CROSS CULTURE LEADERSHIP

Culture:
Culture may be understood as a consortium of communication
(or a bundle of messages) that a given people have in common:
their shared experiences, shared perceptions, and values, shared
consciousness” (Macdonald, 1991). These values, experiences,
and communications are guidelines about what things mean,
what is important, and what should be done.
To ensure a positive and understanding relationship between
individuals, each person must realize that there are multiple
layers to culture. Some layers are easily seen and others are only
recognized when a person has become consciously aware of the
main elements of his culture and the new culture.

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• Anthropologists and sociologists define culture as “Ways of
Living “, built up by a group of human beings, which are
transmitted from one generation to another. A culture acts out its
ways of living in the context of social institutions, including
family, educational, religious, governmental, and business
institutions.
• Culture includes both conscious and unconscious values,
ideas, attitudes, and symbols that shape human behavior and
that are transmitted from one generation to the next. In this
sense, culture does not include onetime solutions to unique
problems, or passing fads and styles.
• As defined by organizational anthropologist Geert Hofstede,
culture is “the collective programming of the mind that
distinguishes the members of one category of people from those
of another”.
• Consists of a set of symbols, ceremonies, and myths that
communicate the underlying
• values and beliefs of that organization to its employees.” -
Ouichi
• Culture consists of learned responses to recurring
situations. The earlier these responses are learned, the more
difficult they are to change.
• Taste and preferences for food and drink, for example,
represent learned responses that are highly variable from culture
to culture and can have a major impact on consumer behavior.
Preference for color is culturally influenced as well.
• For example, although green is a highly regarded color in
Moslem countries, it is associated with disease in some Asian

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countries. White, usually associated with purity and cleanliness
in the West, can signify death in Asian countries.

Characteristics

• Culture is prescriptive. It prescribes the kinds of behaviour

considered acceptable in the society. The prescriptive
characteristics of culture simplify a consumer’s decision-making
process by limiting product choices to those, which are socially
acceptable.

• 2. Culture is socially shared. Culture, out of necessity, must be

based on social interaction and creation. It cannot exist by itself.
It must be shared by members of a society, thus acting to
reinforce culture’s prescriptive nature.

• 3. Culture facilitates communication. One useful function

provided by culture is to facilitate communication. Culture
usually imposes common habits of thought and feeling among
people. Thus, within a given group culture makes it easier for
people to communicate with one another. But culture may also
impede communication across groups because of a lack of
shared common cultural values.

• Culture is learned. Culture is not inherited genetically-it must

be learned and acquired. Socialization or enculturation occurs

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 when a person absorbs or learns the culture in which he or she is
raised. In contrast, if a person learns the culture of a society
other than the one in which he or she was raised, the process of
acculturation occurs. The ability to learn culture makes it
possible to absorb new cultural trends.

• 5. Culture is subjective. People in different cultures often have

different ideas about the same object. What is acceptable in one
culture may not necessarily be so in another. In this regard,
culture is both unique and arbitrary.

• 6. Culture is enduring. Because culture is shared and passed

along from generation to generation, it is relatively stable and
somewhat permanent. Old habits are hard to break, and people
tend to maintain its own heritage in spite of a continuously
changing world. This explains why India and China, despite
severe overcrowding, have a great difficulty with birth control.
The Chinese view a large family as a blessing and assume that
children will take care of parents when growth old.

• Culture is cumulative. Culture is based on hundreds or even

thousands of years of accumulated circumstances. Each
generation adds something of its own to the culture before
passing the heritage on to the next generation.

• 8. Culture is dynamic. Culture is passed along from generation

to generation, but one should not assume that culture is static
and immune to change. Far from being the case, culture is

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 constantly changing-it adapts itself to new situations and new
sources of knowledge.

Elements of Culture

• Language

A group of words or ideas having common meaning and is shared

to a social situation is called language. Language is the entrance
to a culture. Language is a set of socially sound pattern, words,
and sentences having specific meaning and terminology common
to the same culture. Language is a source of communication and
to transmit message from one person to another. It is the method
to mold the behavior and experience of a person. Language differs
from culture to culture and is transmitted from one generation to
another.

• Symbols

Culture is a system of symbols. Symbols are anything used to

represent express and stand for an event situation. Symbols
direct to guide our behavior. It is used to show an event of past,
present or future. For example the heap of ash show that the
something has been burnt or the wet street shows that it has
rained. Bowing head, whistling, winkling of eyes situation, all are
the symbols, which express a specific object idea about other.
American Shake their hand to answer for No. Other examples are
flag, anthem, picture, statues are symbols. Symbols are the short
expression for the identification of an object or situation.

• Norms

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Norms as elements of culture are the rules and the guidelines
which specify the behavior of an individual. Norms keep a person
within the boundary of society and its culture. It gives us
restriction about something which to do and which not to do. It
molds our behavior and gives as knowledge about wrong and
right. Norms can be divided into:

Folkways. Folkways are the simple customary ways of the

people. It is the normal and habitual action of people within a
culture. Folkways are the recognized or accepted ways of
behavior. These are the behavior pattern which a person use
generally in his daily life.

• b. Mores. Mores is a Latin word and the plural of mos

which means customs or beliefs accordance with a group
customary expectation. It is the “must” behavior of a person.
Mores refers to “what ought to be and what ought not to be.”
Mores are serious norms but are informed like folkways. They
have a serious binding on a group the violation of mores threats
to social order. Punishment may be both formal and informal for
the violation of mores.

Values

Anything getting importance in our daily life becomes our values.

The origin of values is not biological but it is social production
while living in society the values develop. Values depend upon
the culture. Culture varies from society to society and thus
values are different in every social situation. Values are what we
like and what we say will in our society values are the good idea
and thinking of a person.

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• Some values are hereditary which we gain from our elders,
books and parents. The culture is full of values and can transmit
from one generation to another. When a natural object get a
meaning it becomes a value.
5. Beliefs
• Every sect within a culture having some beliefs for cultural
refuge. These beliefs are responsible fro the spiritual fulfillment of
needs and wants. Muslims believe in God, Holly Prophet, The
Day of Judgment, recitation of Holly Quran, Hajj etc. Sikh wear
bangle in one hand, bear a long beard, keeping a dagger. Cross
for Christians and a necklace or a cotton thread around nick, the
water of ganga and are sacred for Hindus.
6. Cognitive Elements
• Cognitive elements of culture are those though which an
individual know how to cope with an existing social situation.
How to survive, how make shelter from storms and other natural
calamities, how to travel and transport etc. are the practical
knowledge which make a culture. Such knowledge is carefully
thought to every generation.

System Approach
• There are many different anthropological approaches to cultural
analysis, some readers may prefer to use this coordinated
systems approach as an alternative.
1. Kinship System: - This system states that the family
relationships and the way a people reproduce, train and socialize
their children. The global manager needs to understand the

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significance of the family’s influence to supervise effectively.
Family influences and loyalties can affect job performance or
performance negotiations.
2. Education System: - Educational system may be formal
and informal within any culture. How young or new members of
society are provided with information, knowledge, skills and
values. If one is opening up a factory in India, the training plan
had better include the method of education, whereas in some
societies the training would be for sophisticated technological
positions.
1. Economic System: - The manner in which society produces
and distributes its goods and services. Today, while much of the
world is divided into capitalistic or socialistic economic blocks, it
is evident that regional economic cooperatives are merging to
cross national and ideological boundaries.
2. Political System: - The dominant means of governance for
maintaining order and exercising power of authority. Some
cultures are still in a tribal stage where chief rule, others have a
ruling royal family with an operating king, while still preferring
democracy or communism.
3. Religious System: - The means of providing meaning and
motivation beyond the material aspects of life, that is, the
spiritual side of a culture or its approach to the supernatural.
This transcending system may lift a people to great heights of
accomplishments. Diverse national cultures can be some-what
unified under a share religious beliefs.
4. Association System: - The network of social groupings that
people form. These may range from fraternal and secret societies

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to professional/trade associations. Some cultures are very group
oriented and create formal and informal associations for every
conceivable type of activity. Other societies are individualistic and
avoid such organizing.
5. Health System: - The way a culture prevents and cures
disease or illness, or cares for victims of disasters or accidents.
The concepts of health and wholeness, well being and medical
problems differ by culture. Some countries have witch doctors
and herb medications, other like India have few government-
sponsored social services, while Britain has a system of socialized
medicine.

Key Terminology
• Acculturation – It refers to the processes by which families,
communities and societies react to inter-cultural contact while
retaining characteristics of own culture. As a result a new,
composite culture emerges, in which some existing cultural
features are combined, some are lost, and new features appear.
The earliest recorded western discussion of acculturation appears
to be that of Plato in 348 BC. More than 100 different taxonomies
of acculturation have been formulated since then. See also
adaptation, assimilation, enculturation, syncretism and
transculturation.
• Age Discrimination – It is discrimination against a person
or group on the basis of age. Age discrimination usually comes in
one of two forms: discrimination against youth, and
discrimination against the elderly.

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• Assimilation - is a process of consistent integration
whereby members of an ethno-cultural group, typically
immigrants, or other minority groups, are "absorbed" into an
established larger community. If a child assimilates into a new
culture, he/she gives up his/her cultural values and beliefs and
adopts the new cultural values in their place.
• Belief system - is the way in which a culture collectively
constructs a model or framework for how it thinks about
something. A religion is a particular kind of belief system.
• Biculturalism - The simultaneous identification with two
cultures when an individual feels equally at home in both
cultures and feels emotional attachment with both cultures. The
term started appearing in the 1950s.
• Capitalism - Economic or socio-economic system in which
production and distribution are designed to accumulate capital
and create profit. A characteristic feature of the system is the
separation of those who own the means of production and those
who work for them.
• Cross Cultural - Interaction between individuals from
different cultures. The term cross-cultural is generally used to
describe comparative studies of cultures. Inter cultural is also
used for the same meaning.
• Cross Cultural Awareness - develops from cross-cultural
knowledge as the learner understands and appreciates the
deeper functioning of a culture. This may also be followed by
changes in the learner's own behavior and attitudes and a greater
flexibility and openness becomes visible.

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• Discrimination - Treatment or consideration based on class
or category defined by prejudicial attitudes and beliefs rather
than individual merit. The denial of equal treatment, civil liberties
and opportunities to education, accommodation, health care,
employment and access.
• Ethnicity - Belonging to a common group with shared
heritage, often linked by race, nationality and language.
Ethnocentrism - Belief in the superiority of one's own ethnic
group. Seeing the world through the lenses of one's own people or
culture so that own culture always looks best and becomes the
pattern everyone else should fit into.
• Hybridism - Refers to groups as a mixture of local and non-
local influences; their character and cultural attributes is a
product of contact with the world beyond a local place. The term
originates from agriculture and has for a long time been strongly
related to pejorative concepts of racism and racial purity from
western colonial history.
• Integration - The bringing of people of different racial or
ethnic groups into unrestricted and equal association, as in
society or an organization; desegregation. An individual
integrates when s/he becomes a part of the existing society.
• Minority Group - A group that occupies a subordinate
position in a society. Minorities may be separated by physical or
cultural traits disapproved of by the dominant group and as a
result often experience discrimination. Minorities may not always
be defined along social, ethnic, religious or sexual lines but could
be broad based e.g.
non-citizens or foreigners.

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• Prejudice - Over-generalized, oversimplified or exaggerated
beliefs associated with a category or group of people. These
beliefs are not easily changed, even in the fact of contrary
evidence.
• Racism - Theories, attitudes and practices that display
dislike or antagonism towards people seen as belonging to
particular ethnic groups. Social or political significance is
attached to culturally constructed ideas of difference.
• Social Exclusion - The various ways in which people are
excluded from the accepted norms within a society. Exclusion
can be economic, social, religious or political.
• Stereotypes - Stereotypes (or "characterizations") are
generalizations or assumptions that people make about the
characteristics of all members of a group, based on an inaccurate
image about what people in that group are like.
• Tribe - A type of social formation usually considered to arise
from the development of agriculture. Tribes tend to have a higher
population density than bands and are also characterized by
common descent or ancestry.
• Urbanization - The process by which increasing number of
people come to live in cities.

CULTURAL SENSITIVTY:

Cultural sensitivity, also sometimes referred to as cross-cultural

sensitivity or simply cultural awareness, is the knowledge,
awareness, and acceptance of other cultures and others' cultural

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identities. It is related to cultural competence (the skills needed
for effective communication with people of other cultures, which
includes cross-cultural competence), and sometimes regarded as
the precursor to the achievement of cultural competence, but is a
more widely used term than cultural competence. On the
individual level, cultural sensitivity enables traveler and workers
to successfully navigate a different culture with which they are
interacting.

Cultural sensitivity counters ethnocentrism, and involves

intercultural communication and other skills. Many countries'
populations include minority groups comprising indigenous
peoples and immigrants from other cultures, and workplaces,

educational institutions, media and organization of all types are

mindful of being culturally sensitive to these groups.
Increasingly, training is being incorporated into workplaces and
students' curricula at all levels. The training is usually aimed at
the dominant culture, but in multicultural societies may also be
taught to migrants to teach them about other minority groups,
and it may also be taught to expatriates working in other
countries.

Cultural sensitivity is being aware that cultural differences and

similarities between people exist without assigning them a value
– positive or negative, better or worse, right or wrong.

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It simply means that you are aware that people are not all the
same and that you recognize that your culture is no better than
any other culture.

IMPORTANCE OF CULTURAL SENSTIVITY:

When we learn a foreign language, it gives us access to a different
society and culture. This is good since language is the main mode
of communication amongst people. Cultural awareness makes
communicating with different people easier and more stress-free.

Cultural s and awareness also increases our cultural competence

of the people around us and all over the world, helping us
develop a deeper understanding of other people’s culture as well
as our own, increasing our tolerance and broadening our minds.

Cultural awareness is important because:

1. It makes us global citizens
Cultural awareness helps us break down cultural barriers, build
cultural bridges, and learn how to love, and appreciate those
different from us.
We can relate better to people with cultural differences as we
begin to understand ourselves better. This results in more
cultural connection and less cultural conflict.
When encountering new languages and cultures, we begin to
make comparisons and realize that our own behaviors, values,
and beliefs are not the general norm found elsewhere in the
world.

