1. RL 1
Cross Cultural & Diversity
Management
Fore School of Management

2. RL 2
Introduction to the subject
 Why do we need to understand cross-cultural issues, be
sensitive to those from other cultures, to be comfortable
with & make others equally so in culturally diverse
situations? Discussion.
 There is a need to understand cross-cultural issues in
the organizational setting; cultural dimensions directly
affect organizational performance;
 This course aims to enhance knowledge, sensitivity and
even the practice of appropriate behaviours in the
cultural context.

3. RL 3
Session plan
 Introduction to culture: meanings, coverage, dimensions
and concepts. The nature of culture, quiz.
 Cultural diversity & priorities. Assigning of country-wise
group projects on important points, issues &
comparisons with India. Hofstede’s cultural dimensions.
 Ethics & social responsibility. Group discussion on Ethics.
Mid-term assessment (objective-type testing)
 Managing across cultures. A self-appraisal. Group
presentations.
 Organizational culture & diversity. Types of
organizational culture.
 Working through communication barriers in diverse
organisations & countries. Training take-aways &
interaction session.

4. RL 4
Evaluation method & weightage
 Group work on Indian culture: 10 marks
 Country-wise project: 20 marks
 Group discussion: 10 marks
 Internal assessment: 40 marks
 Mid-term assessment: 20 marks
 End term assessment: 40 marks

5. RL 5
Ground rules
 Punctuality
 No cross talking
 Mobile phones
 Forming of groups & marking process
 Asking questions

6. RL 6
Culture: meanings, coverage,
dimensions and concepts
 The global economy has arrived & along with
the excitement is the increased need to be
culturally sensitive & aware of cross cultural
issues.
 Some instances of a protected economy & the
dramatically different scene today.
 A major challenge of doing global business is to
adapt effectively to different cultures. Common
blunders.
 Even small blunders can have huge negative
effects, so awareness & sensitivity are not
options any longer but rather imperatives.

7. RL 7
The nature of culture
 The word is taken from the Latin cultura,
related to cult or worship, also meaning to
cultivate.
 For purposes of our study, culture is acquired
knowledge that is used to interpret experience
& generate social behaviour. Such knowledge
forms values, creates attitudes & influences
behaviour.
 Division into groups & group work on ‘Issues
which create Indian culture as it is today –
religion, society, family, festivals, cuisine, clothes,
literature, activity, sports, television & cinema.’

8. RL 8
The nature of culture
 The characteristics of culture: it is
 Learned
 Shared
 Trans generational
 Symbolic (e.g., language, art, religion)
 Patterned: this means that culture has
structure and is integrated; a change in one
part will being changes in another.
 Adaptive: Regardless of the genes we
inherit, we humans adapt. (e.g., through
changing times, influences, marriage, etc.)

9. RL 9
The nature of culture
 Personal examples of how cultural awareness
has helped, or a lack of it has hindered.
 Work-related examples - our lack of knowledge
about the culture of lands and religions which
are not our own.
 Something as simple as a handshake.

10. RL 10
Cultural diversity
 Why is knowledge & awareness of culture important?
Cultural impact on international management is reflected
by these basic beliefs and behaviours.
 Examples how culture can directly affect management
approaches:
 Centralized vs. decentralised decision making
 Safety vs. risk
 Individual vs. group rewards
 Informal vs. formal procedures
 High vs. low organizational loyalty
 Cooperation vs. competition
 Short term vs. long-term horizons
 Stability vs. innovation.
 None of these is right or wrong, good or bad; just
different. Being aware of differences and honouring them
is what is important.

11. RL 11
What do you think?
 Are juniors the same kind of people as management?
 Should the boss know all the answers? Should he/she make
all the decisions as well?
 If a team succeeds, is it right to give special rewards to the
ones who worked very hard, or to the whole team?
 If an employee has tried to achieve a breakthrough for the
company through an idea that is somewhat risky, should
he/she be reprimanded?
 Is it okay for the boss to have privileges such as drinking
coffee on the job, which others may not have?
 Is it okay to call a boss by his/her first name?
 Which kind of boss do you think is best – one who is
autocratic, persuasive, paternalistic or democratic?
 Do people from all cultures shake hands in a similar way?

