Cultural Differences in Business in South Africa and Poland, in comparison to Saudi Arabia - Case Study Example

CULTURAL DIFFERENCES IN BUSINESS by Student’s name Code+ course name Professor’s name University name City, State Date List of Tables Table 1 Languages used in business meetings 9 Table 2 Mode of communication amongst business people 10 Table 3 how people prefer to be addressed in business meetings 12 Table 4 Styles of greeting in business meetings 16 List of figures Figure 1 Languages used in business meetings 9 Figure 2 Mode of communication amongst business people 10 Figure 3 How Saudi Arabian people prefer to be addressed in business meetings 12 Figure 4 How Polish people prefer to be addressed in business meetings 13 Figure 5 How South African people prefer to be addressed in business meetings 14 Figure 6 Styles of greeting in business meetings 16 Table of Contents Table of Contents 4 1.0 INTRODUCTION 5 1.1 AIM 5 1.2 Background 5 2.0 METHOD 7 2.1 Secondary sources 7 2.2 Primary sources 7 2.2.1 Subjects 7 2.2.2 Questionnaire 7 2.2.3 Procedure for administering the questionnaire and collating the results 8 3.0 Results and discussion 9 4.0 CONCLUSION 18 5.0 Recommendations 19 6.0 Reference list 20 Appendix 1 21 1.0 INTRODUCTION 1.1 AIM This report aims to investigate the cultural differences in business in South Africa and Poland, in comparison to Saudi Arabia. This will help to ensure the success of the company as it expands its operations into Poland and South Africa. 1.2 Background Culture in business refers to the attitudes, behaviors, values, underlying assumptions, and beliefs that exist among individuals in a business environment. These are usually unwritten and unspoken rules shared by people in a group that help them to work smoothly together. Conducting business on a global front requires awareness of cultural differences. What is normal in one country could be shocking or insulting in another country (Whitmore 2005, p.198) Leadership and management styles differ across the globe. International business is similar in many ways, but cultural differences still play a major role in conducting global business (Ramsey 2007, p.188). For example, leadership styles upheld in one country may be viewed as weak in another country. High values for punctuality may be perceived as too rigid in another country. Some managers may extend their interest of employees into their personal lives while others prefer to keep it strictly business. Therefore, as companies venture into global businesses, awareness of cultural differences and their impacts is a vital factor for the success of every business. Undeniably, business profitability is heavily influenced by culture in countries of operation (Martin & Judith 2005, p.858). Every time companies branch out their operations into different countries without knowledge of cultural differences, they take a gamble which can hinder long time survival (Ramsey 2007, p.156). Businesses can improve their international competencies by building on the level of knowledge of the cultural differences in business in the global environment. 2.0 METHOD 2.1 Secondary sources One of the data collection methods used in this report was secondary sources such as books, internet, magazines and journal articles. Books, magazines and journal articles provided relevant information for this report. Additionally, the internet provided up to date that was equally important for this report. Besides providing accurate, reliable and timely information on the subject of cultural differences in business, the secondary sources were also found to save time unlike primary sources that are highly procedural and time consuming. Nevertheless, all the secondary sources aforementioned were helpful in developing the questionnaire. 2.2 Primary sources 2.2.1 Subjects A sample of 20 people was selected randomly from 5 Saudi Arabian organizations namely Saudi Aramco, Olayan Group, Zamil Steel Holding, Al-Rajhi Bank and Al Tazaj Holdings. In every organization, 2 men and 2 women were selected to ensure that the report included views from both sexes on topic under study. 2.2.2 Questionnaire The questionnaire was developed by first determining the focus of study. The aspect to be studied in this report was cultural differences in management styles, communication, and management of meetings. This formed the basis of the questionnaire. The study used a structured questionnaire that was not only easy to administer, but also easy to analyze. 2.2.3 Procedure for administering the questionnaire and collating the results All the respondents were sent questionnaires online, and they were required to fill, and send them back. Therefore, all questionnaires were filled at individual respondents’ place of work. Once the respondents answered the questions, the filled questionnaires were analyzed using tables, graphs and charts as shown in the following section. 3.0 Results and discussion Table 1 Languages used in business meetings Country English Local Language Both Saudi Arabia 10% 75% 15% Poland 15% 70% 15% South Africa 75% 10% 15% Figure 1 Languages used in business meetings Figure 1 above is a bar graph that compares languages used in business meetings in three countries namely; Saudi Arabia, Poland and South Africa. The three countries use different languages, and the same is replicated in official languages used during business meetings. Arabic and polish languages are the first languages in Saudi Arabia and Poland respectively (Whitmore & Smith, 2005). Therefore, unlike republic of South Africa where English is the official language as indicated by 75% of the respondents, local languages were found to be the main languages in both Saudi Arabia and Poland. In this vein, 75% of the respondents were of the view that Arabic language is the dominant language in Saudi Arabia while 70% viewed polish language to be the main language used in business meetings in