Human Resource Management

Executive Summary
This assignment focuses on International Human Resource Management and its implications
with regards to cross-cultural diversity. This is evaluated through the hypothetical company
Transtec which is a UK based travel agent that is planning to set up a branch in Saudi Arabia
with a diversified team.

The main objective of this assignment is to understand the cultural differences that exist between
the base country United Kingdom and the host nation Saudi Arabia. This has been accomplished
through the evaluation of the Hoftsede model. Furthermore the assignment also focuses on the
customs, rituals, traditions and business etiquette of Saudi Arabia for a better understanding of
the host nation.

The benefits of a multicultural and multinational work-team along with its communication
barriers are analyzed by interviewing the members of the group. As well as identifying training
methods to build up effective communication throughout the company.

Finally it can be assumed that, the core to success of a multi-cultural team operating in a foreign
country is to respect, understand and adapt to cultural changes.

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Human Resource Management

Introduction
Human Resource Management (HRM) is a strategic and logical approach that is followed and
carried out by the management team of organisations all over the world with utmost dedication
and sincerity. It is very important since based on HRM a firm decides employment, performance
management, organisation development, employee motivation, communication, administration,
training amongst many other issues (Dessler, 2007, p.4).

In recent times, another phenomenon that is becoming extremely

well known in the global business world is of International
Human Resource Management (IHRM).

Hugh Scullion has defined International Human Resource

Management as “the HRM strategies, policies and practices
which firms pursue in response to the internationalisation of
business.” Other scholars such as Marion F Welch, Paul Iles
states the IHRM concentrates on activities recruitment and
selection, training and development, compensation, repatriation
of expatriates along with managing multicultural teams, international diversity and performance
management.

A vast aspect of IHRM is similar to HRM in

the context that both include planning and
staffing, recruitment and selection, appraisal
and development and rewards. However the
major difference between the two is HRM
deals with employees from the one national
boundary whereas IHRM revolves around
employees from various parts of the world and
culture working together. In IHRM the organisation has its headquarters in one country while its
subsidiaries maybe located in another country of a different culture.

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Human Resource Management

Hence, if an organisation is interested in expanding its organisation by entering the global market
via international business, IHRM is highly important. Therefore, to ensure efficiency and bring
out the best in IHRM, the organisation must analyse the culture of both the base and host country
along with an in-depth research on the cultures and traditions of all the countries that the
employees are recruited from as understanding the cultures is the path to a successful utilisation
of HRM.

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Methodology

Transtec is a hypothetical UK
based travel agency which started its business in 2005. In the last few years, it has been highly
successful and hence been able to branch out
to other parts of the world including India and
China. The recent aim is to open up a branch
in Saudi Arabia with the motto of flying
globally.

Since we believe in making travelling easy

and convenient for all our passengers we aim
to develop a multi-national and multi cultural team. Hence while setting up
in Saudi Arabia we intend to recruit and train employees from various cultures who will better
serve the needs of our customers.

Our HR team comprises of individuals from UK, China, India and finally Saudi Arabia itself.
The mission of this assignment is to compare and contrast the ethnicity of the base and host
country in order to minimize the cultural gap. Once the barrier is overcome we can better train
our employees to adapt to the
Arabian culture to ensure
efficiency and success.

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Human Resource Management

Cultural Differences according to Hofstede’s Model

When an organisation decides to operate in another country different from its base and initiate
international business, it is mandatory that the organisation understands the culture of the host
country and is knowledgeable about its culture, tradition and customs. This is to help the
organisation make the right and correct decision, operate efficiently and above all be ensure both
short and long-term success.

When analysing the cultures of various countries, organisations usually refer to different kinds of
model. One of the major models that are quite well renowned is of Geert Hofstede.

According to Hofstede, “Culture is more often a source of conflict than of synergy and cultural
differences are a nuisance at its best and often a form of disaster” (Geert Hofstede iTim, 2009).
In his study, Hofstede focused on understanding the cultural values, traditions, beliefs and even
customs of individuals at their workplace and how it affects them. His in-depth study of cultures,
has led to the development and identification of five major dimensions that help oraganisions to
understand and differentiate the two countries and their culture.

