International intercultural management - Essay Example

? INTERNATIONAL INTERCULTURAL MANAGEMENT Word Count: 2,395 Introduction “Culture refers to the way a group of people live” (Smith, . Culture refers to the values, norms and systems that define the social identity of a group of people (Stevenson, 2005). From the definition of culture, it can be seen as a collective system that regulates the lifestyle of people from a given place. As such, the culture of a given people determines the tendencies of people and influences the preferences and inclination of people. Due to this, the mindset and reaction of people towards certain things can be collectively gauged if one knows the culture of a people. Selmer (1998) identifies that culture is important in global management because it defines the sociological and economic trends which can be important guidelines and indicators for decision making. This is because global business involves trading in different nations and cultures. As such, knowledge of what is acceptable and unacceptable in a given place is very important. This paper is based on an inter-cultural dinner that the writer was involved in. It discusses the cultural differences that exists between the culture of the writer's country: Saudi Arabia and three other nations: Thailand, China and Ghana. The paper provides a practical view of the leadership systems in these countries based on popular cross cultural models. It discusses an ideal strategy to conduct business in each of the countries studied in this paper. Methodology This paper is based on an intercultural dinner that the writer was involved in. During the dinner, there were discussions carried out in relation to relevant cultural differences that existed between their respective countries. The countries represented at the dinner were Saudi Arabia [the writer's nation which is the base nation for this essay], Thailand, China and Ghana. In the dinner, significant aspects of the cultures and social structures of the different nations were discussed. These discussions included economic activities in the respective nations, significant determinants of business activities, unique systems, food, and other relevant factors. During the dinner, there were some notes that were made by the writer of this paper. They include important elements and aspects of the various nations. The writer noticed that noodles play an important aspect in the diet of the Chinese and the Thai people. I also learnt that rice is an important element of the Thai society. Both nations have strong connections with the Silk Route which was a trail of trade between Asia and Europe. Due to this, there were some exchanges between Europe and Asia albeit minor in terms of influence. It was also noted that the Chinese nation is really huge and there were different time zones as well as different states within the nation. I was shocked to discover that there are some urban areas in China with as many as 320 million people [which is the size of some populations]. This confirms the realities of the fact that China is the largest nation in terms of population. I also noticed that most of the chocolate we eat is from cocoa which is the core element of the Ghanaian society. I therefore identified that agriculture remains an important element of the Ghanaian society. Active-learning activities promotes cooperation, critical thinking, independence, time management and sensitivity to cultural differences (Gardner, 2008). Another aspect of active-learning is that it provides the avenue for the application of theoretical knowledge (Harmin and Toth, 2010). Based on these elements of active learning, the research undertook a comparative system beginning with the culture and systems of Saudi Arabia. The researcher begins by using Hofstede's model of cross-cultural management to examine and evaluate the culture of Saudi Arabia. This is done by following up on the findings that were made during the dinner. The research goes on to trace the findings of the dinner to define the elements of Thailand, China and Ghana. A core tool that is used in this paper is Hofstede's Cultural Dimensions. Hofstede undertook a study of IBM and identified that there are five important elements of culture that makes one culture different or similar to another (Luger, 2009). According to the study, the following items are relevant to defining the culture of a given people (Hofstede, 2001): 1. Power Distance: The degree of centralisation of authority in a culture. 2. Individualism V Collectivism: How much people are integrated into groups in a society. 3. Uncertainty Avoidance: The extent to which people in a culture will go to prevent uncertainty. 4. Quantity V Quality Index: The extent to which roles are defined in a given society. 