Cultural Differences and Workplace Management

This assignment examines the impact of cultural differences on workplace practices, specifically comparing Australia and Japan using Hofstede's six cultural dimensions. It analyzes the implications of these cultural variations for training and development programs, labor relations, and organizational effectiveness. The assignment draws upon scholarly research and real-world examples from INPEX's Ichthys LNG project in Darwin to illustrate the complexities of managing a culturally diverse workforce.

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Inpex Corporation
Management and Business context

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Inpex Corporation
Table of Contents
Introduction................................................................................................................................3
Cross-Cultural Issues Affecting Inpex.......................................................................................3
Alternative Business Practices associated to Cross-Cultural Management...............................6
Recommendations to Inpex........................................................................................................8
Conclusions..............................................................................................................................11
References................................................................................................................................12

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Inpex Corporation
Introduction
Inpex Corporation headquartered in Japan operates as a multinational organization in the oil
and gas industry. It focuses on the exploration and generation of oil and gas reserves for the
global consumers. Inpex Corporation conducts its business based on its branches spread
along 20 different international markets. Inpex Australia has its headquarters based in Perth.
It focuses on conducting its operations based on a total workforce of 1200 employees both
including people in fixed and contractual payroll. Maximum number of staffs and contractors
are observed to be involved in Inpex Corporation’s Ichthys LNG Project (Shanghai
Daily.com, 2017).
The report focuses on evaluating the different cross-cultural issues faced by Inpex in terms of
operating in Australia. It would also focus on the generation of different alternative processes
for generating needed solutions to the issues and thereby in applying the theoretical inputs on
Inpex based on generation of potential recommendations. Both empirical and case based
study is to be carried out in the report.
Cross-Cultural Issues Affecting Inpex
The Australian employees of the Japanese oil and gas company, Inpex during 2016 protested
against the existence of unfair work situations in the company’s workplaces. Employees in
Inpex increasingly complained regarding the existence of unhealthy and unsafe work
standards that were affecting their lives. The management of Inpex however reflected that it
largely focused on promoting safety and also effective health standards for its employees.
Further, Inpex is also accused in affecting the mental health and also in disturbing the family
structure of its employees. Inpex is also observed to have failed in promoting employment
opportunities to local people in that the localities have protested against the continuous and
intense four week tenure at the workplace without any leave (Lawford & Dunlevie, 2016).

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Inpex Corporation
Inpex’s employees falling in the fly in-fly out category increasingly protested against the
existence of long rosters in the company. The main concern is adhered to the existence of the

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Inpex Corporation
28-7 work roster that caused the fly in-fly out employees to stay away from their families for
longer periods of around 28 days. Inpex’ management however reflected that the existing
roster was shorter that required the employees to work for a six day period thereby helping
them avail Sunday leave. The management further reflected that generating a change in the
current roster in terms of generating a week’s leave after a full three week work period would
potentially affect the productivity of the firm and enhance manpower costs for the
organization (Macdonald-Smith, 2016).
The faulty health and safety standards affecting the internal work culture at Inpex can be
rightly evaluated in terms of the different types of fatal incidents rocking the workplace.
Incidents associated to workplace burns, laceration and also people suffering from back
injuries have greatly tormented Inpex’s workplaces. The company is however accused of not
working based on generating safety work procedures and reporting standards. It is even
documented that the hospitalized employees were required to do paperwork for showing
contractors the conducting of daily duties by Inpex’s staffs. Inpex is thus observed to not to
take adequate safeguards and protective measures in enhancing the quality of life for the
regional and international employees operating in its workplaces (ETU National , 2015).
Other cross cultural issues affecting the operations at Inpex relate to the non-participation of
employees mainly the fly in –fly out staffs in a construction activity carried out by the firm.
Around 800 workers are reported to have stepped down from participating in the construction
operations that in turn affected the steady accomplishment of the $50 billion gas project
carried out by Inpex. Out of the total 800 employees that had turned down 640 people are
identified to belong to the category of direct employees that were required to be demobilized.
The demobilization activity that is being carried out at Inpex requires around 395 employees
out of the total 640 staffs to be shifted to their local accommodations such that they can avail
the very next flight homewards (Aikman & Baxendale, 2017). Demobilization of large
number of foreign staffs compared to the local staffs had affected the level of trust of the
foreign workers on the firm. The demobilization activity had taken the employees by
surprise. Further, the demobilized workforce consisting of both foreign and regional staffs
also complained that the company did not even take care of generating their payments and
made them go jobless without prior notice (Shanghai Daily.com, 2017).
The execution of the 457 Visa Program required multinational companies like the Japanese
energy firm, Inpex to recruit large number of foreign staffs for adequately filling in the labor

