Since the Tesco’s are just now entering the Indian markets, the top
management is expected to take some crucial decisions of how to capture top position
and venture in to other Indian cities.

• The area managers job would be to see to if the stores in his area are managed, and are
reaching the customers in an efficient way as well as suggesting various changes or new
ideas to the top management to improve the organization.

• Store managers job is to run the store smoothly and in an efficient way and the same as
area managers but in a lower level. He should manage to achieve the target set up for
his store.

• Duty managers, team leaders are in charge of day to day happenings and managing the
customer assistants in regard to running a smooth store.

• Customer assistant job would be to reach the customers on personal level and to assist
them when required.

Once the recruitment process is completed, the selection processes comes into play. Selection
is the process of choosing the ideal candidate.

There are many tools used for selection, they are:

Selection tools

1. Interviews

2. Aptitude tests

3. Performance test

4. Group test

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Usually in Tesco, aptitude tests are conducted followed by interviews to select the
suitable candidate. But for higher levels of the hierarchy it is the experience that counts the most
and the eligible candidate is interviewed, given a group test and performance test so that right
person is selected for the right job.

A proper recruitment process removes the pressure on the selection process as


requirements of the candidate are clearly mentioned. This will cut down the number of
applications. The recruitment and selection process should be a rational and logical process but
it is always not so, because power and influence can impact the process (Robert G, Gatewood,
2007).

2.7 TRAINING AND DEVELOPMENT:


In this 21st century, needs and requirements of the organizations change every day, it is
just not enough to recruit the right candidate for the job, but it is important for the organizations
to train these employees by imparting specific skills so that their potential is used to the
optimum level in benefit of the organization. Development refers to learning opportunities which
helps the employees to grow. Training and development complement each other. HRD’s are
now paying a major role in helping the employees as well as the organization to grow
considerably by training the employees not only technically but also personally. Shown below is
the classic training cycle which is followed in most of the organizations (Thomas G. Cummings,
2008)

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Classic
training
cycle

REASONS BEHIND EMPLOYEE RELUCTANCE TOWARDS TRAINING:

• Employees may be reluctant to changes

• They lack motivation

• They are not comfortable to adapting changes or new technology

• They may have psychological obstacles like ego problems to sit for training
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• They may not be interested if training becomes monotonous and is not leading to personality
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As mentioned before training and development goes hand in hand , and in this ever

Changing and ever growing business world the organisations including tesco had understood
the importance of development of the organisation is through development within the
organisation itself. That’s the reason tesco along with its various tools of training like,

This training is done at the beginning and employees are refreshed every six
months.Tesco is also laying a platform for the development within the organisations by having
programmes like graduate programmes where the employees can apply for a new job in the
higher position if they gradute and qualify for the job.

3.0 TEAM WORK:

For TESCO entering into the Indian market is a way huge task which can be completed
only by working in groups or teams. Teamwork is defined as the compilation of individual action
to achieve a common goal or purpose, which lowers the individual needs to the group needs. In
essence, every individual in a group keeps aside his/her personal needs and employs to
achieve the objectives of the larger group. Teamwork is essentially needed to complete a multi-
dimensional task. A team approach always motivates the individuals with interpersonal skills, to
coordinate his/her efforts. The success of a team is the impact of integration and involvement
contributed by each person in a team.

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The above figure portrays the various levels of teamwork involved in achieving different
level of goals (Gibson, Terry L. 1980). In order to achieve a larger goal, a high level of
interpersonal skills, integration, and involvement is required. Team members at all levels should
be motivated against the team goals through proper planning, training and providing appropriate
feedback.

Globally TESCO is the third largest super market and it would need an effective team to
promote its product in India. The development of an effective team is the most important and
complicated task in the process of a corporate expansion. The following diagram shows that
how a manager can build an effective team through setting goals, planning the tasks, allotting
the resources, and assessing the performance against the goals.

