Succeeding in Saudi Arabia - Essay Example

I shall be representing Saudi Arabia because of its vibrant cultural history and religious value. The Kingdom of Saudi Arabia marks the beginning of Islam and, therefore, is a sacred place for Muslims all over the world. It is the third-largest country in the Middle East with an estimated population of 25.7 million of which 5.5 million are non-Saudis. (Factbook, 2011) The major source of government revenue in Saudi Arabia is the oil exports, accounting to 75% of the revenue and 90% of the exports because the country has the world’s largest oil reserves. LANGUAGE Being the religious centre for all Muslims, Arabic is the official spoken language in the country. It is the language of the Holy Quran, The Book of Islam. Though Arabic dialect varies from city to city and non-Arabs generally speak Urdu, Farsi or Turkish, the classic Arabic has remained unchanged since centuries. English is considered as business language and is also widely spoken and taught in schools. CULTURE IN SAUDI ARABIA The country is known for its diverse and rich cultural heritage. Its culture is reflected in Saudi clothes, cuisines, poetry and particularly grand architecture. The beautifully constructed mosques and local attractions exhibit the vibrant culture of Saudi Arabia. APPAREL The dress code for women is strictly enforced by law. They are required to wear traditional abayas decorated with motifs, sequins and different designs, which cover their head and bodies completely. The loose and flowing clothes are also suited for hot and harsh Saudi climate. Traditionally, men often wear a thawb, a long shirt woven from wool or cotton, with a turban-like keffiyeh or a ghutra worn on the head. During winters, Saudi men wear a camel-hair cloak (bisht) over the traditional thawb. CUISINE As per Islam, pork meat and alcohol is strictly forbidden in Saudi Arabia. One of the most favorite food is kabsa, which is rice and meat. Other common cuisines include falafel, shawarma, ful medames, and grilled chicken served with Arabic bread called khubz. Drinking tea is a habit among Saudis and is preferred in all gatherings. It is served without milk with different herbal flavors. ZAM ZAM WATER Zam Zam Water is miraculously generated well in Mecca which has been quenching the thirst of millions of Muslims over centuries. It is of special significance to Muslims because, according to Islamic belief, this well gushed out when Hazrat Ibrahim’s infant son scrapped his feet against the ground while crying for water. According to scientific research, Zam Zam water has an ability to satisfy both thirst and hunger because it has higher quantity of calcium, fluoride and magnesium. (Zam Zam) ARCHITECTURE Music and theatre has been forbidden for three decades in Saudi Arabia. In recent years, it is becoming more available to citizens but there is minimal cultural theatre and music. Therefore, Saudi culture is strongly reflected in their beautiful architecture. Following historical and modern landmarks contribute greatly to Saudi culture: Mecca It is considered to be the holiest place in the whole Muslim world because it marks the beginning of the Islam. Every year millions of Muslims visit Mecca to perform rituals of Umra and Hajj, therefore, it has become the most diverse and cosmopolitan cities of the Muslim world. In this city, non-Muslims are not allowed to enter. Apart from its historical importance, this land also houses Masjid-al-Haram, which surrounds Kaa’aba, the most sacred site in Islam. It is the world’s largest mosque and can accommodate up to 4 million worshippers during the Hajj period. Madain Saleh It is a pre-Islamic archeological site located in Madinah. It is of high historical significance because, according to Islamic text, Allah punished the Thamudis and destroyed them through an earthquake and lightning blasts, when they planned to kill the Prophet and ignored his teachings and continued with idol worshipping. It is considered as an archeological treasure because of its 131 monumental rock-cut tombs. These individual tombs also indicate the social status of the buried person, i.e. the size and embellishment of the tomb indicates the wealth of the person, and often military ranks are also indicated on few tombs. Al-Masmak Palace The Masmak Palace is located in Riyadh and it is a landmark because of its importance of recapture of Riyadh in 1902. The fort is built with clay and mud-brick; it has four watch towers and thick walls based on stone pillars. It is among the few buildings that were restored by Al-Aziz Historical Centre, in order to preserve buildings and monuments holding historical significance in Saudi Arabia. In 1995, Al-Masmak Palace was made a museum which houses antique guns, costumes and other artifacts. Al-Diriyah It is a small town of Saudi Arabia, located in the outskirts of Riyadh. It is of cultural importance because it was a land of royal Saudi families. It was the first capital of Saudi Dynasty and one of the most famous historical buildings in Diriyah was Salwa Palace, which was a home to Imams and Al Saud Amirs, and was also the largest fort in the town. Saad bin Saud Palace, Imam Mohammad bin Saud Mosque and The Guest House and At-Turaif Bath House are among the most notable historical structures in Diriyah. The Turaif district in Diriyah was declared a UNESCO World Heritage Site in 2010. (At-Turaif District in ad-Diriyah, 2010) Al-Mamlakah Tower The modern landmark and tallest building in Saudi Arabia is the Al-Mamlakah Tower, also called the Kingdom Centre. It is a skyscraper located in Riyadh and the 56th tallest building if the world. After Burj Khalifa, it is the only building that has the highest