Cross-Cultural Management Report: Challenges in Nepal-Saudi Arabia

This report examines cross-cultural management, focusing on the business interactions between Nepal and Saudi Arabia. It begins with an executive summary and table of contents, then explores cultural differences using Hofstede's cultural dimensions, including power distance, individualism vs. collectivism, uncertainty avoidance, masculinity/femininity, long-term orientation, indulgence, and high/low context communication. The report analyzes the challenges a Nepali business person might face in Saudi Arabia, such as communication barriers, decision-making differences, conflicting attitudes toward disclosure, trust-building difficulties, and task completion issues. It provides recommendations for effective cross-cultural communication and negotiation, emphasizing cultural understanding, active listening, using statistical data, and employing a diplomatic approach. The report concludes by summarizing the key findings and recommendations for successful cross-cultural business practices.

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Cross Cultural Management
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Executive Summary
Cross cultural management defines the management of workforces across the domestic borders.
The study has described a business person from Nepal, who wishes to effective communicate
and negotiate in the business culture of Saudi Arabia. The study has identified the cultural
differences between Nepal and Saudi Arabia, which can affect the business communication and
negotiation process. It has been found that, the business persons in Nepal are open up to
innovative business ideas. However, the business persons of Saudi Arabia are mostly reliant on
traditional business concepts. The study has also described the challenges, which might arise in
the business communication and negotiation process. It can be found that the business person can
face tough challenges of building trust and business decision making. Furthermore, the study has
also provided some appropriate recommendations in terms of cultural understanding and active
listening towards successful business communication and negotiation.

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Cultural Differences between Nepal and Saudi Arabia.............................................................3
2.1 Power Distance Index............................................................................................................3
2.2 Individualism VS collectivism..............................................................................................4
2.3 Uncertainty Avoidance Index................................................................................................4
2.4 Masculinity and Femininity...................................................................................................5
2.5 Long-Term Orientation vs. Short-Term Orientation.............................................................5
2.6 Indulgence vs. Restraint.........................................................................................................6
2.7 High and Low Context Differences.......................................................................................6
3.0 Cross-Cultural Communication and Negotiation Analysis for Identifying Challenges............6
3.1 Communication Issue............................................................................................................6
3.2 Challenges in Decision Making of Negotiation.....................................................................7
3.3 Conflicting Attitude towards Disclosure...............................................................................7
3.4 Challenges in Building Trust.................................................................................................7
3.5 Challenges in Completing Tasks after Negotiation...............................................................8
4.0 Recommendation.......................................................................................................................8
4.1 Cross Cultural Understanding................................................................................................8
4.2 Active Listening.....................................................................................................................9
4.3 Using Statistical Data in Business Negotiation.....................................................................9

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4.4 Using Diplomatic Attitude in Business Negotiation.............................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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1.0 Introduction
Cross cultural management defines the management of work team, which incorporates
varying culture, preferences and practices of international business context (DesAutels et al.,
2015). The study will discuss the cultural differences to be faced by a business person of Nepal,
while he will be communicating and negotiating effectively in the business culture of Saudi
Arabia. Apart from that, the study will also discuss the challenges faced the business person in
cross cultural communication. Furthermore, the study will also prove some suitable
recommendation to the business person towards effectively communication and negotiating in
the business culture of Saudi Arabia.
2.0 Cultural Differences between Nepal and Saudi Arabia
The key culture differences between Nepal and Saudi Arabia can be clearly identified
through Hofstede's cultural dimension theory and high and low context differences. This theory
will explore the cultural differences between two countries which are most relevant for
communication and negotiation.
2.1 Power Distance Index
Power distance index defines the extent to which less powerful employees of an
organization accept or expect that organizational power is distributed unequally. While
considering the business culture of Nepal, it can be found that the organization power in
distributed equally among the organizational members. An equal distribution of organizational
power can be seen among the organizational members of Nepal. On the other hand, Habbash and
Habbash, (2016) opined that Saudi Arabia has high power distance index, where organizational

