Cross Cultural Issues in Hr........

A PROJECT REPORT
ON
“CROSS CULTURAL ISSUES IN HUMAN RESOURCE
MANAGEMENT”
“Cross Cultural Issues in Human Resource Management”
TABLE OF CONTENTS
Chapters Page Nos.

1. Introduction 1-3
2. Objectives and Scope 4-5
3. Limitations 6-7
4. Theoretical Perspective 8-46
5. Methodology and Procedure of work 47-48
6. Analysis of Data 49-60
7. Findings, Inferences and Recommendations 61-63
8. Conclusion 64-66
9. Summary of the Project Report 67-69
10. Annexure 70-84

i. Questionnaire 71-73
ii. Proposal 74-81
iii. References 82
iv. List of Figures, Charts, Diagrams 83
v. List of Tables 84
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CHAPTER – 1
INTRODUCTION
1
INTRODUCTION
With the evolution of mankind over time and the globe becoming smaller, there is
unstoppable blend of various cultures because no one on the earth can survive in complete
isolation. This dependence on others for various needs is how civilizations have become
civilized to accept.
The citizen sees himself becoming a global citizen with its becoming imperative to be
sensitive to cultural differences across various walks of life. The two largest democracies in
the world are the US and India. They are the perfect example of cultural diversity.
Society has seen a tremendous transition in the last two centuries. From racial segregation
to racial equality, society has really evolved. With emphasis moving towards the
improvement of the quality of life, we have witnessed isolated cultures opening their doors
to trade and business and becoming more acceptable to cultural integration.
Organizational Culture
When people from different social, economic and educational backgrounds work together
in an organization for several years, they tend to internalize certain common beliefs, values,
attitudes and norms of behavior. The common bonds that get firmly established become the
organization’s culture and any deviation from the boundaries of this culture is difficult
indeed. In fact senior members of the organization do not welcome such changes and resist
these to the maximum extent possible.
Culture for culture’s sake will work no more. Any culture that is tuned to satisfy and cater
to the needs of the markets and the customers will alone work - this has become an urgent
necessity.
Passive Organization Culture

In passive organization cultures, there is a tendency to postpone decisions, act slow, and
generally encourage formation of elaborate bureaucracies. Most public sector organizations
are the example.
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Reactive Organization Culture

The reactive organization cultures are slightly better than passive cultures. Here,
organization reacts to every knock - be that from internal or external environments. Crisis
management is the order of the day. No attempts are made to avoid conflicts - instead
attempts to diffuse them after they have arisen, are seriously made. The here and now
attitude to any aspect of organizational functioning has in built weakness: long term, system
based solutions are just not available. Managers pride themselves in being "practical"
people. But they would not realize that being practical for the most part, is confined to
managing routines.
Proactive Organization Culture

The proactive cultures do have any of the weakness of the passive and reactive cultures.
These are organizations that have cultures born out of farsighted, progressive and
professional Chief Executives. Visionary leadership is there for the asking, even at junior
management levels. Best organizational culture should facilitate professionalism, build
optimism, positive attitudes and always help management to take tomorrow’s decision
today.
Proactive organization cultures are not a matter of choice - it is just that only these
organizations will survive, grow and develop at all times. Excellence is there for asking - it
is something that has to be achieved.
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CHAPTER – 2
OBJECTIVES
AND
SCOPE
4
OBJECTIVES AND SCOPE
OBJECTIVES
The following are the research objectives of my study
Research objectives
To understand what is Cross-Cultural Diversity
To find out cross cultural differences and thus the problems felt by the employees while
interacting with foreign Clients/Customers
To suggest efficient and practical ways to overcome the problems faced by the
employees to handle these cross-cultural differences.
AIM OF THE STUDY
Everyone would agree that cultural diversity at the workplace utilizes the country's skills to
its fullest, and contributes to our overall growth and prosperity. It hasn't been exploited yet
hence the progress remains slow. While we are in the midst of the longest period of
economic growth the world has been witness to the ever seen gap between the "rich" and
"the poor" continues to widen.
One of the reasons for this has been the lack of diversity in the Corporate World.
Companies have now started to recognize that diversity contributes by retaining good
employees, lowering costs by developing skills in-house, and developing a reputation that
helps attract new employees. This is especially important with the economy doing so well,
and the demand for skilled labor at record levels.
The Aim of the Study is to:
Understand the concept of Cultural Diversity and infuse sensitivity.
Find out if the employees feel the cultural differences while interacting with foreign
clients / customers.
Understand the various kinds of difficulties faced by them.
Find out how they have handled these differences.
Conclude with our observations and findings ways to overcome the problems faced due
to these cultural differences.
This project gives valuable insights on diversity. It then proposes and elaborates eventual
logic in promoting cultural diversity within corporations and strategic planning for diversity
being a driver.
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CHAPTER – 3
LIMITATIONS
6
LIMITATIONS
1. The sample size is 100 and it is too small to generalize the opinion and to boil down to
a conclusion.
2. As the cultures of the countries under study are going through a revolutionary change,
hence these preferences are also liable to change.
3. These orientations are specific to the overall preferences of the Countries and not target
towards each individual in the country.
4. Stiff competition did not allow the management to disclose the entire training material
used in the Culture Training despite my best efforts.
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CHAPTER – 4
THEORETICAL PERSPECTIVE
8
Theoretical Overview
Here is a general survey of cross-cultural diversity across a few major corporations of the
world. The project will look at a few international companies in this section to understand
the value of cultural diversity at their workplace.
IBM
Diversity on a Global Scale: For a company with 355,000 employees serving more than
170 countries, diversity comes with the territory.
“What makes IBM unique is we aren’t trying to build a culture of inclusion and diversity.
That is inherently a part of our culture – and not just our culture from an employee
perspective but in terms of how we operate the business,” Glover says. “We are truly a
global enterprise.” At IBM, the notion of being ‘global’ isn’t just a tag phrase – it’s the
ability to engage people at every level to work effectively together across different
countries, time zones, languages and cultures.
Enabling employees to work together across those lines of difference not only
fundamentally enables IBM to operate as a truly global enterprise but to operate with
efficiency and innovation. “Our job is to fundamentally enhance the ability of the people in
this organization to understand those differences, to work with and across them
respectfully, and to actually use them to the greatest extent possible to leverage innovation
and effectiveness in terms of the work we do and our ability to respond to our clients,”
Glover says. While the cornerstone of IBM’s diversity work centers around eliminating
traditional barriers that may exist due to race, gender, sexual orientation, disability status,
or language – IBM has also had to address issues of culture that extend beyond the typical
attributes associated with differing backgrounds. “We’re seeing that culture now extends to
areas of difference across other dimensions such as technical orientation, management style
and other domains, which affect how we run the business and interact with others,” Glover
acknowledges.
By addressing the gamut of issues that may arise from cultural differences, IBM has
maintained a true culture of inclusion that erases any notions or beliefs of hierarchy based
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on individual differences. “When you begin to build a culture that is respectful and
inclusive around things like race, gender and sexual orientation, the organization learns the
skills to manage without assumption,” Glover explains. “That skill can be applied across
lots of things – so you can put technical and non-technical people together and people don’t
necessarily assume that they’re smarter, better, brighter and more able than others.”
Price Water House Coopers

Diversity enhances our perspective, our point of view, and our ability to provide our clients
with the highest level of distinctive service.
Our diversity initiatives and strategies are designed to attract, develop, and advance the
most talented individuals regardless of their race, sexual orientation, religion, age, gender,
or any other dimension of diversity. Our distinctive approach to diversity is based on a
belief that we each have a personal accountability for success in this area. We provide our
people with training and tools to help increase their awareness and understanding of
differences and why they matter, so their actions can contribute to our inclusive and high-
performing workplace culture.
Leadership Perspective
As we strive to be our best, we each need to think about how we can connect with different
types of people and how we can learn from each other. This is how we will become the
distinctive Firm.” Dennis Nally (US Chairman and Senior Partner)
Cross-Cultural Preferences & implications

Culture is a diverse topic in itself. The subjectivity and the lack of objectivity of this topic
make it tougher to quantify. However cultural preference can surely be classified. In fact as
culture is such a vast topic it can be classified in many ways and the meaning can also be
interpreted variously. One commonly understood meaning is what we have discussed till
now. However we shall now classify it from a different perspective which is used in in
Culture Training.
Classification of different cultural preferences:

Time
Action
Communication
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Space
Power
Individualism
Competitiveness
Structure
Thinking
Environment
Cultural Preferences have been broadly classified into 10 domains. Each classification can
be further divided into the preferences of individuals, teams, organizations, cities, countries.
Let’s look at each of them individually and understand its meaning and interpretation.
Time: Time as a classifying factor basically differentiates the different ways in which
people understand ‘time’ and how they react to things around them in reference to ‘time’.
Time is further bifurcated into four preferences:
Single Focus / Multi Focus – Some of us prefer attending to one task at a time and take on
the next task post the completion of the first task. However, few like to have more than just
one task on their platter. They find it more exciting and fun however a person having a
preference for Single Focus finds it challenging. Let’s look at simple examples for the two
to understand the differences in the two preferences. Example: Shah Rukh Khan releases
atleast 2-3 movies a year, the shooting for which mostly overlap. On the other hand we
have an equally successful actor, Amir Khan who believes and prefers to release only one
movie in a year and excel in that. Hence, we can say that Shah Rukh Khan prefers. Multi-
Focus whereas Amir Khan prefers Single-Focus. There is nothing right or wrong in either
of their preferences. It’s a personal choice.
Fixed / Fluid – People with a strong preference towards ‘Fixed’ orientation would always
reach a place on time (if not early), would prefer not to cancel a plan at the last minute.
However, a person with a preference for ‘Fluid’, not deliberately, might not reach the venue
on time, may be late and if has to cancel the plan would not ponder too much over it.
Example: You throw a lunch party for some friends of yours and categorically mention the
time of the party as 1300hrs. A friend of yours who is ‘Fixed’ oriented arrives sharp at
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1300hrs however another close friend of yours with a preference for ‘Fluid’ arrives at
1345hrs.
Past / Present / Future – Different people lay different amount of emphasis on different
periods of life. Some feel that their ‘past’ is most important hence their today also revolves
around it. Some live ‘for the moment’ and consider only their ‘present’. While some feel
that we should live with the ‘future’ in mind. A simple example to understand these three
preferences is usually found in most families within India. The Grandparents usually have a
strong preference for the ‘Past’ and focus not only on the past and history of the country but
also the family. Parents on the other hand, usually tend to have more focus on the Future.
Hence, the extra emphasis on good education, investments etc. Children on the other hand
focus more on the present and believe in living their life for the moment. They wouldn’t
bother much about the past or the future.
Action: The broad category of Action entails the basic preference while performing an
action. Some people are task oriented while others are more people oriented. Both are able
to attain results however have different methods. Let’s look at the different preferences in
‘Action’.
Being / Doing – When given a task to complete, people with a preference for ‘Being’
orientation, would of course complete the task however make sure that the people involved
remain pleased and that no bond or ties get adversely affected. On the other hand, someone
with a strong preference for Doing would lay emphasis only on the task at hand and would
not be bothered by building relations. If relations were to go sour in the process of
completion of the task this would surely not act as a hindrance to the task for a Doing
person. In my experience I have had the privilege of working with a varied set of
colleagues and superiors. While in the Hiring – HR function I had the opportunity to work
with 2 different Sr. Vice Presidents. One preceded the other. Well the earlier Sr. VP had a
very strong preference for ‘Doing’ and believed that one comes to office to work and ‘not
to make friends’. He was a ‘Task Master’. Till the time the task was getting completed he
didn’t really care to build a bond with his team. He till date has managed to leave a very
strong impact on his team because of this performance. When the next Sr. VP took over it
was a ‘Cultural Shock’ for us. He was a complete opposite of the previous one. He having a
strong preference for ‘Being’ believed in building rapport with his team and also synergy
within the people at work. This did make him easier to approach and get along with. I had
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the chance to view these two diverse preferences very closely and feel the difference and its
impact on people around.
Communication
A person’s way and preference of putting across his/her thoughts is called Communication.
Communication might use a language as a medium or could also use signs / non-verbal
cues. Let us now look at the different preferences within Communication.
High / Low Context – The preference of ‘High Context’ means that in any communication
be it verbal or non-verbal the context would be highly visible and nothing would be left to
ones imagination. On the other hand, in ‘Low Context’ the receiver of the message may not
be clear what the exact meaning or what the real context of the message is. This could at
times leave the receiver a bit confused. For e.g. A supervisor can provide feedback to his
team depending on his preference of communication. If he has a preference of High
Context, he would approach the employee and give a candid feedback on his dipping
performance. If he prefers Low Context, the employee’s desk may be moved farther away
from the supervisor’s, some responsibilities may be taken away, and his suggestions and
ideas may be blatantly ignored.
Direct / Indirect – Some one who prefers ‘Direct’ communication would call a ‘Spade a
Spade’. On the other hand someone who prefers Indirect communication would always
‘Save Face’ not only his but others too. He would go to great lengths to avoid public
conflict and embarrassment. Suppose a colleague of yours is not wearing a pretty dress to
work. You get to witness the reaction she gets from people around her. One lady who
prefers Direct Communication expressed herself by saying “The red dress doesn’t look nice
on you.” While another who prefers Indirect Communication expressed the same emotion
by saying “The blue dress that you wore yesterday suits you more.” The same emotion has
been expressed by both the speakers. Using the direct approach might have left a sour taste
in your colleague’s mouth and she might not have appreciated this true, frank, open and
direct feedback. While on the other hand using the ‘Indirect’ approach doesn’t assure that
the correct message has been put across. The message could have been misinterpreted.
Expressive / Instrumental – You could either be extremely eloquent, use physical and
flowery language to complement your verbal communication or you could prefer to be
accurate and functional, placing little value to style. The first preference is called
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‘Expressive’ and the latter ‘Instrumental’. Let’s look at an example to understand this point
better. Your supervisor has given a project to two team members. When asked by the
supervisor if the work has begun on the project, one team member with a preference for
Instrumental Communication replies by saying “No I haven’t.” While the other team
member with a preference for Expressive Communication replies “I still have to start on the
glorious project.”
Formal / Informal – By formal we mean people might like using the title and the last
name of a person instead of just the first name. They like to follow ceremonies and
protocols. In informal communication, the communicator is very casual and need not
follow any formal protocol of communication. Let’s look at the example of Indians. In
government services like the Army, all are addressed by their titles i.e. their rank e.g.
Colonel, Major etc. However, in most of the MNC’s in India, all including the supervisors,
middle and senior management and the leadership are addressed by their first name.
Space: Space means your personal area or information. Space is segregated into two
preferences.
Private / Public – People, who prefer Private Space, maintain certain space between
individuals. Touching is not common neither among friends nor colleagues. They are also
rather private about their feelings and do not disclose to all. However, people with a
preference to Public space readily share limited space with one another. An example most
commonly found at our work place where the team member likes to talk about her personal
life with her manager however as the manager prefers private space he doesn’t disclose
anything from his side and wonders why the team member discloses private information to
him. She on the other hand expects her manager to also come out a bit and disclose his
personal information.
Power: Power is the ascribed or achieved forms of status. A person’s status in Indian
society is determined by age, gender, caste (in the case of Hindus), family origin and
background, regional and linguistic identity, education, and social and professional status.
Hierarchy / Equality –Hierarchy means demarcations, levels applied to people. Some

people and countries prefer Hierarchy and have very well and clearly marked levels. They
have fixed hierarchical structures. On the other hand people who prefer equality, they
believe that all are at the same level and no one is above or below. Let us look at the
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example from work. A hierarchy driven superior would tell the update only to the manager
and ask the manager to communicate to the remaining team. However, if the superior
believes in equality then he himself would communicate the update to the entire team
including the manager.
Individualism: How an individual behaves and reacts when in a society is what defines
Individualism.
Individualistic / Collectivistic – A person with a preference for Collectivistic would

consider himself as a member of a society that functions as an intricately woven structure
of interdependencies. On the other hand an Individualistic places a high value on individual
responsibility and achievement. For example a team performs well and is rewarded with a
team award. Some team members are very happy (Collectivistic) while some aren’t as they
feel that their individual performance was not recognized and rewarded (Individualistic).
Universalistic / Particularistic – For people with Particularistic orientation rules are seen
as general guidelines intended to be adjusted to the conditions of a particular situation.
However for people with Universalistic orientation believes in equality and that rules and
regulations apply to all equally. For example, one time a friend of mine applied with an
organization and did not clear the interview process. He being a Particularistic wanted me
to make an exception and still hire him. However, I as an individual prefer Universalistic,
hence believe that the rule applies to all and if he didn’t clear the interview no exceptions
could be made for him.
Competitiveness
Competitiveness overall means that when in a situation would one prefer to compete or
would one cooperate with each other and succeed.
Competitive / Cooperative – A person with a strong preference for Competitive would

believe in the value of work and material success. They would go to great lengths to
achieve their target and would not others come in the way. On the other hand, a person with
a preference for Cooperative would value relationships with colleagues and of course
family. For example the difference in the aim of an MNC v/s an NGO. An MNC works for
profits and competes against other organizations (Competitive) where as an NGO works for
social service and not monetary gains (Cooperative).
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Structure
Everyone has a different way of working and living their life. Some like it to be well
organized and structured while others like to live life at the spur of the moment.
Order / Flexibility – People who demonstrate an order orientation believe that an

established system is the best guard against the instability and conflict that can arise from
unforeseen events. Whereas someone with a flexibility orientation toward structure,
demonstrates the ability to adapt when things do not work out as expected. A simple
example of a group of friends planning a leisure trip. A person who is Order oriented would
meticulously plan the entire trip. Whereas a person who is oriented toward Flexibility,
would like the trip to be impromptu.
Thinking: Everyone doesn’t handle situations in the same fashion. In fact countries over a
period of time develop their own style of thinking which is seen in most people living in
that region.
Deductive / Inductive - The deductive element involves a commitment to theoretical

thinking, approaching situations first from a general and then a specific point of view.
While the Inductive element relies on practical examples and analogies to make decisions.
In a business crisis situation two managers are asked to come back with solutions as to why
the department is not performing well. The first manager talks about improving the VOC
(Voice of Customer) as that must be the reason for the downfall in the performance of the
department (Deductive). The other manager feels that though VOC is always considered
theoretically the reason for the performance dip, however he reverts with data to prove that
it’s actually the VOE (Voice of Employee) that has gone down impacting the productivity
of the department (Inductive).
Linear / Systemic – Systemic thinking is creating a holistic image of a complex project or

viewing the "big picture." Linear thinking is dividing ones thoughts into discrete sections
and dealing with them in a sequence. I have faced a situation at my organization. A
supervisor informed a manager to improve her team’s performance. (Systemic). So the
supervisor was just looking at the ‘Bigger Picture’ of performance improvement. The
manager on the other hand, did a deep dive and found the different sub-parameters that
needed to be dealt with. She looked at the VOC, VOE, Quality Audits etc and found ways
to improve each. (Linear)
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Environment: The way a person has his surrounding and how he influences it makes his
environment.
Control / Harmony / Constraint – A drive to shape ones environment and establish and
meet high standards, displays a control orientation. To strive to maintain a balance and
harmony at the interpersonal level is Harmony. However to continuously feel constrained
due to external forces is Constraint. E.g.: A Manager gives a task to be completed to
Sam and John. As the Manager is control oriented he expects that both Sam and John will
be able to take charge of the situation. Sam who is harmony oriented, after deciding on the
action plan checks with the manager for his approval and then executes the same. However,
John who is constraint oriented, is unable to go ahead with any planning without the
Manager’s continued approvals and checks.
Country Specific Preferences

After discussing in depth the classification of Cultural preferences, we will now look at
some major countries and see how different their cultural preferences are. These differences
impact our day to day business interactions with people of those countries.
Table No. 4.1: The major countries that we would look at are as follows:
 India
 USA
 UK
 Australia
Disclaimer: The information reflected in the cultural profile of a country is general in

nature and is intended only as an initial hypothesis about value orientations in a given
country and to provide basic cultural awareness. The country profile is not meant to reflect
either stereotypes or the different cultural preferences of the individuals within a specific
country.
CLASSIFICATION INDIA USA UK AUSTRALIA

TIME Multi-Focus Single-Focus Single-Focus Single-Focus
Fluid Fixed Fixed Fixed
Past Present Past Present
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Present Future Future

Future
Being Doing Being Being
ACTION
Doing Doing
High Context Low Context Low Context Low Context
Indirect Direct Indirect Direct
COMMUNICATION Expressive Instrumental Instrumental Instrumental
Formal Informal Formal Informal
Informal
Private Private Private Private
SPACE
Public
Hierarchy Equality Hierarchy Equality
POWER
Equality
Collectivistic Individualistic Individualistic Individualistic
INDIVIDUALISM Universalistic Universalistic Collectivistic Collectivistic
Particularistic Particularistic Universalistic
Competitive Competitive Competitive Competitive
COMPETITIVENESS
Cooperative Cooperative Cooperative
Order Flexibility Order Flexibility
STRUCTURE
Flexibility
Deductive Inductive Inductive Inductive
THINKING
Systemic Linear Linear Linear
Control Control Control Control
ENVIRONMENT Harmony Constraint Harmony
Constraint Constraint
Now let us look at each country one by one to further understand the differences.
India: India has been independent for about 60years and has grown and evolved
tremendously over these years. It is known for its rich and vast culture. However, over the
years this culture is also getting influenced by cultures of other places. With India
becoming more visible on the global front, people across the world have become more
aware of the Indian culture. This inter-mingling of cultures opens further doors for stronger
relationships and is getting the world closer.
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We shall now discuss the Culture Classifications for India and look at some examples to
make the differences clearer.
Time: Multi-focus / Fluid / Past / Present / Future
Multi-Focus
High-ranking Indian managers, officials in the government offices, and ambitious
employees tend to believe that an individual who is responsible for more tasks than others
is perceived as being more powerful and a better worker than others. As a result of this
association between power and workload, Indians prefer to take on as many tasks as
possible at one time.
Fluid: Indians define time loosely and generously and frequently say that "There is time for
everything." In Hindi language the word for yesterday and tomorrow is the same, “kal”.
It is commonly seen in marriages in India where let alone the guests, even the bride and
groom do not arrive at the venue according to the time mentioned in the Wedding cards.
Deadlines, schedules and appointments are viewed as guidelines and are not considered
very rigid. Despite their fluid orientation to time, Indians are aware that many foreigners
are punctual and that they expect business meetings to begin at the designated hour.
Therefore, Indians make concerted efforts to be on time, using planners and written
agendas to keep themselves on schedule. Bangalore, Bombay, Chennai and even some
other areas in the urban corporate centers of India are showing greater time consciousness
in delivering products and results on time.
Past / Present / Future: Indians exhibit an orientation to time that includes perspectives of
the past, present and future. There are two India’s; “the urban metropolitan corporate” and
the “rural agrarian” where 80 percent of the people live. There is a certain amount of dual
orientation to time that is followed in the day to day life of the people. These surely are few
of the challenges of a developing country at present. Being Future oriented i.e. futuristic,
Indians have been quick to modernize and globalize their business practices. There is a
determination to maintain an 8-9 percent growth rate of the economy. Yet the realities of a
developing country do exist. For the poor, short-term rewards are the goal. They live ‘hand-
to-mouth’. The size of this population segment is huge because of which the present-time
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orientation is prevalent in Indian daily life even for those in the middle and upper classes
including those in business.
Action: Being / Doing

