Cross Culture Management : 1 Cross Culture Management Understanding of culture 1 What is the significance of culture?

: 2 Culture gives an individual an anchoring point, an identity as well as codes of conduct. Culture is learned, shared and transmitted from one generation to the next. Collective programming of the mind. Culture is multidimensional, consisting of a number of common elements that are interdependent. Culture is inherently conservative resisting change and fostering continuity 2 What is the significance of culture? Definition of culture : 3 Defined as an integrated system of learned behaviour patterns that are distinguishing characteristics of members of any given society. It includes customs, languages, material artifacts and shared systems of attitudes and feelings. Culture is inherently conservative, resisting change and fostering continuity. 3 Definition of culture The process of acculturation : 4 Adjusting and adapting to a specific culture other than ones own-is one of the keys to success in international operations Balanced Manager-Leverages opposite forces And gains a Competitive Advantage. Edward T Halls High Context Cultures-Asia Low Context Cultures-North America 4 The process of acculturation Elements of culture : 5 Language-Verbal and non verbal Religion-Ideals for life West-Capitalism-Protestant Work Ethic India-Religious tolerance/inclusiveness Values and attitudes Japanese-Gaijin-foreigners Manners and customs-Focus group Material Elements-Economic, Social, financial and marketing infrastructures Aesthetics 5 Elements of culture Elements of culture : 6 Education India emphasizes Sciences Social institutions Social stratification Reference groups 6 Elements of culture Managing across cultures : 7 MNCS have 4 distinct predispositions Ethnocentric predisposition-values & interests of parent company to guide strategic decisions. Polycentric predisposition-strategic decisions tailored to suit the cultures of the countries. Regiocentric predisposition-firm to blend its own interests with those of its subsidiaries on a regional basis. Geocentric Intergrate a global systems approach. 7 Managing across cultures Successful MNC : 8 Uses a mix of these predispositions based on the demands of the current environment. Committed to globalization imperative. Understand the importance of being an insider, for customers who prefer to buy local. Understand that some local subsidiaries want more decentralization and some want less. 8 Successful MNC ORGANIZATIONAL CULTURE : 9 Shared values and beliefs that enables members to understand their roles and the norms of the organization. Important characteristics Observed behavioral regularities as typified by a common language, terminology & rituals. Norms as reflected by things such as amount of work to be done and the degree of cooperation between management and employees. 9 ORGANIZATIONAL CULTURE Characteristics of OC : 10 Dominant values that the organization advocates and expects participants to share Such as high product & service quality Philosophy regarding how employees And customers should be treated. Dos and donts of employee behaviour regarding productivity, customer relations and intergroup cooperation. Overall organizational climate of the enterprise. 10 Characteristics of OC Implications of a globalised world : 11 Substantial differences between the organizational cultures of different subsidiaries. Four main cultural types globally. Family culture-Strong emphasis on hierarchy and orientation to the person.-Asia, Turkey. Eiffel Tower Culture-Strong emphasis on hierarchy and orientation to task.-Western Europe 11 Implications of a globalised world Global cultural types :