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power is unequally distributed among the organizational members. Low powerful organizational
members are to accept the power of high powerful organizational members.
2.2 Individualism VS collectivism
Individualism VS collectivism dimension defines the degree to which the organizational
members are integrated in a group (Khakhar & Rammal, 2013). Individualistic society has loose
ties, where the people are mostly prefer individualism manner. On the other hand, collectivist
society has tightly integrated relationship among the people. According to Chibba, (2015), the
organizations Nepal mostly follow collectivism cultural dimension. Moreover, the organizational
members prefer to be in a group and their strength remains in group work. On the other hand,
Salem, (2014) opined that the organizational in Saudi Arabia prefer individualist culture. In such
culture, the organizational members mostly prefer to be in individualism manner. Therefore,
group work is not much appreciated in the business culture of Saudi Arabia.
2.3 Uncertainty Avoidance Index
Uncertainty Avoidance Index dimension defined the degree of tolerance of the people in
a society. Moreover, it assesses the degree to which the people in a particular society embrace or
advert something that is unknown, unexpected or far away from the current status quo (Chibba,
2015). The organizations having high degree in this dimension opt for stiff code of behavior,
guidelines, laws and absolute truth. On the other hand, organizations having low degree in this
dimension are willing to accept innovative ideas, concepts and they are less imposed by stiff
business guidelines. According to Shrestha, (2017), the organizations in Nepal are always willing
to accept new business ideas and concepts for creating business innovation. Moreover, the
organizational members are highly communicative with new people for having innovative
business ideas. On the other hand, Jackson and Manderscheid, (2015) opined that the

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organizations of Saudi Arabia are having stiff code of rules and business guidelines. They are not
open up to new business thoughts and the organizational members are not flexible in
communicating with new people.
2.4 Masculinity and Femininity
This dimension defines the preference of an organization towards achievement, heroism,
material rewards and assertiveness. Organizations having masculinity culture have more
preferences for modesty, quality of life and care for weak (Beugelsdijk et al., 2017). Women are
not given much priority in such business culture. On the other hand, organizations having
femininity culture are highly empathetic and have equal preference for both males and females.
According to Poudel, (2017), the business culture in Nepal is highly feminine, where the female
organizational members are given equal priority like their male counterparts. On the other hand,
Welsh et al., (2014) opined that the business culture in Saudi Arabia is highly masculine, where
female organizational members are not given much priority in business meetings and other
business context.
2.5 Long-Term Orientation vs. Short-Term Orientation
This dimension explores the connection of past occurrence with the present and future
actions. Organizations having low index in this dimension prefer traditional business concepts.
However, organizations having high index in this dimension prefer adaption, circumstantial and
adopt changes with dynamic business environment. According to Simkhada et al., (2013), the
organizations in Nepal are highly adaptive and circumstantial. On the other hand, Khakhar and
Rammal (2013) opined that organizations in Saudi Arabia are restricted to traditional business
concepts.

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2.6 Indulgence vs. Restraint
According to Gautam, (2015), the people in Nepal are always restraint and they control
their gratification of needs by strict social norms. On the other hand, Aldraehim et al., (2013)
opined that the people of Saudi Arabia are highly indulgent and prefer to enjoy life with full of
fun.
2.7 High and Low Context Differences
This dimension refers to the degree of direct and indirect communication a particular
culture uses in their internal dialogue. According to Shrestha, (2017), the business culture in
Saudi Arabia is having high degree in this dimension, where the speakers relies on the receivers
to have certain degree of pre-existing knowledge about the discussed business topic. On the other
hand, Jackson and Manderscheid, (2015) opined that business entrepreneurs of Nepal clearly
transmit precise and transparent message in the business meetings and negotiation process.
3.0 Cross-Cultural Communication and Negotiation Analysis for Identifying Challenges
3.1 Communication Issue
The business person from Nepal can face huge problems in Saudi Arabia in regards to
business communication. According to Simkhada et al., (2013), the main language of Nepal is
Nepali, whereas, the main language of Saudi Arabia is Arabic. Therefore, the business person
will face language issue in Saudi Arabia during the communication and negotiation process. On
the other hand, Welsh et al., (2014) opined that the business entrepreneurs are highly assertive in
their communication style. They mostly use high tone in their speech during business negotiation
process. However, the business entrepreneurs of Nepal are not much accustomed with assertive

