Module I: Cultural Diversity in an International Environment

Module II: Management Practices in Indonesia, Philippines, Egypt and

Vietnam

International Environment

Module I: Cultural Diversity in an International Environment

Presence of Diverse workgroups in every organization

Pool of talent that provides the organization with an edge over its competitors

Provides for greater creativity and novelty in the organization

lower employee turnovers and absentees

Importance of Cultural Diversity in International Business

Allows them to understand each other and their cultures

Understand the importance of the cultural heritage and background affect the values, relations and thought process of an individual

Importance of Cultural Diversity in International Business

Therefore, the diversity in the international

businesses and workplace leads to a greater

productivity, efficiency, profitability and

growth of the company.

Importance of Cultural Diversity in International Business

Basic Cultural DifferencesGeneral AcceptabilityLanguage BarrierLack of MotivationRivalriesBiases and Prejudices

Problems of cultural diversity in an international environment

TIPS FOR SUCCESSFUL MANAGEMENT OF CULTURAL DIVERSITY Do the right research on

employee's countrylocal customs and those factors which can make them sensitive

about their culture..The employees from different cultures should

be allowed to dress low-keyTraining not to rush greetings and introduction

with colleagues or other business clients. Allocation of more time to meetings and other

discussions, since it will take time for the diverse group of people to understand the view points of each other.

TIPS FOR SUCCESSFUL MANAGEMENT OF CULTURAL DIVERSITY

Be patient and avoid showing signs of irritation.

The management should talk in jargon which is familiar to all and sundry.

Never criticize the country from which they belong, or comparison with one's own country.

Lastly, the management should try to build a relationship with these employees, and try to inculcate trust within them for the company.

Be PoliteUnderstand various cultural differences and

minor variations in gestures etc.Train the workforce accordingly

International Business Etiquettes and Manners

Module II: Management Practices

Indonesia

Country ProfileMade up of 17,508

Islands, serving a population of 230 million.

Largest population – Muslims

Across the multitude of Islands, the culture changes its shades, the core values remain the same

Culture is mainly influenced by Muslim, Chinese, Indian and European Countries

Indonesian Etiquettes:Greeting: Shake of hand with the word

“Selamat”Titles (Mr., Ms. etc) are important; considered

respectfulIndonesia Etiquettes at the workplace:

Business CardsTreated with respect, the name should be put in

Bahasa as well. Exchanged with the right hand.Conservative culture

Women cover themselves completely

The Business Culture

The Business CultureIndirect Communication

Prime importance in Indonesian Culture

Expressions are polite and soft; loud and aggressive attitude is considered rude

Business is considered sacred, a personal entityFace to face meeting is

considered mandatoryMasking feelings of

bitterness

Based more on relationship with the other party, rather than the business termsRelationship good, deal is likely to strike

Indonesians take pride in their cultureInitial meetings in business may just be to

know each other; respectful to enter in the room according to the ranks

Time is taken lightly

Managing a Business in Indonesia

The manager is expected to understand key responsibilities to ensure steady work flow

Moderately tolerant to change; more than the Asian average

Respecting the different cultures is of prime importance in Indonesia; relationship building is mandatory

Hierarchical structure

Managing a Business In Indonesia

Egypt

Country ProfileSituated in North AfricaAlso known as the Arab

Republic of Egypt.Very populous, meaning the

labor market is brimming. Also considered to be

among the developed economies in the Middle East

Factors like trade liberalization and stability in various segments pushing forth this diversified development

EGYPT BUSINESS CULTUREHierarchical structures, which are extremely

defined The management of Egyptian companies is not

allowed to be risk takers, rather they have to be risk averse

The concept of "managing authority consultatively". The final decision rests with them when it comes to any decision, and there is hardly any delegation to any lower order worker for the final decision making.

Once a decision has been made, it is expected by the senior manager who has made the decision that all his subordinates will follow the decision blindly.

The decision making process is very slow. The religion can play a very important role in

what the final decision is, or what the result of the negotiation is.

BEING A MANAGER IN EGYPTThe business set is of formal nature.Courtesy has to be present at all times. Each person's job responsibilities and status

are distinctly defined. There is no separation of personal life from

the work life in an Egyptian employee's life. Practice successful interpersonal relationship

management as much as possible, if growth is needed.

