CROSS-CULTURAL MANAGEMENT

Presented by,HARSHITA JAKHODIA

MEGHNA KAPOORAKANSHI JAIN

KAPIL CHOUDHARY

2

History & civilization

3

Iran

- The First nation established in Iran was Persian Empire

- The Persian Empire, was an Iranian empire in Western Asia

-  It founded in the 6th century around 500       B.C

History

Sassanid Dynasty invented Bank system. During the third century AD, banks in Persia and other territories in the Persian empire under Sassanid Empire issued letters of credit known as Sakks and is the root of the word cheque.

Rhazes, 865 A.D., Chemist and Physician Discovered Sulfuric Acid 

and Alcohol 

Khwarizmi , 800 A.D., Persian mathematician, astronomer, astrologer and geographer, 

Inventor of Algorithm

5

Religion & Ethic

Iran

90%

4% 3%3%

Religious & ethic groups by percent of populationShia  Sunni   Kurd other

6

POLITICAL SYSTEM

 Iran

7

IRAN

Pahlavi Kingdom(Last Kingdom)1979

8

IRAN

9

After revolution in 1979 the kingdom change to Islamic Republic Government

Imam Khomeini the leader of revolution in 1979

Iran's supreme leader ayatollah Ali Khamenei and the president Ahmadinejad

ECONOMY & POWER

Iran resources

• Oil

• Agriculture 

GDP (purchasing power parity)$928.9 billion (2013 est.) $906.2 billion (2012est.) $877.6 billion (2011 est.) 

Its revenue about 22% of GSP

EDUCATION SYSTEM

Education is highly centralized and Ministry of Education is the center of power. Ministries of Education and Higher Education specify a national course of study for all subjects, publish text books, finance the education and design and make tests. Education is uniform throughout the country.                                           BASIC EDUCATION The school system is under the jurisdiction of the Ministry of Education and Training. In addition to schools, this Ministry also has responsibility for some teacher training and some technical institutes. The Ministry of Education employs the highest number of civil servants -42 per cent of the total- and receives 21 per cent of the national budget.

11

Higher Education

CULTURE

12

DANCE

• Improvisation• Professional/Performance• Line or Open-Circle Dances, Holding Hands.• Open-Circle Dances, Not Holding Hands•  Ceremonial• Calender-Cycle Rituals• Trance or Healing Dances• Rhythms for Dance Music

13

FOOD HABITS

• Iranian food is also referred to as Persian food. Using only small amounts of red meat and emphasizing large amounts of grains such as rice, fruits and vegetables.

• Iranian food is famed for its fresh taste and healthy attributes. Meals in Iran are prepared with a contrast of flavors such as sweet and sour or mild and spicy. Iranian food generally is based on rice. Rice is a relatively inexpensive food and since it is grown locally, it is affordable for most homes and available as a staple in every diet. A typical Iranian meal consists of a large portion of cooked rice topped with vegetables, fish or meat.

• Popular meats in Iran include chicken and lamb. Typically these meats are prepared and eaten as kebabs. They are served as small pieces on skewers. Most meals in Iran will consist of bread, rice and meat, normally a kebab.

FOOD HABITS• Quince, pears, grapes, dates and apricots, as well as melons

flavored with rosewater are favorite dessert dishes in Iran. Tea is a treasured beverage as well as coffee and is normally served after the meal and accompanied by fresh fruit or pastries. Sweet drinks that contain sour milk or yogurt mixed with sparkling water and fresh fruit juices are enjoyed by children as well as adults.

• Iranian food is chosen for each meal depending upon a set of food rules that originated from ancient Greek medicine. Hot and cold foods are chosen with hot foods consisting of meats, some desserts and eggplant. Cold foods include yogurt, cucumbers and fish. Iranian meals normally consist of a delicate balance of both hot and cold foods.

• Like other countries, Iranians typically consume three meals each day, including snacks of nuts or fruit.

• Breakfast typically includes hot tea, cheese and bread. Northern regions often prefer honey with cold rice and fish, while central regions enjoy yogurt and soft cream.

If you are invited to an Iranian's house:

Check to see if the host is wearing shoes. If not, remove yours at the door.  Dress conservatively.  Punctuality is appreciated.  Show respect for the elders by greeting them first.  Expect to be shown into the guests' room. It is usually lavishly furnished with European furniture.   Shake everyone's hand individually.  Accept any offer of food or drink. Table manners: Iranians are rather formal. Although some meals in the home are served on the

floor and without eating utensils, it does not indicate a lack of decorum. In more modern homes, meals are served on a dining table with place settings. 

Try a bit if everything that is served.  Meals are generally served family-style.  Most tables are set with a spoon and fork only.  There is often more food than you can eat. Part of Iranian hospitality is to shower guests with

abundance.  Expect to be offered second and even third helpings. Initial refusals will be assumed to be polite

gestures .

