The clock is ticking and I need to return my dear companions (books) to the library. I need to erase our dialogues and take out all of the reminder sticky notes because it is time to put all my learnings here and say goodbye. However, there is a last topic that I want to explore before I finish my first year of studies, and that is gaining a little more understanding of cultural differences that one must be familiar with if they are to work in a cross-cultural team. 

This essay focuses on my findings from “Understanding Cross-Cultural Management” by M. J Browaeys & R. Price (2nd edition). Before I continue, I want to state that I found this book very insightful, and this is an educational material that includes many reflections, activities and further reading recommendations, so I will only state what I have managed to grasp from it, but it will not be a book summary. I highly recommend this material as it not only provides valuable information but also a broad overview of cultures around the globe and practices of how to improve team management.

Also, most of my concentration while making all my notes was to gain more insight into how to enhance cooperation with cultures that are represented in the Proakatemia community, and that is something that can be observed from this work.

1. Asian cultures

The relationships between the parties that participate in business activities are at the utmost importance – trust and respect is the base. This comes together with having excellent manners, being polite (especially towards the senior positions). Harmony Dominates during communication, for instance, in business meetings all sides aim to avoid offending each other or losing their own dignity (also another term used to describe this – “losing face”). This, however, does not eliminate disputes, but allows to form a good trust-based relationship that is at the base for cooperation. The Writers of the book distinguish the difference between the Confucian Asia and the Southern Asia.

1.1 The Confucian Asia

China

In China, it is all about guanxi – building trust-based relationships and networks. In other words, the key to business is relationships, and they have a special term “guanxi” that refers to building networks that are mutually beneficial and built from trust and respect. With “guanxi” it becomes much easier to form a business in China. Thus, it is a social and moral obligation to help friends within one’s network, and again if this is avoided, it damages a person’s face (honour/prestige). Also, in closer connections even, there is no need to have a contract as these relationships rely on mutual trust and confidence. Besides, they try to keep it that way with everyone (not only customers and suppliers but also local authorities, financial institutions and tax offices) (Burns, 1998, as cited in Browaeys & Price 2011).

As it was mentioned previously in Asian culture, in China it is important to maintain your “face” (honour, dignity, personal and professional reputation). To describe this they use “mianzi” which directly translated means “face”. Therefore, it is important to understand that “direct Criticism or confrontation of anyone related to business activities is not only an invitation for some kind of damaging retribution, but also results in damage to the mianzi of the person who has made the Criticism and thereby harmed the other (Broways & Price 2011).” Meaning, that if you give a direct Criticism to another, you will harm your own face.

Japan

In Japan, theew is a concept of “wa”, which stands for harmony. That is building Collaboration and mutual Consensus within the organization. For example, the process of business matter decision-making involves informal discussions on the work floor between each level of management before handling them forward through the organizational Hierarchy to allow everyone to give their input for the proposals. Consequently, the Managers are rather seen as the facilitators of the decision-making process and not the actual decision-makers. Likewise, this is reflected in work relationships, where an organization provides job security in exchange for the employee’s loyalty and commitment. As a result, people are more loyal to these work relationships and identify with their colleagues who associate with the company, which leads to even greater loyalty.

South Korea

The economy of South Korea is largely influenced by chaebols (the idea of ​​the Wealth of the Clan or clique). Meaning, there are around 60 large businesses, owned by families, that share cross-ownership and cross-subsidies. There is a strong hierarchy in the decision-making process, and the leader has absolute power.

1.2 Southern Asia

India

In India, the emphasis is on the family. In the culture is to work diligently to enhance the family’s fortunes and therefore its status. Status is important, and, therefore, so is the material success. Moreover, success is not just about putting in long hours; it’s also about being creative and taking action on ideas. What Fosters this is a notion that failure is not perceived as a mistake but rather as fate. Both in society and business, there is a strict hierarchy, and thus, Indians show a great respect to their seniors. In families, the father is obeyed and in businesses, the manager can be authoritarian, however, both must be caring towards their people. Also, unlike other Asian cultures, Indians are very expressive with their feelings.

