Post on 30-Apr-2023
ASPECTS OF DIVERSITY THAT INFLUENCE INTERNATIONAL CONSTRUCTION PROJECTS IN MOZAMBIQUE
by
IZELLE VAN DERMER WE
Short-dissertation submitted in partial fulfilment of the requirements for the degree
MAGISTER INGENERIAE
m
ENGINEERING MANAGEMENT
in the
FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT
at the
UNIVERSITY OF JOHANNESBURG
SUPERVISOR: PROF. JAN-HARM PRETORIUS
December 2009
""'--------------~~~~-~--------.. ~ ... ~~--~--~~--------~-· . ·-·---
EXECUTIVE SUMMARY
This study explores cultural diversity and effective cultural management strategies in
international construction projects. From the literature review it is clear that the management
of culture is of global concern, and still to be thoroughly researched.
Culture varies from between regions, countries and also between ethnic groups within one
nation. It is therefore understandable that management strategies in one part of the world will
not be applicable, or as effective, in another part of the word.
Studies done on effective management strategies are country or region specific. It is for this
reason that the researcher focuses on South African managed construction projects in
Mozambique.
Effective management strategies pertaining to relevant cultural factors were identified during
the findings. However, the cultural knowledge, awareness, sensitivity and respect that would
be expected from international managers are mostly noticeably absent.
There is a wide scope for further studies in this regard. To identify cultural factors in other
countries, related effective management strategies and training on how to bridge cultural
differences for management teams.
11
ACKNOWLEDGEMENTS
This research has benefitted greatly from the participants, who generously gave their time and
shared their experiences to bring the research matter to life.
I am very grateful to Prof. J-H Pretorius for his extended patience and guidance I also wish to
extent a special thank you to Dr. Didi Thwale for his input and introduction to participants.
Lastly but not the least, I wish to thank my family and friend: Prof Pieter, Catherine, my
brother Etienne and Wajahat for supporting me through this journey.
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TABLE OF CONTENT
CONTENT ..................................................................................... PAGE
EXECUTIVE SUMMARY ..................................................................... ii
ACKNOWLEDGEMENTS .................................................................... .iii
TABLE OF CONTENT ........................................................................ .iv
LIST OF FIGURES ................................................................................ vii
LIST OF TABLES ............................................................................. viii
CHAPTER 1: Background to the Study
1.1 Introduction ....................................................................................................... 1
1.2 Research Questions and Objectives ................................................................... 2
1.3 Literature Review .............................................................................................. 3
1.4 Importance and Benefits of the Study ............................................................... 4
1.5 Research Methodology ...................................................................................... 4
1.5.1 Data Collection ..................................................................... 5
1.5.2 Data Analysis ...................................................................... 5
1.6 Nature and Form of Findings ............................................................................ 6
1. 7 Outline of the Study and Relevance to Research Questions ............................. 6
1.8 Summary ............................................................................................................ 7
CHAPTER 2: International Project Perspectives
2.1 Introduction ....................................................................................................... 8
2.2 Project Management .......................................................................................... 9
2.3 Background on Multicultural Construction Project Teams ............................... 9
2.4 International Construction Project as Project Management System (PMS) .... 11
2.4.1 The Individual and Interpersonal Perspective ................................................. 12
2.4.2 The Environmental Perspective ....................................................................... 13
2.4.3 The Project Organisation Perspective ............................................................. 15
2.5 The Role of Training in Contributing to International Project Success .......... 16
2.6 Summary .......................................................................................................... 17
IV
CHAPTER 3: Cultural Factors and their Influence on International Construction
Project Management
3.1
3.2
3.3
3.4
3.5
3.5.1
3.5.2
3.5.3
3.6
3.7
Introduction ..................................................................................................... 18
Defining Culture .............................................................................................. 19
Four Dimensions ofNational Culture ............................................................. 19
Interpersonal and Intergroup Relationships ..................................................... 20
International Project Perspectives ................................................................... 21
The Individual and Interpersonal Perspective ............................... 22
The Environmental Perspective ................................................ 30
The Organisational Perspective ................................................ 38
Culture Shock and its Influences ..................................................................... 42
Summary .......................................................................................................... 43
CHAPTER 4: Bridging Cultural Barriers and Management Styles
4.1 Introduction ..................................................................................................... 44
4.2 Bridging Cultural Barriers ............................................................................... 44
4.2.1 Cultural Awareness ............................................................... 45
4.2.2 Cultural Sensitivity ............................................................... 45
4.2.3 Acknowledgement of Differences ............................................. .45
4.2.4 Show Respect. .................................................................... 46
4.2.5 Distinguishing Culture from Personality ...................................... 46
4.2.6 Identifying and Avoiding Stereotypes ......................................... 47
4.3 Management Styles ......................................................................................... 48
4.3.1 Ethnocentrism ..................................................................... 48
4.3.2 Cultural Synergy .................................................................. 49
4.3.3 Polycentrism ...................................................................... 49
4.4 Summary .......................................................................................................... 49
CHAPTER 5: Research Findings and Key Observations
5.1 Introduction ..................................................................................................... 51
5.2 Project Profiles ................................................................................................ 52
v
5.3 Emerging Themes of Cultural Factors ............................................................ 52
5.3.1 The Individual and Interpersonal Perspective ................................ 53
5.3.2
5.3.3
5.4
5.5
5.5.1
5.5.2
5.6
The Environmental Perspective ................................................ 56
The Project Organization Perspective ......................................... 60
Influence of Cultural Factors on Project Performance .................................... 62
Effectiveness of Cross-Cultural Project Management .................................... 62
Management Strategies Employed to Overcome Cultural Barriers ....... 63
Effectiveness of Management Strategies ...................................... 63
Key Observations and Summary ..................................................................... 64
CHAPTER 6: Conclusions
6.1 Introduction ..................................................................................................... 65
6.2 Conclusions on Research Questions ................................................................ 65
6.3 Recommendations ........................................................................................... 69
6.4 Concluding Remarks ....................................................................................... 70
REFERENCES .......................................................................................................... 71
APPENDIX A: INTERVIEW DATA COLLECTION ......................................... 74
Vl
LIST OF FIGURES
Figure 2.1
Figure 3.1
International Construction Project Perspectives ............................ 12
Cultural Factors in International Construction Projects .................... 21
Vll
LIST OF TABLES
Table 5.1
Table 5.2
Table 5.3
Table 5.4
Table 5.5
Table 5.6
Table 6.1
Table 6.2
Table 6.3
Project Profiles ..................................................................... 52
Emerging Cultural Factors with Regards to the Internal Perspective ....... 53
Emerging Cultural Factors with Regards to the Environment. .............. 56
Emerging Cultural Factors with Regards to the Organizational
Perspective .......................................................................... 60
Main Contributors of Cultural Factors on Project Outcomes ................ 62
Key Cultural Factors that Influence Construction Projects
in Mozambique ..................................................................... 64
Emerged Cultural factors in International Construction Projects
in Mozambique .................................................................... 66
Main Contributors of Cultural factors on Project Outcomes ................ 67
Effective Management Strategies of Cultural Factors ........................ 68
V111
CHAPTER I
Background to the Study
1.1 Introduction
The increasing global nature of construction projects has highlighted the importance of
multiculturalism and the new challenges it brings to international project management. Even
though these projects vary in their deliverables, they have one thing in common; they all have to
deal with overcoming cultural differences to get the project completed in the desired time, cost
and quality.
In spite of the growing interest in cultural diversity management, project management as such is
far behind other fields in incorporating cultural perspectives. [8]
According to Dadfar and Gustavsson [6], the application of diversity management for
international construction management has not yet been examined. This is supported by Chan
and Tse [9], who add that, as one of the major issues affecting the management of international
construction projects, culture deserves wider research.
Ochieng and Price [ 19] adds that, there has, as yet, been no empirical work that quantifies
explicitly the extent to which cultural factors determine the success or failure of these projects,
and how relevant cultural factors should be managed.
Pheng and Yuquan [10] claim that any company that wants to carry out or manage a
construction project successfully in another country should understand the culture of the host
country clearly.
The management of these projects should be knowledgeable, or at least aware, of the different
cultural aspects in order to anticipate possible problems that could arise. In anticipating the
differences in advance, and by applying appropriate management strategies, project problems in
terms of cultural aspects, could be identified and dealt with appropriately.
1
Thus according to Artto et al. [referenced in 6], the need for project managers to be able to
manage in a dynamic and flexible manner to accommodate internal, environmental, and other
factors particular to a project to ensure successful project outcomes, has been stressed.
This study is aimed at understanding cultural diversity and the impact that cultural factors have
on international construction projects.
Culture is unique to a country or nationality. Cultural factors that influence international
projects in one country will differ from factors in another. The cultural factors that influence
international construction projects will therefore vary, depending on who the participants are.
For the same reason, management techniques or strategies applied in one region of the world
will not necessarily be effective in other parts of the world.
Studies have been conducted, and have been documented in articles and post-graduate reports.
These are country specific, and deals with cultural dilemmas in areas like Australasia, Samoa,
Middle East and Europe. At present the researcher has found no recorded research that have
done in Southern Africa.
For this reason, on conclusion of the literature review, the study will focus on the specific
cultural interface between South African managed construction projects in Mozambique.
1.2 Research Questions and Objectives
This investigation involves a study of cultural diversity factors and the impact they have on the
management of international construction projects.
Given the above, it seems reasonable to ask the management question;
"Which cultural factors influence the management of international construction projects?"
The research objective is to identify the cultural factors that have an influence on international
construction projects, and the influence that these factors have on the outcomes of projects, in
terms of cost, time and quality.
In addition, this investigation will address the issue of the knowledge and skills of the
management team, the support they receive, and whether or not management processes are in
place.
2
In order to answer the management question, this research examines the following five sub
research questions.
1. Which cultural factors are likely to be present in South African managed international
construction projects in Mozambique?
2. Which of the above cultural factors impact on the outcomes of project performance, in
terms of time, cost, and quality and client satisfaction?
3. Do South African companies have effective management strategies in place to overcome
the barriers caused by these cultural factors?
4. In what ways can companies improve the effective management of cultural factors in
international construction projects?
5. Are employees empowered with knowledge, skills, and supported by their organisation
to effectively manage these barriers?
1.3 Literature Review
In spite of the growing interest in diversity management, project management is far behind other
fields in incorporating cultural perspectives. Most cultural diversity management literature
refers to organisation, with little literature available in the management of relatively short term
multi-national construction projects. According to Tone [1], the application of diversity
management for international construction management has not yet been examined. Therefore, a
framework for the study of the effective management of culturally diversified groups in
construction projects, still has to be developed
From the literature it is evident that related studies have been undertaken in other parts of the
world, which are region or country specific. In addition, these studies also distinguish between
the origin of the client, the management team, the workforce, and the host country
The literature study undertaken includes;
• IdentifYing and defining an international construction project as a system with
perspectives on cultural factors.
3
The literature reviewed on this aspect presents a framework for the remainder of this study
• IdentifYing and defining issues of human and national culture.
The rationale for this part of the literature study is to understand national culture and how
cultural factors differ from one nationality to another. This part also explores the effect it may
have on management.
• Manager's skills for bridging cultural diversity
For managers to overcome or effectively manage diversity, knowledge, understanding and
sensitivity are required. This part of the literature study explores different leadership styles and
skills required for international managers.
1.4 Importance and Benefits of the Study
Due to the demand for international construction projects involving multicultural project teams,
there is a growing trend towards discussing cross-cultural complexity more openly within the
construction industry. This has been influenced by clients in both the developing and developed
countries, who are demanding improved people management.
Managers could benefit through programs, awareness, knowledge and understanding of
cultures; to improve the management of people. Sonnenschein [3] states "Cultural literacy is
not just attractive and considered necessary - it is a global business requisite. "
In reviewing literature, it emerges that there is a clear need for research and knowledge in the
management of cultural factors in international construction projects.
Given the uniqueness of culture, this study presents an insight to the experiences of South
African project managers working in Mozambique.
1.5 Research Methodology
Since the nature of the study is exploratory, a case study approach was adopted. The researcher
focuses on the internal, external and other organisational factors. In this regard, the project is
viewed as a project management system. This approach seems to be appropriate, since the
4
management of cultural diversity in construction projects appears to be insufficiently researched
and affect projects from different perspectives.
1.5.1 Data Collection
Four qualitative in-depth interviews were conducted with managers from different projects
completed after 2000.
All the respondents were professionals with tertiary education (at least a diploma) and had
varying site experience. More important was that these managers were involved with the day to
day management of the project. This allowed the researcher to focus in-depth on the experiences
of each participant.
During the interviews, the participants were asked a number of open-ended questions. Written
records were taken throughout the interviews. It was required at times to probe the participants
into a specific direction, and to elaborate on points that were unclear to participants. All
attempts were made to allow the participant to freely express their perceptions and experiences.
Information on the respondents, projects, cultural diversity factors and the effectiveness of
current project management strategies pertaining to the cultural factors were obtained.
The most important data were the emerging themes in cultural factors that influence project
performance and the effectiveness of the management strategies used to overcome the emerged
cultural factors.
Anonymity of participants will be protected.
1.5.2 Data Analysis
As mentioned above, the information gathered was exploratory and the written records were
analysed personally by the researcher. There seem to be no clear-cut rule concerning the
analysis of qualitative data. No other scientific approaches were used with the analysis of the
data.