DINING ETIQUETTE

Relationships & Communication• Iranians prefer to do business with those they

know and respect, therefore they expect to spend time cultivating a personal relationship before business is conducted.

• Who you know is often more important than what you know, so it is important to network and cultivate a number of contacts. 

• Expect to be offered tea whenever you meet someone, as this demonstrates hospitality. 

•  Since Iranians judge people on appearances, dress appropriately and stay in a high standard hotel. 

Business Meeting Etiquette•  Appointments are necessary and should be made 4 to 6 weeks in advance. •  Confirm the meeting one week in advance and when you arrive in the country.• It is a good idea to avoid scheduling meetings during Ramazan (Ramadan) as the

need to fast would preclude your business colleagues from offering you hospitality. • Arrive at meetings on time, since punctuality is seen as a virtue. •  The first meeting with an Iranian company is generally not business-focused.

Expect your colleagues to spend time getting to know you as a person over tea and snacks. 

• Be patient - meetings are frequently interrupted.•  Written materials should be available in both Farsi and English. • Do not remove your suit jacket without permission. • Do not look at your watch or try to rush the meeting. If you appear fixated on the

amount of time the meeting is taking, you will not be trusted. 

• It takes time for Iranians to become warm towards foreign businesspeople. Until then, they may appear somewhat stiff and formal.

•  Personal relationships form the basis of business dealings. • Decisions are made slowly. • Iranians are deliberate negotiators who can drive a hard bargain.• Do not use high-pressure tactics. They will work against you.• Iranians may display emotion, or even walk out of the meeting, or threaten to

terminate the relationship in an attempt to convince you to change your position. • Iranians often use time as a negotiating tactic, especially if they know that you have

a deadline. Be cautious about letting your business colleagues know that you are under time pressure. 

•  Companies are hierarchical. Decisions are made at the top of the company, either by one person or a small council. 

Business Negotiating

Management styleThe role of a manger• In Iran, as in other hierarchical societies, managers may take a

somewhat paternalistic attitude to their employees. They may demonstrate a concern for employees that goes beyond the workplace.

• It is the supervisor’s job to regularly check on the work of a subordinate and to provide regular constructive feedback. This may include monitoring work quality and the timing of its completion.

APPROACH TO CHANGE• Iran’s intercultural adaptability and readiness for change is

minimal. This means that change is difficult to bring about and is not received with any enthusiasm. Failure in Iran causes a long-term loss of confidence by the individual as well as by others. Because of this attitude, intercultural sensitivity is going to be required, especially when conducting group meetings and discussing contributions made my participating individuals.

APPROACH TO TIME AND PRIORITIES

• People in Iran will not want to upset others in order to force adherence to a deadline, and while appointments and schedules need to be set well in advance as a sign of respect for the individual, you need to understand that those schedules are seen as flexible, not necessarily needing to be adhered to.

When working with people from Iran, it’s advisable to reinforce the importance of the agreed-upon deadlines and how that may affect the rest of the organization.

Global and intercultural expansion means that some managers may have a greater appreciation of the need to enforce timescales and as such, agreed deadlines are more likely to be met.

DECISION MAKING

• Many companies are family-owned. Decisions are usually made at the top of the company, either by the most senior ranking person or by a small council of senior level staff. Decisions are often reached after discussions with everyone who will be affected. Once a decision is reached, it is handed down to subordinates to implement. Employees do not question the decisions that have been reached. Managers or those in a position to do so will make decisions, while in general their subordinates will wait to be told what to do. Risk-taking is limited to those in decision making positions.

Employees are generally treated with respect. In turn, employees treat their manager with the respect and deference attributable to their position.

Meeting deadlines is often secondary to maintaining personal relationships. Intercultural sensitivity is necessary and you must remember that managers do not publicly chastise employees because it would cause the subordinate to lose dignity and respect.

BOSS OR TEAM PLAYER?

• If you are working in Iran intercultural sensitivity is essential. It is important to remember that reputation plays an important role. The risk becomes amplified in a team or collaborative setting. If you would like to encourage participation it is important first to clearly establish a non-threatening work environment and communicate fully that their participation is desired.

Successful cross cultural management will rely on the individual’s interpersonal skills and ability to maintain cordial relationships with their subordinates.

COMMUNICATION AND NEGOTIATION STYLES

• It takes time for Iranians to become warm towards foreign businesspeople. Until then, they may appear somewhat stiff and formal. Cross cultural management will be more effective when working with the understanding that personal relationships form the basis of business dealings and decisions are made slowly. Iranians are deliberate negotiators who can drive a hard bargain. Do not use high-pressure tactics as they are generally counterproductive. Iranians may display emotion, or even walk out of the meeting, or threaten to terminate the relationship in an attempt to convince you to change your position. Do not emulate this behavior. Iranians often use time as a negotiating tactic, especially if they know that you have a deadline. Be cautious about letting your business colleagues know that you are under time pressure. Companies are hierarchical.