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tone in verbal communication. Therefore, the business person from Nepal can face high
communication issue in business negotiation in Saudi Arabia.
3.2 Challenges in Decision Making of Negotiation
The business person from Nepal can face huge challenge in terms of making decisions in
business negotiation. According to Gautam, (2015), the business persons in Saudi Arabia are
highly stiff to the traditional rules and business ideas. They are not much reliant upon new and
innovative business decisions. On the other hand, Habbash and Habbash, (2016) opined that the
business persons are highly inclined towards adapting innovative business decision towards
getting business success in dynamic business environment. In such situation, the business person
from Nepal may face issues in decision making during the negotiation process with the business
persons of Saudi Arabia.
3.3 Conflicting Attitude towards Disclosure
The business person from Nepal can face tough challenges in terms of conflicting attitude
towards disclosure. According to Aldraehim et al., (2013), the business culture of Nepal is
feminie, where the emotion of the people are considered oftentimes even in business negotiation.
On the other hand, Salem, (2014) opined that the business culture of Saudi Arabia is highly
masculine, where emotion is not considered during business negotiation process. They are only
reliant on statistical fact for believing on the business process. Therefore, such strict mentality of
the business person in Saudi Arabia may create problems for the business person from Nepal.
3.4 Challenges in Building Trust
The business person from Nepal may face huge issues in building trust with the business
persons of Saudi Arabia. According to Chibba, (2015), the business persons from Nepal are quite

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flexible in making good relationship with new people and adopting new business ideas.
However, DesAutels et al., (2015) opined that the business persons of Saudi Arabia are not much
communicative with the new people and reluctant to trust on new persons. In such situation, the
business person from Nepal will face tough challenges in building trusting relationship with the
business persons of Saudi Arabia. It will ultimately hamper the communication and business
negotiation process of the business person in Saudi Arabia.
3.5 Challenges in Completing Tasks after Negotiation
The business person from Nepal can also face tough challenges in completing the tasks
during and after the negotiation process. According to Poudel, (2017), the business persons in
Nepal are having low context in their business communication. Moreover, they communicate
clear and precise information among all the organizational members, which speed up the
competition of organizational tasks. On the other hand, Jackson and Manderscheid, (2015)
opined that the business persons in Saudi Arabia are high context in business communication.
Moreover, they share little information with the organizational information, which can mislead
the actual business goals and delay the success of the negotiation process and ultimate business.
4.0 Recommendation
4.1 Cross Cultural Understanding
The business person from Nepal should enhance his cultural understanding regarding the
people of Saudi Arabia. The business person should first learn Arabic language for effectively
communicating with the business persons of Saudi Arabia. Apart from that, the business person
should also be aware of the values and norms of the people in Saudi Arabia. It will also help the

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business person in understanding the non verbal communication of the business persons in Saudi
Arabia.
4.2 Active Listening
It is suggested for the business person from Nepal to actively listen to the business
persons of Saudi Arabia. In this way, the business person from Nepal will better understand the
business perspectives and business terms of Saudi Arabia’s business persons. Active listening
will help both parties in the negotiation process to come an agree point quickly for successful
business negotiation.
4.3 Using Statistical Data in Business Negotiation
From the cultural differences, it has been found that the business persons of Saudi Arabia
are more reliant on statistical data of business rather than any emotional factor. Therefore, the
business person from Nepal should always focus on the statistical data of business process during
the negotiation process. It will help in developing high level of trust between both the parties.
4.4 Using Diplomatic Attitude in Business Negotiation
During the negotiation process, the business person should demonstrate diplomatic
attitude over any cultural clash. Moreover, cultural clash is more likely to happen in differing
business culture, which can even lead to cultural conflict in the business communication and
negotiation process. Therefore, the business person from Nepal should demonstrate diplomatic
attitude in cultural conflict even show more respect to the culture of Saudi Arabia. It will
minimize the chance of cultural clash and lead to successful business negotiation.

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Conclusion
While concluding the study, it can be said that the business culture of Nepal prefer group
work, whereas the business culture of Saudi Arabia prefer individualism. Furthermore, the
business persons of Nepal are open up to new business ideas and concepts. However, the
business persons of Saudi Arabia prefer traditional business ideas. Therefore, the business person
from Nepal can face decision making problems in Saudi Arabia. The business persons of Saudi
Arabia are not much reliant on new business persons. Therefore, the business persons from
Nepal can face huge issues in terms of building trustable relationship with the business persons
of Saudi Arabia. Therefore, the business person from Nepal should enhance the cultural
understanding about Saudi Arabia towards having effective business communication and
negotiation.