Thailand

Thailand (“thai” – freedom and the name of their ethnic group). The culture and values ​​are largely influenced by Buddhism, and so it has a deep sense of positive “karma” (actions driven by positive intentions). The leader is more like a servant and has selflessness and self-sacrifice characteristics. “The person in the position of leadership is considered to have attained that status thanks to the accumulation of the good rather than the bad karma. Leadership requires exercising personal responsibility towards the community; being its leader and servant. (Browaeys & Price 2011.)” In this regard, people strive to become good leaders who can see the benefits of hard work, economy, honesty, and the ability to sacrifice for others. “Being the best is about ‘being true to oneself, one’s conscience’ (Browaeys & Price 2011).”

2. Russia

In Russian culture, there is a similar concept of Networking for mutual goods called “blat”, but it has a different meaning than previously stated in Asian culture. It originally came from doing “small crime” and transitioned into sharing and helping each other in personal networks built from time, trust, common understanding and behaviours. Even though it is about commitments, blat is more about feelings and self-serving pleasures (primarily pursued one-to-one). However, it has been argued that blat is again changing its nature towards negative and criminal undertones (Michailova & Worm 2003, 517, as cited in Browaeys & Price 2011).

3. Africa and the Middle East

In Africa, national identities are difficult to identify as they are very diverse in all aspects. Africans have a mentality of fairness towards human beings, trust is a must. Nigeria, for example, has shown rapid growth in its business sector. Their way of organization in business as well as it is in family is hierarchical, and the relationship between co-workers is professional. Also, even though they are flexible with the time matters, it has been observed that they can be punctual at work.

In South Africa, known as the Rainbow Nation due to its diverse culture, religions, and ethnicities, there is a clear distinction between the way of life in rural and urban areas. In the rural parts of the country, the head of the family is still traditionally the one who determines business operations, and they tend to be more conservative. The urban areas are more influenced by migrants from neighboring countries, and, therefore, the way businesses manage their operations is shaped by a view of a different set of beliefs, cultures and attitudes. Consequently, the management of businesses in urban areas is more task-focused and open to innovation, risk-taking and creativity. Bearing in mind the diversity in the community, in South Africa in business it is important to maintain social harmony.

The Middle East and North Africa share many similarities – the religion is Islam, and they all speak the Arab language. The main focus is on family (which also involves several relatives from the father’s side). Strict Hierarchy – in the family the father has authoritarian power, and in business – the leader. Many Arab businesses are owned by families. Similarly, as in Asian culture, maintaining one’s “face” is important, which is why they are highly sensitive to the people they trade with. Deep sensitivity in the context of any discussion, for example, a common phrase used in communication is ‘Inshalah’ which could be translated as “God’s willing”, and it has many meanings (depending on the subject at hand).

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As the Writers of the book say in their chapter on “other views and values”: “Values ​​are what people essentially share in a particular culture, what helps them co-exist”. There are many contradictions in these cultural beliefs that are specific to ethnicity, as one may observe, and that is why it is so important to be aware of and spot these cultural differences to avoid possible conflicts within the community. Again, by building a new community that represents people from different cultural backgrounds it is important to develop one’s own values ​​to co-exist in a new environment. In Proakatemia, we have five core values ​​– trust, courage, doing, learning and success. This is what keeps us going. Besides, there is so much value in sharing new ideas and concepts that allows us to always innovate and stay in motion. The Paragon of new entrepreneurship.

References:

Browaeys, M. & Price, R. 2011. Understanding Cross-Cultural Management. Second edition. Edinburgh Gate, Harlow, Essex, CM20 2JE, GB: Pearson Education Limited.

Burns, R. 1998. Doing Business in Asia: A Cultural Perspective. Australia: Addison Wesley Longman.

Michailova, S. and Worm, V. 2003. Personal Networking in Russia and China: blat and guanxi. European Management Journal. 21 (4): 509-519.