12 Guided Missile Culture-Strong emphasis on equality in the workplace and orientation to task.-US, UK. Incubator culture-Strong emphasis on equality and orientation to the person.-Start up firms in Silicon Valley, California. 12 Global cultural types International HRM, managerial aspects & OC : 13 Fallacy-OC tends to moderate or erase the impact of national culture. Fact-Far from reducing national differences Organizational Culture maintains & enhances them. Managerial aspect- Manage the substantial differences between the organizational cultures of different subsidiaries. Manage the subsequent coordination problems International HRM, managerial aspects & OC 13 Challenge of multicultural work groups : 14 Success in the international arena is greatly determined by an MNCs ability to manage both multiculturalism and diversity. Workforces have a variety of cultures & subcultures-Women, men young and old people, blacks , whites, Latins Asians Arabs Indians and others. Evolution of International Corporations Phase 1-Domestic CorporationsCultural Sensitivity is marginally important Challenge of multicultural work groups 14 Slide 15: 15 Phase 2-International Corporations-Cultural sensitivity is very important Phase 3-Multinational Corporationssomewhat important Phase 4-Global Corporation-Critically important 15 Types of Multiculturalism : 16 Domestic Multicultarism-Culturally distinct populations Singapore-Chinese, Eurasian, Indian & Malay Group Multicultarism Homogeneous groups-Similar backgrounds Token groups-All but one have the same background Types of Multiculturalism 16 Slide 17: 17 Bicultural groups-Two distinct cultures Multicultural groups-Three or more ethnic backgrounds. 17 Multicultural team effectiveness : 18 Team members not selected on basis of ethnicity. Innovative task-multicultural membership. Facilitate better understanding of cross cultural differences Team leader must define overall growth. Cultural dominance is counterproductive Minimize early judgements based on ethnic stereotypes. Managers to give feedback to teams. Multicultural team effectiveness 18 Geert Hofstede : 19 Geert Hofstede Data gathered from 116000 respondents from over 70 countries. Individuals worked in the local subsidiaries of IBM. Largest organizationally based study ever conducted. Four dimensions of Hofstedes study. Slide 20: 20 Power Distance The extent to which less powerful members of institutions and organizations accept that power is distributed unequally. High PD=Centralized Latin America, Asia Low PD=Decentralized North America Uncertainty Avoidance : 21 Uncertainty Avoidance The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. High UA-Germany, Japan and Spain Low UA-Denmark, UK. Individualism vs Collectivism : 22 Individualism vs Collectivism Individualism is the tendency of people to look after themselves and their immediate family only. Collectivism is the tendency of people to belong to groups or collectives and to look after each other in exchange for loyalty. High individualism and high GNP US, Canada Australia, Denmark & Sweden High Collectivism & Low GNP-Indonesia, Pakistan, South American Countries. Masculinity vs Feminity : 23 Masculinity vs Feminity Maculinity-A situation in which the dominant Values in society are success, money and things Femininity-A situation in which dominant values in society are caring for others and the quality of life. High maculinity index-Germanic countries Low maculinity index-Norway Trompenaars Cultural Dimensions :

24 Trompenaars Cultural Dimensions Dutch Researcher Fons Trompenaars research conducted over a 10 year period and published in 1994. Research questionnaires to over 15000 managers from 28 countries. Five relationship orientations that are analogous to Hofstedes dimensions. Universalism vs Particularism : 25 Universalism vs Particularism Universalism is the belief that ideas and practices can be applied everywhere without modification US,UK, Australia Germany Particularism is the belief that circumstances dictate how ideas and practices should be applied. Venezuela, former Soviet Union, Indonesia, China. Individualism vs Communitarianism : 26 Individualism vs Communitarianism Individualism refers to people regarding themselves as individuals US, former Czechoslovakia, Argentina former Soviet Union Communitarianism refers to people regarding themselves as part of a group. Malaysia, Korea Neutral vs Emotional : 27 Neutral vs Emotional A neutral culture is one in which emotions are held in check. Japan, UK An emotional culture is one in which emotions are openly and naturally expressed. Mexico, Netherlands, Switzerland. Specific vs Diffuse : 28 Specific vs Diffuse A specific culture is one in which individuals have a large public space they readily let others enter and share and a small private space they guard closely and share with only close friends and associates. Austria, US, UK Switzerland. A diffuse culture is one in which public space and private space are similar in size and individuals guard their public space carefully. Venezuela, China and Spain. Achievement vs Ascription : 29 Achievement vs Ascription An achievement culture is one in which people are accorded status based on how well they perfom their functions US,UK,Austria Switzerland. An ascription culture is one in which status is attributed based on who or what a person is Venezuela, Indonesia,China Clyde Kluckhohn : 30 Clyde Kluckhohn Values Orientation Theory Cross Cultural understanding can be analysed by a given cultures orientation to five key aspects of human life. Human Nature (People seen as intrinsically good, evil or mixed). ManNature Relationship (The view that humans should be subordinate to nature, dominant over nature or live in harmony with nature). Slide 31: 31 Time (Primary value based on past/tradition, Present/enjoyment or future/posterity/delayed gratification. Activity (being, becoming/inner development or doing/striving/industriousness) Social Relations (Hierarchial, collateral/collective-egalitarian or individualistic) Initially believed in biological equality of races later reversed. His belief that we are a product of a strange mix of biology and culture is applicable to both psychology and anthropology. Edward T Hall : 32 Edward T Hall High Context and low context cultural factors High Context cultures there are many contextual elements that help people to understand the rules. As a result much is taken for granted. French contracts tend to be short as much of information is available within high context French Culture Much Non Verbal Communication Similarity with Particularism HALL : 33 HALL Low Context Culture Very little is taken for granted. More explanation is needed, there is less chance of misunderstanding American contracts tend to be longer in order to explain the detail Highly mobile environments where people come and go . More focus on verbal communication Similarity with Universalism Business Culture in China : 34 Business Culture in China PRC has a long tradition of isolation 1979-Deng Xiaoping opened to the world Now a member of WTO and trading partner of US. Primary criterion for doing business is technical competence. Emphasis on punctuality. Patience is critically important as numerous meetings Guanxi-good connections Slide 35:

