Business Behavior in India

Carrie Shearer, Director of Content and Editorial, RW&sup3
rw-3.com

India is the world’s largest democracy, the second most populous nation with 1.4 billion people, and a fascinating country of contrasts that plays an ever-increasingly vital role in global business today. Millions are among the most highly educated and technology-savvy in the world while millions of others remain illiterate and live in abject poverty. Because of those educated individuals who also understand and speak fluent English, India has become a technology and outsource capital of the world.

India boasts one of the largest technology and software programming industries in the world, the largest film industry, and its firms provide support to every major corporate global entity. Rich and varied as it is, the culture is an interesting portrait of tradition with an overlay of characteristics that have been developed in response to globalization and the impact it has had on India.

Tradition

Indians prefer to do business with those they know. Many businesses are family run and may employ many extended family members, since it is believed that you can trust family over all others. Even in multi-national companies, it is common for one family member to be hired and, if it works out, suggest that cousins, brothers, or other relatives find employment there, too. 
Although third-party introductions are no longer required, you should explore whether your bank, accounting firm, consulting firm, or even someone from a Chamber of Commerce can make a formal introduction to provide you with immediate credibility. No matter what else you do, hire someone who knows how to maneuver within India’s intricate bureaucracy, so that you can devote your attention to building the relationship. The guidelines below provide a general overview of how one should approach meetings, communications, and management with your Indian colleagues. (See sidebar, “Business Protocol.”)

Handling Business Meetings

If you are traveling to India from abroad, make appointments by letter, at least one month (preferably two) in advance. If you are already in India, it is sometimes possible to make appointments with less lead-time, although it largely depends on the person with whom you want to meet. Reconfirm your meeting the week before and call again that morning, as most individuals have familial obligations that may require their time elsewhere, often on short notice. Keep your schedule flexible so that it can be adjusted for last minute changes.

The best time for a meeting is late morning or early afternoon. Try to schedule your visit between October and March to avoid the extreme heat and monsoons. Also try to avoid the numerous religious holidays, which may vary by region and state. Many holidays are based on the lunar calendar, with dates changing from year to year.
You should arrive on time since Indians are impressed with punctuality, although they may not always practice it themselves. Don’t be surprised if you are kept waiting. In general:

• Send a detailed agenda in advance, along with back-up materials, charts, and other data, which allows everyone to review and become comfortable with the material prior to the meeting. Remember, you will generally meet with people of equal rank, who may need to run your ideas past their technical experts.
• Meetings start with a great deal of getting-to-know-you talk. It is quite possible that no business will be discussed at the first meeting. Acceptable business conversation includes business news or sports, so avoid speaking about personal topics unless they are brought up by your counterparts. 
• Prepare clear, straightforward presentations without hype and hyperbole, and follow up with an overview of what was discussed and next steps. 

Understanding Communication Styles

Since India is both a hierarchical and formal culture, it is important that you respect status and position. Always greet the most senior person first. Try not to refuse an offer of coffee, tea, or snacks. If you do not want what was served, simply let it sit there, which is preferable to insulting the person by refusing their hospitality. Although seemingly a small thing, these indirect forms of communication speak volumes. The way you behave indicates where they should place you in their hierarchy. If you do not understand the subtle nuances of behavior, they may view you as someone not worthy of trust – and, therefore, not someone with whom they want to do business.

Many Indians are not comfortable saying “no” and think that giving an indirect answer is more polite. Phrases such as “I’ll try” or “we’ll see” may indicate a negative response. Accept an initial “yes” at face value. Do not press for a final agreement, as others may need to be consulted.

Hesitation on the part of a subordinate may indicate a number of things, such as not believing the supervisor’s suggestion to be the most appropriate for the situation or feeling that, given circumstances, they are unable to complete the work. If employees think the supervisor is wrong, some will do what they think is right; others will follow the instructions, even though they know they are wrong. In the first case, if subordinates are challenged for not following orders, they may say they misunderstood. Therefore, if you want things done in a specific manner, it is best to provide clear-cut, written instructions.
Other points of note:

• Although English is widely spoken in business, Indians may not necessarily understand the latest idioms or different accents of Western English. When you are attempting to get to information that might put someone in a bad light, it is often best to ask many indirect questions rather than one direct question. Be careful never to shout or appear to lose your temper at the endless bureaucracy – or risk being branded as untrustworthy and rude.
• Phone calls and e-mails are the most common means of communication. When making the initial phone call, parties may use the first five minutes to get to know each other and inquire about the person’s interest or assess capabilities. In subsequent calls, you can move into business discussions after asking how the other person is. To end a conversation, simply thank the person. 
• Letters are used to communicate about official topics. When introducing a company or soliciting services, you should include a good amount of background information. In all communications, but especially writing, be polite and handle difficult situations with tact.