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By being culturally aware, we can recognize and have an
appreciation for other’s values, customs, and beliefs and meet
them without judgment or prejudice. When we are culturally
aware we can know what is considered inappropriate or
offensive to others. Incorrect body language often leads to
misunderstandings.
For example, in Greece and Albania, nodding your head in an
agreement can lead to misunderstandings.

2. It helps us create a homogenous and inclusive work

environment:
In an office setting, we are most likely to come across different
individuals who possess diverse backgrounds that may
sometimes clash with the values of a business.
Embracing cultural sensitivity and awareness helps us
understand how cultural differences may affect and influence
individuals when forming their unique personalities, perceptions,
and their interactions with others. This will help prevent cultural
problems in the workplace.
A leader who leads with empathy and understanding helps create
a homogeneous environment that fosters creativity, and
innovation while boosting productivity and profitability.
3. Helps to Learn as much as we can about other cultures
We naturally see the world through a distorting screen created by
our subconscious and deeply held values and beliefs. This leads
to insensitivity and potential unintentional blindness to the
values that are important to members of other cultures.

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This is why we need to expose ourselves, observe and get into
contact with the cultures around us. One of the most authentic
ways of learning about new cultures is attending cultural
festivals and events. Here, you get to see how different people
express themselves through music, food, and art.
You can also become personally acquainted with people from
different backgrounds by traveling to exotic locations. Here you
get to immerse yourself in the culture and you learn first-hand
about it by living it.

By exposing ourselves to other cultures, we get the opportunity to

interact with people who are different from us. When we are
around people from different cultures and interact with them
frequently, we can observe and notice moments of tension that
may lead to misunderstandings and points of conflict.

4.Becoming interculturally sensitive prepares an individual

for the expected and unexpected, which makes the person a
better employee and a better global citizen. To better understand
oneself and others, an individual must be willing to invite the
unexpected and be ready to learn. Though there will be
similarities between individuals, there will be many differences.
One must be open to new information and new experiences when
learning about a different culture.

What are the skills needed to be culturally competent?

There are many variations to what skills are specifically
needed to become interculturally sensitive. The seven skills that
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are common themes in becoming interculturally sensitive are
that the individual must have an open attitude, be self-aware,
have an understanding of the cultures language, nonverbal
behavior, silent languages, values, and Hofstede’s cultural
dimensions which affect thinking and decision-making processes.
1. Open attitude
An open attitude is about developing a global mindset. The
requirements to achieve this open mindset are to challenge
assumptions, avoid quick judgments, tolerate ambiguity and
complexity, exercise patience, and pursue learning (Walker et al.,
2003). An individual must be willing to learn, try and experience
new things. “While the cognitive component of an intercultural
interaction is important, the affective component is also
necessary for effective and successful intercultural interactions.
Affective understanding requires an experiential approach to
learning” (Rudd & Lawson, 2007). Through this experiential and
“conscious attention to normally subconscious processes”
approach, the person can develop a better understanding of other
cultures (Rudd and Lawson, 2007).
2. Self-awareness
Understanding one’s own culture has been referenced numerous
times, but the importance of self-awareness cannot be stressed
enough. Intercultural sensitivity education should include self-
awareness building, because cultural understanding of
similarities and differences are referenced to a person’s home
culture.There are many questions one must ask himself when
improving self-awareness, such as “What are my cultural values,
beliefs and attitudes?,” “How are these elements of my culture

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reflected in my behavior?” and “How adaptable and tolerant am
I?”. By continuously asking oneself these questions, an individual
will become more self-aware and therefore more culturally
sensitive towards differing cultures.
3. Language
The verbal languages of cultures create an obvious divide and
can make understanding and communication between cultures
impossible. Even being able to speak a second language does not
aid in understanding as much as being a native speaker. “Having
the ability to communicate [with language] during a business
transaction may help in meeting the immediate business
objective, it does not add to the cognitive knowledge and
understanding of another culture”
4. Nonverbal Behaviors
Nonverbal behavior comprises 80-90 percent of a culture’s
communication, which are commonly taken for granted
subconsciously. Because of the subconscious nature of
nonverbal language, understanding becomes increasingly difficult
(Alder & G. Nonverbal behavior communicates the context of a
situation. Consequently, a situation’s context can be interpreted
numerous ways because of the differences in nonverbal behaviors
across cultures.
Explain these in detail for this topic
 Practice openness by demonstrating acceptance of
difference.
 Be flexible by demonstrating acceptance of ambiguity.
 Demonstrate humility through suspension of judgment and
the ability to learn.
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  Be sensitive to others by appreciating cultural differences.
 Show a spirit of adventure by showing curiosity and seeing
opportunities in different situations.
 Use a sense of humor through the ability to laugh at
ourselves.
 Practice positive change or action by demonstrating a
successful interaction with the identified culture.

CROSS CULTURAL LEARNING

Cross-cultural learning increases students’ understanding of
their own and other cultures; it enhances one’s knowledge of the
norms, values, and behaviors that exist in cultures. And it allows
the student both to discern and communicate cultural differences
with sensitivity and confidence. Thus, as a result of the cross-
cultural training, sojourners are usually better adjusted to their
new cultural milieu.
Cross-cultural training enhances interpersonal skills and
increases people's ability to be effective global leaders. Individuals
who demonstrate effective communication skills across cultures
are much more likely to motivate others and be able to lead with
influence.
The definition of cross-cultural is a person or thing that relates to
different cultures or nations. An example of cross-cultural is a

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home with a foreign exchange student. ... Of or relating to
different cultures, nations, etc. or to comparisons of them.
Where one is concerned with intercultural training, education, or
development, all employees should learn about the influence of
culture and be effective cross-cultural communicators if they are
to work with minorities within their own society or with
foreigners encountered at home or abroad. For example, there
has been a significant increase in foreign investments in the
United States— millions of Americans now work within the
borders of their own country for fpreign employers. A'll along the
U.S.-Mexican border, twin plants have emerged that provide for a
flow of goods and services between the two countries.
Here are parallel reasons why all managers and professionals
should advance their culture learning, or why global
organizations should include it in their human resource
development strategies:
1. Culture gives people a sense of identity, whether in
nations or corporations, especially in terms of the human
behavior and values to be encouraged. Through it,
organizational loyalty and performance can be improved.
2. Cultural knowledge provides insight into people. The
appropriate business protocol can be employed that is in
tune with local character, codes, ideology, and
standards.
3. Cultural awareness and skill can be helpful in
influencing organizational culture. Furthermore,
subsidiaries, divisions, departments, or specializations

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 have subcultures that can foster or undermine
organizational goals and communications.
4. Cultural concepts and characteristics are useful for the
analysis of work culture in the disappearing industrial
and emerging meta industrial work environments.
5. Cultural insights and tools are helpful in the study of
comparative management techniques, so that we become
less culture bound in our approach to leadership and
management practice.
6. Cultural competencies re essential for those in
international business and trade.
7. Cultural astuteness enables one to comprehend the
diversity of market needs, and to improve strategies with
minority and ethnic groups at home, or foreign markets
abroad.
8. Cultural capabilities can enhance one's participation in
international organizations -and meetings: This is true
whether one merely attends a conference abroad, is a
delegate to a regional or foreign association, is a member
in a world trade or professional enterprise,or is a meeting
planner for transnational events.
9. Cultural proficiency can facilitate one's Coping with the
changes of any transitional experience.
10. Cultural diversity is not only evident on this planet, but
also in the migration Of our species aloft where
multicultural crews of astronauts and cosmonauts are
creating a new space culture.

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 GLOBAL TRANSFORMATIONS
The concept of "global transformations" first appeared in the
works of French and American authors in the 60s of the 20th
century. It marked the transition from the modern to the latest
phase of globalization, when the wave of global flows and
relationships significantly increased and qualitatively changed
the basic forms of social activities (political, economic and
cultural). Global transformations is defined as significant
structural changes (changes and transformations) in the
contemporary post-industrial informational (via the Internet, the
media) and real (cultural, economic, political) world dimension
between different countries. In the broad meaning, "global
transformations" are the process of real system social, cultural,
economic and political (and legal) changes (up to the radical
reorganization of the world model), dynamically developing in the
period from the second half of the 20th –beginning of the 21st
century in the relations between various national states. One of
the possible risks of global transformations becomes the
inevitability of confrontation between the leading countries of the
world for the world’s resources, geopolitical influence and
economic dominance. Global transformations of cultural
organization. Major changes of cultural globalization occur in the
field of cultural identity and system of values at the ethno-
cultural, national and global levels. The key question remains –
what changes in the culture of identity and what is vulnerable in
the global transformation of the culture. Cultural globalization
changes the context in which the production and reproduction of
national cultures occurs. Global transformations are a process of

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real change in the economic, political and cultural organization at
the regional, national and global levels.

GLOBAL COMPETENCIES

Global competence is the skills, values, and behaviors that

prepare young people to thrive in a more diverse, interconnected
world. In a rapidly changing world, the ability to be engaged
citizens and collaborative problem solvers who are ready for the
workforce is essential. In the 21st century and beyond this is
what all people will need. To be engaged citizens. To be prepared
for jobs of the future. To be local and global problem solvers.

Global Competence is a multi-dimensional construct that

requires a combination of knowledge, skills, attitudes and
values successfully applied to global issues or intercultural
situations. Global issues refer to those that affect all people,
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and have deep implications for current and future generations.
Intercultural situations refer to face-to-face, virtual or
mediated encounters with people who are perceived to be from
a different cultural background.
Developing global competence is a life-long process, but it is
one that education can shape. PISA 2018 assesses where 15-
year-old students are situated in this process, and whether
their schools effectively address the development of global
competence.

Why is it important for students to develop Global

Competence?
Global competence can help young people:
• develop cultural awareness and respectful interactions in
increasingly diverse societies;
• recognize and challenge cultural biases and stereotypes,
and facilitate harmonious living in multicultural communities;
• prepare for the world of work, which increasingly demands
individuals who are effective communicators, are open to
people from different cultural backgrounds, can build trust in
diverse teams and can demonstrate respect for others,
especially as technology continues to make it easier to connect
on a global scale;
• capitalize on inherently interconnected digital spaces,
question biased media representations, and express their voice
responsibly online;
• care about global issues and engage in tackling social,
political, economic and environmental challenges.
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 Capacities
The capacities one must possess include:
• Critical thinking skills
• Problem-solving skills
• The desire to learn new things
• Insight into the perspectives of others
• The ability to appreciate the differences between people
• Comfort among ambiguity
• Malleability or feeling at ease with change

Elements
The elements one must use these capacities toward at every
level include:
• Enjoying cultural differences
• Navigating changing political realities
• Care with respect to different regulatory nuances
• An appreciation for the financial aspects of others
• A desire to improve sustainability and well-being at every
level

Cost of global incompetence:

To identify the real cost of conflict in your organization, consider

the following 7 factors:

1. Wasted time. How much management time is wasted on

conflict rather than addressing more productive issues?

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 Remember to factor in lost productivity when employees
spend time complaining to co-workers about the conflict.
2. Employee turnover. When conflict is severe or ongoing,
especially when there’s a sense of betrayal in the workplace,
employees are likely to seek a better place to work,
particularly when the job market is strong. Don’t
underestimate replacement costs. The cost of finding,
training, and bringing a new person up to speed can often
exceed the annual salary of the employee who leaves
(particularly if they were a high-potential). It certainly costs
more than addressing conflicts in the first place so
employees don’t get frustrated and leave.
3. Grievances, complaints, and lawsuits. If problems are
handled effectively from the start, many issues can be
resolved informally at a much lower cost. If problems are
ignored or not handled well, then the conflict spirals out of
control and requires third-party intervention, requiring
more time, effort, and cost.
4. Absenteeism and health costs. Employees often stay away
from work to avoid dealing with conflict or to delay a
confrontation. Others may take time off to address the
physical and emotional stress of conflict. Health care costs,
in connection to stress-related illnesses, are part of the price
of conflict incompetence.
5. Workplace violence. Conflict can escalate out of control.
The National Institute of Occupational Safety and Health
estimates that more than one million workers are assaulted
each year at work, and a significant number of these
assaults come from disgruntled customers, patients, co-
workers, and employees. The emotional toll can be
enormous and can increase the costs associated with
retention, absenteeism, and health care.
6. Poor decision-making. Destructive conflict disrupts the
organization’s ability to function effectively. People begin to
lose their energy and creativity. They pull back, stop sharing
information, and take fewer risks. The result can be
less collaboration across boundaries and poorer quality
group decision-making.
7. A poisoned workplace. Conflict causes all sorts of
unpleasant emotions and reduces the sense that you’re in
a psychologically safe work environment. Anger, fear,
defensiveness, negativity, hurt, and embarrassment,

26
 combined with misunderstanding and distrust, will lower
morale and strain relationships.

GLOBAL LEADERS AND COMMUNICATION:

Global or international communication is the development
and sharing of information, through verbal and non-verbal
messages, in international settings and contexts. It is a broad
field that incorporates multiple disciplines of communication,
including intercultural, political, health, media, crisis, social
advocacy, and integrated marketing communications, to name
just a few.
The study of global communication examines how information
is exchanged across geographical and social divides, as well as
how communication both impacts and is influenced by
culture, politics, media, economies, health, and relationships
in the age of globalization. Its strategies and practices allow
marketers and creative directors, public relations specialists,
political consultants, market researchers, journalists, non-
profit leaders, and other professionals in foreign or
international industries to develop and share messages that
reach audiences across borders, whether to resonate
politically, help sell a product, or expose illegal labor practices.
Global communication can take various forms, including
global advertisements, political speeches, journalistic news
stories, social media posts, press releases, books and
traditional print publications, and more.