The five dimensions are- Power Distance Index (PDI), Indivudualism (IDV), Masculinity
(MAS), Uncertainty Avoidance Index (UAI) and Long-Term Orientation. Based on these five
dimensions, Geert Hofstede scored around 56 countries. In the table below, the scores of United
Kingdom and Saudi Arabia are shown to help in contrasting and analysing both the cultures
(Geert Hofstede iTim, 2009).

Country PDI IDV MAS UAI LTO

United 35 89 66 35 25
Kingdom
Saudi Arabia 80 38 53 68

(Table from Geert Hoftsede iTim, 2009)

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Human Resource Management

The above chart can also be illustrated in the form of a graph which is shown below. Once
individual graphs are plotted out, a graph to compare the numbers can also be drawn as done
below.

90
80
80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
PDI IDV MAS UAI LTO PDI IDV MAS UAI LTO

(Geert Hofstede iTim, 2009)

From both the table and charts, the culture of both United Kingdom and Saudi Arabia can be
easily analysed and evaluated based on Hofstede Model.

The power distance index of United Kingdom is extremely low compared to Saudi Arabia. The
low power distance index of United Kingdom (35) shows that the culture in Great Britain
emphasises more on the importance of equality and opportunity. The employees and managers in
various businesses tend to treat each other more as equals regardless of their hierarchical
positions. The employees are more comfortable, assertive and have the level of freedom to
evaluate the decisions being made by the higher officials. Hence, the relationship between the
managers and employees tend to be more challenging and the managers tend to follow a more
democratic and consultative management style (InternationalBusinessCentre.org, 2008 & Geert
Hofstede iTim, 2009)

On the other hand, the power distance index of Saudi Arabia is fairly high (80) which indicate
that within the society and culture the inequality of wealth and power exists. In Saudi Arabia, a
caste system is followed since inequality of both power and wealth is growing over the years.
The relationship between the employer and employee tends to be less endearing. Employees tend

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Human Resource Management

to be highly intimidated and afraid of their senior managers and officials. The bosses tend to be
paternalistic and highly autocratic, which occurs due to the existence of power and hierarchical
positions within the organisation (InternationalBusinessCentre.org, 2007 & Geert Hofstede iTim,
2009).

Following the power distance index, we have to compare the level of individualism in both
United Kingdom and Saudi Arabia. It can be seen that individualism in United Kingdom (89) is
far greater than in Saudi Arabia (38). This mean that in United Kingdom, due to the high levels
of competition individuals is more concerned with their well-being and progress and focus more
on their rights. In the business environment, they tend to be more cut-throat and self-centered
and tend to be in constant seek of personal benefits. In simple term, they are highly career
orientated (InternationalBusinessCentre.org, 2008 &Geert Hofstede iTim, 2009)

Saudi Arabia is a culture bending towards collectivism where people tend to be more family
orientated. They usually tend to take the responsibility of their family and its members and focus
and give priority to their relationships and fulfill their respective duties with full commitment
and loyalty (InternationalBusinessCentre.org, 2007 &Geert Hofstede iTim, 2009).

According to Hofstede’s model on culture, in terms of masculinity, United Kingdom has a score
of 66 and Saudi Arabia has a score of 53. This simply points out that both Saudi Arabia and
United Kingdome are male-dominated countries where men dominate a significant portion of the
society and have most power. In cultures where the masculine index is high individuals tend to
value money, prestige, reputation, fame, promotions and the drive to perform and do something
big more than support and cooperation, relationships
(personal as well as business), security and proper
home. The female sex is also undermined in these
societies and is not given as much importance and
priority as the men resulting in severe gender
discrimination. When in reality, gender discrimination
should not exist and both the males and females
should be treated equally. This is one major similarity that exists between both United Kingdom
and Saudi Arabia (InternationalBusinessCentre.org, 2007-2008 & Geert Hofstede iTim, 2009).

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Human Resource Management

The uncertainty avoidance score for both United Kingdom and Saudi Arabia is 35 and 68
respectively.