located mosque. The building has 99 floors and 2 basement levels. The tower contains a shopping mall and an elite hotel. At a height of 290.4 m, there is an observation deck which gives a view of the entire city of Riyadh. It creates a most beautiful shadow in the evening sky. Al-Faisaliah Tower It is also located in Riyadh and is the second tallest building of Saudi Arabia with 44 floors. It is a commercial skyscraper with a shopping mall at the bottom, housing only the top brands in the world. The architecture of the tower is said to be based on the design of a ball point pen. The tower houses different restaurants and a cigar lounge on the top floor. The view from the top of the tower is breathtaking. LIFESTYLE Saudi culture does not permit a frank relationship between males and females, unless they are married or are very close relatives. Saudi Arabia supports the Sunni culture and prohibits non-Muslims to practice their religion publicly. INTERCULTURAL MANAGEMENT While partnering on business with another countrys people, it is very important to know the deep down values, and culture of that country. We have discussed the culture of Saudis in detail. For managements perspective, we need to take into consideration the general cultural norms as well as the practices and management style in organizations. Hofstede Dimensions We will see Saudi Arabias management culture from the framework of Hofstedes Dimensions. Geert Hofstede presented a theory of intercultural management in which he emphasized on the dimensions that differentiate cultures of different organizations. Hofstede believed that cultures of different countries differ in management style and communication. There is no universal management method that can be valid and applicable for all the countries. (Dininni, 2010) Although the theory was presented more than 5 decades ago, it is very much applicable in todays business environment. With businesses operating in different countries, the need to know the different value systems and management style is very important. We will look into Saudi Management style in respect of each dimension of Hofstede: Power Distance Index (PDI): Power Distance Index (PDI) is the degree of inequality of power among people, which is considered normal in the culture. Saudi Arabia has a high PDI as the subordinates look up to the decisions of their leaders. Every major decision is taken by the highest level of manager. There is a horizontal hierarchy in the organizational structure. Subordinates respect the decisions of their leaders and do not normally argue or discuss with them. The leaders delegate the work and communicate the decision to them; and the subordinates take the required actions without objecting. Saudi Arabia scored 80 out of 100 on this. Individualism vs. Collectivism: Individualistic cultures are those where only individual interests, rights and personal achievements are seen. Whereas in collectivist cultures, a group forms one identity and it has a common interest and right. Saudis have a high collectivist cultures. The people combine together to form cohesive groups, where they protect each other, work along with each and have a long lasting relationship. There are extending families in Saudi Arabia. They scored 38 out of 64 countries in this dimension. Uncertainty Avoidance Index (UCI): UCI refers to the tendency of a culture to tolerate ambiguity or uncertainty. Organizations with higher Uncertainty Avoidance Index are risk avoiders and like to be clear about whatever they are doing. Saudi Arabian Management culture has high UCI which make them less comfortable with uncertain situations, and less tolerant to change. Saudis try to ensure that the things that they do are certain and enforce rules and regulations to avoid uncertainty as much as possible. They are very careful and they try to minimize the occurrence of unknown. They scored 68 in the UCI. Masculinity vs. Femininity: Masculinity refers to "the cultural based preference to achievement of relationship" (Dininni, 2010). According to Geert Hofstede, Arab countries scored 53 out of 100 in masculinity which gave them the rank of 23 out of 53 countries. This average score indicates that the gender roles in terms of achievement and relationships are not very different. Although women are not given their due rights in the Arab countries, and there are reservations due to their faith, the men and women have almost the same value in the Saudi Culture. Long Term Orientation vs. Short Term Orientation: Long Term Orientation refers to a countrys orientation towards the future. Countries with high LTO maintain pragmatic values and look into the future. The countries with high Short Term Orientation, look at the past values and cultures. Saudi Arabia has an average LTO. It looks at its traditions and past values, but it also looks into future to progress. Indulgence vs. Restraint: Indulgence refers to the tendency to divulge into things that fulfill inner desires. Since Saudi Arabian culture is highly influenced by the religious norms, their indulgence is very low. Alcohol, purposeless meeting with women, gambling and such things are forbidden in their religion. These restrictions are deeply engraved in them and they avoid indulgence as much as possible. Overall Intercultural Communication Style Overall the business setup in Saudi Arabia is extremely conservative. While having a cross cultural communication, you need to give them respect and be very formal. Saudis like to know the people they do business with, well. They start the conversations with personal life discussions and talk about the important points later on. They generally take time to get to know you better and trust you for