Global communication Process:

27
 Communications is a continuous process which mainly
involves three elements viz. sender, message, and receiver. The
elements involved in the communication process are explained
below in detail:
1. Sender
The sender or the communicator generates the message and
conveys it to the receiver. He is the source and the one who
starts the communication
2. Message
It is the idea, information, view, fact, feeling, etc. that is
generated by the sender and is then intended to be
communicated further.
3. Encoding
The message generated by the sender is encoded symbolically
such as in the form of words, pictures, gestures, etc. before it is
being conveyed.
4. Media
It is the manner in which the encoded message is transmitted.
The message may be transmitted orally or in writing. The
medium of communication includes telephone, internet, post,
fax, e-mail, etc. The choice of medium is decided by the sender.
5. Decoding
It is the process of converting the symbols encoded by the sender.
After decoding the message is received by the receiver.
6. Receiver
He is the person who is last in the chain and for whom the
message was sent by the sender. Once the receiver receives the

28
message and understands it in proper perspective and acts
according to the message, only then the purpose of
communication is successful.
7. Feedback
Once the receiver confirms to the sender that he has received the
message and understood it, the process of communication is
complete.
8. Noise
It refers to any obstruction that is caused by the sender, message
or receiver during the process of communication. For example,
bad telephone connection, faulty encoding, faulty decoding,
inattentive receiver, poor understanding of message due to
prejudice or inappropriate gestures, etc.

CROSS CULTURAL COMMUNICATION:

29
Cross-cultural communication refers to interpersonal
communication and interaction across different cultures. This
has become an important issue in our age of globalization and
internationalization. Effective cross-cultural communication is
concerned with overcoming cultural differences across
nationality, religion, borders, culture and behavior. The term
cross-cultural generally used to describe comparative studies of
cultures.
Culture is the basic concept of cross-cultural communication.
Merriam-Webster's Collegiate Dictionary defines culture as 'the
integrated pattern of human knowledge, belief and behavior that
depends upon man's capacity for learning and transmitting
knowledge to succeeding generations'. Another usage in the same
dictionary stresses the social aspect of culture and defines it as
'the customary beliefs, social forms, and material traits of a
racial, religious or social group'.
The OED, in a similar vein, states that culture is ' a particular
form, stage, or type of intellectual development or civilization in a
society; a society or group characterized by its distinctive
customs, achievements, products, outlook, etc.' It almost goes
without saying that there can hardly be any learning or
transmitting knowledge or intellectual development without
language. Nor can a society or a group function without
language.
Culture not only dictates who talks what, to whom, how, and
why, but also helps to determine how communication proceeds,
and how messages transmit the intended meanings.

30
Cross-cultural communication — the comparison of
communication across cultures. Although cross-cultural
communication needs:
 Listening Skills
Their emphasis usually lies on being a competent speaker,
listening is a key skill that many business personnel do not
exercise enough. For cross-cultural communication, attentive
listening is critical to be able to understand meanings, read
between the lines and enable to empathize with the speaker. 
Speaking Skills
Listening and speaking must work in tandem for effective cross-
cultural communication. Speaking well is not about accent, use
of grammar and vocabulary or having the gift of the gab. Rather,
cross-cultural communication is enhanced through positive
speech such as encouragement, affirmation, recognition and
phrasing requests clearly or expressing opinions sensitively.
 Observation
Large amounts of cross-cultural information can be read in
people's dress, body language, interaction and behaviour. Be
aware of differences with your own culture and try to understand
the roots of behaviours. Asking questions expands your cross-
cultural knowledge.
 Patience
People need to recognize and understand that sometimes cross-
cultural differences are annoying and frustrating. In these
situations, patience is definitely a virtue. Through patience,
respect is won, and cross-cultural understanding is enhanced.
 Flexibility
31
Flexibility, adaptability and open-mindedness are the route to
successful cross-cultural communication. Understanding,
embracing and addressing cross-cultural differences leads to the
breaking of cultural barriers, which results in better lines of
communication, mutual trust and creative thinking.
Following these five cross-cultural communication needs will
allow us to improve lines of communication and better cross-
cultural awareness and successful cross-cultural relationships.

CULTURAL FACTORS IN COMMUNICATION:

Culture can be defined as the learned behaviour of values,
attitudes, thought patterns and ways of doing things that a
person brings with them from a particular place where they were
brought up as a child. These values and attitudes can have an
impact on communication across cultures because each person's
norms and practices will often be different and may possibly
clash with those of co-workers brought up in different parts of
the world.
Factors

32
1. Racial Identity
Racial identity refers to how one's membership to a particular
race affects how they interact with co-workers of different races.

2. Ethnic Identity
Ethnic identity highlights the role ethnicity plays in how two co-
workers from different cultures interact with one another. In the
United States, white European and Americans are less likely to
take their ethnicity into account when communicating, which
only highlights the importance of addressing different ethnicities
in a workplace as a way of educating all co-workers to the
dynamics that may arise between individuals of the same or
different ethnic groups.
So, what is the difference between race and ethnicity? According
to experts from PBS, "While race and ethnicity share an ideology
of common ancestry, they differ in several ways. First of all, race
is primarily unitary. You can only have one race, while you can
claim multiple ethnic affiliations. You can identify ethnically as
Irish and Polish, but you have to be essentially either black or
white."

3. Gender Roles
Another factor that impacts intercultural communication is
gender. This means that communication between members of
different cultures is affected by how different societies view the
roles of men and women. For example, a Westerner's reaction to
rules that require women in Saudi Arabia to cover themselves
and only travel in public when accompanied by a male family
member as repressive and degrading. This is looking at the world

33
through a Western lens. Saudi women generally view themselves
as protected and honoured. When studying gender identity in
Saudi Arabia it is important that we view the Saudi culture
through a Saudi lens. Women in the West generally struggle with
these traditional stereotypes, while women in Saudi Arabia
embrace their cultural roles.

4. Individual Identity
The individual identity factor is the fifth factor that impacts
cross-cultural communication. This means that how a person
communicates with others from other cultures depends on their
own unique personality traits and how they esteem themselves.
Just as a culture can be described in broad terms as "open" or
"traditional," an individual from a culture can also be observed to
be "open-minded" or "conservative." These differences will have
an effect on the way that multiple individuals from the same
culture communicate with other individuals.

5. Social Class
A sixth factor which influences intercultural communication is
the social identity factor. The social identity factor refers to the
level of society that person was born into or references when
determining whom they want to be and how they will act
accordingly.
Class often plays an important role in shaping our reactions to
and interpretations of culture. For example, French sociologist
Pierre Bourdieu (1987) studied the various responses to art,
sports, and other cultural activities of people in different French
social classes. According to Bourdieu, working-class people prefer

34
to watch soccer whereas upper-class individuals like tennis or
golf and middle-class people prefer photographic art whereas
upper-class individuals favour less representational art. As these
findings reveal, class distinctions are real and can be linked to
actual behavioural practices and preferences."
6. Age
The age identity factor refers to how members of different age
groups interact with one another. This might be thought of in
terms of the "generation gap". More hierarchical cultures like
China, Thailand, and Cambodia pay great deference and respect
to their elders and take their elders' opinions into account when
making life-changing decisions. Cultures like the United States
are less mindful of their elders and less likely to take their advice
into account when making important decisions. Such attitudes
towards age cause the age identity factor to impact intercultural
communication in the workplace.
7. The Roles Identity Factor
The role identity factor refers to the different roles a person plays
in his or her life including their roles as a husband or wife,
father, mother or child, employer or employee, and so forth. How
two members of a workforce from two different cultures view
these various roles influences how they will interact with their
fellow colleague or counterpart.

35
VARIABLES IN COMMUNICATION PROCESS:
Each variable influences our perceptions, which in turn influence
the meanings we behaviour. Seeking to work effectively in a
multicultural environment one Should recognize these and study
the cultural specifics for the country or area to be visited:
1. Attitudes- are psychological states that predispose us to
behave in certain ways. An undesirable attitude for
managers working in a multicultural environment is
ethnocentrism or self-reference criterion. This is the
tendency to judge others by using one's own personal or
cultural standards. For example, instead of attempting to
understand the Japanese within their own cultural context,
an ethnocentric person tries to under-. stand them as
similar to or different from Americans. It is vital to refrain
from constantly making comparisons between our way of
life and that of others. Rather, one must understand other
people in the context of their unique historical, political,
economic, social, and cultural backgrounds. In that way it
is possible to become more effective-interactors with them.
2. Social organization- of cultures is also a variable that
influences one's perceptions. A geographic society is
composed of members of a nation, tribe, or' religious sect;
and a role society is composed of members of a profession or

36
 the elite of a group. Managers are members of the same role
society, i.e., the business environment, but they are often
members of different geographic societies. At one level
communication between managers from two different
cultures should be relatively smooth. On another level,
significant differences in values, approach, pace, priorities,
and other factors may cause difficulties.
3. Thought patterns or forms of reasoning may differ from
culture to culture. The Aristotelian mode of reasoning
prevalent in the West is not shared by people in the East.
What is reasonable, logical, and self-evident to an American
may be unreasonable, illogical, and not self-evident to a
Japanese.
4. Roles in a society and expectations of a culture concerning
behaviour affect communication. Some roles have very
prescriptive rules. For example, the meishi or name card of
the Japanese business person identifies his or her position
in a company and determines the degree of respect that is
appropriately due the individual.
5. Language skill- in a host country is acknowledged as
important by global leaders, but many believe that a-
competent interpreter can be helpful and at times
necessary.
6. Space- is also a factor in the communication process.
Americans believe that a comfortable space around them is
approximately two feet. The United States is a non-contact
society. Latin Americans and Middle Easterners, for
example, are contact societies and are comfortable with

37
 close physical proximity to others, Touching is common
between males and handshakes are frequent.
7. Time sense- also impacts human interaction. North
American cultures perceive time in lineal-spatial terms in
the sense that there is a past, a present, and a future. In
being oriented to the future, and in the process of preparing
for-it, one saves, wastes, makes up, or spends time. Zen
treats time as a limitless pool in which certain things
happen and then pass. A different time orientation can
cause confusion when doing business in other cultures.

COMMUNICATION KEY
Communication is part of the foundation to any successful
working relationship. Effective communication includes clarity,
conciseness, and coherence between all parties. However, that
clarity, conciseness, and coherence doesn’t always come
naturally in a relationship.

To develop effective communication skills, you must focus on

what else goes into the message outside of the words used. Here
are the three keys to communication:
1. Listening
Listening is an active, not a passive, skill. Active listening
establishes rapport and sets the foundation for solid
interpersonal relationships. Active listening requires the listener’s
attention, not only to the words but also the feelings and body
movements of the sender.

38
When it comes to listening, it is important to assure the speaker
that you are engaged in the conversation. There are five
clarification techniques: summarize, paraphrase, organize, open-
ended questions, and specific example.
 Summarize: the listener condenses the fact or feeling
message that is sent into several major thoughts.
 Paraphrase: the listener restates the exact meaning of the
speaker’s message in different words.
 Organize: the listener restructures the information that was
sent into categories, main ideas, or thoughts and feelings.
 Open-ended Questions: the listener requests more
information from the speaker.
 Specific Example: the listener requests that a specific
example or illustration be given.
2. Nonverbal
Nonverbal communication refers to the messages people send
without talking. The message delivered is through body
movements, posture, tone, use of space, and objects. The
nonverbal message often carries a greater impact than the verbal
or spoken word.
In order to communicate effectively, you must be aware of the
various elements that go into your nonverbal communication.
Examples of nonverbal communication elements include, head
nods, eye contact, and facial expressions.
3. Written
Having well-developed written communications skills is extremely
important to business communication, especially in our now
digital world filled with emails and text messages.
39
Whether you are constructing an e-mail, texting a vendor for an
update, or sending materials to a client, it is important to ensure
that there is no room for misinterpretation. Written
communication does not have the nonverbal messaging present
to clarify or strengthen the message. Be sure that the words you
choose are appropriately used by their definition.

LOW/ HIGH CONTEXT COMMUNICATION

HIGH CONTEXT COMMUNICATION-
"Most of the information is either in the physical context or
initialized in the person."
 Knowledge is situational, relational
 Less is verbally explicit or written or formally expressed
 More internalized understandings of what is communicated
(ex: "in-jokes")
 Often used in long term, well-established relationships
 Decisions and activities focus around personal face-to-face
communication, often around a central, authoritative figure
 Strong awareness of who is accepted/belongs vs. "outsiders"
Association
 Relationships depend on trust, build up slowly, and are
stable.
 How things get done depends on relationships with people
and attention to group process.
 One's identity is rooted in groups (family, culture, work).
Interaction

40
  High use of nonverbal elements; voice tone, facial
expression, gestures, and eye movement carry significant
parts of conversation.
 Verbal message is indirect; one talks around the point and
embellishes it.
 Communication is seen as an art form-a way of engaging
someone.
 Disagreement is personalized. One is sensitive to conflict
expressed in another's nonverbal communication. Conflict
either must be solved before work can progress or must be
avoided.
Learning
 Multiple sources of information are used. Thinking is
deductive, proceeds from general to specific.
 Learning occurs by first observing others as they model or
demonstrate and then practicing.
 Groups are preferred for learning and problem solving.
 Accuracy is valued. How well something is learned is
important.
High context cultures are more common in the eastern nations
than in western, and in countries with low racial diversity.
Cultures where the group is valued over the individual promote
group reliance. High context cultures have a strong sense of
tradition and history, and change little over time, such as tribal
and native societies. For instance, the French assume that the
listener knows everything. Therefore, they may think that
Americans think they are stupid because Americans will
habitually explain everything to their counterparts.
41
LOW CONTEXT COMMUNICATION-
"The mass of information is vested in the explicit code [message]."
Rule oriented
 More knowledge is public, external, and accessible.
 Shorter duration of communications
 Knowledge is transferable
 Task-centred. Decisions and activities focus around what
needs to be done and the division of responsibilities.
Association
 Relationships begin and end quickly. Many people can be
inside one's circle; circle's boundary is not clear.
 Things get done by following procedures and paying
attention to the goal.
 One's identity is rooted in oneself and one's
accomplishments.
 Social structure is decentralized; responsibility goes further
down (is not concentrated at the top).
Interaction
 Message is carried more by words than by nonverbal means.
 Verbal message is direct; one spells things out exactly.
 Communication is seen as a way of exchanging information,
ideas, and opinions.
 Disagreement is depersonalized. One withdraws from
conflict with another and gets on with the task. Focus is on
rational solutions, not personal ones.