It is NOT What you Know, It is Whom you Know:The traditional Islamic greeting you will hear is 'Asalamu alaykum' (peace be with you). As a non-Muslim you would not be expected to use it, but if you did you would receive the reply 'wa alaykum salam' (and peace be with you). handshakes are always used and can last a long time. Islamic etiquetterecommends that one waits for the other to withdraw their hand first before doing the same.

Business Culture

Business Culture

The Arabs do not separate professional and personal life. Small talk is more than just a courtesyThe best way to communicate is always face to faceDecisions can take a long time, probably longer than you’re used to

Dealing with Gender

• Interaction between the sexes is still frowned upon in certain arenas.

• If you are introduced to a woman as a male, it is advisable to wait and see if a hand is extended. If it is not, then do not tryto shake hands. Avoid touching and prolonged eye contact with women

TURN-OFFS AND/OR RUDE MOVES• Do not eat or drink in front of

Muslims during Ramadan. They are fasting.

• Do not use your left hand—particularly when eating. It is considered unclean

• in parts of the Middle East.• Never cross your legs and

display the sole of your foot towards someone.

• Orthodox Muslims do not eat pork, drink alcohol, or discuss the female members of their family.

TURN-OFFS AND/OR RUDE MOVES

• In Iran, the "thumbs up" gesture is considered an offensive insult

• Displaying the sole of one's foot or touching somebody with one's shoe is often considered rude. This includes sitting with one's feet or foot elevated. In some circumstances, shoes should be removed before entering a living room

TURN-OFFS AND/OR RUDE MOVES• Friday is the Muslim Holy Day;

workweeks may run Saturday through Wednesday

• Never interrupt Muslims at prayer, a religious practice they perform five times a day.

• Daily routines, appointments and meetings must be fitted in appropriately around prayer times..

• Many Middle Easterners are also exceedingly generous, and their hospitality is legendary

IMPORT AND EXPORT• Iran is ranked 117 with an ECI of -1.277998.• Major exports : Petroleum oils, crude (72%), Petroleum oils, refined (8%), Petroleum 

gases (2%), Polymers of ethylene, in primary forms (2%), Acyclic alcohols (1%)• Major imports: Iron and non alloy steel (3%), Parts and accessories of the motor 

vehicles (3%), Turbojets, turbo propellers and other gas turbines (3%), Hot rolled iron or non-alloy steel, coil ,w >600mm, t >10mm, myp 355 (3%), Raw sugar, cane (2%) 

• Major trade partners (exports):Asia NES (26%), China (12%), Europe NES (11%), Japan (7%), India (5%)

• Major trade partners (imports):United Arab Emirates (29%), China (17%), Germany (11%), Korea, Rep. (5%), Turkey (4%)

WHAT TYPE OF BUSINESS CAN BE DONE BY IN IRAN?

Engage in certain dealings in informational materials, such as exporting books, movies, music and art

Export certain limited types of free communications software;

Export most types of food products to Iran; Obtain a specific license from OFAC to export or

deal in medical supplies, medical equipment, and pharmaceuticals for use in Iran;

Obtain a specific license from OFAC to rent out property you may have owned

• Engage in certain travel related business with Iran (such as sell plane tickets to Iran);

• Provide certain legal services to people in Iran;• Register  intellectual property such as patents and

trademarks  in Iran• Apply for a license for most other transactions

What type of business can be done by in Iran?

What can you not do in Iran?

unless you have a specific license from OFAC, you cannot, among other things:

• Sell most goods to Iran from the U.S. or from any third country jurisdiction, like Germany or Dubai;

• Facilitate trade with Iran, such as arrange for a shipment of Chinese goods from China to Iran, provide credit to enable such a transaction, work for a Korean company on most deals related to Iran, or work in a Dubai company on re export transactions with Iran;

• Invest in Iran, such as building an apartment building, opening a factory, running a factory, etc. (bear in mind one Iranian American was fined $30,000 in late 2010 for a “non-egregious” investment in a family catering business);

• Run a business in Iran such as a bookstore, or an engineering firm;

What can you not do in Iran?

Work in Iran or for Iranian companies, whether you are sitting in your house in the United States and working remotely for a company in Iran, or whether you move to Iran and work for a company there, or even work for an Iranian company in London, Istanbul, or Dubai;

Deposit and maintain money in banks in Iran, even in non-sanctioned private banks; or

Import most goods from Iran, even through a third country like Australia or India;

Set up a company overseas to deal with Iran.