Cross

Cultural
management
HANA MAUMET
 - Middle -East
cultures
Exploring
different
cultures from - Asian Cultures
around the
globe - European cultures
Asian Confucian Southern
Cultures Asia Asian
Asian Cultures
- The Confucian Asia cluster: undergone the influence of Confucian
ideology.

- The Southern Asia cluster contains many different religions and ethnic
groups that live peacefully.

- Both of them focus on relationships;

1. paying considerable attention to building trust and establishing respect.

2. Harmony between the participants of any meeting is required: make sure

that nobody is offended or loses face.

3. maintaining harmony and confidence will build trust, this will form the
basis of consensus and eventual agreement on a deal.
Asian Cultures
Patience is the essence
Remember: Building trustful Relations is the main objective,
hence you need time.
1. Time is needed to establish a relationship
2. Then to decide whether a deal can be made.
3. Then to make the deal.
Asian Cultures
Western considerable
frustration and trying to do
business in Asia :
-They have time pressure and
brash behaviour.
- The egocentric attitude
doesn’t encourage the
establishment of harmonious
relationships;
- The westerner attempt to
impose a deadline on any
deal.
 - Relationships in china are the key to business success.

- Building up a strong network of such relationships referred to

as guanxi.

- Guanxi: Goes much further than an elaborate network of

relationships
The Chinese &
guanxi * those in the network both grant favours and expect eventually
to receive favours in return.

- Western realised that it can be difficult setting up

relationships with the Chinese market without using others who
are themselves owed favour.
When Guanxi with someone has been achieved then the
business of penetrating the Chinese market is made easier.
 It is an indispensable network as a source of information and expertise to
achieve the developing of new relationships finding business partners and
eventually new deals .

it does reflect many of the features of traditional village life in China

it appears to have developed on a larger scale as a way of dealing with the

state bureaucracy
Guanxi roots
Then it appears to have flourished during the recent opening up of China and
consequently economic development.

Western companies in the business in China are aware of the continual need to
develop and maintain these special relationships, They pay them explicit
attention to the organisation of their activities a member of staff or whole
department will be concerned with guanxi or public relations administrations.
The Japanese & WA
-Concept of wa, the spirit of harmony is a principle of Japanese thought

- it applied to all relationships even to the relationship with nature.

- This spirit is reflected in the considerable degree of collaborative behaviour and

concerns building within an organisation.

- proposals should be discussed informally on the work floor before being pushed up
through the organisation's hierarchy where each level of management gives its inputs
and suggestions.

-managers are to be seen more as facilitators in making decisions rather than the
actual decision-makers

- Building a consensus within the organisation may take time through the need to go
into detailed discussion and to give everyone the feeling that they are participating in
the decision-making process
The Japanese & WA
- WA is reflected within the
relationship between the
organisation and its employees,
WA will provide in return for an
employee's loyalty and
commitment to an organisation,
which will provide job security.
- This interdependent relationship
follows from other similar
relationships that the working
Japanese have experienced in
their lives with family school and
university all of them requires
mutual commitment and loyalty.
-So, in this loyalty principle, the
individual employee identified with
his or her colleagues who as a
group identify with the company
which in turn identifies with the
economic needs of Japan
To westernise the whole process
of consensus building may seem
long and drawn out. However,
when the plantation phase of a
deal is reached everything
happens quickly and smoothly
Southern Asia
The Indinas & family

- Indian’s culture displays many of the features shared in Aisa place particular
emphasis on the family

- Every company employee works for the family to maintain and enhance its
fortunes

-loyalty to the extended family takes priority over loyalty to the company

-however, a strong loyalty may develop toward the professional group involved

-Loyalty to both family and group can become entwined: success in your
profession will give your family added status. This goes of course particularly for
those who are engaged in a family business
 Southern Asia
The Indinas & family

-Within the family business environment: the hard-working nature of Indians is evident, and
material success is important not for individual interest but for the sake of maintaining the family’s
honour and ensuring a sound future for the family’s offspring.

- Success involves not just working long hours but also being creative to develop the work of the
family and to ensure a secure future for the family business.

-Indians are not reluctant to take risks: there may be failures, but this is less to do with personal
competence and more to do with fate.