During the analysis, patterns and recurring phenomena or themes were looked for, rather than
narrow, precise variables of qualitative research. The data sheet used during the interview
process is presented in Appendix A.
5
1.6 Nature and Form of Findings
This research aims at giving an insightful analysis of international construction project
management, with a focus on diversity management and reference to construction projects in
Mozambique.
The findings are presented in a narrative form supported by evidence from the statements
recorded during the interview phase with theoretical references as required.
Application of a qualitative approach will help ensure that the findings have the form of a well
structured description from which readers could identify similarities and differences with their
own situations and hence selectively draw lessons. From the findings of the proposed research,
shortcomings will be shown and recommendations made as to how South African companies
could more effectively manage diversity in international construction projects.
The findings that emerge are referenced to the management and research questions in order to
show that the management and research questions have been addressed.
1. 7 Outline of the Study and Relevance to Research Questions
The chapters in this study are structured so that each chapter could be read and understood
autonomously. They are presented sequentially as in integral part of the whole study with
relevant referencing and interlinking information to other chapter where applicable. Definitions,
clarification of key terms, and management strategies are dealt with throughout the chapters as
they become relevant.
Chapter 2: International Construction Project Perspectives
This chapter lays the foundation for the structure of the other chapters. It categorises the further
literature studies and findings into perspectives of international construction projects.
Chapter 3: Cultural Factors and their Influence on International Construction Project
Management
Chapter 3 provides the foundation for addressing research questions 1 and 2. The chapter is a
literature review of national and cultural factors, their relevance, and influence on management
6
of international projects. This chapter highlights the diversity of cultures and emphasizes the
importance of knowledge of the cultural factors.
Chapter 4: Bridging Cultural Barriers and Management Styles
Chapter 4 presents a background to address research questions 4 and 5. The literature reviewed
in Chapter 4, presents managers with knowledge of different management styles and the impact
of their own perceptions, interpretations, and insight to their own personal attitudes towards
cultural differences. The aim of this chapter is to illustrate how cultural barriers could be
overcome by knowledge and awareness, which are the basic skills required to manage
international projects.
Chapter 5: Research Findings and Key Observations
This chapter presents the findings relevant to research questions 1 to 5. Chapter 5 furthermore
presents the findings of the qualitative data in a narrative form with reference to the literature
studies where applicable.
Chapter 6: Conclusions
This chapter presents the conclusions drawn from the study in regard to the 5 research
questions. It also highlights implications that were identified during the study and suggestions
for further research.
1.8 Summary
The introduction draws from related global construction industry issues, the importance and
justification for this study and establishing thereby the background to the management question.
The chapter then focuses on the context of the study by stating the objectives and research
questions. The research methodology and related literature studies undertaken to answer the
research questions are described. The researcher is of the opinion that the study could contribute
towards a better understanding of cultural factors and effective management strategies in
Southern Africa.
7
CHAPTER2
International Project Perspectives
2.1 Introduction
Sources of literature and reports on practices with respect to the identification of risks
emanating from cultural differences in international construction projects are growing. This risk,
which is referred to as 'cultural risk' by Jallad [12], is rarely adequately addressed on a formal
basis nor seriously investigated, priced or contractually provided for as part of the overall
evaluation at the developmental stage of a project. It is regularly realised after its impact is felt,
but usually too late. Unless provided for, cultural risk has a direct but concealed impact on the
performance obligation of the Construction Company and manifests in a detrimental effect on
the coat and time frame of the project.
Jallad [12] reported that a large number of projects suffered significant delays, cost overruns,
and serious threats of abandonment or termination due to mismanaged cultural risks.
According to Makilouko [13], theories, models and practices have developed over the years on
how to lead an international organisation successfully, but this knowledge is not applicable to
international project management. International projects have to be managed, dealing also with
multicultural issues on a much wider and deeper (at the 'roots') level.
International projects take place in intercultural settings. Kealy et al [20] expressed the view that
because of the intercultural nature of international projects, international projects are subject to
greater obstacles to success. They fail more often than similar domestic projects, even when the
domestic projects are executed with a multicultural workforce.
It has been identified in the literature that international projects have three broad elements that
contribute to success or failure: the interpersonal relations between workers and the
management team; the organisational structure of the project; and the environment of the
8
project. Findings in the literature on the success or failure of international projects almost
always highlight issues from one or more of the abovementioned broad groupings of factors.
2.2 Project Management
Project Management has been researched extensively during the past twenty years. It has also
developed considerably with greater understanding of the key variables that could lead to
project success, according to Oschieng and Price [19]. Reported research illustrates that
effective project performance is achieved when a whole project team is fully integrated and
aligned with project objectives. During the period of development, changes have been made in
the way that many major construction engineering projects are delivered.
As a result of globalisation many companies are venturing outside of their national boundaries
and become involved in international projects. It is noted by Howes and Tah [referenced in 1],
that the need for sustainable economic activity and growth acts as a driving force for companies
to procure construction work internationally in order to stay competitive and to maintain
turnover and profitability. The result is that many project management contractors are now
working on projects in other parts of the world.
2.3 Background on Multicultural Construction Project Teams
The formation of international construction project teams necessitates the consideration of
diversity and related challenges according to Oschieng and Price [19]. It is essential for
organisations to educate and support their project managers to appreciate the international
context, thereby developing the ability to understand everyday issues from different cultural
perspectives.
According to Bartlett and Goshal [referenced in 6] the main challenge facing organisations
intending to work internationally is the introduction of practices in multicultural flexibility and
the building of global learning capability. Cultural sensitivity must be developed in
organisations as well as the ability to manage and build future capabilities if they are to achieve
success in international projects.
It seems that in comparison to sectors such as IT, manufacturing and aerospace, the construction
industry has not sufficiently taken the cultural complexity and its influences on team dynamics
into account. The understanding of the behavioural dynamics of multicultural project teams in
9
construction is still in its infancy. A movement to the establishment of universally accepted
overall performance implications, establishment of conditions in terms of project teams from
different cultures, with different perspectives and styles, are deemed necessary (Oschieng and
Price (19]). Literature on cultural diversity emphasises team members' demographical
background and other factors relevant to their cultural characteristics, values and discernments.
Multicultural teams cannot refer to a pre-existing identity because of their short lived individual
project-based life cycle which, according to Mosakowski [referenced in 6], differs from
homogenous or monoculture teams. There is a need to develop a team culture of straightforward
rules, performance expectations and individual perceptions. The positive effect and trust
generated in a perceived shared understanding could contribute to performance enhancement
and team effectiveness. However individuals in multicultural project teams have different
perceptions of environment, motives and behaviour intentions.
Elron [referenced in 19] asserts that the management of cultural differences and cross-cultural
conflicts is a common challenge to multicultural teams. There has however been limited
research on "people issues" regarding multicultural teams reported in construction management
literature. The management of people in construction is receiving more attention as a topic
within the construction industry as Dainty et al., and Eagan [referenced in 19] point out. Dainty
et al., [referenced in 19] express the opinion that the industry needs to address its poor
performance in people management by focussing on cultural issues, while Shenkar and Zeira
[referenced in 19] state that cultural issues among team individuals could cause conflict,
misunderstanding and poor performance. Pearson and Nelson [referenced in 19] identify the
following five most distinctive challenges that managers face:
• developing team cohesiveness;
• maintaining communication richness;
• dealing with coordination and control issues;
• handling geographical distances and dispersion of teams;
• and managing cultural diversity, differences and conflicts.
10
Because of the different distinct perceptions of construction project managers from different
countries on environmental opportunities and threats they are likely to translate and respond
differently to the same strategic issues or team tasks.
A further argument by Kealy et al [20] is that employees of different nationalities possess
significantly different work habits and values. It is thus essential that an understanding of
cultural diversity and the means of managing it are developed, since that will provide and
support the ability of meeting the challenge. Although there is ample data on how to lead an
international organisation, the data are not always pertinent to international construction project
management.
2.4 International Construction Project as Project Management System (PMS)
A construction project is a complex entity that could be conceived as a socio-technical system
consisting of both social and technical sub-systems. Accordingly, a system approach has to be
adopted to manage the complexity. Harrison [referenced in 6] mentions that 'people problems'
are much more difficult to solve than technical problems in the short lifespan of a project. For
this reason, we need to focus here on the 'people' /social/cultural aspects of the Project
Management System (PMS).
People that interact directly within a construction Project Management System (PMS), whether
domestic or international, are: the operator or the user, the owner, the consultants, the prime
contractor, the subcontractors, the local partner, and, in some cases, the observer. When an
international construction project is undertaken, several different cultures meet, interact, and are
mixed at different levels. An international construction project is therefore the product of
several organisational cultures.
According to Dadfar and Gustavsson [6] cultural factors appear at three levels in a PMS. These
levels will hereafter be referred to as perspectives.
(1) The Individual or Interpersonal Perspective; as internal forces when it concerns the
project personnel and work groups.
(2) The Environmental Perspective; as external forces when it concerns adaptation to the
cultural environment of the host country, local labour laws, political, legal systems, etc.
11
(3) The Project Organisation Perspective; as organisational culture when it concerns the
PMS relationship with the headquarters and as a product of the construction firm.
All of the major areas influence the success or failure of international construction projects. The
perspectives, as illustrated by the researcher in Figure 2.1, will be discussed in the sections that
follow.
Individual or lnterp ersonal Perspective
E nviro nmen tal Perspective
Project 0 rganis atio n Perspective
Figur~ 2.1 Int~nl ational C onstJ·uction Project P~l'Sll ~ctiveos
2.4.1 The Individual and Interpersonal Perspective
Kealy et al [20] report that the success of international constructional projects is often attributed
to individual managers and workers, as well as to the interpersonal relations between people of
different cultures in a project. This perspective essentially requires:
• that all workers, expatriates as well as local workers, must have strong cross-cultural skills
and sensitivity, including the ability to adapt, communicate, socialise, consult, network,
and manage in a multi-cultural group;
• that expatriate managers must have a solid understanding of the particular culture m
which they will be living and work, including its social norms, history, political and socio
economic realities;
• that harmonious interpersonal relations between individuals and work groups within
international projects contribute greatly to their success.
12
Effective relationships exist when managers and workers help each other to achieve their
common objectives, give high priority to each others' goals, trust and rely on each other, and are
confident that their work relationships will result in better outcomes. This requires individuals
with highly developed cross-cultural skills who have the ability, the willingness and the patience
to build personal relationships. Authors, such as Kealy et al [20], acknowledge the existence and
importance of other factors, but emphasise that cross-cultural skills of expatriates and good
interpersonal relations may generally be the most important contributors to the success or failure
of international projects.
Dadfar and Gustavsson [6] state that at a work group level, project management and
performance are influenced by culture in areas such as arranging work groups, evoking pride in
workers, improving productivity, avoiding conflicts, and changing working traditions. Based on
case studies in the Middle East, Hong Kong and Thailand, 70% of site managers believed that
managers/supervisors are less effective when managing a work group composed of several
nationalities. This is because language was regarded as a major obstacle to effective
communication among workers of different nationalities. Furthermore, since the workers are
usually less educated, there tends to be a bias for their traditions, religion, etc. This attitude
often leads to a conflict within a work group. In order to minimise this type of conflict, an
attempt was made to build culturally homogeneous work groups consisting of only one
nationality.
Strategic choices for organisations at the individual/interpersonal level, proposed by Kealy et
al [20], include:
• that there is a core level of cross-cultural skills and knowledge needed by all international
workers, as well as some specialised management and interpersonal skills (e.g.
negotiation, team-working) needed by some workers at various stages of a project;
• that building personal relationships between managers at all levels is required to overcome
many obstacles to project success.
2.4.2 The Environmental Perspective
The main elements of the project environment that have been identified by Kealy et al [20] as
being most relevant to the success or failure of international construction projects are:
13
• the acceptance/rejection by the general public (with its general culture) of the host country
to the purposes of the project;
• the general health of the economy of the host country and the international economy and
other economic realities such as skilled local employees and materials;
• the regulatory environment of the host country, including such matters as import
restrictions, labour laws, bureaucracies and workforce;
• the health, effectiveness, and friendliness of organisations on which the project depends
for its success, including suppliers, government services, regulatory agencies;
• the political and social climate of the host country, including the degree of political and
social stability, the extent of problematic local practices such as corruption, sexism, and
nepotism, and the complexity and friendliness of the stakeholder community with an
interest in the project;
• the ability of the project to manage the environment pro-actively, by obtaining buy-in or
acceptance from stakeholders (i.e. government), before and after project implementation.
Each of these realities will affect some international construction projects more than others.
Most projects will face some constraints from some of these cultural, socio-economic, and
political conditions.
Dadfar and Gustavsson [6] are in agreement that social environmental problems are most likely
to be caused by cultural differences, such as language, religious inconsistency, differences in
traditions, and so on. Although these factors are beyond the control of companies, they could be
managed and are comparatively predictable and measurable by adequate statistics.
Strategic choices for organisations at the environmental level, proposed by Kealy et al [20],
include:
• that certain environmental conditions (e.g. lack of political and key stakeholder support)
may have such a destructive effect on international projects that it is probably better not to
proceed with the project if they are not addressed decisively at the outset;
• that cultural distance is not an insurmountable barrier to the success of international
construction projects, but that the groundwork must be laid very carefully, taking one's
time if necessary, in awareness of the challenges cultural distance pose;
• that there are many techniques of environmental management that could help international
construction projects succeed (e.g. building a local network and community involvement).