the business. Saudis usually take more time than expected. It is very important to remind them the importance of deadlines while doing business. The meetings are usually interrupted easily and they are not very punctual themselves, but expect others to be so. They also expect respect from their business partners. Their women are treated with respect and it is not encouraged to have mix gatherings with male and female. It is not at all accepted in their cultures that men touch women, shake hands, have eye contact or meet unnecessarily. They make decisions slowly, and are very great at negotiation. While doing business with them, their partners will have to compromise on a few things. They usually ask for a very low price when they are buying and set a very high price when they are selling. (Intercultural Management - Saudi Arabia) The culture and politics of the country is greatly influenced by the Islam. Arabians believes in high ethical standards, egalitarianism, and a strong belief that faith is in the hands of God. These are the principles they carry while conducting a business. (Anastos, Bédos, & Seaman, 1980) CONDUCTING BUSINESS Saudi Arabia is rich with natural resources, specially oil that attracts many foreign investments. A survey of US and Arabia show that 80% of the "Fortune 500" and about 35 of the leading financial institutions have explored business in the Saudi Arabia. Saudi Arabia has the worlds largest oil field and thus a booming oil business. With this richness in natural resources, westerns easily get attracted to this country in order to conduct business here. The country has made a five-year development and has an increasing consumer demand that represent great commercial opportunities for outsiders. However, due to political and economic difficulties, it sometimes get difficult to conduct business there. Culture again affects a great deal in business. No organization can obviously use a business that contains wines or pork (the forbidden things in their religion). Mahlon Apgar says that in Saudi Arabia, to conduct a business, a company needs to be careful in planning and needs to bring innovation. Then only it can attract the market and get a stable business there. (Apgar IV) The country has a well established physical infrastrcuture and a decent labor force working. Saudi Arabia has a high business environment score in one of the surveys conducted. Among the islamic countries, it ranks 3rd out 14 countries in business environment. It also scores 16th in eacse of conducting banking business. (Business Environment., 2010) Recommendations While doing a business from Saudi Arabia with other countries, or working at one of the organizations residing there, one has to keep in mind certain things that are very important for such dealings. First of all the managers at Saudi Arabia need to give some power of decision making to their subordinates to encourage creativity and create leaders. In business, it is very important to train your subordinates to replace you in near future as leaders of their subordinates. For this purpose, and to ensure a healthy team work, it is important to make decisions after discussing with them and giving them the opportunity to take some decisions themselves. Secondly it is important that they value other peoples time. They should hold meetings only when necessary and avoid any possible interruptions. It is good to know the partners personally but this should not annoy them to the level that they avoid meetings. Thirdly they should encourage change and creativity among their employees. They need to reduce their UCI. Conclusion Overall the Saudi Culture is rich with its traditions, values and strong faith. The investors see the country as a big opportunity to conduct business with because of its high abundance of resources. Knowing them and their values better is very important to conduct business with them. The dimensions of the framework clearly show the different value systems of the countrys organizations and management. Bibliography Al-Faisaliah Center . (2000). Retrieved April 15, 2011, from ArchNet: http://archnet.org/library/images/one-image.jsp?location_id=5667&image_id=36534 At-Turaif District in ad-Diriyah. (2010, July 31). Retrieved April 15, 2011, from UNESCO: World Heritage Convention: http://whc.unesco.org/en/list/1329/ Business Environment. (2010). Saudi Arabia Business Forecast Report, 9p. Fashioning a menswear style revolution in Saudi Arabia. (2010, November 7). Retrieved April 15, 2011, from BBC News: http://www.bbc.co.uk/news/business-11705976 Anastos, D., Bédos, A., & Seaman, B. (1980). The Development of Modern Management Practices in Saudi Arabia. Columbia Journal of World Business, p81, 12p. Apgar IV, M. (n.d.). Succeeding in Saudi Arabia. Harvard Business Review, p14-168, 9p. Culture of Saudi Arabia. (n.d.). Retrieved April 15, 2011, from MiddleEast Hub: http://www.middleeasthub.com/saudi-arabia/culture-of-saudi-arabia.html Dininni, J. (2010). Guide to Management Theory of Geert Hofstede. Retrieved April 14, 2011, from Work: http://www.work.com/management-theory-of-geert-hofstede-6772/ Factbook, C. T. (2011, January 13). Retrieved April 13, 2011, from Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html Intercultural Management - Saudi Arabia. (n.d.). Retrieved April 14, 2011, from kwintessential: http://www.kwintessential.co.uk/intercultural/management/saudiarabia.html Saudi Arabia - Language, Culture, Customs and Etiquette. (n.d.). Retrieved April 15, 2011, from Kwintessential: http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country-profile.html Zam Zam. (n.d.). Retrieved April 15, 2011, from Aulia-e-Hind: http://www.aulia-e-hind.com/zamzam.htm Read More