35 Important to be a good listener Collective society. Much less animated and avoid open displays of emotion Negotiations viewed with a long term perspective In negotiations reciprocity is important. Critical to give face and save face when doing business negotiations Business in China-meeting & greeting : 36 Business in China-meeting & greeting Meetings start with shaking of hands, not vigorous and a slight nod of the head. Body language & body posture should be formal and attentive Business Cards exchanged on initial meeting. One side of the card should be translated and Chinese letters should be printed using gold ink. Establish a contact to act as intermediary. They can act as reference, interpreter and navigate through bureaucracy, legal system and local business networks. Middle East : 37 Middle East Fatalistic approach to time A belief that destiny depends more on the will of a supreme being. Status largely determined by family position and social contact and connections. Action based on emotion Elaborate and ritualized form of greetings and leave takings. Business related discussions may not occur till third or fourth meeting. Arabs attach a great deal of importance to status and rank. Slide 38: 38 Avoid doing business during month of Ramadan and major Eid festivals. Handshakes amongst men always used & can last a long time, between men & women uncommon. Doing business revolves around personal relationships, family ties trust & honour. Place value on the spoken word as opposed to written agreements Middle East business meetings : 39 Middle East business meetings Meetings should not be made too far in advance as changes in personal circumstances may impact appointment Initial meetings all about relationship building Meetings can be chaotic Meetings are circular in nature and do not follow a linear pattern of agendas or targets. Punctuality desirable, not essential Arabs were a trading people and are excellent negotiators. Business Culture in USA : 40 Business Culture in USA Time is Money and they believe that they control their own time. Social interactions less affected by class stereotypes & upward social mobility more likely. Less accustomed to conflict and do not accept that some positions are irreconcilable. Business meetings may seem to have a confrontational approach where all the relevant issues are directly debated even at the expense of personal relationshops. Ready to make concessions in negotiations. Tend to evaluate a persons trustworthiness based on past achievements. Slide 41: 41 Decentralized flattened organizations in the UNITED STATES. Emphasis on faster decision making in the US. Top level US executives must continually defend their decision to CEO or board of directors. A great deal of motivation derived from professional accomplishment. A firm pumping handshake considered to be cultured Business Etiquette : 42 Business Etiquette People in East dress more formally, in the West more casual. Casual Fridays common in many companies. For initial meeting dressing conservatively in good taste. Business Cards exchanged without formal ritual Communication styles are direct. NorthEast and Mid West people extremely punctual, in Southern & Western States more relaxed. Slide 43: 43 Meetings have a linear agenda which is followed. At the conclusion of the meeting will be a summary of what was decided and who will implement what. Visual aids normally used to enhance the case Statistics used to back up the claims Emphasis on getting a contract signed rather than building a relationship. Japan Business Culture : 44 Japan Business Culture The Japanese and Face They do not openly criticize or put anyone on the spot. Saving face is crucial in Japanese Society. Harmony in Japanese Society Place great emphasis on politeness, personal responsibility and working for the universal rather than the individual group. Slide 45: 45 Japanese non verbal communication They rely on facial expression, tone of voice and posture to tell them what someone feels. The context in which something is said affects the meaning of words. Japanese Hierarchy Very

