Comparison Between the Indian and European Business Culture
With the increasing pace of globalization, the interrelation between Indian and European businesses is growing at a steady pace. However, there are specific disparities among the European and Indian business culture and practices between them, which can influence business decisions. When we have a closer insight into the business cultures of both countries, we observe that the disparities mostly originate due to the ways of living and prevalent mindsets of the employees and employers.
Let us have a closer look at the 7 key differences between European and Indian business culture:
1. The Difference in Workplace Attitude
Both the employers and the employees in an Indian office are easy going. The work environment is polite and friendly. In India, the employers and the subordinates almost form a family structure which often results in unprofessional behaviours. The sugary attitude between the colleagues can sometimes affect the quality of work.
Contrarily, in the European workplaces, it is the quality of work which is the only governing factor. Age or superior position in the companies hardly matters when it comes to business. People are straight and at times, blunter. In European offices, many younger employees assume higher posts which are close to impossible in the Indian business structure.
2. Prolonged Lag Phase
After the finalisation of a deal, the Europeans like to work on it as fast as possible and also very professionally. On the other hand, in India, it is very usual to reconsider the terms even after the finalization, which may cause a delay in work. In short, the Indian business structure features a lot of unproductive hours and delays, which are strict no’s in the European business structure.
3. Business Hierarchy
In India, people witness a chronological acquisition of posts in companies mostly according to seniority. Furthermore, it is the people in the higher ranks who decide everything. Lower rank employees get hardly any importance. To be honest, there is a sublime monopoly in the business structure.
In the European business structure, every employee receives a fair representation. They require less monitoring and the employees are free to work and represent themselves. Additionally, their ideas get more importance. This induces a positive dynamicity and interactive business environment that promotes growth in business.
4. Bargaining
In India, haggling is so much in the veins. Every structure of society and business includes bargaining. You can expect negotiations on the supply of raw materials, services, and every other nook and corner. In the European business culture, people consider haggling to be extremely disrespectful.
The European businesspeople believe in long term business relationships and visualise bargaining as a spoiler of impressions which can be detrimental for the image of the business and hence must be strictly avoided.
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5. Etiquettes and Manners
The fundamental difference in etiquettes between both the business structures can be attributed to the difference in the anthropological cultures between both regions.
In India, people provide more importance to the age, seniority, and social position of a person. Also, a strict line in the code of conduct exists between men and women. However, in European countries, the person as an individual is prioritised. That is why Europeans address all acquaintances through their forenames irrespective of their age or position. In Europe, the lifestyle is given far more importance than prevalent social norms or cultures. There is no grave distinction between males and females in the sphere of business and work.
6. Importance of Being Punctual
India has a bad name in the entire world for the lack of punctuality and sense of time. But a closer look will reveal that the transport system and overpopulated density of India, makes it nearly impossible to reach a place in time. Also, the ratio of human resources and workload is exceptionally alarming in third-world countries like India. These problems often delay work and make timekeeping even more complicated.
However, like in the rest of the world, European business structure respects punctuality and considers timekeeping as an essential element of work and business. In Europe, the ease of creation and appropriate work allotment make things easier and often every bureaucratic work gets quickly done in no time.
The good news is that conditions are improving in India for the overall betterment of the entire Indian Business structure.
7. Benefits for the Employees
In Europe, the interest of the employees is often the priority of the work structure. Their quality of life and well-being are safeguarded appropriately. In European business houses, if the employees work for extra hours, they get paid almost double their usual pay scale. These may seem to incur additional costs on the business. But in the long run, the employees get the incentive to work better for the improvement of the business and improve their work quality which in the end is supremely beneficial for the company.
In India, things are just the opposite; however, things are on the way of changing for the better.
Though there are many differences in the European and Indian Business structure, both regions have a strong trade relationship. Indian professionals offer their services to many European companies which promotes an exchange of ideas between both the places. For a successful business setup in India, which can stand out in the global platform, you need an expert consultancy agency. You may Contact 3E Accounting.
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
