A

INTERNSHIP PROJECT REPORT

ON
“CROSS CULTURAL TRAINING-A STUDY”

(SUBMITTED TOWARDS PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION)

Submitted To: Submitted By:

Professor renu yadav
Abhishek Sony MBA
3rd sem

JIET GROUP OF INSTITUTION, SCHOOL OF MANAGEMENT

MOGRA,PALI ROAD

1
 ACKNOWLEDGEMENT

It gives me immense gratification to place on records my profound gratitude

and sincere appreciation to each and everyone of those who have helped me in
this endeavor.

I am ineffably indebted to Professor Abhishek Sony for conscientious guidance

and encouragement to accomplish this assignment.

I extend my sincere thanks to M/s Jyoti jali for his cooperation and valuable
suggestions to initiate the study.
`
I extend my gratitude to INNODATA for giving me this opportunity.

On a personal note I would like to thank all my batch mates for their support.

Any omission in this brief acknowledgement does not mean lack of gratitude.

INNODATA ISOGEN RENU YADAV

NOIDA 3RD SEM
02ND JULY, 2013 JIET,JODHPUR

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 TABLE OF CONTENTS

S.NO TOPIC P.NO

1 Introduction to the industry 5

2 Introduction of the innodata co. 10
3 Swot analysis 30
4 Cross cultural training 32
5 Methods of training 45

6 Different cultures:china 55
7 Conclusion 72

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 CHAPTER 1.

INTRODUCTION TO THE INDUSTRY

&
ITS STATUS IN INDIA.

4
 INFORMATION TECHNOLOGY
Information technology companies face massive documentation requirements for
customers as well as engineers, research scientists and business partners.

The documentation requirements for most information technology companies are

massive. Not only must they deliver extensive product documentation to
customers, they also need to exchange key data with engineers, research
scientists and business partners.

In an environment where product lifecycles are measured in weeks and months,

inaccurate or incomplete information could delay time to market, lowering profits
and eroding market share. Moreover, inaccurate information released to
consumers could also lead to extensive product litigation.

For years, a lack of industry-wide data exchange standards has hindered efforts
to streamline the business process required to create, manage and distribute this
information. Different departments wasted time re-entering data and combining
multiple data types into final documents. Authors focused on making reports look
good, instead of using their technical expertise to fine-tune the content. This
problem increases exponentially for global organizations that need to provide
localized content to a worldwide audience.

Innodata can help IT companies overcome these obstacles by deploying content

management systems that support single-source publishing and enable the
reuse of content. For example, we recently helped one major high-tech client
create a multi-lingual single-source publishing environment that delivered
significant cost savings.

The fact is, we can help you at any point in the production chain, including
content creation, processing and management.

 INNODATA ISOGEN PVT.LTD

TYPE Public NASDAQ: INOD

INDUSTRY Information Technology

FOUNDED 1988
HEADQUARTERS Hackensack, NJ

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KEY PEOPLE Jack Abuhoff, President & CEO
AK Mishra, EVP & COO
O’Neil Nalavadi, SVP & CFO
R. Douglas Kemp, SVP, Product Innovation
Jim Lewis, SVP, Sales & Marketing
Stephen Ryden-Lloyd, SVP, Consulting Practice
Amy R. Agress, VP & General Counsel

SERVICES Content/Data Enrichment

e-Publishing
Knowledge Management
Consulting
REVENUE $74 million USD for 2011
WEBSITE http://www.innodata.com/

IT expenditures in content operations at media, publishing and information

services companies continue to mount, representing a steadily increasing share
of overall spending on content operations.

Our team of more than 5,500 professionals in nine global operations centers,
provides content-centric information technology outsourcing (ITO), knowledge
process outsourcing (KPO) and business process outsourcing (BPO) services to
approximately 200 major media, publishing and information services companies
worldwide.

We blend subject matter, process and technology expertise into integrated total
solutions. This combination of content-focused competencies means that we can
lower the total cost of ownership across an organization’s entire content supply
chain and improve the value derived from it.

 SOFTWARE VISUALIZATION

The old document-based model for capturing product requirements no longer

works well. It’s too slow and too few people have the time to read and work
through the details.

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We create working visual models that can be quickly used to iterate and evolve
requirements for any new application, system or product. Seeing a working
model helps stakeholders iterate design and functionality without disrupting the
productivity of development staff.

Business owners have more opportunities to innovate, test and be more

responsive to users. At the same, they can better manage costs, avoiding
change orders, project delays and cost over-runs.

 RETHINKING ASSUMPTIONS

Early on, Innodata had many clients in the manufacturing sector that spent tens
of millions annually producing documents to support their products.
Unsentimental about publishing’s craft traditions, these companies eagerly
helped develop SGML, and then XML, as tools to rationalize the publishing
process.

Our leadership in standards-based systems and solutions helped fundamentally

shape this approach to publishing. The approach conceives of publishing as a
manageable business process which can be broken up into constituent parts,
distributed to a global assembly line and streamlined with process improvements,
tools and technology.

 OPTIMIZING SPEND

Content applications and systems need to be modified frequently as new

technologies and new demands emerge. A growing number of publishing
companies have determined that maintaining content technology platforms is not
only expensive, but inefficient.

Innodata has its own global technology infrastructure already in place and the
most experienced IT solutions teams in our competitive set.

We combine specialization, scale and operations centers in high-value labor

markets, to create compelling economies for our clients. This means that our
clients get more bang for their buck.

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  VALUE TO THE BOTTOM LINE

Truth is content technologies are proliferating. And with them, hype. How do you
separate fact from fiction? In a landscape littered with failed deployments, it
makes sense to work with a company focused on outcomes.

At Innodata, our entire organization is focused on helping clients overcome

information management and publishing challenges. We capture innovation from
a broad range of engagements in the content industry. And we use this
knowledge to create practical solutions with demonstrable impact, helping clients
reduce expenses, speed time-to-market and deliver more innovative products
and services to customers.

Innodata has unrivaled experience designing and deploying editorial and

production workflow systems, tightly coupled with expertise in a comprehensive
range of editorial, composition docGenix Risk Managem

Doc Genix provides software products and services that assist financial
institutions turn the legal and financial text contained in mission-critical contracts
into actionable data that can be used for business advantage.

With docGenix, your portfolio of financial and legal documentation (including

documentation published by the International Swaps and Derivatives
Association, Inc ("ISDA") becomes an XML data stream that can be used to
power your own in-house applications, (including collateral and risk systems) as
well as the docGenix suite of risk and contract management applications.

With the docGenix approach, risk management becomes proactive, rather than
reactive. You can easily obtain an overview of the bigger risk embedded in your
ever-expanding portfolio of legal agreements. You will have an enhanced ability
to run stress tests based on hypothetical scenarios and you will be able to
manage collateral with greater acuity. You can reduce the ever increasing cost of
contract administration, creation, and negotiation.

 PROACTIVE RISK MANAGEMENT

docGenix provides software products and services that assist financial

institutions turn the legal and financial text contained in mission-critical contracts
into actionable data that can be used for business advantage.

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 CHAPTER 2.
INTRODUCTION OF THE INNDATA ISOGEN
COMPANY
NOIDA

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 2.INTRODUCTION
 INNODATA ISOGEN PVT. LTD
Innodata Inc., formerly Innodata Isogen, Inc., is an American company that
provides business process, technology and consulting services. The company
also provides products that aim to help clients create, manage, use and distribute
digital information.

As of June 2012, Innodata has a client base that includes many preeminent
media, publishing and information services companies, as well as enterprises in
information-intensive industries such as aerospace, defense, financial services,
government, healthcare, high technology, insurance, intelligence, manufacturing
and law.

Founded in 1988, Innodata employs more than 5,000 people worldwide. It is

headquartered at Hackensack, NJ, and has additional offices in Europe, Israel,
India, the Philippines, Sri Lanka and a business presence in China.

We are a leading services company providing content solutions, data analytics

and related services to publishers, information providers, and enterprises.
Innodata (NASDAQ: INOD) provides services, products and solutions that our
clients use to create, manage and distribute digital information.

In response to market demand for transformation from print publishing to online

publishing, from search-based information products to workflow-based
information products, and from web-based distribution to multiple-channel
distribution—including mobile, tablet and eReading devices—we are
continuously adopting new strategies, technologies and processes.

We operate in two separate reporting segments. Our Content Services segment

provides business process, technology and consulting services to assist clients in

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setting digital content production and product strategies, integrating new
technologies and processes, and improving the quality and efficiency of content
creation, enrichment and transformation. We launched our other segment,
Innodata Advanced Data Solutions, during the second quarter of 2011, to
perform advanced data analysis services in the financial, healthcare, medical and
insurance industries.

Our clients include leading media, publishing and information services

companies, as well as enterprises that are prominent in information technology,
manufacturing, aerospace, defense, financial services, government, healthcare
and law.

 Recognized as Industry Leader

Innodata continues to gain recognition year after year as the leader in knowledge
process outsourcing and publishing services. We were named to the Global
Outsourcing 100 and several top ten categories by the International Association
of Outsourcing Professionals (IAOP). The Black Book of Outsourcing

again recognized us this year as a leading provider of outsourced knowledge

services to the publishing business. In addition, we were once again named to
EContent magazines EContent 100 and ranked as one of Indias leading ITeS
and BPO companies by D&B India.

RESEARCH METHODOLOGY

 RESEARCH OBJECTIVES

1.To Understand the values, attitudes and behaviors of people in various

countries that help companies to gain a competitive advantage in the global
marketplace

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2.To find out the impact of dealing with a different culture in today’s competitive
environment.

3.To understand the objectives and benefits of cross cultural training to

overcome the cross border

CORPORATE GOVERNANCE

 CODE OF ETHICS

This Code of Business Conduct and Ethics (the "Code") is designed to promote
honest, ethical and lawful conduct by all employees, officers and directors of
Innodata Inc. and all subsidiaries and entities controlled by it (collectively,
"Innodata" or, the "Company"). The Code is intended to help employees, officers
and directors understand Innodata's standards of ethical business practices and
to stimulate awareness of ethical and legal issues that may be encountered in
carrying out their responsibilities.