The score of Saudi Arabia reflects that level of tolerance in the society is comparatively low.
They are not willing to face threats and risks and also willing to expect the unexpected. To avoid
any kind of unexpected situation they tend to believe in abiding and following strict rules,
regulations, and policies, laws and various security measures to make life easier and less risky.
Due to the elimination of risks and threats, the employees’ jobs are highly secured and
employees tend to stay for a longer period of time with their respective employers. Due to this
high uncertainty avoidance characteristic, the society does not readily adapt to changes and is
very reluctant towards taking risks (InternationalBusinessCentre.org, 2007 & Geert Hofstede
iTim, 2009).

United Kingdom has a more outgoing culture. The uncertainty avoidance index is extremely low.
The culture is more tolerant and they are willing to face unknown situations and feel less
threatened by them. As a result, United Kingdom is more open to innovations and risk for which
it is still one of the largest developed countries in the world (InternationalBusinessCentre.org,
2008 &Geert Hofstede iTim, 2009).

People tend to be extremely practical, thoughtful and logical rather than emotional in comparison
to the people in Saudi Arabia. This means they are far stronger and have the strength to face the
worse (InternationalBusinessCentre.org, 2008 &Geert Hofstede iTim, 2009).

Finally, the score of the final dimension long-term orientation according to Hofstede for United
Kingdom is 25. The score for Saudi Arabia has yet not been settled because this score has only
been given to 23 countries only. The score represents that United Kingdom focuses more on
short-term orientation rather than long-term orientation. This mean the people in United
Kingdom have a sense of security and stability, protection for one’s reputation, respect for
tradition, fulfilling social obligations. A long-term orientation would probably be referred to
Saudi Arabia since it is characterized by persistence and perseverance, respect for the hierarchy
of the status of relationships, thrift and the sense of shame (InternationalBusinessCentre.org,
2007-2008 &Geert Hofstede iTim, 2009).

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Human Resource Management

The Hofstede model clearly indicates the major

differences between the two different cultures
and how the business and social environment of
both differs from each other. Since our
organisation is planning to set up in Saudi Arabia
it is important we understand the culture of the
country as it differs majorly from our base
country, United Kingdom and hence while
setting up we incorporate the norms of Saudi
Arabia into our organisation.

Benefits and Features of Cross-Cultural Team

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Human Resource Management

It is a competitive reality that today’s global businesses cross both borders and culture. As a
result, people from all sorts of ethnic, educational, and socioeconomic backgrounds form the new
generation workforce. This combination of skills and
talents promotes new ways of thinking and executing.
Accordingly, the corporate culture is shifting, evolving,
and improving. In tune with the time firms grip with the
underlying attitudes, beliefs, and expectations of its
personnel and provide the thought leadership needed to
ascertain success in the new age. A diversified
workforce brings many commercial advantages. For example, we find that middle-aged people
are effective in call centre roles, because their experience enables them to handle difficult
situations and provide mentoring for younger employees (GlobalSpec, 2009)

A diversified work force has many benefits within an organisation. To begin with, the final
results of such a work force are always better. This is because employees are more sensitive to
each others emotionsand feelings as they come from different backgrounds. Thus, the sensitivity
causes employee morale to increase and also decreases employee turnover. Another advantage of
this issue is that interpersonal conflicts between employees decrease because since they are from
different cultures and respect each others
feeling. It can also be said that the
creativity as well as productivity of
individuals increases. This is due to the
fact that everybody wants to prove
something to the management and prove
that they are better than the rest with the
hope of positioning him or herself in a
respectable position within the
organisation. As from the management’s
point of view a diversified work force is
also beneficial as the recruitment process
becomes easier. Since the barriers of

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Human Resource Management

employment are removed they can hire an employee befitting the job description and from any
cultural or social background. It is mostly seen that international businesses follow this new
culture of a diversified workforce and this has proved to be beneficial for the organisation as
their customer relations increases. This is due to the fact that a diverse work force can better
meet the requirements and needs of the customers coming for business with the organisation
from various cultures. This also increases the firm’s brand identity. Thus, it is clear that a diverse
work force has its benefits. A failure to outweigh the advantages over the minor disadvantages
which can be the issue of sensitivity and respect for the member from a different culture can lead
to a disaster. If the disadvantage can be overcome the corporate culture within the organisation
can be improved thus leading to a productive work force and greater returns (Innovation Zen,
2006).