12. RL 12
A simple handshake
Even something as simple as a handshake is different in
different countries.
Culture Type of handshake
 United States: Firm
 Asian: Gentle (shaking hands is unfamiliar & uncomfortable
for some with the exception of the Korean, who usually has a
firm handshake.)
 British: Soft
 French: Light and quick
 German: Brisk & firm
 Latin American: Moderate grasp; repeated frequently
 Middle Eastern: Gentle; repeated frequently.

13. RL 13
Session 3: Cultural priorities
 Various cultures have varying priorities. (Discussion)
 Countries have varying priorities too. Please look at the
attached table and note down relevant points in the
‘India’ column.

The need for sensitivity – group feedback.

14. RL 14
Session 4: Hofstede’s cultural
dimensions
 Researchers trying to understand why people
behave as they do, have provided a composite
picture of culture by examining its subparts or
dimensions.
 The Dutch researcher Hofstede identified four
such dimensions.
 Power distance, which is the extent to which less
powerful members of organizations accept that power
is distributed unequally.
 Uncertainty avoidance: The extent to which people
feel threatened by unclear situations, creating beliefs
and institutions that try to avoid these.

15. RL 15
Hofstede’s cultural dimensions
 Individualism: The tendency of people to look after
themselves & their immediate family only. Also
collectivism, which is the tendency of people to
belong to groups and to look after each other in
exchange for loyalty.
 Masculinity: ‘a situation in which the dominant
values in society are success, money & things’ &
Feminity, where the dominant values in society are
caring for others & the quality of life.

16. RL 16
Smallest space analysis
 Aside from the dimensions identified, researchers have
clustered countries into similar cultural groups to study
similarities & differences. They have done this using the
mathematic technique of smallest space analysis (SSA)
 This tool maps the relationship among countries by
showing the distance between each. When one looks
at this two-dimensional map, it is possible to see those
countries that are similar to each other & those that are
not.
 Ronen & Shenkar, who have provided perhaps the most
integrative analysis of all available findings, found eight
major clusters in terms of countries.

17. RL 17
Smallest space analysis
 The studies examined variables in four categories:
 the importance of work goals
 need deficiency, fulfillment and job satisfaction
 managerial and organizational variables; and
 work role & interpersonal orientation.
 Some say that studies had focused only on one part of
the world – however, it still seems to be the best there
is.
 What is very clear is the fact that sensitivity to other
cultures is imperative - when dealing with people,
working with them or even associating with them prior
to (& even subsequent to) forming a work relationship.

18. RL 18
Session 5: Ethics & social
responsibility
 Why do we need to study this? Individual sharing
 To understand the major ethical issues & problems
confronting MNCs in selected countries;
 To discuss pressures on & action taken by selected
industrialized countries and companies to be more
socially responsive to world problems; and
 To explain initiatives for greater accountability to
corporate conduct & limit corruption around the
world.

19. RL 19
Ethics
 Ethics is the study of morality & standards of conduct.
Increasingly, MNCs have structured codes of ethics to
guide the behaviour of their employees, to ensure their
operations conform to these standards.
 Some of the ethical problems and concerns include the
following:
 Political & business scandals
 Hostile work environment issues
 Equal opportunity/gender issues
 Piracy, counterfeiting & industrial spying problems.

20. RL 20
Ethics – a discussion
Group discussion on “Suggestions for
dealing with ethical issues in companies
worldwide, particularly relating to India.”
Methodology:
 Understanding of the rules of group discussion
 Introduction to the topic
 Group discussion
 Wrap-up.

21. RL 21
Mid-term assessment
 Objective-type assessment on issues covered
so far in the course.
 Total marks for assessment: 20.

22. RL 22
Session 7: Managing across cultures
 Multinational corporations use 4 basic human resources:
 Home country nationals: managers who are
citizens of the country where the MNC is
headquartered. When working away from home, they
are also called expatriates or expats, meaning that
they live and work outside their home country.
 Host country nationals: These are local managers
hired by the MNC.
 Third country nationals: These include managers
who are citizens of countries other than the country
in which the MNC is headquartered or the one in
which managers are assigned to work, by the MNC.
 Inpatriates: Those from the host country or third
country nationals, assigned to work in the home
country.

