UPM BBA 2015 Subject : Cross Cultural Management

1. DEVELOPING CROSS-CULTURAL
EFFECTIVENESS: AN ANALYSIS
BETWEEN PRIMA IN MALAYSIA AND
SOUTH KOREA
MGM 4155 CROSS CULTURAL MANAGEMENT
Group Members : Mohd Osman Mohd Hassan (EX02894)
Michelle Lim Li Yoke (EX02885)
Hafizullah Mohd Amin (EX02906)
Prepared For : Puan Ruhana Binti Busu

2. • Step one
– About Prima
– Cultural profile table
– About South Korea
– Cultural profile table
• Step two
– Cross-cultural understanding
– Cultural profile table
• Step three
– Adapt your professional skills
– Cultural differences summary
AGENDA

3. Established under the PR1MA Act 2012 to plan, develop,
construct and maintain high-quality housing with lifestyle
concepts for middle-income households in key urban centers.
PR1MA was founded by a mixture of professionals from the
developer industry, banking industry and also from
Government agencies. The founders have emphasized the
company’s vision and basic values in implementing cultural
values.
Basic Assumptions
• The existence of PR1MA and its corporate goal - INSPIRE
• National Culture – to help the nation improving the quality
of life by providing quality
PR1MA

4. CULTURAL PROFILE
Code Parameter Description Own Score
A Time Focus Monochronic 2
B Time Orientation Future 4
C Space Private Public 3
D Power Equality Hierarchy 3
E Structure Collectivism 4
F Competition Co-operative Competition 3
G Communication Low-context 2
H Action Doing 4

5. Polychronic
Future
Public
Hierarchy
Collectivism
Competitive
High-context
Doing
1
2
3
4
5

6. Time Focus : Monochronic (2)
• Scheduled based and tasked
focused.
• To achieve the corporate KPI
within time
• Focused on short-term results
Time Orientation : Future (4)
• Towards future results
• Ultimate goal of the company is to
solve affordable housing scheme in
the country.
Space : Private – Public (3)
• Vague space line
• Able to sit together and discuss with
lower rank executives
• Managers has their own rooms, but not
hard to be approached
• Builds up relationship among its
employees
• Not forgetting on task-centred approach.
Power : Equality – Hierarchy (3)
• Encourages participative
approach from all levels and
emphasized on work
relationship
• There are still strict autocratic
orders and supervision

7. Structure : Collectivism (4)
• The word “team” and “we” are
always being repeated
• Since induction sessions
• Group benefits are main concern
Competition : Co-operative –
Competitive (3)
• Healthy competitiveness level
• Achieve individual, departmental
and corporate goals, the co-
operative level and teamwork
• Offer help to other departments
Communication : Low-Context (2)
• Some information are not freely
available freely
• However, if needed, the
information are communicated
clearly.
• Everything is recorded and
documented
Action : Doing (4)
• A “doing” concept where most of the
employees are encouraged to be
resourceful, proactive and be
outspoken
• Action-oriented, most of the senior
employees has high competencies
and are professional in their field of
work.

8. Background
One of the world's fastest-growing from the early
1960s to the late 1990s, and South Korea is still one
of the fastest-growing developed countries in the
2000s, along with Hong Kong, Singapore, and
Taiwan, the other three Asian Tigers.
South Koreans refer to this growth as the Miracle
on the Han River. The South Korean economy is
heavily dependent on international trade, and in
2013, South Korea was the 8th largest
exporter and 7th largest importer in the world.
SOUTH KOREA

9. Economy
South Korea was one of the few developed
countries that were able to avoid a recession during
the global financial crisis.
The unemployment rate in South Korea also
remained low in 2009, at 3.6%.
SOUTH KOREA

10. SOUTH KOREA
Business Practices and Etiquettes
• Handshakes
• Business Meetings
• Contracts
• Names

11. CULTURAL PROFILE
Code Parameter Description Own Score
A Time Focus Monochronic Polychronic 3
B Time Orientation Past Future 3
C Space Private 2
D Power Hierarchy 5
E Structure Individualism 2
F Competition Competition 5
G Communication High-context 5
H Action Doing 4

12. Polychronic
Future
Public
Hierarchy
Collectivism
Competitive
High-context
Doing
1
2
3
4
5

13. Time Focus : Monochronic –
Polychronic (3)
• Schedule based, distribute
detailed information , use control
systems and strict deadline
• Focus on longer term and share
implicit knowledge or information
Time Orientation : Past - Future (3)
• Uses past goals to guide their
processes
• Focus in continuation of
company’s values and develop
performance in keeping
customary goals
• Develop long-term plans and
results, co-ordinate to meet
longer-range goals and to achieve
long-term benefits
Space : Private (2)
• More on task-centred
• They plan in form of individualistic
and systematic
• Performance are measured as
individual
Power : Hierarchy (5)
• Hierarchy is very crucial
• Organizational structure is
tightly controlled and
autocratic

14. Structure : Individualism (2)
• ‘I’ usually predominates over the
‘We’
• Due to the competitiveness
among individuals
• Everyone is task and performance
focused to achieve their personal
goals
Competition : Competition (5)
• The competitiveness level is high
and quite unhealthy
• Individuals ‘fight’ to be the top
performers
• Individuals among team tend to
focus on their own performance
rather than spending time on
others
Communication : High-Context (5)
• The context of communication
is high and messages are
implicit
• They are not usually directly
expressed but more on
situational based
Action : Doing (4)
• ‘Doing’ concept whereby their
employees are encouraged to have
the ability to fulfil organizational
tasks competently and
independently
• Higher expectations on
performances are set for the
employee to keep up with the level
of competitiveness internally and
externally; locally or internationally

