Aspects of diversity that influence international construction ...

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


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


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.


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.


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


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


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


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


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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73

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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Aspects of diversity that influence international construction ...

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