Foreign Culture Report: Spanish Culture and Business Practices

This report offers a comprehensive overview of Spanish culture, encompassing its historical roots, diverse population, and the official and regional languages spoken. It delves into the political, economic, technological, and legal factors shaping the business environment in Spain, including the role of the ruling party, economic strategies, technological advancements, and legal procedures for business expansion. The report further examines management practices, such as recruitment, promotion, and HRM, highlighting the influence of cultural differences and the adoption of global practices. It also discusses employee motivation, the qualities required of expatriates, and unique features of Spanish business organizations, such as hierarchical structures and negotiation styles. References to relevant studies are included.

Splendid Spain
A FOREIGN CULTURE REPORT

An overview of Spanish culture
 The cultures of Spain carries the essence of
European culture which is a blend of historical pre-
Roman Celtic and Iberian practices. Along with
that one can spot certain impacts of Greek
cultures as well here (Gutierrez 2015).
 The population of Spain belongs to Latin European
ethnic group. Although they share common
language, history and culture; there are numerous
religious beliefs that people practice which
suggest the nation’s complicated and diverse past.
 Their official language is known as Spanish.
Simultaneously, some widely spoken regional
languages are used for communication. Such as,
roman language like Galician and Catalan.

Business environment of the country
This account will proceed with an analysis of political, economic,
technological and legal factors which is going to help the aim of
understanding the business environment in Spain.
 Political environment- Here, People’s party is found as ruling party. The
entire judiciary system is slow and immensely driven by politics.
Although, government is trying their best to deliver better public
administration system. In the year of 2010, the prime minister had
introduced an anti-crisis commission comprised of members from
various political parties to address the issues of fatal ongoing recession
in the country.
 Economic environment- In order to boost the country’s economy
Government has made flexible laws of granting loans to small business
organisations. Economy ministry has included a committee to evaluate
the country’s energy strategy for the coming 25 years .

Business environment of the country
 Technological environment- Spain is one of the largest mobile markets
around Europe. Faster communication comes with well-established 4G
networks, high-speed trains connecting Madrid with Barcelona. In
terms of medical patents Spain is comparatively lagging behind France
and Germany though their biotechnology market revenues are facing a
gradual healthy growth.
 Legal environment- Any business organisation has to go through six
procedures to begin with a plan of further business expansion in Spain.
Spanish legislature allows foreign investments of up to 100% equity.
After considering the world’s bank business it can be assumed that it
takes only 13 days to begin a business in this country.

Management practices of Spanish
business organisations
 Recent studies suggest that Spain is gradually adopting global
practices of HRM, though some traditional regulations are still
there. The cultural differences, low collectivism of institutions,
high power distance are hindrance against adopting universal
practices of HRM (García-Carbonell, Martín-Alcázar and
Sánchez-Gardey 2016 ).
 Recruitment procedure in Spain is mostly informal. They trust on
personal contacts, internal advertising instead of arranging a
proper formal interview process. The same method is used for
promotions. In order to fill up the vacant higher designations
they prefer internal promotion. Traditionally, promotion comes
with seniority and experience yet efficiency matters to some
extents.
 In the field of HR development again informal scenario can be
seen. Spanish management believe in short- term investments

Employee motivation for employees
working in Spain
 Employees put their limits to deliver their best as there is always an
approach to achieve the goal. As most of the job profiles are non-
technical, monotones and bound to routine they need a certain
motivation to achieve those tasks (Naranjo-Valencia et al. 2016).
 Informal recruitment method welcomes biased evaluation of
performance. If managers can recover this practice company can
explore employee’s potential as well as worker’s performance will
develop.
 If the management designs the jobs well and allots right kind of job to
the right person then employees can find satisfaction in whatever they
are doing.

Qualities of an expatriate working in
Spain
Expatriate might face difficulties while doing job in Spain because pay scale is
comparatively low as the cost of lifestyle is not that high. People enjoy a laid back
attitude and enjoyable atmosphere. Unemployment is relatively high might be
because of this attitude of the natives and terrible job market over here.
However, being an expatriate in Spain, few things should be kept in mind (Tena
2015).
 An understanding of local culture and history can be very helpful for them as
people are mostly art and culture oriented instead of engaging themselves into
regular paid jobs. Expats can have a great experience while exploring the
country.
 Expatriates face less complexity while adopting with their foods as it comprises
if fresh veggies and olive oil which promotes healthy lifestyle.
 In order to leave a good impression an expat should revise his/ her dressing
sense because physical appearance matters to them largely. Moreover, the
language will help an employee to get mixed up in this foreign environment.

Overview of some special features of
business organisations in Spanish
cultural setting
 Spanish management strongly believes in superior authority
therefore almost every company has a strict structured hierarchy
and separated departments. Individualism is appreciated more
than teamwork.
 They do not prefer to follow a prior structure while executing any
work as they believe in uncertainty of future. Therefore, they
work according to the instincts and considering the immediate
need of any project.
 Negotiations are lengthy and meetings are generally organised to
exchange ideas. Mostly, business decisions are taken by superior
authority, participation of junior employees is not entertained.
 Use of business card and a good dressing sense is mandatory in a
business meeting. They prefer people having refined taste of
food and drink. Lunch breaks are long (2 hours almost), therefore
people tend to work till late at night.

References
 García-Carbonell, N., Martín-Alcázar, F. and Sánchez-Gardey, G., 2016.
The views of Spanish HR managers on the role of internal
communication in translating HR strategies into HRM
systems. European Management Journal, 34(3), pp.269-281.
 Gutierrez, J.J.P., 2015. World libraries, the diplomatic role of cultural
agencies. European Review, 23(3), pp.361-368.
 Naranjo-Valencia, J.C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2016.
Studying the links between organizational culture, innovation, and
performance in Spanish companies. Revista Latinoamericana de
Psicología, 48(1), pp.30-41.
 Tena, J.C.M., 2015. Residencial migration and urban sprawl in the
spanish mediterranean area. Cuadernos de Turismo, (35), p.469.

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