conscious of age and status. Etiquettes and customs in Japan Meetings in Japan are very formal and ritualized. The traditional form of greeting is the bow. Business Protocol : 46 Business Protocol Gift giving etiquette is highly ritualistic and meaningful. Always give a small gift to seniormost person at end of meeting Understanding of foreign ways Prefer to do business on basis of personal relationships In business meetings etiquette appointments are required and should be made several weeks in advance. The most senior Japanese person will be seated furthest from the door, rest in descending rank. Slide 47: 47 Business Negotiation non confrontational Business attire is conservative Business cards are exchanged constantly. Business Culture South Korea : 48 Business Culture South Korea South Korean Businessmen greet each other with a slight bow, sometimes accompanied by a handshake. Women also shake hands Address people by their title and family name. Business Cards exchanged frequently. Gift giving etiquette a part of doing business. Gifts are always reciprocated Business meetings are booked well in advance. Slide 49: 49 Punctuality is important in South Korea and being on time is recommended. When entering a meeting room, the most senior member of delegation should enter room first and sit at the middle of the table. Implications for HRD & HRM : 50 Implications for HRD & HRM Sources of Human Resources Home Country Nationals-Managers of country where MNC is headquartered-expats. US & Europe use Home Country Nationals in les developed regions but preferred host country nationals in developed nations. Japanese use home country nationals in all geographic areas. They help in providing technical expertise and maintain financial control over the operation. Slide 51: 51 Host Country Nationals-Local Managers hired by MNC mainly at middle and lower level ranks. They are familiar with culture, know language, less expensive than home country personnel and hiring them is good public relations Third Country Nationals-Managers who are citizens of countries other than the country in which the MNC is headquartered or the one in which they are assigned to work by the MNC. Slide 52: 52 Inpatriates-An individual from a host country or third country national who is assigned to work in the home country. Selection Criteria for International Assignments : 53 Selection Criteria for International Assignments Adaptability to cultural change and to integrate with different people, cultures and types of business organizations Physical and Emotional Health Age, Experience and Education Language Training Motivation for a Foreign Assignment Spouses and Dependents or Work-Family issues Leadership ability International HR Selection Procedure : 54 International HR Selection Procedure Testing and Interview procedures Extensive interviews of candidates and their spouses by senior executives still ultimately provide the best method of selection. The adjustment process Anticipatory adjustment-before expat leaves for assignment In country adjustment-On Site Compensation : 55 Compensation Base Salary-according to base pay of home countries and paid in home currency, local currency or a combination of the two. Benefits-Approximately one-third of compensation. Most MNCs include expats in home office benefit programs. Extra vacation and special leaves. Allowances-Cost of living allowances for relocation, housing,educaton and hardship. Slide 56: 56 Incentives-One time lump sum payment. It is a separate payment, distinguishable from regular pay and more readily available for saving or spending. Taxes-Tax equalization. MNCs pay the extra tax burden.

