Management of Organizations: Cultural Differences Report - BUMGT5920

This report, prepared by a student, examines the challenges and opportunities of managing organizations in a global context, specifically focusing on the cultural differences encountered by a New Zealand-based employee, Rohit, during his travels to Cikarang (Indonesia), China, and South Korea. The report begins by providing an overview of the cultural and economic landscapes of New Zealand, Indonesia, China, and South Korea, highlighting key languages, currencies, and industries. It then delves into the cultural norms and business etiquette of each country, emphasizing the impact of cultural dimensions, such as power distance, individualism, and long-term orientation, on business practices. The report utilizes Hofstede's cultural dimensions to illustrate the differences between New Zealand and the South East Asian countries, particularly South Korea, and discusses how these differences influence relationship-building and meeting protocols. It concludes by emphasizing the importance of cultural sensitivity and preparation for effective communication and successful business operations in diverse international settings, specifically addressing the importance of understanding cultural nuances in business interactions. The report is a valuable resource for students and professionals seeking to navigate the complexities of global management.

Running head: MANAGEMENT OF ORGANIZATIONS
MANAGEMENT OF ORGANIZATIONS
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction to each country............................................................................................................2
Cultural norms.................................................................................................................................3
Business etiquette............................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction to each country
Rohit has been working in the New Zealand based head-office of Global Dairy Products
or GDP. He has also planned a trip to South East Asia in the countries including Cikarang, China
and South Korea. The existence of cultural differences between the countries are quite high and
can have a major impact on the work process of Rohit in the organization.
New Zealand – English is the pre-dominant and official language of New Zealand and the
English dialect of the country is quite similar to that of Australia. The indigenous people of New
Zealand mainly use Maori language in order to communicate among themselves and with other
people as well. The currency that is used in New Zealand is New Zealand Dollar. The levels of
ethnic or cultural diversity in the country is high with 15.6% Maori, 21.2% Asian, 20.0% Pacific
and 37.0% New Zealand European. The major industries that are able to contribute to the
economy of New Zealand include agriculture, mining, fishing, horticulture and forestry (Adekola
& Sergi, 2016).
Cikarang, Indonesia – Indonesian is considered to be the official language of Indonesia.
This is a standard variety of the Malay language. Indonesian rupiah is used as the major currency
of the country. The motto that has been followed by Indonesia on a regular basis is “Unity in
Diversity”. This is able to signify the ways by which people belonging to different cultures are
able to live in peace in the country. The industry sectors of Indonesia that are able to provide job
opportunities to the people in the country include natural gas and petroleum, apparel, mining,
footwear, chemical fertilizers, plywood, textiles, food and tourism and rubber (Tenzer, Terjesen
& Harzing, 2017).

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China – The official dialect that has been used by China is Mandarin and more than 70%
of the total population has been speaking this language. Renmibi is the currency that is used in
China. China has proved to be highly diverse based on geographical and cultural nature of the
country. The industries in China that are able to support the economy of the country include
machinery, food processing, automobiles, consumer products, chemical and cement.
South Korea – Korean language is officially used in China for the purpose of effective
communication. South Korean won is used in South Korea as the official currency. South Korea
has been struggling in the last few years based on the ways by which cultural diversity can be
developed in an effective manner. The largest industries that operate in South Korea include
automobiles, electronics and telecommunications, chemical and steel (Vaccarini, Pojaghi & Yan,
2019).
Cultural norms
The cultural norms that have been implemented in New Zealand are mainly based on the
levels of diversity in the country. On the other hand, the cultural values are considered to be
quite different for the South East Asian countries like Indonesia, China and South Korea. The
business etiquettes followed in the countries are also highly different in the Asian countries in
comparison to New Zealand. Dining etiquettes in the countries are also quite different in nature
and are based on the cultural dimensions that exist (Beugelsdijk, Kostova & Roth, 2017).
The power distance in New Zealand is lower in comparison to the South East Asian
countries. Long term orientation levels are also considered to be highly different from each other.
For example, in case of South Korea the individualism levels are higher in comparison to that of
New Zealand. Differences in the long term orientation levels are also highly different in nature

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and can have an impact on the working process of Rohit. Uncertainty avoidance can also be
taken into consideration for the purpose of understanding the differences that exist in the process
of conducting the business operations in a proper manner (Brannen, Piekkari & Tietze, 2017).
Figure 1 – Cultural dimensions
Source - (Hofstede-insights.com. 2020)

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Figure 2 – Cultural dimensions
Source - (Hofstede-insights.com. 2020)