42
LISTENING-
Listening is, above all, a sharing of oneself. It is impossible for
one to become an active listener without becoming involved with
the speaker. Listening demonstrates the respect and concern that
words alone cannot fully express. It has the unique power of
diminishing the magnitude of problems. By speaking to someone
who listens, a person has the sense of already accomplishing
something.
Listening fulfils another vital function as well. The listener
provides feedback to the speaker concerning the latter's success
in transmitting his or her message clearly. In doing this, the
listener exerts great control over future messages that might or
might not be sent. Feedback will influence the speaker's
confidence, delivery, the content of the words, and the nonverbal
facets of communication.
It is said that working within our own culture we are very
perceptive. We know what ideas are being accepted or rejected,
and when others are following our conversation. However, when
communicating across cultures there is the real possibility of
reading people minds and they us. Problems arise when one does
not pay close enough attention or actively listen to what an
individual is trying to communicate. Instead, when at work,
focusing on getting the job done and meeting business deadlines
and agendas, one can easily pretend to listen or listen half-
heartedly. Today the workplace is filled with individuals from
different cultures, as well as a mix of age, gender, and work
values. One must listen at levels in cross-cultural exchanges.

43
1. Pay attention to the person and the message. One may
subconsciously ignore another because the thought process or
thinking pattern they use are more convoluted or subtle than
one's own. Also, the behaviour of the speaker may be so
emotional or subdued that one may selectively listen or not listen
at all. To further complicate the listening process, an individual
may speak with an accent that can cause the listener to struggle
to determine the words and put them in an understandable
order.
2. Emphasize and create rapport. Empathy, especially with
people who have visible differences in language and culture, can
build trust and loyalty. The verbal and nonverbal cues of the
speaker reveal his depth or her thinking patterns. Attempting to
emulate cues, after reading them properly and matching their
style increases the comfort and effectiveness of communication,
especially a cross-cultural one.
3. Share meaning. Share your understanding of what you
think the individual is saying. Paraphrasing is an "active
listening" skill enabling one to check the accuracy of what you
understand the message to be.

NEGOTIATING FOR LONG TERM FOR

MUTUAL BENEFITS
Cross-cultural negotiation-
Negotiation is a process in which two or more entities discuss
common and conflicting interests in order to reach an agreement
of mutual benefit. In international business differences in the

44
negotiation process from culture to culture include language,
cultural conditioning, negotiating styles, approaches to problem
solving, implicit assumptions, gestures and facial expressions, an
e roe o ceremony a formality
For international negotiations to produce long-term synergy, and
not just short-term solutions, individuals involved in the
negotiation must be aware of the multicultural facets in the
process. The negotiator must understand the cultural space of
his or her counterparts. It is our belief that negotiating is a skill
and it can be improved. This section addresses some of the
cultural variables and considerations of negotiations.
Cross- cultural negotiation is the interactions, typically in
business, that occur between various cultures. These
negotiations are typically viewed as occurring between various
nations, but cross-cultural studies can also occur between
different cultures within the same nation, such as between
European-Americans and Native Americans. As the world
becomes more and more interdependent as a result in the
expansion of globalization and international business relations,
cross-cultural negotiations are becoming a common feature in
business and political transactions.
Culture is acquired by individuals from the group they belong to
either through socialization or acculturation. This implies that
culture not only has to be shared by the individuals belonging to
a certain group but also that it has to be preserved in time and
transmitted from one generation to another.
There are several ways in which to resolve the conflict. If one
party is significantly more dominant (powerful) than another,

45
they could attempt to simply enforce their will on the other.
Other times, both parties may choose to enlist the aid of an
outside neutral party to “mediate” the issue. Generally, the
mediator’s role is that of a facilitator, bringing the parties
together and assisting them to work through the particular issue.
Fisher addresses five considerations for analysing cross-cultural
negotiations:
 The players and the situation
 Styles of decision making
 National Character
 Cross cultural noise
 Interpreters and translators

1. THE PLAYERS AND THE SITUATION-

The negotiator should discover what the foreign negotiator
expects and then provide a tension free environment that
encourages cooperation and problem solving. Negotiators
can anticipate a counterpart’s behaviour by researching
biographical data and analysing the negotiator’s
organizational or institutional role. In case of negotiating
teams, it is useful to discover how corporate culture affects
internal dynamics.

2. STYLES OF DECISION MAKING-

The organizational culture of a foreign corporation may
provide formal rules and regulation guiding its decision-
making process. A negotiator can find ways to influence a
foreign corporation's decisions by analysing its corporate
46
 culture and structuring arguments to fit within
established guidelines.
Furthermore, there are general cultural patterns by which
individual negotiators develop personal styles of decision-
making behaviour. By discovering how foreign counterparts
look at facts and analyse data, successful negotiators can
provide information that will increase the probability of a
successful outcome.

3. NATIONAL CHARACTER-
Studies of national character call attention to the patterns
of personality that negotiators tend to exhibit and to the
collective concerns that give a nation a distinctive outlook in
international relationships. Foreign negotiators concerned
with international image may be preoccupied with
discussions of their national heritage, identity and
language.
Cultural attitudes, such as ethnocentrism may influence the
tone their argument.

4. CROSS CULTURE NOISE-

Noise consists of background distractions that have nothing to
do with the substance of the foreign negotiator’s message.
Factors such as gestures, personal proximity, and office
surroundings may unintentionally interfere with
communication. The danger of misinterpretation of messages
necessitates analysis of various contextual factors.

47
 5. INTERPRETERS AND TRANSLATORS-
Limitations in translating certain ideas, concepts, meanings
and nuances. Subjective meaning may not come across
through words alone. Gestures, tone of voice, cadence, and
double intenders are all meant to transmit a message.
This is especially true in discussions of abstract concepts
such as planning and international strategy. The parties
may think that they have come to an agreement when in
fact they have entirely different intentions and
understandings.

FRAMEWORK FOR INTERNATIONAL BUSINESS

NEGOTIATIONS:
There are 12 variables in every negotiation with persons from
other countries that impact the negotiations and therefore can
significantly influence the outcome either positively or negatively:
1. Basic conception of negotiation process:
There are two opposing approaches to the concept of
negotiations: strategic and synergetic. In the strategic
model, resources are perceived as limited. The sides are
competitive and bargaining is perceived as who will get the
larger portion of the pie.
2. Negotiator Selection Criteria:
These criteria include negotiating experience, seniority,
political affiliation, gender, ethnic ties, kinship, technical
knowledge and personal attributes. Each culture has
preferences and biases regarding selection.
3. Significance of types of Issue:

48
Defining the issues in negotiation is critical. Generally
substantive issues focus on control and use of resources
(space, power, property). Relationship-based issues centre
around the ongoing nature of mutual or reciprocal interests.
The negotiation should not hinder relationship and future
negotiations.
4. Concern with Protocol:
Protocol is the accepted practices of social behaviour and
interaction. Rules of protocol can be formal or informal; for
example, Americans are generally less formal than Germans.
5. Complexity of Language:
Complexity refers to the degree of reliance on non-verbal cues
to convey and to interpret intentions and information in
dialogue. These cues include distance (space), eye contact,
gestures, and silence. There is high- and low-context
communication. Cultures that are high context in
communication (China) are fast and efficient communicators
and information is in the physical context or pre-programmed
in the person. Low-context communication, in contrast, is
information conveyed by the words without shared meaning
implied. The United States is a low-context culture.
6. Nature of Persuasive Arguments:
One way or another, negotiation involves attempts to influence
the other party. Counterparts can use an emotional or logical
approach.
7. Role of Individuals' Aspirations:
The emphasis negotiators place on their individual goals and
needs for recognition may. also vary. In some cases, the

49
 position of a negotiator may reflect personal goals to a
greater extent than corporate goals. In contrast, a negotiator
may want to prove he or she is a hard bargained and
compromise the goals of the corporation.
8. Bases of Trust:
Every negotiator at some point must face the critical issues
of trust. One must eventually trust one’s counterparts;
otherwise, resolution would be impossible. Trust can be
based on the written laws of a particular country or it can be
based on friendship and mutual respect and esteem.
9. Risk- taking propensity:
Negotiators can be perceived as either or "adventurous" (high
risk takers). If a negotiator selects a solution that has lower
rewards but higher probability of success, he or she is not a
risk taker. If the negotiator chooses higher rewards but a
lower probability of success then he or she is "adventurous"
and a risk taker.

10. Value of Time:

Each culture has a different way of perceiving and acting
upon time. Monochronic cultures emphasize making
agendas, being on time for appointments and generally
seeing time as a quantity to be scheduled. Polychronic
cultures stress the involvement of people rather than present
schedules. The future cannot be firm, so planning takes on
little consequence.
11. Decision making System:

50
 Broadly understood, decision-making systems can be '
authoritative" or "consensual." In authoritative decision-
making, an individual makes the decision without consulting
with his or her superiors. However, senior executives may
overturn the decision. In consensus decision-making,
negotiators do not have the authority to make decisions
unless they consult their' superiors.
12. Form of Satisfactory Agreement:
Generally, there are two broad forms of agreement. One is
the written contract that covers possible contingencies. The
other is the broad oral agreement that binds the negotiating
parties through the quality of their relationship.

CONSEQUENCES OF FAILED
NEGOTIATIONS
Ans. Negotiation is a dialogue between two or more people or

parties intended to reach a beneficial outcome over one or

more issues where a conflict exists with respect to an issue.
It is an interaction between entities who aspire to agree on
matters of mutual interest, while optimizing their individual
utilities. Negotiators need to understand the negotiation
process in order to avoid the conflicts with other parties and
to gain maximum profit. And when there is no
understanding between the parties then it is considered to
be a failed negotiation.
Negotiation is a global phenomenon as it occurs in
organizations including businesses, governments of different

51
countries and also in personal situations such as marriage,
divorce, parenting etc.
When negotiation fails then it has negative consequences on
both the parties involved in the negotiation process. There
are various reasons because of which a negotiation fails.
Some of the reasons are as follows:
• Lack of preparation
• Ego
• Fear
• Rigidity
• Unwillingness to cooperate
• Poor negotiating skills
• Getting Emotional
Consequences of failed negotiations:
If the negotiation between the parties failed then it can lead
to various consequences on both the parties involved. Some
of the consequences are:
1. Conflict – If the talks or negotiations between the
parties failed, then it can lead to a conflict between the
parties which results in loss on the both sides.
2. Lack of Trust – Failed negotiations leads to the lack of
trust between the parties which further results in mistrust
between them in future meets.
3. Avoid further negotiations – Once a negotiation is
failed then generally parties avoid to indulge in further
negotiations in future.

52
 4. Strategic loss – Failure in negotiations can also leads
to strategic loss to the countries, governments, businesses
etc.
5. Damage to normal citizens – Like if there is a conflict
between two countries and it is not solved with negotiations
then it may cause travel ban between the countries which
has a negative impact on normal citizens.
6. Economic Loss – Failed negotiations can also lead to
economic loss to the countries and business as investors
and businessmen are not willing to invest in that particular
country.
7. Chances of Weak deal in future – As one negotiation
is failed between the parties then it may lead to a weak or
poor deal in future when both the parties meet again.

UNIT -2
GLOBAL DIVERSITY:

Global diversity refers to the range of differences that describe

the composition of a group of two or more people in a cross-

53
cultural and multi-national context. The company believes that
focusing on global diversity will allow it to adopt more inclusive
practices around the world.
Diversity allows for the exploration of these differences in a safe,
positive, and nurturing environment. It means understanding
one another by surpassing simple tolerance to ensure people
truly value their differences. This allows us both to embrace and
also to celebrate the rich dimensions of diversity contained within
each individual and place positive value on diversity in the
community and in the workforce.

54
Diversity management refers to organizational actions that aim to
promote greater inclusion of employees from different
backgrounds into an organization’s structure Corporate
Structure Corporate structure refers to the organization of
different departments or business units within a company.
Depending on a company’s goals and the industry through
specific policies and programs Bureaucracy. The system to
maintain uniform authority within and across institutions is
known as bureaucracy. Bureaucracy essentially means to rule by
the office.

Organizations are adopting diversity management strategies

Corporate Strategy Corporate Strategy focuses on how to manage
resources, risk and return across a firm, as opposed to looking at
competitive advantages in business strategy as a response to the
growing diversity of the workforce around the world.

55
In macro sense, diversity can be broadly defined in terms of
differences that occur because of race, gender, age and other
demographic factors (e.g., abilities, values, personality, cognitive
style, and even organizational function or tenure). In the micro
sense, diversity can be similarly viewed.

DIVERSITY MANAGEMENT:
Diversity management refers to organizational actions that aim to
promote greater inclusion of employees from different
backgrounds into an organization’s structure through specific
policies and programs. Organizations are adopting diversity
management strategies as a response to the growing diversity of
the workforce around the world.
Advancements in technology now allow companies to hire and
manage employees from around the world and in different time
zones. Companies are designing specific programs and policies to
enhance employee inclusion and promotion, and retention of
employees who are from different backgrounds and cultures. The

56
programs and policies are designed to create a welcoming
environment for groups that lacked access to employment and
more lucrative jobs in the past.
An organizational approach aimed at achieving better
organizational results by creating a non-discriminatory, equitable
and inclusive work environment. Diversity management plays a
significant role in the organization’s outcomes.

It is an inclusive environment that enhances the contribution of

all members to fulfil the organization’s mission. The differences in
organization are firstly recognized, understood, and valued. It is
accomplished through communication, education, retention,
mentoring, leadership, and individual accountability.

TYPES OF DIVERSITY MANAGEMENT

The following are the two types of diversity management:
1. Intranational diversity management
Intranational diversity management refers to managing a
workforce that comprises citizens or immigrants in a single
national context. Diversity programs focus on providing
employment opportunities to minority groups or recent
immigrants.
For example, a French company may implement policies and
programs with the aim of improving sensitivity and providing
employment to minority ethnic groups in the country.
2. Cross-national diversity management

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Cross-national, or international, diversity management refers to
managing a workforce that comprises citizens from different
countries.
It may also involve immigrants from different countries who are
seeking employment.
An example is a US-based company with branches in Canada,
Korea, and China. The company will establish diversity programs
and policies that apply in its US headquarters, as well as in its
overseas offices.
The main challenge of cross-national diversity management is
that the parent company must consider the legislative and
cultural laws in the host countries it operates in, depending on
where the employees live.

