Culture and Business in Australia

This document provides an in-depth analysis of the culture and business practices in Australia. It covers topics such as Australian history, landscape, economic condition, culture, and business culture. It also includes a Hofstede 5 dimension analysis of Australia. The document is relevant for students studying management or anyone interested in understanding the cultural aspects of Australia.

MANAGEMENT

1
Contents
Introduction................................................................................................................................1
Australian History..................................................................................................................1
Australian Landscape.............................................................................................................1
Australian economic condition..................................................................................................1
Australia Culture........................................................................................................................2
Australia business culture..........................................................................................................3
Australia Hofstede 5 dimension analysis...................................................................................5
Conclusion..................................................................................................................................6
REFERENCES...........................................................................................................................6

2
Introduction
Culture is playing a significant role in the management of business operations. Different
countries have different cultures and this cultural difference needs to be studied by any
organisation if it seeks to become successful in that country.
Australian History
Australia had a pre-colonial history where the first human habitation is understood to be first
begun in around 70,000 years ago (Foley, 2012). They were the migrants from Southeast
Asia. These inhabitants are understood to be an ancestor of modern Indigenous Australians.
One the oldest continual civilisation on earth is aboriginal Australian culture. Indigenous
Australians have an oral culture through spiritual values on the basis of respect for the land
and a belief in the Dreamtime. Torres Strait Islanders ethnically Melanesian procured their
livelihood from resources from the seas and reefs as well as seasonal horticulture. In 1606,
first European people arrived on the Australian mainland. Due to infectious diseases the
numbers of Torres Islander people’s population decreased by around 750,000 and 1,000,000
in 1788 (Roberts, 2013). In 1813, the colonial expansion begun and new southern areas of
Australia were found. Dutch and Spanish people were the first ones to come on this island. It
is a part of the commonwealth nation and took part in the World War I and II.
Australian Landscape
Australia is 6th largest nation and smallest continent in all across the globe. The major part of
the population is focused beside the south eastern and eastern coast. The landscape is highly
diverse as it is fluctuating from snow covered mountains of Tasmania and Australian Alps to
tropical and temperate forests as well as large deserts. This continent falls among Indian
Ocean and South Pacific Ocean. It has total coastline length of 35,877 km. It has a largest
area under ocean jurisdiction when compared with any other nation in the world. This
country shares land borders with no nation. The western side of Australia comprises of
western plateau that increases to mountain heights across west coast and falls lower elevation
near the centre of the continent. This region is usually flat but divided by different ranges of
mountains. The eastern highlands lies closer to the eastern Australia coast which separates
narrow eastern coastal plain from the other parts of the continent (Boyd, 2012). Central
lowland lies in between western plateau and eastern highlands consisting of Australia’s
largest river systems. This continent does not have any permanent glaciers or ice fields. The
Great Barrier Reef is the largest coral reef in the world. Due to this landscape, Australia has

3
quite a large amount of minerals available with them which again attracts investors from
different parts of the world to do their business.
Australian economic condition
Australia is a developed nation and has a market economy. It has a high GDP and per capita
income and has lesser numbers of poverty. This country stands second in the world, in terms
of average wealth. There is a slight increase in the poverty rate in Australia as it has gone to
11.8% from 10.2% in between 2001 and 2013 (Hartwell, 2017). Sydney future exchange and
Australian stock exchange along with Australian securities exchange when merged in 2006
become the ninth biggest in the whole world.
Australia stands 14th in terms of economy size and tenth in terms of per capita income (USD
55,692). In human development index it is ranked third. The total debt of government is
around A$190 Billion which is approx. 20% of its GDP of 2010. It has a large current
account deficit. The average annual growth rate of Australia is around 3.6 in the last 15 years.
It was the only developed economy in the world which did not noticed a slowdown even in
the recession of 2008-09 but some of the non-mining states noticed some recession. They
have introduced Goods and Service Tax in 2000 by replacing indirect tax system. Inflation
rate has been around 2%-3%.
In future also the government is trying very hard to make economic development of
Australia. They have controlled the variables of economic development in an appropriate
manner so that there is not much turbulence in the economic growth of the country. In the last
few years, there is increase in the conflicts within United States and China and this conflict is
reducing their chances of economic growth as they both are their major trade partners. The
concerns related to management of sustainability and environment has enhanced. This
increase in the concerns has put pressure on the economic growth of the firms. Australia is
also making policies for developing their bonds with other developing Asian nations. This
will help them in enhancing their partner base which will act as measure to enhance their
growth. The major concern for the Australian economy is its high operational cost. Due to
this, most of the firms are not setting up their manufacturing units in Australia. It is also the
major reason why many companies are planning to move out their manufacturing units from
Australia. This is not a good sign for FDI in the coming future. Most of the firms are looking

