Cross cultural management 3rd chapter 4 (25) business cultures in asia, africa and the middle east

Slide 4.1 Chapter Business cultures in Asia, Africa and the Middle East Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.2 • Four clusters: – – – – Confucian Asia Southern Asia Sub-Saharan Africa Middle East Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.3 Preface: Different cognitive approaches to management Difference between the way Western and Eastern managers approach strategic problems and reach conclusions about outcomes •Western managers: • use a deductive, top-down, thinking approach •Eastern managers – use an inductive, bottom-up, thinking approach, Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.4 Concept 4.1 Asian cultures • Two Asian clusters: – Confucian Asia: • countries that have undergone influence of Confucian ideology – Southern Asia: • countries with different religions and ethnic groups living in peaceful co-existence – Both clusters: • share similarities in relationship management • concern for respect and harmony Doing business therefore involves establishing a good relationship Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.5 – Guanxi = • Confucian Asia: China building a strong network of relationships – Network provides: • information, expertise, enables new business partners and new deals – Mianzi = • face: maintain your own dignity and that of others – Helping friends within a network is a moral and social obligation Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.6 Confucian Asia: Japan – Wa: • spirit of harmony, applied to all relationships, including those with nature – Organizations: • collaborative behavior and consensus-building • mutual commitment and loyalty between company and employee Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.7 Confucian Asia: (South) Korea – Focus on family life and enhancement of its fortunes: • influenced the rapid development of the economy – The role of the extended family: • developing a network of conglomerates (chaebols) – Around 60 chaebols: • held together by cross-ownership and cross-subsidies Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.8 Southern Asia • India and Thailand: – embrace the principles of the Buddhist religion • ‘Karma capitalism’: – corporations being able to create value and social justice simultaneously – capitalism which ‘puts the individual at the center of the universe’ Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.9 Southern Asia: India The Indians and 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 • Success in your profession will give your family added status Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.10 Southern Asia: India (Continued) • The family business: – material success is important more for the sake of maintaining the family’s honour and ensuring a sound future for the offspring • Being successful involves not just working long hours but also being creative • Failure possible, but this is less to with personal competence, more to with fate, so stigma Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.11 Southern Asia: India (Continued) • Indians: – accept social and business hierarchies, just as hierarchy of gods in their religion – considerable respect towards their seniors in all aspects of their lives • Ongoing changes in the nature of Indian society – weakening of the caste system – liberalisation and restructuring of the economy • Manager: • contend with both collectivist and individualist values within a formal system of management Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.12 Southern Asia: Thailand Thailand and karma • Buddhism plays dominant role: – Buddhists: • assert personal/social responsibilities to ensure peace and serenity • accumulate sufficient positive karma (action and result) to ensure rebirth in another, happy, state of existence • Thai Buddhist economic model: – Avoidance of extremes – Create sustainable profit Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.13 Chinese and Indian diasporas • Diasporas (Migrations): • a significant role in rapid globalisation of business (e.g China and India) • Both diasporas: • have helped connect mother countries to the world, thanks to: – modern communication channels – trust they place in their fellow-countrymen (example of Chinese–American innovators who can foster trust during their company’s attempt to gain entry into Chinese market) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.14 China and India, BRICS countries • Both China and India: • Member - BRICS group of emerging countries • Economic relations between these two countries helped by frequent meetings of BRICS conventions • But historical disagreements (e.g border disputes) • holding back creation of a full-blown trading partnership Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.15 Concept 4.2 African Sub-Saharan Africa Fundamental African personality traits: • non-discriminatory, not promoting prejudice, seeking reconciliation (settlement) in politics and business • inherent (natural) trust and belief in human fairness • high standards of basic morality • • based on historical precedent (model) bolstered (supported) by extended family system • Believing in a hierarchical political ideology,: • based on an inclusive system of consultation • Perpetual (continuous) optimism: - mainly due to strong religious beliefs Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.16 Sub-Saharan Africa Culture base of Africa is characterised by its: •relationship to time; •(organised) work; •other people (family, hierarchy, colleagues, subordinates, outsiders) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.17 Sub-Saharan Africa (Continued) • Majority of local companies: – reject interpersonal competition among employees (no bonuses) – reject contracts and other written directives, preferring verbal commitments Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.18 South Africa • The newest member of BRICS • Huge cultural diversity: – Indigenous (Native) black peoples, white Europeans, Indians, Chinese and other immigrants from various countries in Asia • promoted a multicultural society: – draw the diverse groups into the social and economic development of the country • Sharp urban/rural contrast: – in rural areas, the head of the family determines how business is run – Important role of tribal/family connections Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.19 South Africa (Continued) The managers there face a dilemma: - ‘Eurocentric’ or ‘Afrocentric’ approach? •‘Eurocentric’ approach: – reflects high performance orientation and high assertiveness •‘Afrocentric’ approach: – reflects high collectivism, humane orientation, below average assertiveness •Both approaches: – Should embrace both – conciliation rather than confrontation • reflecting the need to maintain social harmony in a multicultural environment Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.20 Middle East and North Africa (Continued) Figure 4.2 Middle East and North Africa Source: Financial Times ( FT.com ), February 2011 (adapted) Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.21 Middle East and North Africa Present Arab states: • Formed following the break-up of the Ottoman Empire – during World War (1914–1918) •Language and culture : – unifying factors – Islam religion provides an overarching body of belief and a strong sense of identity and community Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.22 Middle East and North Africa • The broader notion of family – – a kin group or clan involving several households and cousins on the father’s side (basis of Arab social structure) – Family welfare: • primary concern • Family ties bring security & commitments – The family : • run by an authoritarian father • family clan by the oldest, competent member Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.23 Middle East • Arabs: – highly sensitive towards traders • may turn down a lucrative business deal – – because they dislike the people they are dealing with particularly if these people not enhance their personal reputation – Damage to one member of the family • damages the whole family • A family concern’s dealings with government : – more like two family businesses coming to terms with each other – members of the ruler’s family: • • are most likely to hold all the main government posts; outsiders: – however talented, are put in less important positions Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.24 Middle East (Continued) • The face or image conveyed to others: – especially in public, – considerable attention, • even when this involves dealing with relative strangers • The Arabs: – renowned for their generosity and hospitality – but these ‘duties’ may also be a prelude to seeking some kind of commitment or request • Arabs handle authority centrally with high power distance, – yet at the same time they aspire to an ‘open door’ for allcomers, high or low Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4.25 Middle East (Continued) • Western culture: – now in many Arab countries – But controlled to prevent abuse of civil/religious norms and values • Arabic companies: – facing a dilemma that brings the globalisation of the economy into conflict with affection for cultural values of the past ** Growing middle class: • trying to reconcile the process of economic modernisation with the development of new values – E.g.: tolerance, individualism and concern for the future Browaeys and Price, Understanding Cross-Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 ... Slide 4. 20 Middle East and North Africa (Continued) Figure 4. 2 Middle East and North Africa Source: Financial Times ( FT.com ), February 2011 (adapted) Browaeys and Price, Understanding Cross- Cultural. .. Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4. 10 Southern Asia: India (Continued) • The family business: ... Browaeys and Price, Understanding Cross- Cultural Management PowerPoints on the Web, 3rd edition, © Pearson Education Limited 2015 Slide 4. 8 Southern Asia • India and Thailand: – embrace the principles