 AUDIT COMMITTEE CHARTER

The principal purpose of the Audit Committee is to oversee the integrity of the
Company's accounting and financial reporting processes and the audits of the
Company's financial statements. In particular, the Audit Committee shall oversee
(a) the integrity of the Company's financial statements and financial reporting
process and the Company’s systems of internal accounting and financial
controls, (b) the Company's compliance with legal and regulatory requirements,
(c) the engagement of the independent auditors and the evaluation of the
independent auditors' qualifications, independence and performance, and (d) the
fulfillment of the other responsibilities set out herein and as the Board of
Directors may from time to time prescribe. The Audit Committee shall also
prepare the report required by the Securities and Exchange Commission (the
"Commission") to be included in the Company's annual proxy statement. The
term "independent auditors" means the auditors that perform the audits of the
Company that are required under the Securities Exchange Act of 1934 (the
"Exchange Act") or the rules of the Commission

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 COMPENSATION COMMITTEE CHARTER

The Compensation Committee shall review and provide oversight with regard to
the Company’s compensation policies and programs as relates to the Company’s
directors, officers, and key executives in order to retain and attract directors,
officers, and key executives who are needed for ensuring the competitiveness
and long-term interests and success of the Company’s business.

 CORPORATE SOCIAL RESPONSIBLITY

 THE INNODATA CHARITABLE TRUST
We believe that charity is not just stretching out to the needy by donating money
but to go a step further by immersing ourselves in giving back to the society for
its non-monetary needs as well. To carry forward these Corporate Social
Responsibility activities of innodata issogen, it was established in 2008.

The innodata Charitable Trust in true spirit believes that “Actions speak better
than words” and has hence undertaken numerous activities since the time of its
establishment. Innodata issogen, being a socially responsible company has
carried out a list of activities, a few of which are mentioned below:

 BLOOD DONATION CAMPS:

innodata Charitable Trust has held 2 blood donation camps in association with
the local blood banks/hospitals to ensure that these blood banks are equipped to
help patients in need. By organizing these 2 day camps around Valentine’s Day
in February 2009 and 2010, they celebrated this day dedicated to love by
donating selflessly for this great cause!

 HELPING UNDERPRIVILEGED STUDENTS:

Ensuring that the future of India get the best facilities to educate themselves, the
innodata Charitable Trust has been providing computers, stationary and benches
to the underprivileged students of local schools.

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  SUPPORTING HIGHWAY RESCUE PROJECT:

Through its campaign “Golden chance for the Golden hour”, the innodata
Charitable Trust brought together funds to donate an ambulance to support the
Lifeline Foundation for its ‘Highway Rescue Project’ on National Highway 8.

 GOING GREEN:

When it comes to building a healthy future, cleanliness and hygiene are the best
gifts that we can give to our fellow citizens. They works hand in hand with non
profit organizations to keep its city CLEAN and GREEN, an initiative taken to
reduce global warming. One such event was organized on 24th Oct 2010
“Cleanathon”, for which many

 HISTORY OF INNODATA ISOGEN CO.

Innodata Inc. was founded in 1988 in New York City to provide digitized content
as the Internet was emerging from its scientific roots to become a commercial
and social force. The company created quality assurance and audit procedures.

By 1992, the year the company went public, Innodata had grown to more than
1,000 employees worldwide. Advances in telecommunications infrastructure
allowed it to establish personnel in Asia to support North American and European
operations. Throughout the decade, the company opened major facilities in the
Philippines, Sri Lanka and India.The company tripled its revenue to $60 million
from $20 million between 1999 and 2001

Innodata acquired Isogen International in 2001 and integrated both of the

company’s content management and publishing technologies, structured
information standards and outsourcing services. In 2003, the name of Innodata
Isogen Inc. was formally adopted to reflect the full range of consolidated offerings
in Content Supply Chain Optimization.

On Dec 27 ,2005, Innodata Isogen announced that Steven L. Ford had joined the
company as Executive Vice President and Chief Financial Officer. Starting in
2007, the company started taking advantage of the growing popularity of e-books

14
to become a producer of technology and processes for transforming books into
e-book formats for distribution and sell-through on tablets and e-readers. To
date, Innodata has produced over 1.2 million e-books and is presently distributing
more than 1,500 e-books per day across 25 global platforms and e-bookstores.

 INNODATA ADVANCED DATA SOLUTIONS (IADS)

In 2011, the company launched a new segment, Innodata Advanced Data

Solutions, to develop products designed to help companies outside the
information and publishing industries adapt to the public’s rapid adoption of
digital and mobile devices. Within this segment, they started two new
subsidiaries, Synodex and DocGenix.

In 2012, in an effort to simplify their branding and cultivate a stronger, unified

company culture, they began to once again present themselves in corporate
imagery simply as “Innodata”. This move became official on June 5, 2012 when
Innodata’s stockholders approved an amendment to the Company’s Certificate of
Incorporation to change the Company’s name from “Innodata Isogen, Inc.” to
“Innodata Inc.”

Our physical infrastructure and technologies have been road-tested by the

largest, most complex assignments in the world.

Innodata has regional solutions centers and satellites throughout the United
States and Europe. We also have R&D and production facilities in the United
States, The Philippines, India and Sri Lanka.

 STATE-OF-THE-ART FACILITIES

Innodata Inc. has an experienced, culturally diverse team to plan and execute the
company's global business strategy and to drive sustainable growth. It also
represents a commitment to our people. We provide productive environments in
which our professionals continually strive for achievement.

We have five professional centers in North America and Europe, convenient to

many of our clients.

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 PURPOSE-BUILT CONTENT FACTORIES

In Asia, Innodata owns and operates the largest, most advanced content
production infrastructure in the world, which includes state-of-the-art content
production facilities in India, Sri Lanka, Israel and the Philippines.

With our current infrastructure, we can accommodate up to 15,000 dedicated

content specialists worldwide. This provides enormous economies to our clients.
And, of course, we can easily scale from there.

 MIRRORED SITES FOR CONTENT PRODUCTION

All of our facilities are interconnected with multi-redundant data connections via
fiber optic lease lines with alternative fiber optic, satellite, microwave, and copper
backup links.

Each facility functions as a mirror site, with identical technology, infrastructure

and workflow designs. This means that work can be transferred seamlessly to
another facility, if need be, with virtually no interruption to the regular work flow.

Maintaining our competitive advantage requires continuing investment,

something to which we are completely committed. In fact, we view it as part of
our job. We invite you to tour our facilities to see our strength firsthand.

 MANAGEMENT AND BOARD OF DIRCTORS

Innodata has an experienced team to plan and execute the company's global
business strategy and to drive sustainable growth.

 JACK ABUHOFF
President and Chief Executive Officer

 ASHOK KUMAR MISHRA

Executive Vice President and Chief Operating Officer

 O'NEIL NALAVADI
Senior Vice President and Chief Financial Officer

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 R. DOUGLAS KEMP
Senior Vice President, Product Innovation

 STEPHEN RYDEN-LLOYD
Senior Vice President, Consulting Practice

 JACK ABUHOFF
Chairman of the Board, President and CEO

 HAIG S. BAGERDJIAN
Chair of the Acquisitions Committee

 LOUISE C. FORLENZA
Chair of the Audit Committee

 TODD SOLOMON
Chair of the Nominating Committee

 STEWART R. MASSEY
Chair of the Compensation Committee

 ANTHEA C. STRATIGOS
Director

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  DEPARTMENTS OF CO.

H.R DEPARTMENT

RATING: 3.3

INDUSTRY Technology (IT, Telecom,

Dot Com etc)
 SIZE: 5001-10000 Employees

 TURNOVER: 100-500 Crores

 SALARY: 2.8

WORK LIFE BALANCE: 3.6

CORPORATE CULTURE: 3.6

REWARDS & RECOGNITION: 3.3

PARTICIPATIVE MANAGEMENT: 3.3

LEARNING & DEVELOPMENT: 3.3

CAREER GROWTH PLAN: 3.0

COMMUNICATION: 3.3

Salaries for Innodata Isogen, Inc.

The green band indicates range of salaries for the role and yellow line is an
actual salary close to
average.

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 JOB ROLE AVG. ANNUAL 0L
SALARY 2L
4L
6L
Administration Assistant/ 1.69 L
Executive 1.02
4 User(s) L
3.6
L
Associate Lawyer/ Attorney 3.28 L
10 User(s) 2.4
L
4.1
L
Computer Operator/ Data Entry 1.34 L
Operator 1.02
4 User(s) | L
2.8
L

= Range
= Median Salary
Salary may vary based on location, years of experience, and/or other factors.

 MARKETING DEPARTMENT

INNODATA INC. SALES PREPARATION

Innodata handles information inundation. The company provides content

management and process outsourcing services to businesses and government
agencies mainly in the US and Europe. It oversees abstracting and
indexing, data capture and entry, research and analysis, and technical writing,
among other tasks. Innodata manages such tasks as digitizing paper documents
into a more manageable electronic form. The company also provides IT services
such as consulting, systems integration, and software and systems engineering.
It primarily serves the media, publishing, and information services industries.
Innodata's top clients are Wolters Kluwer, Bloomberg, and Reed Elsevier.

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  FINANCE DEPARTMENT
FINANCIAL INFORMATION FOR INNODATA INC.
 Income Statement
 Cash Flow
 Balance Sheet
 Credit Rating

 INCOME STATEMENT

INCOME 2012 2011 2010 2009 2008

STATEMENT
Revenue $86.591 $73.942 $61.513 $79.329 $75.00
1
Gross Profit $29.209 $23.766 $14.229 $24.568 $21.47
6
Operating Income $6.515 $4.684 $-1.43 $8.25 $5.342
Net Income $7.473 $4.471 $-0.747 $7.313 $7.584
Diluted EPS $0.28 $0.18 $-0.03 $0.28 $0.3
ASSETS (MIL) 2012 2011 2010
Current Assets
Cash $25.425 $11.389 $14.12
Net Receivables $14.317 $21.706 $8.389
Inventories $ $ $
Other Income Assets $6.756 $10.746 $14.298

ASSET SUMMARY
$46.498 $43.841 $36.807
Total Current Assets
Net Fixed Assets $10.656 $7.43 $4.284
Other Noncurrent Assets $9.027 $8.126 $11.156
Total Assets $66.181 $59.397 $52.247
2012 2011 2010
LIABILITIES
(MIL)
Current Liabilities

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Accounts Payable $1.618 $1.528 $0.855
Short Term Debt $0.818 $ $
Other Current $11.278 $14.165 $9.864
Liabilities
Liability Summary
Total Current $13.714 $15.693 $10.719
Liabilities
Long Term Debt $3.374 $ $
Other Noncurrent $(1.416) $2.536 $2.09
Liabilities
Total Liabilities $15.672 $18.229 $12.809
2012 2011 2010
STAKEHOLDER'S
EQUITY (MIL)
Equity
Preferred Stock Equity $0 $0 $0
Common Stock Equity $50.509 $41.168 $39.438
Equity Summary
Total Equity $50.509 $41.168 $39.438
Shares Outstanding 24.89 24.69 25.16

FINANCIALS
Company Name PUBLIC-
(TICKER: INOD)
HEADQUARTER
S
Market Value 59.619
as of 2013-11-22
Fiscal Year-End Dec
2012 Sales (mil) 86.591
2012 Employees 6,060
Employee Growth Percent -14.23%
Assets (mil) 66.181
Net Income Growth Percent 67.14%
Sales Growth Percent 17.11%

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 PRODUCTS & SERVICES OF INNODATA CO.
E-PUBLISHING

Innodata is the industry's leading provider of e-book services to major publishers

— such as Simon & Schuster, Random House and Penguin — and leading
device makers — such as Apple, Amazon, Sony and Barnes & Noble.