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Set
Obtain
organizational
commitment of
objectives team and
individuals

Training and
development
activities

Setting a goal which is achievable, clear and proper allocation of resources is the initial
task which requires a high level of interpersonal skills and also sufficient time (Pearce, Sue and
Cameron, Shelia, 1994). A comprehensive planning is needed for the accomplishment of the
goal and there should be an appropriate communication and consultation between the team
members at every level. The managers at each stage should monitor the changes which might
affect the accomplishment of the team goals. The changes that might affect the team objectives
could be at a team, individual, environmental, organizational, legislative, departmental, or
economic level.

3.1 CLASSIFICATION OF GROUPS:

Researchers have found the existence of two kinds of group namely Formal group and
Informal group in every organization (Artemis. C, and Prashant .B, 2001). The groups which are
set up by the organization’s management to execute the organizational goals are called Formal

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groups. Those groups which are developed by the employees in accordance with their self
needs are called as Informal groups.

The goal of TESCO is to enter into the Indian market, to achieve this objective it should
set up a number of formal groups.

3.2 INTRA GROUP CHARACTERISTICS:

The different kinds of groups that can be employed in TESCO has briefly discussed in
the above section. In addition, a group also has certain characteristics called intra group

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characteristics. It is mandatory for a manager to aware of such group characteristics before


setting up a team/group. The intra group characteristics are Group norms, Cohesion, Group
development, Group think, Risky shift, and Social loafing.

GROUP NORMS:

The set of regulations which appropriately governs the behavior, attitudes, and opinions
of a group is called as Group norms (Hahn, Martin 2007).

• They exercise substantial influence over group members

• They keep up group identity; regulate social communication and drives estimated
behavior.

• The group norms can include dress code, output limits, and social interactions.

• Task norms cover the quality standards, work performance, and may deviate from the
organizational expectation.

• Maintenance norms support group identity and cohesion

• Relationship norms support the attitudes and behavior to outsiders.

• The process of obtaining the norms is called as socialization.

GROUP COHESION:

Group cohesion is a factor which determines the togetherness of group it is also known
as team spirit or ‘esprit de corps’ (Artemis. C, and Prashant .B, 2001). Strong group cohesion
will improve the group strength and stability. Weak group cohesion can split the group
togetherness.

• The level of group cohesion is given by the size of the group. Generally a small group
will have more cohesiveness.

• Cohesion can be acquired through gender, faith, skills and experience.

• Group cohesion is an advantage in case of complementary goals to the organization.

• Group cohesion can produce a positive impact by providing social satisfaction and
mutual support.

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• Cohesive groups may not be opened new members.

GROUP DEVELOPMENT:

Bruce W Tuckman (1965) identified 5 stages involved in the process of group


development. They are Forming, Storming, Norming, Performing, and Adjourning.

GROUPTHINK:

Irving Janis (1980) proposed a theory on group decision making called groupthink. The
key point of groupthink is that the group members lose their critical evaluative capabilities due to
the tendency of highly cohesive groups. The aim of this theory is to create awareness about the
effects of groupthink on group decision making.

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RISKY SHIFT:

Risky shit is a phenomenon which weakens the ability of group decision making. Risky
shift makes the group radical and increases the willingness to take risk (Johnson, Phillip M.
2001). The groups tend to take more risk than individuals alone. Due to,

• Existence of persuasive and powerful risk takers in a group

• Due to high degree of ambiguity group member responsibility is diffused

• Exhibiting a Macho culture

• Some group can be over cautious

• De-individuation which makes the group to lose its identity.

SOCIAL LOAFING:

Social loafing is the tendency of group members to underperform particularly where


individual contribution is difficult to identify (Piezon. Sherry L, 2005). It occurs when an individual
does not contribute an equal amount of work and yet shares the groups benefit.

Social loafing can be prevented by,

• Developing rules of conduct

• Establishing self accountability

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• Creating groups of appropriate size

• Encouraging group loyalty

• Implementing peer evaluation

• Evaluating the progress

4.0 LEADERSHIP:
In the past leadership was more associated to the “power of controlling others”. But,
nowadays the concept of leadership has changed a lot. Today we all belong to a knowledge
based society, hence the power to create or innovate a new product or a new process and to
promote it is seen as a basis of leadership.