CHARACTERISTICS OF DIVERSITY MANAGEMENT:

1. Voluntary
Unlike legislation that is implemented through sanctions,
diversity management is a voluntary organizational action. It is
self-initiated by organizations with a workforce from different
ethnicities, religions, nationalities, and demographics. There is
no legislation to coerce or government incentives to encourage
organizations to implement diversity management programs and
policies.
2. Provides tangible benefits
Unlike in the past when diversity management was viewed as a
legal constraint, companies use the diversity strategy to tap into
the potential of all employees and give the company a competitive
advantage in its industry. It allows each employee, regardless of

58
his/her race, religion, ethnicity, or origin to bring their talents
and skills to the organization. A diverse workforce enables the
organization to better serve clients from all over the world since
diverse employees can understand their needs better.
3. Broad definition
While legislation and affirmative action target a specific group,
diversity management uses a broad definition since the metrics
for diversity are unlimited. The broad definition makes diversity
programs more inclusive and has less potential for rejection by
the members of the majority group or privileged sections of the
society.
4. Commitment from top management
Workforce diversity can succeed if it is adopted by a shared vision
within the company’s top management. The senior executives of
an organization are responsible for policy formulation, and they
can promote or eliminate workplace diversity depending on the
policies they make. When the senior management fails to show
commitment to implementing the diversity strategies, the
diversity plan becomes severely limited.
5. Identify new talent pools
In an organization where more people are leaving the workforce
than are being hired, management must immediately employ
fresh talents.
6. Make diversity part of the company’s objectives
An organization that practices workforce diversity should not shy
away from letting the world know that the organization embraces
diversity and works with people from all backgrounds. The
organization can start by encouraging and supporting its staff
59
who volunteer in different causes such as a disability walk or an
HIV/AIDs awareness forum.
APPROACHES OF DIVERSITY MANAGEMENT:
There are four typical approaches to diversity management in the
workplace. They are listed in ascending order of what I believe
diversity management should entail. In my opinion, the first
method listed is the least valuable reason for implementing
diversity management at work. The last approach is the best
reason to focus on diversity within a company.

1. Brand Image

 Desired Outcome: The purpose of this approach is to

create a brand image of being a company that values the
diversity of its employees. The focus of this approach is on
getting name recognition and awards for the company’s
diversity programs. The primary goal of this approach is to
be viewed as a benchmark company when it comes to
diversity programs. Under this scenario, it is only necessary
to achieve a perception that the company is a diverse
company. If customers, employees, vendors, suppliers,
shareholders, and the general public believe the company is
a diversity champion, and hold the organization in high
regard because of it, the diversity program can be
considered a success.

 Indicators of Success: With this approach, the focus is on

getting the company’s name in the media, obtaining
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 industry awards, and being at the top of mind regarding all
diverse issues so people accept the message that the
organization is a diverse company.

 Achieving the Desired End Result: If a message is

repeated loud enough and often enough people begin to
believe it. This approach to diversity requires a strong
marketing and public relations component to make sure the
company’s name is at the top of mind in all of the important
venues of interest regarding diversity. The key to success is
having anecdotal stories that show the company is diverse.
The more examples one can give of where the company has
provided opportunity and growth for diverse construction
companies, vendors, and employees, the better the company
brand image will be. Consequently, all one has to do is find
a few powerful success stories of diversity, share those
stories loudly and often, and the organization will be
successful in creating the desired brand image.

2. Affirmative Action

 Desired Outcome: The goal of this approach is to create a

company that truly provides equal opportunity for people of
diverse backgrounds and characteristics to be paid fairly,
promoted equitably, obtain supplier and vendor contracts,
and/or to win construction projects. It entails more than
just consideration for such things, but rather an affirmative
and aggressive desire to achieve diversity in the managerial,

61
 supplier, vendor, and construction company ranks. The goal
of this approach is to have a representative number of
people in key positions throughout the company that match
the diverse demographics of the community. Vendor,
supplier, and construction contracts must also be awarded
to a representative diverse group.

 Indicators of Success: The key to this approach is the

typical EEO approach of making sure the company has
numbers that confirm that it is affirmatively providing
opportunities for people of diversity regarding pay,
promotions, supplier contracts, and/or construction
projects. Success is achieved when the company has the
right numbers and percentages that indicate it is a diverse
company.

 Achieving the Desired Results: This is a relatively simple

approach to diversity. All it requires is identifying viable
employee, vendor, supplier, and construction company
candidates who can be hired or developed into qualified
individuals for key management positions, vendor or
supplier contracts, and/or construction projects. All that
must be done is to search for candidates in the obvious
places where they might be found (e.g.: black colleges,
suppliers from minority communities, etc.). Or, even
simpler, just identify the right diversity mix the company
wants and hire it, regardless of qualifications.

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3. Culture of Acceptance

 Desired Outcome: This approach seeks to create a

company that truly values and appreciates the diverse
nature of its workforce. It recognizes that diverse people
have different needs, different values, different
characteristics, different styles, and different desires in the
workplace; and it seeks acceptance and tolerance for these
differences in order to create a healthy and productive
workplace. The key to this approach is to get everyone to be
aware of and accept these differences in order to reduce
conflict, maximize performance, and allow each person to
reach his or her full potential by removing diversity barriers
or conflict in the workplace.

 Indicators of Success: The key to this approach is helping

everyone within the company to become more diversity-
conscious; to become aware of their personal beliefs, biases,
and actions regarding people of diverse backgrounds; and to
alter their actions in order to provide equal opportunity and
a work culture that meets the needs of every employee in
the company. It includes removing the barriers that limit
growth opportunities for certain people because of diversity
issues. It also entails creating a culture that strongly
condemns discrimination of any type in any form.

 Achieving the Desired Results: This approach requires

people at all levels of the company to become introspective
63
 and aware of their belief systems and actions regarding
diversity issues. It requires specific policies, procedures,
processes, practices, and systems that create a culture that
accepts and assertively values the diversity of its employees.
This acceptance must also lead to opportunities for diverse
people to raise their potential, be promoted, and take on
different roles and responsibilities that previously may not
have been available to them in a less diverse-sensitive
company.

4. Maximizing the Performance of All Employees

 Desired Outcome: The purpose of this approach is to

maximize the performance of each employee by removing
barriers that limit an individual’s potential, regardless of
whether those barriers are diversity issues (e.g.: race,
culture, gender, etc.) or other barriers that hinder one’s
progress (e.g.: language skills, education, work ethic, off-
purpose work behaviours, social skills, etc.). The goal is to
raise the productive output of each individual by
understanding their unique differences and overriding
whatever keeps the person from reaching his or her fullest
potential. The ultimate outcome is to get 100% from 100%
of the employees 100% of the time. Likewise, this approach
seeks suppliers, vendors, and construction companies who
can produce the desired quality products on time, on
budget, and within scope regardless of their owner or
employee demographics.

64
 Indicators of Success: The success of this approach is
witnessed when each individual within the company has
achieved the highest level of performance of which he or she
is capable. It is also signified when barriers are removed to
allow employees to go beyond what anyone had previously
believed was possible because of preconceived
insurmountable diversity issues. Success entails helping
diverse suppliers, vendors, and construction companies to
raise their productive output to a level where they are
capable of winning company contracts and successfully
delivering their goods and services as specified in the
contracts without the company lowering the requirements of
the contracts. In other words, the success of this approach
is not in lowering standards or raising people up, but in
raising a person's performance up so they are viable
candidates for future promotions and contracts regardless
of their diversity.

 Achieving the Desired Result: This approach entails a

mature and sophisticated approach to managing the
business using proper management techniques. It entails
an acceptance that diversity is a normal practice of good
management wherein managers are charged with increasing
the efficiency and effectiveness of all of their employees so
they can produce more. This approach requires good
management systems that create a productive work
environment where all employees feel comfortable,

65
 confident, proud, and included. It requires managers to deal
with employees as individuals (rather than ethnic groups,
genders, etc.) and to implement individual development
plans so every employee can overcome barriers that inhibit
the achievement of their highest potential. It also requires
working with diverse vendors, suppliers, and construction
companies who currently do not qualify as acceptable
resources to help them raise their performance capabilities
so they can qualify for contracts with the company.

5. A Fifth Approach to Diversity

In reality, there seems to be one final, higher level of diversity

management that a company could attain. But one day there will
be a time when people within the workplace no longer see
different skin tones, hear different languages, perceive different
cultures, or feel any separation in the workforce because,
instead, the workers are focused on the similarities of people at
work rather than their differences.

The problem with diversity is that it implies people are diverse.

But it is this diverseness that causes divisiveness. People
typically do not wish to associate with others who are not of their
ilk. They don’t want to sit with people with whom they cannot
communicate because of language barriers. They don’t want to
feel uncomfortable when they are confronted with different
cultures or customs. It's hard for some people to accept

66
individuals who are not like them. Diversity scares people.
Familiarity, or sameness, unites us.

STRATEGIES OF DIVERSITY MANAGEMENT:

The term "diversity" covers many complex issues. A diverse
workforce consists of people from many different backgrounds,
including a variety of economic histories, religious beliefs, racial
identities, and so on. Diversity can bring strengths to the
workplace as it allows your company to recognize and respond to
the diversity of the outside world. But it can also present
challenges.
It is easy to be overwhelmed when it comes to developing
processes and procedures to deal appropriately and positively
with diversity in the workplace. Some strategies help businesses
owners create policies that address diversity and meet the values
of the company.

1. Define the Issues

Company policies may refer to a gamut of diversity issues
including gender issues, sexual harassment, disabilities, race
and religion. While the goal is overall acceptance, inclusiveness
and equal opportunity for everyone, business leaders should
examine specific diversity issues to determine if policy changes
need to be made. Many common examples can be seen in today's
business marketplace.
One diversity policy is to offer gender-neutral bathrooms. Another
is to change applications to avoid asking a person's age in the
interviewing and hiring process.
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 2. Highlighting Personal Uniqueness
Some companies celebrate diversity days to recognize and
appreciate employee differences. Addressing the topic of diversity
is not only about the legal protections in written policies. It is
about inviting co-workers to highlight personal uniqueness to
promote acceptance and build team strength.

3. Develop Policies Adhering to Company Goals

Once the diversity issues and needs are clarified, look at the
organization's mission. Develop policies that work in unison with
the ethics and values of the company as defined in the mission
statement. Use your policy statement to emphasis the company's
commitment to diversity and recognition of the value it brings to
the firm.

For example, Northrop Grumman's vision statement says, in

part, "... to attract, develop and retain the best and brightest from
all walks of life and backgrounds." A company that seeks the
development of talent from all walks of life must have internal
training and development as part of its organization to be true to
its goals.

After the diversity policies are developed, incorporate them into

employee handbooks, onboarding documents and company
resource websites. Policies must be accessible for everyone to
review and understand.
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 4. Communicate Diversity Policies
Just because a diversity policy is developed and written doesn't
mean it has been clearly communicated. Require employees to
read and sign employee handbooks or any amendments to the
handbook. Hold mandatory company diversity training sessions
that review the policies and explain the ramifications. Provide
examples of common situations where diversity issues arise.

Some managers host one-on-one meetings with team members to

role-play and review areas that might be problematic. Not only
does training communicate the policies and the expected
behaviour, but it also explains how to communicate concerns to
management when someone feels attacked, discriminated against
or unsafe.

5. Hold People Accountable

Policies need to include ramifications, meaning disciplinary
action, for failure to follow the diversity policy. Give victims a
process to report abuses and develop a protocol to address them.
The protocol usually includes speaking with both parties before
giving a written warning and perhaps coaching to the guilty
party. If the inappropriate behaviour continues, suspension or
permanent dismissal is usually the final disciplinary action.
Some companies have levels of discipline depending on how
egregious the action is.

6. Continue to Evolve
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Diversity is not just about a positive corporate culture and
enjoyable workplace. Diversity continues to evolve through
legislation and human resource rules and laws. It is important
for employers to understand changes, adjust existing policies to
meet the evolving laws, and continue to work with employees on
new diversity issues and resolutions.

PARADIGMS OF DIVERSITY MANAGEMENT:

The benchmark study and present four paradigms to address
diversity management are:
1.The resistance paradigm
This approach translates into the organizational resistance to
change the status quo, and this attitude contributes to the
enlargement of inequality at the workplace. This means that the
employees resist to change and reject the management practices
implemented by the leadership.
2.The Discrimination and Fairness Paradigm
This approach laid the basis for the fair treatment of employees
and is aligned with the EEO (Equal opportunity) legislation. The
companies deflect attention to the recruitment of diverse
candidates, in particular, the undervalued groups, for instance,
women and ethnic minorities in the US.
3.The Access-Legitimacy paradigm
This paradigm means valuing all individual differences, thus
celebrating diversity. It can be argued that this paradigm
encompasses mainstream practices, such as talent attraction
practices, gender targets, in view of the benefits of gender
differentiation in the company, the creation of group networks etc.
70
4. The learning-effectiveness paradigm
The last approach is a combination of the previous two
paradigms, but the main difference is that the third paradigm
consists of not only seeking and valuing differences but using
them with consciousness for the broader benefits of the company,
its culture, leadership, transformation. The idea is that the
organizational efforts are ‘’committed to learning’’. This
incorporates a wide range of approaches to DM to tackle
discrimination and diversity-related issues. This “learning-
effectiveness” paradigm reflects the Resources Theory that
advocates that diverse employee should be considered as the
resources for the company.
5.Human Resource Paradigm
The Human Resource Paradigm is based on the idea that
conventional HR practices lead to what is called the Attraction-
Selection-Attrition (A-S-A) cycle. This cycle refers to the fact that
organizations have a tendency to attract individuals who seem to
have the same values of the people in the organization. Then the
selection process tends to weed out people who are different and if
any who do not fit the dominant culture end up hired, they tend
to be weeded out and resign or get fired.

6.The Multicultural Organization Paradigm

It gives a picture of an organization that is fully integrated and free

of bias and favouritism. This is a great picture and it mirrors the

learning-and-effectiveness paradigm presented by Thomas et al.

(2002), which encourages employees to learn their differences to

71
stimulate creativity and new ideas. A multicultural organization

allows for all people, whether of a minority group or not, to feel

like they are a true part of the organization. It allows for people to

have a voice and for diverse thinking to increase the creativity and

innovation within the organization.

7.Future Application
As we move forward diversity in organizations is likely to continue
to increase and this in turn increases the need for effective
diversity management. Organizations have to learn how to
effectively manage not only diverse demographics but also diverse
ideas and diverse thinking. This is the only way that they will
keep up with the necessary innovation and change needed to stay
with the competition.