4
towards developing markets that has easy availability of resources and lower cost employees
to operate in.
Australia Culture
Western culture is the major identity of Australian culture and is derived from the colonial
inhabitants. They have also taken the cultural inputs from Aboriginal, Torres Strait Islander
and other Australian inhabitants. Indication of a significant Anglo-Celtic heritage makes
English as their primary language (Worldbusinessculture, 2019). But the English is
significantly different from that of UK and US. Christianity is their major religion of
Australia.
The evidences of aboriginal art dates back 30,000 years. After the British arrival on the coast
in 1788 and starting of the gold rushes in 1850 started new social tensions in Australia
comprising the rebellion of Eureka Stockade. They have elected parliamentary system along
with rights for women and workers before various other western nations. Australia has
become highly culturally diverse nation especially after second war where there are around
6.5 million migrates from around 200 countries (McLean, 2012). It brought immense new
diversity and Australians at this time developed progressively aware of their neighbours like
Asia. They have a cultural practice of immigrants which is diverse, food and lifestyle which
they have adopted from people from different parts of the world. Today’s Australian society
is made from violent conflicts between Aboriginal people and the people from British.
Humour is a part of their culture which makes them unique from other cultures in other parts
of the world. They cannot be serious for longer period of time. This is reflected in their
movies, cartoons as well as in the Australian art.
Green and gold is Australia’s national colours and hence is adopted in many national sporting
teams. Sports are also a major part of the Australian society. They are also the part of the
commonwealth countries hence has reflection in the society. Anti-authoritarianism, mateship
and egalitarianism are understood as the major characteristics that are reflected back in each
of the social dynamics (Worldbusinessculture, 2019). Religious architecture is also prominent
within the Australia hence Catholic and Anglican cathedrals in each of the major city of
Australia. Music is an essential part of the Aboriginal culture and indigenous music is a part
of their life.

5
Australia business culture
Australian business culture is highly different from that of Cambodia. This difference in
culture has an impact on the businesses of the companies. Australian business culture has
been more similar like the American business culture despite of the fact that they have been
the colony of Britain for longer period of time. In the global business culture Australia is
similar neither to US nor to UK (Worldbusinessculture, 2019). It has its own distinct culture
and a different approach. Australians have robust sense of self-reliance and is reflected in its
business characteristics. They believe in bringing sophistication in their business especially in
the service areas.
Comparison in the business culture of Australia and Cambodia is as follows:
Elements Australia Cambodia
Business structure Their structure tends to be highly
non-hierarchical. They believe in
good mate. Little attention is
played to titles. This sometimes
makes the organisational structure
to be complex but still since the
roles and responsibilities are
clearly defined hence not much
problems is faced by them
(Worldbusinessculture, 2019).
They have a more formalised
structure and a more hierarchical
format is followed by the
company in their organisational
structure. This allows them to
have a clear idea about part they
have to play in the organisation.
Management style Their managers do not understand
them to be superior from their
colleagues and Authoritarian style
of leadership is not welcomed in
Australia. Consultative style is
encouraged. Direct style of
communication is preferred
(Worldbusinessculture, 2019).
They generally believe in
authoritative style of leadership
but like to bring idea from the
side of the employees. The style
of communication that is
preferred in Cambodia generally
reflects the value placed on
relationships as individuals
generally are indirect in
communication (commisceo-
global, 2019).
Meetings They are punctual and generally They are not as punctual as

6
have a small talk before actually
going down to the actual meeting.
It has open debates and has
Australian egalitarian approach
(Worldbusinessculture, 2019).
Australian and prefers to directly
come to the important point
about the meetings.
Team culture They highly believe in working as
a team member. They conduct
bonding sessions where
collaboration is encouraged. They
have a high respect for their team
members. Collaborative working
is the part of their daily life style.
It is taught to them from very
basic (Worldbusinessculture,
2019).
In Cambodia face and reputation
plays a bigger role in
encouraging participation and
gives a great deal of values on
their reputation. There are lots of
ifs and buts in team formation
such non-threatening work
environment, how things will be
perceived by other individuals.
They place intercultural
sensitivity as the necessary part
of their team and all ideas are
respected.
Diversity They promote diversity at their
workplace as it should reflect their
society. Large numbers of women
are part of the Australian
workforce. Since huge amount of
people from diverse part of the
world are living in Australia
hence they also recruit people
from all the countries. Less
attention is given to differences
and more attention is given talent
(Worldbusinessculture, 2019).
The diversity in the Cambodian
workforce is lower than that of
Australia. Lesser numbers of
women are also a part of the
Cambodian workforce
(MovetoCambodia, 2019). This
is also the fault of educational
system in the nation where men
constitutes the major part of the
population who are graduated.
Australian business culture is more formal when compared with the culture with Cambodia.
Australian business official do not want things to get too stretched and at the same time they