Training & Development : 57 Training & Development Help expat managers better understand the customs, cultures and work habits of the local culture. Use of flexible cross functional teams Accelerated Resource Development and early identification of high potential employees Employee welfare emphasis Efficiency emphasis Long termism which stresses innovation and creativity rather than weekly and monthly productivity Training and Communication : 58 Training and Communication Tailor made training programs for specific and communication needs of participants. Environmental briefings-info on geography, climate housing and schools Cultural orientation-Cultural institutions and value systems of host country Cultural assimilators-Programmed learning approaches designed to provide participants with intercultural encounters Language training Sensitivity training-attitudinal flexibility Field experienceLiving and working with people of a different culture. Cross Cultural Communications & Complexities : 59 Cross Cultural Communications & Complexities Indirect and direct styles-High Context cultures,messages are implicit and indirect (France) as opposed to Low Context cultures (US) where messages are direct and focused. Elaborate has high quantity of talk. Arab countries. Exacting has moderate amount of talk. England, Germany, Sweden. Succint has low amount of talk.Asia Contextual focuses on speaker and role relationships.Asia. Personal focuses on speaker and personal relationships. Affective language is process oriented and reciever focused.Asia. Instrumental language is goal oriented and sender focused.US A Responsible Global Manager : 60 A Responsible Global Manager Cross Cultural Decision Maker Define the locus of decision making whether centralized or decentralized. British decentralized, French , US & German centralized. Large sized organizations with large capital investment & high degree of technology favour centralization & vice versa. Some decisions purely on ROI basis Some decisions more on cultural differences like Ford Fiesta to Ford IKon in India. Slide 61: 61 A Global Manager has commitment to TQM Decides how much decision making to delegate to subordinates as TQM uses employee empowerment. Decides on use of concurrent engineering/interfunctional teams of designers, engineers, production specialists and customers. Eg IBM AS/400 computer systems moved to J Walk. Decides on Rewards and Recognition from increases in pay and benefits to use of discretionary bonuses, plaques and public recognition. Global Manager as Negotiator : 62 Global Manager as Negotiator Has to deal with barriers Language barriers Cultural Barriers Perceptual barriers Deal with Non verbal communication Kinesics-Facial expression Proxemics-Physical space Chronemics-Time used in a culture Chromatics-Use of color Slide 63: 63 Global Negotiation tactics Location-Important negotiations neutral site Buyer Seller Relations-Degree of objectivity Use of Extreme behaviours Use of promises and rewards Non verbal behaviors Silent period Touching Conversational overlap Global Manager as leader : 64 Global Manager as leader Blend of Three Management styles-Douglas Mcgregor a) Authoritarian-work centered behaviour-Theory X-People are lazy and coercion and threats of punishment must be used to get them to work b) Paternalistic leadership-work centered behavior +protective employee centered concern Soft Theory X Slide 65: 65 Participative leadership-both work centred and people centred Theory Y + Theory Z Theory Y-Under right conditions people will work hard and seek increased responsibility and challenge. Theory Z-Theory Y + modern Japanese techniques. Workers seek opportunities to participate in management and are motivated by long term employment. International leadership context : 66 International leadership context European Managers-Mostly participative French & German Authoritarian approach British, Scandinavian & rest-Participative approach Japanese Managers-Paternalistic approach Chinese

Managers-New generation uses participative leadership. Middle East Leaning towards participative leadership IndiaEqual mix of authoritarian and participative leadership Slide 67: 67 Global Managers aim to be Transformational Leaders-visionary agents with charismatic leadership Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration Business Culture in China : 68 Business Culture in China PRC has a long tradition of isolation 1979-Deng Xiaoping opened to the world Now a member of WTO and trading partner of US. Primary criterion for doing business is technical competence. Emphasis on punctuality. Patience is critically important as numerous meetings Guanxi-good connections Slide 69: 69 Important to be a good listener Collective society. Much less animated and avoid open displays of emotion Negotiations viewed with a long term perspective In negotiations reciprocity is important. Critical to give face and save face when doing business negotiations Business in China-meeting & greeting : 70 Business in China-meeting & greeting Meetings start with shaking of hands, not vigorous and a slight nod of the head. Body language & body posture should be formal and attentive Business Cards exchanged on initial meeting. One side of the card should be translated and Chinese letters should be printed using gold ink. Establish a contact to act as intermediary. They can act as reference, interpreter and navigate through bureaucracy, legal system and local business networks. Middle East : 71 Middle East Fatalistic approach to time A belief that destiny depends more on the will of a supreme being. Status largely determined by family position and social contact and connections. Action based on emotion Elaborate and ritualized form of greetings and leave takings. Business related discussions may not occur till third or fourth meeting. Arabs attach a great deal of importance to status and rank. Slide 72: 72 Avoid doing business during month of Ramadan and major Eid festivals. Handshakes amongst men always used & can last a long time, between men & women uncommon. Doing business revolves around personal relationships, family ties trust & honour. Place value on the spoken word as opposed to written agreements Middle East business meetings : 73 Middle East business meetings Meetings should not be made too far in advance as changes in personal circumstances may impact appointment Initial meetings all about relationship building Meetings can be chaotic Meetings are circular in nature and do not follow a linear pattern of agendas or targets. Punctuality desirable, not essential Arabs were a trading people and are excellent negotiators. Business Culture in USA : 74 Business Culture in USA Time is Money and they believe that they control their own time. Social interactions less affected by class stereotypes & upward social mobility more likely. Less accustomed to conflict and do not accept that some positions are irreconcilable. Business meetings may seem to have a confrontational approach where all the relevant issues are directly debated even at the expense of personal relationshops. Ready to make concessions in negotiations. Tend to evaluate a persons trustworthiness based on past achievements. Slide 75: 75 Decentralized flattened organizations in the UNITED STATES. Emphasis on faster decision making in the US. Top level US executives must continually defend their decision to CEO or board of directors. A great deal of motivation derived from professional accomplishment. A firm pumping handshake considered to be cultured Business Etiquette : 76 Business Etiquette People in East dress more formally, in the West more casual. Casual Fridays common in many companies. For initial meeting dressing conservatively in good taste. Business Cards exchanged without formal ritual Communication styles are direct. NorthEast and Mid West people extremely punctual, in Southern & Western States more relaxed.