As for Saudi Arabia a diversified workforce is still a new concept. Until the December of 2005 it
was an epic tale, after that the King Fahad successfully entered into the club of World Trade
Organisation (WTO) which opened many new opportunities for his kingdom. Ever since the
culture of a diversified workforce grew in Saudi Arabia and many new multinational
organisations are setting up their
businesses as well as many qualified Saudi
nationals are also recruited in other
parts of the world. Still a very conservative
point of view is seen in the Saudi
organisational culture. Since businesses
usually were only limited in the family
now a diversified work force is creating a
cultural gap between generations. Although
they are open minded to changes and welcome anything new that will flourish their business.

Customs and Traditions of Saudi Arabia

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Human Resource Management

Since Transtec has decided to set up in Saudi Arabia, it is important for us to understand their
traditions and customs.

Saudi Arabia is the home to all the Muslims since this is the country where the religion
originated from. Hence, the fact that Islam will have an influence on the business life in Saudi
Arabia is quite obvious. The Saudi Arabians believe that whatever happens has been willed by
God whether it is good or bad for the business. In this part of the world, religion has a greater
priority than business since meetings and other important aspects of business are postponed or
overlooked for the daily or Friday prayers, Hajj and as well as religious festivals like Eid.

One major factor that needs to be understood regarding the business traditions of Saudi Arabia is
that they are highly family orientated. The main reasons behind this are because family bonds,
relationship, loyalty and respect is preached in Islam and it has been learnt earlier that Islam
plays a pivotal role in the business. Hence, as a multinational company our expert HR team has
to understand why the relatives of our existing
employees are being recommended to us. However,
even though family is given importance in business,
the hierarchy is still maintained as the oldest members
of the family are made the head of the organisations.

Earlier in the Hofstede model, it was concluded that

that Saudi Arabia is a male-dominated country. Hence
in business, women are not valued as highly as men no matter how qualified they maybe. They
are given less importance and when female migrant workers tend to work there they have to
dress and behave according to their customs. If they fail to do so they are frequently subjected to
blatant abuse, such as non-payment of wages, forced confinement, rape and physical violence (T
& C, 2009). In simpler terms, the glass ceiling effect highly exists in Saudi Arabia where women
are restricted from advancing in the business world and achieving the equal rights similar to its
male counterpart.

Since we are planning to initiate our business in Saudi Arabia, it is important for us to understand
the importance of compensational benefits and collaborative bargaining in this part of the region.
Compensational benefits simply refer to the additional benefits such as retirement plans, health
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Human Resource Management

life insurance, vacation, wage programs that are given to the employees for excelling in their
work and motivation. This varies from one organisation to another based on their operations and
process. In Saudi Arabia, local company Saudi Aramco offers highly competitive compensation
and benefit packages such as retirement, savings and insurance plans, educational assistance,
annual vacation, specified local allowance amongst emany others (Aramco Sercvices Company,
2006). Whereas, multinational companies like Intel, doing their business in Saudi Arabia, are
providing compensations such as commission, base pay, bonuses, stock grants, medical and
insurance benefits and even educational benefits. These compensational benefits are extremely
important for an organisations success because via these you can connect with your employees
and attract new ones while encouraging the existing ones to work harder (Intel Corporation,
2009).

Collaborative bargaining in Saudi Arabia does not exist at all. This means that in Saudi Arabia
there are no Trade Unions that do not give workers the right to organise, bargain collectively or
go on strike. The wages are still fixed and determined by the employers based on the type of
work they are involved in as well as the nationality they belong to. Even in big multinational
companies, Saudi and Western employees are paid at least 30 to 50 per cent more than workers
from other parts of the world (ITUC-CSI-IGB, 2007).

Other traditions and customs include their mannerism and behavior while doing business which
will be further discussed when we try and understand their business culture and etiquette.