A recognized innovator in cost-effective, XML-enabled publishing strategies, we

can help you develop operational strategies that best realize your organization's
market objectives.

The size and scope of our ongoing investment in production and publishing
processes (including a dedicated e-book services unit, supported by state-of-the-
art tools and technology) provides our clients access to unrivaled scale, expertise
and experience.

And no company in our competitive set has more experience with EPUB, the key
to device-independent interoperability. In fact, Apple has selected Innodata as
just one of two authorized providers for its mobile platforms, including the iPhone
and iPad.

 INNODATA'S METHODOLOGY

We take complex knowledge work, disaggregate it into manageable segments

and then send each segment to the location where it can be performed most
effectively, efficiently and at the lowest cost. The globalized nature of our
production infrastructure and workforce enables us to use a multi-shore
approach, with different parts of a project performed simultaneously in different
locations, with maximum coordination.

Experienced staff, proven tools and processes also help minimize the need for
extensive instruction at the outset of projects, helping ensure quicker time-to-
market. The global nature of our team means that Innodata is working around-
the-clock and can complete our work before our clients start their workdays.

 EXPERIENCED THIRD-PARTY PROVIDER

With our sophisticated content production infrastructure and extensive

experience converting large content sets, Innodata quickly and cost-effectively
helped Sony, a pioneer and one of today's leaders in the e-book industry. We

22
digitized massive quantities of books and converted them to EPUB, the e-book
standard file format, to populate Sony's e-book store with content. Sony's risk of
conversion errors was minimized and the project's completion time was
accelerated.

 LEADERSHIP

Innodata is the leading provider of e-book services to the world's most significant
media, publishing and information services companies. We have been in this
market since its inception, and we've helped many of the industry's leading e-
book players become e-book players. They like the results: lower costs,
increased operational and business flexibility and a healthier bottom line. You will
too. Call us to discuss your e-book strategy at 201-371-8000.

 APPLE PARTNERSHIP

Innodata is partnering with Apple to provide a quick, easy and cost-efficient way
to offer books for sale on Apple's mobile devices, including the iPad and iPhone.
Based on our substantial track record of success with Apple platforms, Apple has
authorized us to help publishers convert, format and upload e-books to the
iBookstore. So whatever their initial format, titles will be fully optimized for
flawless performance on Apple's hottest platforms.

 Apple-compliant EPUB conversion

 Special pricing
 30-day turnaround
 Direct delivery into your iBookstore publisher account
 Apple-approved partner
 The choice of a platform (such as Apple, Amazon, Sony and Barnes & Noble)
is preceded by negotiations and partnerships. These negotiations must cover
how publishers will deliver content,

whether or not the platform will convert the files, how e-book files will be
maintained and updated to capitalize on newly emerging e-book technology and
trends, etc.

Because Innodata has direct relationships with nearly all major e-book
distributors, we possess their metadata and other technical requirements,
including all recent updates. Most e-book distributors do not accept all known
formats; they tend to pick a preferred set of formats based on their particular
market and business strategy. In short, they decide which formats they will
support and distribute. Of course, publishers can choose any e-book format, but

23
those choices will shape their distribution options. As a rule, most publishers
choose several popular formats to maximize their distribution potential.

With distribution houses continually revising metadata and technical

requirements, working with Innodata saves our clients time and money. We keep
pace so publishers and information services companies don't have to. To speed
time-to-market, we run all the prerequisite validation checks and ensure that the
ingestion of books for distribution is seamless.

 CONTENT AND DATA ENRICHMENT

As the leading producer of e-books across more than 25 platforms, Innodata has
set the standard for digital conversion. Going beyond servicing retail platforms,
we combine our expertise in a variety of e-publishing formats with strategic, high-
value consulting and technology services to quickly, accurately and cost-
effectively transform unstructured content to SBML, XML, HTML and other
structured information standardized formats.

Innodata's Content and Data Enrichment services drive enhanced content and
data discoverability and accessibility. We provide high-accuracy, large-scale
digitization services to transform content from paper and image formats into
digital text. We provide enhancement and analysis services to configure digital
text into high-value information products and knowledge repositories that are
enriched, structured, normalized and referenced. We provide these services
using a globally distributed workforce utilizing advanced technologies which
automate portions of our process and help ensure that our work is highly
accurate and consistent. For our enhancement and analytics services, we
maintain a staff in a wide spectrum of disciplines including medicine, law
engineering, management, finance, science and the humanities.

 KNOWLEDGE MANAGEMENT

Intellectual property. Customer information. Product documentation. Trillions of

bytes of data stored within corporate databases, intranets and Web sites.

Dozens of knowledge-management tools and semantic web technologies, from

search applications to text analysis, have emerged to help organizations share,
interpret and leverage the wealth of information now available.

But there's more to finding data and creating a cohesive knowledge management
strategy than simply plugging in a search application. In fact, companies that lock
their metadata within proprietary search applications may find themselves unable

24
to adopt new knowledge models or switch to a different platform in the future.
Moreover, even the best enterprise search applications still tend to generate
irrelevant results or deliver them devoid of context, leaving users to continue
sifting through dozens, if not hundreds, of results.

 CONQUER INFORMATION OVERLOAD

Innodata can help you overcome information overload. We helped a leading

European media company develop an enterprise search strategy that enabled
employees and customers to access information stored within 30 separate
systems.

We're also helping a large intelligence agency select and deploy tools that will
allow analysts to sort through mountains of information pulled from disparate
sources, including databases and external Web sites.

A LEADER IN KNOWLEDGE MANAGEMENT SOLUTIONS:

We start with a basic premise: your content and its supporting metadata is more
important than any particular technology platform. We then analyze search
applications and existing knowledge models to determine the approach that best
meets the needs of your organization.

Innodata is widely recognized for our expertise and leadership in the field of open
standards and standards-based content technologies. Our engineers have
authored many of the XML-related standards at the W3C, ISO, IETF, OASIS and
other standards-setting bodies, and we employ some of the top experts in
content repository cross-linking.

 INNODATA's XBRL SERVICES

 BULK MANAGED SERVICES
 SELF SERVICE PORTAL
 SELF TAG USING IXTAG

We offer a cost effective outsourcing solutions which helps our clients reduce
their operating costs while improving on their cycle times. We have subject
matter experts, who have adequate experience and training in XBRL tagging
process. We have a world class quality control and support team solely

25
dedicated to XBRL filing process of our clients. We do all the ground works for
our clients XBRL needs

and ensure that the regulatory requirements are met, while as our clients can
focus their time and energy on their key business issues and not having to worry
on.meeting.the.XBRL.compliance.requirements.

Innodata has a dedicated XBRL team of accounting experts who have developed
over the past 2 years, a suite of XBRL solutions and services.

Innodata provides a complete range of XBRL generation services to large

accounting firms, corporations, Financial advisors, mutual funds, financial
printers and filing agents. We offer a comprehensive set of fast, accurate and
reliable services to enable companies to cost effectively and accurately generate
XBRL instances and comply with the MCA mandate.

Innodata has developed its own XBRL proprietary tool iXTAG. Because of its
extensive expertise in XML based technology, Innodata is able to offer a scalable
software solution that will take advantage of XBRL capabilities and integrate
these.functionalities.into.client.platforms.

 INDUSTRY SPECIFIC KNOWLEDGE:

Freelancers and contractors need to know about specialized areas - such as

XML, XHTML, and TAXONOMIES, etc., which most accountants deal with very
rarely, however, we deal with these issues on a daily basis, and will be able to
give you expert, up-to-date advice on how these issues affect you.

 SYNODEX ELECTRONIC MEDICAL INFORMATION

Synodex offers a service which identifies key elements from medical

records and provides a report back to your organization in a concise, easily
digestible format, allowing for more accurate decisions, greater control of the
underwriting process, and saved underwriting time. We provide a service which
is different and better than the run-of-the-mill summary.

 FOR HEALTH & EMR CONVERSION: Synodex converts imaged

medical records into data for import into EMRs. We are a subsidiary of a
US public company and have built a world-class, industrial strength
capability.

26
  SECURITY & CERTIFICATION

Security features include managed firewalls and intrusion services. We've

partnered with SunGard, whose data facility is compliant with ISO 27001, ISO
9001, SSAE 16 Type II and Sarbanes-Oxley. We encrypt all data, including data
at rest and in motion, to the AES 256 standard. Our production process is

HIPAA and DPA Compliant as well as ISO 27001, ISO 9001, SSAE 16 Type II
certified. Synodex and Innodata are on the US Safe Harbor registry.

 IXTAG - OUR TAGGING SOFTWARE

Innodata has developed its own XBRL proprietary software platform called
iXTAG for tagging financial documents. Given its extensive expertise in XML
based technology, Innodata is able to offer a scalable software solution that will
take advantage of XBRL capabilities and integrate these functionalities into client
platforms.

With an XBRL enable software solution companies can leverage effectively on

the amount of information it can share with both internal and external parties.
One area where XBRL offers potential is reporting to regulatory agencies, hence
with XBRL company information is made widely available across different
platforms.

Our XBRL software is specially designed that can handle multiple formats of the
source file like Microsoft Word & Excel and at the same time is highly user-
friendly.

27
 3.CHAPTER

SWOT ANALYSIS OF THE

INNODATA ISOGEN
P.V.T LTD
NOIDA

28
 3. SWOT ANALYSIS OF INNODATA CO.

The objectives of a SWOT analysis are to build on your strengths and minimize
your weaknesses. Find comparable companies to develop your own SWOT
analysis. This SWOT analysis for Innodata Inc company in United States can
provide a competitive advantage.