ORGANIZATIONAL CULTUREThe ability to adapt to change or to be able to

accept change is very low among Egyptians. People would resist change as much as

possible. Egyptians have a trend of respecting age as

well as experience of any person.

EGYPTIAN ETIQUETTEThe Egyptians are hospitable, thus they will

offer tea or coffee whenever there is any business meeting.

The tip to remember is that even if the recipient of the beverage is not interested in drinking the beverage, it would be rude not to accept it.

EGYPTIAN BUSINESS ATTIREThe Egyptians have a habit of judging people

on their appearances. Thus, it is essential for a manager to wear

clothes which are of good quality, and which match the social tier of the high class.

Philippines

Country ProfilePopulation of 70

million people

Mixture of Malay, Spanish and American cultures

Filipinos are among the most performing and hospitable people in the world

Business matters and dealing are done through a face to face meeting in a comfortable environment.

Start the meeting with indirect talks related to friends and commonalities

End the meeting with a cheerful note regardless of the results of the negotiations

Business meeting are normally held in mid-morning or afternoon sessions

Philippines Business Culture

Set their business appointments through a previous business connection or a go-between

“Filipinos avoid confrontation if at all possible. It is difficult for them to say "no". Likewise, their "yes" may merely mean "perhaps".

Address people especially military and bureaucratic in a business meeting with their titles as a show of respect 

Exchange business cards as a routine but the exchange in done in a more informal way

Philippines Business Culture

Relationship bonds run deep in Filipino culture and the manager expects loyalty. In return for this loyalty the boss will look after the interests of those subordinates.

The employees are not warned or scolded in front of the other employees to avoid “loss of face”

Decision making is masking at the top level and flows down the hierarchy to the sub ordinates

Philippines Business Culture

Paternalistic attitude towards the employees

Decision making power is not shared with lower rank employees

Faces a tough challenge guiding the people towards change because Filipinos value their traditional culture

Should show high patience and consider deadline and timescales as fluid

Being a Manager in Philippines

Body language is an integral part of the communications

Maintaining an eye contact with the person speaking is seen as an aggravation and therefore, should not be maintained constantly

Raising eyebrows during a conversation to imply that he has understood or concurs with a statement, rather than as the sign of suspicion that is in many western cultures

Filipino Body Language and Etiquette

Very non-confrontational type of culture where direct conflicts, open criticisms and reprimands and debates are discouraged

Business attire is seen as assign of status and rank in the office

Men are preferred to wear two piece with a white shirt whereas women are preferred to wear slacks and a knee length skirts.

Filipino Body Language and Etiquette

Vietnam

Vietnam-IntroductionPopulation- 85.79 Million

people, Annual Growth rate 1.18%

Form of Government- Communist

GDP for 2008-$ 84.89 Billion

Vietnamese is the official language of the country

Chinese have had great cultural as well as business impact on the society

Vietnamese Business CultureVietnamese Economy has been opening up

ever since they became signatories to the WTO and other such treaties

Formal dressing is considered very important in business meetings

Meetings have to be decided upon a long time before the actual meeting and a confirmation has to be given one week before the actual date

Vietnamese Business CultureExchanging gifts at business meetings is

considered important, specially if it is the first meeting

Paternalistic society and difficult for women to occupy same positions as men do

But once a female occupies a high position, they are given the due respect that the post deserves

Business Culture in VietnamForeign women looking to work in the

corporate sector are acceptableFemales looking to start an entrepreneurial

venture may find it difficult because only females with a high status get respect within the society

Being a Manager80% of 73 million people in Vietnam are

under the age of 40Vietnamese have a culture of being organizedJoining the corporate sector or starting ones

own business venture is considered equally good

Managers are held in great respect

Organizational CultureVast difference between western corporate

culture and the Vietnamese corporate cultureNo Concept of Corporate SecrecyCommissions akin to Bribe are considered

normalMarxist Regime in place since the last 15

years, with the state being the employer for the vast majority

Organization CultureHence there is no concept of organizational

loyaltyThere is loyalty towards managers,

supervisors and teamsWhen manager leaves, the whole team might

leave with him

International organizations cannot ignore the need to appreciate cultural diversity

Culturally diverse force increases the depth of the human resource knowledge

Managers, while dealing with cultural diversity, have to maintain standards

For business graduates, appreciating cultural diversity and working with different people will help them excel internationally

Conclusion