Conclusion
Though the Human Resource Paradigm is a good step towards
increasing diversity and reducing barriers for members of
minority groups, it is not enough. Despite the difficulty of
reaching the multicultural organization ideal it is important that
all organizations strive towards it. It is important that
organizations look to invite diverse opinions as well as diverse
demographics, that organizations make their culture welcoming
to people of all backgrounds, and that they include them all in the
overall mission of the organization.

CROSS CULTURE COMPETENCIES:

72
Description of competences-
Cultural Competence helps to understand how and why people
think, act and do in the way they do and what they think of you.
The word culture is used because it implies the integrated
patterns of human behavior that includes thoughts,
communications, actions, customs, beliefs, values, and
institutions of racial, ethnic, religious, or social groups.
The word competence is used because it implies having the
capacity to function in a particular way: the capacity to function
within the context of culturally integrated patterns of human
behavior defined by a group.
Culture is akin to looking through the one-way mirror; everything
we see is from our own perspective. It is only when we join the
observed on the other side of the mirror, it is possible to see
ourselves and others clearly; however, getting to the other side of
the glass presents many challenges.
Cultural competence is a set of congruent behaviours, attitudes,
and policies that come together in a system, agency or among
professionals and enable that system, agency or those professions
to work effectively in cross-cultural situations.
Cultural competence referring to an ability to interact effectively
with people of different cultures comprises four components
1. Awareness of one's own cultural worldview.
Acquisition of cross-cultural awareness is closely connected with
language teaching recognizing that the aims are:

73
 to give learners intercultural competence as well as
linguistic competence; to prepare them for interaction with people
of other cultures;
 to enable them to understand and accept people from other
cultures as individuals with other distinctive perspectives, values
and behaviors;  to help them to see that such interaction is an
enriching experience.
A lack of cross-cultural awareness can result in
misinterpretations, which may cause offense.
2. Attitude towards cultural differences.
Attitudes / Beliefs presuppose that the culturally competent
individual is:
 aware of and sensitive to her/his own cultural heritage and
respects and values different heritages;
 aware of her/his own values and biases and how they may
affect perception of other cultures;
 comfortable with differences that exist between her/his
culture and other cultures’ values and beliefs;
 sensitive to circumstances (personal biases, ethnic identity,
political influence, etc.) that may require seeking assistance from
a member of a different culture when interacting with another
member of that culture.
3. Knowledge of different cultural practices and
worldviews. Knowledge is meant that the culturally competent
individual must:
 have a good understanding of the power structure in society
and how non-dominant groups are treated;

74
 acquire specific knowledge and information about the
particular group(s) she/he is working with;
 be aware of institutional barriers that prevent members of
disadvantaged groups from using organizational and societal
resources.
4. Cross-cultural skills. Skills accept that the culturally
competent individual can:
 Generate a wide variety of verbal and nonverbal responses
when dealing with difference.

 Send and receive both verbal and nonverbal messages (body

language) accurately and appropriately.
 Exercise intervenes appropriately and advocate on behalf of
people from different cultures.
Besides these four components we should aware that as one goes
through the cycle of adjustment in a new culture, her/his cultural
competence increases in accordance with certain adjustment
stages:
 Unconscious incompetence. At this stage, you are unaware
of culture differences. It does not occur to you that you may be
making mistakes or that you might be misinterpreting much of
the behaviour going on around you.
 Conscious incompetence. You now realize there are
differences between how you and local people behave, though you
understand very little about these differences, how numerous
they might be, etc.
 Conscious competence. You know cultural differences exist,
you know what some of those differences are, and you adjust your

75
behaviour accordingly. You have to make a conscious effort to
behave in culturally appropriate ways.
 Unconscious competence. You no longer have to think about
what you’re doing in order to do the right thing. It takes little
effort for you to be culturally sensitive.
Thus, it is apparent that personal awareness, knowledge of other
cultures, and application of that knowledge are necessary
elements of cross-cultural competence.
Operationally defined, cultural competence is the integration and
transformation of knowledge about individuals and groups of
people into specific standards, policies, practices, and attitudes
used in appropriate cultural settings to increase the quality of
services; thereby producing better outcomes

MANAGING GLOBAL TRANSITIONS:

Managing Global Transitions (MGT) is a quarterly, scholarly
journal that covers diverse aspects of transitions and welcomes
research on change and innovation in increasingly digitalized and
networked economic environments, from a societal,
organizational, and technological perspective. MGT fosters the
exchange of ideas, experience and knowledge among developed
and developing countries with different cultural, organizational
and technological traditions. MGT invites conceptual, theory-
development, empirical and review papers and case-based
studies advancing the field of transitions in societies,
organizations and technologies.
1. Transitions in Societies

76
• Geo-political transitions, transition experiments, pathways
and mechanisms
• Social, demographic, cross-cultural, ethical, geo-political
and security aspects of transitions
• Social change, prosperity, wellbeing, happiness
• Policy making, government regulation, social responsibility
• Knowledge-based society and world futures
• New and emerging metrics for measuring, assessing and
evaluating societal transitions
2. Transitions in Organizations
• Organizational analysis and design, modelling,
developments and changes in organizational learning and
behaviour
• International strategy and strategic alliances, networked
businesses and operations
• Entrepreneurship and leadership, decision making
• Knowledge sourcing and innovation management, personal
development, education and training, hrm
• Business systems and business models
• Connective intelligence and collective intelligence in
organizational behaviour Transitions in Technologies
• Managing technological/organizational change and
innovation
• Technology networks, technology trans-fer benefits and
risks, technology acquisition and diffusion
• Smart technologies and development discontinuities,
renewable sources and sustainability

77
• Digitalization, iot, ict, cybernetics, forecasting
• Technological traditions, strategic sur-prise and response
systems
• Studies that promote understanding of the dynamics of
socio-technical systems change
• Science and technology policy that fosters transformative
advancement
• Modelling technological change in vuca(volatile, uncertain,
complex, ambiguous) environments

For example, a maximiser may search extensively to find the best

camera by browsing many different consumer reports and
product features before selecting. On the other hand, a satisfier
would be less likely to investigate as many products, and more
likely to select the first product that meets their minimum
standards. Because of their intensive search, maximiser
sometimes experience negative psychological outcomes
associated with a decision because they may look at what could
have been done differently. This ‘grass is greener on the other
side of the fence’ philosophy may cause maximiser to be less
happy with their decision outcomes.

COPING WITH TRANSITIONAL CHALLENGES:

Increasingly we interact with people who are very different from
us, or in situations that are unfamiliar. Even when we share a
common nationality, we may have to deal with citizens who are
indeed "foreign" to us in their thinking, attitudes, vocabulary,
and background. Individuals may face challenges within their
78
environment due to their upbringing or local cultural
conditioning. Such transitional trials present opportunities for
growth or disruption. Such experiences can include married
couples who divorce, families who move from one geographic area
to another, those who change careers in midlife •or have major
alterations in jobs or roles.
To get a sense of transitional experience that can cause cultural
shock consider the following scenarios.
1. Majority to Minority Culture:
Your company transfers you and your family to a section of
your country where you feel like an "immigrant." From the
Northeast you come to this Sunbelt state that is so different
and unique. Your boss suggests you enrol at the local
university to take a course entitled, to introduce you to the
myths and mannerisms of Texans. The course teaches
newcomers how to adapt to this former republic, rather than
be considered "people from the outside." Texas is a state of
contrasts from huge ranches and high technology to Bible-belt
attitudes and laws. The course covers everything from "Talking
Texas" and Texas cooking to the Mexican side of the Texas
revolution and Texas folk heroes. If you can adapt, you will
probably fall in love with these friendly people, their jalapefio
lollipops, and chili pepper dishes, and even discover their
diverse ethnic mixture and the "Austin sound" of music.
2. Transitions in the Global Marketplace:
You are a North American marketing consultant for high-
technology companies worldwide. Because of your expertise,
you are in much demand to travel beyond

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FOSTERING ACCULTURATION:
Acculturation is a process through which a person or group from
one culture comes to adopt the practices and values of another
culture, while still retaining their own distinct culture. This
process is most commonly discussed regarding a minority culture
adopting elements of the majority culture, as is typically the case
with immigrant groups that are culturally or ethnically distinct
from the majority in the place to which they have immigrated.

However, acculturation is a two-way process, so those within the

majority culture often adopt elements of minority cultures with
which they come into contact. The process plays out between
groups where neither is necessarily a majority or a minority. It
can happen at both group and individual levels and can occur as
a result of in-person contact or contact through art, literature, or
media.
Acculturation is a process of cultural contact and exchange
through which a person or group comes to adopt certain values
and practices of a culture that is not originally their own, to a
greater or lesser extent. The result is that the original culture of
the person or group remains, but it is changed by this process.
When the process is at its most extreme, assimilation occurs
wherein the original culture is wholly abandoned and the new
culture adopted in its place. However, other outcomes can also
occur that fall along a spectrum from minor change to total

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change, and these include separation, integration,
marginalization, and transmutation.
TEN TIPS/ RECOMMENDATION THAT HELPS TO DEFLATE
THE STRESS AND TENSION OVERSEAS WHILE ADVANCING
SUCCESSFUL ACCULTURATION:
1.Be Culturally Prepared:
Forewarned is forearmed. Individual or group study and training
are necessary to understand cultural factors and cultural
specifics. Public libraries provide a variety of material about a
particular culture and nationality. The public health service can
also advise about required inoculations, dietary clues, and other
sanitary data.
Before departure, experiment with the food or restaurants
representative of the second culture. Furthermore, establish
contact in your homeland with foreign students or visitors from
the area to which one is going).

2.Learn Local Communication Complexities:

Study the language of the place to which you are assigned. At
least, learn some of the basics that will help in exchanging
greetings and shopping. In addition to courses and books on the
country, cassettes can advance one's communication skills host
culture. Published guides can be helpful in learning expected
courtesies and customs.
3.Interact with the Host Nationals:
Meeting with people from the country you are going to is helpful.
They may provide introductions to relatives and friends and
information regarding their native culture. If you live within a
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company or military colony, avoid the "compound mentality."
Immerse yourself in the host culture. Join in, whenever feasible,
the artistic and community functions, the carnivals and rites, the
international fraternal or professional organizations. Offer to
teach students or business people one's language in exchange for
knowledge of their language; share skills from skiing to tennis
and it will be the means for making new international friends.
4.Be Creative and Experimental:
Innovations abroad may mean taking risks to get around
barriers of bureaucracy and communication in order to lessen
social distance. This principle extends from experimenting with
the local food to keeping a diary as an escape to record one's
adventures and frustrations. Tours, hobbies, and a variety of
cultural pursuits can produce positive results. One needs to be
open and existential to the many opportunities that will present
themselves.

5.Be Culturally Sensitive:

Be aware of the special customs and traditions which, if followed
by a visitor, will make one more acceptable. Recognize that in
some cultures, such as in-Asia and the Middle East, saving face
and not giving offense is considered important. Certainly, avoid
stereotyping the natives, criticizing their local practices and
procedures, while using the standard of one's own country for
comparison purposes. Americans are pragmatic and generally
like to organize, so it may be a challenge for them to relax and

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adjust to a different rhythm of the place and people they are
visiting.
6.Recognize Complexities in Host Cultures: Counteract the
tendency to make quick, simplistic assessments of situations.
Most complex societies comprise different ethnic or religious
groups, stratified into social classes or castes, differentiated by
regions pr geographical factors, separated into rural and urban
settlements. Each of these may have distinct subcultural
characteristics over which is superimposed an official language,
national' institutions, and •peculiar customs or history that tie
this people together. •Avoid pat generalizations and quick
assumptions. Instead, be- tentative in one's conclusions) realizing
one's point of contact is a limited sample, within a multifaceted
society.
7.Understand Yourself as a Culture Bearer. Everyone bears his
or her own culture, and distortions when going abroad, and thus,
views everything in the host culture through a unique cultural
filter, For example, if one is raised in. democratic traditions, a
society that values the authority of the head male in the family
and extends this reverence to national leaders may be unsettling.
8.Be Patient, Understanding, and Accepting of Self and
Hosts:
In an unfamiliar environment, one must be more tolerant and
flexible. An attitude of healthy curiosity, a willingness to bear
inconveniences, patience when answers or -solutions are not
forthcoming or difficult to obtain, are valuable to maintain mental
balance. Such patience may also extend to other-compatriots
who struggle with cultural adjustment.

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9.Be Most Realistic in Expectations. Avoid overestimating
yourself, your hosts, or the cross-cultural experience.
Disappointments can be lessened if one scales down
expectations. This applies to everything from airline schedules to
renting rooms. Global managers, especially, must be careful in
new cultures not to set unreasonable work expectations for
themselves or others until both are acclimated.
10.Accept the Challenge of Intercultural Experiences.
Anticipate, savour, and confront the psychological challenge to
adapt and change as a result of a new cross-cultural opportunity.
Be prepared to alter your habits, attitudes, values, tastes,
relationships, or sources of satisfaction.