14
2.4.3 The Project Organisation Perspective
Dadfar and Gustavsson [6] point out that an international construction project has its own
organisational culture as a result of the cultural diversity encountered. This organisational
culture will most likely differ from that of the headquarters. The cultural diversity also impacts
on the performance of the project. Failure to manage the cultural diversity soundly may lead to
frequent changes of the project management teams, which, in tum, could substantially delay
completion of the project and incur substantially higher costs than were originally planned.
International construction companies are aware of the problem. They often choose a flexible
organisation to ease effective communication between the project management teams and
headquarters. For example, they have a foreign division with many regional managers, selected
from previous projects and who are aware ofthe situations in the host countries.
Kealy et al [20] contend that aspects of the organisation of the project itself include the
appropriateness and clarity of its goals and management structure and the quantity and quality
of the financial, material, and other resources invested in it by the sponsoring organisations. The
most commonly mentioned organisational factors are:
• the initial selection of partner organisations, which IS particularly relevant to joint
ventures and subcontractors;
• the realism, clarity and compatibility of the strategic objectives and operational goals of
the project. Problems often arise after goals have been agreed on formally. Partners
interpret goals differently in practice, sometimes after there have been changes of
personnel, sometimes as a result of conflicts, lack of understanding by some parties (such
as subcontractors), and culturally or individually based different interpretations of goals;
• the commitment, motivation, and on-going guidance of headquarters throughout the
project's life-cycle (as opposed to the commitment and motivation of on-site staff, which
is considered to be part of the individual/interpersonal factor);
• the on-going material support given to the project, including funding, supplies and
logistics, coordination, and access to technology and skills.
Commitment of senior management in the sponsoring organisations is crucial, and indeed
successful projects generally enjoy a "project champion ... [who] helps project managers
achieve the project objectives ... [and] assures access to resources" [20].
15
Strategic choices for organisations at the organisational level, proposed by Kealy et al [20],
include:
• that some organisational factors, in particular clarity and mutual buy-in of project
objectives, appropriate and well-defined management structures, and the commitment and
material support of the headquarters of all parent organisations must be in place;
• that the phasing (ofthe stages) of projects is important, meaning that certain tasks must be
accomplished before it is sensible to attempt others and that some skill-sets may be more
useful at one stage than at another;
• that means should be found of achieving as early as possible, and in a manner consistent
with management's intentions, informal working "understandings" between managers and
workers on the precise interpretation of project goals, roles and responsibilities,
governance mechanisms, and even some technical matters.
2.5 The Role of Training in Contributing to International Project Success
Authors, such as Makilouko [13] and Kealy et al [20] are in agreement that leaders should be
trained and coached to develop their skills to manage projects effectively.
Kealy et al [20] also point out that training of individuals with respect to cross-cultural aspects
has been generally effective in equipping personnel with most of the knowledge and skills
needed to live and work successfully in another cultural environment.
Training or preparation for international work should furthermore emphasise the development
of interpersonal and cross-cultural skills, some attitudes, and the knowledge base of individuals,
especially expatriates. For example: personal traits like tolerance and openness, interpersonal
skills such as communicating and listening, and knowledge of the host country. Cross-cultural
training programs for international work should simultaneously prepare trainees for dealing with
the organisational and environmental issues that will affect the success of the project.
The special challenges facing the planning and implementation of international projects will
need to be better understood and methods developed to select and train personnel to manage
them more effectively.
The author and Wood et al [ 16] are in agreement that education is required to bridge the gap that
presently exists between Western-type management and African-type management, as well as
16
the quality of African skills and workmanship vs. Western expectations. The implementation of
training programmes on both sides of the spectrum will assist in improving the future
performance of foreign led projects undertaken on the African continent.
2.6 Summary
Although individual authors may emphasise different factors, it is clear from the overall "sense
of the literature" that the three factor groupings, i.e. the individual/interpersonal, the
environmental, and the organisational, are highly important and probably critical in determining
the success or failure of international construction projects.
Managers should adopt an attitude of modesty, tolerance and continuous learning toward the
needs of their international project and have to avoid applying preconceived notions from that
which worked at home with respect to interpersonal relationships, organisational decisions, and
environmental analysis.
The literature review revealed the importance of all three areas and highlighted some particular
strategic choices for organisations.
Training for managers and stakeholders in international projects with a view to improving the
prospects for success in all of the three major areas that affect success is required.
17
CHAPTER3
Cultural Factors and their Influence on
International Construction Project Management
3.1 Introduction
In order for international projects to be successful, the project managers must take cultural
factors of traditions, values, customs, and beliefs into consideration at the project planning
stage. It is imperative that construction companies ensure that their management representatives
are aware from the outset of a spectrum of cultural differences, and are able and willing to
employ their personal as well as their technical skills in such matters. Such skills and personal
traits will assist in the collective management of the project.
Chan and Tse [9] point out that trans-global collaboration calls for greater cultural
understanding and sensitivity in terms of personnel management by the parties concerned.
Human problems are involved, such as language, communication, and the understanding of
cultural differences.
In international construction projects, any party involved must be cross-culturally competent.
Construction professionals involved with international projects should at least be able to
recognise the expectations and behaviours of others. Cultural issues are expected to contribute
to conflicts among parties to an international project and increase difficulties in the management
of the project.
Kivrak, Ross and Arslan [8] recorded the growing interest in the studies on the culture of the
construction industry, projects, and the effects of culture and cultural differences on
international construction projects.
To study the cultural influence on societies, one needs dimensions for analysing the behaviours,
the actions and the values of their members. This chapter will briefly examine one of the most
widely quoted frameworks- Hofstede's cross-cultural dimensions- as explained by Pheng and
18
Yuquan [10]. The chapter continues to discuss individual cultural factors and their influences, in
terms of the international construction project perspectives, as described in Chapter 2. The
researcher emphasises that the cultural factors discussed in this chapter are by no means all
inclusive due to the scope ofthe study.
3.2 Defining Culture
Definitions differ greatly and are dependent on the theoretical perspective of those who offer
them. In the management literature, according to Chan and Tse [9], Hofstede defines culture as
the "collective programming of the mind which distinguishes the members of one human group
from others". Culture, in this sense, includes systems of values, and values are the building
blocks of culture.
In the context of construction management regarding culture, Loosemore and Muslmani [18]
states that "it is now acceptable that a culture of a society is its shared values, understandings,
assumptions and goals learned from earlier generations. It results in common attitudes, codes of
conduct and expectations that guide behaviour."
There are many more definitions that vary around the same context. In this study, we discuss
problems related to culture as the word is understood in general.
3.3 Four Dimensions of National Culture
According to Makilouko [13], many studies have been done to develop cultural models.
Hofstede is probably the most mentioned in the literature with his ground breaking work in the
1980s.
Hofstede, as reported by Pheng and Yuquan [10], argues that people carry "mental programs"
that are developed and reinforced through their experiences, and that these "mental programs"
contain components of national culture that could also extend to working culture and he
concludes that these mental programs denote existence of four underlying value dimensions.
The four dimensions are;
• Power distance, i.e. the extent of power inequality among members of an organisational
society;
19
• Uncertainty avoidance, i.e. the extent to which members of an organisational society feel
threatened by and try to avoid future uncertainty or ambiguous situations;
• Individualism and collectivism, which describes the relationship between the individual and
the collectivity that is reflected in the way people live together; and
• Masculinity and femininity, i.e. the extent of roles division between sexes on which people
in a society put different emphasis on work goals and assertiveness as opposed to personal
goals and nurturance.
These four dimensions are based on four fundamental issues in human societies within which
every society has to find its particular answers. According to Hofstede, they represent the basic
elements of common structure in the cultural systems of the communities in countries. Thus,
they provide an important framework not only for analysing national culture, but also for
considering the effects of cultural differences on management and organisation. Hoecklin [as
referred to in 10] maintains that this framework is especially useful for understanding people's
conceptions of an organisation, as well as the mechanisms that are considered appropriate in
controlling and coordinating the activities within it, and the roles and relations of its members
(Hoecklin, 1996).
The literature on Hofstede's studies is extensive. The purpose of this study is however not to
describe or define a specific national culture.
3.4 Interpersonal and Intergroup Relationships
When people are placed in a new environment, or group, that is regarded as different, they are
likely to show aggression and experience frustration. It is suggested by Triandis [ 4] that dealing
with this requires a change in attitude.
The study of the relationships and the psychologies thereof, are outside of the scope of this
study, but the central message of all the references is that supervisors should be sensitive to their
subordinates' needs and points of view and to encourage a change of attitude from all
participants within the new groups.
The researcher makes use of a literature study on the vanous cultural factors that could
influence international construction projects to support the construct of the dissertation. Some
factors will be discussed from a managerial point of view, while others come from
20
recommendations from other case studies, or from a psychological point of view to define or
clarify the factor.
3.5 International Project Perspectives
The cultural factors that influence international construction projects have been grouped by the
researcher into three perspectives based on the principle described by Kwak [14]. The
perspectives have been developed from the information given in Chapter 2. They cover issues of
political, legal, cultural, technical, managerial, economical, environmental and social nature, as
well as corruption, etc. These factors are further described with a view to understand their
nature from the perspective of project managers who are required to manage international
projects. The three perspectives were defined in Chapter 2, and are illustrated by the author in
Fig 3.1:
Individual or Interpersonal Perspective
International Construction. ects asaP agement
(PMS)
Environmental Perspective
c.~u.l.tu.ral ·· .. Factors ·· .. ,,;;,tt]k
'-~' ' -
Project Organisation Perspective
C;;;ul.tu.ral . ·. Factors '
.,"' ·' ' ,~,- '
FigurE> 3.1 Cultural F 11ctor s iu lutE'I'IHttiou al Coustructiou Proj E'C ts
21
3.5.1 The Individual and Interpersonal Perspective
Few people are completely aware of how their actions and the ways they think are dictated by
hidden or unconscious values. Examples are: patterns of interpersonal relationships, attitudes
towards authority, approaches to carrying out a task, concern for efficiency, communication
patterns, work and learning styles [14].
International managers need to really understanding these matters as this will determine the
success or failure of projects. (Refer to Chapter 2).
Work habits and work ethics
In a broad sense cultural values and attitudes related to work could be subdivided into the
following, of which some were briefly mentioned under Hofstede's four dimensions of culture
in Section 3.2.
Individualism and Collectivism
These two concepts used by Monir Tayeb [5], refer to the nature of relationships between
individuals and the group or groups to which they belong. In an individualist culture, their
loyalty is first and foremost to themselves and their own interests, above those of the group. In a
collective culture, the group takes precedence over the individual members' interests, and is the
centre of their loyalty.
Attitude to Power
Societies differ from one another in the extent and the ways in which power and authority are
distributed among the people [5]. In some cultures, inequality is more tolerated than others. The
extent to which power is distributed among people, equally or unequally, is reflected in any
superior-subordinate relationship, such as manager-employee. In societies with small power
differences, both sides of the relationships exert a certain amount of power and influence over
the other. In societies with large power gaps, it is the superior who exerts more power.
Attitude to Achievement
McClelland [referenced in 6] argues that people's need for achievement in industrialised
societies tends to be higher compared to the less economically advanced nations. He also
22
implies that individualistic nations have a higher need for achievement compared to collective
ones.
The difference between individualistic and collective societies may lie in the way in which
people view achievement and ambition. In the former, the individual strives for his or her own
achievement in life; in the latter, the achievement of the group is what matters.
Attitudes to Conflict and Harmony
Cultures develop different ways of handling conflict. In some cultures, especially in
individualistic ones, conflict is seen as healthy, it reflects that every individual has the right to
express their views, even if it contradicts their superiors or other members of the group [ 5]. In
other cultures, social harmony takes precedence over an individual's right to speak out.
Tolerance of Ambiguity and Uncertainty
Tayeb [5] contends that cultures are different from one another in the extent to which they could
tolerate ambiguity and the means they employ to cope with it. In a culture with relative low
tolerance for uncertainty, structured organisations and a preference for rules and regulations
would be favoured. The latter creates a less ambiguous environment.
It deserves mention here that the factors that follow also have an influence on a work culture,
but could also be seen as factors in the broader sense of a national culture. It is attempted to
include the impact that these factors have from a managerial point of view.
Arranging work groups
In international projects, work groups are formed from predominantly local groups of one
nationality, or in some cases, especially the Middle East, from more than one nationality.
The intergroup relationship of the work-groups could lead to conflicts on the work site. These
problems most often result in wastage of valuable resources and delays in completion of the
project.
Hossein and Gustavsson [as referred to in 6] carried out a detailed case study on six
international construction projects during 1986. They recommended the following strategies
with regards to work groups:
23
• Build culturally homogeneous work groups consisting of only one nationality - that is, one
group, one nationality. If the workforce consists of more than one nationality, various
culturally homogeneous work groups based on different nationalities to work parallel with
each other was found to have positive effects on project performance. This creates healthy
competition (rivalry) among the groups.
• Work groups from one nationality seem to be less productive in their own country than
abroad. Absenteeism, lack of pride in their work and a decline in productivity are often
found as a result of any competitive group of another nationality.
• When culturally mixed work groups are unavoidable, attempts should be made to find
common elements of the different cultures. Emphasis should be placed on the common and
shared elements, while differences should be minimized. This could be done by making the
members of the groups aware of each others' culture in order to avoid cultural conflict.
