The toxic work culture in India’s corporate sector

Source: The post the toxic work culture in India’s corporate sector has been created, based on the article “We need to address India’s workplace culture” published in “The Hindu” on 5th November 2024

UPSC Syllabus Topic: GS paper 2– Governance-Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.

Context: The article highlights the toxic work culture in India’s corporate sector. It discusses issues like long hours, employee burnout, and abusive management practices. It calls for regulation to address these problems and improve workplace culture for employees’ well-being.

For detailed information on The Issue of Overwork in India read this article here

What sparked the conversation on toxic work culture in India?

1. The tragic death of Anna Sebastian, a young chartered accountant, in July allegedly due to work stress sparked conversations on toxic work culture in India.

2. Her mother expressed anguish, comparing corporate employees to “slaves,” despite India’s freedom gained in 1947.
3. Despite the Ministry of Labour’s promise to investigate within 10 days, the report is still awaited, underscoring delays in addressing such issues.
4. India’s corporate sector remains largely silent on this tragedy, likely because similar work conditions exist across many companies.
5. Toxic work culture is pervasive, with issues like excessive hours, inadequate staffing, and pressure to meet stiff targets labeled as “organisational stretch.”
6. “Variable pay” policies primarily benefit top management, causing resentment among lower-level employees.

How does this compare to global work cultures?

1. Long working hours are common in the U.S. corporate culture but less so in Europe.

2. France has a standard 35-hour work week, while most European countries average about 40 hours.
3. Despite perceptions of lower competitiveness, European standards of living remain high.
4. In the U.S., the per capita income is $85,000, compared to India’s $2,700.
5. Indian employees face additional challenges, such as difficult commutes and household responsibilities.
6. These factors contribute to a higher stress level in Indian workplaces compared to more balanced work cultures in Europe.

What role does management behavior play in toxicity?

1.  Management behavior is a key contributor to workplace toxicity in India’s corporate sector.

2. Bosses often use unprofessional or abusive language, impacting employees’ mental well-being.
3. Unlike Europe, where legal protections exist, Indian employees cannot sue companies for mental stress, leaving them vulnerable. For example, in the U.K., Deputy Prime Minister Dominic Raab had to resign after accusations of “bullying” for his aggressive behavior.
4. In India, there are no such repercussions for managers, leading to unchecked toxic behaviors.
5. Performance evaluations are often ruthless, with terms like “weeding out dead wood,” showing a lack of respect for employees.

Why do employees feel unfairly treated?

The performance evaluation system is often biased, with “under-performers” treated ruthlessly. “Weeding out dead wood” is a phrase used to justify this. Variable pay disproportionately benefits those at the top, while lower-level employees experience resentment, fueling a toxic work culture.

How does work culture differ in public sector firms?

Public sector firms in India generally have a better work culture. Employees may not earn as much, but they enjoy job security and union protection. Pay disparities are less severe, and although grievances exist, reports of toxic culture are rarer.

What are potential solutions to improve work culture?

1. To tackle toxic culture, corporates may talk about “core values” and organize “town hall meetings,” but these rarely change things.

2. Boards of directors should take responsibility for work culture, staying informed and acting on issues.
3. Regulatory measures could enforce accountability and ensure that boards engage with employees at all levels.
4. Just as the Nirbhaya case led to changes in women’s safety, Anna Sebastian’s death should be a turning point for workplace reforms in India.

Question for practice:

Discuss the factors contributing to the toxic work culture in India’s corporate sector and potential solutions to address these issues.