 STRENGTHS

-domestic market is large

high sales growth rate
-experienced management
-existing distribution networks
-high profits
-government provides monetary assistance
-reduced labor costs

 WEAKNESSES

-no brands

 OPPORTUNITIES

growing demand
-growing economy
-global reach of business
-new acquisitions
-income level is at a constant increase
-growth rates

 THREATS

-increasing rates of interest

-technological problems

Raw data analyzed for our reports is sourced from an array of the nation's
government and private sources. In total, we cover over a billion sourced data.

29
 CHAPTER 4.

CROSS CULTURAL TRAINING

30
  CROSS CULTURAL TRAINING

THE VALUE OF CULTURE

Corporate culture is defined by a shared set of beliefs, myths and practices. As in

any other social system, this shared culture binds people together. Culture is a
metaphor which can be used to explore the identity of a business. It is about how
others see the business, but also how the individuals who work there understand
it. Culture offers us a powerful insight into the business and what it is like to work
within it. The cultural perspective has become popular in business studies
because it offers a way of explaining performance and understanding difference.
It is only one way of analyzing business, but it is an interesting one as it focuses
particularly on the insider point of view, or on what it is ‘really’ like to work in an
organization. The strength of an organization's culture can and does affect a
company's bottom line. A strong corporate culture stabilizes performance.
Performance is more stable for strong-culture firms in highly competitive markets
like motor vehicles, airlines, technology, textiles and apparel. The shared beliefs
that define a corporate culture function as an informal control mechanism that
coordinates employee effort. Employees who deviate from accepted practice can
be easily detected and admonished faster and less visibly by friends than by the
boss.

Employees also work harder and for longer hours in an organization with a strong
corporate culture. [Research done by Ronald S. Burt is the Hobart W. Williams
Professor of Sociology and Strategy at the University Of Chicago Graduate
School Of Business.]

In the global marketplace, knowledge and skills not only mean power, it can also
mean your survival. Understanding the need for cultural awareness and
sensitivity is just the ante to get into the game of global business. How well you

31
play depends upon your level of cultural savvy. It is estimated that more than half
of all international joint ventures fail within two or three years. The reason most
often given is cultural myopia and lack of cultural competency - not the lack of
technical or professional expertise. Developing global cultural competency is
one of the most challenging aspects of working globally. Managing the myriad
work and management styles that companies face across geographies,
businesses, functions and projects can be daunting. What is effective in one
culture may be ineffective, or even inappropriate, in other cultures.

 LET US SEE THE COMMON MISTAKES INDIANS MAKE:

Failure to understand the sense of time management that other cultures have.
Lack of documentation—most things are kept in the head.
 Lack of e-mail etiquette.
 Not communicating in a precise manner.
 Addressing people by first name does not come naturally.
 Awkwardness while dealing with women clients / colleagues. Use of
‘Miss.’ or ‘Mrs.’ is not appreciated by American women—they consider it
an intrusion into their personal life.
 Shaking of head is not understood by others.
 The habit of communicating with other Indians in a regional language; this
is misinterpreted by clients / colleagues abroad as a sign of mistrust.
 Not asking questions to clarify all doubts in the initial meeting, and then
coming up with a whole list of questions later.

 DETERMINANTS OF CULTURAL DIFFERENCES

There have been many attempts to define cultures and what differentiates them.
The study by Hofstede (1981,in Hofstede, 2001) defined and differentiated
between cultures on various dimensions – viz. collectivism vs. individualism,
power distance, uncertainty avoidance, masculinity vs. feminism and long vs.

32
short term orientation. The author classified a number of countries on these
parameters. These parameters can be defined as:
1.Power distance: degree of inequality in power between a less powerful
individual and a more powerful one in which they belong to same social system.

2.Masculinity vs. feminism: refers to the distribution of emotional roles

between the genders. It opposes a tough masculine to tender feminine society.

3.Uncertainty avoidance: is the extent to which a culture programs its

members to feel either comfortable or uncomfortable in unstructured situations.

4.Individualism vs. collectivism: is the degree to which individuals are

supposed to look after themselves or remain integrated into groups usually
around the family

5. Long term vs. short-term orientation: refers to the extent to which a

culture programs its members to accept delayed gratification of their material,
social and emotional needs.

The differences in cultural values were shown by the study of Hofstede (2001),
which involves 60, plus countries where each one of them was classified on
these parameters. These cultural differences may effect motivational factors,
collectivism at work place, organizational structure design etc. Various

studies have tried to study these differences. The difference in cultures has been
associated with perceptions and paradoxes. The cultural differences and varying
approaches lead to significant difference in business practices which must be
recognized by the trainers and employees receiving expatriate assignment.

33
  HOW DO PEOPLE AND PRACTICES DIFFER ACROSS
CULTURES?

The differences in cultures lead to significant differences in the way people react
to a stimulus. The motivational needs of the managers and executives vary
across the cultures. The motivational factors that work in India may not be
relevant in China, hence the expatriates will need to understand the basic
differences in the employee behavior. The production facilities of firms may be
similar across all the subsidiaries but the employee behavior in these facilities
may not remain the same. One of the relevant examples in this context is failure
of Japanese management technique like Quality Circles in India. The culture
differences effect the managerial decisions related to performance appraisals in
multicultural workplaces and decisions in international business context.

Along with the business practices and values significant amount of research have
been conducted in the context of cross-cultural negotiations. The cross-cultural
differences in the negotiation game can be conceptualized along four basic
dimensions: collectivism-individualism, power distance, communication context,
and the conception of time (Cohen, 1997- as cited by Bazerman, Curhan,

Moore and Valley, 2000). The time factor becomes important in the context of
cross border acquisitions as people belonging to different cultures have different
perceptions related to time, while in some cultures people prefer to start and
finish meeting on time (Example: USA), in other people may prefer to take time of
their own (Example: Latin America)(Mayfield, Mayfield, Martin, Herbig, 1997).
The time factor also refers to relationship dynamics of negotiations. While in a
more collectivist culture, people

may prefer to develop relationships during negotiations, people in more

individualistic culture like USA may not prefer to bring relationship dimension in
the negotiations (Mayfield, Mayfield, Martin, Herbig,

34
1997). The norms and values related to the negotiations differ according to the
culture: perceptions about negotiation to be strategic or synergetic, criteria for
selecting the negotiator, importance given to relationship building, concern for
protocol and formality etc. The way emotions are expressed in the various
cultures may differ, for example the face expressions and hand gestures may
convey different meanings in different culture.

 IMPACT OF DEALING WITH A DIFFERENT

CULTURE
The cultural change leads to cultural shock, which is a mental state of stress
caused by acute changes in the culture. The expatriates tend to feel lonely
because all of a sudden every thing changes including the work environment,
peers, processes and to an extent organizational culture and value system.

The employees react by comparing the new culture to their own values and
beliefs and at times are unable to accept the vast difference between the two.
The process of encountering and accepting the new changes or in other words
process of acculturation can be classified in four stages (Nicola, 1993)
 Initial stage of elation and optimism
 Period of frustration, depression and confusion
 Gradual improvement of mood leading to optimism and satisfaction
 Mastery stage

Oberg described four stages of adjustment:

 STAGE I, the initial, or honeymoon stage;

 STAGE II, the disillusionment, or culture shock stage;

 STAGE III, the adjustment, or adaptation stage; and

 STAGE IV, the mastery stage.

35
The honeymoon stage is a period lasting less than two months. Here the
employee is thrilled with the new experience. The culture shock stage occurs as
the individual copes seriously with living in the new

culture on a daily basis, as a lack of understanding of the culture inhibits

awareness of what is appropriate, or inappropriate, behavior in the new cultural
environment, resulting in confusion, frustration, tension and depression. The
frustration occurs as the person begins to realize that past behaviors are
inappropriate in the host culture but has not yet learned what behaviors to
substitute. The adjustment stage is characterized by increased ability to adapt in
the new culture; and, in the mastery stage, adjustment is about as complete as
possible, and anxiety is largely gone.

 DEFINING CROSS-CULTURAL TRAINING AND ITS

OBJECTIVES

The cross-cultural training in general can be defined as “Any intervention aimed

at increasing an individual’s capability to cope with and work in foreign
environment” (Tung, 1981, in Zakaria, 2000). Hence cross-cultural training
involves all the methods like lectures, simulation etc. used to make the person
familiar with a different culture.

The term cross-cultural training hence is broad enough to include differences in

areas like language abilities, business etiquettes, beliefs and values, social
system, negotiating styles etc. of any culture. The cross-cultural has also been
defined as “Formal methods to prepare people for more effective interpersonal
relations and job success when they interact extensively with individuals from
cultures other than their own” (Brislin and Yoshida, 1994). The term job success
here seems to be slightly ambiguous, as the factors defining success on an

36
expatriate assignment can include organizational values, earning respect from
peers and subordinates, technical skills, interpersonal and relationship
management skills etc. The advantages from cross-cultural training have been
listed as following (Zakaria, 2000: 2):

 A means for constant switching from an automatic, home culture international

management mode to a culturally adaptable and acceptable one

 An aid to improve coping with unexpected events and cultural shock in a new
culture

 A means to reduce uncertainty of interactions with foreign nationals

 A means for enhancing expatriates coping abilities

Hence cross-cultural training can be seen as a tool for improving the corporate
culture and practices by constantly learning through induction of foreign nationals
in the organizations. Further the cross-cultural training will help to reduce the
psychological stress and cultural shock which often lead to failure of expatriates.

 THE 10 BENEFITS OF CROSS CULTURAL TRAINING

How can cross cultural training positively impact individuals and teams? Cross
cultural differences can and do impede upon communication and interpersonal
relationships. In the business world this occurs daily, where people from different
cultures interact and are expected to perform and make decisions. Cross cultural
training aims to develop awareness between people where a common cultural
framework does not exist in order to promote clear lines of communication and
better relationships.

37
Cross cultural training has many benefits to be gained by both participants and
businesses. For participants in cross cultural training, the 10 main benefits are
that it helps:

 PEOPLE LEARN ABOUT THEMSELVES:

Through cross cultural training, people are exposed to facts and information
about their own cultures, preconceptions, mentalities and worldviews that they
may otherwise not have contemplated. Cross cultural training helps people learn
more about themselves through learning about others.

