In a country like India with over 1.4 billion people, doing business and collaborating with Indians is a complex phenomenon. Adding to this is the great cultural diversity that can be observed through the presence of different religions, languages, and ethnic groups. However, there are certain elements that run like a common thread connecting this land of great cultural diversity. If we observe and analyze the Indian society and its culture deeply, these elements become visible, and we can feel their influence on the decision-making process and on business attitudes in India.

The three main elements that form the foundation of Indian society are Family, Hierarchy, and Respect. They form the three main pillars and understanding them will help anyone who wishes to work and to collaborate with Indians. In the next paragraphs, this article intends to highlight the importance of each of these pillars and how they shape business attitudes in India.

The key to understanding Indian society and culture is to look at the role of ‘Family’. This element is considered as a critical factor because the role and influence of family is transposed onto all spheres of life in India. The Indian family plays a significant role in the decision-making process of an individual. Compared to the Western culture, which is more oriented to the protection and freedom of the individual, in Indian culture, the honor and status of the family comes first. It is a culture that is more focused on keeping the integrity of the name and well-being of the family than many other cultures.

The choices made by the family and even the extended family are always regarded as in the best interest of the individual also. The honor and name of the family need to be maintained and upheld, even at the cost of individual sacrifices. On many occasions, we can observe parents, grandparents, and other family members influencing the choice of an individual. This can be anything from choosing what kind of studies a person should be doing, employment, marriages and even business engagements. The whole family structure guides the choice of an individual. This importance of family can be seen when we look at the institution of marriage in India. More than 90% of marriages in India are arranged by the family, based on religion, caste, community, social status, education etc. Even when it comes to employment, many families play an important role in the decision-making process.

The fall side of this, is that many Indians become highly dependent on their families for everything even after getting a job or after getting married. This can sometimes give the impression that taking decisions is a complex process for many Indians and they will always look towards their superiors to take responsibility and decisions. In addition, in the professional environment, the director or the owner has a Mother or Father figure and the employees tend to look towards people in higher positions for any decisions, initiatives and responsibilities. From this perspective, in general, Indian employees tend to take fewer risks and initiatives. They need more guidance as making their own choice is not their strong point. They will look up to their managers and directors who are expected to play the role of the elders to make decisions and take risks.

The second pillar of Indian society is hierarchy, and it is the status symbol of social and professional recognition one gets from the people surrounding them. In India, hierarchy is highly visible in every part of the society and Indians in general like to show off their hierarchical status in different ways. Again, the first experience about hierarchy starts within the family unit. In a classic family structure, the eldest person is hierarchically superior, and it is demonstrated in the way they are treated with respect or fear. Their decisions can sometimes become the final word in some families.

Several titles are given to everyone in the family, including the siblings. In India, it is very rare that someone addresses his/her elder sister just by her name, usually they use some ‘prefix’ or ‘suffix’ added to their name. Outside of the family sphere, it can be just simple use of ‘sir’ and ‘madam’ because someone may seem to be hierarchically superior, or they are a potential client or hold a special post or an office, and in some cases, because they are financially better off.

India is also famous for the caste system that is part of the Hindu religion, which majority of Indians practice. The caste system is a pyramidal structure of the Hindu society based on people’s work and duty transferred from ancestral lineages. Such a system classifies the Hindus into a strict hierarchical structure which cannot be changed. This is a classic example of hierarchy and its cultural acceptance by Indians in general.

In the professional world though caste system usually remains behind the scenes, other social titles like doctor, professor, military titles, official titles, even degrees and professions are highlighted before or after the names of people to show their social importance. The representation of this hierarchy is very visible in the professional world, with many senior managers belonging to a certain age group. Indian employees because of their family upbringing and the principle of hierarchy tend to look towards their manager or director for all decisions and initiatives.

The role of a manager or a director then becomes more like a parental approach, understanding the needs of the employees as well as giving them direction. Because of the strong presence of hierarchy, the manager becomes a guide and a mentor for his team. However, the director or the manager gets little feedback, because criticizing a superior is not welcomed in Indian society. So, because of the strong hierarchy, directors and managers sometimes fail to get the critical feedback that they might require to guide the project towards success. Due to globalization and because of increasing influence of Western management practices, changes can be observed in many corporate structures in India.

The last important pillar of Indian society is Respect. This element is necessary for the smooth functioning of hierarchy. If we study closely, it is within the family unit where the notion of respect is first introduced. And depending on the family there can be strict protocols about this. For example, if someone older comes to the house or even to the room, the younger person has the obligation to stand up to show respect. Elders in Indian society have a special status, and this can be observed in public transports and public areas where it is expected to give your seat to an elderly person.

In the professional world, one way of expressing this is by standing up when directors or owners of the company come in. Another means of showing respect is to acknowledge their hierarchical position in society or their professional titles, if they have any. Showing too much equality among employees holding different hierarchical positions may be interpreted as disrespectful by some. Questioning the superiors or getting into direct arguments with the superiors in a professional environment are potentially considered as not respecting the socio-cultural protocol. However, it is normal for the director or the manager to show their unhappiness with the performance of the team or even get angry, if needed. This would not be considered as disrespectful as it is done by someone hierarchically superior in the chain of command. India being a vertical society, there is an underlying principle that hierarchical superiors are almost always right and should not be questioned.