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CULTURE AND MANAGERIAL IMPLICATIONS Name
Institution
Date
TABLE OF CONTENTS
Executive Summary....................................................................................................................... 3
Introduction...................................................................................................................................4
Negotiation Style...........................................................................................................................5
Negotiating Goal and Style.........................................................................................................5
Communication..........................................................................................................................6
Emotions.................................................................................................................................... 6
Bargaining.................................................................................................................................. 7
Decision Making.............................................................................................................................8
Communication style...................................................................................................................10
Protocol....................................................................................................................................... 12
Loyalty to the Company...............................................................................................................13
Gender Roles............................................................................................................................... 14
Rewards....................................................................................................................................... 15
Work Discipline............................................................................................................................16
Conclusion................................................................................................................................... 17
References................................................................................................................................... 18
Appendix......................................................................................................................................20
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EXECUTIVE SUMMARY
Globalization has presently made a number of businesses to get into newer markets,
which are generally composed of people with different cultures as well as practices. When
getting into the international markets, there is always the need for managers to understand the
operations of businesses in those international markets in different angles. This report
therefore, provides information to managers concerning the business operations within two
nations, India and Brazil.
A number of things will be looked at in this paper, and they include individualism versus
group orientation, the effects of culture on the negotiating styles of these cultures, how teams
are managed in the two nations and autocratic versus delegated leadership. In addition to this,
the paper will explore the mode of decision making in the two cultures, the style of
communication that is adopted by the two cultures, as well as the roles of gender roles within
the places of work.
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INTRODUCTION
For the success of international business, the role that is played by culture cannot be
overemphasized. Regardless of the sector a business is operating in, differences in culture have
direct effects on the profitability of the company. Therefore, there is the need for businesses to
enhance their knowledge concerning international differences as this has the capacity to build
global competencies besides enabling the organization to gain competitive edges in the
industry.
Businesses therefore need to have in mind the major factors, which have direct effects
on the performance of the business, and these generally include aspects of communication;
decision making, negotiating styles, individualism versus group orientation, and the
management of teams. The purpose of this report is to offer a comparison of the national
cultures of Brazil and India.
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NEGOTIATION STYLE
Negotiating Goal and Style
India
Within India, the major negotiation approach is the employment of distributive, as well
as contingency bargaining (Narlikar, & Narlikar, 2014). Whereas buyers are always in superior
positions, the two sides within the business deals generally own the role of reaching an
agreement. In addition, buyers anticipate long-term commitments from the business partners.
They majorly lay much emphasis on long-term benefits. Though the primary style of negotiation
is somehow competitive, the Indians generally value long-term relations. Besides, they are
always on the lookout for the win-win solutions. In some cases, they might generally appear to
pursue win-lose approaches, and in this case, focusing on mutual benefits generally pays.
However, there is the need for businesses to shun being highly confrontational. In case of a
dispute at any negotiation stage, resolution may be reached through the show of respect,
friendliness, as well as ability to compromise (Aswathappa 2010). At the same time, it is
significant to indicate commitment to the association, as well as refraining from the use of
logical reasoning and refraining from being argumentative because this can worsen the
situations. When there is friendliness, newer paths may be opened to reach amicable
agreements.
Brazil
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When negotiating within Brazil, leveraging relationships is of great significance.
Nonetheless, Brazilians always use distributive, as well as contingency bargaining. The main
style of negotiation is competitive. At the same time, Brazilians are always aggressive when
negotiating (Cellich, & Jain 2004). Whereas the proposals ought to point out the benefits to the
two parties that are negotiating, none of them ought to make attempts of winning competitive
advantages in a negative manner. It is vital to remain being non-confrontational besides
avoiding direct conflict all in the bargaining exchange (Pearson, & Stephan 1998).
COMMUNICATION
India
Negotiators in India always spend time to gather information and to discuss several details prior
to the start of the negotiation. Indians always share information openly in order to build trust.
However, this generally does not imply that that they willingly divulge everything that one may
want to know in the negotiation process. Negotiations may be very hard when a single side to
the negotiation appears to be concealing information (Katz 2006).
Brazil
Even if there are strong personal relationships, the Brazilian counterparts might be hesitant to
openly share information. A number of people hold on the belief that privileged information
results into a number of bargaining advantages. In addition, information, which may appear to
be irrelevant, might be reviewed repeatedly (Katz 2006).
