1. Understanding Culture: Cross Culture
Skills and Conflicts -Managing across
Culture- Globalisation and HR Issues and
Concerns- Cross Cultural Theories –
Cultural Shocks-Dealing with cultural 1
Understan
ding

2. 2
Understan
ding
Culture

3. The culture played a major role
in GHRM as it involves
understanding and handling a
new culture and a new social
system. what aspects should
an international HR manager
should focus on and how he
should respond to cultural
differences in an international 3
Introduction. . .

4. • A culture is a way of life of a group of
people--the behaviors, beliefs, values, and
symbols that they accept, generally
without thinking about them, and that are
passed along by communication and
imitation from one generation to the next.
4

5. Culture is understood as the customs, beliefs,
norms and values that guide the behaviours
of the people in a society and that are
passed on from one generation to the next.
• “The prevailing pattern of values, attitudes,
beliefs, assumptions, norms and
sentiments”
(Beardwell & Claydon)
• “the collective programming of the mind
which distinguishes the members of one
group from another” (Hall)
• “the collective programming of the mind
which distinguishes the members of one
group from another” (Hofstede, 1980 )
5

6. Since 1980’s Managing Across culture
has emerged as a significant field for
academic research and study.
It’s emergence is the result of a number of
Triggers and Drivers.
Triggers are those factors and events that
raised the alarm about importance of
understanding cultural differences when
operating in different countries.
Drivers are those factors that resulted from or
contributed to the triggers as shown here… 6
Managing Across Culture

7. 7
Triggers
•Expatriates failure to complete assignments abroad
• Recession in the 1980s
• Economic development of Japan and South-east Asia
• Economic development of China and India
• “ Westernization ” of Central and Eastern Europe
Drivers
•Multinational Companies
• International Competition
• Regional economic integration
• Technical changes and flow of information
• Trade and financial services
• Political and cultural influences
• Western management education
• Reforms in developing countries

8. According to the Alder ( 2002 ) managing
across culture explains the behaviour of
people in organizations with employees and
client populations from many different
cultures and it also describe and compare
organizational behaviour within countries
and cultures and to seek to understand and
improve the interactions of co-workers,
managers, executives, clients, suppliers,
alliance partners from countries and culture
around the world.
It should be pointed out that the word 8

9. 9
Theoretically, having to go in between and within countries
and cultures and hence being able to observe, describe and analyze
their similarities and differences.
In practice, however, the process of managing across culture is
broader than comparative management because it implies…
(a)Broader understanding of the determining characteristics
of national management systems.
(b) The ability to distinguish between
different systems and learn from
models of good practices.
This view of managing across culture
is supported by number of recent
studies

10. 10

11. Cross Culture Skills
11

12. Conflicts
12
• Cultural conflict is a type of conflict that occurs when
different cultural values and beliefs clash.
• Jonathan H. Turner defines it as a conflict caused by "differences
in cultural values and beliefs that place people at odds with one
another".
• On a micro level, Alexander Grewe discusses a cultural conflict
between guests of different culture and nationality as seen in a
British 1970 sitcom,
• Fawlty Towers He defines this conflict as one that occurs when
people's expectations of a certain behavior coming from their
cultural backgrounds are not met, as others have different cultural
backgrounds and different expectations.

13. Cultural conflicts are difficult to
resolve as parties to the conflict
have different beliefs. Cultural
conflicts intensify when those
differences become reflected
in politics, particularly on a macro
level.
13

14. Dysfunctional
Role
Characteristics
Aggressor • Behaves aggressively toward other people, often by criticizing,
condemning or blaming
• Acts as an instigator of conflict and hostility
• Makes others feel ashamed, incompetent, guilty or inferior
Blocker • Impedes or delays the progress of others
• Limits the achievement/success of others
• Distracts others from the task at hand
Rebel •Violates group norms and guidelines
• Strong unwillingness to cooperate with others
• Rejects accepted conventions of behavior
Self-Seeker • Demands full attention from others at all times
• Prioritizes personal goals ahead of the goals of other people
and/or the whole group
• Places self-interests above moral principles and professional
responsibilities
14