15. CROSS-CULTURE PROFILE
Code Parameter (1) ------ Value Range ----- (5) PRIMA SOUTH
KOREA
A Time Focus Monochronic Polychronic 2 3
B Time Orientation Past Future 4 3
C Space Private Public 3 2
D Power Equality Hierarchy 3 5
E Structure Individualism Collectivism 4 2
F Competition Co-operative Competition 3 5
G Communication Low-context High-context 2 5
H Action Being Doing 4 4

16. Polychronic
Future
Public
Hierarchy
Collectivism
Competitive
High-context
Doing
1
2
3
4
5

17. Time Focus : Monochronic –
Polychronic (2-3)
• Almost similar
• South Korea is balance
between Monochronic and
Polychronic
• Prima is slightly more on
Monochronic by 1 point
Time Orientation : Past – Future (4-3)
• Almost similar
• South Korea is balance between Past
and Future
• Prima is slightly more towards
Future by 1 point
Space : Private – Public (3-2)
• Almost similar
• Prima is in the middle between
Private and Public
• South Korea is more towards
Private by 1 point
Power : Equality – Hierarchy (3-5)
• Prima practises balance Power
between Equality and Hierarchy
• But Hierarchy is very crucial in South
Korea
– Their organizational structure in
Korea is tightly controlled and
autocratic
• The difference is 2 points

18. Structure : Individualism –
Collectivism (4-2)
• Gap by 2 points
• Prima is more Collectivism
• South Korea is more
Individualism.
Competition : Co-operative –
Competition (3-5)
• Prima is balance between Co-
operative and Competition,
• But the competitiveness level in
South Korea is very intense
• The variance is 2 points.
Communication : Low – High-Context (2-5)
• This is the criteria with highest gap of 3
points
• Prima is more on Low-context
• South Korean is very High-context
Action : Being – Doing (4-4)
• Share the same score for this
criterion
• Both are more Doing than Being.

19. Example
Prima wants to expend their business in South Korea
and plan to open new site office in Seoul to capture
property market there.
ADAPTING TO DIFFERENT CULTURE

20. Planning
• Differences in cultural values regarding management tasks
– Generally, Koreans have a very high level of individualism
whereby everyone is task and performance focused to
achieve their own goals. KPI is easier to achieve when
everyone is focusing on what they are doing. The goals and
objectives set should be very detailed and quantifiable for
individual objective.
• Management strategies
– Managers should have a precise planning in place which is
very specific on ‘things to-be-done’ from top to bottom. KPI
need to be identified for all level of staff in order to achieve
company’s goal and objective.
ADAPTING TO DIFFERENT CULTURE

21. Organizing
• Differences in cultural values regarding management tasks
– Korean people are used to be a relatively strong hierarchy
structure. Procedures and protocols will need to be followed
if goals are to be achieved in the long run. Communication
with Korean people will be more difficult as there are more
high-context. They are not usually directly expressed and
more situational based.
• Management strategies
– Hiring the right local (Korean) managers, and empower them
is important to have better control in organization. Perhaps,
dealing with local authorities will make work much easier.
ADAPTING TO DIFFERENT CULTURE

22. Staffing
• Differences in cultural values regarding management tasks
– Due to high gap in Communication, Competition, Structure
and Power, it is important to get local staff in operations and
management. Therefore, they will be able to work within
similar working culture and environment.
• Management strategies
– Provide support from head office for training and
development in order reduce knowledge gap and also to have
‘work-together’ environment with parent company.
ADAPTING TO DIFFERENT CULTURE

23. Directive (Leading)
• Differences in cultural values regarding management tasks
– Korean employees are used to strong directive control and
detailed instruction on how to proceed. There have better
respect towards local managers than foreigners.
• Management strategies
– Managing local manager is important, objectives and goals
need to be defined clearly and disseminate from top to
bottom.
ADAPTING TO DIFFERENT CULTURE

24. Controlling
• Differences in cultural values regarding management tasks
– Conflicts must be resolved before work can progress. That
means, whenever a deviation to the plan has been observed,
the feedback given should be carefully communicated,
preferably in an indirect way.
• Management strategies
– It is important to establish good relationship with employees.
ADAPTING TO DIFFERENT CULTURE

25. Management tasks 1. Differences in cultural values regarding
management tasks
2. Management strategies
Planning :
Defining goals and objectives
1. High level of individualism
2. Specific planning and KPI
Organizing :
Defining tasks and relationship structures
1. Strong hierarchy structure
2. Hiring strong local management team
Staffing :
Acquiring appropriate human resources
1. High-context communication
2. Build up long-term relationship
Directing (leading) :
Leading the employees towards the goals of organization
1. Strong directive control and detailed instruction
2. Precise instruction and documentation
Controlling :
Monitoring performance and giving feedback on
achievements
1. Conflict must be resolved before work can progress
2. Establish good relationship with employee
CULTURAL DIFFERENCES SUMMARY

26. THANK YOU
References
Understanding Cross-Cultural Management (2nd Edition), Prentice Hall
http://www.pr1ma.my/
http://en.wikipedia.org/wiki/South_Korea
http://www.kwintessential.co.uk/etiquette/doing-business-southkorea.html