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Interesting facts about subsidiary of Carlsberg in India

Carlsberg A/S is a Danish brewery company with a global presence. The Carlsberg Group is

headquartered in Copenhagen, employs 41,000 people and its products are sold in over 150 markets

across the world. The Carlsberg group has a rich history of over 170 years and is one of the leading

global brewery groups currently.The Carlsberg brand is one the best-known brands from the group

and the variety of their products is localized as per tastes and preferences of various markets.

Carlsberg has a fully-owned subsidiary in India, registered as Calrsberg India Pvt. Ltd., with 7 breweries

and retail presence across the country. The India unit is headed by its Managing Director, Mr. Nilesh

Patel. It functions in a fully decentralized mode. It’s recruiting practices have been adopted to the

local market conditions, with competition fully playing a role in compensation decisions. The Product

of the company is tailored to Indian tastes (localized) while the Price of the product is a bit higher

than other Indian beers, but in line with the market rates in India. Also, Promotion of products are

tailored to the Indian market and the target demographic. A recent collaboration announced with

Indian rap star Badshah is an example. From employee reviews on the company website as well as

Glassdoor.com, it is understood that the company has brought its Danish style of stress-free work to

its Indian offices.

Recommendations for Human Resource Practices

The Human Resource practices related to Recruitment, Appraisal, Training, Retention, Awards and

Compensation, Engagement (RATRACE) that Serendipity Inc. must when setting up its subsidiary in

Denmark are given below. As the level of development of the Danish economy is very high, most of

the positions at Serendipity-Denmark are to be filled by white-collar and highly skilled employees.


Serendipity can follow the Ethnocentric approach of having Indian managers in key positions such as

business development while starting up operations in Denmark. Slowly, the transition to a Polycentric

approach is possible as the Danish workforce and business leadership are very skilled and capable of
handling a global enterprise. For the longer term, we recommend a Geocentric approach of having

the best person fit for the job irrespective of nationality as the subsidiary develops in the country.


Legal Requirements:

1.Under Danish law, equal employment terms and opportunities are to be provided without

discrimination. Employees are protected from discrimination on the basis of religion, colour, political

belief, gender, disability, nation, age and sexual orientation by the Act on Prohibition against

Discrimination. Hence, the employment applications of Serendipity should be neutral to these aspects.

2. Serendipity Inc., is permitted to perform background checks on employees subjective to the data

and privacy regulations and laws of employment in Denmark. Criminal records of applicants to jobs

may be obtained, but only with their permission.

Influence of culture on recruitment:

1.The Curriculum Vitae of Danish applicants of jobs are under-represented by personal achievements

as the Jante Law prevalent in Denmark discourages boasting about achievements. HR professionals

should be on guard against this practice as should not take their resumes at face value.

2. Training:

1. Training style in Denmark is informal due to the low Power Distance Index of the country.

2.The training exercises are practical as well as classroom-based. However, more emphasis is to be

laid on the practical aspect of the learnings.

3.Performance Appraisals:

The performance appraisal of employees at the Danish subsidiary is recommended to be done by a

combination of feedback from a manager monitoring the sub-ordinate from the parent country (India)

as well as the host country (Denmark) to reduce biases based on culture.

Process of performance appraisal:

1. There is no self-rating form of appraisal in Danish companies. The feedback mechanism can be made

direct and visible to all as Denmark is not known for any face-saving / collectivist tendencies. A 360-
degree feedback system is also suitable to the Danish workplace because of the low Power Distance

Index where the boss can be rated frankly by his/her sub-ordinates.

4. Compensation:

1.The Balance Sheet approach is recommended for usage by Serendipty in Denmark. The Indian

expatriates will be compensated on a Purchasing Power Parity basis after taking into account the

Income Tax, Housing, Goods & Services and discretionary expenses in India as well as Denmark.

2. The maternity leave in Denmark is fixed by law at 4 weeks before birth and 14 weeks after birth for

women. They are entitled to receive 50% of their salary during this period if they come under the

salaried category. A father is entitled to 14 weeks of paternity leave after birth of child. However,

there is no statutory regulation on the salary to be paid during this period to new fathers.

3.There are no statutory minimum wages across Denmark. However, the minimum wages as

calculated by international organizations in 2019 are $16.60 or 110 DKK / hour and an average worker

works 37 hours per week.

5. The CEO compensation to average worker compensation ranges in the mid 40s. This is low

compared to the compensation structure in the U.S. This moderate number could be attributed to the

highly egalitarian society, low power distance and high femininity of Denmark.

6. Denmark has a culture of a robust social security system funded by taxes from the exchequer. The

employer also contributes to the Pension Fund with two-thirds of contribution while employee pays

one-third contribution.

