CULTURAL DIVERSITY

CULTURAL IMPERATIVES , ELECTIVES AND

EXCLUSIVES

• Business customs can be grouped into

1. IMPERATIVES : Customs that must be
recognized and accomodated
2. ELECTIVES /ADIAPHORA: Customs to
which adaptation is helpful but not
necessary
3. EXCLUSIVES : Customs in which an
outsider must not participate
 CULTURAL IMPERATIVES

• Significance of establishing friendship

• In China for example , the outsider is ,at
best ,in 5th place in order of importance
when deciding with whom to conduct business
The order is
1. Family
2. Extended family
3. Neighbours from one’s hometown
4. Former classmates
5. Strangers
 CULTURAL IMPERATIVES (examples)

• In Japan prolonged eye contact is

considered offensive and it is imperative
that it be avoided

• With Arab and Latin American executives

it is important to make strong eye contact
or you are seen as being evasive and
untrustworthy.
 CULTURAL ELECTIVES
• Relate to areas of behaviour which are
particularly not important but it is
permissible to follow the custom in question.

• One need not greet another man with a kiss , eat

foods that disagree with the digestive system , or
drink alcoholic beverages

• A symbolic attempt to participate in such

options is not only acceptable but also may
help to establish rapport
 CULTURAL ELECTIVES (examples)
• Chinese business negotiations often include
banquets at which large quantities of alcohol
are consumed in an endless series of toasts .

• It is imperative that you participate in the

toasts with a raised glass of the offered
beverage , but to drink is optional.

• Your Arab business associates will offer

coffee as part of the important ritual of
establishing a level of friendship and trust ;
you should accept even if you take a
ceremonial sip.
 CULTURAL EXCLUSIVES

• These are behaviour patterns reserved exclusively

for the locals and from which the foreigner is barred.

• A foreigner criticizing or joking about a country’s politics

and pecularities is considered offensive , even though
locals may among themselves criticize such issues.

• There is truth in the old adage “I’ll curse my brother ,

but if you curse him ,you’ll have a fight”.
 THEREFORE
• Foreign managers need to be perceptive enough
to know when they are dealing with an
imperative, an elective or an exclusive

• Most sensible businesspeople will make

allowances for the occasional misstep.

• But the fewer you make the smoother the

relationship will be.
Dimensions of Culture
Power Distance
Individualism/collecti
vism

Uncertainty
Avoidance

Masculinity /
Femininity
Long-term/ Short-
term Orientation
CULTURAL VALUES ( by Geert Hofstede)

• Individualism/ Collective Index (IDV) focuses on self

orientation

• Power Distance Index (PDI) focuses on authority

orientation

• Uncertainty Avoidance Index (UAI) focuses on risk

orientation

• Masculinity/ Femininity Index (MAS) focuses on

assertiveness and achievement
INDIVIDUALISM/COLLECTIVISM INDEX
 INDIVIDUALISM /COLLECTIVISM INDEX (IDV)

Preference for behaviour that promotes

one’s self interest.

• Cultures that score high on IDV reflect an

“I” mentality and tend to reward and
accept individual initiative

• Cultures low in individualism reflect a “we”

mentality
 INDIVIDUALISM /COLLECTIVISM INDEX (IDV)

• Individualism pertains to societies in which

the ties between individuals are loose;
everyone is expected to look after himself
or herself or his or her family

• Collectivism, pertains to societies in which

people are integrated into strong cohesive
groups .
 INDIVIDUALISM - COLLECTIVISM
• Collectivistic countries
– Peru, Costa Rica, Pakistan,India
Indonesia, Colombia, Equador,
Guatemala
• Individualistic countries
– USA, Australia, UK, Canada,
Netherlands, Italy, France, Sweden....
POWER DISTANCE INDEX
 POWER DISTANCE INDEX

• Measures the tolerance of social

inequality i.e. power inequality between
superiors and subordinates within a social
system
• Cultures with high PDI scores tend to be
hierarchical ,with members citing social
role, manipulation and inheritance as
source of power and social status
 POWER DISTANCE INDEX

• High PDI scores indicate a perception of

differences between superior and
subordinate -a belief that those who hold
power are entitled to privileges