 ENCOURAGE CONFIDENCE:
Cross cultural training promotes self-confidence in individuals and teams through
empowering them with a sense of control over previously difficult challenges in
the workplace

 BREAK DOWN BARRIERS:

All of us have certain barriers such as preconceptions, prejudices and
stereotypes that obstruct our understanding of other people. Cross cultural
training demystifies other cultures through presenting them under an objective
light.

 BUILD TRUST:
When people’s barriers are lowered, mutual understanding ensues, which results
in greater trust. Once trust is established altruistic tendencies naturally manifest
allowing for greater co-operation and a more productive workplace.

 MOTIVATE:
One of the outcomes of cross cultural training is that people begin to see their
roles within the workplace more clearly. Through self-analysis people begin to

38
recognize areas in which they need to improve and become motivated to develop
and progress.

 OPEN HORIZONS:
Cross cultural training addresses problems in the workplace at a very different
angle to traditional methods. Its innovative, alternative and motivating way of
analyzing and resolving problems helps people to adopt a similarly creative
strategy when approaching challenges in their work or personal lives.

 DEVELOP INTERPERSONAL SKILLS:

Through cross cultural training participants develop great ‘people skills’ that can
be applied in all walks of life. By learning about the influence of culture, i.e. the
hidden factors upon people’s behaviors, those who undertake cross cultural
training begin to deal with people with a sensitivity and understanding that may
have previously been lacking.

 DEVELOP LISTENING SKILLS:

Listening is an integral element of effective and productive communication. Cross
Cultural training helps people to understand how to listen, what to listen for and
how to interpret what they hear within a much broader framework of
understanding. By becoming good listeners, people naturally become good
communicators.

 PEOPLE USE COMMON GROUND:

In the workplace people have a tendency to focus on differences. When cross
cultural communication problems arise the natural inclination is to withdraw to
opposing sides and to highlight the negative aspects of the other. Cross cultural
training assists in developing a sense of mutual understanding between people
by highlighting common ground. Once spaces of mutual understanding are

39
established, people begin to use them to overcome culturally challenging
situations.

 CAREER DEVELOPMENT:
Cross cultural training enhances people’s skills and therefore future employment
opportunities. Having cross cultural awareness gives people a competitive edge
over others especially when applying for positions in international companies with
a large multi-cultural staff base.

Misinterpretations on account of cultural factors can be damaging to a company’s

business. The need is for greater understanding and adaptability. Not
surprisingly, most organizations now consider the adaptability of candidate’s right
from the recruitment stage. Indeed, adaptability is an essential factor in today’s
global business environment

 DESIGN OF CROSS-CULTURAL TRAINING

Increased demand for cross-cultural training has led to more sophisticated

training programs, but it has also caused some adverse changes in the industry”,
inter culturalists say. In the 1980's, training was usually offered by individuals or
small consultancy groups.

For this reason trainers seem to come from a vast range of backgrounds:
teachers, missionaries, aid workers, international business people, sociologists,
social workers, students — virtually anyone who has lived and worked abroad.
Most are expected to speak at least one foreign language. Many companies
which offer these services now require that their trainers have completed some
kind of intercultural training course.

40
In recent years, more trainers are completing doctorate programs giving them a
base in intercultural communication theory, but successful trainers could just as
easily be expat spouses who have knowledge on the ground experience.
Now many of these small businesses have been bought out by larger relocation
firms. Trainers worry that these larger groups do not always take into account the
individual needs of the client.

The issues or focus points are very important in the cross-cultural as it is required
to choose between culture specific or culture general training, which areas of the
culture to focus upon and what are the personal requirements of the person who
might have to deal with a situation like this or who is shifting to a different culture
for work. Following are some issues for the cross-cultural training:

 DIFFERENT ASPECTS OF TIME LIKE PUNCTUALITY-

The time factor here involve two dimensions that are punctuality and relationship
dimension. While in some cultures like USA starting and ending on time are very
important in others like South American countries that may be considered
exceptional. Some cultures prefer to take time for relationship building, which
may not be acceptable at all in others. Hence cross-cultural barriers related to
time need to be taken care of.

 LINGUISTIC BARRIERS-
The English is being used for most transactions but then usage of English tends
to change with the country contexts. For example the pronunciation in India is
significantly different from the American way. Secondly certain terms may have
different meaning in different languages; hence context also plays an important
role.
In case of countries with different language the expatriate must be trained in
opening dialogues and discussions with the help of translators.

41
 DIFFERENT BUSINESS PRACTICES
like conduct in meeting and unstructured and open discussion. Hofstede’s (2001)
dimensions like power distance can play an important role in situations like
conduct during the meetings. In cultures with lower power distance the
employees may tend to call their bosses with their first names while this may be
impossible in cultures with higher power distances. Hence developing a first hand
knowledge about the practices is very important.

 CULTURAL STRESS
(ambiguity and difference of perceptions)- The training should also involve
methods to counter stress and to interpret situations. The expatriates will have to
understand the situations on their own and then form perceptions.The training
should avoid any kind of stereotyping where trainees may be lead to believe
certain things about any culture.

The culture may broadly explain value system of a community or country but
every individual is different. Hence any individual with a pre-formed notion about
the culture will be shocked to see people different from his beliefs leading to lot of
confusion and stress.

 BODY LANGUAGE AND GREETINGS-

The way emotions are expressed in the various cultures may differ, for example
the face expressions and hand gestures may convey different meanings in
different culture.

The cross-cultural training should have components related to both general

orientation and specific skill development. The component of general orientation
here consists of self assessment (dealing with change, stress management and
identifying attributes) and cultural awareness (general dimensions, national
values and work place incidents). The specific development on the other hand
consists of knowledge acquisition (area studies, language studies and host

42
attitudes) and skills training (case studies, area simulation and behavior
modeling). Hence the training should focus on providing trainee

 the knowledge about national cultures and attitudes in the host country in the
first phase while in second phase the trainee should be made to through a
rigorous process of handling the situations in a simulated environment. This
will help the trainee to acquire hands-on experience. The paper by Nicola
(1993) Feed back Getting beyond culturally determined stereotypes

 How to raise and deal with cultural stereotype

 How to counsel employees

 Coaching and team building

 Resolving conflicts (those including various ethnic groups at work place)

 Counseling so as to go beyond all kinds of stereotypes and perceptions.

suggests following issues for cross-cultural training:

After the internet revolution things have vastly changed for various organizations.
For example many firms use internet as a medium to coordinate between
different employees working in different locations as a team like one of the team
members would be in India, other one might be in Europe and third one in North
America.

The group dynamics in these situations becomes very important; hence the
employees must also be trained at handling people from diverse cultures at the
same time ensuring equal treatment and opportunities for all. One of the most
important factors that is often forgotten while designing the training programs is
the requirement of the employees, the design of training program should be

43
made keeping in mind the length of stay in the host country, type of function he
will have to perform, degree of socialization required by the employee and the
personal characteristics of the employees (extraversion, interpersonal skills etc.).

Hence cross-cultural training program should be customized for each employee

to certain extend. It’s not only the employee who needs to be trained; the family
of employee should also be trained on certain issues like cultural differences.
Many firms have started giving due importance to the training of spouse because
the socialization of expatriate and job success to a large extent will depend upon
socialization of his family.

 THE TRAINING METHODS

The cross-cultural training evolved with usage of lecture method (originated from
university of Illinois- as referred by Bhawuk and Brislin, 2000). This development
was followed by usage of contrast American method which was named as this
method was used to train for contrasting cultural experiences. The scenarios and
cultural assimilators were later additions to the methods. The self reference
criterion method was developed from cultural analysis system developed in 1966.
The first usage of the cultural

assimilators was on the American soldiers in 1972. The existence of cultural

general assimilator is relatively new with usage starting in 1986. The experiential
and area simulation were developed in 70’s.
The various cross-cultural training methods can be explained as follows (as
described by Bhawuk and Brislin, 2000):

1.CULTURAL ASSIMILATOR: The cultural assimilator is a tool that

consists of a number of real life scenarios describing puzzling cross-cultural

44
interactions and expectations. The scenarios here can be defined as critical
incidents which describe interactions between host and expatriates which involve
misunderstanding related to cultural differences.

2. CONTRAST AMERICAN METHOD:

This method involves demonstration of behaviors that are completely opposed to
what is seen in the current context of culture. This was used by Stewart in
America to train people going abroad hence was named contrast American.

3.SELF REFERENCE CRITERION (SRC): Unconscious reference to

one’s own cultural values in communication with people who are from other
cultures. This method was developed by Lee (1966), who proposed 4 step
procedure to overcome self reference criteria. The first step involves defining any
problem of situation in terms of the expatriate’s own culture, followed by definition
in the terms of host culture. The bias created by SRC is analyzed and removed in
third stage which is followed by solution of the simplified business problem.

4.AREA SIMULATION:
The simulation is creating natural situation of interaction with people from other
culture. This can be achieved using some actors who will interact with the trainee
according to some predefined script.

5.CULTURAL SELF AWARENESS MODEL:

The cultural awareness model includes usage of video tapes with themes and
role plays. If the trainee is able to understand how his culture is different he
would be able to accept the differences encountered in the real life interactions in
a better manner.

The study by Caligiuri et. al.,2001 refers to the study by Brislin et al(1983)
outlined the frequently used cross-cultural training methodologies during early 90

45
  “Fact-oriented training;

 Attribution training, associated with the culture assimilator to enable

trainees to internalize values and standards of the host culture;

 Cultural awareness training, the study of the trainee’s home culture and its
effect on his/her behavior to enable the trainee to understand the nature of
cultural differences;

 Cognitive-behavior modification, to assist trainees to be able to obtain

rewards and avoid punishment in the host culture;

 Experiential learning, active participation learning about a specific host

culture; and Interaction learning, for trainees to feel more comfortable with
host nationals and to learn details about life in the host country. Language
training aids in communications demonstrate an attitude of attempting to
learn about the host culture enables one to be polite and permits
understanding”.