Poland. Evidently, Arabic and polish languages are the dominant languages in Saudi Arabia and Poland respectively. Similary, according to this research, it was found that the two languages were the most commonly used languages when holding business meetings. This was attributed to the fact that majority of the meeting attendants are either Arabs for the case of Saudi Arabia or Polish for Poland. On the other hand, the research found English as the most used language for business meetings in South Africa. According to Johnson & Dorothea (1997), the Republic of South Africa was colonized by Netherlands and attained independence in 1994. Further research showed that presently, the Boers still form a significant population of South Africans hence making English to be the official language. Table 2 Mode of communication amongst business people Country Formal Semi-formal informal Saudi Arabia 45% 35% 20% Poland 65% 20% 15% South Africa 80% 15% 5% Figure 2 Mode of communication amongst business people Figure 2 above is a line graph that presents data based on the surface area occupied. The graph compares mode of communication in three countries including Saudi Arabia, Poland and South Africa. Based on response from the questionnaire issued, majority of the respondents indicated that business people from the three countries use formal means of communication. However, in Saudi Arabia, a significant number of respondents though that semi-formal mode of communication was also used. In the face of modern business world, every business is embracing modern ways of operation in order to maximize returns. This aspect is reflected by feedback obtained from respondents with the majority indicating that business people embraces formal communication methods (Whitmore & Smith, 2005). Formal communication methods were found to enhance effective communication amongst people from different backgrounds. Even though Saudi Arabia was found to be more inclined to formal ways of communication, a significant percentage of respondents indicated that some businesses were still using semi-formal means of communication. The research attributed this to the fact that majority of Saudi Arabian businesses were owned by Arabs who were not versant with western formal modes of communication. In Saudi Arabia, courtesy in speech and diplomacy is highly valued while conducting business. This means that Saudi Arabia and South Africa have a lot of similarities in this sector in that, courtesy and diplomacy are highly valued in both countries. It is however important to note that the white professionals are not too concerned about diplomacy as their black counterparts are. Saudi Arabian business culture in regards to communication differs with that of Poland as Polish people prefer to express their opinions plainly and directly. Moreover, the research established that Saudis prefer to work closely with people they know well. This goes contrary to people in South Africa and Poland as they do not mind how well they know a person. Therefore, one should exercise a great deal of patience while communicating with Saudis since they tend to take a lot of time in relationship building. Table 3 how people prefer to be addressed in business meetings Country Titles Surnames First names Saudi Arabia 70% 20% 10% Poland 30% 60% 10% South Africa 25% 35% 40% Figure 3 How Saudi Arabian people prefer to be addressed in business meetings Figure 3 above is a pie chart presenting data on how Saudis prefer to be addressed while in business meetings. According to the pie chart, 70% of the respondents viewed Saudi business professionals as to prefer being referred to using their titles. The other respondents thought that business people prefer to be referred based on either their surname or first name. Figure 4 How Polish people prefer to be addressed in business meetings Figure 4 above is also a pie chart presenting data on respondents’ feedback on how polish business people prefers to be addressed. According to the above data, it is evident that the 60% respondents were of the opinion that many people prefer to be addressed based on their surnames. The research also found that a significant number prefer to be addressed based on their titles with fewer people preferring their first names. Figure 5 How South African people prefer to be addressed in business meetings Figure 5 above is a pie chart showing respondents data on how South African people prefer to be addressed in business meetings. 40% of the respondents observed that majority of South African business people prefer to be addressed based on their first names. Another 35% reported that business people prefer to be addressed based on their Surnames with the rest 25% preferring their titles. In Saudi Arabia, tradition is still life not only within the community, but also within the corporate circles. As highlighted by Martin & Judith (2005), the Saudi community prefers being referred to based on their titles such as King, Prince, Imams among others. However, in the light of globalization, some of the western based companies have established businesses in Saudi Arabia and with them they bring about westernized ways of business management. According to World business culture (2013), business people working for western based companies mainly prefer to be addressed based on their surnames with a few preferring to address using their first names. On the other hand, the case of Poland is quite different. According to Ramsey (2007), referring to an individual based on the first name is viewed as lack of respect. However, some of the respondents viewed that some business people preferred to be addressed based on their first name. Further research indicated that this portion represented business people from America, Britain and other English speaking countries who do not mind the way they are addressed (Kelly & Tyler, 2008). Lastly, South Africans were found to have