Slide 77: 77 Meetings have a linear agenda which is followed. At the conclusion of the meeting will be a summary of what was decided and who will implement what. Visual aids normally used to enhance the case Statistics used to back up the claims Emphasis on getting a contract signed rather than building a relationship. Japan Business Culture : 78 Japan Business Culture The Japanese and Face They do not openly criticize or put anyone on the spot. Saving face is crucial in Japanese Society. Harmony in Japanese Society Place great emphasis on politeness, personal responsibility and working for the universal rather than the individual group. Slide 79: 79 Japanese non verbal communication They rely on facial expression, tone of voice and posture to tell them what someone feels. The context in which something is said affects the meaning of words. Japanese Hierarchy Very conscious of age and status. Etiquettes and customs in Japan Meetings in Japan are very formal and ritualized. The traditional form of greeting is the bow. Business Protocol : 80 Business Protocol Gift giving etiquette is highly ritualistic and meaningful. Always give a small gift to seniormost person at end of meeting Understanding of foreign ways Prefer to do business on basis of personal relationships In business meetings etiquette appointments are required and should be made several weeks in advance. The most senior Japanese person will be seated furthest from the door, rest in descending rank. Slide 81: 81 Business Negotiation non confrontational Business attire is conservative Business cards are exchanged constantly. Business Culture South Korea : 82 Business Culture South Korea South Korean Businessmen greet each other with a slight bow, sometimes accompanied by a handshake. Women also shake hands Address people by their title and family name. Business Cards exchanged frequently. Gift giving etiquette a part of doing business. Gifts are always reciprocated Business meetings are booked well in advance. Slide 83: 83 Punctuality is important in South Korea and being on time is recommended. When entering a meeting room, the most senior member of delegation should enter room first and sit at the middle of the table.

SOUTH KOREA

Business Etiquette and Protocol

Relationships & Communication . South Koreans prefer to do business with people with whom they have a personal connection. . It is therefore crucial to be introduced by a third-party. . Relationships are developed through informal social gatherings that often involve a considerable amount of drinking and eating. . Individuals who have established mutual trust and respect will work hard to make each other successful. . South Koreans treat legal documents as memorandums of understanding. . They view contracts as loosely structured consensus statements that broadly define agreement and leave room for flexibility and adjustment as needed. . Under no circumstances insult or to criticize in front of others. . Sensitive matters may often be raised indirectly through the intermediary that first made the introductions. . South Koreans are extremely direct communicators. They are not averse to asking questions if they do not understand what has been said or need additional clarification.