23. RL 23
Working with foreigners – some
tips
 Understand the work ethic of the home country
of the MNC, use your own input, then clarify
your strategy with your seniors.
 For example, American managers make fast
decisions in comparison with those from some
other countries. They are also taught to
operate without giving much direction.
 This may be contrary to the ways managers
from other countries are used to, & it is
important to understand their predominant
ways of working.

24. RL 24
Working with foreigners – some
tips
 Many managers in the west go home from
work around 5 p.m., often taking work home
with them. Managers from other countries
often work late, almost as a habit. People from
one nationality may need to convince others
that while the ways of working may be
different, that they generally work just as hard
as the others.
 The use of discipline is used differently in
different cultures – it is important to know &
understand each.

25. RL 25
Criteria for overseas assignments
 What criteria should companies use when
selecting their executives for a foreign
assignment? Some suggestions:
 Ability to adapt/desire to work overseas
 Technical competence & human resource skills
 Family circumstances & adaptability
 Previous overseas work experience
 Understanding of host country culture
 Academic qualifications/Knowledge of language
 Understanding of/open to home country culture
 Also physical & age-related issues & of course
the appropriate leadership abilities.

26. RL 26
Self-evaluation
 I would be good for a foreign assignment
because………..
 I would not be good for a foreign assignment
because………..
(Please give thought to the earlier learning & state two
points each.)

27. RL 27
Session 8: Group presentations
 Group presentations based on country-wise
projects on the following:
 Important points relating to culture
 Country-related issues
 Comparisons with India.
Internal component marks: 20.

28. RL 28
Session 9: Organisational culture &
diversity
 Some questions to ask ourselves:
 What is organisational culture?
 What are the guidelines for establishing a
strong organisational culture in the presence
of diversity.
 Companies & countries have their own
culture. Additionally, people who come into
an organisation bring in their own cultural
input. Employees of MNCs are expected to
fit in. Adhering to the culture of the
company is key, for managers to be
successful.

29. RL 29
The nature of organisational culture
 It consists of the shared values & beliefs that
enable members to understand their roles &
the norms of the organisation. Some qualities
of company culture:
 Observed behavioural regularities such as common
language, terminology & rituals;
 Norms, such as work to be done, cooperation
between management & employees;
 Dominant values (e.g. high product & service quality,
high efficiency, etc.)
 Corporate philosophy & rules (e.g. regarding
customers, behaviour within the organisation, etc.)

30. RL 30
Types of organisational culture
 The researcher Trompenaars describes 4
different types of organisational culture:
 Family culture
 Eiffel Tower culture
 Guided missile culture &
 Incubator culture

31. RL 31
Types of organisational culture –
Family Culture
 Family culture is characterised by a strong
emphasis on hierarchy & orientation to the
person. In a family-type environment, the
company is headed by a leader regarded as a
caring parent who knows what is best for all.
 In such a culture, people respect those in
charge & look to them for guidance & approval.
In return, the paternal relationship ensures
they are treated well & continually employed.

32. RL 32
Types of organisational culture –
Eiffel Tower Culture
 Eiffel Tower Culture has a strong emphasis on
hierarchy & orientation to the task. Jobs are
well defined, employees what they are
supposed to do, everything is coordinated from
the top.
 This culture, like the tower it is named after, is
steep, narrow at the top, broad at the base.
 The person holding the top position in this
culture can be replaced at any time, & this
would not affect the work that others might be
doing.
 Like a formal hierarchy, it is impersonal &
efficient.

33. RL 33
Types of organisational culture –
Guided Missile Culture
 The guided missile culture strongly emphasises
equality in the workplace & task orientation.
 Unlike the Eiffel Tower culture where
assignments are fixed, here people do
whatever it takes to get the job done. All types
of people work in close harmony & it is not
known in advance as to whose contribution will
be most crucial to the job.
 Those working in this culture are motivated
intrinsically for the job on hand rather than just
for money & benefits.

34. RL 34
Types of organisational culture –
Incubator Culture
 Incubator Culture is a culture characterised
by strong emphasis on equality & orientation
to the person. It is based on the premise
that the role of organisations is to serve as
incubators for the self-fulfillment of their
members.
 Such a culture has little formal structure.
Those in it perform roles such as confirming,
criticising, developing or helping complete
an innovative product or service, creating
environments where they thrive on an
intense, emotional commitment.

