India like any other company has goals, objectives, plans and
budgets. A company’s organizational culture is determined by
the culture infused by promoters of the company. For India Inc.
the promoters were British government and Indian leadership
of that of that time. India inherited bribery habit from its main
promoter British Government. For them giving bribery though
was not legalized was still a common parlance as it only enabled
them to run their administration on a low budget and keep their
employees contended. WWII bred large-scale corruption during
British rule, and after independence the same corruption and
bribery became invisible pillars of India’s organizational culture.
Scam, Hawala Scam, Common wealth game scam and many others.
Incentive Structure for government officials was poorly built not igniting motivation. According to expectancy Model of Motivation, the
link between Efforts, performance, rewards and Valence should
be strong for every employee in order to induce motivation to
work hard. In India Inc. this chain was not strong as government
officials felt better rewards could be earned by giving
way to corruption. Gradually bribery turned out to be an indispensible
but unofficial component of their incentive structure which continues to
motivate their work towards private interest rather than national interest
Since inception the company is being run by the ideas shaped by
socialism which seeded inefficiency and bureaucracy in Indian
system by focusing on investment in heavy industry(PSUs) rather
than productivity or quality of investment and also by placing
too much control thereby discouraging competition. By 1980s,
due to government’s efforts three self-defeating characteristics
giving rise to conflict of interest.
evolved in Indian system which lowered the pace of growth
of India – Permit Raj; Export Pessimism and bias towards state
ownership.
Bureau, there is failure on part of an ineffective judicial system to punish
There are three levels of controlling – Executive, Judiciary and Legislativewhich controls the country as well as power of other controllers. In spite
of rise in number of corruption cases registered with agencies like
CBI-Central Bureau of Investigation, Lokyukta and ACB-Anti-corruption
corrupt politicians on time.
Corruption at agent level can be controlled but it is difficult to be con-
In 1991, Balance of payment Crisis was caused by channelizing
the increase in government expenditure into unproductive sector and in response our economy opened to Liberalization, privatization and globalization. Balance of power thus moved from
government to a shared balance between private individuals and
government which aggravated corruption as private individuals
bribed government to get approvals for their projects and government bribed them to woo the voters for winning the votes
during elections.
trolled at political level which gives rise to corrupt government. Corrupt
government has option to choose from two motives General public
interest (GP) and Personal interest (PI). In the start of their t