Cross-Cultural Management: A Comparative Analysis of Lebanese and Dutch Cultures

The Hofstede Model is used to analyze the cultural differences between Lebanon and Netherlands, specifically in terms of power distance, individualism, masculinity, uncertainty avoidance, pragmatism, and indulgence. The results indicate that Lebanon has a high score for power distance (75), individualism (40), and masculinity (65), indicating a hierarchical society with strong emphasis on work, competition, and performance. In contrast, the Netherlands has low scores for these dimensions, indicating a more egalitarian society that values independence, participation, and balance between personal and professional life. The study highlights the importance of understanding cultural differences in international management, particularly when expanding business operations from Lebanon to Amsterdam. It also emphasizes the need for lady managers to adapt their leadership style to suit the local culture, taking into account the potential challenges and risks involved.

CROSS CULTURAL MANAGEMENT ESSAY:
“CLEVER CLOGS INTERNATIONAL”

Looking at the present current state in global market, every company is making valiant efforts to
enhance its business operations to attain growth and sustainability. In this context, companies
often face a major issue termed as cross culture. The successful international trade of the
business enterprise depends upon the smooth interaction of employees from different culture
regions. In the present given case, a new financial institution Clever Clogs International aims at
expanding its business operations from Lebanon to Amsterdam, the Netherlands. However, this
would be a 2 year assignment for which experienced Muslim employee (Female) has been
selected. Thus, researcher focuses on delivering a cross cultural training to the new manager
from Clever Clogs International.
Clever Clogs International focusing on expanding its business to international market.
However, it is the duty of senior authority to recognize the challenges and accordingly prepare
the plan for them so that expansion process can be carried out in effective manner. There are
several challenges that management of Clever Clogs Finance Institution management could face
while expanding its business operations from Lebanon to Amsterdam, Netherlands.
Language is one of the major issue regarding expanding business from one place to
another in international market. However, in order to establish business it is important for the
entrepreneurs to understand the people by their own language so that they can connect to them
easily and set a better image within their minds. In the present given case, Lady Manager from
Lebanon is selected for the expansion to Amsterdam. However, in Lebanon language is Arabic
and in the Amsterdam, Dutch language is followed. Thus, it will be very difficult for the lady
manager to establish the financial institution where language is a major concern.
Another major challenge for the selected executive will be cultural issue. However,
culture of exiting country consist of Arabic, French or English languages. While on the other
hand, in Amsterdam, Dutch language is followed. However, being the capital of Netherland
which consist of diverse culture reflecting regional differences as well as the foreign influences.
Therefore, in order to establish financial institution in the selected place it is important for the
executive to understand the culture deeply and mould the functioning of business accordingly so
that smooth entry can be achieved.
Lastly, norms and regulations is another major challenge that could effect on the
expansion of the financial institution. However, operating in Lebanon, Clever Clogs International
undertakes the Islamic financial norms and regulations to carry out the operations. However, it
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would create a major concern as the population of Islamic people in Netherland is relatively low
thus, to execute the operations of financial institution, executive lady manager has to understand
the Dutch rules and regulations for carrying out smooth expansion.
There are several macro level facts of Netherlands that top level management of Clever
Clogs International Financial Institution has to consider before making any decision regarding
expanding business operations within its capital.
Considering the political environment of the Netherlands it can be stated that, as per the
Dutch foreign Employment Act an employer must be in possession of a work permit for a non
EEA national who will perform employment activities in the Netherlands. Along with this, a
residence permit for a highly skilled migrant allows a non EEA national to reside and work
legally in the country. However, this procedure is valid only if employer stage longer than 90 to
180 days. According to present given case, lady manager of financial institution have to stay for
2 year assignment.
Social environment of the country is relatively beneficial for the workers as there are
various strict rules and regulations regarding wages and salaries that employer has to follow in
order to carry out its business operations.
In terms of economic environment, the Dutch comply with European Union reciprocity
provisions in banking and investment services. Furthermore, rules and regulations related to
government incentives, national rules of incorporation are administrated on a non-discriminatory
basis. In addition to it, business laws are based on the international legal practices so that foreign
companies can enter smoothly and operate with Dutch companies.
Hofstede’s cultural dimension theory can defined as the framework for cross cultural
communication. The main purpose of this model is to illustrate the effects of culture on the
values of its members. There are several major dimension of this model which assist in
elaborating different aspects of the nation such as: power distance, uncertainty avoidance,
individualism, masculinity, long term orientation and indulgence. In the present study, two
destination has been selected on the basis of given scenario, as top level management of Clever
Clogs International wants to expand business operations from Lebanon to Amsterdam,