15. Dominator • Forcefully controls others, often through fear,
bullying/aggression or abuse of power
• Dominates conversations by interrupting when other
people are speaking
• Coerces others to follow orders/directions
Social
Loafer
• Lack of commitment, loyalty and dedication
• Fails to contribute meaningfully to group
• Irresponsible, unreliable and untrustworthy
15
To deal with this kind of
cross cultural conflicts, there
are few strategies which

16. Effective Management
Strategies
16
Identify and Prepare for Potential Conflicts
Before they Arise
Establish a Climate of Trust, Tolerance
and Mutual Respect
Promote Effective Communication and
Listening Skills
Brainstorm for Group Consensus
Act as a Third Party Mediator

18. Strategies to tackle with
Cross Cultural Conflicts
• Cultural Awareness
• Extensive interaction
• Acceptance
• Mutual respect
• Enhance cross cultural
communication
• Create a common corporate culture

19. Cross cultural HR issues
19

20. Cross Cultural HR
issues

21. • Impact of top tier management
– Multinational –
USA/India/UAE/Japanese/Korean/European
– Core Values, key policies, management style
– System, Processes & Work Practices
– Joint Venture or chained
– Code of Conduct
• Formal
• Informal

22. • HR Policies
– Working Days, Working Hours, Leaves & Holidays
– Conglomerate design & structure
– Manpower cost/planning/hiring/induction
– Benefits management & compensation
– Performance & Potential Management
– Expatriation in & out
– PF & miscellaneous fund raising

23. • Employee population mix
– Within India business situation
– Outside India business situation
– Social & cultural habits
– Foods & Etiquettes
– Management & leadership style
– Adaptation to alien-context – culture - working

24. • Work Culture
– Tendency of parent company in case of MNCs to
have same work culture in an overseas company
– Disconnect between umbrella company culture &
local context. Eg: Indian Subsidiary
– Misunderstanding due to lack of sensitization of local
& social structure & cultural context
– Impact of blue collar workers – unions
– Morale, motivation, ownership &
commitment of the work force

25. • Compensation & Benefits
– Relatively low annual salary compared to Home country
Context
– High focus on variable Pay & bonuses and cash element
rather than fixed salary & long term benefits
– Clear link of individual performance to variable pay &
annual salary review
– Strong link of financial performance of the company to
define variable pay & salary decision

27. Cross Cultural Theories

28. • Professor Geert Hofstede conducted
one of the most comprehensive
studies of how values in the workplace
are influenced by culture.
He defines culture as “the collective
programming of the mind
distinguishing the members of one
group or category of people from
others”. The six dimensions of
national culture are based on
extensive research done by Professor
Geert Hofstede, Gert Jan Hofstede,
Michael Minkov and their research
teams.

29. • Professor Geert Hofstede conducted
one of the most comprehensive
studies of how values in the
workplace are influenced by culture.
He analysed a large database of
employee value scores collected
within IBM between 1967 and 1973.
The data covered more than 70
countries, from which Hofstede first
used the 40 countries with the largest
groups of respondents and

30. • The model of national culture consists of six dimensions.
The cultural dimensions represent independent preferences
for one state of affairs over another that distinguish
countries (rather than individuals) from each other. The
country scores on the dimensions are relative, as we are all
human and simultaneously we are all unique. In other
words, culture can be only used meaningfully by
comparison. The model consists of the following
dimensions

31. This dimension expresses the degree to which the
less powerful members of a society accept and
expect that power is distributed unequally. The
fundamental issue here is how a society handles
inequalities among people.
Power Distance

34. Individualism Vs collectivism
The high side of this dimension, called
individualism, can be defined as a preference
for a loosely-knit social framework in which
individuals are expected to take care of only
themselves and their immediate families. Its
opposite, collectivism, represents a
preference for a tightly-knit framework in
society in which individuals can expect their
relatives or members of a particular in-group
to look after them in exchange for
unquestioning loyalty. A society's position on
this dimension is reflected in whether

35. Individualism Collectivism
Independent
control
Relations with
group
Goals for one self Sense of
belongingness
Competitions with
others
Harmony with
others
Uniqueness is
valued
Advise sought
from others
Direct
communication
Hierarchy
important
Prefers to work
alone
Prefer to work in
groups

36. Individualistic countries Collective countries
U.S Guatemala
Australia Ecuador
Great britain Venezula
Netherlands Indonesia, South korea,
Taiwan