Being: Indians like to nurture a trusting relationship as it is the foundation of a successful
business transaction. They will build this trust through a slow process of self-disclosure and
base it on long-term goals. Indians quite often socialize with coworkers outside of the
office. In fact, when Indian contacts invite a foreign business person to an increasing
number of social events, it is usually a sign that some trust has been established and that
they will want to make a deal. Refusal to participate in such gatherings can be grounds for
mistrust and lost opportunities
Communication: High Context / Indirect / Expressive / Formal
High Context
Indians enjoy employing the subtleties of verbal language and use many non-verbal cues
when sending and interpreting messages. Verbal and non-verbal communication styles
differ across languages. Although today English is the preferred business language
nationwide, still communicators often take their verbal and non-verbal cues from their own
native languages, increasing the difficulty in understanding non-verbal cues.
Indirect
Indians will go to great lengths to avoid public conflict and embarrassment or to "save
face." It is important for them to allow others to save face as well, with harmony being the
ultimate goal. Indians rarely use the word "no," fearing that such direct refusal appears rude
and could ruin a potential long-term business relationship. E.g.: In India if a neighbor calls
on, even if you are busy and do not want to meet the person you would still invite the
neighbor and be as hospitable as possible. This is not the case in other countries.
Expressive
Indians use many physical gestures to complement their verbal communication. In business
relations, people of the same gender may hold hands. Men and women maintain distance
when greeting each other and speak formally without physical contact. Another interesting
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aspect is the use of ‘silence’. The use of silence is eloquent. It is used in a variety of ways
and is a way to denote ‘hesitation to say no’ in India, leading to misunderstandings among
global partners.
Formal
In business dealings, Indians address their coworkers with titles instead of first names. The
usage of Sir and Ma’am is very common. Although they have modernized their workplaces
and their business practices are becoming increasingly "Western," Indians still take a great
deal of pride in their culture. Indian philosophy and culture consider guests along with
parents, teachers and priests as divine representatives and treat them very formally and
reverently.
Space: Private / Public
Private / Public
Indians in general have a public orientation toward space as they readily share limited space
with one another. However, the middle and higher classes demand a greater degree of
personal space as testament to their status within the hierarchy, exhibiting a private
orientation to space.
Power: Hierarchy
Hierarchy
A person’s status in Indian society is determined by age, gender, caste (in the case of
Hindus), family origin and background, regional and linguistic identity, education, and
social and professional status. Ascribed and achieved forms of status are equally important.
While the constitution prohibits any discrimination on the basis of predetermined social
standing, the caste system still plays a prominent role in business and politics.
Individualism: Collectivistic / Universalistic / Particularistic
Collectivistic
Indians consider themselves as members of a society that functions as an intricately woven
structure of interdependencies. Through membership in one’s caste, Indians are
subsequently more loyal to social institutions such as their family, marriage, company,
employer, and nation than to their individual interests. The loyalty and sacrifice of Indian
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workers can present problems as well as benefits in the business realm. The camaraderie
among Indian workers often discourages individual responsibility and makes it difficult to
achieve deadlines and business goals. Additionally, it is often difficult, if not impossible,
for a manager to fire an unsatisfactory worker. Doing so might affect the morale of the
whole team since team members may share a strong bond with the worker.
Universalistic / Particularistic
As rules are not universally applicable, challenging laws and regulations is common in
many Indian organizations. Knowing the "right" person in a company or government
agency will often exempt one from having to follow a "required" procedure. This is
changing especially in Bangalore, Hyderabad and Bombay and other metro corporations
towards a more universalistic approach. Meritocracy is gaining importance in recruitment.
However the corporate sector variations are atypical of the society at large where the
particularistic orientation is quite strong.
Competitiveness: Competitive / Cooperative
Competitive / Cooperative
While cooperation is necessary in the collectivistic Indian business world, and where
individual needs are subordinate to a group’s welfare, employees also endeavor to be
singled out as exceptional individuals. Keeping the collectivistic orientation in mind, Indian
professionals learn that it is necessary to work in groups in order to achieve their goals. At
the same time, they must compete for the best grades or task accomplishments in order to
obtain desirable positions.
Structure: Order / Flexibility
Order / Flexibility
Indian culture demonstrates a high degree of order in society, with its prevailing caste
system, and in business, with its strong hierarchical structure. Indians also exhibit a
flexibility orientation in that their particularistic orientation. In the Indian mindset,
everything is negotiable. Indians utilize a flexibility orientation when scheduling events.
While they usually attempt to arrange items in an orderly manner, they readily accept a
change in schedule.
Thinking: Deductive / Systemic
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Deductive
Indians think deductively, and they value debate based on theories and principles. They
believe that they can make correct decisions only if they can adequately apply sound
theories and a conceptual framework to a proposal. In companies that have had some years
of experience with the West, there is a growing capacity to style switch and demonstrate the
skills of inductive thinking in their presentations. There may be different levels of such
capacities among the different members of the team.
Systemic
Indians think systemically by creating a holistic image of a complex project or the "big
picture." They are interested in understanding how the pieces of a system fit together to
form a functional whole.
Environment: Control / Harmony / Constraint
Control / Harmony / Constraint

Indians exhibit a combination of harmony, control and constraint orientations toward their
environment. While they have a strong desire to maintain harmony with their environment,
they also strive to exert some control over it. They simultaneously feel constrained by
external forces. Indians do their best to avoid confrontation and prefer to maintain at least
the appearance of harmonious relationships in both their personal and business lives. The
control orientation is linked to the multi-focus orientation thus managers who wish to
display their importance manipulate their workload in order to control the perception of
their standing within the company. The Indian constraint orientation emanates from a very
strong hierarchy orientation toward structure. Furthermore, as Indians are respectful and
never question their superiors, they are constrained by their supervisors’ decisions.
United States of America

