CROSS CULTURAL MANAGEMENT

Cross Cultural Management is about doing business in Saudi Arabia

Cross Cultural Management is about doing business in Saudi Arabia

Introduction

The importance and significance of cross cultural management and globalization in today's multinational world is irrefutable. Nations no longer act like separate entities; they can be seen as one large intermingling society with shared values, ethics, languages, practices, and cultures. Nevertheless, differences still exist. Regardless of, how truly globalized the world has become, the fact remains that we are all different or unique in one way or another. It is due to these differences that cross cultural management have become essential for all multinational organizations. In this day and age, it has become crucial to take into account how institutions function and interact differently in different environments. Organizations planning on international ventures must take into consideration the implications of differing cultural dimensions, languages, governments, religions, laws, and regulations among other aspects.

Case study

The Saudi social structure places an emphasis on the group rather than on the individual. The family or tribe takes center stage. Saudis tend to have large families and they stay very close to their extended families, often times living with them or next to them. Saudis believe in the importance of developing a strong social network to provide help for the families if the occasion were to arise. Saudis are very aware of their heritage and family backgrounds. In business it is commonplace and even encouraged for employers to hire their friends. Saudis place importance on hiring those who they know and trust. Effective leadership in business can be accomplished through a myriad of different approaches. However, in Saudi Arabia, managers are expected to spend most of their time outside of their offices. Managers must participate with subordinates in the performance of their jobs. This mirrors the importance of strong social bonds in the Islam faith. Religion also impacts leadership through the use of incentives and rewards.

Hofstede Cultural Dimensions

Hofstede has devised the following four dimensions:

Power Distance

Individualism vs. collectivism

Masculinity vs. femininity

Uncertainty Avoidance

Each dimension is characterized by a number of phenomena in a society to come. Below is an elaboration of the various dimensions such as those applicable to the country Saudi Arabia.

Power Distance

Power distance can therefore be defined as the extent to which the less powerful members of institutions and organizations within Saudi Arabia expect and accept that, power is distributed unequally. 'Institutions' are the basic elements of society like the family, school and the community, 'Organizations' where are the places people work. The collectivist attitude of Saudis has an impact on the way families measure their success. If a member of the family can live up to his or her socially accepted ideals then increased esteem will be brought on to the entire family. Several of the ideals that are valued include: generosity, selflessness, support of family members, removal of dependence on others, and hospitality, just to name a few.  

Individualism vs. collectivism

Individualism pertains to societies in which the ties between individuals are loose: ...