VSRD International Journal of Business and Management Research, Vol.

VIII Issue V May 2018 / 183

e-ISSN: 2231-248X, p-ISSN: 2319-2194 © VSRD International Journals: www.vsrdjournals.com

REVIEW PAPER

A STUDY OF POWER, POLITICS AND NEGOTIATION

IN INDIAN INDUSTRY
1Shivani
Singh Chauhan* and 2Sunil Kumar Agrawal
1Scholar, 2Associate
Professor, 1,2Department of Management,
Lakshmi Narain College of Technology, Bhopal, Madhya Pradesh, INDIA.
*Corresponding Author’s Email ID: shivanichouhan181@gmail.com

ABSTRACT
Power, Politics and Negotiation is something which should be studied and taken care off for the benefit of Indian Industry. This
research paper will identify various causes and consequences of Power, Politics and Negotiation. Once it’s defined clearly Indian
industry will boost up to the optimum level.

Keywords: Power, Politics and Negotiation.

1. INTRODUCTION GATT/ WTO. Deese defines negotiations as successful or

In Indian Industry, employees are reluctant to
acknowledge the place of power both in individual
motivation and in organizational relationships. Anyway
people use to assume power, politics and negotiation in a
very different way. Linking of these words is the play
within the organization with some of the managers in
consideration to personalities and some play it as a
security
In each and every organization some sort of political
systems exists like - problem-solving instruments, socio-
technical systems, reward systems, and so on and they are
known as political structures. It means that organizations
worked by distributing the authority and setting a stage for
the exercise of power. It is no wonder, therefore, that
individuals who are highly motivated to secure and use
power find a familiar and hospitable environment in
business.
2. OBJECTIVES
 To understand the affects of power, politics and
negotiation.
 To identify how power, politics and negotiation can
be utilized to boost the India Industry
3. ROLE OF POWER, POLITICS AND
NEGOTIATION IN INDIAN
INDUSTRY
In World Trade Politics, author David A Deese examines
‘how’ international political leadership determines the
success or failure of negotiations or expansion of the
failure depending on whether member states agreed or did
not agree to engage on cooperation. Deese starts out by
defining leadership as the ability to influence other’s
actions or beliefs and the capability to enact changes in
political institutions amid domestic and foreign policy
aims. He attributes the premise of his arguments to the
works of authors like O.R Young that link regime
formation to the interplay of three different types of
leadership – structural, entrepreneurial and intellectual –
broadly characterized by the ability to build coalitions,
negotiations to arrive at a compromise and thought
leadership respectively. Deese's argument is most
significant Structural leadership or the ability to provide
direction to other members.
Deese has used the case study method to trace key
negotiation rounds in the evolution of the GATT/WTO,
from 1947 to 2004, to study how leadership determined
successful or failed outcomes of these rounds. His 16 case
studies are split into further periods – 1947 to 1973 (for a
historical perspective on the evolution of GATT), mid
1970s to mid 1990s (leading up to the creation of the
WTO), the third beginning in late 1990s till 2004.
In 1949, Deese traces the failure of its policies which has
been prepared for planned International Trade
Organization (ITO) and attributes it to US’ failure to
provide ‘structural leadership’ to negotiations. He argues
that despite being a proponent of free trade, US President
Truman could not ratify the ITO amid domestic political
pressure such as ideological differences with key senators
and competing foreign policy goals like the Cold War in
1947 and post second war economic crisis in Europe,
Shivani Chauhan and Sunil Kumar Agrawal
citing this as an example of failure of leadership role.
Similarly, he attributes the declining effectiveness of the
trade regime in 1970s to disagreement between the US and
Europe over issues related to agriculture and in effect a
failure of providing joint structural leadership. As a more
recent example, he discusses the blocking role played by
developing nations during the Cancun ministerial meeting
in 2003 that prevented an agreement between member
states.
Deese's concludes that historically, outcomes during
important negotiation rounds in the global trade regime
have been conclusive when individual leadership was
provided by the US in the initial years, followed by joint
leadership by US-Europe leading up to the need for more
countries to take up leadership roles as more areas of
negotiation are brought to the discussion table. Given the
increasing importance of developing countries, Deese
specifically points to the need for emerging countries like
India and Brazil to provide structural leadership and
persuade and engage other members of the WTO and
contribute to the reform of the trade regime.
4. CAUSES OF POWER, POLITICS AND
NEGOTIATION IN INDIAN
INDUSTRY
India is one the world's largest democracies, a fastest and
unevenly developing country. Its diverse population is the
most economically unequal in the world. In comparison to
Europe or North America, India's communication system
is neither well documented nor well understood, leaving
its citizens at a disadvantage when it comes to
communication process. Pradip Thomas blazes a trail
through this landscape with his trilogy of books on Indian
communication. Addresses by the trilogy to Indian
communication in three different ways, but overlapping
lenses: political economy, communication rights, and the
digital. The political economy approach is a view of
communication systems as vital institutions shaped by
political and economic forces. The second approach is
communication rights: attention to the views and activities
of industry, state and civil society actors in the
communication realm; and a focus on norms and values
associated with communication as a public good. The third
part takes in digital media developments in India,
examining their animating forces and resultant social
tensions.
5. OPPORTUNITIES OF POWER,
POLITICS AND NEGOTIATION IN
INDIAN INDUSTRY
1. Free Trade Agreements (FTA) with UK and EU
Free Trade Agreement is one of the biggest steps taken by
the WTO to make the movement of goods and services all
over the world. Since 2007, India and EU have been
negotiating about the Bilateral Trade and Investment
Agreement (BTIA), covering trade in merchandise,
services, and investment. Among EU countries, while
Germany is India’s largest trade partner, UK stands to be
VSRDIJBMR, Vol. VIII (V) May 2018 / 184
India’s third-largest trade partner and biggest importer of
goods. Moreover, India has had a trade surplus with UK in
the past three years. It is thus crucial for India to have a
first mover advantage by executing a bilateral trade
agreement with UK encompassing goods, services and
technology.
Furthermore, after losing access to the single market, UK
will need to independently navigate global (and EU) tariffs
and non-tariff barriers including standards, regulations or
rules of origin.
Proportion of India’s trade with UK and other EU
countries in 2015-16
Moreover, EU and India would emerge as strong trade
partners through enforcement of BTIA. Approximately
13% of its entire world trade by EU is India’s largest
trading partner, while India is EU’s 10th largest trading
partner. India depends on EU for machinery, nuclear
reactors, optical and photo equipment, aircraft, etc. On the
other hand, EU’s top imports from India include mineral
fuels, oil, distillation products, organic chemicals, textiles,
etc. The key sectors of trade in services among these
countries are sea and air transport, computer and
information, financial and banking services.
Indian exports of industrial, agricultural and
pharmaceutical products to EU have been hampered by
issues concerning Sanitary and Phyto sanitary Measures,
Technical Barriers to Trade and other Non-tariff Barriers.
Despite several rounds of negotiations, BTIA has failed to
conclude.
2. Rise in cheaper imports from UK
Currently, India’s highest imports from European Union
countries come from Germany. However, with the
reduction in the value of the pound, high quantity of
British goods would be available for cheaper prices to the
Indian consumer.
6. DIFFERENT STYLES OF POWER,
POLITICS AND NEGOTIATIONS IN
INDIAN INDUSTRY
Indian style
Indian pupils always good in negotiations, expert
bargaining and well versed in negotiating for their
Shivani Chauhan and Sunil Kumar Agrawal VSRDIJBMR, Vol. VIII (V) May 2018 / 185