RELOCATION:
Meaning of Relocation
When a company moves an existing facility and some of its
personnel to another site it is known as relocation. When
personnel move overseas it can be an entirely new culture,
location, climate, lifestyle and daily routine waiting for them. This
can offer a new adventure and experience to them, it can also
give some tough challenges.
Before moving to a new country, research can provide personnel
and his family with a good grounding of what to expect when he
arrive. Talking to other expats already in the host location can be
a valuable source of tips and advice.
Challenges of Relocation:
1. Language & Culture

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If a foreign language is spoken in your new location, then
consider starting language classes before you make the move.
You may find you have more time before you leave for your
overseas posting than once you are on seat and busy arranging
other aspects of settling in. This also eases the transition on
arrival, particularly if you are able to read local road signs and
greet local people. In addition to language training, cultural
training can also give you a head start with adaptation and
integration in your new setting.
2. Housing
Housing can be a surprising challenge for expatriates. Firstly,
determining a neighbourhood requires effective research and
planning. Consider where the amenities that you want access to
are located and ask yourself whether you want to live in an expat
neighbourhood or a local residential area.
For security reasons maybe you have little choice about where
you live, but otherwise think ahead in terms of the area you
choose so that you do not feel isolated a few months into your
assignment, or find yourself a long way out from social activities
and facilities. Planning and research may also reduce your time
in temporary accommodation, which can be particularly
challenging with a family in tow.
3. Schooling
Finding the right school for your children is potentially one of the
most difficult aspects of expat life and Expat Finder has a range
of articles to help you. In short, consider the length of the expat
assignment, the curricula, the local language and cultural
aspects Today there is a vast movement of people from one nation

85
to another to study and work. Therefore, intercultural are
increasing. The issue, then, is how can these transcultural
interchanges be facilitated for the benefit of both the expatriate
and the indigenous population.
4. Social Integration
Life as an expat can be difficult in terms of social interaction. If
you and your family are often on the move, taking on overseas
assignments for a couple of years at a time, it can be difficult to
form long lasting friendships. However, generally, expat
communities are lively and active, in which clubs together to offer
support, organise events and create a little piece of home
overseas. Volunteer organisations are also a way of giving back to
the local community, whilst meeting others.
5. Resistance to Change
Humans are typically creatures of habit and they will tend to fall
into routines and rhythms, maintaining them until an external
force prompts a change in behaviour. When that external force
arrives, it will be resisted for a variety of reasons, but chief
among them will tend to be:
• Loss of control
The feeling of losing control might be limited to an employee’s
role but can also extend beyond the workplace, with relocation
potentially having a direct impact on commute times and,
subsequently, time available to spend on personal activities or
with friends and loved ones.
Perceived feelings of loss of control can be negated by offering
choice to the affected employee(s). Simple gestures, such as

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introducing flexible working, can help an individual feel as
though they are still in control.
• Increased work
Change inevitably means work for everyone involved. Procedures
and protocols that worked in one location won’t necessarily
transpose to another without adaptation and modification.
Again, involving a workforce in finding solutions to these issues
can mean that the solution is the best available (based on
collective knowledge) and that those who have to implement it are
accountable to themselves and not resentful of having a process
imposed on them.
6. Compliance Issues
Sometimes, your employees just don’t want to move. They might
have a spouse or family who doesn’t want to/can’t move. It may
be because they’re attached to their city or neighbourhood, or
they don’t want to leave friends and connections behind.
Sometimes legal issues may stop an employee from being able to
relocate. For example, a divorced parent may be under
restrictions about where they can move children.
7. Communication
Your employees are invested in their work and in they don’t want
to be kept in the dark when it comes to an office move. Tell your
employees about the move as soon as possible, and keep them up
to date on it. Some employees will want to be part of the process.
Assuring them that everything is going smoothly, and that the
moving company is keeping their things organized and safe will
help them be comfortable with the moving process.
8. Relocation Costs
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If an employee has to move cities, they may have lot of expenses,
including those incurred while selling and buying a home,
moving furniture and belongings, and staying in a temporary
residence.
To make the move easier on their employees, most companies will
work something out to help employees cover expenses, whether
through a relocation package or negotiations. But this means an
added expense for the business. In fact, in a 2015
survey, Cartus reported that 78% of employers thought cost
control was their biggest challenge when it comes to employee
relocation.

STAGES OF RELOCATION / DEPLOYMENT

Behavioural scientists have now begun to investigate the whole
phenomenon of people living and working in isolated and
confined environments. The latter range from offshore oil rigs and
polar research stations to undersea submarines and space
stations.

1.Relocation: Stage One—Personal and Program Assessment:

The first major component in a relocation or foreign deployment
system involves evaluating individuals who are sent abroad and
evaluating the organizational program responsible for the transfer
and re-entry process. From the perspective of the organizations'
responsibilities, a complete foreign deployment system should:
1. Ascertain the adaptability of key personnel for foreign
service, including their ability to deal with the host nationals
effectively.
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2. Summarize a psychological evaluation of the candidate's
skills in human relations within an intercultural context as well
as the candidate's ability for coping with changes and differences;
the candidate's susceptibility to severe culture shock.
3. Identify specific physical and intellectual barriers to
successful adjustment in the foreign environment, if possible, to
correct any deficiencies,
4. Highlight any specific technical or management factors that
need strengthening before the cross-cultural assignment.
5. Find out any family problems or situations that would
undermine
6. Provide this assessment for top and middle management
personnel on a priority basis, then supervisors and foremen, and
finally, technical and hourly employees.
7. Provide a special review of individual suitability for foreign
deployment in remote sites with limited input and support
services.

8. Adapt the process to meet the needs of foreign nationals

brought on assignment to domestic operations.
9. Interview candidates for foreign deployment with questions
by psychologist and international personnel specialists.
10. Provide group meetings for candidates, including
employees who have host country nationals, to study
interactions and determine suitability of prospects.
11.Use instruments for data gathering about the candidates'
attitudes and competencies regarding change, intercultural
knowledge and relations; and communication skills. These
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 may involve commercial or homemade questionnaires,
inventories, checklists, and culture shock tests.
12.Use one-way mirrors, closed circuit television, simulation
games, and other educational or personnel technology as a basis
for observations.
The assessment process should provide the candidate with
factual information about the host country and assignment.
Having seen films, slides, or videotapes of the onsite situation,
and having discussed the salary adjustment, housing
provisions, tax problems, and other such realities, the
candidate should be given the opportunity to choose. This may
result in the candidate refusing the foreign assignment.

2.Relocation stage two- Employee Orientation and Training:

The second component in a foreign deployment system is some
type of self-learning/training about the culture. The content can
include learning modules on cross-cultural communications and
change, understanding culture and its influence on behaviour,
culture shock and cross-cultural relations, improving
organizational relations and intercultural effectiveness. In the
general program for increasing cultural awareness, several
alternatives are possible.
Another approach to replace or supplement formal group
instruction is individualized learning packages for the employee
and their family. This is a programmed learning and media
instructional system on cultural differences in general, and for
the specific country to be visited. Such a self- instructional

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program could be used at home with one's family. It might also
serve as a preparation for classroom instruction.
We would like to summarize current thinking on this second
stage of foreign deployment in the form of some recommendations
for orienting employees.
Phase One—General Culture/Area. orientation
In the second stage of foreign deployment, we recommend the
following four-phase approach to orientation.
1. Become culturally aware of the factors that make a
culture unique, and the characteristics of the home
culture that influence employee behaviour abroad.
2. Seek local cross-cultural experience and engage in
intercultural communication with microcultures within
the homeland so as to sensitize oneself to cultural
differences.
3. Foster more cosmopolitan attitudes in the family, and
counteract ethnocentrism—cook national dishes of other
countries, attend cultural weeks or exfilflis of foreign or
ethnic groups.
Phase Two- Language Orientation
1. Undertake 60 to 80 hours of formal training in the language
of the host country.
2. Supplement classroom experience with 132 to 180 hours of
self-instruction in the language—listen to audio cassettes or
records in the foreign tongue, read newspapers, magazines, or
books in the new language, speak to others who have this
language skill, listen to music in the language.
3. Build a 500-word survival vocabulary.

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4. Develop specialized vocabularies for the job marketplace, etc.
5. Seek further education in the language upon arrival in the
host country.
6. Practice the language at every opportunity, especially with
family members.
Phase Three—Culture Specific Orientation: Training and
Learning
1. Learn and gather data about the specific culture of the host
country.
2. Understand and prepare for "culture shock”.
3. Check out specific company policies about the assigned
country, relative to allowances for transportation, housing,
education, expense accounts, and provisions for salaries,
taxes, and other fringe benefits including medical service and
emergency leave.

Obtain necessary transfer documents (passports, visas, etc.),

and learn customs policies and regulations, as well as
currency restrictions, for entry and exit.
4. Interview fellow employees who have returned from the host
country. Get practical information about banking, shopping,
currency, climate, mail, and law enforcement.
Phase Four—Job Orientation: Information Gathering
1. Obtain information about the overseas job environment and
organization.
2. Be aware of the government's customs, restrictions, and
attitudes regarding the corporation or project.

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 3. Arrange for necessary technical training to assure high
performance abroad.

3.Stage 3- Support Service- On site Support and Monitoring:

Once employees have been recruited, selected, trained, and
transported abroad, the personnel responsibility should be to: (a)
facilitate their integration into a different work environment and
host culture; (b) evaluate their needs and performance; and (c)
encourage morale and career development. Toward the end of the
person's tour of duty, the HRD department should assist in an
orderly transition to the home culture and the domestic
organization.
Three formal, steps that the organization's human resource
development staff might take abroad are:
1. An adjustment survey—approximately three 'to. six
months after arrival, request the employee to supply feedback on
the foreign deployment situation.. The survey should be
completed with other family members. Greater cooperation and
authenticity might be forthcoming if on-site management does
not have access to the individual responses. A second
administration of the inquiry form might be considered twelve or
eighteen months after arrival, or just prior to completing the
assignment.
2. Data analysis and reporting—The information is analysed
from two viewpoints: individual need and foreign deployment
policies and practices. The material would be analysed for the
identification of problems and the recommendation of solutions.

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Reporting enables back-home management to monitor its foreign
deployment system.
3. Organisational communication- to counteract alienation,
loneliness, and feelings of being “cut off” an organisation must
establish communication links with its representative abroad.

4. Stage 4 – Re-acculturation- Re-entry Program:

The last component in the foreign deployment system involves
reintegrating the expatriate into the home society and domestic
organization. For a person who has been abroad for some time,
the homeland and the organizational culture have changed in
the meantime. The re-entry process begins overseas with the
psychological withdrawal that the expatriate faces with
returning home. Upon return, re-entry shock may occur for six
months or more, as the person struggles to readjust to the
lifestyle and tempo of the changed and organizational cultures.
Apart from the challenge of re-establishing home and family life
is the issue of reassignment in the parent company or agency.
For many expatriates, it is a time of crises and trauma, the last
stage of the culture shock process. The experience abroad for
those who are sensitive and who got involved in the host culture
can be profound. It may cause many people to re-examine. their
lives, values, attitudes; to assess how they became what they
are. It prompts others to want to change their life-style. The re-
entry home becomes the opportunity to carry out these
aspirations. Individuals are not satisfied to return to old
neighbourhood, old friends, or the same job or company
affiliation. Many wish to apply the new self-insights, and to seek

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new ways of, personal growth. The organization that sent them
abroad in the first place should be empathetic to this reality,
and be prepared to deal with it.
The foreign deployment system is incomplete unless it helps
returning employees to fit into the home culture and
organization. The deployment system may involve group
counselling with personnel specialists, psychologists, and
former expatriates.
However, expatriates coming back from an overseas assignment
are a valuable resource. The corporation can learn much from
their cross-cultural experience.

LEADERSHIP AND CULTURAL SYNERGY:

Meaning of synergy:
Synergy is the concept that the combined value and
performance of two companies will be greater than the
sum of the separate individual parts. Synergy is a term
that is most commonly used in the context of mergers
and acquisitions (M&A). Synergy, or the potential
financial benefit achieved through the combining of
companies, is often a driving force behind a merger.
Synergy is cooperative or combined action. It can
occurrence when diverse or disparate groups of people
work together. The objective of synergy is to increase
effectiveness by sharing perceptions, insights, and
knowledge. The complexity and shrinking of today’s
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world literally force people to capitalize on their
differences.
 Synergy is the concept that the value and
performance of two companies’ combined will be
greater than the sum of the separate individual
parts.
 If two companies can merge to create greater
efficiency or scale, the result is what is sometimes
referred to as a synergy merge.
 The expected synergy achieved through a merger
can be attributed to various factors, such as
increased revenues, combined talent and
technology, and cost reduction.
 In addition to merging with another company, a
company can also create synergy by combining
products or markets, such as when one company
cross-sells another company's products to increase
revenues.
 Companies can also achieve synergy between
different departments by setting up cross-
disciplinary workgroups in which teams work
cooperatively to increase productivity and
innovation.

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For example, a "high-synergy corporation" is one in
which employees cooperate for mutual advantage
because the customs and traditions of the corporation
or organization support such behaviour. In this, non-
competitive atmosphere the individual works toward
his or her betterment as well as that of the group.
Personnel work to ensure that mutual benefits are
derived from their common undertakings.
The following phrases, which have been taken from
many sources, have been used to describe cultural
synergy:
1. It represents a dynamic process.
2. It involves adapting and learning.
3. Synergy involves joint action of discrete agencies in
which the total effect is greater than the sum of their
effects when acting independently.
4. It has the goal of creating an integrated solution.
5. Cultural synergy does not signify compromise, yet in
true synergy nothing is given up or lost.
6. Cultural synergy is not something people do, rather
it is something that happens while people are doing
something else that often has little to do with culture.

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SPECIFIC SITUATIONS WHEN SYNERGY IN
ORGANIZATIONAL CULTURE IS MOST DESIRABLE:
1. Acquisition: Whenever a corporation acquires or merges
with another entity domestically or internationally, synergy
skill is required. For organizational effectiveness, there must
be a synthesis of two distinct microcultures, not just an
imposition by the more powerful company. This is
particularly true in the case of a newly acquired subsidiary.
The executives from the parent company can do much to
facilitate the integration process if they will take. time to
analyze the subsidiary's culture by the ten parameters cited
in the previous section. Furthermore, this merger of two
organizational worlds and climates can 'be aided •when
management from the acquired firm shares its distinct
culture with the other, helping them to understand policy,
procedures, and processes, as well as corporate goals,
attitudes, and strategies.
2. Relocation: When a company moves an existing facility and
some of its personnel to another site, at home or abroad,
synergistic efforts must be undertaken. Such relocation
services by the corporation must go beyond moving and new
community information as employees require orientation to
the realities and opportunities of the new cultural
environment. "Culture shock" can be reduced within one's
own country or overseas. Furthermore, corporate
management must cooperate with local officials so that the
influx of people and money is planned and controlled and
the new facility is a welcome addition to the community.