Education and skills development
Formal education, especially in the societies where there is a well-developed educational
system, contributes to the formation of culture. This is done through the development of the
value system and the priorities on which it is based, such as resourcefulness, sacrifice of present
interests for future ambitions, discipline and self-control [5].
The lack of a skilled workforce in many undeveloped countries leads to the use of unskilled
workers on projects. This presents a significant challenge to the successful meeting of project
objectives. In many cases skilled workers have to be sourced from other countries. An effective
way of improving the skills of the main workforce - both for craftsmen and managers, is via job
specific training. However, this might not be possible in the short-term of the project [16]. From
a long-term perspective, possible alternatives include: private and government funded training
workshops; increased skill based training through the government schooling system, as well as
programs led by the World Bank or other organisations.
An important factor is that management principles and skill training not only be available to the
short-term workers, but taught in such a way that these "students" could then become trainers
themselves. This cycle of education is vital, in order to increase the level of skills of the
workforce for the future.
24
Potential for Conflict
Conflict often occurs when people hold different ideologies (religion and/or political views) or
belong to different racial or cultural groups [ 4]. According to Sonnenschein [3] conflict is
inevitable, and could be positive or negative. The potential for conflict in a diverse setting is
greater than in a homogeneous one. It could lead to dysfunctional work teams, drop-offs in
production and distrust. Sonnenschein [3] however also adds that conflict based on culture could
be healthy, as long as it is managed well. Management could use conflict to motivate those in
conflict to learn what their differences are and use them to create better working relationships,
or better solutions to problems.
Project leaders must understand and learn how to prevent conflict that is destructive. Resolving
conflict to facilitate people working together, and manage conflict for the benefit of the entire
project should be a priority.
Chan [referred to in 10] maintains that the cause of disputes is closely related to the culture of a
society and that the different methods for resolving disputes are also social phenomena closely
associated with a society's unique culture. In the context of international projects, the view of
Chan [9] is that dispute resolution processes are becoming international and unrestricted by
frontier, legal system, or national culture. A detailed study on dispute resolution processes was
done by that author.
Attitude towards Time and Punctuality
Attitudes towards time and punctuality are culturally diverse. Western cultures are said to be
mono-chronic and other cultures, for example Arabic, as poly-chronic. Mono-chronic cultures
differ from poly-chronic cultures in that the former encourages a highly structured, time-ordered
approach to life and the latter, a more flexible, indirect approach based more upon personal
relationships than scheduled commitments [ 18]. In poly-chronic cultures it is common for
business issues to be delayed in order to establish or reaffirm sound personal relationships.
Furthermore, directness and haste in the tackling of contentious issues is interpreted as
inconsiderate and confrontational and to be avoided whenever possible. Almaney and Alwan
[referenced in 18] have observed the frustrations that could arise between people of mono
chronic and poly-chronic cultures, particularly in negotiations and pressure situations.
25
Punctuality is associated with productivity and reliability, and being on time varies according to
the situation and relationship. It is generally thought that to be late for work, late for an
appointment, or late with a deadline is to be lazy, sloppy, and, certainly rude. In cultures that
value punctuality it is acceptable to feel offended at having been kept waiting or anxious at
having been delayed [7].
The challenge for western managers in this regard is that many other cultures of the world have
a much more casual attitude towards precise timekeeping. In other cultures, it is not considered
a sign of lack of interest or rudeness to keep someone waiting for an appointment. The clock is
simply not important.
In order to motivate behaviour change for workers who are chronically late for work,
appointments, meetings, or deadlines, managers need to understand why a worker is behaving in
a particular way. By recognising that chronic lateness might be based not on laziness, nor lack
of commitment, but in culturally rooted misunderstandings about the expectations of
management, managers could design effective strategies for remedying the situation.
Respect for Authority, Responsibility and Power
According to Loosemore and Mushmani [18], the greater acceptance of power by certain
cultures, for example Middle Eastern, may create tensions during negotiations with Western
cultural nationals, where the former are unlikely to permit participation in decision-making and
expect decisions to be accepted rather than challenged. The opposite would be expected by a
western national, who would be accustomed to a relatively low-power distance and
confrontational culture.
Susan Vonslid [15] points out that the delegation of authority, responsibility and power is
central to any organisation. Since multicultural projects involve building up a new project
organisation from parties of diverse cultural backgrounds, the ways and to what extent
authority, responsibility and power will be delegated and documented are perhaps the most
critical decisions. Establishing a hierarchy and lines of communication and control which are
not accepted by project partners could have serious impact on the motivation of project staff.
For example: imposing flat and wide hierarchies and delegation of authority common in
Southern European cultures will only confuse Latin employees, who expect a higher
hierarchical structure.
26
Loyalty to a Company
Thiederman [7] contends that Western cultures have a preoccupation with horizontal and
vertical mobility and speed for constant progress. They strive for the top positions in
organisations and in life. This differs to a large extent from the perspective of the Chinese, who
recognizes the benefit of putting down roots and staying in one home, company, and occupation
for a long time. They are not always anxious to seek a promotion or move to another firm.
It is the researcher's opinion that these attitudes could also be linked to the individual vs.
collective dimension, where the progress of the individual vs. the group is highlighted.
Creativity and innovation
Creativity is a universal human trait, but some cultures consider creativity inappropriate in the
workplace. Some cultures feel that once a task is learned, changing the way in which it is
performed is inappropriate and unwise. For this reason, it could sometimes take considerable
persuasion to re-educate workers who have become accustomed to doing a procedure in a
particular way [7].
The researcher expresses the view that those managers and workers from cultures that frown
upon, or do not encourage creativity, will find adjusting to a new cultural setting difficult,
especially where the cultures are very dissimilar. Personnel selected to manage diversity should
embrace creativity to find new and suitable solutions to management styles and other cultural
problems that arise from working in international projects.
Safety Practices
Both the content and causes of a poor safety culture have been the focus of numerous research
projects such as that by Van Vuuren [11]. Safety practices form part of risk management and
occupational safety management and could be influenced by the safety culture of the different
countries involved. Turner et al. [referenced in 11], characterise safety culture as the set of
beliefs, norms, attitudes, roles, social and technical practices that are concerned with minimising
the exposure of employees, managers, customers, and members of the public to conditions
considered dangerous. A 'good' safety culture could be characterised by the existence of norms
and rules for handling hazards, the prevailing attitude towards safety, and the projects and host
countries reflexivity on safety practices.
27
Van Vuuren concluded that cultural factors related to safety attitude of the people, are important
considerations. The author imparts that frequently, enormous risks were deliberately taken to
gain a few minutes. The use of personal protection equipment, e.g. helmets, gloves, safety
glasses, was often not taken seriously and considered to be an unnecessary burden. In the study,
persons were aware that safety precautions, norms and rules for dealing with risks were
violated. However, performing the job this way had become accepted by the employees, and
unfortunately, in many cases by the team leaders. This study also covers the collective beliefs
about risks, and why the importance of following the safety rules, are often ignored. Efforts to
improve the system's safety performance should focus on improving the attitudes of employees
and management alike.
Motivation and Productivity
One popular theory about human motivation is that of Maslow, which holds that people are
driven by certain needs in a specific hierarchical order [2]. Once a need is satisfied, the
individual aspires to the needs of the next hierarchical level. The hierarchy is as follows:
• Physiological needs (clothing, food and shelter)
• Safety needs
• Social needs
• Esteem needs
• Self-actualisation needs
Even though Maslow's theory is internationally recognised, it is not always appropriate because
people are driven by different needs, depending on their culture.
Thiederman [7] claims that in some cultures, workers might value and strive for more money,
whereas another is much more responsive to the prospect of increased authority or time off.
Cultural diversity in the workplace makes the development of effective motivation strategies
even more complex. Something that motivates a worker from one cultural or even ethnic group
might be meaningless to another. As Bacon [referenced in 7] realises, motivation is nothing
more than an effort to assess the individuals' needs and to match those to the company and its
goal.
28
The researcher suggests that in undertaking an international project in an African country such
as Mozambique by a South African concern, the differences in needs between Mozambican
workers, workers of other surrounding countries and the so called "Western-type workers"
should be recognised. With extreme high levels of poverty and low-skilled workers, the needs of
that workforce are quite different from certain South Africans (as representative of the "Western
workers") working alongside them. Thus these differing needs should be realised and catered
for as part of management strategy and structure.
Resistance to Change
It is also mentioned by Thiederman [7] that any human being will resist being changed by
someone else. Such resistance could be especially strong among foreign and ethnic workers.
Before managers could effectively use any motivational techniques, they must understand the
reasons for this resistance and learn how to overcome it. Much reluctance to change arises from
the worker's mistaken impression that the manager is trying to change his or her basic values
and culture. Although the manager is concerned only with modifying one specific bit of
behaviour, the worker might assume that he/she is interested in nullifying their entire culture.
It is the opinion of the researcher that showing respect and to be culturally aware and sensitive,
with clear organisational goals, as might be negotiated, is required by managers. Some of these
very important issues will be further discussed in Chapter 4.
Attitude and Behaviour
Triandis [4] expresses the view that similar attitudes help us adjust to our environment, by
providing a certain amount of predictability, and by making it easier to get along with people
who have similar attitudes. Triandis [ 4] also claims that there is a relationship between attitude
and behaviour. Attitudes involve what people think about, feel about, and how they would like
to behave. Behaviour is not only determined by what people would like to do but also by what
they think they should do, like social norms, habits, and by the expected consequences of the
behaviour. The experiences of people determine their attitudes. Behaviour often changes
attitudes, as people develop attitudes that justify their previous behaviour. Behaviour is the
result not only of attitude but also of norms, habits, and expectations. Dadoo et.al [2] adds that
an attitude also carries a command regarding how people ought to behave in society.
29
3.5.2 The Environmental Perspective
The cultural factors identified under this perspective could almost be seen,as 'external' factors.
The management team have little or no influence on these factors. However, effective
management strategies could be developed if these factors are researched and taken into account
at the planning phases of projects.
Communication and Language
Communication is viewed as a professional practice where suitable tools and regulations could
be applied in order to communicate information and data, and is a social process of interaction
between individuals [19]. Loosemore and Muslmani [18] claim that in an increasingly
international construction market, communication problems will emerge as one of the most
significant challenges facing construction project managers. Dadoo et al., [2] add that the whole
communication system, verbal and nonverbal, separates one group from another. Verbal
communication refers to language under which we find variations of, for example, accent, style
and dialect. There is also nonverbal language that differs from one place (location) to the next.
Verbal Communication
Beliefs, values and needs of a society are reflected in its language. The vocabulary and style of a
language tells us what is culturally important in a particular society [2]. The link between
language and culture is often very close. In the view of Sonnenschein [3] we learn our
communication styles as part of our cultural upbringing, leading to culture-specific style
differences. Many of these differences are nonverbal, as will be discussed hereafter. Other
differences include our degree of directness in talking with each other, what topics are
appropriate to speak about at work, whether we value change or tradition, emphasise group or
individual performance, and if our culture values competition or collaboration in the workplace.
Concerns by management, as raised by Thiederman [7], are that workers do not comprehend
safety instructions. Trainers are having difficulty determining if their material (learning content)
is understood and human-resource professionals are often confused about how to assess the
foreign-language-speaking applicant.
30
One of the more effective ways of showing respect for people with whom we associate, is to
communicate with them in their language of preference, not-withstanding the fact that English is
considered to be the language of international business.
Nonverbal Communication
According to Sonnenschein [3] nonverbal communication is the communication that surrounds
or replaces words. Nonverbal messages could work with verbal messages to create meaning. A
nonverbal message could accent what a word means, or complement the words to clarify or
reinforce the meaning. On the other hand, we might say certain words, yet contradict what we
are saying with our nonverbal message. Some nonverbal communication messages are universal
in that all cultures seem to communicate them in the same way. However, most of the nonverbal
messages we see, hear, smell, and feel are culture specific, which makes communication
between cultures difficult.
It is the manager's responsibility to realize that differences in nonverbal communication exist,
and not to jump to unjustified conclusions. The more we understand nonverbal communication,
the better we communicate.
History of participating cultures
The history of a nation plays a significant part in creating and shaping the values of its members
[5]. The origins of a people's culture could in part be traced to the geography and climatic
conditions of the country in which their ancestors lived, the rulers or empires that governed
them. Even recent history, like wars, contributes to the national consciousness and their cultural
identity. Ancestral and relatively recent history shape national cohesion and identity in terms of
their socio-political ideology. Other aspects are for example: respect for authority, avoidance of
uncertainty, conflict resolution, etc.
Ethnic, Tribal and Regional groupings
Dadoo et al., [2] declare that a particular culture might dominate in a certain region over all
other cultures on account of its social-economic and political superiority. Such a culture could
be regional, provincial or national, and is influenced by such diverse aspects as climate, socio
economic systems, religion, language, values and history.
31
Ethnicity, however, deals with racial matters. According to Jandt [referenced in 2], an ethnic
group refers to a group of people of the same descent and heritage who share a common and
distinctive culture passed on through generations. Ethnic identity refers to identification with
and perceived acceptance into a group with shared heritage and culture.
A few factors promoting ethnicity are;
• Group memberships which are more important among collectivistic or group cultures than
among individualistic cultures. Ethnicity would be more important among Africans, Arabs
and Asians as compared to Americans.