EMOTIONS
India
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Negotiations are slow, as well as protracted. In a number of cases, delays are inevitable,
majorly when dealing with the bureaucracy of the government. All through the negotiation
process, patience is recommended, and besides, emotions should be controlled by individuals.
At the same time, one ought to have it in mind that there will be delays. Indians generally view
pushiness or impatience as rude. Indians always use a polychronic style of work. When they are
negotiating, they mostly employ holistic approaches, and besides, they might handle different
topics in a manner that is not orderly. The negotiators from cultures that are strongly
monochromic like Brazil, United Kingdom, Germany or the United States finds this a bit
irritating, annoying and confusing.
Brazil
Negotiations are slow, as well as protracted. A number of Brazilians always do not hurry.
Besides, they always dislike individuals who hurry. They observe impatience to be an indicator
of weakness and might even take it to be rudeness. For the achievement of the objectives,
several trips are always a common thing. Building of relationships, gathering of information,
bargaining, as well as decision making might take a longer time. Rushing the process is not
likely to generate superior results and might generally be observed to be offensive. All through
the process of negotiation, patience is recommended, and at the same time, there is the need
for individuals to control their emotions (Katz 2006).
BARGAINING
India
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Indians are generally shrewd negotiators. A huge chunk of them always love to bargain
and also to haggle, though they might not extensively do it like the other Asians. Bargaining
phase of the negotiations are always extensive.
Deceptive techniques are always employed, like telling lies, using fake non-verbal
messages, pretending not to be interested in the entire deal, or making demands, as well as
concessions that are false (Narlikar, & Narlikar 2014).
Brazil
Brazilians are generally used to hard bargains, however, they are not excessively fond of
haggling. Brazilians may be tough and in some cases, they may be highly aggressive negotiators.
Exchanges during bargains may be highly extensive. All through the process of bargaining, one
ought to remain being cool, as well as respectful. Besides, avoidance of confrontation is highly
recommended and the relationship should be reaffirmed frequently.
DECISION MAKING
India
In India, most of their companies are hierarchical in nature where employees expect to
perform their work within clear lines of authority, which are well established. It is unacceptable
to disagree with superiors in any way, which makes it also unacceptable to criticize their
leaders. The process of decision-making is very slow and it is normally a deliberate move that
has formed the culture of Indian companies. Often, the decision makes in Indian companies are
the top executives who are expected to take into consideration the best interest of the
organization when making their decisions. Before making the final decisions these executives
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are allowed to consult with other senior leaders in the organization. In the Indian working
environment, it is often for subordinates to feel reluctant to accept any type of responsibilities.
In addition to this, the decision makers rarely delegate their authority to others, which makes it
important to deal with the top senior executives. The Indian company setting allows very little
opening for any new ideas. Any employee who wants to be successful must give enough time
for the decision maker in addition to doing some lobbying with the known organization
influencers for positive results to be produced (Kazi 2012).
Despite the Indian businesspeople considering the universal principles of trade, they are
known also to consider the specific situation. It is in the nature of Indian business people to
consider personal experiences and feelings more than empirical evidence however, before
making final decisions they are known to fully consider all aspects. Indians are known to be
more convinced by arguments that are built on faith and feelings than arguments that are
based on presentation of facts and reasons. If an Indian believes that in due time any risk will
bare rewards, often an Indian will take a calculated risk. Despite all these, Indians are frequent
attributors of failure and success to factors associated with the environmental instead of taking
individual credits (Kazi 2012).
Brazil
In Brazil, many of the companies are hierarchical and similar to India; the employees expect to
work in an environment, which has clear lines of authority. The people who make decisions are
the top executives who often consider the best organization interests, which will lead to
achievement of goals and objectives. Often, the decision makers will not consult with others
however, it consultations happen from time to time. In addition to this, it is not the nature of
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Brazilian managers to delegate authority, as also gaining access to the top executives is often
very difficult. In most Brazilian organizations, dealing with subordinates who have less or no
authority is very common, but they can strongly influence the final decisions made, through
meetings in close doors. For one to become successful in these organizations, it is important to
maintain close relationships with crucial intermediaries (Katz 2006).
