Intercultural Management: The Company in Dealing with Qatar - Case Study Example

Intercultural management Introduction The company from the very onset is very committed to the strict observation of internationallabor laws (ILO, 2005, p. 6). The company is aware that there have been reports by Human Rights Watch of the violation of the rights of migrant workers and, even domestic workers in Qatar. The reports have been in the areas of recruitment where gaps in the process have been reported, violations of international labor laws, poor terms and conditions of employment, challenges in sponsorship programs, and inadequate systems of monitoring and redressing mechanisms. The company is also well aware of the variance between the Qatari labor laws and the international labor laws. The company in dealing with Qatar is of the opinion that Qatari Law provides for the observsavence of International Legal Obligations. It is with this background that Baustelle AG plans to operate as an international company. The company will go to lengths to respect the National Law to the extent that it does not violate Qatar’s International Legal Obligations and Business and Human Rights Responsibilities. This is corporate responsibility and which is a good way to promote the image of the company both locally and internationally (Reddy, 2005). The company undertakes to ensure independent verification of workers to ensure that all employees who the company contracts for the construction of the world cup facilities have not and will not be exploited. The company is very committed to maintaining its high standards both locally and internationally. Political relations The company is aware that there are differences in the way the politics of Qatar operate and that there is a possibility that the Emirs youngest son maybe awarded the contract for local partner in the local subsidiary. The Emirs son Abdul has very little experience in the construction sector and the company therefore anticipates very little participation from him by way of the operations. The company views the alliance as a beneficial one to it because the Emirs son can assist with the politics and the speeding up of government bureaucracy since he is a local and in high standing. The company however plans to lay down very clear working relations in line with its standards of operations to the Emirs son. The company does not envisage problems with the Qatari government since relations between Germany and Qatar have become very strong due to many high-ranking visits by high-ranking officials on both sides. These high-ranking official visits have included Federal Chancellor Merkel and The Emir of Qatar who paid each other’s countries visits in 2010. Political goodwill can be harnessed for good business (Wittman, 2008). These were followed by Qataris prime minister’s visit in 2013 and 2014 to Germany and the company can rely on Germany’s federal minister’s visit to Qatar in 2013.Qatar’s commitment with Germany because the German government celebrated its fortieth year of bilateral relations with Qatar in 2013. This means that the government of Germany is committed to establishing good business relations with Qatar and this will help in the handling of political challenges for the company, which is German.Countires should take advantage of political relations to encourage the growth of their economies by helping their private enterprises grow and expand into other countries (Borgerhoff Mulder, 2005). This is what Germany is doing. Economic relations Political relationships between countries have a lot of influence on economic relations. It is safe to assume that when a countries political relationship turns up for good it will increase the amount of trading between the two countries (Wittman, 2008). The company will not be the first German company to invest in Qatar and its interest will be under the protection of the” investment promotion and protection agreement between Germany and Qatar entered and in force since January 1999. In 2013, bilateral trade increased to approximately EUR 2.02 -13824, compared with approximately EUR 1.8 -13824 in 2012. In 2013, German exports to Qatar were worth around EUR 1.3 billion and German imports from Qatar approximately EUR 760 million. In terms of value, motor vehicles, plant and machinery top the list of German exports to the country.” German companies are already very active in Qatar in the area of plant construction and building industry. They are also becoming a very formidable force in the service and gas sector and therefore the company will not be making any ripples by entering into business in Qatar. Other reputable companies are also doing business in Qatar. This means that the company will be in good company since other reputable German companies are already present in the chemical, construction, mechanical, environmental and medical sectors. These German companies will prove to be useful allies in terms of working with the company. Qatar has proven their commitment to German companies by making investments in Germany. This was done through holdings in such companies as Volkswagen, Hochtief plus Siemens. In fact, the in Business and investment Forum under the patronage of Prime Minister Hamad was held in Berlin and opened by Federal Chancellor Merkel to promote business ventures in Qatar by German companies. Mutual forums held between countries promote economic relations and foster better business relations both in the government and private sector foot eh mutual benefit of both countries (Hanushek, 1995, p. 35). Cultural relations Germany and Qatar plan to hold a bilateral cultural year in 2017. The company hopes that it can capitalize on the already existent receptiveness to German culture and education in Qatar. Culture has a dominant role in determining the adjustment to otherwise of those from the parent culture to the host culture (Baldwin, 1994)the expartes workers whom work in Qatar will should have no problem finding a school for their children. It is important for families of expartes workers to also adjust to the new working environment of their loved one in order for them to be well adjusted both culturally and at work. This is because there is a German school in Doha that has been in operation since 2008, which