• Minority groups who emphasise culture more clearly than majority groups.
Ethnicity and tribal conflict could be extended to the work environment and plays an important
role in the compilation of work groups, as mentioned earlier in this chapter.
Values, Attitudes, Belief System and Religion
In the view of Thiederman [7] "values form the core of culture", from which other elements of a
culture-like etiquette, life-style and language are shaped. Values guide a society about an
understanding of how things should be in a society [2] and the way they treat other members of
a society. Values are deeply seated in the minds of people "slow to change and have the greatest
influence on conduct". Values are also ranked differently in their hierarchy in different societies.
Thiederman [7] further gives the following example that illustrates how different cultures
prioritise "important" things: An American worker places high priority on planning for the
future in terms of retirement, insurance and so forth, while this would be a low priority to his
Middle Eastern or Asian counterpart. For him/her meeting current obligations and enjoying the
present moment might be of more concern. These value differences could have an impact on the
management of diverse workers as well as the achievement of cooperation and teamwork. There
are four ways in which values could affect the workplace and behaviour of workers [7]:
• Managers cannot assess the needs and expectations of workers (employees) if they do not
understand their culturally specific values. They have to have an understanding of what will
stimulate motivation and cooperation on a project.
32
• Managers should have the ability to define problems originating from cultural differences.
An example could be of not questioning authority in one culture (e.g. Asian) versus another
culture that sees this trait as an unwillingness to learn (e.g. American).
• Values could also give managers an idea of how to solve problems. In one culture the
solution for a worker to a conflict problem might be to ask for a transfer, while his
"western" colleague could regard this solution as cowardly and evasive instead of dealing
with the problem directly.
• Some cultures have the expectation that managers would talk to them and to get to know
them in terms of family life, interests and so forth. If this does not materialise, workers are
left with impression of coldness which could influence productive and harmonious
relationships.
It is obvious that managers must have an understanding of values if they are to work effectively
culturally different workers.
A description is given by Dadoo et.al, [2] that an attitude emphasises a command about how
people ought to behave in society. It is however difficult to make a division between values and
attitudes as they do not necessarily correspond.
According to Dadoo et.al, [2] a belief is stronger than a value. Here the individual believes in a
conscious certainty that something exists, or is useful in a society. The belief that a person
becomes wiser with advancing age could be given as an example.
Although religion of a group may reflect its values and influence its beliefs and attitudes, Dadoo
et.al, [2] feel that on its own it hardly represents the full extent of peoples' behaviour. It only
gives a representation of ideals and outlines rules of conduct to give some meaning in life. It
also gives people a sense of security and belonging and enables them to find and fulfil their role
in society. An example is given that every religion encourages charity. Yet misers and exploiters
are found everywhere. Interpretation of dictates could also differ among a range of communities
adhering to a particular religion. Conservative and liberal trends could be found within each
religion.
Political Culture
In the view of Tayeb [5] the political system of a society, like its other social institutions,
creates, and is created, by the culture of that society. When the system is the outcome of a
33
historical evolutionary process, it is compatible with the local culture, and it therefore survives.
Political systems of societies vary considerably in terms of the extent to which the general
public participates in the political processes. Human resource policies and practices reflect, to a
large extent, the political culture of a country. In a democracy, employees are more likely to
have a larger say in the decisions which affect their employment than is the case in non
democratic societies. Workers have more or less rights, under different governments.
Tayeb [5] further states that the political culture of a society is also influenced by;
• The role of the state: The extent to which the state controls trade and other economic and
business activities, which varies from one country to another, with extreme cases at either
end of a capitalist-socialist continuum.
• Pressure groups: Their success also varies from one country to the next, both in terms of
their numbers and of their influence on government policies, which in turn have implications
for business organisations.
• Trade unions: Free and independent trade unions are institutions which are encouraged in
many democratic nations. In some societies the unions are puppets of the regime, and in
others they are either non-existing or repressed.
Kwak [14] adds that political factors refer to issues at the national and regional levels, and may
contribute to inconsistency in policies, laws and regulations, and political instability. From an
international projects' perspective, these factors contribute to an environment of uncertainty on
return of investment and management.
Political instability coupled with underdeveloped institutions and lack of awareness in the
people, may result in frequent change of governments or stimulate abrupt change of policies,
adversely affecting the successful achievement of project objectives. These factors include:
political takeover or military coup, war or revolution, allegations of corruption causing
government resignation, and nationalisation of assets with or without adequate compensation.
Economic, Legal and Business Systems
Economic factors in so far as they relate to this study, refer to domestic economic conditions of
the recipient country. Developing countries often function in a rather unpredictable economic
environment.
34
Legal factors refer to unexpected changes in government policies pertinent to laws and
regulations; currency conversion; absence of appropriate regulatory systems; rates and methods
of taxation including customs, royalties, convertibility of currency; and the role of local courts
in arbitration [14].
Dadoo et al., [2] claims that market-oriented economic systems dominate the world business
scene. Within these economic systems, the legal and business systems are diverse. These
economies are highly protected and regulated, dominated by bureaucracies.
The authors also contend that the economical, legal and financial systems in some countries are
still undeveloped. In China, for example, there are more than four thousand laws and four types
of lawmaking institutions. To compound the resulting complexity of conducting business, local
officials are not accountable to the public, often resulting in arbitrary decisions, leading to the
bureaucratic distrust of foreign businessmen. In some cultures, officials regard themselves
above the law. To resolve an economic dispute, for example, an official needs merely declare it
an economical crime, in order to force the other party to make concessions or give up a claim to
property.
It is clear to the researcher that inefficient regulatory and legal systems could affect the
outcomes of international projects detrimentally. South Africa has sound economic, business
and legal systems. However, in some rural areas and in other African countries, traditional
African law may still be applicable, even though it is subservient to the law of that country. In
the traditional system, matters to be resolved are presented to the local chief, who, together with
his counsellors, decides on the matters.
Traditional African economic systems are based on people working together within a
community that looks after its members. The preferred economic system for Africans would
thus appear to be based on communal economic activity. Unfortunately communal systems do
not always work in a global context.
Chan and Tse [9] believe that local laws and the interpretation of contracts, governed by local
laws, remain a concern for parties to international projects.
Corruption
In countries where the state's administrative structures have largely ceased to function or legal
action is a slow and sometime complex process, businessmen often relies on corruption to speed
35
up processes. As such, a large percentage of economic activity occurs 'under the table' [2]. In
addition, civil servants are often not paid enough to survive or are gullible, and therefore work
as independent agents because they could get away with it.
In other instances, offenses that may or may not have occurred, or seem minor to a foreigner,
are regarded in a serious light by officials of those countries, leading to corruption in a system
where laws are bypassed or not enforced.
Kwak [14] defines corruption as "the abuse of public office for private gain". Unstable
economical factors, coupled with lack of transparency and lack of regulatory institutions,
bribery and corruption are widespread in developing countries. Corruption is based on using
unlawful influence to extract additional costs to receive or give a preferential consideration,
treatment, or to speed up bureaucracy or 'red tape'. In Thailand, Mahitthirook [referenced in 14]
estimates that 10% of a project cost is lost to corruption. It is therefore essential for project
planners to be knowledgeable about these factors in host countries.
Labour Laws
Tayeb [5] proposes that legal considerations are a maJor environmental subsystem. Legal
constraints may be among the strongest environmental pressures for the structure and
procedures of an organisation. Government requirements and labour regulations effect human
resource policies and practices, including the recruitment and selection processes.
All nations regulate work to some degree. Organisations have to comply with government
requirement issues, for example, to hire locally, advertisement of positions and equal
opportunity to all potential candidates.
These laws could sometimes create confusion and difficulties, particularly for multinational
projects, because the labour laws and Employment Acts of the host country and that of the
project management team may vary considerably.
The laws regulating human resource management practices are sometimes tied in with other
government policies and programmes. In some developing countries, human resource
management must be in line with the national development plan, if that exists.
36
Failure to adapt to the prevailing laws could have serious financial and operational
repercussions. For example, the way in which projects staff their facilities with alternative
personnel during a strike to enable them to continue operations, thereby putting pressure on the
unions to settle the bargaining dispute. In some countries this is considered illegal, and projects
may be confronted with costly 'down time' if alternative responses have not been formulated or
planned for.
With reference to the above, it is the opinion of the researcher that in African countries, striking
is part of the culture and largely expected. Project management should be prepared to deal with
strikes lawfully and allow for estimated costs on 'down time' in the budgets.
In some cases, existing restrictions may sometimes be by-passed if alternative arrangements are
secured from the host countries through negotiations and proactive strategic initiatives, such as
lobbying government ministers and officials to get exemptions, especially if the skills
requirements are not met. If that can not be achieved, organizations could be expected to change
their human resource management policies and programmes to achieve compliance.
Food, Dietary habits and conventions
Dadoo et al., [2] also mention that food preference, preparation, presentation and the manner of
eating differ from one culture to the next. Americans love beef. Hindus abstain from it and are
predominantly vegetarians. Muslims and Jews do not eat pork, which is very popular among
Chinese and Germans. Eating habits also differ; some use their hands; others use chop sticks
and others use cutlery.
Often, food choice and eating habits are determined by the natural environment. In areas
enjoying abundant varieties of vegetation, herbs and plants, the incentives for having vegetarian
diets are strong, like in India. But in somewhat drier climates which support different types of
cattle, people would be predominantly meat eaters.
The abovementioned is an example of culturai diversity in food preferences in different cultures,
but what is pertinent to this study is the availability of food. Considering that the host country in
this study (Mozambique) is a very poor country, the availability of food to the main work force
has an extensive influence on projects. This will be discussed in more detail in Chapter 5.
37
Procurement of supplies and materials
According to Latham [referenced in 9], project procurement of supplies and materials is one of
the major concerns in the construction industry. Even though similar problems are noted
worldwide, less-developed or developing countries seem to be more affected by this problem.
In under-developed countries, the procurement of construction materials and items needed on a
day to day basis, are mostly simply not available, or might be sub-standard, for example, sand,
stone, cement, etc. Detailed planning and foresight is required to ensure that these items are
available when required. Procurement is not just limited to availability as the process of
importing and border crossings is as important, if not more critical.
The researcher could not find more information on this factor in the literature. It will however
be shown in Chapter 5, that procurement was one of the main factors influencing the projects
under review in this study.
Physical and other Environmental Factors
Physical factors refer to the circumstances beyond the project developer's or government's
control [14] such as natural disaster (e.g. fires, floods, drought, lightning, typhoons and
earthquakes), as well as disasters caused by human interventions, such as wars, hostilities,
military coups, civil strife, and acts of terrorism. Developing countries seem to be more prone to
the latter mentioned events. A competent international project manager should have a good
understanding and judgment of the conditions in the recipient country and mitigate these.
3.5.3 The Organisational Perspective
Managerial or organisational factors that negatively effect international projects refer to
inadequate or ineffective management of the project by project sponsors or the project
management agencies [14]. The events in managerial factors include the following:
• Inadequate communication
• Unclear objectives
• Over-optimistic goals in relation to project cost and schedule
• Lack of project sponsorship
• Unclear lines of responsibility, authority, and accountability
38
• Slow and cumbersome decision-making process
• Lack of training and preparedness of staff working in the host country.
Clients, Subcontractors and Local Partners
Reference was made in the introduction to a study by Kwak [14], who cited that international
projects managers most frequently experience difficulties relating to relationships with the
clients, local suppliers and subcontractors from different cultural backgrounds. The researcher
expresses the view, from a western cultural perspective, that these relationships are mainly
contractual and impersonal, as apposed to the relationship with the colleagues and workers on
the work site. The cultural factors mentioned in the Individual and Environmental Perspectives
are scarcely applicable within these relationships. Conflicts are therefore more contractually
based, and in most instances relate to the outcomes of the projects in terms of cost, time, quality
and client satisfaction. The ways in which cultures resolve these conflicts are more applicable
here.
In a comparative study done by Chen and Partington [17] between Chinese and Western
cultures, they concluded that the Chinese and Western project managers had different
approaches to resolving conflicts with clients or subcontractors, and expressed different
attitudes to the use of claims and penalties based on contracts.
For the Chinese project managers, negotiation appeared to be the only choice of approach to
conflict resolution. They tried to involve whoever would help- their site team, their company's
directors, and their friends. They considered claims as something extreme that would result in
loss of 'face' by all involved, which in their terms meant losing reputation. Similarly they did
not want their subcontractors to raise claims against them either. As a result, good relationships
with all involved were absolutely paramount for resolving conflicts amicably.
In contrast, the Western project managers' negotiations were more impersonal, based on
contract conditions. They considered the placing of claims on clients or contractual penalties on
subcontractors as normal project management practice that should be brought into play when
necessary, although they too preferred to have conflicts settled amicably.
39
Project Planning
Quite a number of international projects never reach optimal levels of operation, because,
according to Vonslid [15], cultural differences have amplified difficulties that may not be
present in the home country.
Plans tum out to be unrealistic, schedules are hard to meet and cost overruns are not unusual.
Perhaps part of the difficulty arises from the fact that traditional project management
techniques, developed in mono-cultural contexts, have been uncritically applied to the
international environment. Managing complexity and cultural diversity in a project format is a
major project management challenge requiring new thinking.