35. RL 35
Organisational culture
 The four types of cultures are described in their
‘pure’ form – most company cultures being
mixed to various extents.

36. RL 36
Understanding cultural differences
 Even though country clusters indicate regional
similarities, most countries have varying
cultural highlights. Those of some countries are
given here.

37. RL 37
Doing business in China
 Perhaps because of its long tradition of
isolation, doing business in China is a long
process. Values & relationships rated highly.
 The primary criterion for doing business in
China is technical competence.
 The Chinese are punctual. However, they will
take their time making decisions.
 When negotiating a contract, the Chinese may
ask many questions & nod their assent at the
responses. The nodding generally means that
they understand or are being polite, not that
they agree.

38. RL 38
Doing business in China
 In negotiations, the Chinese give concessions &
also expect some in return.
 An important dimension of Chinese culture is
guanxi, which means good connections. This can
result in lower costs for doing business,
increased business & sales. Who you know is
important.
 The Chinese do not depict nor like excessive
emotion of any kind.
 Being a collective society, the Chinese pride
themselves on being members of a group. This
is a contrast to the West.

39. RL 39
Doing business in Russia
 Personal relationships & friendships with
partners are more important than business
laws & contracts.
 Because the rules of business have changed a
lot in Russia, it is good to use local consultants
who have been there & understand the local
business climate.
 The definition of ethical behaviour may be
different as compared to other countries.
 Decision-making is generally a long process.
 Russians like to negotiate with just one firm at
a time.

40. RL 40
Doing business in Russia
 They also like doing business face-to-face.
 The Russians are not forthcoming with financial
information until they know their partner well
enough.
 When starting a business relationship, it is
important to:
 Stress mutual gain
 Clarify terminology (to be sure both understand)
 Not compromise or settle too quickly – often
considered a sign of weakness.
 Reinforce written contracts with reminders of deal
benefits. Celebrate with a nice dinner afterwards!

41. RL 41
Doing business in France
 It is important to know that the French are
very status-conscious, unlike those from other
cultures. They are also friendly, funny &
sarcastic, & may admire people who disagree
with them.
 While the French work very hard, they are not
motivated by competition.
 French firms are often highly centralised,
making decision-making a long process.
 Some etiquette-related issues to remember:
 When shaking hands, use a quick shake with some
pressure in the grip.
 Be on time for meetings & social occasions.

42. RL 42
Doing business in France
 Conversation is acceptable during a meal, not
personal conversation. Early friendliness is not okay
– this includes first names, speaking of personal or
family details, etc.
 In negotiations, the French try to find out all of the
other side’s demands & aims are. They reveal their
own, however, only late in the deal.
 They do not like being rushed into making a decision
& rarely make important decisions at meetings.
 They are logical & precise in their approach, not
given to making compromises.

43. RL 43
Doing business in Arab countries
 The sense of time in Arab countries is vastly
different from that of western nations. This is
important to remember.
 Also important is the sense of destiny people
believe in, that a higher power dictates the
outcome of important events.
 The Arabs often act based on emotion rather
than logic. Their meetings may be constantly
interrupted & those new to their culture will
need to accept this state of affairs.
 Business meetings typically conclude with an
offer of coffee or tea.

44. RL 44
Doing business in Arab countries
 While titles are most often not in general use
on the Arabian peninsula, the Arabs give much
importance to status & rank.
 They do not appreciate others putting on a
show of self-importance, nor taking credit for
joint efforts.
 Red tape can generally not be avoided, making
patience critical to success in business dealings
 Connections are extremely important, making
well-connected people get jobs done fast.
 Important decisions are generally made in
person.

45. RL 45
Session 10: Communication
barriers – perceptions
 Advertising messages: The way we understand
or misunderstand someone, advertising
messages may or may not communicate the
desired message.
 Language differences in advertising (page 190)
 Message misinterpretation when not adhering
to the culture of the country (e.g. presenting
business cards, bowing, attire, etc.)

46. RL 46
Training takeaways
 Individual bullet-point sharing on what you are
taking from the training;
 Revision – a group exercise;
 Good luck to all of you!