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3. Structured/ Environmental Change: When there is a
major alteration within the organizational structure or
environment, employees should be prepared for the new
shift in policy, procedure, product, or service. Planned
change strategies can be used to ready personnel for
reorganization and renewal without abrupt disruption of the
work climate. Sometimes the necessary changes are
dictated by competition or growth.
4. Personnel Change: Whenever the composition of a
workforce shifts, planned endeavours are needed to
integrate the new employees. In addition to hiring large
numbers of women and minorities, there are many diverse
cultures represented in today's workforce.
5. Role Change: The introduction of new technology into an
organization usually means that personnel roles and
relationships change. In the traditional industrial-age
corporation, work disciplines, units, and departments were
fairly stable and separate. But in complex, post-industrial
organizations the divisions between line and staff are fluid.
New interpersonal skills are required that enable personnel
to form quick, intense organizational relations of a
cooperative, mission-oriented nature.
6. Consortium: If an organization does not have the natural,
material, or human resources to undertake an endeavour, it
must move outside its own orbit to seek partners who will
join for their mutual benefit. Synergy is required for a
combination of institutions to pool their talent and capital
for a successful operation. This approach has brought

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 together different companies from the same or several
industries, from the same or -many nations.
7. Global Consulting: Whenever a group of "experts" enters
the organizational synergistic skills are necessary.
Knowingly or not, the representatives from -a consulting
group merge their organizational culture into the client's
environment. When such assistance is rendered on an
international scale, the intervention may also include two or
more national cultures. Consultants should attempt to
integrate themselves into the organizational culture.

CROSS-CULTURE CONFLICT:
Cross-Conflict is competition by groups or individuals over
incompatible goals, scarce resources, or the sources of power
needed to acquire them. This competition is also determined by
individuals’ perceptions of goals, resources, and power, and such
perceptions may differ greatly among individuals. One
determinant of perception is culture, the socially inherited,
shared and learned ways of living possessed by individuals in
virtue of their membership in social groups. Conflict that occurs
across cultural boundaries thus is known as cross cultural
conflicts.
Understanding the impact of cultural difference is especially
important for analysts or practitioners of conflict resolution who
work in intercultural contexts, since culture affects many of the
communicational or interlocutory processes that lie at the heart
of most conflict resolution techniques.

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By definition, conflict occurring between individuals or social
groups that are separated by cultural boundaries can be
considered “cross-cultural conflict.” But individuals, even in the
same society, are potentially members of many different groups,
organized in different ways by different criteria: for example, by
kinship into families or clans; by language, religion, ethnicity, or
nationality; by socioeconomic characteristics into social classes;
by geographical region into political interest groups; and by
education, occupation, or institutional memberships into
professions, trade unions, organizations, industries,
bureaucracies, political parties, or militaries. The more complex
and differentiated the society the more numerous are potential
groupings. Each of these groups is a potential “container” for
culture, and thus any complex society is likely to be made up
various “subcultures,” that is of individuals who, by virtue of
overlapping and multiple group memberships, are themselves
“multicultural.” This means that conflict across cultural
boundaries may occur simultaneously at many different levels,
not just at the higher levels of social grouping—for example,
those that separate “American” from “Japanese” cultures.
Another example from cross-cultural research is that of national
delegations to international treaty conferences made up of
different specialists: diplomats, lawyers, scientists and engineers.
Although it might be expected that differences in “national
negotiating styles” will be important elements in delegates’
communication with each other, in fact for any particular issue
under discussion, the scientists and engineers may more easily
converse with each other “across the table” than they do with

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fellow nationals on their own side. What links them in this case
are the shared presuppositions of their professional subculture,
resulting from the commonalities of educational, occupational, or
professional socialization to careers in science or engineering.

CROSS CULTURE CONFLICTS IN GLOBAL ORGANISATION:

Global managers are often confronted with many issues in
managing the global workforce. This is due to the fact that,
employees across borders have their own cultures that may affect
the business operation and performance. Some of the known
cultural issues and barriers that hinders cultural adaptation are
mentioned as follows:
1. Parochialism
People might think that organizations from the country where
they originate operates with the same scope of responsibilities
and operation with the international businesses that they are
newly engaging in. But the reality is, the international business
operation has wider scope and responsibilities than domestic
corporations and the social system is different from the previous
organization. So, the employees tend to be narrow- minded and
they failed to realize the differences between their own culture
and other cultures and remain to behave with their own culture
over the new culture brought by internationalization. And, they
perceived the insignificance of their culture and the new culture
resulting to non-recognition of the new culture.
2. Individualism

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Many workers become individualistic rather than collective. So,
the idea of teamwork seems difficult to attain because the
employee don’t aspire to be a team builder but the attitude is
more inclined on self-interest and self- gratification. Hence, they
are guided by the saying that “self-first before others”.
3. Ethnocentrism
Another issue that poses barrier to cultural acceptance is the
idea of ethnocentrism. This holds the fact that employees from
their homeland tend to apply their own culture to the
international environment and workplace. They always believed
that the culture, conditions, and working environment in their
country is far better than the new environment which hinder
them to adapt the new culture. Moreover, their judgment and
perception are based on self-criterion that eventually affects
negatively their productivity and performance. So, the need to
understand other culture and temporarily forget the native
homeland’s culture.
4. Cultural Distance
Cultural distance plays an important role in assessing the
amount of cultural adaptation that employees can achieve in
moving from homeland to another country. Cultural distance
impacts the feedback and responses of employees in the
business. The difficulty of employees to distinguish the
homeland’s culture to the new culture signifies the higher degree
of cultural distance that might result to being ethnocentric. So,
managing this problem is important to erase cultural barriers.
5.Culture shock

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 Culture shock can be described as a condition that employees
experienced by having the difficulty to adapt the new culture
because of insecurities and disorientations facing totally different
culture (Chaney & Martin, 2011). Employees might not know how
to react or respond to the conditions. They lose self- confidence
and may emotionally be upset. Although it is a universal
condition, many people are struggling much that may result for
others to isolate themselves or even plan to go back home
because they have not overcome their fears and insecurities.
Some of the reasons for cultural shock can be derived from the
following: different management philosophies; language; food,
dress, driving patterns; attitude towards work and productivity;
separation from friend and colleagues; and others.

ROLE OF SYNERGY IN RESOLUTION OF CROSS CULTURE

CONFLICTS:
There are a number of steps that the organization can
undertake to prevent cultural shock and reduce the impact of the
other barriers listed above. Some of them are given below
1. Careful selection
Employees can be selected who are low in ethnocentrism and
other possibly troublesome characteristics. The desire to
experience other culture and live in another nation and learning
the attitude of employees spouse towards the assignment may
also be an important prerequisite attitude worth assessing.
2. Compatible assignments

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The adjustment to new country becomes easy for the employees
especially on their first international assignment, if they are sent
to the countries that are similar to their own.
3. Pre-departure training
Many organizations try to hasten adjustment to a host nation by
encouraging employees to learn local language. They offer
training prior to assignments. It often includes orientation to the
geography, customs, culture and political environment in which
the employees will be living.

4. Orientation and the support

In the new country Adjustment is further encouraged after
arrival in the new country if there is a special effort made to help
the employee and family get settled, this may include assistance
with housing, transportation and sopping. It is especially helpful
if a mentor can be assigned to ease the transition.
5. Incentives and guarantees
Another problem that can arise when employees transfer to
another culture is that their need satisfactions are not as great as
those of comparable employees who remain at home. Although a
move to another nation may be an exciting opportunity that
provides news challenges, responsibilities, and recognition, an
international job assignment may bring about financial
difficulties, inconveniences, insecurities, and separation from
relatives and friends. In order to motivate such employees to
accept such assignments in other nations, organizations
frequently should give them extra pay and fringe benefits to
compensate for the problems they may experience. They should

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also be assured for better position in the organization upon their
return to the home country, which could help them to relieve
their job insecurities.
6. Preparation for re-entry
Employees who return to their home country after foreign
assignment tends to suffer cultural shock in their own country.
This is sometimes called cross-cultural re-entry, and may cause
reverse cultural shock. After adjusting to the culture of another
nation and enjoying its uniqueness, it is difficult for employees to
readjust to the surroundings of the home country. This situation
is made more difficult by the multitude of changes that have
occurred since they departed.

LEADERSHIP:
Leadership
• Leadership is a process by which an executive can direct,
guide and influence the behaviour and work of others towards
accomplishment of specific goals in a given situation.
• Leadership is the ability of a manager to induce the
subordinates to work with confidence and zeal.
• Leadership is the potential to influence behaviour of others.
It is also defined as the capacity to influence a group towards the
realization of a goal. Leaders are required to develop future
visions, and to motivate the organizational members to want to
achieve the visions.
• According to Keith Davis, “Leadership is the ability to
persuade others to seek defined objectives enthusiastically. It is

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the human factor which binds a group together and motivates it
towards goals.”

Characteristics of Leadership
• It is an inter-personal process in which a manager is into
influencing and guiding workers towards attainment of goals.
• It denotes a few qualities to be present in a person which
includes intelligence, maturity and personality.
• It is a group process. It involves two or more people
interacting with each other.
• A leader is involved in shaping and moulding the behaviour
of the group towards accomplishment of organizational goals.
• Leadership is situation bound. There is no best style of
leadership. It all depends upon tackling with the situations.
Significance and Importance of Leader:
• Initiates action- Leader is a person who starts the work by
communicating the policies and plans to the subordinates from
where the work actually starts.
• Motivation- A leader proves to be playing an incentive role
in the concern’s working. He motivates the employees with
economic and non-economic rewards and thereby gets the work
from the subordinates.
• Providing guidance- A leader has to not only supervise but
also play a guiding role for the subordinates. Guidance here
means instructing the subordinates the way they have to perform
their work effectively and efficiently.

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• Creating confidence- Confidence is an important factor
which can be achieved through expressing the work efforts to the
subordinates, explaining them clearly their role and giving them
guidelines to achieve the goals effectively. It is also important to
hear the employees with regards to their complaints and
problems.
• Building morale- Morale denotes willing co-operation of the
employees towards their work and getting them into confidence
and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their
abilities as they work to achieve goals.
• Builds work environment- Management is getting things
done from people. An efficient work environment helps in sound
and stable growth. Therefore, human relations should be kept
into mind by a leader. He should have personal contacts with
employees and should listen to their problems and solve them.
He should treat employees on humanitarian terms.
• Co-ordination- Co-ordination can be achieved through
reconciling personal interests with organizational goals. This
synchronization can be achieved through proper and effective co-
ordination which should be primary motive of a leader.

TRANSFORMATIONAL LEADERSHIP
Transformational leadership is a leadership style that can inspire
positive changes in those who follow. Transformational leaders
are generally energetic, enthusiastic, and passionate. Not only
are these leaders concerned and involved in the process; they are

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also focused on helping every member of the group succeed as
well.
Through the strength of their vision and personality,
transformational leaders are able to inspire followers to change
expectations, perceptions, and motivation to work towards
common goals.
Components/Behaviour of Transformational leadership:
• Intellectual Stimulation – Transformational leaders not
only challenge the status quo; they also encourage creativity
among followers. The leader encourages followers to explore new
ways of doing things and new opportunities to learn.
• Individualized Consideration – Transformational
leadership also involves offering support and encouragement to
individual followers. In order to foster supportive relationships,
transformational leaders keep lines of communication open so
that followers feel free to share ideas and so that leaders can offer
direct recognition of the unique contributions of each follower.
• Inspirational Motivation – Transformational leaders have a
clear vision that they are able to articulate to followers. These
leaders are also able to help followers experience the same
passion and motivation to fulfil these goals.
• Idealized Influence – The transformational leader serves as
a role model for followers. Because followers trust and respect the
leader, they emulate this individual and internalize his or her
ideals.
Effects of Transformational Leadership:
Positive Effects-
1. It allows for quick formulation of a vision.
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This approach stands out from other leadership styles in its
ability to quickly assess an organization’s current situation and
formulate a vision for its improvement and growth.
Transformational leaders communicate their visions properly to
other leaders in their organizations and to all the employees to
get everyone on board. This would help them deal with
challenging situations, as all people can see the big picture.
2. It promotes enthusiasm.
This leadership model is said to create an enthusiastic work
environment and drives a company with changes and
innovations. As individuals are working through self-motivation,
this approach would particularly guarantee a higher level of
efficiency and output.
3. It uses inspiration to motivate people.
Transformational leadership’s vision aligns with the ability to
motivate and inspire. Basically, passion is a common trait that
enables transformational leaders to get their members to optimize
performance. When getting through difficult times, these leaders
would depend on their passion to help sell their vision and get
employees headed to a common direction.
Negative Effects-
1. It can face serious detail challenges.
While transformational leaders are known for their inspirations
and big picture visions, they would struggle with detail
orientation at times. Experts say that these types of leaders
would need support from more detail-oriented and organized
people, which means that other executives, assistants or certain
team members would be needed to help maintain a transactional

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focus that can keep the vision of these leaders moving in the
right direction.
2. It might overlook reality and truth.
It has been noted that transformational leaders might fall in the
trap of depending too much on passion and emotion that they
would tend to overlook reality and truth. This over-reliance can
also restrict their willingness to delve into research and logical
reasoning to face harsh truths about the situation of their
companies.
3. It carries the potential for abuse.
Though this type of leadership is powerful, it is not always used
morally and for the common good. Actually, not all of those often
associated with this approach fit the definition. As you can see,
Adolf Hitler and Osama bin Laden are also cited as examples of
those using this type of leadership
Qualities of a Transformational Leader:
• A clear vision:
Transformational leaders have a vision of what they want to
achieve and the ability to clearly communicate this vision so that
everyone in the organization understands what is needed to
achieve this vision.
• Courage:
An effective leader needs courage; a willingness to take on new
challenges, take calculated risks, make tough decisions, and be
willing to go out on a limb for something they believe in.
Transformational leaders have the courage to create a vision and
make the difficult decision necessary to achieve their vision.
• Self-motivation:
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Leaders need to fuel their passion from within. Transformational
leaders have passion and motivation that people can sense and
feed off of it.
• Inspiration:
Transformational leaders, based on their personal passion, have
the ability to inspire others and get them to buy into their vision
and execute it on all levels of the company.
• Know your people:
Personal interaction is important. The impact of a simple “hello”
in the hallway or conversation in the lobby goes a long way into
getting people to feel important and want to be part of the vision
a leader has created for the company. You have the ability to
impact each of your team on a personal level.
• Set a company standard:
Transformational leaders model a company standard they expect
everyone to follow. They clearly communicate their vision,
expectations, and how this standard is to be carried out
throughout the organization.
• Follow through:
While it is a bit cliché, actions do speak louder than words — and
when leaders live according to the standard they set, people take
notice. Leaders often promise a lot, but it is the follow through
that has a true impact on a leader’s ability to evoke change and
get buy in.

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