37. Masculinity Vs Femininity
• The Masculinity side of this dimension
represents a preference in society for
achievement, heroism, assertiveness and
material rewards for success. Society at
large is more competitive. Its opposite,
femininity, stands for a preference for
cooperation, modesty, caring for the weak
and quality of life. Society at large is more
consensus-oriented. In the business
context Masculinity versus Femininity is

39. Uncertainty avoidance Index
• The Uncertainty Avoidance dimension
expresses the degree to which the members
of a society feel uncomfortable with
uncertainty and ambiguity. The fundamental
issue here is how a society deals with the fact
that the future can never be known: should
we try to control the future or just let it
happen?
Countries exhibiting strong UAI maintain
rigid codes of belief and behaviour and are
intolerant of unorthodox behaviour and ideas.

41. Short term Vs long term
• Every society has to maintain some links
with its own past while dealing with the
challenges of the present and the future.
Societies prioritize these two existential
goals differently.
• In the business context this dimension is
related to as "(short term) normative
versus (long term) pragmatic" (PRA). In
the academic environment the terminology
Monumentalism versus Flexhumility is

44. Indulgence Vs restraint
• Indulgence stands for a society that allows
relatively free gratification of basic and
natural human drives related to enjoying
life and having fun.
Restraint stands for a society that
suppresses gratification of needs and
regulates it by means of strict social
norms.

48. Application of model…
Recruitment,
Change management
Customer Service,
Marketing
Outsourcing Virtual Teams
Leadership

49. 49
A Sudden Exposure to
unfamiliar Culture. . . !

50. A Fish out of water. . . .!!
50
“Physical and emotional discomfort one suffers when
coming to live in another country or a place different from
the place of origin.”
( Sant Diego University)

51. • Culture shock A person may experience it
when he/she moves to a cultural environment
which is different from his/her own and also is
the personal disorientation a person may feel
when experiencing an unfamiliar way of life
due to immigration or a visit to a new country,
a move between social environments, or
simply travel to another type of life. One of
the most common causes of culture shock
involves individuals in a foreign environment.
Culture shock can be described as consisting
of at least one of four distinct phases:
honeymoon, frustration, 51

52. 52
Culture shock is the feeling of disorientation,
loneliness, insecurity or confusion that can occur
when someone leaves his or her home country to
live in a new culture. Culture shock may come
with any of the following symptoms:
Homesickness
Loneliness
Depression
Need for more sleep than normal
Withdrawal from social activities
Compulsive eating or loss of
appetite
Stereotyping of and hostility
towards host nationals
Lack of energy

53. •One gets accustomed to
the new culture.
•Things begin to seem
“normal”.
•Culture begins to make
sense.
• Full participation
with new culture is
finally achieved.
•Anxiety arises when the
difference between old and
new become apparent.
•Biological Clock.
•Miscommunication.
•At the start, difference
between the old and new
culture is seen in a
“romantic” light.
•Everything is wonderful
and new.
•New food, new buildings,
& new way of life.
Honeymoon Frustration
AdjustmentMastery
53

54. Cultural Training
Cultural
Briefing
54

55. • Provides a written set of situation that the trainee
might encounter in living or working in the host
country. Trainee selects one from a set of response to
the situation and is given feedback as to whether is
appropriate and why.
Cultural
Assimilation
• Provides an opportunity for the trainee to go to the
host country or another unfamiliar culture to
experience living and working for a short time.
Field
Experience
• Explain the major aspects of the host country culture
including customs, traditions, every day behaviour.
Cultural
Briefing
55

56. • Explain the history, geography, economy,
political and other general information
about the host country region.
Area
Briefing
• Allows the trainee to act out a situation
that he or she might face in living or
working in the host country.
Role
Play
• Portray a real-life situation in business or
personal life to illustrate some aspects of
living or working in the host culture.
Cases
56

57. Cross Cultural Negotiations
57

58. Negotiation
• Management’s ability to negotiate
productively effects their ability to
implement strategies
• Negotiation is the process of
discussion by which two
or more parties aim to
reach a mutually
acceptable agreement
• Negotiating across borders is more
complex because of the number of
stakeholders involved