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gap rather than focusing on recruiting regional and localities. The above policy of the
multinational firms like Inpex is however significantly protested by the trade union bodies
stating the same to cause unemployment problems in the region. It is even termed as an attack
framed to affect the employment opportunities of young Australians that reflected potential
capabilities of being employed or absorbed in the workforce. The above issue affecting the
employment opportunities of local people in Australia is viewed as a potential impediment
towards generation of a healthy employment situation in the region leading to poverty and
growth in unemployment rates (Davidson, 2014).
Alternative Business Practices associated to Cross-Cultural
Management
Requiring to work in a cross-cultural atmosphere requires the incorporation of effective
business practices concerning communication, show of etiquette in the workplace, existence
and retention or non-retention of organizational hierarchy, generating significance to the
development of long and short-term goals, undertaking of risky ventures and projects,
encouraging or non-encouraging employees to work in a team setting and also the inclusion
of breaks and leisure activities between the employment schedules.
The business managers are required to focus on the development of different types of
communication styles in the organization such that one style of communication does not fit
for all. Cultural differences at the workplace are reflected from employee behaviors and
preference styles such that some cultures render importance to informal communication while
other cultures render importance to formal communication with need for directness and also
brevity. Similarly, different types of non-verbal cues are observed to reflect varying levels of
significance for the employees pertaining to different cultures. The business managers are
thereby required to incorporate greater sensitivity, flexibility and openness regarding
understanding of the communication styles and needs fitting the employees pertaining to
diverse cultures (Rozkwitalska, 2012). The business managers are required to focus on the
development and generation of diversity inclusion training at the workplaces. The same helps
in growth of understanding and support for the needs of employees belonging to different
cultures. It would also help in respecting and honoring the cultural differences at the
workplace and thereby contributing in the designing of the right type of employment policies
(Shi & Wang, 2011).

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Inpex Corporation
Similarly, effective training is also required to be rendered regarding understanding of the
different types of etiquettes that are favored by the employees belonging to different cross
cultural settings. Some cultures generate greater importance to the aspect of handshakes and
also in making of eye contacts while communicating. In some cultures however some body
language skills along with generation of eye contacts and handshakes are not considered to be
worthy of being carried out (Podsiadlowski, Gröschke, & Kogler, 2013).
Again, the business institutions operating based on the inclusion of staffs belonging to diverse
cultures are required to understand and evaluate the significance of family lives, holidays,
leaves and leisure period needs of the staffs. Effective understanding of the above parameters
effectively helps the human resources managers in generating needed flexibility in the
workplaces. People belonging to some cultures are observed to generate greater significance
of spending time with their families and thereby demand the existence of leaves and breaks
(Ferdman & Sagiv, 2012). In other cultures the people do not desire of enjoying leaves rather
they are interested in working overtimes and are more careerist in nature. People belonging to
some cultures are also observed to generate increased importance of operating in a team or
group compared to employee belonging to other cultural groups focusing on working
individually. The same requires the business managers to work in a sensitive manner
regarding understanding of the working styles favored by the staffs and thereby designing
and allocating job roles and tasks. The same contributes in the generation of greater
productivity in the firm (Ongori & Nzonzo, 2011).
Business managers are also required to evaluate the interests of the staffs concerning the
undertaking of risky projects. People belonging to different cultures share different types of
perceptions regarding bearing of risks where some tend to favor while others focus on
refraining from getting involved in risky projects. Similarly, some cultures reflect importance
on the generation and meeting of short-term objectives while other cultures tie greater
importance concerning the generation and meeting of long-term business and organizational
objectives (Olsen & Martins, 2012). The business managers are required to have a clear
understanding of the needs and demands of the different cultures regarding fixation of targets
and goals. The business managers are thereby required to empower and encourage the staffs
for actively participating regarding the development of targets, goals and business objectives.
The same would help in increasing the level of accountability and motivation in the staffs for
accomplishment of stated goals without confusion and conflicts (Bhatia & Kaur, 2014).

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Inpex Corporation
Existence of a cross cultural workforce in an organization also requires the business
managers to ideally consider the manner in which the organizational structure of the firm is
required to be designed. The existence of a hierarchal organizational structure having
centralized work allocation and monitoring systems is favored by some cultural groups while
others demand a flatter organizational structure reflecting reduced levels of hierarchy
(Rozkwitalska, 2012). The latter contributes in the generation of a decentralized work
environment encouraging empowerment of employees pertaining to different roles for taking
part in decision making functions. It not only helps in fostering of needed accountability but
also in motivating team members for fulfillment of institutional objectives. Business
managers are thereby required to operate in a flexible fashion regarding generation of
different types of institutional structures for meeting of organizational goals with also
generating staff satisfaction (Shi & Wang, 2011).
The code of conducts and the existing employment policies and work standards are required
to be reviewed and revisited by the business managers such that the same helps in ideally
suiting the needs of the different cultural groups working in the firm (Dartey-Baah, 2013).
The business managers are also required to focus on the development of different types of
internal social networking platforms such that the same helps in generating staff engagement
regarding generation of reviews and feedbacks. The above strategy would potentially
contribute in aptly motivating the staffs and also in developing the communication activities
between the higher management with subordinate staffs (Jehanzeb & Bashir, 2013).
Recommendations to Inpex
Based on the inferences gained from the above analysis a set of effective recommendations
can be generated for Inpex. The recommendations to be generated for Inpex are required to
be based on the Hofstede’s cultural model in that the same helps in evaluating the cultural
differences between two different regions like Japan and Australia. Understanding of the
cultural differences between Japan and Australia would help in generating key
recommendations to the Japanese energy firm, Inpex to profitably and efficiently conduct its
business in Australia. The Hofstede model of cultural dimensions comparing Japan and
Australia is rendered as follows.