• Cultures with low PDI scores value

equality and consider knowledge and
respect as a source of power.
 Power Distance and Individualism-Collectivism
Small Power Large Power Example
0 Countries:
Distance Distance Collectivist
1
Collectivist 1. Costa Rica
2
Individualism Index

2. Korea and
Mexico
3
3. Brazil & India

4. Israel and
4 6 Ireland

5. Australia and
U.S.A.
Small 5
Power Large Power 6. France and
Distance Italy
Distance
112 Individualist
Individualist
10 110
Power Distance Index
UNCERTAINTY AVOIDANCE INDEX
 UNCERTAINTY AVOIDANCE INDEX

• Measures the tolerence of uncertainty and

ambiguity among members of a society

• Cultures with high UAI scores are highly

intolerant of ambiguity and tend to be distrustful
of new ideas or behaviour

• They have a high level of anxiety and stress

• They dogmatically stick to historically tested

patterns of behaviour
 UNCERTAINTY AVOIDANCE INDEX

• Those with very high UAI scores accord a high level of

authority to rules as a means of avoiding risk.

• Cultures scoring low in UAI have a low level of anxiety

and stress

• They have a willingness to take risk.

• They take a more empirical approach to understanding

and knowledge whereas those high in UAI seek absolute
truth.
MASCULINITY /FEMININITY INDEX
MASCULINITY/FEMININITY INDEX (MAS)

• Some cultures allow men and women to

take on many different roles , while others
make sharp divisions between what men
should do and what women should do.

• In societies that make a sharp division ,

men are supposed to have dominant,
assertive roles and women more service
oriented ,caring roles .
MASCULINITY/FEMININITY INDEX (MAS)

• It refers to one’s desire for achievement and

entrepreneurial tendencies and the extent to which
the dominant values in the society are “masculine”

• Assertiveness, the acquisition of money and not

caring for others are cultural traits in countries with
high MAS scores

• Low scoring cultures are associated with equality

between the sexes and an emphasis on service,
interdependence and people
 TIME ORIENTATION
P-Time versus M-Time
• M-Time or monochronic time , typifies most North
Americans , Swiss ,Germans and Scandinavians

• These western cultures tend to concentrate on one thing

at a time.
• They divide time into small units and are concerned with
promptness
• M – time is used in a linear way and it is experienced as
being as almost tangible , in that one saves time ,wastes
time, bides time, spends time and loses time.
• Most low –context cultures operate on M-time
 P-Time versus M-Time
• P- Time or Polychronic time , is more
dominant in high –context cultures, where
the completion of human transaction is
emphasised more than holding to
schedules.

• P-time allows for relationships to build and

context to be absorbed as parts of high
context cultures.
 P-Time versus M-Time

• The Americans desire to get straight to the

point and get down to business . This is a
manifestation of an M-time culture.

• The P-time system gives rise to looser

time schedules , deeper involvement with
individuals and a wait-and-see-what-
develops attitude.
 P-Time versus M-Time

• When business people from M-time and

P-time meet , adjustments need to be
made for a harmonious relationship.

• As global markets expand , however, most

business people from P-time cultures are
adapting to M-time
 CULTURAL SENSITIVITY AND TOLERANCE

• Successful foreign marketing begins with

cultural sensitivity- getting attuned to
nuances of culture so that a new culture
can be viewed objectively , evaluated and
appretiated.

• Most important step is the recognition that

cultures are not right or wrong , better or
worse, they are simply different.
Recommended International Business Conduct
1. Always show respect and listen, don’t be in a hurry
2. Do not feel your way is the best way.
3. Emphasize points of agreement.
4. Don’t embarrass anyone in front of others
5. Know or take someone who knows the culture.
6. Understand that leadership may mean different things to
different countries.
7. Don’t lose your temper.
8. Always show respect
9. Eliminate stereotypes.
10.Be sensitive to the difference between low context culture
and high context cultures
11.Learn to tolerate a high degree of unpredictability.
EUROPEAN CULTURE
ASIAN CULTURE
INDIAN CULTURE
INDIAN CULTURE
YOUTH CULTURE
 Topics covered

• High context vs. low context cultures

• Elements of culture
• Cultural Imperatives, electives and
exclusives
• Cultural values by Geert Hofstede
• Time orientation