The USA has been the strongest world power for ages. America is also called a Melting
Pot. That is because people from all over the world have come and settled or are working
there. This gives the USA a very unique culture which is a mix of all.
Time: Single Focus / Fixed / Present
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Single Focus
With their single-focus orientation toward time, U.S. Americans prefer to finish a task from
beginning to end and to schedule their time sequentially. Individuals and teams are
recognized for compartmentalizing their tasks and following guidelines to handle each
section. Interruptions and deviations from these guidelines are unwelcome and avoided.
Fixed
U.S. Americans see time as a rigid and precise concept, a commodity to be saved, spent
wisely and not wasted, reflecting their fixed orientation toward time. They define
punctuality precisely; the allowance for being late for a meeting only stretches five to ten
minutes.
Present
U.S. Americans have a present orientation toward time, placing little emphasis on historical
precedent and tradition while desiring quick results. Immediate results, quick turnaround
and short-term planning characterize the mindset of the U.S. American manager.
Action: Doing
Doing
U.S. Americans focus on tasks and results that are measurable by objective standards,
demonstrating their "doing orientation" toward action. For the U.S. American business
professional, there are projects to achieve, personal errands to cross off the "to do" list and
family projects to finish. These accomplishments produce personal satisfaction and earn
rewards and recognition from others. Special commendations go to those who accomplish
more than expected in a given timeframe.
Communication: Low Context / Direct / Instrumental / Informal
Low Context
U.S. Americans display a low context orientation toward communication, preferring
explicit and detailed communication to ambiguous or brief messages. Written
correspondence, including letters, faxes and emails, are often preferred over face-to-face or
phone conversations because it is faster, precise and more permanent.
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Direct
U.S. Americans are direct communicators, expressing their thoughts and feelings frankly
and impersonally when sharing information. U.S. They encourage frank dialogue to create
consensus. They also use direct eye contact and squared body posture to face their listener.
Instrumental
U.S. Americans take the instrumental view that language is a tool through which tasks are
accomplished rather than purely a creative means of expression. They rely on factual,
objective messages to communicate. Professionals may dismiss a letter written with overly
elegant and flowery language as "too wordy" or "ambiguous." They prefer substance over
style and will seek to isolate one or two main points of the letter.
Informal
U.S. Americans are quick to dispense with ceremony and protocol and seek to establish
relationships through informality and relative equality. They believe their warm, casual
communication style demonstrates credibility and sincerity, which is consistent with their
informal orientation. In the United States, managers may treat their subordinates informally
and seek to build rapport.
Space: Private
Private
U.S. Americans have a private orientation toward space, valuing privacy and personal
space in their work environments. U.S. American employees favor private offices and use
partitions in open areas. One always requests permission before entering another person’s
space. Meetings and phone calls are conducted behind closed doors and, if one needs to
interrupt; one always knocks and says, "Excuse me for bothering you." At work, greetings
are handshakes and people will stand at least an arm’s length apart when conversing.
Certain conversational topics, such as salary, conjugal life and other intimate matters are
taboo.
Power: Equality
Equality
Most U.S. Americans will say that they fundamentally believe that everyone is born with
the same rights, responsibilities and opportunities. As a result of this equality orientation
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toward power, differences in social, economic and educational status are minimized, and
people who flaunt their advantages are poorly received. In most U.S. companies, the
hierarchy is relatively flat, and employees have fairly easy access to their managers and
their manager’s manager. While large corporations create organizational charts delineating
different levels, they are often used to separate functional responsibilities rather than to
differentiate layers.
Individualism: Individualistic / Universalistic
Individualistic
U.S. Americans have a highly individualistic orientation, learning from an early age that
they must learn to make their own choices and solve their own problems. They value
independence, self-sufficiency and self-reliance.
Universalistic
A clear sense of right and wrong, similar application of rules and laws for everyone and a
dedication to fairness and equal treatment of everyone illustrates the universalistic
orientation of U.S. Americans. Favouritism, nepotism and influence based on family
connections or socio-economic status are generally frowned upon.
Competitiveness: Competitive
Competitive
The competitive orientation of U.S. Americans is exemplified by their strong desire to win
or gain advantage and to acquire signs of financial prosperity. U.S. American managers
motivate employees with enticements of promotions and raises. Employees are often
willing to work longer hours for greater rewards. U.S. professionals tend to be self-assured,
outspoken and assertive, to the point where they may seem to be inconsiderate of the
feelings and needs of others.
Structure: Flexibility
Flexibility
U.S. Americans cultivate an ability to adapt to new circumstances and meet new needs,
demonstrating their flexibility orientation toward structure. U.S. American managers,
employees and consumers are encouraged to be risk-takers and experimenters, willing to
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forgo the "comfortable and familiar" for the "new and improved." Employees who are
innovative, resourceful and can work in unstructured environments are considered
praiseworthy.
Thinking: Inductive / Linear
Inductive
U.S. Americans are inductive thinkers, moving from specific facts to general principles and
relying on their own experiences for guidance. U.S. Americans thrive in data-rich
environments and take advantage of abundant and easily accessible information through the
media, libraries, associations, organizations and the Internet.
Linear
In the United States, information, conversations and projects proceed in an orderly and
sequential fashion, demonstrating a linear orientation toward thinking. If a U.S. American
gets confused because he or she is dealing with too many details simultaneously, he/she
may use the phrase, "Let me get this straight," and then try to organize the different details
sequentially.
Environment: Control
U.S. Americans believe that if a problem arises they can find a solution, displaying a
control orientation. U.S. Americans place great value on setting, working toward and
reaching their goals. Unforeseen delays or complications are rarely acceptable. Adjustments
are made quickly to compensate for changes and to reach predetermined results with as
little change as possible in the timing, budget and specifications originally outlined.
United Kingdom
The UK has been a culturally rich country. British have ruled India and left a long lasting
impact on all. The impact of British culture on Indians is very apparent. British have always
been known to have a rich culture and till date they are proud of it. The culture is evident
even in a regular interaction with them.
Time: Single Focus / Fixed / Past / Future
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Single Focus
As a result of their single-focus orientation, the British like to concentrate on one task at a
time. The British like to organize and lay out their plans, and then follow through with what
has been outlined. The British are famous for following their schedules and appointment
books.
Fixed
The British consider punctuality an essential element of a professional demeanor, which
reflects their fixed orientation to time. Employees rigorously adhere to deadlines and often
meet them in advance. There is a tendency for British managers to place more emphasis on
the achievement of a deadline than on the quality of work.
Past / Future
The British have a long and illustrious history that is evident in the presence of important
landmarks and the continuation of age-old customs, all pointing to a past orientation.
However, the British also have a future orientation to time, willing to trade short-term gain
for long-term results. The British believe that what has been successful in the past has a
good chance to be successful in the future. Many older employees still cling to the
traditional values of constancy, honesty, openness, loyalty and stability.
Being / Doing
The British have a doing orientation and believe in achievement and accomplishment, but
they also rely on professional connections and social class, revealing their being
orientation. The British focus on the accomplishment of tasks and making decisions. They
are assertive rather than aggressive and are loyal and dedicated workers. They also seek to
develop trust as an important tool for ensuring that achievements are met. The British like
to balance their time at work and the quality of life outside the office, and value the two
equally.
Communication: Low Context/ Indirect/ Instrumental/ Formal/ Informal
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Low Context
The British place strong emphasis on using language with precision, reflecting their low
context orientation toward communication. In professional situations, the British prefer
specific and detailed language, admiring a colleague or partner who demonstrates good
written and oral communication skills.
Indirect
The British prefer using an indirect orientation to communication. The minimization or
avoidance of disagreement, conflict and criticism in all interactions will help maintain a
cordial working environment. The British do their best to avoid conflict and confrontation,
which can be interpreted as threats to personal integrity. The preservation of dignity and
saving face are important to maintaining good relationships and ongoing discussions.
Instrumental
By focusing on sharing information with precision, control and for a specific purpose, the
British display an instrumental orientation. The British firmly believe in keeping "a stiff
upper lip". The ability to confront adversity with courage and strength of character. Any
approach that borders on overly emotional appeals or gimmicks will arouse immediate
suspicion.
Formal / Informal
Basic courtesy, respect and good manners are cornerstones of British interpersonal
interactions for all ages and professions. More specifically, among the older generation and
those in more traditional professions, the formal orientation to communication will be more
prevalent. For the younger generation and for employees in more flexible areas of work, the
informal orientation to communication has become more common. The British follow
protocol and expect extremely polite public behavior from citizens and visitors.
Space: Private
Private
The British clearly delineate boundaries and distance, reflecting their strong private
orientation toward space. A separation between work life and home life and the
concealment of private or emotional issues are commonplace, even among co-workers of
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long standing. Personal space is highly respected, and an arm’s length distance between
two speakers is considered appropriate. The physical workplace is divided into distinct
private and public areas. Private areas demarcate physical barriers between oneself and
one’s coworkers. Many British companies still allocate individual office space to managers
rather than have them sit in relatively open environment/cubicles.
Power: Hierarchy / Equality
Hierarchy / Equality
Up until the last couple of decades, the British traditionally have had a hierarchy orientation
toward power. However, most companies and institutions that espouse modern
management approaches are practicing the equality orientation with positive results.
Historically the British class system has greatly influenced how the British view themselves
and others, although its ironclad determination has lessened in the last twenty years. In
British companies, many operating units, such as sales or marketing, exercise a good deal
of autonomy. Younger or more egalitarian unit managers will often delegate duties down
the line. Once they delegate the work, many managers will take a hands-off approach and
let the assignees handle the job.
Individualism: Individualistic / Collectivistic / Particularistic
Individualistic / Collectivistic
The British are driven and motivated primarily by their affiliation to groups, reflecting their
collectivistic orientation toward individualism. However, there has been an increase in
successful entrepreneurs in Britain, reflecting an individualistic orientation. The British are
slightly collectivistic in their orientation, as they are driven and motivated primarily by
their affiliation to groups. The traditional English values of fair play and justice should
mean that diverse, cross-cultural or cross-functional teams function efficiently in the
workplace. However, in practice, the island mentality can foster a rise in individualism and
competition leading to more self-made entrepreneurs, a result supported by the
government’s current policies.
Particularistic
Although British universalism imposes a single sense of right and wrong or good and bad
on the actions of the people and the system, the actions taken according to these
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assessments are applied with a particularistic orientation to individualism. Some might

consider the British, founders of the class system, the original particularists of the Western
world. Decision-making and problem-solving processes can be formulaic, but judgments
are applied differently depending upon class or rank of the participants. The institution of
the "old boys network" still carries some influence in the processes of hiring and
promotion. There is also more than a hint of inside influence when the younger generation
is applying to and being accepted by top-ranked learning institutions.
The British, especially the older generation, have a cooperative orientation, valuing
interdependence, and the quality of relationships and interactions.
However, younger workers are discovering that to move ahead in their careers, they may
need to compete with their peers for better positions. The British expect to build strong and
trusting relationships with work associates. They are strongly team and group oriented, and
they emphasize the importance of process and balance. Interest in working more to earn
higher salaries and climb the corporate ladder is increasing, particularly among younger
workers. The British are also internationally competitive outside the work environment in
such areas as football (soccer), theater and literature.
Structure: Order
Order
The British have an order orientation toward structure in that they frown upon deviations
from the rules. Traditions and protocols offer more security, predictability and stability than
radical change. British employees prefer precisely defined job descriptions that explicitly
state what is expected of them. They like to work toward achieving agreed-upon standards
of service and quality.
Inductive
The British believe that personal experience, empirical data and experimentation form the
foundation from which general business concepts emerge, reflecting their inductive
orientation toward thinking. When the British evaluate the quality of presentations and
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proposals, they tend to make the decision on whether to approve them based on how closely
the materials adhere to similar, successful proposals and proven concepts, data, and
products.
Linear
British thinking and conversation patterns tend to follow a linear orientation, with visible
connections being made between sequential events, between cause and effect, and between
logic and the analysis of individual components.
In business, the British tend to first identify components of a proposal or a problem and
map out primary cause and effect relationships. Then they will convert the issues into
sequences or chains of events in order to address them.
Environment: Control / Constraint
Control / Constraint
The British exhibit a mixture of control and constraint orientations in their relationship with
the environment. The control orientation exerts its influence as the British seek to maintain
their relatively influential position in the international business community. The constraint
orientation can be seen in the way the British assume that their traditional customs and
values have set a precedent that establishes the path for the future. Faced with a problem,
the British business professional will strive to identify a solution and take ownership of
tasks needed to make improvements. Their determination is evident in the saying, "Where
there is a will there is a way." The British face the powerful institutions of the monarchy
and Parliament, which set fairly rigid and unchangeable parameters, rules and policies.
Australia
Australia the island continent has less native population however over a period of time it
has attracted a large number of people from across the globe. Together they have developed
a unique culture for themselves.
Time: Single Focus / Fixed / Present / Future
Single Focus
Australians prefer to concentrate on one task at a time. They approach things in a linear,
sequential order and will tend to feel uncomfortable tackling more than one task at a time.
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Australians like to compartmentalize work and organize tasks into discrete subtasks. The
task at hand is the sole focus of the single-focused person. Interruptions or last-minute
changes of plan are frustrating.
Fixed
Australians view time as something to be used wisely and efficiently. They value the ability
to manage time well and to adhere to a deadline or schedule. In business, the fixed
orientation toward time manifests itself in a propensity to plan and schedule, as well as the
need to structure events precisely.
Present / Future
In their overall view of life, most Australians prefer to live for the moment, extracting the
maximum pleasure and benefit from the present. In a business context, Australians value
the long-term approach in business planning. Given their present orientation, Australians do
not depend on historically established traditions.
Educated in the European/North American business system, the Australian manager shares,
to some extent, the values of that tradition and hence is a long-term planner in many of his
or her business decisions.
Being / Doing
The Australian action orientation is balanced between doing and being, attempting to
balance the importance of building and maintaining relationships with the accomplishment
of tasks. Australian professionals like to get down to business quickly. Although they are
often friendly and informal, the building and maintenance of interpersonal relationships is
not seen as the purpose of business interactions. Completing the task at hand is the main
goal.
In Australia, work and play are carefully separated. This means that the more expeditiously
the business part of the day can be dealt with, the easier it will be for business colleagues to
enjoy their afterwork hours. In fact, Australians are sometimes described as "purposeful
hedonists." Enjoying life is almost compulsory. Conducting business efficiently allows
more time for enjoyment.
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Communication: Low Context / Direct / Instrumental / Informal
Low Context
Coupled with their extremely direct style of communication, Australian communicators
usually spell out the entire message they wish to get across. In a business context, it would
be fair to say that all requests, statements of responsibility, presentations and so forth
contain no hidden messages, nothing that must be interpreted.
Australians tend to understate any personal or emotional messages. Praise is given