- Families business phenomenon is one that India shares with the other Asian cultures (Malaysia,
Indonesia )

- However just as Indians accept that hierarchy of gods in their religion so they accept the strict
social hierarchy in their society and the hierarchies are in the business environment

- The father is obeyed but is expected to do everything to promote the family’s well- being the
manager may behave in an authoritarian way but is expected in term to show care and
consideration toward his employees
They accept hierarchies of religion society and business, but they don't
accept covering their feelings
unlike other Asian cultures, Indians are renowned for their readiness to
express their frustration if their efforts in life are not successful, or
the joy experienced when their hopes of ambitions come true

The Indians
& family

Which are the emotive dialogue in the

many films from India's Bollywood
film industry are testament.
Thailand
-Unlike Cambodia, Laos and Vietnam,
Thailand was not colonized by a European
country because of its role as a buffer state
between the French and British colonies.
-It was originally called Sam and then
changed to Thailand in 1949,Thai means
freedom and is also the name of the main
ethnic group
- It has a long tradition of commerce,
particularly with Western countries
- At the beginning of the 20th century it
developed a new social class composed
of merchants and functionaries.
 Thailand
-Buddhism is the main religion that he said by more than 90% of
the population
it promised them Nirvana as the sublime ideal and the ultimate
goal.
- Buddhists are content to improve their lives by pursuing ethical
principles and by asserting personal and social responsibilities to
ensure peace and serenity.
- So, they hope to accumulate sufficient positive karma (action
and result )and so ensure rebirth in another happy state of
existence.
- Chamlong Srimuang considers that leadership whether in
politics or business requires self-sacrifice or selflessness in one
way or another such leadership or power over the people lasts
longer than the leader’s life Jesus christ Mohammed and Buddha
to name a few are clear example of such long-lasting spiritual
leadership
Read
THAI BUDDHIST ECONOMIC MODEL
B Y K A L I N G A S E N E V I R AT N E
S O U R C E : U N D E R S TA N D I N G C R O S S - C U LT U R A L M A N A G M E N T
Middle East
Middle east
- It is in the middle between the east and West countries

- Arabs Countries successfully traded between western and eastern countries to

sell and exchange their goods

-Language and culture are unifying factors, with the Islam religion providing an
overarching

body of belief and a strong sense of identity and community.

- Islam spread in the seventh century and along with it the Arab language;

-The present Arab states were formed following the break-up of the Ottoman
Empire during the First World War (1914–18).
 - The basis of Arab structure is the family, Similar to asian cultures this means the
broader family; a kin group or clan involving several households and cousins on the
father’s side.

-the welfare of the family is of primary concern.

-Family ties bring security but also commitments.

Middle east disciplined way followed to run the family by an authoritarian father. Usually the
oldest.

-A large proportion of Arab businesses are family-owned and discipline

is maintained by a leader having strong central control and a strict hierarchy

Middle east
- Usually Arabs have a remarkable awareness about their social and economic
environment,

- Reputation is the most important issue for Arabs: They are highly sensitive
towards traders and may turn down a lucrative business deal because they
dislike the people they are dealing with, particularly if these people do not
enhance their personal reputation.

- Dealing with government: in reality, It is again a question of family relations:

in the government, it is members of the ruler’s family who are most likely to
hold all the main government posts; outsiders, however talented, are put in
fewer important positions.
 « The phrase ‘Inshallah’, often translated as ‘God
willing’ or ‘if Allah so wishes’, is one often used in
everyday conversation and reflects deep-rooted beliefs
in predestination and fatalism. Its use also emphasizes
the extreme sensitivity shown to the context of any
discussion. Its exact meaning depends on the subject
in hand, the particular purpose of the discussion, and
the relationships between the individuals involved. On
Middle east some occasions it can mean ‘yes’, on others ‘no’;
sometimes it can mean ‘I’ll arrange it’, and other times
‘Don’t discuss this further’.
Communication can therefore be a hazardous affair for
not only outsiders but also for any translators
involved, particularly because they must also take
account of the intonation and body language used.”
Understanding cross-cultural management by Marie
 Middle east
- Reputation & keeping face

- Admiration & respect / financial success.

- Prestige to individual/ family

- Genroisty & hospitality

- The face & image / relatives and strangers

These comments on family and face highlight a paradox that

Hickson and Pugh

(2001: 221) refer to when discussing the Arab model of

management: Arabs are disposed to handle authority centrally
with high power distance, yet at the

same time they aspire to an ‘open door’ for all comers, high or
low, and to consultation in the manner of the sheikhs.
 - Europe’s eastern borders remain somewhat arbitrary.
- Europe has been portrayed in many different ways within
its history according to the changes of cultural and political
relations.
- The main achievement of cooperation is the European
Union.
European Originating as a common economic market that allowed a
Culture number of (West) European
countries to trade fairly, it has developed into a body with
common institutions at economic,
socio-cultural, and political levels to which the member
countries have delegated some of
their sovereignty.
Latin Europe
-Societies characterized by Romance languages close to Latin, and by Roman-style legal systems and strong
Roman Catholic churches.