4.1 IMPORTANCE OF LEADERSHIP:


There are certain teams that have tasted success without a leader or manager, but
many do not. According to Richardo Semler there are certain factors that are more important for
a team than a leader. These factors are equal distribution of profit, democracy, information etc
( Richardo Semler, 1989).There are also groups in which the members act as their own bosses.
These members are called as super leaders, as they lead themselves and such teams are
called as ‘self managing teams’ (Charles C. Manz, 1990).But according to many researchers,
there can be no teams that can be successful without a leader. The leader of a team can in the
form of a coordinator, coach or a facilitator.

4.2 WHO LEADS THE TEAM IN TESCO?


In Tesco the hierarchy of employees can be represented as:

Regional manager
Area manager
mma
nager
Store

Duty

TeaTs
Team leader

Customer assistant

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4.3 LEADERSHIP THEORIES


1. TRAIT APPROACHES:
For many years the traits theory dominated other theories. According to Sir. Francis
Galton leadership qualities are inherited characters. Intelligence, self confidence, alertness and
physical characters such as height, body built up, age, complexion etc were believed to be the
traits of a leader.
2. BEHAVIOURAL APPROACHES:
During 20th century it was also found in many studies that, a person who can lead a
situation, can be efficient in leading all the other difficult situations (Stogdill R M., 1948)

RENSIS LIKERT THEORY:


Dr. Rensis Likert studied the human behaviour within an organisation. He researched
different categories of people in different organisation. In doing this study on leadership he
came up with two styles of leadership.
Leadership

Job centered leadership Employee centered leadership

Job centered leadership:


This leader has more power and his main task is to monitor whether his subordinates
are performing properly and are able to complete the task. He also has to supervise if the work
is being done according to the specified procedure. In order to influence the behaviour of his
follower, he uses rewards and power accordingly.
Employee centered leadership:
This leader plays a supportive role. He is more concerned about the employee
development and group development. He believes that this kind of behaviour will help to
increase the performance of the worker and also the organisation.
Rensis Likert also identified four styles of management that will influence the behaviour of the
worker:

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BLAKE AND MOUTON’S GRID MODEL:


The leadership grid model is considered to be the most practical and suitable model for
the organisations 21st century. The main objective of this model is the concern for people
(motivation, trust, safe work environment and fair payment) and concern for work Such as
organisational goals (Peter G. Guy, 2009)

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Management styles:

THEORY X AND THEORY Y:

Douglas McGregor proposed two models called the theory X and Y. These models were
proposed after studying the other behavioral theories in his book ‘The human side of enterprise’
in 1960.

THEORY X:

This theory states that people in general do not like work on their own. They are very
lazy and a close observer to monitor them while working. This theory can be compared to a
watch dog guiding a herd of sheep. Here leader has more power and uses fear and threats to
motivate workers.

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THEORY Y:

This theory states that, people have self interest in doing work and know their
responsibility. And a manager uses encouragement, motivation, help and opportunities for his
subordinates. These qualities help in personal development and the capacity, creativity and
imagination of the workers can be fully utilised (Ann Marriner, 2004)

In a study conducted by Wegner in 1980 on 227 first line foremen, he found that theory x
type leadership was followed on uneducated foremen while theory y on educated field
independent foremen (Lifang Zhang et al., 2006)

SITUATIONAL LEADERSHIP THEORY (SLT):

SLT was developed by Hersey and Blanchard in 1969. This theory tells that different
leaders arise in different situations.

SLT composed of

Task behaviour Relation behaviour

Directive dimension Socio-emotional dimension

Combination of these two behaviours in right proportion

Solving problem

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SITUATIONAL LEADERSHIP MODEL(LL):

This is the graph showing different levels of the two dimensions that can used appropriately.