grudgingly, and feelings are rarely expressed. This is not to say that Australians do not have
emotions, merely that to articulate them is not normal practice.
Direct
Australians are extremely direct in both sending and receiving messages. They do not shy
away from saying what they feel, nor are they offended by blunt speech. The idea of saving
face, prevalent in many other cultures, hardly exists in Australia. Professionals are honest,
open and frank to the point of bluntness. If they want to know something, they will ask. If
they think a person has performed poorly, they will say so. Australians often welcome
disagreement because it leads to livelier conversation. They do not link disagreement with
disliking their counterparts, but rather with expressions of respect and sincere interest.
Instrumental
Australians demonstrate the preference for accurate and functional communication, placing
little value on style and eloquence in making a point. The instrumental orientation supports
the Australian’s desire to use work time efficiently, thus permitting the optimization of free
time.
Informal
Australian society is very informal. Professionals and casual conversationalists alike
usually dispense with ceremony and protocol. Australians are quick to use first names and
dispense with formalities. So ingrained is this sense of informality that other people who
abide by social customs and rules of protocol are seen as "putting on airs" or as acting
“above themselves" - something sure to bring a loss of respect from an Australian.
Space: Private
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Private
Australians are not, as a rule, physically demonstrative. A certain space between
individuals is preserved, and touching is not common, either among friends or colleagues.
They are also rather private about their feelings.
The Australian high degree of informality may mislead outsiders to believe that they are
more public and open than they really are. Therefore, it is important not to confuse
informality and directness with a public orientation toward space.
The Australians’ private orientation to space plays out in the business setting in the need to
make appointments to see colleagues (rather than "disturb" them by suddenly dropping by),
and in disclosing no more information than is absolutely necessary.
Power: Equality
Equality
Australians have a very strong equality orientation toward power. They are uncomfortable
with firm authority and fixed hierarchical power structures.
Australians recognize that some differentials in status do exist, but they try to avoid making
reference to such differences. This means that subordinates and superiors treat each other
relatively equally.
Individualism: Individualistic / Collectivistic / Universalistic
Individualistic / Collectivistic
Australians appear to favor an independent, individualistic orientation, and yet they also
have a strong group bond, which is more typical of a collectivistic orientation. There is a
strong desire to own one’s home and therefore to live in an environment where one’s
individuality can be expressed freely. Individual personal achievement is seen as important,
and Australians typically design their lives based on their personal interests. In a business
setting, Australians make decisions unilaterally and through consensus. Australians usually
feel comfortable asserting their own opinions but do not wish to make decisions that put
their own interests before those of friends and colleagues.
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Universalistic
Along with being an equality-oriented society, Australians also prefer rules and regulations
that apply to all people equally. Australians have a strong aversion to favoritism. Fairness is
essential and a high value is placed on equal application of rules and standards, regardless
of status. No one should expect special treatment or exemption from the rules, regardless of
their position within an organization or group.
In accordance with individualism and collectivism, Australians combine the orientations of
competition and cooperation. They enjoy competition against those in power while they
foster cooperation among peers. In Australia’s modern history, individuals have had to
compete for scarce resources and struggle to survive and thrive in challenging
circumstances. In today’s workplace, employees are motivated to compete to a moderate
degree, although much of their work will lead to a cooperative approach. Decision-making
processes tend to be cooperative since management and subordinates share similar values,
objectives and abilities. Information flows fairly easily throughout the corporation, and
various hierarchical levels will attempt to reach consensus in order to make decisions.
Structure: Flexibility
Flexibility
Australians demonstrate flexibility and openness toward change and new ideas. Australians
show considerable willingness to change. They can easily take on a new role, as long as
they are convinced that it is worthwhile. They also desire to be free from authority - to do
things their own way and to be able to take risks to accomplish their goals.
Inductive
Australian professionals are inductive thinkers, basing their decisions on experience and not
on theories or accepted beliefs. Australians feel confident in relying on their experience as a
frame of reference. They experiment before making a final decision.
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Linear
Australians are linear thinkers, dividing their thoughts into discrete sections and dealing
with them in sequence. They also prefer to deal with their problems one step at a time.
Presenters will often use a cause-and-effect or compartmentalized organization to deliver
their information, rather than the "big picture" approach favored by systemic thinkers.
Business proposals may be considered in isolation. In other words, decisions may be made
on one project without considering the potential effects on other concurrent projects.
Environment: Control / Harmony / Constraint
Control / Harmony / Constraint

Australians exhibit a combination of the constraint, control and harmony orientations
toward their environment. They recognize the influence of the external environment, yet
they manipulate this environment to attain a better quality of life. In the end, they attempt to
find a balance between nature and human progress. The constraint orientation emerges
from simple geography. Australia is a vast country in which the majority of the population
lives in a few urban areas along the coast. The Outback or central region is a harsh,
unremitting wilderness in which few people can live successfully. Due to these extremes,
Australians recognize the importance of external forces and conditions in defining their
abilities, actions and limitations.
Despite geographic constraints, Australians have, in a relatively short time, managed to

carve out a highly developed nation. There is a belief in the individual’s ability to at least
influence, if not control, his or her environment. The harmony orientation manifests itself
as Australians try to create a sense of living in balance with nature - not fighting to control
it or feeling constrained by it.
DIVERSITY WITHIN TEAMS

Teams are made up of different types of people who vary from each other on the basis of
their cultural preferences. In present times, teams do not comprise of only people from the
same country but also from across the globe. This makes it even more diverse. In India,
there already exists so much diversity within the country that even if one doesn’t have
foreigners within a team it is still diverse. As a team member and especially as a Manager
for the team, we need to understand these differences and learn to appreciate them.
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The first step in doing so is to evaluate your own self. Analyze, learn and understand what
your own preferences are. Once that is done then one needs to evaluate each team member
and understand the differences in the preferences between the team member and yourself.
Taking this initiative will surely help not just your team members but also you as this
would lead to a more affable team.
Let us now compare countries on the following concepts of managing people:

Characteristics of a good manager
Motivation
Decision Taking
Teams
Timelines
Performance Appraisals
Conflict Management
Our first step in understanding and handling diversity is to first understand our own self.
We need to analyze our own country and see how we function and then compare ourselves
and our preferences with others.
India
Characteristics of a good manager: Indian managers tend to fabricate strong emotional
bonds with their subordinates, peers, and superiors. Recruitment and promotion are based
largely on connections and loyalty. While relationships are very imperative in India,
managers are also chosen on the basis of intellectual capability and knowledge. Managers
are expected to know more than their subordinates, both in terms of expertise and
privileged company information.
Motivation
Due to Indians' cooperative and competitive orientations as well as their collectivistic
orientation to individualism, they are motivated both by individual and group achievement.
Indians strive to be individually exceptional as they compete for coveted positions in
universities and in the highly competitive job market. If the team that a manager handles is
praised and awarded it of course is also an award for the manager, however he would
expect and desire a separate individual award for the performance as well.
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Decision Taking
In India, the highest-ranked officials take decisions. Since many companies are family-run,
this often includes only family members. The most powerful decision makers may include a
father and his oldest son while other family members play lesser roles in the negotiation
process. Also as India as a whole is Hierarchy driven and Constraint oriented, that further
emphasizes the need for the superior to take the decisions.
Teams
Teamwork in India is universal and Indians tend to be efficient team members. As a result
of their competitive, cooperative and being orientations, reinforced by their educational
backgrounds and work environments, Indians cooperate well and generally enjoy working
together as they are proficient at showing their individual creativity within a team setting.
Timelines
The Indian fluid orientation to time permits for deadlines to be fairly flexible. When a
project is assigned, it is more important to get the project done well than to get it done on
time. Because of their multi-focus orientation, Indians are eager to work on several tasks at
once since the number of responsibilities communicates one's importance as well.
Regular employee performance evaluations are a relatively new model in Indian business.
Due to the Indian collectivistic orientation, individual performance appraisals can have an
undesirable effect on team performance. For example, one Indian employee was provided
so much developmental feedback that he became embarrassed and the quality of his work
declined even further. Consequently, the morale of the entire team suffered.
Conflict Management
Indians prefer to evade conflict but will characteristically participate earnestly in
intellectual debates. While they have strong opinions and are willing to voice them, having
a preference for indirect communication they shy away from serious altercation about the
most important issues concerning the business at hand. In a team setting, Indians seldom
express personal opinions, and in consonance with their cooperative and hierarchical
orientations, they allow team leaders to make decisions for the team as a whole.
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United States
Characteristics of a good manager: Managers are expected to set an example for others in
the organization, inspire and train their subordinates to reach higher levels and capitalize on
the capital, human and natural resources. Integrity, leadership, dedication, hard work,
innovative thinking and a willingness to take risks are all qualities which are valued in U.S-
American managers.
Motivation
Money, and its affiliated materialism and prestige, is one of the prime motivators for
employees. The potential for new opportunities, promotions and on-the-job training are also
motivating factors for employees. Employees enjoy public appreciation of their
accomplishments and they often identify themselves by their personal achievements, which
makes them highly competitive.
Decision Taking
Managers tend to base their options on inductive reasoning, uniting details into a
meaningful strategy and combining relevant patterns with innovative approaches. Accord is
valued and brainstorming in meetings is common. However, the manager, whose area of
responsibility, the decision most affects tends to make the final decision. Decisions which
have a greater impact on the organization as a whole are made higher up in the hierarchy.
Decisions are often made and executed rather quickly.
Teams
Many U.S. managers advocate the value of teamwork though U.S.-American individualistic
and competitive orientations can sometimes hamper the shared efforts necessary for
success. Hoping to foster more cooperative groups, many U.S. companies offer training
classes in teamwork and team leadership. In general, teamwork to most U.S.-Americans
refers to cooperative behavior and good work interaction between co-workers and
managers.
Timelines
U.S.-Americans tend to have a fixed orientation to time and employees receive encouraging
reviews for being punctual, meeting deadlines and making an efficient use of their time.
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Deadlines are spelled out clearly and the timelines include short-term goals, reflecting a
present-orientation.
Formal written assessments are conducted on an annual basis. Employees are evaluated on
individual and group performance, while managers are evaluated on their managerial
competence, often including such factors as relationship building, strategic thinking,
coaching and mentoring.
Conflict Management
Most U.S. professionals take pride in their ability to settle differences through discussion
and debate. Emotional displays to prove a point are not viewed constructively. Conflicts
that arise during or after a negotiation because of an breach of contract or non-compliance
offense carry the potential to escalate into a formal lawsuit.
United Kingdom
Characteristics of a good manager: British employees expect a fostering and caring style
of management which includes constant discussion, feedback and verbal recognition. The
British have great respect for strong and decisive leadership. Charisma and eloquence are
important characteristics in a manager, but low-key competence and technical knowledge
are more trusted traits over the long run. While authority is generally respected, employees
may test their managers to determine if the person in power deserves his/her high position.
Motivation
While group accomplishments are important in the British business culture, employees are
largely motivated by their own personal accomplishments and potential. Recently,
monetary awards, perks and prestige have become more important motivators for
employees.
Decision Taking
The British are deductive in their approach to decision making, typically using principle-
and theory-based reasoning to reach a decision. They believe that the right decision will be
reached as long as good, logical thinking is applied. As a result, decisions may take some
41
time. Once a decision is made, it carries wide-ranging authority and is likely to be

implemented speedily and efficiently by all parties involved.
Teams
British collectivistic and universalistic orientations are obvious in their preference for group
achievement over individual accomplishment. Cross-functional teams are an integral part of
British business practice, and in general financial targets and goals are determined by
specific departments in order to facilitate and encourage group achievement. Teams are
usually built around the need to achieve common goals, and each member will generally
bring a range of different skills to the team. The British prefer to make decisions by group
consensus and view open conflict as disturbing to group productivity.
Timelines
The British business environment rewards and reinforces a single-focus, fixed orientation
towards the efficient use of time. As a result, they have developed a precise commitment to
schedules and timelines. The British take time commitments seriously and, once agreed
upon, the parties expect to meet them. Managers often divide large-scale projects into
segments with one-year deadlines. These segments then contribute to the overall plan with
a timeline of about three years.
Most British companies have a performance appraisal system. The appraisal process begins
with an objective-setting exercise at the start of the year that determines specific,
measurable, achievable, realistic and time-oriented goals for the employees. Formal
feedback and evaluation sessions that are tied to performance reviews are common, but
many of the exchanges are verbal rather than written and are held in private. Managers
conduct individual performance reviews and will provide employees with formal
appraisals, addressing substandard performance issues formally and directly—basing their
appraisals on objective and joint target settings.
Conflict Management
Consistent with their preference for a combination of direct and indirect communication,
the British usually approach conflict and debate impersonally and analytically. They tend to
see conflict and debate as a threat to their stability, which is also accompanied by the risk of
42
losing face. Conflict and debate is undertaken only when sufficient data to support any
argument is available.
Australia
Characteristics of a good manager: Good managers are expected to demonstrate honesty,
directness and accuracy. They are able to delegate and dispatch facts and hold their position
by virtue of their alleged ability. Managers who are not considered worthy of their post are
likely to be undercut by subordinates. Employees do not easily tolerate assumed
superiority.
Motivation
As members of a largely individualistic culture, Australians generally work for their own
benefit. However, the bonds of friendship are strong and Australians are not willing to
sacrifice that bond for individual gain. So strong bonds of friendship can act as great
motivators for Australians.
Decision Making
Decision-making may occur individually at lower levels in the company, but typically
mediators are in consultation with top management. The decision-making process can
involve a number of people, most of who will subsequently be involved in implementation.
This might make the process longer, but it will lead to faster execution.
Teams
As members of a primarily individualistic culture, Australians prefer to work alone on
projects. If the members of a team are given good reasons why they should be working
together, and if the members can form a social bond of trust and mutual respect, then an
Australian team will be extremely effective.
Timelines
Australians have a fixed orientation toward time, and, as such, deadlines and schedules are
important. However, Australians are very concerned with their quality of life. While
deadlines are respected, valuable family or social time is seldom sacrificed in order to keep
a fixed schedule.
43
Performance appraisal is acceptable in the Australian workplace, so long as it applies to

everyone in the company, from top to bottom. Rules, procedures and guidelines are
considered indispensable as a means of ensuring fairness. Regular performance appraisals
are regarded as a method by which everybody is treated equally and held answerable for
their own work.
Conflict Management
Conflict is welcomed as a social activity, a kind of verbal infighting. In negotiations,
though, unnecessary conflict and debate are perceived as a waste of time and, therefore,
counterproductive. Typically, negotiations are friendly and informal as well as direct and to
the point.
CONFLICTS ARISING DUE TO DIFFERENT PREFERENCES