The process of decision making in these organizations is often a slow process, which requires
much patience on the part of stakeholders. Any attempts to put pressure on the decision
making process is unlikely to succeed in Brazilian organizations. In addition, when Brazilian
businesspeople are making decisions, they often fail to rely on the set laws and regulations and
unlike the Indians who apply universal principles, the Brazilian business people normally
consider the specific situation. Many Brazilians are reluctant to embracing change and are
therefore very reluctant in taking risks. For Brazilians to support decisions which seem risky,
one must use clever methods which will make them comfortable for example by outlining the
contingency plans that have been put in place, outlining the additional support areas or in other
situations offer warranties and guarantees (De Abreu, et al. 2011).
COMMUNICATION STYLE
Communication in India
Although Hindi is the official language across all of India, many of its states have different local
languages, some more than one. Almost all business people speak English well. However, it is
advisable to speak in short, simple sentences and avoid using jargon and slang. Unless they hold
senior positions, Indians, especially those in the southern and western parts of the country,
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usually speak in quiet, gentle tones. At times, they may even appear shy. Do not mistake this
for a lack of confidence. Their reticence and humility only reflect their politeness and respect
for others. Loud and boisterous behavior is oft en perceived as a lack of self-control. Loudness
may also be equated with dishonesty (Storti 2007). However, positive emotions may be shown
openly. Indians generally converse while standing around three feet apart. Because being
friendly is so important in this culture, communication is generally indirect. When responding to
a direct question, Indians may answer ‘yes’ only to signal that they heard what you said, not
that they agree with it. Open disagreement and confrontation are best avoided, so you may not
hear a direct ‘no.’ Instead, they may give seemingly ambiguous answers such as ‘I am not sure,’
‘we will think about it,’ ‘this will require further investigation,’ or ‘yes, but…’ Each of these could
mean ‘no,’ as does a ‘yes’ that sounds hesitant or weak. Use a similarly indirect approach when
dealing with Indians, as they may perceive you as rude and pushy if you are too direct. Polite
nods and smiles do not always signal agreement. Instead, they help preserve a friendly
atmosphere. It is in your best interest to give feedback in a positive and constructive spirit while
masking any negative feelings with a smile (Kapoor, et al. 2003; Katz 2006).
An Indian who considers you a superior may hesitate to give you direct feedback. Instead, the
person may tell you what he or she thinks you want to hear, especially when others are around.
This is a way to save face for you and the individual. Similarly, if asked to give constructive
feedback, people may resort to highlighting only the positives, in which case you should listen
carefully for what is not being said. Candid comments and criticism may only be conveyed in
private, and oft en indirectly through a third party. Similarly, it can be effective to deliver
negative responses to your negotiation counterparts through a third party, which is a more
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face-saving way. Respect levels of hierarchy when doing so, since Indians may take it very
negatively if you seem to be going around the chain of command. Gestures and body language
are usually much more extensive in India than in most other Asian countries (Sen
2007). However, avoid any physical contact with other people except for handshakes. Though
Copyright 2006, 2007, 2008 - Lothar Katz 3 elderly people may sometimes do so as a blessing,
you should avoid touching someone’s head, even with children. Hindus and Muslims consider
the left hand unclean, so use it only if inevitable. When pointing at people, use your chin rather
than a finger or your whole hand. Southern Indians may shake their head in a movement similar
to the western ‘no’ when they are signalling ‘yes.’ While Indians may make frequent eye
contact with peers, looking away is generally a sign of respect and does not convey insincerity
or dishonesty (Samovar, et al. 2014; Katz 2006).
Brazil
The official language used in Brazil Portuguese however it is somehow different with the one
spoke in Portugal. Many business people however speak in English, and it is important to have
an interpreter is needed. Brazilians do not like English sentences that have a lot of jargon since
they prefer short sentences with simple English. Depending on the situation, the
communication used in Brazil can be either direct or indirect. Often people do not engage into
open conflicts. In addition, it is not their nature to disagree openly (Katz 2006).
