Intercultural management: Business in Saudi Arabia and Transnational Software Developers

Résumé du document

The globalization of the economy, with increased cross-border alliances, ventures and global relocations, as well as the advent of e-commerce, has brought about major changes in the field of international customer relations and inter-cultural diversity management. This has led to an increased appreciation by companies, that managing cultural differences properly can be a key factor in getting things done effectively across borders. With increased contact of personnel and customers from diverse cultural backgrounds, there is a growing demand for businesses to understand and manage the diverse values, perceptions, business worldviews and behaviors of corporations, staff, and its customers. This essay is made up of three parts. The first one is the group work assignment that we have made on cultural issues in our company. The second one concerns the Saudi Arabia case study. This part will present how to do business in this fascinating country, managed by many rules. Then the last one is the case study of the Translational software developers Ltd. This will focus on the difficulties met by the company to manage its multicultural workforces. As a business consultant, I will give some advice on how to manage their employees and develop their stores all around the world.

Extraits

[...] Legal environment Legal system The Saudi Arabian legal system is based on Shari'a. Shari'a courts exercise jurisdiction over common criminal cases and civil suits regarding marriage, divorce, child custody, and inheritance. Such jurisdiction extends to non- Muslims for crimes committed in the country. There is no comparable right for non-Muslims or foreigners, whose cases are handled in regular Shari'a courts. Saudi Arabia does not have much of a formal criminal code, and thus much of its law is derived from an ultra-conservative form of Sunni Islam commonly known as Wahhabism. [...]

[...] Do not point at other people and do not eat with the left hand. Try not to cross your legs when sitting. Never show the bottom of your feet. Women and Business Under Islam, a woman is enjoined to behave modestly in public and, as in the West until recently, is generally expected to give a full commitment to making a family home - a home within which, incidentally, she enjoys a pre- eminent role. Such expectations are rather different from those now widely held of women in the West, just as the stability of family life and the security of women in Islamic society differs markedly from the conditions which women now face in Western society. [...]

[...] Technological environment When looking at Saudi Arabia no competitive advantages form information technology can be identified at this time. The country has fallen behind in terms of technology when compared to its neighbours in the region, only now is the country starting to catch up. The only advantage the country might have is that it has the potential of becoming the regions communication gateway, in a few years if planned well. On the other hand, the only strength is the current infrastructure, being the most modern in the region it lacks many of the weak areas the others had. [...]

[...] Indeed, contrarily to Western Europe, Saudi Arabia is part of the high context cultures. It means that there are some characteristics that we must underline and respect to be sure to success in negotiation: Many things remain unsaid and require assumption More internalized understandings of what is communicated Long term relationships Strong barriers : “outsiders” versus “member of the group” Knowledge is situational and relational. Decisions making is focused around a personal face-to-face relationships and mainly done by one central authority Relationships are far more important than tasks and deals itself Transnational Software Developers Ltd Some definitions Management What is exactly cultural diversity? [...]

[...] The topic of Israel crisis in Iraq and Afghanistan should also be avoided. Politics (particularly international politics) and religion are favorite topics. Sport is on the other hand an appropriate topic. Communications occur at a slow pace. Do not feel obligated to speak during periods of silence. "Yes" usually means "possibly". Your Saudi host may interrupt a meeting and be gone for 15 to 20 minutes for the purpose of his daily prayers ( polychronic culture. At a meeting, the person who asks the most questions is likely to be the least important. [...]