From what has been discussed so far, it can be understood that when setting up our business in
Saudi Arabia, we need to adapt and implement the multi-domestic strategy rather than the global
strategy. Global strategy basically refers to treating the entire world as a whole and applying the
same strategy all over regardless of the socio-cultural differences whereas multi-domestic
strategy is implementing a strategy that is mire responding towards the local needs, values and
demands (InternationalBusinessCentre, 2009).

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Human Resource Management

Since Saudi Arabia is a country which is

influenced highly by both religion and
family, we cannot follow the global strategy
since it will not be in sync with the traditions
and customs of Saudi Arabia. Hence, in order
to ensure success and profit we need to blend
in with their traditions and customs and apply
the multi-domestic strategy and do business
accordingly. Take KFC, McDonalds, Pizza Hut and other multinational eating outlets for
example. Since Saudi Arabia is a Muslim country, the meat that they use for their products is
completely Halal as it is mandatory for all Muslims to have Halal meat rather than Haram meat
which they may use in other parts of the world that is not follow Islam on a large scale.

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Human Resource Management

Business Culture and Etiquette of Saudi Arabia

It is essential for Transtec doing business in the Kingdom to understand Saudi business culture
and etiquette and the personal manner in which they conduct their business. Some basic
knowledge of Saudi business culture and respect towards Saudi customs can result in the
difference between a successful business deal and a failed negotiation for them.

Saudi Arabian business culture revolves mainly around the ethnocentric attitude where managers
tend to believe that the best work
approaches and practices are those of the
home country. On the other hand United
Kingdom the headquarters of Transtec tends
to be both ethnocentric and geocentric in
nature whereby they also focus on using the
best approaches and people around the
globe. Many other business cultures tend to
be polycentric whereby they believe that the
best work approaches and practices are of the foreign country (Robbins & Coulter, 2005).

Business development and operations are usually carried out around family units with most
employees coming from within the extended family. However within the family-based structure,
organizations follow tall hierarchical structure rather than flat structure with the majority of the
power being held at the top by the senior, usually older family members, as age plays a
significant role in the Saudi Arabian culture (SaudiBusinessCulture, 2008). There exists a
distinct dichotomy between subordinates and managers within organisations. Those with most
authority are permitted to issue complete and specific directives to others.

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Human Resource Management

Establishing trust is an essential part of Saudi

business culture; therefore cultivating solid
business relationships before entering into
business dealings is the key to success. Saudi
businesses are unlikely to finalize any serious
negotiation without face-to-face meeting.
Proper attire in the form of conservative
business suits is essential at business meetings,
as it is a sign of respect (Communicaid Ltd, 2007). Business cards are generally distributed
during official meetings or gatherings which are usually printed in English on one side and
Arabic on the other. Saudi Arabians tend to think that time is not an issue therefore the concept
of time for them is very different from many other western cultures and are generally regarded
unpunctual compared to British standards. Meetings are conducted at a leisurely pace, cordial
discussion is enjoyed over coffee and tea as Arabs like to feel comfortable with their business
partners before agreements or contracts are signed (Communicaid Ltd, 2007). Saudi business
executives are also prone to welcoming visitors and outside phone calls during meetings; thus a
lack of privacy is evident in personal appointments. Confidentiality increases when it comes to
finalizing an agreement.

Saudi Arabians follow rather ritualized ways of greeting one another as it is an intricate part of
their custom. They traditionally greet one- another by As-salam alaikum,” (peace be upon you)
to which the reply is “Wa alaikum as-salam,” (and upon you be peace). When entering a meeting
full of people, it is necessary to greet each person individually with a handshake. Hand gestures
are carefully used and the right hand is always used when doing anything in public to practice
proper business etiquette (SaudiBusinessCulture, 2009).

Saudi Arabia is regarded as a very high context culture. In essence communication heavily
depends upon body language, eye contact and other non verbal communicative cues rather than
just words. When engaged in conversation, Saudis tend to stand much closer to one another
compared to other cultures thus reducing physical proximity (Communicaid Ltd, 2007). Their
conversational distance is similar to that of Latin Americans and Southern Europeans. In order to
emphasize or establish a point as well as to attract attention Arabs tend to employ body contact

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Human Resource Management

and a drawback may be interpreted as a rejection of what is being said (World Business Culture,
2008).