. This is a culture where "less is more" when communicating. Respond to questions directly and concisely. . Since there is a tendency to say "yes" to questions so that you do not lose face, the way you phrase a question is crucial. It is better to ask, "When can we expect shipment?" than "Can we expect shipment in 3 weeks?", since this question requires a direct response. Business Meeting Etiquette . Appointments are required and should be made 3 to 4 weeks in advance. . You should arrive on time for meetings as this demonstrates respect for the person you are meeting. . The most senior South Korean generally enters the room first. . It is a good idea to send both an agenda and back-up material including information about your company and client testimonials prior to the meeting. . The main purpose of the first meeting is to get to know each other. . Meetings are used to understand a client's needs and challenges. They lay the foundation for building the relationship. . Do not remove your jacket unless the most senior South Korean does so. . Have all written materials available in both English and Korean. Dress Etiquette . . . . Business attire is conservative. Men should wear dark- coloured, conservative business suits with white shirts. Women should dress conservatively and wear subdued colours. Men should avoid wearing jewellery other than a watch or a wedding ring.

Business Cards . Business cards are exchanged after the initial introductions in a highly ritualized manner. . The way you treat someone's business card is indicative of the way you will treat the person. . Have one side of your business card translated into Korean. . Using both hands, present your business card with the Korean side facing up so that it is readable by the recipient. . Examine any business card you receive carefully. . Put the business cards in a business card case or a portfolio. . Never write on someone's business card in their presence. MIDDLE EAST The Middle East is an area which carries many stereotypes and myths. Before doing business in the Middle East it is imperative to learn about areas such as business culture, business etiquette, meeting protocol and negotiation techniques. Through such knowledge stereotypes are broken and barriers to communication reduced. When doing business in the Middle East, it is wise to bear in mind the great diversity within the region. However, a common religion, language and culture make the highlighting of general traits and features for the region valid. In this short guide to doing business in the Middle East, business culture and etiquette are explored. These are in no way meant to represent a comprehensive summation of tips on doing business in the Middle East, but a highlighting of some main areas one may consider.

Islam One cannot talk about the Middle East in a cultural sense without mentioning Islam. Islam permeates all levels of society. It provides guidance, values and rules for personal life, community relations and ways of doing business.

Within the confines of this short introduction, justice cannot be served to such a highly complex faith. Therefore, it is advisable that one conducts their own research on Islam before doing business in the Middle East. However, we can look at a few examples of the manifestations of Islam and the way in which these may impact your business trip. Muslims are obliged to pray five times a day. Prayer times are announced by the mosques using the call to prayer (azan). Not all Muslims go to the mosque. Some pray at home or in the office. Daily routines, appointments and meetings must be fitted in appropriately around prayer times. Friday is the day for congregational prayers and it is obligatory for all males to attend. Avoid trying to do business in the Middle East during the month of Ramadan. Muslims fast from dawn till dusk which involves refraining from eating, drinking or smoking. During business hours general activity is reduced depending on the nature of the company or organisation. There are two major festivals of note. Eid al-Fitr follows Ramadan and Eid al-Adha follows the annual pilgrimage. These holidays last approximately three days although it is not uncommon for the government to extend these. It is best to avoid doing business on or near the two Eids. Doing Business - Meeting and Greeting The traditional Islamic greeting you will hear is 'Asalamu alaykum' (peace be with you). As a non-Muslim you would not be expected to use it, but if you did you would receive the reply 'wa alaykum salam' (and peace be with you). When doing business in the Middle East, handshakes are always used and can last a long time. Islamic etiquette recommends that one waits for the other to withdraw their hand first before doing the same. Always use the right hand. Do not be surprised if your hand is held while you are led somewhere. Holding hands among men is common and does not carry the same connotations as it does in the West. Arabs are fairly informal with names when doing business and generally address people by their first names. John Smith will be addressed as Mr. John. Arab titles of note are: Sheikh (an old man, scholar, leader), Sayyid (descendant of the Prophet Muhammad) and Hajji (one who has performed the pilgrimage). Doing Business - Gender The roles of men and women are far more defined in the Arab culture. Interaction between the sexes is still frowned upon in certain arenas. However, when doing business in the Middle East it is not uncommon to come across women. If you are introduced to a woman as a male, it is advisable to wait and see if a hand is extended. If it is not, then do not try to shake hands. Avoid touching and prolonged eye contact with women. Doing Business - Business is Personal Many Westerners that have lived or worked in the Middle East might use the words chaotic, disorganised and frustrating when discussing doing business there. Although this is a matter of perception, it is true that business runs on very different tracks to business in the West. The Arabs do not separate professional and personal life. Doing business revolves much more around personal relationships, family ties, trust and honour. There is a tendency to prioritise personal matters above all else. It is therefore crucial that business relationships are built on mutual friendship and trust. A consequence of this mentality is the system known as 'wasta'. If you have friends or contacts in the right places then rules can be bent or things done more quickly. The system works on the basis that favours are