personal and for their families as part of life in India. 7. CONCLUSION

Through their networks, Indians are well prepared with From the above context we can conclude that the Power,
data on competitive scenarios and prices. It is important to Politics and Negotiation play an important role in Indian
maintain an open, gracious style, never openly displaying industry. Power, Politics and Negotiation has an overall
anger or confrontation. Strong and influential positions or impact on the working of various sectors of Indian
appeals normally used very strategically to encompass a industry. This is something which will be studied in brief
position, at the same time one should never appear angry so that it will have positive impact on the Indian industry.
or hostile. If talks reach an impasse, better to resume
patiently at a later time. Keep cool.
8. REFERENCES
Building Indian trust [1] https://www.questia.com/library
Demonstrating respect comes from proper introductions [2] http://www.e-ir.info/2011/01/27/world-trade-politics-power-
principles-and-leadership/
and build the trust, feelings and modesty (in dress and
[3] https://hbr.org/1970/05/power-and-politics-in-
demeanor), and conveying word of appreciation to your organizational-life
host. One must take an advantage as a stereotype of the 
foreign business person as ‘trader-invader’, coming to
India to take the benefits. It is most important to take an 
active participation to cultivate personal relationships and
establish a reputation for integrity. You may extend your
personal network by accepting social invitations
(birthdays, dinners, weddings etc) which may work for
many hours and days by doing so you may experience the
Indian hospitality and culture.

Indian rationale
To understand the logic, usually Indian take time in
learning; competitive advantages, factors of motivation,
and in some cases, the spiritual timing or location of a
business deals also. With a population of graduates from
India’s famed IIT’s (Indian Institute of Technology) and
IIM’s (Indian Institute of Management), and many top
universities in the West, Indians are able to draw upon
strong business acumen. Many Indians adopted quickly to
grasp the opportunities to build a long - term relations for
the benefit of economy. A bottom line approach or a quick
fix may be perceived as simplistic and short-term thinking.

Indian cultural priorities

Indians known for having a deep sense of obligations and
duty to their families and will tend to negotiate to bring the
best deal for the family or group rather than for individual
advantage.

Compromise
Indians are known for their compromising nature. They
normally really on ‘Give and take’ and this mean a lot in
building a relationships and keep harmony when you want
to explore all sorts of possibilities.

Renegotiating previous commitments

Indians usually took the business decisions more as a
process than as a contract, and may revisit items
previously agreed upon, continuing to negotiate in case
there were any items previously left on the table.
Graciously peoples enter into the talks and they prepared
very enthusiastically for what they can and what they
cannot do. Organization must be prepared to accept that
change which has been required. If you cannot make
changes, apply firmness with total grace.
Shivani Chauhan and Sunil Kumar Agrawal VSRDIJBMR, Vol. VIII (V) May 2018 / 186