assumed western culture although they maintained their local culture. Similarly, the same case was evident in the business circles with business people behaving more as their western counterparts (Baldrigde, 2003). In this vein, South African business people were found to either prefer to be addressed based on their fisrt name or surname with only 25% preferring to be addressed based on their titles. Table 4 Styles of greeting in business meetings Country Handshake Bow Kiss Saudi Arabia 30% 65% 5% Poland 65% 1% 25% South Africa 60% 10% 30% Figure 6 Styles of greeting in business meetings Figure 6 above is a cone graph that provides data on styles of greetings assumed by people in Saudi Arabia, Poland and South Africa during business meetings. This study established that 65% of Saudi Arabian society bow as a way of greetings. On the other hand, the cone graphs indicate that 65% of Polish and 60% of South African business people embraces handshake with a few of them embracing kisses and bows as a way of greetings. According to Ramsey (2007), different societies use different modes of greetings. In global businesses, effective communication is important for the successful undertaking of business functions. Embracing cultural differences in communication is key to effective global business. Communication is inclusive of things such as greetings, body language, gestures, and mannerisms. In some societies, members openly show their emotions, while in others, people prefer to control or subdue their emotions while conducting business (Johnson and Dorothea 1997). Means of communication differ widely in different countries. Undeniably, globalization has considerably influenced the way business people conduct themselves. In this light, Poland and South Africa were found to mainly assume handshake common with many western countries as the style of greetings while Saudi Arabia was rigid in welcoming foreign businesses assuming bows common with locals as their style of greetings. According to Ramsey (2007), the Saudi Arabian culture does not allow men and women to greet each other outside their family. The research also established that, unlike Poland and South Africa where people engage in restrict themselves to greetings, the Saudis take their time to converse about general things. 4.0 CONCLUSION The study shows that employees have a good knowledge of the cultural differences in business that exist among Saudi Arabia, Poland, and South Africa. The business language in both Poland and South Africa is English. Business meetings tend to be very formal in Poland whilst, in Saudi Arabia and South Africa, meetings are not too strict or formal. This is in terms of adhering to the stated agendas or the stated time. The polish people communicate express their opinions directly whilst people from Saudi Arabia and South Africa tend to communicate more diplomatically and courteously. This is due to the fact that business in South Africa and Saudi Arabia tend to thrive where good relationships exist. 5.0 Recommendations The poles are accustomed to a hierarchical business system, which generally translates to less participative managers. Therefore, managers from Saudi Arabia who go into Poland are expected to issue plain instructions and provide solutions to difficult problems. Saudi Arabians need to master the English language for them to do business effectively with the poles as it is by and large the business language used. While conducting business with the poles, it is important to note that they communicate directly and believe that it is better to voice opinions rather than beating around the bush by being diplomatic or by use of coded language. Though a wide array of languages exists within South Africa, the language to use in an international business meeting is English. Most white South Africans would rather be direct and plain while communicating. However, it is advisable to be courteous and diplomatic while dealing with the black professionals in South Africa. To conduct business effectively in South Africa, it is advisable to take some time to try and build good relations with the attendees of the meeting. In South Africa, good relations form the basis of good business. At meetings, it is advisable to be patient and modest as having a “hard sell” approach could be viewed as too forceful and thus alienate people. 6.0 Reference list Baldrigde, L. (2003). New Manners for New Times: A Complete Guide to Etiquette. New York: Scribner Brown, F., Robert, E. & Dorothea, J., (2004) .The Power of Handshaking for Peak Performance Worldwide. Virginia: Capital books. Johnson, L. & Dorothea, J. (1997). The Little Book of Etiquette. Philadelphia: Running Press. Kelly, A. &Tyler, M. (2008). Secrets of Seasoned Professionals: They learned the hard way so you don't have to. New York: Fired Up Publishing Martin, R. &Judith, S. (2005). Miss Manners' Guide to Excruciatingly Correct Behavior, Freshly Updated. Norton: Salem House Publishers. Ramsey, L. (2007). Manners That Sell: Adding the Polish that Builds Profits. Washington. Dc: Long Fellow Press Whitmore, J. & Smith, D. (2005). Business Class: Etiquette Essentials for Success at Work. 28 (4). p. 61-82. World business culture. 2013. BUSINESS CULTURE ON THE WORLD STAGE. [Online] Available at: http://www.worldbusinessculture.com/ [Accessed: 14 Aug 2013]. Appendix 1 QUESTIONAIRE: cultural differences in business 1. Which language governs business meeting? Country English Local Language Both Saudi Arabia Poland South Africa 2. What is the predominant mode of communication among business persons in a meeting? Country Formal Semi-formal Informal Saudi Arabia Poland South Africa 3. How do business people prefer to be addressed in a meeting? Country Titles Surnames First names Saudi Arabia Poland South Africa 4. What is the main style of greetings in a business meeting? Country Handshake Bow Kiss Saudi Arabia Poland South Africa Read More