Women face challenges in doing business in Saudi Arabia. Women are expected to dress
conservatively, with long skirts, sleeves at elbow length or longer, and necklines that are
unrevealing. It is generally uncommon and regarded disrespectful for a man to shake hands with
a woman or engage in the conversational body contact while doing business (World Business
Culture, 2008).

Saudi Arabian business culture is highly influenced by the religion Islam. As a result, it is often
described as detail orientated, whereby emphasis is placed on ethics and expected social
behaviour such as generosity, respect and solidarity.

Cross-Cultural Communication Barriers

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Human Resource Management

In the case of Transtec where members are from United Kingdom-the base country, Saudi Arabia
-the host nation and from China and India respectively, lack of communication is inevitable.
Lack of communication within members is not solely due to lack of spoken dialogue rather it
relates to access to information.

For example, not giving feedback (negative or positive), informing members of decisions and
actions that will affect their roles or failure to properly communicate expectations are all ways in
which information can be withheld from members. This will eventually result in an alienated
environment for certain members of the group. If group leaders are too selective in providing
information, this can cause suspicion and jealousy among members and will eventually result in
internal strife instead of cohesion.

Lack of communication in all forms is unhealthy as effective communication acts as an essential

driver for conducting business. An effective group must be aware of how, what and to whom
they are communicating.

Language Barrier: The differences in language can be a vital aspect that teams may have to
consider while dealing with cultural diversity. The inappropriate use of words or emotions
concealed behind phrases can send messages that may have an effect on member’s self-
perception, confidence and attitude. Supportive language helps to build interpersonal
relationships and boost self-confidence whereas critical language and tones has the opposite
effect (Kwintessential, 2009). For a cross cultural group to be successful it is necessary to
establish a common base language be that English/French/Chinese by which all the members of
the group will communicate. The group should ensure that all its members are fully
conversational in the main language and language tuitions should be seen as a necessity rather
than an experience.

Stereotyping: Stereotyping causes us to exemplify a person or a group on oversimplified

conceptions, beliefs or opinions. Stereotyping is a major barrier to effective communication as it
may prevent us from thinking, analyzing and keeping an open mindness to a new situation
(Kwintessential, 2009). For example if in Transtec, a member takes for granted that he/she
already knows about the culture of other group members and is proved to be wrong, then it
maybe catastrophic. In this way one would eliminate the possible areas of learning about the new

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Human Resource Management

cultures and possibly dismiss the chances of reducing the differences that are present in
diversified culture resulting in complete ineffective communication.

Time and space: Time refers to the amount of punctuality that is being maintained. Where in the
UK people tend to be very punctual in assigned jobs and responsibilities it is a common practice
for people in the Middle East to be a little laid back. It is a normal tendency for people in Saudi
Arabia and India to arrive late during a meeting whereas late arrival during meeting or any event
can be seen as a great offense for the British people. People in the Middle East also believe doing
extended meetings before reaching their verdict whereas in UK it is the complete opposite
(Kwintessential, 2009).

People in Saudi Arabia and India tend to get really personal while carrying out any assigned
responsibilities with others. Based on their personal relationship they tend to do business but on
the other hand British people are always very formal and completely impersonal. While dealing
with Middle East people it should not be surprising if questions about family and personal lives
are brought forward but in UK such gestures can be considered to be very offensive as they only
believe in maintaining formal relational ship in their jobs.

The differences in views about time and space among these two cultures can be a crucial fact
while working together. Maintaining a positive attitude towards these differences and gaining
knowledge and experience by keeping an open mind are absolutely necessary if these barriers are
to be avoided in cultural diversity such as in the case of Transtec.

Modes of communication: People in UK and Middle East have a complete different conception
about the modes that are chosen for communication. In the UK verbal communication is much
more emphasized whereas non-verbal communication such facial expression, gestures and
postures are given more importance in Saudi Arabia and India (Kwintessential, 2009). While
working together in groups these diversified cultures should consider the differences present
among their chosen modes of communication in order to avoid misinterpretation.