It is the opinion of the researcher that not enough planning was done by South African
construction companies when operating in Mozambique. From the findings, Chapter 5, it will be
shown that the lack of planning was stated as one ofthe major factors that negatively influenced
the outcomes ofthe projects.
In a study, done by Vonslid [15], a Danish company cited, with the wisdom of hindsight, that
many of the problems through-out the project, could have been foreseen and at least partially
resolved, if there had been a careful cultural analysis of the interested parties during the
planning phase.
It is the main focus of this study to illustrate the there is a need to uncover and deal with these
differences during the project planning process and to continuously take account of these
matters during project implementation.
Personnel Selection
Most people prefer secure, stable job conditions. Projects, however, are temporary in nature,
where pressure on project staff is high to reach a goal. Since risk-taking is an integral part of
project management, the way risk is perceived and managed has far-reaching consequences
[15]. In a study done by Kealey [referenced in 16], only about 20% of expatriate project
personnel perform highly effective overseas. It is important to ensure that the right people are
selected for the job. Projects run on tight schedules, cost and quality schedules without having
to take into account the prospect of ineffective employees.
40
A major international study was undertaken in 1996 by Wood et.al, [16] with the objective to
improve the effectiveness of personnel on international engineering development assignments.
The study found that screening candidates was extremely important, with the following 12
criteria seen as paramount:
• tolerance
• communication skills
• listening ability
• respect
• patience
• realistic expectations
• interest in local culture
• empathy
• cross-cultural sensitivity
• flexibility
• technical competence
• commitment
Assigning personnel not suited for international assignments could be detrimental across the
board, from the organisation to the individual, resulting in high personnel tum-over. However,
the researcher maintains, and as shown by literature [20], that by appropriate training and learnt
skills, most personnel will be able to cope in these situations far better than presently.
On-going Headquarter Support
No relevant literature elaborating on this issue and its effects could be found. It is however
identified in Chapter 2 as one of the factors that contribute to the success or failure of
international projects. The researcher recognises the importance of on-going headquarter
support, which will be shown in the findings ofthis study (Chapter 5).
Technology Factors
Technological factors, as defined by Kwak [14], refer to the use of technology, including
design, engineering, procurement, materials, construction, equipment installation, and operation
of the equipment on completion of the project objectives.
41
International projects in the developing countries, experience problems. They lack adequate
resources, technical and managerial skills, and have low human capital productivity. Therefore,
project design standards, specifications, and construction methods must be carefully selected so
that they will be appropriate to the local financial, human, and material resources required
during both the implementation phase of the project and its subsequent operation.
The researcher wishes to expand on the above to include the day to day technological
requirement that more developed counties are accustomed too. This will include the ease of
communication (telephonically and electronically), access to banks and money in the form of
cash, and also medical facilities. In under-developed countries, these technological items that
we are so accustomed to, are simply not available, and could lead to frustration and in extreme
cases to personnel being removed from site for medical reasons.
3.6 Culture Shock and its Influences
Considering all the factors mentioned in this chapter, which by no means are all inclusive, it is
not surprising that persons on both sides of the divide, the expatriates and from the host country,
will experience some form of culture shock.
Thiederman [7] describes culture shock as a state of mind that occurs when people find
themselves immersed in a strange culture. It happens for three reasons:
• The individual's behaviour is not getting the response that he or she is accustomed to.
• The person realizes that he or she is not knowledgeable about the cultural rules of the game
and does not understand how to behave.
• The individual no longer receives appropriate credit for achievements, skill, or ideas.
A common misconception about culture shock is that it sets in immediately and dissipates as
soon as a routine is established. This is however not the case. It happens progressively. The
reason for the delayed reaction is that when people first enter a new culture, obvious differences
are expected. The impact of their transition may be buffered until they find themselves in the
working world. One certain effect of culture shock on the workplace is that it diminishes
productivity. It produces mental states and behaviours that interfere with good work habits and
peak performance, for example; depression, aggression, short attention span, irritability,
frustration, to name but a few.
42
As mentioned before by the researcher, training and preparedness provided by organisations to
personnel entering these environments, especially for the first time, could only benefit both the
organisation and the individual.
3.7 Summary
This chapter discusses a wide variety of cultural factors that could vary from one country to
another or from one region to another. Despite the wide variety of cultural factors, management
tools and approaches applicable in one part of the world may not be applicable in another.
Understanding that culture impacts projects from three perspectives, it is considered essential
that construction companies investigate the cultural factors that may influence their projects
with reference to specific host countries or regions.
43
CHAPTER4
Bridging Cultural Barriers and Management Styles
4.1 Introduction
Jallad [12] expressed the view that success in many international construction projects could be
attributed to some degree to the willingness and ability of management to incorporate in their
cultural behaviour strategy, flexibility and sensitivity towards the other cultures involved. The
style of management could help such projects to achieve higher levels of performance, but there
is no magic formula or fixed set of rules that could guarantee success.
Flexibility under the various project conditions has been one of the most powerful mechanisms
for success.
Other requirements for success are: compassionate labour management to encourage and
motivate; professional training for management and closing the gap between cultural
misunderstandings by bridging cultural barriers.
The roles of the project managers who are responsible for daily progress are critical.
Construction companies must, therefore, select them based on a careful assessment of their
technical, managerial and personal skills in managing people of different cultures.
Thiederman [7] asserts that project managers should learn the skills and techniques necessary to
improve productivity, harmony, and teamwork in international construction projects.
Exposure and education are important first steps for both managers and workers, the more
knowledge each has about the others' culture, the less disoriented both parties will feel.
4.2 Bridging Cultural Barriers
It is likely that the learning of cultures and the ability of managers to cope in foreign
environments depend very much on the individual. Some managers are well adjusted; some are
44
sensitive to cultural differences and take actions to resolve cultural problems, while others tend
to take no notice of cultures or the need to adjust to them.
Agreeableness, conscientiousness, emotional stability, intellect, and openness could be of help
in developing successful coping strategies. Furthermore, some personality traits are culture
bound. Members of collectivist cultures may typically behave more ethnocentrically in cross
cultural situations as they feel loyalty to their own national group of team members. Makilouko
[13]
This section describes the first steps to bridging cultural barriers for project managers.
4.2.1 Cultural Awareness
Being aware of and familiar with cultural issues empowers project leaders with the requisite
knowledge for improving the efficiency of managing international project teams.
Ochieng and Price [19] point out that in the last 10 years, there has been growing research
interest in soft issues relating to cultural differences and factors, which affect people
management on projects. They go on to say that awareness of these factors is essential. Dadfar
and Gustavsson [6] add to this by stating that it is impossible to build interpersonal relations
without cultural awareness.
4.2.2 Cultural Sensitivity
The growing body of general international management literature suggests that the key to
overcoming the problem of cultural diversity is to develop cultural sensitivity. The consensus is
that cultural sensitivity encourages people to erode the behavioural differences which interfere
with the management process. Triandis [ 4] and Loosemore and Muslmani [ 18]
4.2.3 Acknowledgement of Differences
Ignoring the differences among cultures could only perpetuate the discomfort found m
international assignments. It is therefore very important to acknowledge the differences.
The more both management and workforce know about each other, the more in-control each
will feel and the less disorientation or culture shock will be experienced. By acknowledging,
noticing and learning about other cultures, managers will become more comfortable with
45
diversity and therefore more willing to work with, and build relationships with culturally
different workers. Thiederman [7]
Perhaps the most important is the fact that only by noticing the unique values, expectations, and
desires of workers, will managers be able to motivate and communicate effectively.
Thiederman [7] goes on to say that the practical ramification of ignoring differences is obvious.
If we do not notice, learn about, and respond to cultural diversity, miscalculations will be made
that could easily compromise the efficiency, harmony, and productivity of the workforce.
Another reason to acknowledge differences is that by doing so, respect for the worker's culture
is communicated.
4.2.4 Show Respect
The importance of communicating respect cannot be overemphasized. It is one of the basic
principles of successful cross-cultural management. When we disregard the unique
characteristics of someone's culture, we are negating an important part of that person's identity.
Once the manager can communicate respect for a cultural difference, it could have far-reaching
effects in terms of generating reciprocal respect and increased cooperation. Thiederman [7]
Dahoo and Ghyoot [2] adds that one of the best ways of showing respect for people with whom
we associate, is to communicate with them in their language of preference; non-withstanding the
fact that English is the language of international business
4.2.5 Distinguishing Culture from Personality
Thiederman [7] asks the following question:
How can managers tell when a worker's behaviour or attitude IS a reflection of cultural
differences or simply a function of the individual's way of acting?
Although there is no easy answer to this dilemma, and sometimes the only tool at the manager's
disposal is instinct, one technique could help: observation. Observe the attitudes and behaviours
of other employees in the workplace who share the same or similar ethic background as the
worker in question. If the behaviour at issue is found among other workers of the same group, it
is fairly safe to assume that it is rooted in cultural differences. For example; if many members of
46
a particular group tend to be chronically late, it is likely that it is because of a culturally specific
attitude about punctuality rather than an individual's laziness, lack of understanding, or
transportation problems.
The accurate interpretation of a worker's action is the first step toward motivating behaviour
change and has a direct impact on the design of effective motivation strategies. An approach
based on an individual's personality is likely to be very different from one that is in response to
a cultural general behaviour.
4.2.6 Identifying and A voiding Stereotypes
One of the cultural sins when dealing with cultural diversity is the making of broad general
statements about groups of people. To apply any cultural characteristic to all individuals within
a particular population would be unwise, and also disrespectful to the uniqueness of the
individual.
Stereotypes assume that everyone from a group has certain characteristics and allow no room
for individual differences.
General facts about a group are merely guidelines or starting points, bits of information that
certainly do not apply to everyone. Stereotypes could be positive as well as negative, but both
types are equally distorted and destructive. What this means for relationships with culturally
diverse workers and colleagues is that if someone does not fit our stereotype of what people in
that category are like, we will distort our perception of the external reality to fit our
expectations.
Individual members of a culture differ. Further, individuals from various regions within one
nation may vary dramatically with respect to culture and dialect.
It is important for managers to realize that some individuals do not fit into the stereotypical
mould of the culture of which they are part. Thiederman [7]
When managers assume, because of prejudgement, that workers are incapable of something, we
fail to give them the opportunity either to prove themselves or to learn the skill. This, in tum,
perpetuates the stereotype and continues the cycle of prejudgement and inaccurate conclusions.
To eliminate stereotypical thinking is to become aware of the stereotypes that we carry about a
47
particular group. A means of changing stereotypical thinking is to have in-depth knowledge of
particular groups. The more you learn about groups, the less able you will be to lump
individuals together. Acquiring knowledge weakens stereotypical thinking.
4.3 Management Styles
Makilouko [13] formulated effective management styles for multicultural projects. Three
distinctive management styles were found: ethnocentrism, synergism, and polycentrism. This
section describes the management styles in more detail.
4.3.1 Ethnocentrism
The word ethnocentrism means that managers see the world solely from their own perspective
and that this perspective is the best possible. Makilouko [13]
Thiederman [7] adds to this by saying the term ethnocentrism has many connotations. It carries
with it implications of racial superiority, cultural elitism, and the insinuation that others cultures
are exactly like ours or, if they are not, they ought to be. Ethnocentrism means that human
beings tend to assume that the behaviour of others, no matter what their origins, could be
interpreted according to the rules and values of one's own culture.
Makilouko [13] expresses the view that the ethnocentric manager is indicative of cultural
blindness and is only task, technical, rational, and engineering orientated. This is often to the
point that no time is spent on other managerial activities like delegating, supervising, or
motivating.
There is nothing wrong with liking and even preferring one's own culture. The difficulty arises
when we allow that culture to distort what we see. For managers, this distortion often takes the
form of misinterpreting the meaning behind the culturally different worker's behaviour. Such
misinterpretation could cause serious problems in the workplace. Projecting the rules and
expectations of ones own culture onto someone else could interfere with the all-important step
of interpreting his or her own behaviour correctly. Thiederman [7]
Both managers and workers need to learn about each others culture in order to avoid the
misunderstanding that ethnocentrism could create.
48
4.3.2 Cultural Synergy
The word synergy means that the manager understands the existence of many perspectives to
the world and tries to combine the strengths of all the perspectives in their management style.
Makilouko [13]
The manager actively attempts to build personal relationships with the project team members
and indicates cultural empathy in their willingness to learn and understand the ways of other
cultures.
They picture themselves as managers of people, and do not indicate cultural blindness or
ethnocentrism. Instead, they are aware of many practical differences between cultures. This
management style concentrate almost entirely on relationships' orientation.
4.3.3 Polycentrism
The world polycentrism means that managers understand the existence of many perspectives to
the world and try to treat each one with respect. Makilouko [13]
This management style does not attempt to mix the different perspectives, but preserve them as
they are. The manager does not attempt team building or especially developed interaction
between team members, instead, acts as a link between the team members according to the
cultural division. The team members are allowed to keep their old way of working that they are
used to in their home countries. The manager understands how people from both cultures think,
and could integrate the team without team members being fully aware of their differences.
An integral part ofthis style of management is the selection of team members and planning how
the team works together, including superior-follower relationships, reporting systems, and work
processes.
4.4 Summary
Acknowledgement and learning about the differences between cultures could only strengthen
the relationships between the workforce and the management team whose backgrounds and
cultures are different.