59. Process. . . .

60. Stage One – Preparation
• Negotiator must familiarize themselves with
– The entire context and background of their
counterparts
– To the specific subjects to be negotiated
– Differences in culture, language, and environment
• Managers must have an understanding of
their own negotiating style

62. Preparation
• Managers should find out as much as possible
about
– The kinds of demands that might be made
– The composition of the opposing team
– The relative authority that the members possess
• Develop a profile of their counterparts
• They consider different variables during this
process as well

63. The Negotiation Process
• Relationship building – taking time to build mutual
trust before starting business discussions
– May require go-betweens
– Be prepared to wait for the other party to start business
negotiations
• Exchanging task related information – during this
stage each side makes a presentation and states its
position, normally followed by a question-and-
answer session
– Role reversal: showing an understanding of the other
party’s viewpoint and needs

64. The Negotiation Process
• Persuasion – during this stage both parties try to
persuade the other to accept more of their
position while giving up some of their own; there
are recognizable tactics for this stage
– Stressful tactics
• Concessions and Agreements – at this point each
side will make various concessions so that an
agreement can be reached and signed

65. CASE on MARUTHI
65

66. Glimpse of 25 years
Phase-I
•1983- SMC(24%), Govt. of India(76%)
•Market Dominance
•Production Orientation
•Trade Union Perspective
Phase-II
•1995-SMC(50%, Govt. of India (50%)
•Prod., M&S & People perspective
•Initialization of competition
•Customer Orientation
Phase-III
•2008-SMC(54.2%), Listed in Stock Market
•Intense Competition
•Emphasis on Engineering Capability
•Market orientation & talent perspective

67. Multi-cultural part
• MSIL is a classy example of balanced mix of Indian & Japanese
culture in management styles:
Japanese
• Long-term & detailed process
• Long-term employment relationship
• High Orientation to system/work
practices
• Strong character & commitment
• Budget Process-Cost
savings/reduction
• Slowly/Lengthy Decision Making
• Focus on Micro-business process
Indian
• Rich in tradition & culture
• High emotional quotient
• High versatility-adaptability
• Job Security
• Orientation towards participative
style
• High sense of belongingness
• Company & family connect

68. Conglomerate structure
• Evolved a process of “Paired Leadership Model”
• Introduction of “Managing Executive Officer System” with
focus on:
– Policy Formulation & Key Decisions at board level
– Execution of Key Policies & Decisions in day to day operations
• Benefits of New organizational structure:
– Improved clarity & focus on key management responsibilities
– Harmonization, leading to reduced compartmentalization
– Improved coordination across the functions
– Improved speed in decision making
– Development & career enhancement process of Indian
Professionals

69. MSIL’s training interventions
• A well defined training module has been initiated at middle & senior management
level to:
– Strengthen the bond
– Address multi-cultural issues related to both Japanese & Indian employees
• The training program has been initiated with focus on:
– Creating team synergy
– Promoting culture of innovation
– Enhancing risk taking abilities
– Developing cultural sensitivity
• Language training has been brought in to bridge the language barrier; Specialized
interpreters have been roped in to facilitate better understanding
• Effective communication across the company on regular basis across all levels
divison

70. HR Ground Realities: Indian Context
• HRM, is strongly influenced by:
– Local Culture
– Social Norms
– Local beliefs & practices
• Frequent failure of some MNCs:
– A common mistake: overlooking the local ground realities under
the unconscious bias of their parent Corporate Culture, Policies
& Practices
• People management in India or any other alien overseas
operation cannot be successful managed in any “Japanese”
or “American” or “Korean” or “Arab” or “European” way

71. HR Ground realities: Indian Context
• Maruti is the most successful & live example of such business
success in India – The Suzuki Way – credit to Chairman O.
Suzuki & the SMC Top Management Team.
• The team Govt. thus decorated Chairman O. Suzuki with –
PADMA VIBHUSHAN – the highest Indian honor in year 2007

72. Concluding…
• Managing multi-cultural initiatives help an Organization
keep a competitive HR advantage through:
– Improved corporate culture
– Improved employee morale & higher retention of employee
– Enabling the organization to move into emerging markets
– Decreased interpersonal conflict among employees
– Increased productivity, innovation & brand identity

73. Concluding…
Developing a
Global
Corporate
A Global
Culture
Global People
& talent
potential