Indian and US negotiators bring to the bargaining table a host of ingrained views, prejudices, opinions and behavioral traits that must be recognized and accepted by both parties if negotiations are to end in success. Because Indians and Americans approach commercial negotiations differently, it is beneficial to highlight some of the peculiarities in business etiquette that exist between the two cultures.
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In Indian business culture, perceptions of the truth tend to be guided by feelings; a strong faith in religious ideologies is also common. |
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An argument appealing to both feelings and faith will often be more convincing to an Indian than one using only objective facts and empirical evidence. |
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The boss makes all of the decisions and accepts all of the responsibility. Consequently, subordinates are often reluctant to accept responsibility. |
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Interpersonal skills, such as the ability to form friendships, are sometimes considered more important than professional competence and experience. Nevertheless, there is a deep respect in Indian culture for people with advanced learning. |
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Because of the rigid hierarchy in Indian business culture, a subordinate will be able to meet only with a subordinate, never directly with a counterpart’s superior. |
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Hospitality is an intrinsic part of doing business in India; indeed, most business discussions will not begin until tea is served and there has been some preliminary "small talk." |
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Delays are inevitable and must be expected, particularly when dealing with government bureaucracy. Be patient and set aside any unrealistic expectations regarding deadlines and efficiency. |
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Indians are a proud people and do not appreciate condescending attitudes. In addition, there is no reason to bring up India’s social and economic ills; educated Indians are well aware of them. When negotiating with Indians, it is best to stress the benefits that India will receive from the relationship; however, never impose demands upon Indians. |
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In American business culture, perceptions of the truth tend to be guided by pragmatism and hard facts; a strong faith in religious ideologies is usually not expressed at the bargaining table. |
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An argument appealing to self-interest and empirical evidence will often be more convincing to an American than one relying on emotion or notions of altruism. |
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American bosses often delegate many decisions and assign different levels of responsibility to subordinates. Indeed, subordinates are normally entrusted with substantial decision-making authority. |
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Professional competence and experience are normally considered more important than interpersonal skills, such as the ability to form friendships. Although persons with advanced degrees are respected, Americans do not particularly view them with awe. |
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Because of the looser hierarchy in American business culture, a subordinate will often be able to meet with a counterpart’s superior and execute final agreements for his boss. |
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Hospitality is not considered an absolute requirement for doing business in the United States; most American businesspeople consider excessive chitchat to be a waste of time. |
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Americans are impatient and do not appreciate missed deadlines. If you tell an American to be at a meeting at so-and-so time, do not be surprised if he or she actually arrives 5 to 10 minutes early. |
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Americans often negotiate from a position of economic and political strength that harbors on chauvinism. Unfortunately, the perception of the “ugly American” is often all too real. |
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When negotiating with Americans, it is best to stress the benefits that will accrue to their company rather than to the US government. Americans have a mixed attitude toward government and do not appreciate being viewed as agents laboring on its behalf. |