INDIA
NEGOTIATION & DECISION-MAKING
 
 
 
 
 

NEGOTIATION

Negotiating
 To prepare for negotiating with the typical Indian business person, three main issues should be addressed:
1.)  Is the negotiatior for the non-Indian business honest, polite and willing to compromise?
2.)  Does silence unsettle the non-Indian negotiator?  Can the person see tboth the big and the small picture interchangeably?
3.)  Can the non-Indian negotiator appeal or at least relate to the Indian's spiritual identity?
If the answer to any of the above-named traits is "No", replace the negotiator and find someone who can answer "Yes" to the above-named traits.  These are fundamental guidelines to follow when entering negotiations with Indians.  While not a complete set of rules, it is a rough guideline to help ensure basic groundwork relations, which will ultimately lead to productive  business relationships.
Description Of Negotiator
 Indian negotiators tend to look for and say the truth.  While this does not mean the entire and total truth, it does mean that the intent of the negotiator is certainly not conniving.  Being blunt and matter-of-fact about aspects of the negotiation are common traits as well.  Always seeming controlled, balanced, helpful, polite and respectful, the typical Indian negotiator tenaciously pursues the completion of a mutually beneficial agreement.  Avoiding the use of dirty secrets and learning about fellow negotiators by employing silence and reflection, logical reasoning is often left by the wayside as instinct and faith in their fellow man helps guide their ultimate decisions.

 

DECISION-MAKING

Risk Tolerance
The typical Indian business person is rather highly risk tolerant.  This is not to say that the person is ignorant of risk, though.  While risk is certainly acknowledged, a good idea is capitalized on.  The biggest factor in this lack of risk aversion is that many Indians only see that they can move up in the world.  Having been born, most likely, into a very poor household and known little else since then, Indians tend to take larger risks to improve their standard of living.  Rick tolerancein the upper class of Indian society is considerably lower, as individuals from that social caste do not want to risk what they have earned or inherited.
Locus Of Control
 Indian business people accept that many problems are outside of their realm of control.  This does not make them powerless, though, and very few Indian managers will acknowledge that they are powerless in any given situation.  Reliance upon religious faith, however, plays a critical roll in this situation.  Many Indians rely upon their good, or bad, kharma in circumstances they cannot directly effect.  They believe that good actions over a lifetime will result in good things in the future, while the same is true for bad actions.
Autocratic Leadership vs. Participative Leadership
 Indian managers participate in more autocratic leadership than participative.  Employees look to their managers for direction because they have more or better experience than they themselves have.  Also, Indian managers usually have the full loyalty of their employees, and the cost of that loyalty is continued direction, inspiration and leadership.  The average Indian employee is by no means a mindless automaton, but they certainly do accept and follow directions from their managers.
Collectivist vs. Individualistic
 Collectivism is the more predominant mindset for Indian managers.  While Indian managers are certainly powerful individuals, providing leadership to their employees, managers also have an inherent responsibility to those employees.  One of those responsibilities is ensuring their welfare.  By not making selfish business deals, ensuring that their employees are not mistreated or otherwise abused, and considering their welfare as well as his/her own in business dealings, the manager fulfills this responsibility. 
Objective Approach vs. Subjective Approach
 Taking the subjective perspective on issues is more typical of Indian managers.  Choosing to base their decisions on emotion and empathy rather than percentages and ratios, Indian managers place more emphasis on the good and bad effects of a decision as it relates to the people involved, rather than the monetary benefit.
Moral Idealism vs. Utilitarianism
 Moral Idealism is much more descriptive of Indian management styles than Utilitariansim, considering important, long-term, potentially society-altering decisions by reflection on the whole rather than the individual.  This value plays closely with that of the societal religious beliefs of Indians.  In this belief, long-term efforts to do "the right thing" are rewarded heavily while short-term actions to benefit the individual are punishable.  This is perhaps one of the most fundamental examples of how Indian religious faith interacts with business practices.

 
 
SOURCES
http://www.asnic.utexas.edu/asnic/countries/india/InPoliticalstru.html
http://www.subcontinent.com/sapra/updates.html
"Alex"