India’s Business Management Issues Research Paper

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Introduction

Conducting business in the international market has in the recent past been one of the most viable alternatives for most firms; however, cultural differences and ethnocentricity may tend to be tricky for the performance of the business in such a market. Reconnaissance should be the first thing a business person does before he/she ventures into the world of global business to be successful; understanding the culture and business communication patterns in the target country (India) should be a priority (Kobayashi-Hillary 219). Proper codes of conduct and behavior of business in the other countries will ensure that the person is seen as professional and executive.

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India is one of the countries that value their culture and since the mode of conducting business in the country may be quite different, the firm that seeks to invest in the Indian market must be very careful on how it conducts its business. In addition, the mode of communication (both verbal and non-verbal), dressing, organizational hierarchy, religion and family values/roles, gender differences, conducting of meetings, negotiations, and giving gifts are some of the important aspects of business that have to be put into consideration. This paper will discuss the various management issues about business culture, social situations, and customs in India that may affect establishing new foreign projects in the country.

Meeting, greeting, and addressing

Since India has no stringent barriers to foreigners’ entry, there is easy access to the country hence one must know the meeting, greeting, and addressing mode. When meeting, one should focus on the use of appealing titles which are appropriate such as; professor, and doctor; when the partner does not have such titles then “Mr.” “Mrs.” or “Miss” should be used. These titles depend on age, university credits, caste, and occupation. When a business colleague shows up you should initiate the greetings instead of waiting for the partner to do it.

Ethical respects in India dictate that a person should usually shake hands with another person of the same gender; however, due to religious restrictions, women and men rarely shake hands, although they can do so only with the initiative of the woman. Politeness and honesty are key virtues to prove that the business objectives are sincere and true (India- language, culture, custom, and etiquette para.2). Moreover, large gifts should never be carried to the meeting and if one is presenting the gifts then it should be with both hands. One should accept the hospitality accorded such as drinks or food without denial since if one rejects it may be offensive. A point to note is that most Indians are vegetarians and have a taboo for alcohol (communicated 3).

Appropriate business attire

The dress codes of the Indian business community have been transformed and generally vary according to regions and sectors. This means that it is hard to generalize the dress code and give the valid code across the region but the dress code should be conservative (Kobayashi-Hillary 112). This means that formal dressing should apply to specific meetings. A suit and tie will be most recommended but due to the warm weather, a full-sleeved shirt with a tie can be appropriate for men. If one is attending a meeting for companies such as IT, dressing casually is not a big deal.

For women, pant-suits are advisable or long skirts that will go past the knee. The neckline of blouses should not be seen to expose anything for it might be interpreted for other intentions. Other options for women include a Salwar-suit. For informal settings, people can wear jeans or T-shirts/short-sleeved shirts. Wearing the traditional attire for Indians is also welcomed by the business partner; the traditional attire includes Kurta-pajama for men and sari or salwar-suit for women (Guidelines for business dress para. 7).

Language

India has different states which recognize various official languages but some are not acknowledged by the central government. Other states have over one official language. Some of the languages include; Hindi, Urdu, Tamil, Bengali, Kashmir, English among others. Whenever attending a meeting, language is most important since it is the medium of communication.

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If the business partner has a preference for any language then efforts should be made to find an interpreter to ensure there is effective communication. English is in most cases used since it is an identified language for most international business; moreover, it is one of the official languages (Joshi 6&12).

Religion

The religion of the country is mixed with the Hindu being dominant at 81.3%, Muslims 12%, Christians 2.3%, Sikh 1.9%, Buddhists, Jain, Parsi making 2.5% in 2000 (India- language, culture, custom, and etiquette para.3). This means that the business partner must be known so that the proper business ethics can be practiced as per the associate religion.