7
also believe that things should not get tensed. These two things are the major part of their
management culture. They also believe in putting things at front. People at every level gives
the organisational structure believes in talking to each other with larger respect and also with
higher amount of respect for each other (Worldbusinessculture, 2019). While doing business
in Australia companies will have to think that they do focus on titles rather than focus on the
fact that who has achieved what. Australians are not considered to be highly diplomatic rather
they believe in saying everything on the face.
On the other hand in Cambodia, last and final decisions are taken by leaders and ore focus is
given to the working where there is support from the side of the managers. They like to hear
everyone but workers also follows what is said by their leaders in any way. They focus on
indirect way of communication and also reach to each and every individual in order to
succeed. In Cambodia the business houses are more concentrated towards filling up the titles
(AsiaBizNews, 2019). In regards to diplomacy, they are highly diplomatic and aim to reduce
their problems by communicating with everyone through the help of effective
communicational methodologies. This makes negotiation as a major aspect while dealing
with their partners.
Australia Hofstede 5 dimension analysis
It is crucial for any organisation to understand the cultural orientation of Australia. A
framework that is highly capable of providing details about the cultural dimension of the
country is Hofstede five dimension analyses. For Australia this is as follows:
 Power Distance: Power distance in Australia is relatively on the lower side when
compared with average in the world. It illustrates that there is higher equality among
diverse societal levels that comprises of families, organisation and government. Such
orientation builds a cooperative interaction among different levels of power. It also
indicates that Australian people goes to everyone rather than being concentrated to
few. The powerful and powerless lives in concert and inequality of roles is just
recognized for convenience (Hofstedeinsights, 2019).
 Uncertainty Avoidance: The low score on the uncertainty avoidance suggests that
Australians do not like uncertainty and they want a place or organisation where higher
stability for members can be ensured. They believe in following many rules and they

8
strive for consensus. They tend to have more anxiety and stress (Hofstedeinsights,
2019).
 Individualism: Australia has the second highest score in Individualism which suggests
that they enforce it in their daily lives and is highly considered while doing business
in Australia. Privacy is understood as cultural norms and attempts at personal
ingratiating may be tackled with rejection (Hofstedeinsights, 2019).
 Masculinity/Femininity: Australia is still a highly masculine society and women are
still not considered to be equal to men in different aspects and fields of life. But the
situation is improving at much faster speed and it change is gradual but still it is
happening (Hofstedeinsights, 2019).
 Long term orientation: Australia’s Long term orientation is 30% that is quite low
when compared with rest of the world. This suggests that Australians generally
focuses on short term goals rather than focusing on the long term goals. This is the
major reason why businesses have to concentrate more on short term goals
(Hofstedeinsights, 2019).
Figure 1: Six dimension for Australia
On the other hand Cambodia has a higher power distance index which shows that there is
greater inequality at different societal levels. They also have lower uncertainty avoidance
which suggests that people want stability in their life. In this society individualism is higher
not as high as Australia but it is still high. Cambodia is a highly masculine society as
inequality among men and women is higher. Their long term orientation index is neither so
high nor so low which suggests that they concentrate on both long term and short term goals.

9
Conclusion
From the above based report, it can be concluded that Australia is having cultural background
of thousands of years but still the major part of the culture comes from colonial background.
They have been the colony of Britain for longer period of time. The landscape of Australia is
quite diverse. At the same time they have a good economic environment that attracts lots of
investors. Australian business culture is not so orientation based rather they believe in
performing. On the other hand Cambodia is having more structured business culture. Power
distance of Australia is low while that of Cambodia is high. Both have lower uncertainty
avoidance. They both are masculine society but still the condition is better in Australia.
REFERENCES
AsiaBizNews, 2019. Doing Business in Cambodia. Retrieved from:
http://www.asiabiznews.net/project-contracts-tenders-rfp-rfq-resources/how-to-do-
business-in/Cambodia.html

10
Boyd, A., (2012) Landscape, spirit and music: An Australian story. Arts: The Journal of the
Sydney University Arts Association, 24.
commisceo-global, 2019. Cross Cultural Management Guide – Cambodia. Retrieved from:
https://www.commisceo-global.com/resources/management-guides/cambodia-
management-guide
Foley, G., (2012) A short history of the Australian Indigenous resistance 1950–1990. A.
Cadzow, J. Maynard and L. Behrendt, Cengage Learning, South Melbourne.
Hartwell, R. M. (2017). The industrial revolution and economic growth. Routledge.
Hofstedeinsights, 2019. Hofstedeinsights. Retrieved from: https://www.hofstede-
insights.com/
McLean, I. W. (2012). Why Australia prospered: The shifting sources of economic
growth (Vol. 43). Princeton University Press.
MovetoCambodia, 2019. Doing Business in Cambodia. Retrieved from:
https://www.movetocambodia.com/working-in-cambodia/doing-business-in-
cambodia/
Roberts, S. H. (2013). History of Australian land settlement. Routledge.
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
structures/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
management-style/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
meeting-etiquette/

11
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
teams/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
communication-style/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/women-in-
business/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/business-
tips/
Worldbusinessculture, 2019. BUSINESS CULTURE IN AUSTRALIA. Retrieved from:
https://www.worldbusinessculture.com/country-profiles/australia/culture/background-
to-business/