49
In international projects it is required from management to correctly and accurately interpret the
workers' actions and to distinguish between cultural and personality behaviours. It is therefore
essential that a manager is knowledgeable and sensitive to the actions and behaviour of their
employees to orchestrate a productive and motivated workforce.
The first steps towards bridging cultural barriers are perhaps the most difficult ones to execute.
Managers should develop a framework of cultural awareness within which a balance could be
achieved and each other could be understood.
The effectiveness of a specific management style is not universal. Before undertaking
construction projects in other countries, research needs to be undertaken into developing a
management style which will be both rigid enough to allow proper project control, and flexible
enough to allow for the management of the workforce with a foreign culture.
50
CHAPTERS
Research Findings and Key Observations
5.1 Introduction
Cultural Issues on the individual and interpersonal, environment and on the project
organizational perspectives were drawn from South African managers on construction projects
in Mozambique, the host country.
The results indicate which cultural factors are present in the projects perspectives. From the
findings, the results were then used to collate the main cultural factors deemed to be the most
important, based on their contribution to the outcomes of the projects.
The findings further identify which management strategies are being implemented, and their
effectiveness in managing the cultural factors identified.
Throughout the findings, the researcher attempts to illustrate the personal perspective of the
individuals interviewed, and how they were empowered and supported to effectively manage
the identified cultural factors.
The presentation of the findings is in a narrative form, supported by evidence from the
statements recorded during the interview phase, and making references to the literature review
were necessary.
The findings will be introduced by providing a profile on the specific projects from which the
participants were drawn.
The projects varied in terms of complexity, location, and their labour requirements, which in
tum were effected by different cultural factors. There are however many common cultural
factors identified by all the participants, which will become evident throughout this chapter.
51
5.2 Project Profiles
The researcher gathered information on four projects, which were implemented between the
years 2000 and 2007.
The nature of these projects ranged from major civil works to small and large size industrial
plants. This allowed for a variety of cultural issues to be explored within the broad context of
international project management activities.
The clients and funding of these projects varied, but all were South African managed.
A summary ofthe initial project background information is given in Table 6.1.
Project Description Initial Budget Initial Nationality of
Duration Workforce
A 240 km of roads and US$ 45 million 24 months Mozambican and
27 bridges Zimbabwean
B Sugar mill US$ 8 million 9 months Mozambican
c Bottling plant US$ 5.4 million 18 months Mozambican
D Aluminium smelter US$ 840 million 24 months Mozambican
Table 5.1 Project Profiles
The results will show cultural and management issues, in different ways and levels, that
contributed to the outcomes of the different projects, which hereafter will be referred to as
Project A, B, C, and D and their respective participants.
It will be shown throughout the findings that Projects A, B and C were mostly negatively
affected. It was fortunate for the researcher to find information on how cultural and management
issues were overcome, as was evident in Project D. The strategies implemented by the last
mentioned project will be intertwined throughout the findings.
5.3 Emerging Themes of Cultural Factors
What follows IS a descriptive account of the research results under headings drawn from
Chapter 2.
52
• The Individual and Interpersonal Perspective
• The Environmental Perspective
• The Project Organization Perspective
The cultural factors identified are categorised by the researcher to the relevant perspectives.
5.3.1 The Individual and Interpersonal Perspective
The following table lists the emerging cultural factors with regards to the internal perspective,
and the number of respondents that reported on the specific factor.
Internal Cultural Factors Reported
Skills Requirement 4
Punctuality 4
Safety Practices 4
Respect for Authority 2
Productivity and Time Management 4
Strikes and Conflict Resolution 4
Motivation 1
Expectations 4
Pride in work 2
Work Attitude 2
Table 5.2 Emerging Cultural Factor with Regards to the Internal Perspective
Even though all attempts are made to discuss each element individually, it must be emphasized
that many of these themes are interlinked and have an affect on others.
Skills Requirement
The overall skills requirement for Projects B, C and D were different from the requirement for
Project A, due to the type of construction. Projects B, C and D, made use of local labour
recruitment agencies to find personnel. In all three cases, it was unsuccessful.
In the case of Project B, the shortage of skilled workers was the main contributor to the outcome
of the project, with regards to cost and time. The extent of the shortage of skills was only
53
identified after the commencement of the project. This project resorted to the urgent importation
of skills from Argentina, which was cheaper than making use of South African workers.
Both Project C and D established an assessment centre to determine whether the individuals
were skilled as claimed. Even this approach did not provide enough personnel to complete the
works. Both projects obtained permission to make use of South African skilled labour, and
made use of local labour for all unskilled work.
Project D established a full-time training centre, which trained individuals who showed
potential. From this approach, they were able to increase the local labour force, and only made
use of South Africans until they could be replaced by local personnel.
Even though project A could make use of unskilled labour, their recruitment process was
strongly linked to corruption and historical background, which will be indicated later.
Punctuality
All the participants indicated that punctuality was a problem, especially after salaries had been
paid, with many personnel not returning to work. Project D, which had a 60% turnover in local
labour at the beginning of the project, were able to reduce this to 10%, by stipulating clear rules
and creating incentives in the form ofbonuses every 6 months.
Safety Practices
Several participants noted that they are not aware of the Mozambican safety laws, and that even
though it was advisable to enforce South African safety standards, it was not enforced as strictly
as it would be in South Africa.
All four participants further highlighted that workers needed to be supplied with new safety gear
on a daily basis. It was the opinion of all participants, that the workers sold their safety gear
(shoes, jackets, hard-hats etc.), in exchange for money or food. Project D had some success to
limiting this "theft" by deducting the cost of new safety gear from salaries.
Respect for Authority
Participants A and B reported that a lack of respect for authority was visible. This seemed to be
more evident in Project A, where the lack of respect was strongly linked to historical, regional
54
and tribal factors, where team leaders were either from Zimbabwe or from other regions of
Mozambique.
Productivity and Time Management
There was consensus by all the participants on the "go-slow" phenomenon. Project D was the
only project that met their outcome in terms of time, and showed an increase in productivity as
the project progressed.
Project A was able to speed up productivity in short intervals, by introducing small additional
incentives, i.e. additional time off or as simple as a can of coke or food.
Strikes and Conflict Resolution
All four of the projects were affected by strikes. The maJor reasons for the strikes were
predominantly monetary, food and transport related. In all four cases, striking was anticipated
by management, and in most cases demands from the workforce were met. It was reported by
all, with the exception of Project D that strikes were re-occurring, with a continual increase, or
change in demands. In all four cases threats, which sometimes lead to violence, were present
during the strikes. The effect of these strikes on the 'time' outcome of the projects was most
evident in Project B. The participant stated that their project duration of nine months was
increased to fifteen months, where time lost due to the strikes, and procurement of skilled labour
were the main contributors.
Although all the participants acknowledged that the strikes were anticipated, only Project D, had
a permanent human resource manager, dealing with conflict resolution. After the first strike on
this project, and government intervention, the channels for conflict resolution were clearly
established. All participants also indicated the unsafe environment for their own personal safety
during these strikes, where they were removed from site, and in all cases, either the police,
army, or government officials had to intervene to resolve the conflict.
Motivation and Expectations
It is the opinion of the researcher and that of the participants, that these two factors are
interlinked. All participants stated that motivations were very low. Besides the monetary gain,
and other bargaining issues, there were no expectations of personal growth.
55
Participant D went on to claim that they noticed an increase in motivation due to their training
programs and the possibility of being promoted. Their training programmes were established as
part of their social responsibility. None of the other projects offered any kind of training
programmes during the projects' duration.
Pride in Work
Participants A and D stated that workers had no pride in their work. However, participant D
claimed that he believed the training provided, and the possibility of growth and appointment in
higher positions, instilled a sense of pride.
Work Attitude
The same participants, A and D, as mentioned above, linked 'pride in work' to 'attitude'. Both
participants noted a negative attitude, and participant D went on to state that he believed the
possibility of growth had a visible impact on those individuals who made use of the
opportunities provided.
5.3.2 The Environmental Perspective
The emerged cultural factors relating to the environment are summarised in Table 5.3.
Environmental Cultural Factors Reported
Corruption 3
Bureaucracy 3
Procurement of Supplies and Materials 4
Language 4
Historical Background 1
Ethnic, Tribal and Regional Groupings 1
Labour laws 3
Availability of Food 3
Personal Safety 4
Table 5.3 Emerging Cultural Factors with Regards to the Environmental Perspective
56
Corruption
Participants A, B and C indicated that corruption was evident. However, only Project A
indicated that corruption was one of the major influences on the outcome of their project.
Participant A claimed that corruption, interlinked with bureaucracy, was a continual problem at
the border crossings. Items that should take a couple days to cross the borders could be delayed
by weeks, influencing the time schedule of the project to a great extent.
Participant A also noted that corruption was prominent in the recruitment process of personnel,
where the local mayors of the respective areas were in charge of deciding who is appointed.
Individuals showing potential, and recommended for appointment by the contractor, could only
be appointed by influencing the mayor in monetary terms.
Participants B, C, and D, acknowledged the presence of corruption, but stated that it was
indirect and did not influence the outcomes of the projects.
Bureaucracy
All four participants highlighted strongly that bureaucracy, especially through the borders, were
incredibly slow. All the projects had at least one person permanently stationed at the border
posts to facilitate the process. This approach, as important as it was, had limited effect in all the
projects, with the exception of Project D. The last mentioned was supported by the government
with a permanent customs officer at the border, dealing with this project only.
Procurement of Supplies and Materials
All participants believed that procurement was one of the biggest problems on their projects.
Participants A and C went on to claim that procurement was the main contributor to the
outcomes of their projects.
Both participants acknowledged that the problems with procurement, is not just the total lack of
local availability and border related issues, but also strongly linked to the lack of advanced
planning by the project organisation, and in many instances, head office support. Both of these
issues will be discussed later in this chapter.
In addition, participant A went on to claim that the bureaucratic inconsistencies at the borders
and excessive import tax greatly influenced the procurement of materials.
57
The issue of procurement was given an additional dimension from participants B and C. Both
indicated the problems and frustration around the unavailability of banks. All workers, and
some other expenses, bribery, etc. had to be paid in cash. Millions of Metical, the local
currency, had to be available, and sourced, on a monthly basis.
Language
While language differences are recognised as one of the maJor sources of communication
problems in the literature, none of the participants made any attempt to learn Portuguese; the
official language. Some basic conversation was acquired through experience rather than any
formal training. All participants reflected a general consensus that language is not seen as a
significant barrier to communication in international construction projects, and a finding that
disagrees with the literature.
On all four projects, it was required that foremen or team-leaders, who oversaw the local
workers, had to be at least bi-lingual, and fluent in both English and Portuguese. This seemed
like a rather simple and plausible solution, and in three of the four projects it worked quite well.
However, in Project A, these foremen were from Zimbabwe, which produced its own problems,
as discussed in the next section.
Historical Background
As mentioned above, the team-leaders on Project A was from Zimbabwe. The historical
background between these two nations was not fully understood during the recruitment process.
Not only did the local workforce disrespect the authority of the Zimbabweans, it led to strikes.
Eventually all the Zimbabweans left the project in fear of not only their safety, but their lives.
The contractor then went on to recruit persons, fluent in both languages, from Maputo. Again,
this seemed like a plausible solution, but this only perpetuated the problem as discussed in the
next paragraph.
Ethnic, Tribal and Regional Groupings
The location of project A was in the far northern parts of Mozambique. In the prevwus
paragraph the employment of persons from Maputo was mentioned. There seemed to be a clear
discontent between people from the north and the south. This too has its historical background
58
and lead to violent conflict. In addition to this, the local labourers were not content with the fact
that persons from other areas of Mozambique are employed, even when they had the skills
required.
Labour laws
The labour laws of Mozambique with regard to these types of construction projects, fall outside
the scope of this study. However, all participants indicated that all unskilled work requirements
had to be filled with local labour. Participant B indicated that they were required to fill all
skilled positions from the local population. These persons were identified by a local labour
broker before the project started. However, at the outset of the project, it became clear that these
workers were not as skilled as believed. The result was violent strikes from the persons who
were now loosing their jobs.
Availability of Food
The literature refers to cultural differences in food, with respect to what you eat, when you eat,
and the etiquette around eating, as referred to in Chapter 4.
In Mozambique, as a poverty-stricken country, the issue was the availability of food. As stated
by participant A, " ... due to the remote location of the project, far away from any villages, the
workers were sleeping in the bush and eating rats." This kind of living conditions would seem
inhumane to any westerner, which indicates the extent of poverty of the population. Even
though the contractors were aware of this problem, it was met with little empathy.
From the abovementioned, it becomes clear, why the availability of food to workers was one of
the major reasons for striking in all of the four projects. It is unfortunate to report that only two
of the projects responded to this problem, with different motives. Project C responded because
the local workforce had no energy to put in a full day's work. Project D responded because it
was part of their social responsibility and mission statement. Participant D went on to say that
even the menu was discussed with their workers, which in turn built trust and loyalty to the
project.
59
Personal Safety
During the interviews, all four participants made references to their own personal safety. Safety
was compromised as a result of the undeniable indirect corruption, intimidation, malaria, and
with two participants referring to landmines.
All participants had experience with being stopped by police, and personal documentation, i.e.
passports, work visas etc., confiscated for no clear reason.
All participants, with the exception of one, had to return to South Africa, by means of their own
transport, to receive medical attention for Malaria. It was indicated by three of the four
participants, that even though they were supplied with basic healthcare, the facilities were not
equipped to deal with Malaria.