Role of the family

The Indians respect the institution of the family whereby individuals are identified from the groups they come from. Attachment to religion, state, family, career, and region is common, given that the Indians have a high affinity to live together in an extended family (India- language, culture, custom, and etiquette para.5). The group establishes close relations and maintains them within the family in addition to the extended family. The extended family forms a base for interrelationships, statutes, and construction. Mutual commitment among them is enhanced through a strong trust among them. Even to the work systems, the boss and his employee may also be seen to have a tie like close relatives despite the hierarchical systems.

Private space and another body language

When expressing disagreements one should not do it directly. The best way to keep a friendship is to keep the discussion normal and establish small talks. The natives are open and friendly and most have less logic for privacy (communicated 1). They are generally intrusive and may ask questions that are private while others may discuss family as a symbol of friendship.

Structural hierarchy in companies

The caste system has built a system of hierarchical relations. The castes create a social order which makes status more recognized in higher castes. The patriarch or father is the head and the boss is viewed as definitive power in all areas. These hierarchies which relate to wealth, family lineage, education level, and seniority in business among others must be observed at all times and by everyone (Davies 98).

Gender differences

Women have been viewed as less in Indian society. Sometimes they are treated unfairly but it remains in the culture of the people. For a long time, many companies could not employ women although the situation seems to be changing over the last few years. Shaking hands with women is not mainly accepted hence one should shake hands only when the woman takes the initiative.

Dining Etiquette

The visitor is treated like a king or queen in Indian culture. Eating and drinking are activities that the Indians cannot include in a meeting. For Hindus taking meat is taboo and since most are vegetarians, one should be sensitive when ordering meals (Davies 92). Hindus also fast once a week where they eat fruits only hence such considerations should be taken to account. It is important to get to know what business partners prefer, for instance, Muslims don’t take pork, while Jain’s take cereals and lentils and not meat and honey. Most of all, cleanliness should be a top priority at the dining table (General tips, eating and drinking para.38).

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Negotiating

When one is negotiating, culture should be kept as a priority. Government-owned public sector companies are more bureaucratic and hierarchy-based than private sector companies that are egalitarian and flexible. Business cards should be exchanged to facilitate future communication. Proper language should be used and maintained all through the negotiation; being aggressive may seem to be disrespectful. One should observe protocol as a sign of respect, i.e. rank is essential and any unclear issues should be broached by a person of similar rank but not the junior (Joshi 1997).

The pace of the meeting should be relaxed and smooth. Most Indians never keep time and therefore one should not take offense when their Indian partners arrive slightly late. They also don’t start discussing business but they first focus on relationship building and no wonder one should never insist on a commitment during the first encounter as this takes time in India.

Gift-giving

This is a gesture of friendship though not in the first meeting. The gifts should not be expensive or large; however, for the gifts, wrappings most considered would be yellow, red, green, or blue but not white or black. Most appreciate framed photographs or bouquets of roses. Jewels should not be included for they show intimacy (Selecting and presenting an appropriate business gift para. 13).

Works Cited

“Business dress.” India. N.d. 2010. Web.

Communicaid. “Doing business in India: Indian Social and Business Culture.” Doing business in India: Indian Social and Business Culture. N.d. Web.

Davies, Paul. What’s this India business? Offshoring, outsourcing, and the global services revolution. London, Nicholas Brealey Publishing. 2004. Web.

“Gift Giving.” India. N.d.2010. Web.

“India- language, culture, custom, and etiquette.” kwintessential. N.d. Web.

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Joshi, Manoj. Passport India: your pocket guide to Indian business, customs & etiquette. World Trade Press. 1997. Web.

Kobayashi-Hillary, Mark. Outsourcing to India: the offshore advantage. New York, Springer. 2004. Web.

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IvyPanda. (2022) 'India’s Business Management Issues'. 29 July.

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IvyPanda. 2022. "India’s Business Management Issues." July 29, 2022. https://ivypanda.com/essays/indias-business-management-issues/.

1. IvyPanda. "India’s Business Management Issues." July 29, 2022. https://ivypanda.com/essays/indias-business-management-issues/.


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IvyPanda. "India’s Business Management Issues." July 29, 2022. https://ivypanda.com/essays/indias-business-management-issues/.

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