 DEFINING EXPATRIATE COMPETENCIES

The expatriates need to perform the same set of functions but in a completely
different environment which can cause lot of stress to the person. The cultural
stress will have significant impact on various aspects of the job related behavior.
Most of the expatriate failures are related lack of adjustment in new

culture. Hence while defining the competencies for the expatriates human
resource professionals also need to assess the soft skills of employees which will
be handy in the new environment like tolerance of cultural difference, ability to

46
adapt new culture and interpersonal relationships. The cross-cultural skills
required for successful expatriate assignment can be listed broadly as (Hofstede,
2001):
 The capacity to communicate respect
 The capacity to be non judgmental
 The capacity to understand relativity of one’s own knowledge and
perception
 The capacity to display empathy
 The capacity to be flexible
 Tolerance for ambiguity

The focus is clearly on the soft skills and emotional maturity. The people
undertaking foreign assignments must be mature and stable enough to accept
the existence of cultural differences. They should also be able to understand the
context of various situations and happening, which calls for objective evaluation
of a situation without bringing in one’s own biases and perceptions. The cross-
cultural competencies have can be viewed as combination of three different
dimensions that are self-maintenance dimension (mental health, psychological
well-being, stress reduction and self confidence), relationship dimension (ability
to foster relationship with the people of host nations and perceptual dimension
(perceptions of host nation’s culture and its social systems. Thus perceptions
have been given an important role in defining competencies. Most often
employees tend to make perceptions based little information they receive through
the media or stories. This leads to general stereotyping causing formation of
wrong notions about the host culture.

The employee should instead form opinions and beliefs related to the host nation
only after spending considerable amount of time over there. The events which
are used to form these perceptions should be seen in depth using the back
ground information like social value system, political system and cultural values.
Only then a clear picture of host nation culture will emerge. The employees on

47
expatriate assignments must be able to decode various verbal and non-verbal
ways of communication used in the new culture and work in unstructured and
ambiguous situations

Hence the employees should have the ability to question the perceptions and
resolve conflicts arising out of the cultural differences. The stress management
skills have been given importance because the

cultural differences and lack of proper socialization along with cultural shock
causes stress on the expatriates. The stress might also arise from living at a
distance from the family

International Business Etiquette Tips by Lydia Ramsey

To say that today's business environment is becoming increasingly more global
is to state the obvious. Meetings, phone calls and conferences are held all over
the world and attendees can come from any point on the globe. On any given
business day you can find yourself dealing face-to-face, over the phone, by e-
mail and, on rare occasions, by postal letter with people whose customs and
cultures differ your own. You may never have to leave home to interact on an
international level.

 BUILDING RELATIONSHIPS
Few other people are as eager to get down to business as we Americans. So
take time to get to know your international clients and build rapport before you
rush the bottom line. Business relationships are built on trust that is developed
over time, especially with people from Asia and Latin America.

 DRESSING CONSERVATIVELY
Americans like to dress for fashion and comfort, but people from other parts of
the world are generally more conservative. Your choice of business attire is a

48
signal of your respect for the other person or organization. Leave your trendy
clothes in the closet on the days that you meet with your foreign guests.

 OBSERVE THE HIERARCHY

It is not always a simple matter to know who the highest-ranking member is when
you are dealing with a group. To avoid embarrassment, err on the side of age
and masculine gender, only if you are unable to discover the protocol with
research. If you are interacting with the Japanese, it is important to understand
that they make decisions by consensus, starting with the younger members of
the group. By contrast, Latin people have a clear hierarchy that defers to age.

 UNDERSTANDING THE HAND SHAKE:

With a few exceptions, business people around the world use the handshake for
meeting and greeting. However, the American style handshake with a firm grip,
two quick pumps, eye contact and a smile is not universal. Variations in
handshakes are based on cultural differences, not on personality or values. The
Japanese give a light handshake. Germans offer a firm shake with one pump,
and the French grip is light with a quick pump.
Middle Eastern people will continue shaking your hand throughout the greeting.
Don't be surprised if you are occasionally met with a kiss, a hug, or a bow
somewhere along the way.

 USING TITLES AND CORRECT FORMS OF ADDRESS

We are very informal in the United States and are quick to call people by their
first name. Approach first names with caution when dealing with people from
other cultures. Use titles and last names until you have been invited to use the
person's first name. In some cases, this may never occur. Use of first names is
reserved for family and close friends in some cultures.

49
  EXCHANGING BUSINESS CARDS
The key to giving out business cards in any culture is to show respect for the
other person. Present your card so that the other person does not have to turn it
over to read your information. Use both hands to present your card to visitors
from Japan, China, Singapore, or Hong Kong. When you receive someone
else's business card, always look at it and acknowledge it. When you put it away,
place it carefully in your card case or with your business documents. Sticking it
haphazardly in your pocket is demeaning to the giver. In most cases, wait until
you have been introduced to give someone your card.

 VALUING TIME
Not everyone in the world is as time conscious as Americans. Don't take it
personally if someone from a more relaxed culture keeps you waiting or spends
more of that commodity than you normally would in meetings or over meals.
Stick to the rules of punctuality, but be understanding when your contact from
another country seems unconcerned.

 HONORING SPACE ISSUES

Americans have a particular value for their own physical space and are
uncomfortable when other people get in their realm. If the international visitor
seems to want to be close, accept it. Backing away can send the wrong
message. So can touching. You shouldn't risk violating someone else's space
by touching them in any way other than with a handshake.

Whether the world comes to you or you go out to it, the greatest compliment you
can pay your international clients is to learn about their country and their
customs. Understand differences in behavior and honor them with your actions.
Don’t take offense when visitors behave according to their norms.
Following shall help one avoid embarrassing moments:

50
  HABITS FROM HOME
One of the trickiest things about working with foreign counterparts is the risk that
small, everyday gestures could be wildly misinterpreted. For example, nodding
your head up and down in North America signifies your agreement with a person.
But in Bulgaria, the same action would tell the person you're meeting with that
you're disagreeing with them! Physical gestures play an important role when
meeting in a foreign country. Visit the Web of Culture to find out about the
appropriate (and inappropriate) gestures of the nation you're visiting.

 CULTURAL CONVENTIONS
What to wear, which title to use, how to negotiate and whether or not to bring a
gift are just some of the quandaries business travelers face. For example,
Thailand, it's customary to exchange gifts during your second business meeting.
In China, however, gift giving is considered a form of bribery and is actually
illegal!
In North America, it's common to call business colleagues by their first names,
but this would be inappropriate in Japan.
Japanese acquaintances should always addressed by their title or by their last
name with the prefix san.
However, the prefix san should not be used for a child, spouse or an absent
colleague.
Visiting a foreign culture can be bewildering for even the most intrepid business
traveler.

 VIRTUAL VENUES
And don't think you can ignore foreign etiquette if you're meeting over the
Internet! Virtual meetings still need to reflect the customs and traditions of the
individuals you're meeting with so many of the same rules apply. Virtual meetings
also have the added difficulty of not physically being with the people you're
meeting.

51
  TIPS FOR BUSINESS GIFT GIVING

Throughout the year you have worked to develop strong business relationships.
The holiday season offers an appropriate time for saying thank you and
enhancing these relationships.

Holiday gift giving has become a tradition in the business world. More and more
businesses are realizing the importance of such a gesture. A seasonal "thank
you" gift can convey goodwill as well as acknowledge and express your
appreciation to clients, customers and associates. Handled appropriately, the
impact for your business can be very beneficial.

Gift giving should be done only if you currently do business with the organization.
Sending a gift when you are in the bidding process, or in negotiations on a
contract may be misinterpreted as bribery or an attempt to gain inappropriate
influence.

1.Your relationship with the recipient should play an important part in the gift
giving decision. If your client is distant or not particularly friendly, do not assume
the gift will strengthen the relationship.

2.Avoid alcohol unless you know the recipient on a close personal basis. Many
people have religious and/or personal issues with alcohol.

3.If you have contact with many people in the company, consider sending a gift
suitable for sharing within an office setting. A food basket or other gourmet food
gift is appropriate. Make certain the items do not require preparation, are non-
perishable, and are securely packaged if shipment is required.

52
4.If the gift is for an individual, try to tailor the gift to the individual's hobbies or
interests. Make certain the gift cannot in any way be misconstrued as "too
personal", especially across gender lines.
 Keep logo on gift items small & discreet so as not to appear as an
advertisement. Do not put a logo on a gift if you want to create the
impression that the gift is coming from you personally.

 When possible, personal or messenger delivery is preferable. When this is

not practical, make certain that gifts are accompanied by a brief,
personalized, handwritten note or signature.

 Make your gift stand out from the rest by sending it as a Thanksgiving or
New Year's gift.

a. Thanksgiving: Yours will be the first gift to arrive, Thanksgiving has no

religious connotations, and what better time to say "Thank You."

b. New Year's: After all the excitement and partying has ended, and
everyone is back to work, your gift, with a note wishing "A Happy, Healthy
& Prosperous New Year!" will be a nice surprise.

c. Check the corporate policy: Large companies may have a no gift

policy. Phone the Personnel Dept. of a company for their guidelines.

If you have any concerns about the appropriateness of giving a gift, or how it
might be construed, reconsider. Choose a beautiful card and write a personal
note. Send a donation to charity. Always guard against even the appearance of
impropriety. It can only hurt a business relationship...it will never help.

53
  CHINA

[Red with a large yellow five-pointed star and four smaller yellow five-pointed
stars (arranged in a vertical arc toward the middle of the flag) in the upper hoist-
side corner]

Column1
200
0 Column1
PDI IDV MAS UAI LTO

Country PDI IDV MAS UAI LTO

China * 80 20 66 30 118

Geert Hofstede analysis for China has Long-term Orientation (LTO) the highest-
ranking factor (118), which is true for all Asian cultures. This Dimension indicates
a society's time perspective and an attitude of persevering; that is, overcoming
obstacles with time, if not with will and strength.

The Chinese rank lower than any other Asian country in the Individualism (IDV)
ranking, at 20 compared to an average of 24. This may be attributed, in part, to
the high level of emphasis on a Collectivist society by the Communist rule, as
compared to one of Individualism.

The low Individualism ranking is manifest in a close and committed member

'group', be that a family, extended family, or extended relationships. Loyalty in a
collectivist culture is paramount. The society fosters strong relationships where
everyone takes responsibility for fellow members of their group.

54
China’s religion is officially designated as Atheist by the State, although the
concepts and teachings of the ancient Chinese philosopher Confucius (500BC)
are woven into the society at large. Some religious practice is acceptable in
China; however, the government sets rigid limits.

 MAKING APPOINTMENTS
 Being late for an appointment is considered a serious insult in Chinese
business culture.
 The best times for scheduling appointments are April to June and
September to October.

 Business and government hours are 8:00 a.m. to 5:00 p.m., Monday
through Saturday. There is, however, a five-day work week in larger cities.
Do avoid plans to visit government offices on Friday afternoon, because
this is sometimes reserved for 'political studying' of the officials.