PROTOCOL
Indian
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The Indian etiquette greatly varies with the etiquette in Brazil on a number of ways as will be
explained. Greetings in India are largely influenced by religion, education and the social class an
individual occupies in the society. In the Indian culture, there is hierarchy where it is expected
that the elderly must be greeted first before the other people. Additionally, when Indians are in
a group, it is expected that each individual in that group is bid farewell individually instead of
doing at as a whole. For most Indians who live in cities they have adopted the act of shaking
hands, which is largely associated with the western culture. Because of the religious beliefs,
women have seldom handshake with men however, men can shake hands with other men as
well as women can shake hands with other women. When interacting with Indians and one is
uncertain about whether to shake hands or not one is advised to stop and wait until he or she is
certain. Men employees are expected to wear a tie and suit for business, while women should
wear conservative dresses. Indians believe that the head is seat of the soul and therefore no
one should touch the head of another person even for a child. Indians often consider beckoning
with the palm as offensive and one should not put their hands on their hips when standing as it
is considered an aggressive posture. Indians consider whistling as being impolite whereas
winking is seen as a form of sexual harassment. The Indians consider feet as unclean which
means that one cannot touch other people with their shoes or feet and when this does happen
one should apologize. Business people prefer holding dinners rather than business lunches
(Kingsland 2004).
Brazil
Brazilians on the other hand, are known for their enthusiasm to take advantage of mutual
business opportunities from their counterparts abroad. The Brazilians attach a high regard on
13
their culture and for business negotiations to be fruitful often, one is needed to respect and
understand the differences between their culture and the Brazilian culture. When having formal
discussions Brazilians prefer to use the first name in title naming followed by their last name.
Men normally exchange handshakes that are very firm while women should be the first to
extend a handshake to men but kiss their female associates on both cheeks. Brazilian
businesspeople often consider it bad to drop in without an appointment as bad. As a courtesy
businesspeople want an appointment to be arranged two weeks before it happens and a
remainder given two days before the actual day. In the Brazilian culture, eye contact is very
important and it is therefore important to deliver decisions that are significant in person rather
than using emails or delivering the message through the phone. For both men and women, the
dressing should be conservative however displays which are considered extravagant are not
encouraged to prevent being a target of thieves. It is important to give out contacts in business
cards, which are printed in Portuguese and English (Poelzl 2010).
LOYALTY TO THE COMPANY
The motivation system of the company largely contributes to the loyalty of the employees
however; the culture of the nation can also be used to measure employee loyalty. In this case,
the Hofstede theory dimension of power distance will be used to measure loyalty of employees
to a company.
India
Of all countries, the power distance of India is the one that has a high ranking than all others
having a ranking of 77 compared to the average of 56.5. According to this high power distance,
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the indication is that there is a high inequality of both wealth and power within the Indian
society. The Indian society has accepted this as a norm. In this case therefore, employees have
accepted to be loyal to their organizations doing little complaining than can be a cause of
problems to the organization. This has largely attributed to the increased loyalty of employees
within the Indian companies (Hofstede, et al. 2010).
Brazil
In Brazil, there is a high uncertainty avoidance ranking very high, indicating that there are many
issues to do with career security, a high concern for regulations and rules. In addition, the
power distance is high however not as high as in India. In Brazil, the loyalty to the company less
compared to India normally because of the uncertainties that regard the career growth and job
security of an individual. This has resulted in many employees being un-loyal to the
organization they work with (Hofstede, et al. 2010).
GENDER ROLES:
India
In many Indian organizations, most of the employees are male which makes the Indian society
be male dominated. This is attributed to the culture of Indians, which is seen to favour the male
gender however; in the last decade, changes have been experienced where Indian companies
are embracing the western culture of treating women as equals based on their level of
education and skills. This has resulted in women being offered professional positions, where
some have significant influence and authority. At the same time, it is a big challenge for women
in India to get positions, which are offering better or similar authority and income as men.
15
Despite this, businesswomen who enter their country find these challenges simple to cope with
but as long as they act in a professional manner both in business wise and in social situations
(Katz 2006).
Brazil
In Brazil, negative attitudes towards women are highly prevalent, and easily identifiable in most
companies. Women employees in these organizations are treated or are considered as inferiors
as compared to men. In addition, women in Brazil find it hard to attain positions that are similar
to men in terms of pay and authority. Women are often offered jobs that are inferior in the
organization where they have little authority. In cases where a woman is offered a position that
has more authority she finds it very hard to adapt as initially she is ignored and when she is not
strong they often step down from these positions because of intimidation. It is important for
business women who are visiting the country to have introduction letters from their senior
executives for them to fulfil their wants with ease and within less time. Importantly also, female
business travellers should accept gestures directed towards them with caution while carrying
and acting in a professional manner within social and business situations. Visiting
businesswomen are encourage to display some confidence and to a small extent some degree
of assertiveness especially when they are superiors visiting from the central organization. This
can be effective to some extent however; one should not appear to be aggressive or bold (Katz
2006).