Expatriates and Training Methods

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Human Resource Management

The reality of today's global marketplace requires companies to relocate staff to foreign locations
in order to establish and nurture a business presence abroad for a variety of reasons. The inability
to adapt, spouse dissatisfaction, quality of life and poor job
performance are some of the major reasons why expatriate
relocation assignments fail and so training of expatriates is
absolutely mandatory when it comes to dealing with cross-
cultural diversity. Cultural training aids the employee better
approach and deal with the relocation, reducing the negative
consequences of culture gap.

Cross-cultural training, in addition, helps the expatriate understand the culture of the target
destination and provides them with coping strategies to support them when feeling vulnerable.
Although the content of a cross cultural training course will vary from person to person and
differ according to the host nation, it will benefit all the participants by highlighting the cross
cultural differences that they will face in their new office and/or lifestyle. The methods followed
for successful expatriate training can be in the form of seminars, in-house training, presentations,
workshops etc. Experts should be appointed for carrying out successful training courses where
they should provide guidance in cross-cultural awareness, management techniques, time
management, interpersonal and communication skills (Kwintessential, 2009).

While dealing with the cultural diversity of Transtec, expatriate training should revolve around
giving knowledge about the both the base and host nation which in this case is United Kingdom
and Saudi Arabia respectively. This is done, so that employees have thorough idea of the origin
of the company as well as the county they will be working in.

After completing the expatriates training course in Transtec members should be able to gain
knowledge about the cultures of UK and Saudi Arabia which includes
history, politics, economy, demographics, etiquettes/manners, and
customs. It will also help members gain additional knowledge about
entertainment, management structure, space and time about both these
countries.

Conclusion
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Human Resource Management

According to the analysis done in this assignment the HR Team of Transtec needs to focus on the
customs and traditions of Saudi Arabia while initiating its business there. It is evident from this
assignment that by achieving a cultural balance between both the Arabian and British culture, the
company would be able to operate effectively using its maximum potential to achieve success.
Since Transtec comprises of a multi-cultural workforce, it is essential for their employees to
adapt to the culture and lifestyle of Saudi Arabia in both social and business settings.

Upon Transtec effectively building a new diversified workforce that has suited itself with the
unique high content culture and blends in with the corporate culture of the organization, it can
successfully begin its operations with reduced cultural barriers and work towards achieving its
main aim of expansion and profit maximization.

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Bibliography

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 Communicaid Ltd, Doing Business in Saudi Arabia, viewed on 24 July 2009,
<http://www.communicaid.com/cross-cultural-training/culture-for-business-and-
management/doing-business-in/Saudi-arabian-business-and-social-culture.php>
 World Business Culture, Doing Business in Saudi Arabia, viewed on 24 July 2009,
<http://www.worldbusinessculture.com/Business-in-Saudi-Arabia.html>
 Aramco Services Company, Compensation and Benefits, viewed on 28 July 2009,
<http://www.jobsataramco.com/Home/CompaBen.aspx>
 Intel Corporation, Jobs at Intel: Saudi Arabia, viewed on 28 July 2009,
<http://www.intel.com/jobs/saudiarabia/bencomp/>
 ITUC-CSI-IGB, Annual Survey of Violations of Trade Union Rights: Saudi Arabia, viewed on
21 July 2009, < http://survey07.ituc-csi.org/getcountry.php?IDCountry=SAU&IDLang=EN>

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Human Resource Management

 Kwintesseial, Cultural Awareness Training, viewed on 20 July 2009,

<http://www.kwintessential.co.uk/cross-cultural/cross-cultural-courses.html>
 Kwintesseial, Cultural Awareness Training, viewed on 20 July 2009,
<http://www.kwintessential.co.uk/cross-cultural/living-working-uk.html>
 Kwintesseial, Cultural Awareness Training, viewed on 20 July 2009,
<http://www.kwintessential.co.uk/cross-cultural/middle-east-training.html>

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