Question

What is the negotiation style in India?

Questions you want to consider,

• How formal are organizations negotiations?   
• Do I dress formally all the time? Do employees socialize after work?  Am I expected to drink a lot?  What do I do to show I belong?
• Is there a formal and informal “you” ( e.g. German “Sie” vs. “du” ,)  您 & 你in Chinese, “vous” & “tu” in French.. “Usted” or respectful “Senor/-a”
• What language is typically used?
• How hierarchical are organizations; is status very important?
• How do people feel about open conflict; how are conflicts resolved?
• Attitudes about time; is it important to engage in a lot of small talk?
• How important are relationships
• How flexible are people likely to be
• In many cultures, people won’t say “no,” even if they disagree.  What about in this culture?  What does “no” mean; will people speak directly if they disagree with you?
• What happens in the first meeting?  Do people get down to business immediately.  What do I need to know about “small” talk?  Are sports important to know about?
• Gender, race, nationality,  and age issues; are women treated differently in negotiations
• Is there bribery in negotiations
• Etiquette…handshakes…kissing…where do I sit?...do I bring a present?  If the business is family owned how does that affect negotiation?  Do I ask to speak with the patriarch?  How about shaking hands with women?
• If negotiations break down, what is the likely reason?
• What are the biggest errors foreigners make?
• Do negotiations tend to be “win-lose” or “win-win”; do negotiators aim to satisfy both sides or “win”?
• Are there some critical “do’s” and “don’t’s” I should be aware of not covered above.

Answer 1

Negotiations in India are a bit informal compared to other countries. Employees in big companies insist on wearing a formal dress but there is no such compulsion from the part of small or medium companies. Employees in India normally keep their relationships even outside the work environment also, they will chat on social media and call to residential phones even after working hours. India is a country with many different languages, the count of official languages itself is 22, and Hindi is the widely speaking language.' Ji" is the Hindi term used in India to address respectful senior employees. Organizations are highly hierarchial and the status is very importantIndians, the respect of people varies as per the status of a person. The status of an employee could even be recognized from the dress they wear employees at the top of the organizational chart are only wearing a suit. Open conflicts are very common in Indian organizations, each organization has its own mechanism to deal with it but most of the organizations are depending on informal mediations to find a solution for this. Indians are generally bad at keeping time and small talks are a usual affair there. But employees give very importance to their relationships even outside the work environment, they normally celebrate different festivals both inside and outside the office. People are less flexible in India. Indians are also reluctant to say "No" and who will not normally interact with the person they disagree with instead they may informally say about it with other people in the workplace. During the first meetings, people normally talk about their personal matters and previous job. Sports are very important in India, though hockey is the national game Cricket is more popular sport there. Race or cast is affecting negotiations very much. Nationality does not affect much as most of the employees in organizations are Indians. Age is also not much of a concern in India in case of negotiations. Women are treated differently during negotiations, Usually, men are getting the upper hand in negotiations. Bribery or lobbying is secretly happening behind the curtain in case of negotiations. Regarding the Etiquettes Indians are using folded hands and saying "Namaste" instead of shake hands. Kissing or hugging is not so common in India. A person will not normally sit in front of superior staff. Bringing a present for negotiations is quite common there. While dealing with family-owned companies, we must try to impress all the family members. But the final decision will be coming from the head of the family. Negotiations may break down if there is an incident of lack of respect. Normally negotiations are ending with a win-win note. The biggest errors foreigners make are the following.

• Indians especially the old generation have some special beliefs of a good time. They are interested in negotiations only during that time.
• Some foreigners may wear traditional Indian dress during negotiations which may have a negative impact.
• India is a country with different cultures but some foreigners do not recognize this during negotiations.