has been expanded into an international German-Qatari School. This projected as on that can provide acceptable standards of education for all the company workers children. The company also plans to have a good comprehensive medical plan for all its workers in Qatar regardless of level. The company plans to take advantage of the good working relations between Germany’s medical sector through the University Clinic of the Johann Wolfgang Goethe University in Frankfurt and the Sultan Hamad’s Medical Corporation, which is Qatar’s public medical facility. The concept of health is universal and every society strives to live a healthy and productive life (Gudykunst, 1997) which becomes ever more important in a new environment. Providing medical covers for workers is productive in that it encourages productivity due to feelings of safety and care in case of sickness, disease or injury. The company plans to display the Qatari culture in its construction and aesthetics so that the history and local culture is properly exhibited in the finished work at the world cup. For this the company plans to seek the expertise of the Qatar Museums and the Dresden state Art collections a leading German museum. Since this is a project, which, focuses on football, coaches in Qatar’s sports academy and university will be involved in the sampling of Qatari understandings of football as a game. FONS TROMPENAARS In understanding the culture in Qatar, the company has decided to adapt Fons Trompenaars’ understanding of culture in helping smooth interactions in the political, social and personal relationships in Qatar. Culture cannot be de-linked from economic pursuit because not involve people who both live in a culture and practice economic activities within the context of cultures (Borgerhoff Mulder, 2005). The Trompenaars model of national culture which is to be adapted has differences seven dimensions. This is how the company plans to implement those understandings. Universalism vs. particularism (What is more important, rules or relationships?) The company is German which comes from an individualistic society and is moving to Qatar, which is a communal society. Relationships matter more that rules in the new host culture that the company will be working in I. Individualism vs. collectivism (communitarianism) (Do we function in a group or as individuals?) The culture in Qatar that is the host culture is communal and so works as a collective whole and so it will help if those making decisions are the parent culture at home in Germany understands that the work environment will differed in terms of interaction (Bender, 2002). II. Neutral vs. emotional (Do we display our emotions?) The German culture is very unemotional while the Qatari is robust and emotional. Care must be taken by the German side so as not to appear unresponsive while reactions from the Qatari side should be understood as a cultural expression. III. Specific vs. diffuse (How separate we keep our private and working lives). The Qatari will mix business relationships with personal relationships because that is the way of their culture. Therefore, care should be taken to maintain acceptable etiquette. IV. Achievement vs. ascription (Do we have to prove ourselves to receive status or is it given to us?) The Qatari has strong traditions and a proper way of recognizing those in position and this should be taken into consideration when dealing with officials and nobility. V. Sequential vs. synchronic (Do we do things one at a time or several things at once?) The western cultures are generally sequential and systematic in nature while eastern cultures are synchronic and mix all things at once and this must be understood in order for smooth working relations to take place in the host culture in Qatar. VI. Internal vs. external control (Do we control our environment or are we controlled by it?) The culture in Qatar has a very strong controlling effect on all spheres of life and this may present a problem for expartes who may be used to controlling the environment resulting in frustration. Conclusion The company plans to comply with existing laws and require that its local partners and subcontractors do the same. The company will require that all local partners and subcontractors declare its commitment to human rights of all workers before it can enter into any contracts with them. It will also require that the partners and subcontractors submit themselves to assessments to establish if they violated human rights or if they have been guilty of human trafficking and forced labor. The company will require that subcontractors and local partners monitor their work sites and labor camps by using independent labor monitors as a condition to their contract. The company as part of the contract between them and the subcontractors and local partners will require a full disclosure of all work related injuries, fatalities, and their recording at respective embassies. The company will require government commitment to respecting workers’ rights and privacy. The company will require strong commitment from the government of Qatar on the monitoring of migrant labor, complaints from migrant workers, expartes workers and all business related complaints while in Qatar. References Baldwin, J. &. L. S., 1994. Conceptualizations of culture. Tempe: Urban Studies Center: Arizona State University. Bender, T., 2002. Learning to Count What Really Counts: The Economics of Wholeness. Manzanita: OR: Fire River Press. Borgerhoff Mulder, M. a. P. C., 2005. Conservation: Linking Ecology, Economics, and Culture. Princeton, NJ: Princeton University Press. Gudykunst, W. B. &. K. Y. Y. (. C. w. s. A. a. t. i. c., n.d. New York: McGraw-Hill. Gudykunst, W. B. &. K. Y. Y., 1997. Communicating with strangers: An approach to intercultural 7communication.. New York: McGraw-Hill. Hanushek, J. S. B. a. E. A., 1995. Modern Political Economy: Old Topics, New Directions. Cambridge UP, , p. 35. ILO, A. G. A. A. F. L., 2005. Global Report under the Follow-up to the ILO :Declaration on Fundamental Principles and Rights of Work. Geneva, ILO, p. p. 6. Reddy, S., 2005. Corporate Citizenship: The Social Aspects. Dehli: The ICFAI. Wittman, B. R. W. a. D. A., 2008. The Oxford Handbook of Political Economy. Oxford : Orxford press. Read More