reciprocated and never forgotten. Although it may seem biased, it is something that should be exploited when doing business in the Middle East. Doing Business - The Spoken Word The Middle Eastern culture places more value on someone's word as opposed to a written agreement. A person's word is connected to their honour. Contracts are viewed as memorandums of understanding rather than binding, fixed agreements. Be sure to promise only things you can deliver. Failure to do so will result in loss of honour. Doing Business - Meetings & Negotiations Meetings should not be made too far in advance as changes in personal circumstances may impact your appointment. Once an appointment has been made, confirm it verbally with the person you will meet a few days before. Initial meetings are all about relationship building. Building trust and establishing compatibility are key requisites for doing business in the Middle East. One should engage in conversation and try to get to know the 'person' you are doing business with. Meetings can be chaotic. Always be prepared to exercise patience. Phone calls are taken during meetings and people may enter the meeting room unannounced and proceed to discuss their own agendas. Meetings are circular in nature. They do not follow a linear pattern and are not structured upon agendas or targets. Issues are raised as and when. Punctuality is expected of foreigners. Although the Arabs place a high emphasis on punctuality they rarely practice it themselves. In fact, if Arabs want to stress that a set time must be adhered to they use the term 'mow'id inglizee' - literally, 'English meeting'. However, if you are running late do not panic as polite excuses will be accepted. If negotiating, remember the Arabs were a trading people and are excellent negotiators. Haggling takes places everywhere, whether at the shop or in the board room. Decisions are made slowly. Bureaucratic formalities tend to add to delays. Do not use high pressure tactics as they will be counter-productive.

Business Etiquette and Protocol in Belgium

Relationships & Communication . Although third-party introductions are not necessary, they often smooth the way. . Regardless of how you are introduced, you must always be polite and well mannered. . Belgians are careful and prudent so take time before they trust others, be they individuals or representatives of companies. . Business dealings tend to be bureaucratic. There are many procedures and a great deal of paperwork. . Belgians are excellent linguists and many are sufficiently fluent to conduct meetings in

English. . Belgians prefer subtlety to directness, believing that subtlety is a reflection of intelligence. . Although they are more direct in their communication than many cultures, if a response is too direct it may be seen as simplistic. . They prefer communication to be logical and based on reason . Belgians often engage in long, critical discussions before reaching a decision so that they can be certain that they have considered all the alternatives. . They believe it is rude to be confrontational. Business Meeting Etiquette . Appointments are necessary . The person you are meeting will generally set the time for the meeting, usually mid morning or mid afternoon. . Avoid scheduling meetings during July and August, which are prime vacation times; the week before Easter; and the week between Christmas and New Year. . Everyone is expected to arrive on time . Arriving late may brand you as unreliable. . Meetings are formal . First appointments are more socially than business oriented, as Belgians prefer to do business with those they know. . Do not remove your jacket during a meeting. Dress Etiquette . . . . Men should wear dark coloured, conservative business suits with white shirts and silk ties. Women should wear business suits or conservative dresses. Men should only wear laced shoes, never loafers or other slip-ons, as they are too casual. Polished shoes are an integral part of a professional image.

Business Cards . Business cards are exchanged without formal ritual. . Have one side of your business card translated into French or Dutch. This shows respect and understanding of the linguistic heritage of your colleagues. . If you have meetings in both areas, have two sets of business cards printed, and be careful to use the proper ones. . Present your business card so the recipient can read the side with their national language.