Netherlands. Thus, Hofstede model will be applied on these two places to evaluate the effect of
culture on the values of the individual.
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Figure 1: Hofstede Comparison Model
(Source: Hofstede Model, 2015)
Power distance: Lebanon with high score of 75 illustrates that people accepts a
hierarchical order which everybody has a place and which does not require further justification.
Hierarchy in an organisation can be seen through the means of inherent inequalities,
centralisation is popular and ideal leader is autocrat in nature. In comparison to this Netherlands
38 low score highlights that Dutch style is more being independent, hierarchy for convenience
only, provide equal rights, couching leaders and management facilitates and empowers.
Moreover, communication is direct and participative.
Individualism: With the high score of 80 Netherland is an individualist society. However,
in this type of society offense causes guilt and a loss of self-esteem. Moreover, relationship
between employee/employer is a mutual based contract for the various benefits. While on the
other hand, with low score of 40 Lebanon is considered as more collectivistic society. However,
in such culture loyalty is supreme and overrides most of the societal rules and regulations.
Masculinity: Considering this dimension, Lebanon scores 65 which clearly indicates that
it is a Masculine society. However, in such countries, people live to work and generate the best
possible outcomes. Moreover, managers are expected to be decisive in nature and should
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emphasis on equity, competition and performances. While on the other hand, with the score of 14
on this dimension, Netherland is a feminine society. They are the people who focuses on
maintaining balance in the personal and professional life. Managers are supportive to their
leaders and carry out conflict situation in effective and efficient manner.
Uncertainty Avoidance: Lebanon scoring 50 in uncertainty avoidance defines that
members of a culture feel threatened by the ambiguous or unknown situation that can affect the
entire course of functioning. Whereas, Netherlands with the high score of 53 indicates that it has
slight preference for avoiding uncertainty. In this type of culture there is emotional need of rules
and regulations as well as time is money, people make themselves busy in generating fruitful
results etc.
Pragmatic: Scoring very low 14 Lebanese culture is considered as normative. People of
such society and culture are strongly in concern with absolute truth. As they exhibit great respect
to their tradition and beliefs. While on the hand of this, Netherlands receives high score of 67 in
this dimension indicates that it is pragmatic in nature. However, people of such nature believes
that truth is based on the given situation, context and time.
Indulgence: Lebanon through the means of scoring 25 in this dimension of Hofstede
model can be defined as the culture which is one of restraint. However, having low score
indicates that people of the society have the tendency of sarcasm and pessimism. In comparison
to Lebanon, score of Netherland is high with 68 that clearly indicates that it is one of the
indulgence. However, people of this society have willingness to realise their impulses and
desires with regard to enjoy life and having fun.
Considering the above analysis of Hofstede model it can be said that, these dimensions
assist in evaluating the various aspects that lady manager of Clever Clogs International need to
understand. For instance, distance power of Netherlands is relatively high thus, she will get equal
opportunities to work as well as she will be awarded with facilities and powers to make her own
decision at the time of establishing business in Amsterdam. Therefore, this indicates that political
environment of the country will assist the course of finance company for the future expansion.
Along with this, uncertainty avoidance illustrates that people are more concentrated towards their
work and invest time as money. Thus, it will be easy for lady manager to recruit skilful and
reliable employees for the future contingency.
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As an international manager, regardless of where one lives or works, it is useful to be
aware that decision making is based on Hofstede theory because it assist in illustrating various
dimensions. In general international management consist of building an effective strategy,
structuring an appropriate organisational design and managing people in a cross cultural
environment. As defined above language difference is one of the major challenge that lady
manager would face in Amsterdam. In context to the individualism aspect of the Hofstede theory
will be bounded in professionalism as people of Netherlands focused on professional
relationship. Along with this, due to normative nature lady manager of Clever Clogs will face
challenges in carrying the situation as people of Netherlands measures the truth on the basis of
situation rather on their beliefs. Furthermore, culture of Lebanon is restricted or limited while
Dutch culture is diverse as people loves the life of fun and enjoyment. However, in order to
make decisions regarding different customer segments lady manager could face various
concerns. In addition to this, managers in Lebanon are autocratic in nature while in Netherlands,
employer consults to its team and takes decision thus, this can be major issue regarding
maintaining the coordination between team members.
In conclusion to the above report it has been evaluated that, cross cultural management
play crucial role in making suitable decision regarding future contingency. There are several
challenges that management of Clever Clogs Finance Institution management could face while
expanding its business operations from Lebanon to Amsterdam, Netherlands. Furthermore,
Hofstede model has been used to evaluate the cultural difference between both the countries so
that, lady manager can make suitable decisions regarding future contingency.
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