Management Style with Employees and Supervisors

Since India is a strogly hierarchical country, every person in the working environment has a clear-cut role and responsibility based on job level. It is important that people in the office maintain the proper behavior relative to their position. For instance, it would be totally inappropriate for a manager to make copies or move furniture because those are tasks that other people should do. To engage in behavior traditionally considered “beneath you” may lower your esteem in the office, and will likely make others uncomfotable. Indians place strong emphasis on maintaining harmony and proper lines of authority in the workplace:

• The boss makes decisions and accepts responsibility for what subordinates do.

• Middle managers may consult with subordinates before reaching a decision (e.g., staff may be consulted for their specific technical expertise, not to reach a consensus), although it is more likely that they will confer with trusted advisors or relatives. Middle managers are so concerned about recommending the correct response to the ultimate boss, that they may take excessive amounts of time double- and triple-checking facts with various people.
• The supervisor routinely checks on the work of a subordinate and provides regular constructive feedback, which includes monitoring work quality and the timing of its completion. Indians who have worked with multinational and non-Indian organizations manage their own schedules and need less supervision. If there are times when you need to share a criticism, handle it with a great deal of care and in private. 

In a Nutshell…
Remember, the most important cultural attributes operating in business in India are respect for hierarchy, formality, and interpersonal relationships. For the most part, communication relies on indirect communication, where there may be extended silences, and a reliance on various forms of non-verbal communication, including tone of voice. With this awareness, you can improve the potential success of your interaction with Indian colleagues and the overall completion of your assignment responsibilities.

Sidebar: Business Protocol
Business Dress:

• The weather often determines clothing. In the hotter parts of the country, dress is less formal, although dressing (as suggested below) for the first meeting indicates respect. Jackets and warmer clothes are advisable for the cooler seasons, depending on the region and climate.
• For initial business meetings and meetings with government officials, men should wear dark conservative business suits. In general, business attire is casual but neat; men commonly wear pants and short-sleeved shirts. Women should dress conservatively in suits, dresses, or pantsuits – not sleeveless dresses or shirts – and be sure skirts at least cover the knee.
• Wearing leather, even in belts, may be offensive to devout Hindus.

Greetings:

• Shaking hands is common in the international business sector. Men may shake hands with other men, and women may shake hands with other women. Many Indian women are still reluctant to shake hands with men. If a foreign woman wishes to do so, she must extend her hand.
• The most common greeting is “namaste,” where you clasp your palms together as in prayer over the heart and bow your head slightly. If the person is Muslim, greet them with “salaam alaikum.” If you are not certain of someone’s religious heritage, listen to what they say and repeat it or simply say “hello.”

Business Cards:

• Business cards are exchanged after the initial handshake and greeting with the right hand. Always present your card so the recipient may read it.
• If you have a university degree or any honor, put it on your business card.
• Business cards need not be translated into Hindi.

Business Gifts:

• Business gifts are always appreciated. Appropriate gifts include desk accessories, a good quality pen, or a tie. If the person drinks alcoholic beverages, they might enjoy a bottle of imported scotch or wine.
• Gifts are generally not opened when received. Present them with two hands.

Business Entertaining:

• Never turn down a social invitation. If you cannot come, simply say, “I’ll try.”
• Always wait to be told where to sit.
• Entertaining often occurs in private clubs or international hotels. Business lunches are more common than dinners during the workweek; business dinners are often held on the weekend.
• The person who extends the invitation typically picks up the bill. A woman who wants to host a business meal should make payment arrangements with the restaurant in advance since most Indian businessmen would not allow a woman to pay for a meal. A businesswoman should never invite one man to a meal alone, as it might be taken to mean that the woman had romantic intentions.
• Always wait for the host to raise the topic of business.
• Do not verbally thank your host as it is interpreted as payment; offer to reciprocate by inviting your host to dinner.