- A personal approach to managing and organizing / a highly developed bureaucracy present / the layers of
hierarchy and the procedures involved in getting things done are so formalized.

- There is a reliance on family and personal relationships and connections to work around the system, to bend the
rules.

- Boss is the Boss: followed and listened carefully , however, he/she still needs the support
Northern European
business culture
- All 6 countries have a good level of English language usage.

- Business communication:

1. use of emotions is Ok but no lively gestures or touching.

2. Facts & technical information to detail the issue are very

welcomed.

3. Time respect-punctuality is taken as a sign of reliability.

4. Social media platforms are welcome for private usage.

5. UK, Irland & Iceland English language is the dominate. / Finland,

Sweden & Denmark have good levels of English but they prefer
speaking in their native language.
Northern European business culture
- Small population, under 10 million per country. Except for the UK 63 million people.

- Only Ireland & Finland use Euros currency. Others use their national currency.

- Formality degree is different between these countries. In the UK following protocols is critical
to maintaining the business. In Scandinavian, for example, swedes prefer to be informal &
emphasise open dialogues with a sense of democracy.

- In Scandinavian, direct communication is” open to the point”

- British and Irish do not like to justify the disagreement or to provide a disagreement source. It
is a way to avoid offend to their business partners
 Southern Europe
Croatia, Cyprus, Macadonia, Greece, Italy, Malta, Portugal, Slovenia,
spain , Turkey.

- The similarity of geographical conditions , climate conditions

impacted the culture.
- To granite a successful business environment ; You have to
develop personal relationship with business counterparts and
identify the right people within the company to contact.
- A family oriented culture with strong regard to traditions.
- Personal connections can open business doors in an environment
where business hierarchical structure is dominating.
- Internet usage is very common and social media platforms are
used as a communication strategy.
 - Facebook is used as a communication tool both for personal and professional life.

- Turkey is the 4th largest in global usage of Facebook & the 8th largest of twitter.

Southern - Local social networks such as Tuenti in Spain, Hi5 and Orkut in Portugal, Italylink
Europe and Fubles in Italy have many users and followers.

Time perception: punctuality is very important, however its appreciation is different

from a country to another; In Spain, Italy, Greece, and Cyprus being late is usually
not considered impolite, whilst in Croatia, Malta, Slovenia, FYROM and Turkey people
value punctuality and expect international business partners to do the same.

- The use of gestures is common in all of these countries, but certain gestures and
body language have different meanings varying from rude to insulting and offensive.
For example, in Greece, Cyprus and Turkey, avoid making the ‘”OK’” sign with your
hand or pointing at someone with your finger.
Eastern Europe
- Bulgaria, Czech
Republic, Hungary, Estonia, Latvia, Lithuania, Poland, Romania and
Slovak Republic.
- Similarity across business cultures and education system.
Workforce is highly educated.
- Business communication is mostly through face to face contact
using formality to name partners with their educational or office
titles.
- Punctuality is very important throughout the region and
regarded as a sign of reliability; a lateness of up to 15mins is
generally acceptable but frowned upon.
- The usage of internet is high but still yet not comparable to the
level in western or northern Europe.
 Western Europe
-Western European countries
are: Austria, Belgium, France, Germany, Luxembourg and the Netherlands.

- Same time zone, same currency, strong educational system with compatibility
with workforce.

- These countries tend to favour formal arrangements where documentation and

formalities are preferred over personal relationships in business. Punctuality in
Western European countries tends to be valued.

- Internet is used for private (Facebook is the most popular)

- Austria, France, Germany and Luxembourg it is common to use the complete

title of a person together with his last name to address him or her.

-Belgium and the Netherlands this is not the case – rather, the title is not
necessary, only the name.
Western Europe
- English and German are very popular as business language. In France it is less
used since speaking in French is very welcomed as part of culture respect.

- Student placement scheme is essential in France , Austria, Netherland, and

Germany/ not so popular in Belgium.

- Another example of differences can be found in the use of social media

networks for business purposes. While LinkedIn is one of the primary
professional social networks in Luxemburg and the Netherlands, Germanys’
most used business network is called Xing and in France it is Viadeo.