5.Labor Laws and Culture:

1.The general decision making powers of management are restricted in Denmark because of strong

unionization of labour with central bargaining for benefits. This is coupled with strongly enforceable

individual rights.The labor system in Denmark functions on the basis of Collectively Bargained

Agreements between trade unions and employer’s association which control the working conditions

and compensation with respect to a sector.

3. The employees are also protected against discrimination on the basis of age, gender, birth,

disability, ethnicity, sexual orientation by comprehensive labor laws as described above.

4. Severance Pay in Denmark is not statutorily regulated but the severance for an employee

continuously employed for 12 to 17 years is regulated to one to three months of full-time salary.

5. Vacations of 5 weeks during May 1st to April 30th are mandated to employees covered under the

Danish Holiday Act.

Questions about Denmark – Workplace and Culture

Expatriation and Culture Shocks

1. Did you face any expatriation issues or cultural shocks once in the first few weeks and months
after you started working in Denmark ? When you visit India, what kind of cultural issues do you
notice ?

The expatriate process is very smooth. Work permit when you have all the basics taken care. The
employer takes cares of accommodation, salary (pay level scheme). Other forms of travel to Denmark
on work are the Green Card, Work permit and Temporary Business trip. The differences between the
two cultures that I noticed were - smiling at a stranger and talking to him would be considered fine in
Denmark. Even a stranger says ‘Hi’ (does not matter whether it is a he or she). The Danes are very
open in general and don’t mind expressing themselves. There is a sense of road rules. If a pedestrian
is not walking on the cycle lane, they shout at you. Traffic Signals are on even at night – even followed
by the Danes no matter the time. These were the primary cultural shocks that I had experienced.
There were no reverse cultural shocks experienced by me as such. But my son feels India is a bit loud
after landing back home because of low population density in Denmark.

Work Culture & Business etiquette

2. Did you notice any difference in business etiquettes and work culture between India and

Firstly, in Denmark, the organization is flatter, less hierarchical. Despite formal designations, the work-
culture is very smooth and it is absolutely fine to get into an argument with the boss. Your boss also
sits with you, unless he is a board member or CXO. The CIO of my company also sits with me (I am 3
levels below CIO level). In upcoming IT companies, they have CEOs sitting with them. There are
managers, leaders etc. as per designations, but they do not flaunt their power.

3. Is your interaction with higher ups formal as in India or informal ? Do employees in Denmark
expect to be guided on projects or is the culture pro-active?

They are expected to be pro-active towards their work. My team members come and tell me rather
than me telling them. Addressed by first name. Right of college employees call us by our first name,
even the CEO.

4. We have heard of the work-life balance that is a cornerstone of work culture at Denmark. Is that
true ? And can you please specify other interesting things about workplace culture and practices.
Absolutely true. One of things compared to U.S which is better here. Especially when you have family,
you feel it. This is very high in Scandinavia.

5. How ceremonial or casual are the meetings and conferences at workplace ?

It really depends on the kind of forum. Usually, it is very open. If you are a part of the meeting group,
you are expected to speak. When your Chief is speaking, you can even counter him. You are most
welcome to add something.

HR Practices

6. What kinds of rewards and recognition is given at your workplace? Is it any different from the
global and Indian standards in your opinion?

Recognition happens in terms of quarterly increments (not a standard increment based on value
addition by your product). There are perks attached to it. Something not additional you know you will
get the reward when you have done something. In Denmark, we have not had someone asking for a
promotion. It is very meritorious in India.

7. Can you also specify about any peculiar Performance Appraisal systems at the workplace? Once
again, is the system different from the year-end ratings we usually follow at Indian companies?

There is no rating system comparable to Indian companies in Denmark. They actually have a different
system called Personal Learning and Development – it is discussion that happens every quarter with
my boss. Remuneration doesn’t differ much between employees. There is a finance union. Yearly
increment happens upto a certain percentage according to pre-agreed discussion with the union. It is
not super competitive at work. Nowadays, this is changing.

8. We hear that Curriculum Vitae (CV) of a Dane has a bit of an understatement when compared to
CVs of people from other countries. Is that true ?

CVs have definitely modest statements. They understate achievements in CV. Also, there are legal
issue if you write overstatements. The Jante Law is actually a reality in Scandinavia.

9. In case of technical or leadership trainings provided at the workplace, are they classroom-
oriented or practical ?

Class-room and very practical too. Few trainings taken by him. Workshop + practical. Great focus on

10. What is the worst part of adjusting to Denmark ?

The worst part in Denmark is the language. They have unpronounceable words although they are
written in English.

11. Does the Hygge culture actually exist in Denmark ?

They do follow a Hygge culture. They embrace their yesteryears as much as they embrace modernity.