 Most Chinese workers take a break between 12:00 p.m.- 2:00 p.m.
Practically everything "shuts down" during this period, including elevator
and phone services.

 When scheduling your appointments, be sensitive to holidays such as

Chinese New Year. During May Day, or the National Day, many
businesses will be closed for up to a week during this period. The date of
this occasion varies from year to year due to an official advisory to allow
the long holidays.

 GUIDELINES FOR BUSINESS DRESS

 In Chinese business culture, conservative suits and ties in subdued colors
are the norm. Bright colors of any kind are considered inappropriate.

55
  Women should wear conservative suits or dresses; a blouse or other kind
of top should have a high neckline. Stick with subdued, neutral, colors
such as beige and brown. Because of the emphasis on conservative,
modest, dress in Chinese business culture, flat shoes or very low heels
are the main footwear options for women. This is true especially if you are
relatively much taller than your hosts. High heels are acceptable only at a
formal reception hosted by a foreign diplomat.

 Men should wear suits and ties to formal events; tuxedoes are not a part
of Chinese business culture.

 Jeans are acceptable casual wear for both men and women.

 Shorts are reserved for exercise.

Before your visit, it will be a good idea to prepare yourself by studying aspects of
Chinese culture, history, and geography. Your hosts will appreciate your
initiative.
 Negative replies are considered impolite. Instead of saying 'no', answer
'maybe', 'I'll think about it', or 'We'll see' and get into specifics later.

 You may be asked intrusive questions concerning your age, income, and
marital status. If you don't want to reveal this information, remain polite and
give an unspecific answer.

 Make an effort to learn and use at least a few words in Chinese; your initiative
will be noticed and appreciated. Make sure you know the meaning and
appropriate occasions for what you say.

 During a meal, expressing enthusiasm about the food you are eating is a
welcome, and usually expected, topic of conversation.

56
  GERMANY

[Three equal horizontal bands of black (top), red and

gold] Germany is a modern and stable democracy.
Tourist facilities are highly developed. In larger towns,
many people can communicate in English.

Country PDI IDV MAS UAI LTO

Germany 35 67 66 65 31

100
Column1
0 Column1
PDI IDV MAS UAI LTO

 MAKING APPOINTMENTS

 Never underestimate the importance of punctuality in German business

culture.

 Be prepared to make an appointment for most things. Germans don't

usually feel comfortable discussing especially serious things “on the go”,
so don't expect to be able to just drop into the office unannounced for any
detailed discussions. Make your appointments well in advance. If you
must be late for any reason, it's important that you call and notify the
person who is expecting you. Moreover, you should give a plausible
explanation for the delay.

 The preferred times for business appointments are between 10:00 a.m.
and 1:00 p.m. or between 3:00 p.m. and 5:00 p.m. Avoid scheduling
appointments on Friday afternoons, as some offices close by 2:00 p.m. or
3:00 p.m. on Fridays.

57
 Casually changing the time and place of an appointment is not
appreciated. Allow for at least 24 hrs, if you can, to change or cancel
appointments. Be prepared to offer a plausible explanation.

 Be sensitive to vacation and festival periods here. Germans generally

have six weeks of paid vacation, which means someone is almost always
“in Urlaub” [“on holiday”]. For instance,

 Germans commonly take long vacations during July, August, December

and Easter, when schools break.

 GUIDELINES FOR BUSINESS DRESS

 Dress in corporate business and banking is generally formal, dark and

conservative suits for both men and women. Otherwise, business dress is
relatively casual. Dress codes in the IT sector are very casual.

 Khakis with a simple jacket/blazer would be inappropriate, especially for

first meetings or contacts.

 Germans tend to dress in more conservative, muted colors, both in

business and social environments. Dress shoes worn with jeans and a
tastefully-coordinated ensemble is quite normal for adult men and women.

 Women should also avoid excessively ornate jewelry or displaying items

of conspicuous wealth, especially in the former East Germany.

58
 When you receive an invitation stating “informal” dress, don't assume
you'll be welcome arriving in a T-shirt and sweatpants. For a social
gathering, informal more often than not means tastefully coordinated
clothes.

 Most restaurants do not require a tie for men, although the upscale
establishments expect both men and women to arrive well dressed.

 WELCOME TOPICS OF CONVERSATION

 “Small talk” with strangers does not have a significant social function in
German culture as it does in very relationship-oriented cultures [e.g.
Mediterranean, South American, African, Middle Eastern countries] or the
large immigration countries.

 Be prepared to take the first step as the newcomer to introduce yourself to

an established group when you arrive in a new environment [e.g. office,
student dormitory, social gathering, new

 neighborhood, etc.]. Unless you are specifically invited to join a group, do

not automatically expect the established group to send out the “welcome
wagon”. There is a recognizable

 difference in the communication behavior extended to “friends” [“Freunde”]

and “acquaintances” [“Bekannte”]. Be prepared for unsolicited attempts to
start a conversation with a complete stranger in a new environment to be
awkward, often taking the form of very stilted Qs & As.

 The concept of “mingling” doesn't really exist in the German culture.

59
  Giving compliments is not part of German business protocol and can often
cause embarrassment and awkwardness. Employees would, of course, be
appreciative of praise from superiors, but do not expect it. Compliments,
especially from strangers or very casual acquaintances can, in fact, be
taken with suspicion [“What does he/she really mean to say or want?”].

 Germans traditionally use “Wie geht es Ihnen?” [“How are you?”] as a

literal question that expects a literal answer, in contrast to the common
English usage of “How's it going?” to simply meaning “Hi”.

 Even if you are staying for several days, do not expect German colleagues
to take you out every evening for meals and an evening program, as they
will assume that you will want to have time to yourself after business
hours, since this has high priority for them in their culture. If you are
hosting German guests, keep in mind that it may not be necessary to
arrange a full program for them. It is very likely that they will want some
time for themselves to pursue their own interests or simply to relax a bit
away from business.

 OVERVIEW OF GERMAN MANAGEMENT AND PRACTICES

German management, as it has evolved over the centuries and has established
itself since World War II, has a distinct style and culture. Like so many things
German, it goes back to the medieval guild and merchant tradition, but it also has
a sense of the future and of the long term.

The German style of competition is rigorous but not ruinous. Although companies
might compete for the same general market, as Daimler-Benz and BMW do, they

60
generally seek market share rather than market domination. Many compete for a
specific niche. German companies despise price competition. Instead, they
engage in what German managers describe as Leistungswettbewerb,
competition on the basis of excellence in their products and services. They
compete on a price basis only when it is necessary, as in the sale of bulk
materials like chemicals or steel.

The German manager concentrates intensely on two objectives: product quality

and product service. A German manager believes deeply that a good-quality
production line and a good-quality product will do

more for the bottom line than anything else. Relations between German
managers and workers are often close, because they believe that they are
working together to create a good product.

If there is a third objective beyond quality and service, it is cooperation--or at

least coordination--with government. German industry works closely with
government.

The German management style is not litigious. Neither the government, the
trade unions, nor the business community encourages litigation if there is no
clear sign of genuine and deliberate injury. Firms do not maintain large legal
staffs. Disagreements are often talked out, sometimes over a conference table,
sometimes over a beer, and sometimes in a gathering called by a chamber of
commerce or an industrial association. Differences are usually settled quietly,
often privately. Frequent litigation is regarded as reflecting more on the accuser
than on the accused. Because of these attitudes, Germany has comparatively
few lawyers.

61
  INDIA
[Three equal horizontal bands of saffron
(subdued orange) (top), white, and
green with a blue chakra (24-spoked
wheel) centered in the white band;
similar to the flag of Niger, which has a
small orange disk centered in the white
band]
India, the world's largest democratic republic, has a very diverse population,
geography and climate. India is the world's second most populous country, and
the world's seventh largest country in area.

Country PDI IDV MAS UAI LTO

India 77 48 56 40 61

India has Power Distance (PDI) as the highest Hofstede Dimension for the
culture, with a ranking of 77 compared to a world average of 56.5. This Power
Distance score for India indicates a high level of inequality of power and wealth
within the society. This condition is not necessarily subverted upon the
population, but rather accepted by the population as a cultural norm.

India's Long Term Orientation (LTO) Dimension rank is 61, with the world
average at 48. A higher LTO score can be indicative of a culture that is
perseverant and parsimonious.

India has Masculinity as the third highest ranking Hofstede Dimension at 56,
with the world average just slightly lower at 51. The higher the country ranks in
this Dimension, the greater the gap between values of men and women. It may
also generate a more competitive and assertive female population, although still
less than the male population.

62
India's lowest ranking Dimension is Uncertainty Avoidance (UAI) at 40,
compared to the world average of 65. On the lower end of this ranking, the
culture may be more open to unstructured ideas and situations. The population
may have fewer rules and regulations with which to attempt control of every
unknown and unexpected event or situation, as is the case in high Uncertainty
Avoidance countries.

 DEMOGRAPHIC PROFILE

Contrary to its image, India is a surprisingly young country, with a median age of
24. Around 40% of its population falls in the rage of 20-44 years. Compared to
the older generation, this younger generation is more confident, has more liberal
and consumerist values, and is more ambitious. This is a quite recent change in
the country's demographics, and has implications for changes in cultural values.
There is a wide urban-rural divide in India. Indian society is primarily agrarian.

More than 70% of India's population lives in villages, and subsists on agriculture.
However, the contribution of agriculture is only 23%.
India has one of the largest populations of technically qualified manpower,
comprising around 15 million doctors, engineers and scientists. On the other
hand, the literacy rate in the country is just over 50%.

India has a large linguistic diversity. It has 18 constitutionally recognized major

languages, in addition to around 1,600 other languages and dialects. There is no
single language which is spoken by all Indians. According to the constitution,
Hindi is the official national language. However, less than 40% of people in India
can speak or understand Hindi. English is the co-official language, since it is
spoken by most of the educated Indian class, and is the common language used
in business situations.

63
 MAKING APPOINTMENTS

 Indians appreciate punctuality and keeping one's commitments. However,

many visitors to India find it very disconcerting that often Indians
themselves are quite casual in keeping their time

 commitments. Rather, for most Indians, the plans and schedules are
contingent on other people and events, and therefore can--and do--get
changed.

 It is advisable to schedule your appointment at least a couple of months in

advance. If you are making your appointments before coming to India, do
emphasize that you will be in India for a short period of time, if this is the
case. It is also useful to reconfirm your meeting a few days before the
agreed upon date.