5. Long Term Orientation: How much people expect their actions to last into the future (Tian, 2004). These elements of the Hofstede model defines the variable elements of each nation's culture. These variables vary from nation to nation. If they are noted carefully, people can create good and healthy relationships that are appropriate in foreign nations. Hall (1990) identified that there were some important variables, namely Overtness, Locus of Control, Use of Non-Verbal Communication, Expression of Reactions, Cohesion of Separated Groups, People Bond, Level of commitment in relationships and flexibility of time. Based on this model, the various aspects of the four nations will be evaluated. Also, the important elements and aspects of the culture will be documented through secondary sources based on preliminary information gathered in the dinner. Characteristics of Saudi Arabia Saudi Arabia has a population of about 25 million people. The country is located in the Middle East, between East Africa, and the Persian Gulf Region. The location of Saudi Arabia makes it a geostrategic point in the world. Over 75% of the land of Saudi Arabia is a desert (Ramady, 2010). However, the deserts of Saudi Arabia hold some of the world's largest crude oil reserves. Due to this, Saudi Arabia is the world's largest producer of oil (Ramady, 2010). Fig 1: Map of Saudi Arabia Saudi Arabia is a predominantly Muslim nation. The nation is ruled by a monarchy which is steeped in Islamic tradition. As such, the title of the King of Saudi Arabia is the “Custodian of the Two Holy Mosques [Mecca and Medina]” (Ramady, 2010). Saudi Arabia is ruled by Sharia Law and most people are required to live according to Orthodox Islamic tradition. The main foods that are eaten in Saudi Arabia are Hallal. Hallal is food that is prepared according to the main traditions of Islam. Saudi foods are often eaten with Koobs a form of unleavened bread which is eaten in most meals throughout the kingdom. The most common delicacies are lamb and grilled chicken. This is often eaten with grain products. Coffeehouses are common and most people spend hours there and have drink hot drinks and take snacks with their friends and family. Coffee is a central part of life in Saudi Arabia. It is used to welcome guests and socialize. Most families sit together to drink coffee as a way of communicating and sharing ideas. Dates are very common in the menu of most people in Saudi Arabia. It is no coincidence that the kingdom's emblem includes a date palm tree and two swords which symbolizes the conquest of the Puritan Islamic movement, the Wahabbis and the House of Sauds who are the Saudi royal family. There are over three hundred types of dates available in Saudi Arabia. In the month of Ramadan where all Muslims fast, it is customary for people to break their fast with dates and water before eating a proper meal. There are special dates festivals that are held in markets around Saudi Arabia. Dates are either eaten as a recipe in a meal or as a snack. Using the Hofstede model of cultural analyses, the following will pertain to Saudi Arabia: Power Distance: Authority in Saudi Arabia is relatively centralised. Power in Saudi Arabia is held jointly by the royal class and the religious leaders. These two groups are extremely distant from the followers. Most commoners accept that they are different from their leaders. As such, it can be said that there is a huge power-distance in Saudi Arabia. Individualism V Collectivism: Saudi Arabia is a very collective culture. People identify more with their family, clan and tribe. Most people are defined by their name and the name determines a lot of social activities in a person's life. Uncertainty Avoidance: Saudi Arabia is not tolerant of uncertainty. There are strict rules, laws and policies that are implemented to prevent uncertainty. Quantity & Quality of Life: Saudi Arabia is a nation where people's roles are clearly defined. People are expected to carry out their roles and live according to them. Although people are rich, there is a high emphasis on conformity in Saudi Arabia. Long Term Orientation: Most Saudis are guided by Islamic traditions which are focused on preserving lifestyles and handing them to the next generation. This makes Saudi Arabia a fairly Long-Term minded nation. Hall ( 1990) identified that a culture can be assessed on context, time and space. In terms of context, Saudi Arabia is not so overt in action. However, information easily leaks about what people do since there is an Islamic authority that is responsible for ensuring that all people behave according to core principles of Islam. There is an internal locus of control and people are held accountable for what they do. Non-Verbal communication is not very common. Most people have not seen the King of Saudi Arabia exhibiting any emotions or smiling. This is standard behaviour for most Saudis. People are encouraged to express positive reactions but negative reactions must be contained. The society is based on tribal groupings, although there are times where all Saudis come together under one banner of Sunni Islam. Also, people bonds are strong. There is a high level of commitment in relationships and loyalty is a very important part of Saudi society. Time is monochronic in religious activities. In incidents like prayers and time-bound religious observances, Saudis will often put everything aside and ensure that they are on time in fulfilling their obligations. In other areas like fun and leisure, things are quite polychronic. Most Saudis will not fix times and live strictly according to them. To most Saudis, things that are not religiously important are not treated with the urgency that Islamic things are treated