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Figure 3 – Cultural dimensions
Source - (Hofstede-insights.com. 2020)
The Figure 1 above has been able to depict that huge differences exist between the
cultural dimensions that exist between New Zealand and South Korea. South Korea has been
considered as an example for the purpose of understanding the differences that exist between the
cultural values that are further able to influence the business operations (Hofstede-insights.com.
2020). The differences in culture between New Zealand and other two South East Asian
countries like Indonesia and China can thereby be considered to be quite high. The Figure 2 and
Figure 3 have been able to depict that the cultural differences between New Zealand and the two
other countries including China and Indonesia are quite similar. The business activities among

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the countries thereby differ in a huge manner due to differences that are exist between the
cultural dimensions (Hofstede-insights.com. 2020).
Business etiquette
Rohit will face major levels of differences between the processes of relationship building
that is implemented by the Asian countries in comparison to New Zealand. Global Dairy
Products or GDP has planned for the visit of Rohit to the different countries in South East Asia.
The business operations that are conducted by organizations in New Zealand are mainly based on
the cultural values that are followed in the country. Cultural values have an impact on the ways
by which employees from the other countries are able to maintain their work process and can
collaborate with the managers in an effective manner (Hamilton & Webster, 2018). Relationships
that are developed by the managers with employees in the other countries can play a major role
in improving the operations of an organization like Global Dairy Products that operates in
different countries of the world. The meetings that are conducted in the different countries are
also related to the relationships that are developed by Global Dairy Products with the employees
who are a part of its operations in different countries (López‐Duarte, Vidal‐Suárez & González‐
Díaz, 2016).
The cultural diversity levels in South Korea are low in comparison to the other countries
like China and Indonesia. However, the cultural values in South Korea are quite similar with that
of Indonesia and China. This is considered to be a major factor that can have an impact on the
business etiquettes and the development of meetings as well (Semrau, Ambos & Kraus, 2016).
The employees of Global Dairy Products will also able to adjust themselves with the changes
that take place in the cultural values in order to maintain effective levels of communication. The
lack of cultural diversity is able to play a major role in development of relationships by the

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managers with employees in different countries. Rohit will thereby need to prepare himself in
order to develop a successful meeting with the clients in South Korea due to absence of cultural
diversity in the country (Pu & Tang, 2017).
Conclusion
The report can be concluded by stating that Rohit will need to prepare himself in an
effective manner for the purpose of communicating effectively with the managers and employees
who are a part of the South East Asian operations of Global Dairy Products. The business and
cultural information will also be able to play a major role in proper development of the ways by
which Rohit can gain success in the meetings that are to be conducted in the different countries.
The power distance, long term orientation and uncertainty avoidance levels are different in case
of New Zealand and a South East Asian country like South Korea. This is able to play a major
role in proper development of the business operations and improving the work process of Rohit
as well.

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References
Adekola, A., & Sergi, B. S. (2016). Global business management: A cross-cultural perspective.
Routledge.
Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level
culture research in international business since 2006. Journal of International Business
Studies, 48(1), 30-47.
Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical challenge
to MNC theory and performance. In Language in international business (pp. 139-162).
Palgrave Macmillan, Cham.
Hamilton, L., & Webster, P. (2018). The international business environment. Oxford University
Press.
Hofstede-insights.com. (2020). Country Comparison - Hofstede Insights. Retrieved 21 January
2020, from https://www.hofstede-insights.com/country-comparison/indonesia,new-
zealand/
López‐Duarte, C., Vidal‐Suárez, M. M., & González‐Díaz, B. (2016). International business and
national culture: A literature review and research agenda. International Journal of
Management Reviews, 18(4), 397-416.
Pu, R., & Tang, C. (2017). China-Malaysia Cultural Differences In International Business
Relations. Malaysian E Commerce Journal (MECJ), 1(2), 13-16.

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Semrau, T., Ambos, T., & Kraus, S. (2016). Entrepreneurial orientation and SME performance
across societal cultures: An international study. Journal of Business Research, 69(5),
1928-1932.
Tenzer, H., Terjesen, S., & Harzing, A. W. (2017). Language in international business: A review
and agenda for future research. Management International Review, 57(6), 815-854.
Vaccarini, K., Pojaghi, B., & Yan, S. (2019). A Psychological Perspective on the Role of Culture
in Sino-European FDI Contexts-Managers’ Perception of Cultural Difference and its
Impact on International Business. Eurasian Journal of Business and Management, 7(3),
1-14.