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Inpex Corporation
(Hofstede Insights , 2017)
The above graph reflecting cultural dimensions parameters and scores generate the following
inferences for providing needed recommendations to Inpex.
In terms of Power Distance, the Japanese culture reflects greater score compared to the
Australian culture. The same renders that Japanese are more inclined in sustaining hierarchal
relationships in an organization compared to Australians that focus more on operating in an
interactive and communicative environment having lesser amount of hierarchal relationships.
Australians focus on gaining effective access to their superiors for discussion on specific
issues and matters. The above inference thereby requires Inpex in developing a flatter
organizational structure for its Australian branch in that the same would help in fostering of
effective communication and in development of relationships between superiors and
subordinates (Piepenburg, 2011).
In terms of Individualism, Japan is observed to have generated a considerably lower score
compared to that of Australia. It reflects that the Australians are more careerists in nature and
rather focus on working in an individual fashion rather than in groups. The Australians are
also identified to be individuals that focus on working in exchange of rewards like career
progression and recognition of their efforts. The Japanese culture however is observed to be
more team oriented in nature such that they focus in working in a group setting. The
evaluation of the above inferences potentially reflects that the management of Inpex Australia

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is required to encourage the employees to work individually rather than in groups. The
management is also required to encourage growth in individual performances through
recognizing their effort and also in helping they earn promotional and career development
opportunities (Dellner, 2014).
In terms of Masculinity, the Japanese are observed to reflect greater scores compared to the
Australians. The Japanese are inferred to be work alcoholic in nature and always focus to rise
up the organizational ladder through the generation of greater performances at the workplace.
They focus on severely competing with their fellow colleagues for gaining a significant place
in the organization. The Australians also reflect masculine characteristics in terms of striving
for growth along their career paths in the organization. However, being on the lower side they
are not work alcoholics like the Japanese and focus on blending work with leaves and breaks
(Fonseca, 2014). The same requires Inpex in formulating effective regulations and policies
that help Australians in enjoying both a competing work climate with needed breaks. The
same would help in enhancing and sustaining the productivity and efficiency of the internal
staffs.
In terms of Uncertainty Avoidance, Australia tends to gain a lower score compared to Japan.
The existence of lower scores for Australia ideally reflects that the Australians do not tend to
fear the emergence of contingencies or rise of unambiguous situations. They act in a readily
fashion in meeting different challenges. The Japanese on the contrary are observed to face the
emergence of contingencies and thus focus on meticulously recording and analyzing data
regarding the generation of key decisions (Varvouzou & Zasepa, 2013). Herein, the
management body at Inpex is required to honor the cultural aspect of the Australians and is
thus needed to reduce the level of work monitoring and standardization procedures.
Focusing on the aspect of long term orientation, it is observed that the Australian and
Japanese cultures exist along two extreme poles. The Australians reflecting very low scores
thereby desire to focus on the fulfillment of short-term goals. The Japanese on the contrary
tend to reflect increased scores regarding long-term orientation such that they focus on the
generation and meeting of long-term goals. Inpex’s management is required to focus on the
development of short-term business and organizational objectives and encourage the staffs in
aptly addressing such within a specific period (Rau, 2017).
Finally, in terms of Indulgence, the Japanese culture oriented people reflect reduced scores
compared to that of Australians reflecting increased scores. The Australians focus on

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enjoying leaves and breaks in the midst of their work durations and schedules. The Japanese
on the contrary do not tend to generate greater importance in enjoying leisure time and leaves
and breaks. Regarding the case of Inpex operating in Australia, the business managers are
required to ideally focus on revising the employment policies and work standards through the
generation of leave policies (Dellner, 2014). The same would help in generating changes to
the existing four week based tenure and thus would contribute in generating needed
productivity and growth for both the staffs and the firm as a whole.
Conclusions
The report reflects on the different types of cross-cultural issues that gained prominence
regarding the conducting of business operations of Inpex, a leading Japanese based energy
company in Australia. It reflected on the different activities and decisions undertaken by the
business managers at Inpex that affected the relationship between the managers and
subordinates leading to problems in productivity and efficiency parameters. Different types of
alternative measures are studied to bring about necessary changes in the organizational
situation in Inpex. The application of the theoretical or empirical inputs are generated for
helping Inpex in developing an amicable relationship with the subordinate staffs and also in
gaining of needed productivity and efficiency in future periods. Analysis is carried out based
on the incorporation of Hofstede’s model of Cultural Dimensions such that the same
contributes in the generation of effective recommendations to Inpex.

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Inpex Corporation
References
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