with. Under Hall's concept of space, there is high territoriality and low territoriality. In high territorial cultures, people mark out their space more clearly than low territorial cultures. Saudi Arabia seem to be a high territorial culture because in the informal setting, the scope and jurisdiction of each tribe is clearly defined. As such, people do not exceed their scope. In the formal sector too, authorities are extremely careful to define the scope of everyone's responsibilities and powers. With that, most people are careful not to go beyond their powers. Comparison with Thailand, China & Ghana The most convenient way of comparing the different cultures is to use the ratings and rankings of nations according to Hofstede's index on his website. Thailand According to Geert Hofstede (2011), Thailand has a lower power-distance index similar to Saudi Arabia. Individualism is also as low as Saudi Arabia. The quality of life is high and as such, people are less likely to be placed into groups because of their identity as compared with Saudi Arabia. Uncertainty avoidance is also as high as Saudi Arabia. In spite of the religious differences [Thailand is mainly Buddhist], many cultural tendencies between Saudi Arabia and Thailand are similar. China China is a country with a high power distance index but Saudi Arabia has a higher power distance index than China. Individualism and quality of life in China and Saudi Arabia are almost the same. However, Uncertainty Avoidance in Saudi Arabia is extremely higher than China. Ghana The power-distance relationship in Ghana is slightly lower than Saudi Arabia. Individualism in Ghana is slightly lower than Saudi Arabia. Quality of life in Saudi Arabia is quite higher in Saudi Arabia than Ghana. Uncertainty avoidance in Ghana is lower than Saudi Arabia. Leadership in The Three Countries These significant differences have implications for leadership in these countries. An international business operating in Saudi Arabia is more likely to be successful if it is autocratic. However, in China, Thailand and Ghana, there is the need for a more democratic and participatory leadership system. In these three nations, subordinates will expect to be consulted in decision making processes than in Saudi Arabia. Since Saudi Arabia is a collective nation, it will be better for an international business to set its remuneration systems are structured to include the family members of people. In other nations, there could be less emphasis on the family of people in setting remuneration. A leader in Saudi Arabia must be careful of the identity of people and their backgrounds before placing people in roles. This is because the position of people in Saudi Arabia is determined by convention and laws. On the other hand, a leader can be less specific about the sex or identity of a person who fill positions. Additionally, a leader in Saudi Arabia needs to be more careful to avoid uncertainties in Saudi Arabia than all the other three nations. Conclusion The active-learning has taught me that the differences between people can be examined on certain pointers and identity. This prevents stereotyping, discrimination and disrespect. This is because people will always make mistakes if they judge others on their own standards. In business, some important aspects of culture like power-distance, uncertainty avoidance, quality of life and individualism define the culture and way of life of a people. Based on these variables, managers can vary important aspects of their operations and activities to attain high standards. In the case of Saudi Arabia, it was noticed that Islam defines most of the features of these cultural models. Due to that there is a high power distance, collectivism, high quantity of life or masculinity and high uncertainty avoidance. China, Thailand and Ghana had less scores in these points on the Hofstede scale. This implies that management, leadership and marketing in these countries must be varied. This is because without varying them, a business is likely to encounter some misunderstanding and communication difficulties. This can render a country less successful in a foreign country. It is therefore important for management to realistically evaluate cultures before moving to a new community. References Gardner, J. (2008) Your College Experience: Strategies & Success Mason, OH: Cengage Geert Hofstede (2011) Thailand [Online] Available at: http://geert-hofstede.com/thailand.html [Accessed 26th April, 2012] Hall, E.T. (1990). Understanding Cultural Differences, Germans, French and Americans, Yarmouth: Intercultural Press Harmin, M and Toth, M. (2010) Inspiring Active Learning New York: ASCD Publishing. Hofstede G (2000) Cultural Dimensions New York: FT Publishing. Luger, E. (2009) Hofstede's Cultural Dimensions Berlin: GRIN Verlag. Ramady, M. A. (2010) The Saudi Arabian Economy London: Springer Verlag. Selmer, J. (1998) International Management in China: Cross Cultural Issues London: Taylor & Routledge. Smith, E. (2011) International Business & Cultural Diversity Mason OH: Cengage. Stevenson, M. (2005) Sociology for the 21st Century London: SAGE Publications. Tian, Q. (2004) A Transactional Study of Ethical Perceptions & Judgement Munich: Martin Meidenbauer Press. Read More