CONTINGENCY THEORY:

This model was developed by Fiedler. According to him situation is an important factor in
determining the best style of leadership. He believes that the efficiency of the leader depends
upon the ability of him to modify to modify the situation to solve the problems or achieve the
goals (Andrew J. Dublin, 2009)

Leadership

Relationship oriented Task oriented

The least preferred co-worker scale is used to determine the leadership style. The factors that
determine the environmental suitability are:

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Various situational characteristics:

Highly Highly

favourable unfavourable

Moderately

Favourable

4.4 APPLICATION OF LEADERSHIP THEORIES TO OUR PROJECT:

Making a decision about which leadership approach will be more suitable to a very vast
organisation as Tesco is really a difficult process. Moreover leadership till now is an indefinable
term although much research has been done in this area. Each and everyone will have a
different opinion of what leadership is and each organisation will require a leader according their
needs. One best method to determine suitable leadership is to compare and contrast the
various theories according to our needs.

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4.5 QUALITIES OF A TESCO MANAGER:

STORE OR DUTY MANAGER:

• Since he is dealing with less or moderately educated customer assistants he should


more descriptive in nature and should define all the procedures and process clearly to
his followers.
• He should be able keenly observe the performance of his subordinates because the
customer assistants are those who directly deal with the customers and for a retail giant
like Tesco Customers should be given super importance.
• He should be able to appreciate for good work and also correct the mistakes done by his
subordinates in a suitable manner so that it won’t occur again.

AREA AND REGIONAL MANAGER:

• They are higher officials who indirectly monitor the activity of the lower level employees
through the store manager. Store manager is answerable for the good or bad
performance of his team.
• Since they are dealing with well educated and experienced people like the duty and
store manager they should be more communicative, trust generating, self confident and
analytic.
• They should more task oriented as well as relationship oriented.

These are some of the broad requirements how a leader should be in Tesco, let us compare our
requirements with the theories:

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4.6 MOTIVATION:

Like leadership, motivation is also a vast area, in which, many research has been done
and many theories and models proposed. What is motivation basically? Motivation in work place
is the act of activating someone to achieve the goals.

Motivation

Content Process Reinforcement


theory theories theory

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How the motivation should be in Tesco?

• Motivation can be in the form of praise.


• Economic rewards.
• High level of concession on Tesco products.
• Benefits.
• Paid holidays.
• Employee of the month award.
• Local travel expenses for a week.

4.7 CONTENT THEORY OF MOTIVATION:


HUMAN RELATIONS THEORY:

Human relations theory was proposed by Elton Mayo based on the Hawthorne
experiment. This experiment was conducted on both small firms and large firms. The production
rate increased in the small firms no matter what the 'rest time’ was, it was increasing when the
rest time was increased or decreased or even eliminated. Small firms also recorded less
number of people who went on a sick leave than in larger ones. Hence Mayo came to a
conclusion that more than money the human relations are the most important factor (John r.
Walker et al, 2009)

MASLOW’S HIERARCHY OF NEEDS:

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Abraham Maslow proposed that the unsatisfied needs motivate the people. According to
Maslow the ‘desire to satisfy the unsatisfied needs’ is motivation. The human needs can be
represented as

Maslow also tells that when one level of needs is satisfied, then they no longer act as a
motivator, and the next level of needs become the motivating factor. Hence Maslow’s theory
tells that needs are unending and act as a good motivation factor. When one need is satisfied
the next need comes into play.
Satisfacti
on

Nee Need
ds s

Satisfacti
ALDERFER’S ERG THEORY: on

The Maslow’s need theory was not able to convince everybody and faced many
criticisms, as a result Clayton Alderfer (1972) proposed an alternative needs hierarchy called
the ERG theory. The whole theory can be represented as,

Progressi
on

Existence Relatedn Growth


needs ess needs
needs

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Regressio
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• Existence needs- are the basic physiological needs such as food, shelter etc.

• Relatedness needs- are the social factor of belonging to a group e.g.: friends and
teammates.

• Growth needs are- those factors which make them feel proud.

