India beats China in nurturing future leaders: survey | mumbai | Hindustan Times
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India beats China in nurturing future leaders: survey

India is way ahead of China in terms of nurturing leadership talents, and Indian business leaders are much more effective with their critical skills and are better at identifying and developing future talents, according to a recent study.

mumbai Updated: Jan 22, 2012 18:45 IST

India is way ahead of China in terms of nurturing leadership talents, and Indian business leaders are much more effective with their critical skills and are better at identifying and developing future talents, according to a recent study.

"About 60% or more of the Indian leaders are found to be more effective than their Chinese counterparts when it comes to excelling in five critical skills required for successful leadership," a study by DDI, a talent management firm, on 'Leadership at the Future's Edge: China and India', says.

The survey spans 2,600 companies in 74 countries.

About 76% Indian leaders are better at identifying and developing future leaders compared to 56% of Chinese counterparts, it points out.

The quality of leadership talent plays a critical role in the future success of business and India has a clear lead.

Only one in three Chinese companies deploys validated tests while making leadership selection decisions, compared to 44% of Indian organisations, the survey says.

When it comes to business performance, Indian organisations are much better than Chinese counterparts, it says.

About 51% of the Indian leaders are satisfied with the current quality of leadership, compared to a mere 38% of their Chinese counterparts.

Both China and India appear to be relatively autocratic in terms of leadership power, while China's management culture may suffer a bit more from top-down decision making that limits widespread efforts to foster innovation. India, on the other hand, seems to be focused primarily on business goals and is more rigid in terms of organisational structure.

However, when it comes to retention, China fares much better, with 59% rate compared to India's 49%.

"The lack of leadership impacts on retention, it is plausible that retention in red-hot economies is driven more by salary offers and promotion opportunities," the study points out.

With both the countries growing three to four times faster than most other parts of the world, they need to be well-prepared for the future corporate leadership needs as neither can afford to just keep up, but need to leap forward.