 There is a distinct difference in the cultures of the government

departments and business organizations. Compared to a business
organization, it is normally more difficult to get an appointment with
officials in a government department.

 Do be prepared for last minute changes in the time and place of your
meeting. It is useful to leave your contact details with the secretary of the
person, so that, in case there are changes, you can be informed.

 Indian addresses can be confusing. This is so because the pattern of

numbering the buildings varies across different places, even in the same
city.

 Normal office hours are 10:00 a.m. to 5:00 p.m.

 Lunch is for one hour, between 12:00 p.m. and 2:00 p.m.

64
  In recent years, there is a trend towards luncheon meetings and 'power
breakfasts', which are often the times when business is discussed.

 Dinner appointments for business purposes are rare. Official dinners are
mostly hosted as large gatherings, and are mainly meant for socializing
and getting to know each other.

 The work-week differs across organizations and sectors.

 The business and official work in India are done using the western
'Christian' calendar. The convention for writing dates is dd/mm/yy, e.g.,
December 25th, 2004 will be written as 25/12/04.

 GUIDELINES FOR BUSINESS DRESS

In recent years, the dress code in Indian business settings has undergone a
transformation. Moreover, it also differs widely across regions and business
sectors. Therefore, it is difficult to make a generalization about the most
appropriate way to dress that will be valid across India. However, the following
points should assist you in making the right decision.

 Normal business dress for men is a suit and tie. However, since India has
a warm climate, often just a full-sleeved shirt with a tie is also acceptable.
It is also important to select neutral colors, which are subdued and not
very bright.

 For foreign women, pant-suits or long skirts, which cover the knees, are
more acceptable to wear. The neckline of the blouse or the top should be
high. For women, a salwar-suit is also acceptable for business dress.

 Jeans with a T-shirt or short-sleeved shirt are acceptable as casual wear

in informal situations for both men and women.

65
  You can wear casual dress if invited to a social gathering. However, if a
foreigner wears an Indian costume [kurta-pajama for men, and sari or
salwar-suit for women], this kind of dress is also appreciated, and often
seen as a gesture of friendship.

Most Indians enjoy good conversation on a variety of topics. Even in business

meetings, it is common and normal to start discussions with 'small talk' on other
unrelated issues. In fact, this is seen as a way of building rapport and trust. In
general, Indians are open and friendly, and compared to many countries in the
West, have a lesser sense of privacy. It is not unusual for a stranger to start up a
conversation with you on a flight or a train journey.

However, one must remember that discussing one's family and personal life is
normal among Indians. In fact, often enquiring about the other person's family is
seen as a sign of friendliness.

Indians seldom express their disagreement in a direct manner; open

disagreement is likely to be interpreted as being hostile and aggressive [though
expression of disagreement by someone who is superior or elder is, by and
large, acceptable]. Addressing others with respect

 When addressing a person, it is advisable to prefix the name with a 'Mr.',

'Mrs'. or 'Miss', or the professional title of the person ['Doctor' 'Professor']
unless the person asks you to refer to him by his/her first name.

 In general, people are addressed by their name [without the prefix] only by
close acquaintances, family members, or by someone who is older or
superior in authority.

 In North India, most people have a family name [e.g., Sharma, Patel,
Singh, etc.], and the names are written in the western style--first name
followed by the surname. Sometimes, there may also be a middle name,
such as 'Chandra', 'Kumar', 'Prasad', etc. For instance, Mr. Praveen
66
 Chandra Kulkarni will be addressed as Mr. Kulkarni--or as Praveen, if the
relationship is informal.

 In contrast, in southern states, men do not have a family name. Instead,

the name of one's father and/or the ancestral village/town is used for the
purpose. These are normally abbreviated and prefixed before the first
name. For instance, a south Indian name 'Kamundari Ranganthan
Gurumurthy' will be written as 'K. R. Gurumurthy', signifying that the
person's ancestral place is 'Kamundari', father's name is 'Ranganathan',
and his first name is 'Gurumurthy'. He will be addressed as Mr.
Gurumurthy--or if the relationship is informal, as just Gurumurthy.

 WHAT YOU SHOULD KNOW BEFORE YOU NEGOTIATE?

Like the rest of India, Indian business culture is also very diverse and
heterogeneous. While the following points would help in negotiating a deal, it is
important to be sensitive to, and appreciate, the diversity of Indian business
culture, which varies across regions, sectors, and ownership patterns.

 A large part of Indian businesses are family-owned or 'owned' by

members of different social communities. Among these, Parsi, Marwari,
Gujarati and Chettiar communities are the prominent ones, and have
controlling interests in some of the largest Indian business houses.
Though many of these business houses are quite modern/western in their
working and operations, and follow the international norms for doing
business - nevertheless, it is useful to understand their specific community
culture.

 In addition, there are differences between the government-owned public

sector companies, which are more often bureaucratic and hierarchical,
compared to many of their private sector counterparts, and the 'new
economy' service sector companies [IT, telecom, insurance, etc.], which

67
 are in turn more egalitarian and flexible than the traditional manufacturing-
sector firms.

 There are also regional differences in business etiquette. For instance,

broadly speaking, the southern Indian companies are more conservative
when compared to the north, or the western part of the country. These
sectors, in turn, tend to be more individualistic and assertive than the
eastern portion of India.

 Presenting and exchanging business cards are a necessary part of doing

business in India. You must bring plenty since people exchange business
cards even in non-business situations.

 English is the common language for conducting business, and therefore, it

is not necessary to get your card translated into any Indian language.

 INTERMEDIARIES, PROTOCOLS, AND THE NEGOTIATING PROCESS

 Indians are comfortable and open to negotiation, and an intermediary is

not required to establish one's credentials. If, however, you are
representing a lesser known country or a small company, it will help to get
some referrals from your other clients/partners in India.

 Indian laws and bureaucracy are quite intricate and cumbersome. Besides
the statutes of the Central government, there are numerous pieces of
legislation which differ considerably across the

 states. It is, therefore, advisable to hire an Indian lawyer or liaison person,

who can help you to maneuver through these intricacies.

68
 Try to get your first appointment with the person who is high in authority in
the concerned department/organization.

 You will often find that, as a sign of respect, the subordinates stand up
when the boss enters the meeting room. The best option is to get up from
your seat and greet him/her personally.

 Despite gradual changes in societal values, respect for age, loyalty to

one's family, community or group, and practice of certain religious rituals
are still observed in Indian work-settings, in varying degrees.

 The pace of business meetings in India is comparatively far more relaxed

than in some of the western countries, such as the United States.

 Indians are somewhat lax about time. Even if you arrive on time, it is likely
that the scheduled meeting may start with some delay, or that you are
kept waiting.

 Indians do not directly jump into business negotiations; in fact, that may be
seen as rude. Building a relationship is often considered a prerequisite to
doing business.

 Meetings normally start with small talk about non-work-related topics

[ranging from weather to whether your journey was comfortable], before
people start talking about business issues. Do not feel surprised if you are
asked some 'personal' questions about your family, children, etc.

 Similarly, showing hospitality is part of the negotiation process. Often

meetings start by offering tea/coffee and snacks.

69
 FINDINGS

 The business model of many upcoming industries like the information

technology sector, Telecom and Business Process Outsourcing, core
sector companies like Manufacturing and Mining is dependent heavily on
the foreign markets.

 This increases the need of professionals working in foreign cultural

settings.

 The merger and acquisition activity especially the cross-border

acquisitions have reached much higher levels

 China is a collectivist society and focuses on strong relationships while

Germany is an Individual oriented Society.

 Small talk is not appreciated in Germany while it is common in India.

Business is fact based in Germany and Communism influenced in China.

 Physical interactions are avoided in China and Japan.

 In Japan more impetus is on connections and relations, in India it is on

hospitability, in Germany it is on direct communication, in Malaysia it is on
specific set of rules and in China it’s on collectivism.

 Thus it is not easy to form business relationships in the vast pool of

cultures.

 A thorough training procedure is a must for a win-win situation.

70
 CONCLUSION

It is imperative that employees who are to be expatriated are well informed

regarding the challenges they might face in a foreign land. Coping with a foreign
culture both organizational and national needs well-planned preparation. A well
structured cross-cultural training will help the employees to prepare for coping
with the changes in the working styles, beliefs and values they are expected to
face. A large degree of uncertainty which an employee might face while moving
to a foreign land and culture can be reduced through organizational support in
terms of training. The huge costs that an organization might face due to
expatriate failure are of high concern. Preparing the employees for a foreign
assignment is mutually beneficial to the organization and the employee. For the
employees, a well delivered training can help in managing with the new
situations, while for the organization this helps in getting the best of the employee
in terms of work output through maintaining the employee morale and motivation.
With the growing influence of foreign markets and increasing growth prospects
for multinational business models, it is of high importance that companies
prepare their employees to be fit for global assignments.

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 RECOMMENDATIONS

 When organizations become cross-border entities, cross-cultural factors

start affecting every aspect of the business

 These cultural differences may affect motivational factors, collectivism at

work place, organizational structure design etc

 The term cross-cultural training hence is broad enough to include

differences in areas like language abilities, business etiquettes, beliefs
and values, social system, negotiating styles etc. of any culture.

 This task can be achieved by well designed cross-cultural training

programs which will help employees in coping up with the stress and
cultural shock while dealing with a new culture

 Cross cultural trainings help the companies to gain a competitive

advantage in the global marketplace by understanding and learning about
other cultures.

 With this type of training, work can go more quickly and smoothly and
companies avoid costly mistakes.

 Hence cross-cultural training can be seen as a tool for improving the

corporate culture and practices by constantly learning through induction of
foreign nationals in the organizations.

 Further the cross-cultural training will help to reduce the psychological

stress and cultural shock which often lead to failure of expatriates.

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 BIBLIOGRAPHY

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 guides to Germany: Alexia & Stephan Petersen

 http://www.germany-tourism.de/.
 guide to Japan: Kenneth Bergenthal
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factbook/geos/ch.html
 http://www.executiveplanet.com/index.php?title=China
 guide to China: Peter P.W. Chen
 www.kln.gov.my.
 Amit Pande, Fellow Programme in Management, Personnel
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 http://www.learnaboutcultures.com
 http://www.iht.com/articles/2004/01/24/rcross_ed3_.php
 http://www.sideroad.com/Business_Etiquette
 http://www.learnaboutcultures.com
 Hofstede, G. (1980) Culture's Consequences: International
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 http://openlearn.open.ac.uk/mod/resource/view.php?id=2103
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 www.executiveplanet.com

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