We have already looked at different preferences and how countries vary in their cultural
preferences. In this chapter we will look at the conflicts that can arise due to these
differences and how can one over come these conflicts.
As mentioned earlier, we as team members or leaders need to first understand our own
preferences, and then of our subordinates, peers, supervisors, colleagues etc and finally
learn to adapt ourselves to others when the need arises.
One important point is that we are not belittled if we adapt to others. There is nothing
wrong in changing yourself according to the situation, of course not always though.
Changing or adapting you to others preferences is called ‘Style-Switching’. Here you
switch your style to meet the other persons to encourage a healthier relationship be it
professional or personal. In a lot of situations we all ‘Style-Switch’ without even realizing
it. You might want to switch your style to the one preferred by your superior to strike a
better rapport. On the other hand while dealing with your subordinates, probably your team
members, its advised to switch to their individual styles when the need arises, for example,
while providing feedback. To understand the conflicts that can arise due to different
preferences, let us look at a case that I observed in my organisation.
Case Study
A subordinate of Manish Rawat (name changed) who is from Australia does not approach
her job responsibilities with the diligence, attention to detail, and self-motivated,
44
“empowered” manner that is expected of her. He has to let her know that this is causing
great problems for the entire department and that she needs to change her performance in
order to keep her job. He is an ‘Indirect’ and ‘Formal’ communicator who is ‘Harmony’
oriented. His subordinate is a ‘Direct’ and ‘Informal’ communicator who has a strong
‘Constraint’ orientation.
IMPACT
How would Manish Rawat approach the situation based on his cultural orientations?
Manish Rawat due to his indirect and formal orientation toward communication would
invariably provide feedback in a non direct manner. Probably the feedback would be given
in an enclosed cabin to reinforce the seriousness and formality of the situation. However, as
he is oriented toward harmony, he would be very polite and try to reach a consensus
between the two.
What would be the likely outcome?
The likely outcome would be that she will not understand the problem as he was indirect
and her preference is direct communication. Also as her preference is informal she would
find the meeting in the closed cabin a bit too “undermining” which might not be taken in
too well. As she is from Australia she might feel that there is some country bias and might
upset her. She might consider it unnecessary and result in direct confrontation. Else as she
is constraint oriented she might feel even more restricted which might hamper her
performance even further.
SOLUTIONS
How could Manish Rawat ‘Style-Switch’?
Manish Rawat could begin with being more direct in his approach. He could directly tell
her that her performance is not upto the mark and tell her exactly what she needs to work
on and how. Also instead of providing the feedback in an enclosed cabin he could probably
have this discussion in the cafeteria, however still making it clear to his subordinate that it
is a serious matter they are discussing. Also as she is constraint oriented, he could begin
with providing her extra or additional support to begin with, and then giving her small
simple job responsibilities to take care of which would enhance her skills further and make
her move her orientation toward harmony or control.
45
How would this change the outcome?

This would solve the problem to an extent. To begin with, she will clearly understand what
the problem in hand is. She would also realize the criticality of the situation without feeling
undermined. She would probably approach her job with the thoroughness that is expected
out of her. Also with her gradual switch from constraint to harmony and control she will
grown as an individual and learn to stand up for herself, hence perform better. Looking at
this simple work related day to day example we see how easily a conflict can arise due to
difference in cultural preferences. Our aim by this project is to educate people around us to
the sensitivity of cultural preferences.
As an international company, we have daily interactions with our clients / customers across
the world. These interactions bring us business. These very same interactions can take away
the business as well. Company has recently about a year and a half ago started with Culture
Training. This training incorporates all the cultural preferences that we have spoken of in
this project. Through the spread of this knowledge and leadership encouragement, cultural
differences are now being understood better. Understanding these differences is the first
step. Style Switching or adapting yourself to the need of the hour is the next step which
takes longer to master. Once mastered, the results are evident and much appreciated.
46
CHAPTER – 5
METHODOLOGY & PROCEDURE OF
WORK
47
METHODOLOGY AND PROCEDURE OF WORK

Research
Questionnaires were distributed to employees who interact with foreign clients and
customers almost on a daily basis in New Delhi.
Sample size: A random sample of 100 employees was chosen
Sample unit: This sample included employees from lower, middle and upper
management.
The respondents were made aware of the purpose of the questionnaire and the project by a
personal discussion with each of them. They were also assured the privacy and usage of the
information.
Questionnaire design
The questionnaire has 15 questions in total. The first 10 are objective in nature and the
remaining 5 are open-ended questions to allow the respondents to pour in as much
information as possible.
Nature of data & method of presentation

The data that collected is qualitative in nature however to understand the learning from the
questionnaire I have also presented the observations in the form of pie diagrams, bar charts
and tables. The observation was very interesting. I looked at each question individually and
analyzed the responses received by the sample of 100 employees.
Secondary data will also be collected through books, magazines & Journals
48
CHAPTER – 6
ANALYSIS OF DATA
49
ANALYSIS OF DATA
Question 1: How would you score yourself in controlling a conflict situation
with a customer?
Very High------------------------------------------------- 23%
High-------------------------------------------------------- 33%
Medium---------------------------------------------------- 20%
Low-------------------------------------------------------- 17%
Very Low-------------------------------------------------- 07%
Figure No. 6.1

INTERPRETATION:
 33% of the population rated themselves High in being able to handle conflict situations
at work. Major chunk of the population is within the Very High to Medium bracket.
This shows the slow and gradual switch of Indians towards Control orientation.
Question 2 - How would you score yourself in preference of performing one task than
many at a time?
50
Very High------------------------------------------------- 07%

High-------------------------------------------------------- 23%
Medium---------------------------------------------------- 40%
Low-------------------------------------------------------- 20%
Very Low-------------------------------------------------- 10%
Figure No. 6.2

INTERPRETATION:
 40% of the population selected Medium as their option. India as a whole prefers Multi-
Focus. However, US, UK and Australia as we know prefer Single-Focus. Hence with
increased interactions there is a change that is visible here as well. However still 30% of
the population that chose low and very low prefer multi-tasking and being multi-
focused at work.
Question 3 – What emphasis do you lay on theories over practices?

Very High-------------------------------- 23%
High--------------------------------------- 43%
51
Medium---------------------------------- 20%
Low--------------------------------------- 10%
Very Low-------------------------------- 3%
Figure No. 6.3

INTERPRETATION:
 66% of the population has chosen Very High and High as their option. This confirms
our study that Indians are oriented toward Deductive Thinking.
52
Question 4 - Do you consider the impact of your decisions on people when

at work?
Very High-------------------------------- 30%
High--------------------------------------- 40%
Medium---------------------------------- 20%
Low--------------------------------------- 10%
Very Low-------------------------------- 0%
Figure No. 6.4

INTERPRETATION:
 As already stated in this study Indians are Being, Cooperative and Collectivistic
oriented. This is reflected in the response as 70% of the population chose Very High
and High as the option. This confirms that Indians do think about the impact of their
decisions on people at work.
53
Question 5 – Is individual work more important than team work?

Very High-------------------------------- 07%
High--------------------------------------- 17%
Medium---------------------------------- 13%
Low--------------------------------------- 47%
Very Low-------------------------------- 17%
Figure No. 6.5

INTERPRETATION:
 47% of the population has chosen low as their option. This means that for them team
work is surely more important than individual work. This question along with the
previous one reiterates the learning from the project that is they prefer Collectivistic
orientation.
54
Question 6 - How competitive are you when it comes to work?

Very High-------------------------------- 17%
High--------------------------------------- 23%
Medium---------------------------------- 47%
Low--------------------------------------- 13%
Very Low-------------------------------- 0%
Figure No. 6.6

INTERPRETATION:
 Indians have a mix of Competitive and Cooperative orientation. This study also
confirms the same. 47% of the population has chosen ‘medium’ as their option making
it clear that neither are they overtly competitive nor do they take their job casually.
55
Question 7 - How important is the hierarchical structure for you?
Very High-------------------------------- 17%

High--------------------------------------- 50%
Medium---------------------------------- 23%
Low--------------------------------------- 10%
Very Low-------------------------------- 0%
Figure No. 6.7

INTERPRETATION:
 As India was ruled for a long time and also due to the caste system, hierarchy is set in
our culture. This study confirms the same. 67% of the population selected Very High
and High. Even well educated, working professionals still feel the need for hierarchy.
56
Question 8 - Is it important to you to adhere to schedules and timings?

Very High-------------------------------- 03%
High--------------------------------------- 47%
Medium---------------------------------- 43%
Low--------------------------------------- 07%
Very Low-------------------------------- 0%
Figure No. 6.8

INTERPRETATION:
 Indians are known to be Fluid Oriented. However with the vast exposure to the other
countries, we are now learning to be more fixed oriented. This can be seen in the
responses. 90% of the population chose High and medium to depict the importance
time has for them at work.
57
Question 9 - How would you rate the importance of ‘Present’ over ‘Past’
or ‘Future’?
Very High-------------------------------- 20%
High--------------------------------------- 20%
Medium---------------------------------- 53%
Low--------------------------------------- 07%
Very Low-------------------------------- %
Figure No. 6.9

INTERPRETATION:
 Earlier Indians had a stark preference for Past and Future however now with the
influence of Western Culture; the preference seems to be shifting toward Present. 40%
of the population chose Very High and High to show their keen preference to ‘Present’
than to ‘Past’ or ‘Future’.
58
Question 10 - How often do you directly refuse customers?