REWARDS
India
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The rewards system refers to both financial and material/ non material rewards such as the
salaries and wages, employees benefits, promotions, recognition and personal growth among
others (Kerr, & Rifkin, 2009). Indian companies practice an integrated reward approach where
they mix both non-financial and financial rewards for the success of the organization. The
payment arrangements in India are central to the cultural initiative. Indian companies aim to
improve and sustain the performance of the employees through rewards.
Brazil
In Brazil despite the use of an integrated system, most employees prefer non-financial rewards
such as holidays and work-offs to have some time enjoying in their sunny beaches.
WORK DISCIPLINE:
India
There is a high work discipline in India as reflected by the existence of high power distance
more than any other country in the world. Having an intermediate score of 48 on both traits of
individualistic and collectivistic, the Indian employees have an average work discipline
(Hofstede, et al. 2010).
Brazil
On the other hand, Brazil having a lower score than India in terms of high power distance, then
there is lower work discipline compared to India. Both of these nations however, respect and
observe hierarchal power even though in Brazil there are subordinates much influence in the
organization activities (Hofstede, et al. 2010).
17
CONCLUSION
This report has made an analysis of the business operation in matters to do with style of
communication, decision-making, cross-cultural negotiation, the business protocol and the role
genders in both Brazil and India. The Findings include; Indians majorly approaches negotiations
in such a way that both parties anticipate long-term commitments from the deal they are
negotiation. They seem to emphasis more on the long-term benefits. On the other hand,
Brazilians believe in competitive negotiations, which often involve some aggressiveness. While
Indians are known to share information openly with an aim to earn trust, Brazilians despite
having a close relationship rarely share information freely. When it comes to the rate of
negotiating both of the nations mode is slow negotiations often because of the bureaucracy in
government institutions. In both countries, the decision-making is hierarchal while their mode
of communication differs.
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REFERENCES
Aswathappa, K. (2010). International business. New Delhi: Tata McGraw Hill Education
Cellich, C., & Jain, S. (2004). Global business negotiations. Mason Ohio: Thompson-
Southwestern.
De Abreu, M. M., Battisti, R., Martins, R. S., Baumgratz, T. D., & Cuziol, M. (2011). Shared
decision making in Brazil: history and current discussion. Zeitschrift für Evidenz, Fortbildung und
Qualität im Gesundheitswesen, 105(4), 240-244.
Hofstede, G. H., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of
the mind : intercultural cooperation and its importance for survival. New York: McGraw-Hill.
Kapoor, S., Hughes, P. C., Baldwin, J. R., & Blue, J. (2003). The relationship of individualism–
collectivism and self-construals to communication styles in India and the United States.
International Journal of Intercultural Relations, 27(6), 683-700.
Katz, L. (2006). Negotiating International Business. Book surge, LLC.
Kazi, S. (2012). Managerial decision-making style: India, Bangladesh, and Finland: cultural side
of the game. Creating a sustainable business: managerial implications and challenges.
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Kerr, S., & Rifkin, G. (2009). Reward systems: Does yours measure up?. Boston, Mass: Harvard
Business School Press.
Kingsland, V. (2004). Customs and Etiquette of India. Bravo Limited.
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences. Routledge.
Narlikar, A., & Narlikar, A. (2014). Bargaining with a rising India: Lessons from the Mahabharata.
Oxford, United Kingdom: Oxford University Press.
Pearson, V. M., & Stephan, W. G. (1998). Preferences for styles of negotiation: A comparison of
Brazil and the US. International Journal of Intercultural Relations, 22(1), 67-83.
Poelzl, V. (2010). Brazil: A Survival Guide to Customs and Etiquette. Singapore: Marshall
Cavendish International (Asia) Ptd Ltd.
Samovar, L., Porter, R., McDaniel, E., & Roy, C. (2014). Intercultural communication: A reader.
Cengage Learning.
Sen, L. (2007). Communication skills. New Delhi: PHP Learning.
Storti, C. (2007). Speaking of India: Bridging the communication gap when working with Indians.
Boston, Mass: Intercultural Press.
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Appendix
Figure 1 Hofstede model Analysis of Indian and Brazilian Culture
Source: http://geert-hofstede.com/india.html
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