HERZBERG’S THEORY:

Herzberg’s motivation-hygiene theory is called ‘The two factor theory’. This theory deals
with certain factors which produce job satisfaction/dissatisfaction, and other factors which
motivate the people (Herzberg, F, 1996)

This theory can be summarized briefly as follows:

The two factors


are

Hygiene Motivators
factors

PROCESS THEORY:

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This is quite different from content theory, as it deals with the behavior of the workers.
These theories help in predicting the behavior of the workers, so that workers may be
influenced.

VROOM’S EXPECTANCY THEORY:

This theory is the most widely used theory. According to this theory the level or the
extent of motivation F(M) depends upon,

F(M)=E * I * V

Where, E is expectancy is the individual’s perception that his effort will affect his performance of
the work.

I is instrumentality, which is the relationship between task completion and reward and V is
valence, which is the value attached to the reward (Nancy Borkowski, 2008)

Performanc Reward
e 1st level of 2nd level of
Effort outcome outcome

Expectan Instrumentalit

Valence(M
otivation)

THE WORK OF PORTER AND LAWLER:

Porter and Lawler’s theory on motivation suggests that motivation not only depends
upon, the perceived effort, performance, reward and the value of the reward but also on the
traits (abilities) of the person and how he perceives his role in completing the job successfully.

4.8 RULES AND REGULATIONS OF REWARDS IN TESCO:

• The reward structure should be equitable and perceived to be fair.

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• Different staffs get motivated by different types of reward, hence the need of the staff
should be known to the leader.
• The value of the reward should match their performance and also their levels of
expectation.

4.9 Suitability:

5.0 CULTURAL ISSUES:

India is definitely a very good choice made by this giant UK retailer because, these two
countries are psychologically compatible with each other. This is because India was a former
UK colony.

5.1 HOW TO MEASURE THE CULTURAL RELATEDNESS?

Hofstede’s 5d is the best method to do this. This model is based on IBM study (Richard Black,
2003)

The five dimensions model

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Some of the other models,

India-UK Hofstede chart:

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• PDI- Power distribution index


• issues
Cultural - organizational perspective:
IDV- Individualism
• MAS-Masculinity
• UAI- Uncertainty avoidance
index
• LTO- Long term orientation

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Cultural issues: Employee perspective

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6.0 CONCLUSION:

Proper management of people within an organisation has lead to the success of many
organisations. And all the organizations should give primary importance to this area. Many
researchers have done great work on how to deal with people, proper application of the
appropriate theory and innovative thinking will yield good results. Recruitment and selection is a
boundary defining activity which determines ‘what kind of people should join the Tesco’. This
process should be rational as this is going to decide our employees, who will form teams to
promote the Tesco. Coming to the teams, it should be more balanced in nature so that it does
not become dysfunctional. The leader should be more responsible and promote the active
participation of members so that there is no social loafing. India is a country with great cultural
diversity. Hence the stores with in India cannot follow the same strategies as it may be
controversial to some communities. Therefore the stores, their product, management type will
not be the same throughout the country. The Tesco’s success depends upon how it adapts to
the culture and understands the local people. Tesco considers human resource as a unique
resource and gives more importance to individual objectives. In Japan, the hard and soft
approaches are applied differentially which will be suitable to India too.

Finally, Tesco can definitely taste the fruit of success if it overcomes the barriers within
the organisation and in the external environment.

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Bulletin, 63, The article was reprinted in Group Facilitation: A Research and Applications
Journal - Number 3, Spring 2001 and is available as a Word
document:http://dennislearningcenter.osu.edu/references/GROUP%20DEV
%20ARTICLE.doc.

26.Hahn, Martin (2007), ‘Group Norms in organization’, online journal published by Martin
Hahn himself, pp: 04-10, available at: http://www.en.articlesgratuits.com/group-norms-in-
organizations-id1546.php.

27.Janis, Irving.L (1980), ‘Victims of Groupthink’, Published by Political Psychology, vol.12,


No.2.

28.Pearce, Sue and Cameron, Shelia. (1994), ‘The Management Studies Hand Book’,
Published by FT Prentice Hall, pp: 141-150.
29.http://www.geert-hofstede.com/

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