When western companies do business in the
dynamic markets of Asia, Africa or South America, they face not only
considerable geographical distance but also fundamentally different ways of
thinking and doing things.
In
Southeast Asia alone, approximately 600 million ethnically diverse people will
become one regional economic market when the ASEAN Economic Community takes
place in 2015. Those are only 10 AEC member countries compared with 26 of the
European Union.
This
vibrant region has many things in common which most management pundits believe
are its strengths. First is its diversity, which is a central aspect of life in
all of these countries. There is a certain degree of tolerance and awareness of
these cultural differences that inevitably make people deal with each other
more carefully. Second, there is by far a great amount of respect for the
elderly as well as hierarchies across the region. Thus, most decisions made by
them remain unchallenged. Third, family-owned businesses of varying sizes are
the norm, with the Asian family model enjoying an efficiency over Western
business models. Last, all Southeast Asian countries are looking for a niche to
exploit their competitive advantages to be successful as they face real
competition and increasing economic pressure from China.
Let me
explore the diversity phenomenon as a vital element of Asia’s assets. Google
Maps shows that Asia is significantly dominated by China by its sheer size. In
this region, one finds four of the world’s greatest religions: Confucianism
(China with Hong Kong and Taiwan, Japan, Singapore and Korea); Buddhism (China,
Thailand, Laos, Cambodia, Vietnam and Myanmar); Islam (Indonesia, Malaysia and
Brunei); and Christianity/Catholicism (Philippines).
In the
business world, these differing religious beliefs and principles would
massively influence and translate into management concepts of leadership,
status, work ethics, management and leadership styles, and most prominently,
communication styles -- all of which are very different from the Western
world’s points of view on all of these aspects.
Whereas
the Asian mindset is dominated by fondness for the collective, adhering to
security, harmonious relationships and social responsibility, Westerners love
individualism and personal ego, achievement and self-actualization goals, high
productivity and profit maximization, with organizational efficiency at the
core. These show contrasting mentalities, approaches and attitudes. The Asian
world view is still relatively relaxed, with time seen as a limitless commodity
and with the value of efficiency often ambiguous.
If
there is one thing that cultural differences between East and West are
glaringly underscored, it is in the style of communication. An Asian at a
negotiation table would seek balance and harmony to reach an agreement. Most
likely, however, real decisions are made outside the negotiating table. An
Asian will avoid confrontation as much as possible and will not show intense
emotion but rather a non-aggressive stance throughout the negotiation process.
And by the way, it is a must NOT to do anything that would make both parties
lose their face. After all, to an Asian, negotiations are important social
occasions to foster long-term relationships.
To a
Westerner, a crucial component in communication style is giving and receiving
feedback, whether positive or negative, especially the latter. As an
intercultural trainer, I’m always asked: When one faces a cross-cultural
challenge at work, how can one get feedback and suggestions from bosses,
colleagues and subordinates?
Managers
from different cultures are conditioned by their upbringing and education to
give and receive feedback in different ways. Most Asians will always never
criticize a colleague in front of others (no loss of face, remember?), while
the French will criticize passionately (in perfect French, of course!) and
provide positive feedback sparingly. The British are masters at using
deliberate understatements, while Germans are undoubtedly the most
straightforward and honest in getting across criticism using strong words when
complaining to make sure the message registers clearly.
In sum,
whatever the reality may be, clashes in world views, values, beliefs and
attitudes will remain well into this century and beyond. We must all learn how
to decrease the negative effects of such clashes.
Dr.
Kaamino-Tschoepke
Dr. Kaamino-Tschoepke teaches Organizational
Behavior and Dynamics and Human Resource Management at De La Salle University
RVR-College of Business. She is a professional intercultural trainer and
consultant of international business, international marketing, and business
development.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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