Very High-------------------------------- 07%
High--------------------------------------- 10%
Medium---------------------------------- 13%
Low--------------------------------------- 43%
Very Low-------------------------------- 27%
Figure No. 6.10

INTERPRETATION:
 Indians prefer indirect communication. Due to this it becomes tough for them to directly
refuse a customer. 43% of the population said that there are low chances of them
refusing the customer directly.
59
The last 5 questions of the questionnaire are open-ended hence cannot be quantified.
However I have written my observation from the responses.
Question 11 - What differences did you find when interacting with your foreign
clients/customers visa via internal ones?
There have been quite a few interesting responses. Respondents have found differences as
minute as, the use of Sir for British is considered incorrect, unless that’s the title of the
person being dealt with. A respondent went through a major escalation from the customer
as she had called the customer Sir with all due respect. However it wasn’t taken the way it
was intended.
Question 12 - How did you try to overcome these differences and conflicts?
Some respondents wrote they learnt from their mistakes. While others had the opportunity
of attending special training to understand the culture of these countries hence were better
equipped to deal with such situations.
Question 13 - Do you expect your customers to know about your work culture
or is it more important for you to know theirs?
Almost all mentioned that though they would like the customers to know our Indian culture
however that isn’t the case. On the other hand we are expected to know theirs as they are
our customers. However, one person did mention that now with the BPO industry, people
globally are getting to know and understand the Indian work culture better.
Question 14 - Do you see the need for an OJT essentials training program for
employees going abroad on an assignment?
Most of the 30 respondents mentioned that it should be a mandate to attend Training before
leaving on an OJT. However, we did have a few who felt no need to attend training before
hand and believe that true learning is when on the job.
Question 15 - Do you see the need to be sensitive to a customer’s cultural background?

Give reasons.
Most of them felt that, yes, it is extremely important to be sensitive towards a customer’s
cultural background as it would help build relationship. However at the same time they
expect the same from their side.
60
CHAPTER – 7
FINDINGS, INFERENCES AND
RECOMMENDATIONS
61
FINDINGS, INFERENCES AND RECOMMENDATIONS
Recommendations: Resolution of these conflicts is a 3 step process.
Analyze your own preferences
Understand the preferences of the people around you
Style – Switch
Mastering these steps is not as easy as it seems, especially Style – Switching, as one needs
to make a conscious effort to do the same. It requires a lot of patience and most importantly
the desire to do so.
This 3-step process can be learnt and imbibed in our life by attending some Culture
Awareness Trainings. I have been made to understand and appreciate others and have
learnt to be more sensitive and welcoming toward our clients and customers. This has led to
building of fruitful and long lasting relationship with them.
I also looked at the findings from the questionnaire sent to employees. The observations
and findings confirm the preferences reflected for Indians in this project. However, a very
interesting observation that emerges is that there is a slow and gradual switch more towards
the UK and US culture. Of late, there has been a growing influence of the ‘Western
Culture’ in India. This can easily be seen with the observations and findings of the
questionnaire. Also, with the influx of the BPO industry and the doors opening even more
for trade in India, there has been more global exposure. This exposure is visible in India
especially within the young professionals.
These adaptations and changes are not only from India. Even countries like UK and USA
have become more aware of our culture and are taking keen interest in adopting it. This is
surely helping countries to understand each other better and improving trade and commerce
between countries, thereby building stronger relationships.
 Indians prefer indirect communication. Due to this it becomes tough for them to directly
refuse a customer. 43% of the population said that there are low chances of them
refusing the customer directly.
62
 The last 5 questions of the questionnaire are open-ended hence cannot be quantified.
However I have written my observation from the responses.
 There have been quite a few interesting responses. Respondents have found differences
as minute as, the use of Sir for British is considered incorrect, unless that’s the title of
the person being dealt with. A respondent went through a major escalation from the
customer as she had called the customer Sir with all due respect. However it wasn’t
taken the way it was intended.
 Some respondents wrote they learnt from their mistakes. While others had the
opportunity of attending special training to understand the culture of these countries
hence were better equipped to deal with such situations.
 Almost all mentioned that though they would like the customers to know our Indian
culture however that isn’t the case. On the other hand we are expected to know theirs as
they are our customers. However, one person did mention that now with the BPO
industry, people globally are getting to know and understand the Indian work culture
better.
 Most of the 30 respondents mentioned that it should be a mandate to attend Training

before leaving on an OJT. However, we did have a few who felt no need to attend
training before hand and believe that true learning is when on the job.
 Most of them felt that, yes, it is extremely important to be sensitive towards a

customer’s cultural background as it would help build relationship. However at the
same time they expect the same from their side.
63
CHAPTER – 8
CONCLUSION
64
CONCLUSIONS
In this entire project the author has looked at cultural differences from a different
perspective. We have viewed the differences that exist in cultural preferences. These
differences have been broadly classified into ten categories and then further classified
making the understanding extensive.
After appreciating the cultural diversity; I then looked at the Country Specific preferences
to understand the differences and the conflict that could arise due to these cultural
differences. However, in the later chapters I did find a solution to over come these conflicts.
The observations and findings confirm the preferences reflected for Indians in this project.
However, a very interesting observation that emerges is that there is a slow and gradual
switch more towards the UK and US culture. Of late, there has been a growing influence of
the ‘Western Culture’ in India. This can easily be seen with the observations and findings
of the questionnaire. Also, with the influx of the BPO industry and the doors opening even
more for trade in India, there has been more global exposure. This exposure is visible in
India especially within the young professionals.
Even countries like UK and USA have become more aware of our culture and are taking
keen interest in adopting it. This is surely helping countries to understand each other better
and improving trade and commerce between countries, thereby building stronger
relationships. These adaptations and changes are not only from India.
This dependence on others for various needs is how civilizations have become civilized to
accept.
 The citizen sees himself becoming a global citizen with its becoming imperative to be
sensitive to cultural differences across various walks of life. The two largest
democracies in the world are the US and India. They are the perfect example of cultural
diversity.
 Society has seen a tremendous transition in the last two centuries. From racial
segregation to racial equality, society has really evolved. With emphasis moving
towards the improvement of the quality of life, we have witnessed isolated cultures
65
opening their doors to trade and business and becoming more acceptable to cultural
integration.
 The common bonds that get firmly established become the organization’s culture and
any deviation from the boundaries of this culture is difficult indeed. In fact senior
members of the organization do not welcome such changes and resist these to the
maximum extent possible.
 Culture for culture’s sake will work no more. Any culture that is tuned to satisfy and
cater to the needs of the markets and the customers will alone work - this has become
an urgent necessity.
 Everyone would agree that cultural diversity at the workplace utilizes the country's
skills to its fullest, and contributes to our overall growth and prosperity. It hasn't been
exploited yet hence the progress remains slow. While we are in the midst of the longest
period of economic growth the world has been witness to the ever seen gap between the
"rich" and "the poor" continues to widen.
 One of the reasons for this has been the lack of diversity in the Corporate World.
employees, lowering costs by developing skills in-house, and developing a reputation
that helps attract new employees. This is especially important with the economy doing
so well, and the demand for skilled labor at record levels.
66
CHAPTER – 9
SUMMARY OF THE PROJECT
REPORT
67
SUMMARY OF THE PROJECT REPORT
This is surely helping countries to understand each other better and improving trade and
commerce between countries, thereby building stronger relationships. These adaptations
and changes are not only from India.
accept.
 The citizen sees himself becoming a global citizen with its becoming imperative to be
sensitive to cultural differences across various walks of life. The two largest
diversity.
 Culture for culture’s sake will work no more. Any culture that is tuned to satisfy and
cater to the needs of the markets and the customers will alone work - this has become
an urgent necessity.
 One of the reasons for this has been the lack of diversity in the Corporate World.
employees, lowering costs by developing skills in-house, and developing a reputation
that helps attract new employees. This is especially important with the economy doing
so well, and the demand for skilled labor at record levels.
INTRODUCTION
accept. The citizen sees himself becoming a global citizen with its becoming imperative to
be sensitive to cultural differences across various walks of life. The two largest
diversity. Society has seen a tremendous transition in the last two centuries. From racial
68
segregation to racial equality, society has really evolved. With emphasis moving towards
the improvement of the quality of life, we have witnessed isolated cultures opening their
doors to trade and business and becoming more acceptable to cultural integration.
The reactive organization cultures are slightly better than passive cultures. Here,
organization reacts to every knock - be that from internal or external environments. Crisis
management is the order of the day. No attempts are made to avoid conflicts - instead
attempts to diffuse them after they have arisen, are seriously made. The here and now
attitude to any aspect of organizational functioning has in built weakness: long term, system
based solutions are just not available. Managers pride themselves in being "practical"
people. But they would not realize that being practical for the most part, is confined to
managing routines.
1. The sample size is 100 and it is too small to generalize the opinion and to boil down to
a conclusion.
2. As the cultures of the countries under study are going through a revolutionary change,
3. These orientations are specific to the overall preferences of the Countries and not target
4. Stiff competition did not allow the management to disclose the entire training material
Theoretical Overview: Here is a general survey of cross-cultural diversity across a few
major corporations of the world. The project will look at a few international companies in
this section to understand the value of cultural diversity at their workplace.
69
70
CHAPTER – 10
Annexure
71
ANNEXURE-I
Questionnaire
Question 1: How would you score yourself in controlling a conflict situation
with a customer?
Very High-------------------------------------------------
High--------------------------------------------------------
Medium----------------------------------------------------
Low--------------------------------------------------------
Very Low--------------------------------------------------
Question 2 - How would you score yourself in preference of performing one task than
many at a time?
Very High-------------------------------------------------
High--------------------------------------------------------
Medium----------------------------------------------------
Low--------------------------------------------------------
Very Low--------------------------------------------------
Question 3 - How often do you lay emphasis on theories over practices?

Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 4 - Do you consider the impact of your decisions on people when

at work?
Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
72
Question 5 – Is individual work more important than team work?

Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 6 - How competitive are you when it comes to work?

Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 7 - How important is the hierarchical structure for you?

Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 8 - Is it important to you to adhere to schedules and timings?
Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 9 - How would you rate the importance of ‘Present’ over ‘Past’
or ‘Future’?
Very High--------------------------------
High---------------------------------------
Medium----------------------------------
73
Low---------------------------------------
Very Low--------------------------------
Question 10 - How often do you directly refuse customers?
Very High--------------------------------
High---------------------------------------
Medium----------------------------------
Low---------------------------------------
Very Low--------------------------------
Question 11 - What differences did you find when interacting with your foreign
clients/customers visa via internal ones?
Question 12 - How did you try to overcome these differences and conflicts?
Question 13 - Do you expect your customers to know about your work culture or is
it more important for you to know theirs?
Question 14 - Do you see the need for an OJT essentials training program for employees
going abroad on an assignment?
Question 15 - Do you see the need to be sensitive to a customer’s cultural background?
Give reasons.
74
ANNEXURE - II
PROJECT PROPOSAL
Student Details:
Name of the Learner : SWATI BHATIA
Registration No. : 201316496
Program Name : PGD-HRM
TITLE OF THE PROJECT:

“AN ANALYTICAL STUDY ON CROSS CULTURAL ISSUES IN HUMAN
RESOURCE MANAGEMENT”
INTRODUCTION : With the evolution of mankind over time and the globe becoming
smaller, there is unstoppable blend of various cultures because no one on the earth can
survive in complete isolation. This dependence on others for various needs is how
civilizations have become civilized to accept.
The citizen sees himself becoming a global citizen with its becoming imperative to be
sensitive to cultural differences across various walks of life. The two largest democracies in
the world are the US and India. They are the perfect example of cultural diversity.
Society has seen a tremendous transition in the last two centuries. From racial segregation
to racial equality, society has really evolved. With emphasis moving towards the
improvement of the quality of life, we have witnessed isolated cultures opening their doors
to trade and business and becoming more acceptable to cultural integration.
OBJECTIVES AND SCOPE:
The following are the research objectives of my study
Research objectives
To understand what is Cross-Cultural Diversity
To find out cross cultural differences and thus the problems felt by the employees while
interacting with foreign Clients/Customers
75
To suggest efficient and practical ways to overcome the problems faced by the
employees to handle these cross-cultural differences.
AIM OF THE STUDY: Everyone would agree that cultural diversity at the workplace
utilizes the country's skills to its fullest, and contributes to our overall growth and
prosperity. It hasn't been exploited yet hence the progress remains slow. While we are in
the midst of the longest period of economic growth the world has been witness to the ever
seen gap between the "rich" and "the poor" continues to widen.
One of the reasons for this has been the lack of diversity in the Corporate World.
employees, lowering costs by developing skills in-house, and developing a reputation that
helps attract new employees. This is especially important with the economy doing so well,
and the demand for skilled labor at record levels.
The Aim of the Study is to:

Understand the concept of Cultural Diversity and infuse sensitivity.
Find out if the employees feel the cultural differences while interacting with foreign
clients / customers.
Understand the various kinds of difficulties faced by them.
Find out how they have handled these differences.
Conclude with our observations and findings ways to overcome the problems faced due
to these cultural differences.
This project gives valuable insights on diversity. It then proposes and elaborates eventual
logic in promoting cultural diversity within corporations and strategic planning for diversity
being a driver.
LIMITATIONS OF THE STUDY
 The sample size is 100 and it is too small to generalize the opinion and to boil down to
a conclusion.
76
 As the cultures of the countries under study are going through a revolutionary change,
 These orientations are specific to the overall preferences of the Countries and not target
 Stiff competition did not allow the management to disclose the entire training material
Here is a general survey of cross-cultural diversity across a few major corporations of the
world. The project will look at a few international companies in this section to understand
the value of cultural diversity at their workplace.
Enabling employees to work together across those lines of difference not only
fundamentally enables IBM to operate as a truly global enterprise but to operate with
efficiency and innovation. “Our job is to fundamentally enhance the ability of the people in
this organization to understand those differences, to work with and across them
respectfully, and to actually use them to the greatest extent possible to leverage innovation
and effectiveness in terms of the work we do and our ability to respond to our clients,”
Glover says. While the cornerstone of IBM’s diversity work centers around eliminating
traditional barriers that may exist due to race, gender, sexual orientation, disability status,
or language – IBM has also had to address issues of culture that extend beyond the typical
attributes associated with differing backgrounds. “We’re seeing that culture now extends to
areas of difference across other dimensions such as technical orientation, management style
77
and other domains, which affect how we run the business and interact with others,” Glover
acknowledges.
CONFLICTS ARISING DUE TO DIFFERENT PREFERENCES

We have already looked at different preferences and how countries vary in their cultural
preferences. In this chapter we will look at the conflicts that can arise due to these
differences and how can one over come these conflicts.
As mentioned earlier, we as team members or leaders need to first understand our own
preferences, and then of our subordinates, peers, supervisors, colleagues etc and finally
learn to adapt ourselves to others when the need arises.
Case Study
A subordinate of Manish Rawat (name changed) who is from Australia does not approach
her job responsibilities with the diligence, attention to detail, and self-motivated,
“empowered” manner that is expected of her. He has to let her know that this is causing
great problems for the entire department and that she needs to change her performance in
order to keep her job. He is an ‘Indirect’ and ‘Formal’ communicator who is ‘Harmony’
oriented. His subordinate is a ‘Direct’ and ‘Informal’ communicator who has a strong
‘Constraint’ orientation.
METHODOLOGY AND PROCEDURE OF WORK

Research
Questionnaires were distributed to employees who interact with foreign clients and
customers almost on a daily basis in New Delhi.
Sample size: A random sample of 100 employees was chosen
Sample unit: This sample included employees from lower, middle and upper
management.
The respondents were made aware of the purpose of the questionnaire and the project by a
personal discussion with each of them. They were also assured the privacy and usage of the
information.
78
Questionnaire design
The questionnaire has 15 questions in total. The first 10 are objective in nature and the
remaining 5 are open-ended questions to allow the respondents to pour in as much
information as possible.
Nature of data & method of presentation

The data that collected is qualitative in nature however to understand the learning from the
questionnaire I have also presented the observations in the form of pie diagrams, bar charts
and tables. The observation was very interesting. I looked at each question individually and
analyzed the responses received by the sample of 100 employees.
Secondary data will also be collected through books, magazines & Journals
ANALYSIS OF DATA
 40% of the population selected Medium as their option. India as a whole prefers Multi-
Focus. However, US, UK and Australia as we know prefer Single-Focus. Hence with
increased interactions there is a change that is visible here as well. However still 30% of
the population that chose low and very low prefer multi-tasking and being multi-
focused at work.
 As already stated in this study Indians are Being, Cooperative and Collectivistic
oriented. This is reflected in the response as 70% of the population chose Very High
and High as the option. This confirms that Indians do think about the impact of their
decisions on people at work.
There have been quite a few interesting responses. Respondents have found differences as
minute as, the use of Sir for British is considered incorrect, unless that’s the title of the
person being dealt with. A respondent went through a major escalation from the customer
as she had called the customer Sir with all due respect. However it wasn’t taken the way it
was intended.
FINDINGS, INFERENCES AND RECOMMENDATIONS

Mastering these steps is not as easy as it seems, especially Style – Switching, as one needs
to make a conscious effort to do the same. It requires a lot of patience and most importantly
the desire to do so.
79
This 3-step process can be learnt and imbibed in our life by attending some Culture
Awareness Trainings. I have been made to understand and appreciate others and have
learnt to be more sensitive and welcoming toward our clients and customers. This has led to
building of fruitful and long lasting relationship with them.
I also looked at the findings from the questionnaire sent to employees. The observations
and findings confirm the preferences reflected for Indians in this project. However, a very
interesting observation that emerges is that there is a slow and gradual switch more towards
the UK and US culture. Of late, there has been a growing influence of the ‘Western
Culture’ in India. This can easily be seen with the observations and findings of the
questionnaire. Also, with the influx of the BPO industry and the doors opening even more
for trade in India, there has been more global exposure. This exposure is visible in India
especially within the young professionals.
CONCLUSIONS: In this entire project the author has looked at cultural differences
from a different perspective. We have viewed the differences that exist in cultural
preferences. These differences have been broadly classified into ten categories and then
further classified making the understanding extensive.
After appreciating the cultural diversity; I then looked at the Country Specific preferences
to understand the differences and the conflict that could arise due to these cultural
differences. However, in the later chapters I did find a solution to over come these conflicts.
80
SUMMARY OF THE PROJECT REPORT

This is surely helping countries to understand each other better and improving trade and
commerce between countries, thereby building stronger relationships. These adaptations
and changes are not only from India
Chapterization
1. Introduction
2. Objectives and Scope
3. Limitations
4. Theoretical Perspective
5. Methodology and Procedure of work
6. Analysis of Data
7. Findings, Inferences and Recommendations
8. Conclusion
9. Summary of the Project Report
81
Annexure
I) Proposal
II) References
III) List of Figures, Charts, Diagrams
IV) List of Tables
Detailed information of Guide:

Name : MR. SANJEEV K. BENERJEE
Qualification : M.Phil, HRM
Designation : HR-MANAGER
Special Field or Work : Human Resource Management
Experience : 6 Years
Any Other Important Information : Not Applicable
Company Name : IBM Daksh
Address of Corporate Office : Gurgaon

Haryana
Tel: …………..
Fax: ……………
E-mail:…………..
Web: ...........
82
ANNEXURE - III
BIBLIOGRAPHY
1. Prasadam, DK, 2012, International Human Resource Management, 2e, pp-100-102

2. Sharwaila, SR, 2002, International HR, PHI, pp-200-202
3. John B Cullen, Multinational Management, p.67-68
4. John B Cullen, Multinational Management, p.534
5. Arvind V, Pathak et al., International Management, TMH, 2014, p-457-459
The Cultural Navigator –Training Academy
http://www.leader-values.com
Sources: IBM and Price Water House Coopers
http://www.hr-guide.com/
http://www.google.com/
83
ANNEXURE - IV
LIST OF FIGURES, CHARTS, DIAGRAMS
Chapters Page Nos.

Figure No. 6.1
Figure No. 6.2
Figure No. 6.3
Figure No. 6.4
Figure No. 6.5
Figure No. 6.6
Figure No. 6.7
Figure No. 6.8
Figure No. 6.9
Figure No. 6.10
84
ANNEXURE - V
LIST OF TABLES
Chapters Title Name Page Nos.

4.1: The major countries that we would look at are as follows:
85

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A PROJECT REPORT

Chapters Page Nos.

10. Annexure 70-84

Passive Organization Culture

Reactive Organization Culture

Proactive Organization Culture

OBJECTIVES AND SCOPE

Price Water House Coopers

Cross-Cultural Preferences & implications

Classification of different cultural preferences:

Time is further bifurcated into four preferences:

Hierarchy / Equality –Hierarchy means demarcations, levels applied to people. Some

Individualistic / Collectivistic – A person with a preference for Collectivistic would

Competitive / Cooperative – A person with a strong preference for Competitive would

Order / Flexibility – People who demonstrate an order orientation believe that an

Deductive / Inductive - The deductive element involves a commitment to theoretical

Linear / Systemic – Systemic thinking is creating a holistic image of a complex project or

Country Specific Preferences

Disclaimer: The information reflected in the cultural profile of a country is general in

CLASSIFICATION INDIA USA UK AUSTRALIA

Present Future Future

Time: Multi-focus / Fluid / Past / Present / Future

Action: Being / Doing

Communication: High Context / Indirect / Expressive / Formal

Space: Private / Public

Individualism: Collectivistic / Universalistic / Particularistic

Competitiveness: Competitive / Cooperative

Structure: Order / Flexibility

Thinking: Deductive / Systemic

Environment: Control / Harmony / Constraint

Control / Harmony / Constraint

United States of America

Time: Single Focus / Fixed / Present

Communication: Low Context / Direct / Instrumental / Informal

Individualism: Individualistic / Universalistic

Thinking: Inductive / Linear

Time: Single Focus / Fixed / Past / Future

Action: Being / Doing

Communication: Low Context/ Indirect/ Instrumental/ Formal/ Informal

Power: Hierarchy / Equality

Individualism: Individualistic / Collectivistic / Particularistic

assessments are applied with a particularistic orientation to individualism. Some might

Competitiveness: Competitive / Cooperative

Thinking: Inductive / Linear

Environment: Control / Constraint

Time: Single Focus / Fixed / Present / Future

Action: Being / Doing

Communication: Low Context / Direct / Instrumental / Informal

Australians tend to understate any personal or emotional messages. Praise is given

Individualism: Individualistic / Collectivistic / Universalistic

Competitiveness: Competitive / Cooperative

Thinking: Inductive / Linear

Environment: Control / Harmony / Constraint

Control / Harmony / Constraint

Despite geographic constraints, Australians have, in a relatively short time, managed to

DIVERSITY WITHIN TEAMS

Let us now compare countries on the following concepts of managing people:

time. Once a decision is made, it carries wide-ranging authority and is likely to be

Performance appraisal is acceptable in the Australian workplace, so long as it applies to

CONFLICTS ARISING DUE TO DIFFERENT PREFERENCES

What would be the likely outcome?

How would this change the outcome?

METHODOLOGY AND PROCEDURE OF WORK