Introduction
Most organizations in Saudi Arabia are based on multicultural management due to the absorption of employees from all over the globe. This has increased the need for diverse management and cultural components which can handle the requirements of the employees and customers. This helps one to avoid creating ‘cultural shock’ or misunderstandings which may affect their endeavors adversely. One may mistake an innocent ignorant action to be disrespectful or arrogant action, for example when one decides to put up business that provokes Islamic beliefs and culture, this may send wrong signals to the target market and may end up not attracting any customer instead attracting. There are several concepts which are required to be understood by international organizations relating this region before their establishment.
The communication and negotiation styles in the country are diverse from other styles used in different regions. In Saudi Arabia business is personalthus transactions are finalized on a personal context rather than through the phones. Most decisions require several layers of approval, for example family consensus on a decision. This reduces any interruptions and increases the validity of the information given. High-pressure tactics are counter-productive thus decisions are easily overturned (Ramady, 2010 p 111). The communication style in Saudi Arabia tends to be quite indirect in the organization making it essential to analyze the nonverbal hints indicated by the employees.
The common religion of Islam has its influence on commercial law and beliefs which are strictly followed in Saudi Arabia. The Islamic law is the most common in the region which requires employees to observe the Sharia laws in their conduct. This law offers people and clients the values to observe while relating to others thus managers should understand this law. This culture has been absorbed in the business world by managers in a bid to satisfy the requirements of the customers and attract their royalty. In the world’s current climate, Ignorance as to how Islam influences business and everyday life could damage relations (Mitchell, 2000 p 187). This helps avoid many negative actions, which would otherwise be highly evident were it not for such statutes in their commercial law
Business interactions are based on the personal relations developed by managers to their employees and customers. This increases their desire to acquire an understanding of their opinions and interests improving their relation. This creates a foundation for trust development in the organization which is a major concept indicated in Saudi Arabian companies. Great pride is placed in hospitality with which a person’s character is measured. This offers an opportunity to develop personal and professional relationships to strengthen relations in organizations. Saudi Arabian culture places great emphasis on dignity and respect within business. In business it important to appreciate every individual in the company it create a sense of belonging on the employee thus boosting productivity of the individual.
Strong religious beliefs are witnessed by the emphasis placed on prayer times. This indicates that when doing business in Saudi Arabia, schedules for business meeting are made in considerations to prayer meeting and religious days. The people have developed a weekly basis in which Thursday and Friday are expected to be off days for most employees lowering the business transactions (Ajami, 2006 p 108). When working with people from Saudi Arabia, it’s advisable to reinforce the importance of the agreed-upon deadline. The management structure is highly based on the blood relations of the people in the organization. Managers are mostly relatives and not professional outsiders, ranks are also mostly accorded with age and blood relations rather than the perceived qualification and experience. Once a decision is reached, subordinate employees are made aware of the steps required to implement the plans and the objectives. This presents a hireacharal system in which strategic managers make the decisions which are communicated and implemented by the junior employees. Changes to such decisions cannot be authorized without the consent of the seniors which defines the management techniques used in Saudi Arabian companies.
Employees do not question the decisions that have been made by the strategic managers. This reduces their chance to make valuable contributions in those businesses. Encouraging participation requires clearly establishing a non-threatening work environment and communicating fully that team-member participation is desired (Shoult, 2005 p 170). The employees have also been analyzed as risk averse thus redundant to embrace change in most cases. There is in-depth calculation, consultation and research into any business project before any substantial investments are made. This helps them to master principle about their business which they cling to strictly. Team building in most organizations also involves making team decisions in which members are in acceptance of the concepts given.
Saudi Arabia has a rich business culture which has been in existence for quite some time and is rigid, interested parties must therefore try learning it and avoiding thought of changing the way of life of those people. One can also learn a lot from their discipline in moral issues as well as a business models used in their management systems. Understanding these concepts is the first step in ensuring success in businesses thus reducing any conflicts in cross cultural employees.
Bibliography
Ajami, R. A. (2006), International business: Theory and practice, Armonk, N.Y: M.E. Sharpe.
Lytras, M. D., & Ordóñez, P. P. (2009), Knowledge ecology in global business: Managing intellectual capital. Hershey, PA: Information Science Reference.
Mababaya, M. P. (2003), International business success in a strange cultural environment, USA: Universal Publishers.
Mitchell, C. (2000), A short course in international business culture, Novato, CA: World Trade Press.
Ramady, M. A. (2010), The Saudi Arabian economy, New York: Springer.
Shoult, A. (2005), Doing Business with Saudi Arabia, London: Blue Ibex Ltd.