Participants A and D, indicated the continuous underlying fear of landmines, even after expert
companies from Britain and the United States were contracted to disarm work and living areas.
5.3.3 The Project Organization Perspective
Re-occurring cultural factors relating to the organizational perspective that emerged are
presented in Table 5.4.
Organizational Cultural Factors Reported
Subcontractors 3
Personnel Tum-over 3
On-going Headquarter Support 4
Table 5.4 Emerging Cultural Factors with Regards to the Organizational Perspective
Subcontractors
The initial incorrect assessment of subcontractors was also indicated as one of the mam
influences on two of the projects outcomes. It was the understanding of the participants that they
were required by law to make use of local subcontractors. Both Projects A and C reported that
none of the subcontractors already contracted were able to handle the workload, volumes,
quality of workmanship or supply of materials to standard. In both cases this brought the
60
projects to a virtual standstill until negotiations and contracts with South African subcontractors
could be finalized.
Personnel Turn-over
All participants, with the exception of participant D, indicated that the personnel tum-over was
high and all acknowledged that it greatly affected the outcomes and effective management of
the projects.
In particular was Project C, which, according to the participant, had an almost complete tum
over of staff every three months. This participant believed that it was due to the remoteness of
the location, harsh living and working conditions, culture shock, personal safety, lack of
knowledge and unpreparedness, and lastly, the lack of support from their headquarters.
On-going Headquarter Support
When the participants were asked with regard to the support and guidance supplied by their
respective headquarters in South Africa, the answers of participants A, B and C were very clear:
no support in any way or form was provided. Participants A went on to say that,
" ... headquarters is driven by production and money only. Their attitude is; 'just get it done'."
This exact sentiment was reflected by participants Band C.
Participant C asserted that requests for full-time planners and material managers at headquarters
were denied. Requests for assistance in the shortage of skills of local labour and finding
alternative suitable sub-contractors were denied, as many other requests were denied.
The issue of planning and support was also strongly emphasized by participant D, who
acknowledges that advance and ongoing planning and support from headquarters is vital to the
success of any project in Mozambique. Due to the nature of the environment, trying to solve
problems as they occur by the management team alone will have an impact on the outcomes of
the project.
It is unclear to the researcher why headquarters, knowing the problems that these teams
experience, do not support their teams in a more substantial way.
61
5.4 Influence of Cultural Factors on Project Performance
In previous sections, it was postulated that influences on project outcomes can not be indicated
by individual diversity factors alone, but that they are interlinked and cumulative. For example;
bureaucracy, corruption and procurement could be linked, and many factors that have an
influence on time, will inevitably have an influence on cost. It must also be understood that
these projects were affected in different ways and levels, due to the different nature of the
projects. The following table identifies the main factors, as perceived by the participants, to
have the greatest effect on project outcomes in terms of cost and time.
Outcome Cultural Factors
Cost • Subcontractors
• Skilled labour
• Import tax
Time • Procurement
• Bureaucracy and Corruption
• Strikes
Quality • Unskilled labour
• Materials (i.e. aggregates etc.)
Client concerns • Time
• Cost
• Human relations
Table 5.5 Main Contributors of Cultural Factors on Project Outcomes
It must be noted here that quality and client satisfaction did not receive much attention. The
reason for this is that all projects, regardless of the difficulties, maintained a good relationship
with their clients, kept them informed, and ultimately delivered the product to the specified
standards.
5.5 Effectiveness of Cross-Cultural Project Management
As mentioned throughout this chapter, Projects A, B and C experienced considerable difficulties
throughout the entire duration of the projects. In contrast, Project D experienced many of the
same difficulties initially, but was able to overcome them by means of effective management
62
and clear strategies that were put in place before the start of the project. For this reason, the
following section will focus on strategies employed by Project D.
5.5.1 Management Strategies Employed to Overcome Cultural Barriers
It became evident that the involvement of government, who had a 4% share in Project D,
eliminated most of the difficulties experienced by the other projects. Both participants, A and B,
also believed that government involvement in huge scale projects is essential.
The following additional strategies were employed by Project D, which contributed to its
success;
• Advanced detailed planning.
• Proper investigation of sub-contractors and materials; ultimately no local subcontractors
were used.
• Making use of South African skilled labour until local labour could be trained to replace the
South African workforce.
• Setting clear guidelines for conflict resolution and the employment of a full-time human
resource manager dealing with all disciplinary issues, queries and complaints.
• Signing of contracts with all labourers, skilled and unskilled, clearly stipulating the
expectations of the project management team with short and medium term incentives.
• A strategy of social responsibility, completely absent in the other projects, with regard to the
local workforce and any other parties, such as farmers, affected by this project.
The researcher believes that a clear and non-negotiable mission statement of the client is needed
and enforced. This statement should include that 'no bribes will be paid' and that 'each
individual and the local culture will be respected'.
5.5.2 Effectiveness of Management Strategies
The effectiveness of the above mentioned strategies were clearly reflected in the outcomes of
project D. Not only did the project finish below the initial budget, the project was completed
two months early, to the required standards and to client satisfaction.
It is the opinion of the researcher that the outcome of this particular project, should not only be
limited to the outcomes set by western standards. This project also had an influence and positive
63
outcome on the workers, providing them with skills and experience which they will hopefully
be able to use to enhance their own future, and their communities. They also showed that trust
and respect for each other's cultures, and a positive outlook for all involved, that future ventures
between these two nationalities could be successful.
5.6 Key Observations and Summary
Table 5.6 summarises the key cultural factors present in constructions projects in Mozambique
in terms for the, internal, environmental and project organisational perspectives.
Internal Perspective Environmental Project Organisation
Perspective Perspective
• Strikes and conflict • Bureaucracy • Lack of advance planning
• Corruption • On-going headquarter support resolution
• Procurement
Skills requirement • Historical conflict •
Table 5.6 Key Cultural Factors that Influence Construction Projects
in Mozambique
The meticulous planning, thorough investigation of subcontractors, clearly defined strategies,
on-going support from headquarters and involvement of the Mozambican government in project
D, played a major part in the success and outcomes of the project.
64
CHAPTER6
Conclusions
6.1 Introduction
This chapter presents the conclusions drawn from the research with respect to all 5 research
questions. The researcher also summarizes major aspects of cultural management. Before the
study will be concluded, some recommendations as well as suggestion for further research will
be made.
The literature studies provided a framework and background knowledge required for the
presentation of data. The literature however had its limitations. There is no literature available
on cultural factors that influence international project management in Mozambique. It is the
opinion of the researcher that this is the first time that this has been done and that the results and
findings extend previous research. It could be of interest because it adds a new depth to the
cross-cultural management within the construction management environment in Mozambique.
6.2 Conclusions on Research Questions
The objective of this research was to define and consider the key issues of cultural factors and
appropriate management strategies relating to international construction projects. Five research
questions were posed to address the issue. The following sub-sections present the conclusions
drawn from the interpretation and discussion of the results and findings in the context of the
literature reviewed.
Research Question 1:
Which cultural factors are likely to be present in South African managed international
construction projects in Mozambique?
The background to this question is addressed by a literature study in Chapter 3 in which cultural
factors were identified and an understanding developed. The cultural factors are categorised in
65
terms of international construction project perspectives. The background to these perspectives is
presented in the literature study of Chapter 2.
The cultural factors identified in the findings are presented m terms of the international
construction project perspectives in Table 6.1.
International Construction Project Perspectives
Internal Cultural Factors Environmental Cultural Organizational Cultural Factors Factors
Skills Requirement Corruption Subcontractors
Punctuality Bureaucracy Personnel Tum-over
Safety Practices Procurement of Supplies and On-going Headquarter Support
Materials
Respect for Authority Language
Productivity and Time Historical Background
Management
Strikes and Conflict Ethnic, Tribal and Regional
Resolution Groupings
Motivation Labour laws
Expectations Availability of Food
Pride in work Personal Safety
Work Attitude
Table 6.1: Emerged Cultural Factors in International Construction Projects in
Mozambique
The cultural factors listed in Table 6.1 were obtained from four in-depths interviews with
construction managers on various projects
Research Question 2:
Which of the above cultural factors impact on the outcomes of project performance, in terms of
time, cost, quality and client satisfaction?
The findings are summarised in Table 6.2.
66
Outcome Cultural Factors
Cost • Subcontractors
• Skilled labour
• Import tax
Time • Procurement
• Bureaucracy and Corruption
• Strikes
Quality • Unskilled labour
• Materials (i.e. aggregates etc.)
Client concerns • Time
• Cost
• Human relations
Table 6.2 Main Contributors of Cultural Factors on Project Outcomes
Research Question 3:
Do South African companies have effective management strategies in place to overcome the
barriers caused by these cultural factors?
The literature highlights the importance of acknowledging that cultural factors need to be
managed.
From the findings it was alarming to document that most project managers have no effective
strategies in place.
Strategies that were effective, pertaining to specific cultural factors categorized under the
projects perspectives, are summarized in Table 6.3.
67
Individual and Interpersonal Perspective
Cultural Factors Effective Management Strategies
Skills Requirement Proper assessment of skills and establishment of training
centres
Punctuality, Productivity and Time Create incentives. For example: bonuses every six months if
Management targets are met or 'time-off.
Safety Practices Cost of 'lost' personal safety equipment are deducted from
salaries
Strikes and Conflict Resolution Permanent Human Resource manager dealing with conflict
resolution and clear rules on the process and procedure
Motivation, Expectations and Pride Establish training centres with individuals with potential
in work being promoted
Environmental Perspective
Cultural Factors Effective Management Strategies
Bureaucracy Host country governmental involvement
Procurement of Supplies and Materials Advanced detailed planning
Language Bi-lingual team leaders
Availability ofF ood Provide food as part of social responsibility
Project Organization Perspective
Cultural Factors Effective Management Strategies
Subcontractors Detailed assessment of subcontractors at planning phase
Personnel Tum-over Prepare personnel and provide on-going head quarter support
On-going Headquarter Support Staff at head-quarters supplying support full-time
Table 6.3 Effective Management Strategies of Cultural Factors
68
Research Question 4 and 5:
In what ways could companies improve the effective management of cultural factors in
international construction projects?
Are employees empowered with knowledge, skills, and supported by their organisation to
effectively manage these barriers?
From the literature studies throughout and especially Chapter 4, these two questions are strongly
related. The implementation of strategies must be based on sound researched knowledge of the
host environment. From most of the findings in Chapter 5, it became clear that there are no
noticeable attempts made to even have strategies in place.
In addition to this, and partially answering question 5, from the findings it was clear that most
management teams are ethnocentric. No attempts were made to understand, acknowledge and
respect the labour force of the host country.
6.3 Recommendations
From the findings of the research, the following recommendations for international construction
managers, particular but not only in the South African and Mozambican context, could be put
forward:
• Construction companies must acknowledge that there are cultural differences between their
own culture and that of the host country, and that these differences must be managed with
sensitivity and respect;
• Construction companies should thoroughly investigate the cultural factors which will most
likely be evident in the host country through past experience or from other similar projects
conducted in the host country by other companies;
• The influence ofthese cultural factors on the outcomes of project performance should not be
underestimated, and catered for in the project planning phase, especially pertaining to cost
and time;
• Clear management strategies must be in place; and
• The selected personnel must be trained to be culturally aware, sensitive, knowledgeable and
respectful of the cultures of the host countries to effectively implement management
strategies.
69
6.4 Concluding Remarks
As this short-dissertation is a study with limited scope, no claim can be maid to total
completeness. Further comprehensive research should be undertaken, especially in the following
areas;
• The reason as to why some companies are hesitant to implement culture-related
management strategies.
• The reason why managers without the necessary knowledge, skills and attitudes towards the
opinions, culture and values of workers are being appointed on multi-national construction
projects; and why parent organisations, or 'Head Offices', do not take ownership of this
problem.
• The design or implementation of training programmes for managers in organisations where
specific gaps or needs have been identified in the study, so that projects could be completed
with maximum efficiency
70
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APPENDIX A: INTERVIEW DATA COLLECTION
1. BIOGRAPHICAL INFORMATION OF RESPONDENT
Nationality
Education and past Experience
2. PROJECT INFORMATION
Brief Description
Client
Consultant( s)
Contractor( s)
Cost
Duration
Structure and nationality of management team and workforce
3. CULTURAL DIVERSITY FACTORS
The following are examples of cultural factors that might emerge:
Work Habits/ethics
Corruption
Bureaucracy
Skill
Punctuality
Safety
Training
Assessment
Time management
Respect for authority
Loyalty to company
Assertiveness
Creativity and change
Negotiations
Productivity
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Conflict resolution
Local business practices
Procurement
Motivation
Expectations
Language
Communication
Age
Values
Etiquette
Religion
Belief Systems and World Views
Food, Dress and Appearance
Attitude
Family
History, Traditions and Customs
Ethnic Group
4. INFLUENCE THAT DIVERSITY HAVE ON PROJECT PERFORMANCE
Cost
Time
Quality
Client satisfaction
5. EFFECTIVENESS OF CROSS-CULTURAL PROJECT MANAGEMENT
Were any management strategies employed to overcome those cultural barriers
mentioned?
Effectiveness of these management strategies
Recommended proactive measures to ensure effective management
Cultural awareness and literacy of managers
Organisational support
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