Running head: CULTURAL AWARENESS PLAN – PART ONE 1

Cultural Awareness Plan – Part One

Monique George

MGT/538

September 30, 2013

David Barlage – Facilitator

CULTURAL AWARENESS PLAN – PART ONE 2

Training Program – Part One

JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States. With a history dating back over

200 years, JPMorgan Chase is a leading global financial services firm with assets of $2.4 trillion, operate in more than 60 countries,

have 260,000 employees, and serve millions of consumers around the world (JP Morgan Chase & Co., 2013). I have been hired as a

consultant to create a cultural awareness plan to assist JP Morgan Chase’s employees to work well with their counterparts in the

Middle East and North Africa. The plan will include a comprehensive program that will help American staff members work

effectively with his or her counterparts in the UAE and Egypt.

Cultural Awareness Plan – Preparation

CULTURAL AWARENESS PLAN – PART ONE 3

Pre

par

atio

nCommunicative Styles

Summarize the main features of communicative styles.

The communication styles of the Middle East are multifaceted. Most cultures in this region of the world are driven by relationships stressing the importance of maintaining face to honour the family. As a result there are usually very complex rules of engagement and communication styles. For example in the Middle East, saying "no" or blatantly disagreeing with people is not usually done in order to save people's face (Kwintessential, 2012). Therefore there is a lot of "beating about the bush" as people try to phrase sentiments in a way that does not make someone lose face. A simple example would be that instead of "no" you may get "I will try", "Let's do our best" or "God willing" (Kwintessential, 2012).

In Egypt, Arabic conversation can be very hyperbolic with much use of flowery language and flattery (World Business Culture, 2012). This is a protocol of the language and is expected. It is important that foreigners express themselves in a similar fashion - especially when establishing relationships (World Business Culture, 2012). It may sometimes appear that Egyptians are shouting at each other and in the throes of a very heated, acrimonious argument. In Egypt, emotion is used to convey conviction and that an overly reserved approach could be misconstrued as detachment or even lack of interest.

CULTURAL AWARENESS PLAN – PART ONE 4

Leadership StylesSummarize the preferred leadership styles.

In some Middle Eastern countries, local management style will be directive and paternalistic. Managers are expected to give clear and direct instructions to their subordinates and the subordinate will be expected to carry out the instructions to the letter. Lack of clear directional leadership will be seen as confusing (at best) and at the extreme, as very poor management (World Business Culture, 2012). As a result of this approach, it can appear to outsiders that local managers are overly abrupt or even rude with their staff.

According to World Business Culture (2012), “It is important to think of these internal relationships in terms of a family. The boss is the ‘father’ and the employees are the ‘children’. The father tells the children what to do but also looks after them and cares for them. The ‘children’ do as they are told and show their father ‘respect’. It is a two-way relationship in which all parties benefit” (Arab Management Style).

Most Egyptian companies tend toward extremely hierarchical structures and this is reflected in the management style most frequently manifested within these companies. The approach is often described as 'managing authority consultatively’, which implies the need for discussion without any loss of perceived status or power (World Business Culture, 2012). Egyptian managers (usually all men) will consult widely with colleagues but be expected to make the final, firm authoritative decision. This decision will rarely, if ever, be delegated to a subordinate - even if the subordinate is a member of the family. Management is expected to be cautious and not take too many risks - thus decision-making can seem extremely slow and cumbersome in comparison to standards of the United States. Additionally, religion can play a role in the final decision-making process.

CULTURAL AWARENESS PLAN – PART ONE 5

Business EthicsSummarize the most valued business ethics.

In the Middle East corruption in an issue that plagues business ethics in the region. Most of the corruption stems from their beliefs that one takes responsibility for their family. Favoritism is the most commonly considered form of corruption. When working on ethics in the Middle East, they must be customs made to the people of the country. Most of the countries in North Africa suffer from the same issues of corruption and bribery.

Motivators

Summarize the most valued motivators.

A study conducted in 2009 revealed several motivators for employees in the Middle East and North Africa. The first motivator is achieving a good work/life balance is one of the key factors that will impact an employee’s motivation. ‘Long-term growth opportunities’ and ‘company’s reputation’ come out to be the top motivating factors with 36% and 33% respectively (Bayt International, 2009).

Potential Conflict

Summarize areas of potential conflict due to the differences highlighted above and as reflected in the organization’s emailed documentation.

With the expansion of JP Morgan Chase in the Middle East and North Africa, some of the conflicts that could arise are from the different cultures in each country. The Middle East and North Africa produces more than 33.3% of global oil and has more than 60% of world reserves, therefore, fear the reduced production of crude oil from Libya, the Middle East conflict, and Africa, makes the market very sensitive to the political situation in the oil zone (The Analysis, 2013). According to "The Analysis" (2013), “some other conflicts that may occur are increased energy costs, value of the dollar, unemployment, and slow economic recovery” (Economic Impact of Conflicts in the Middle East and Africa).

CULTURAL AWARENESS PLAN – PART ONE 6

Res

earc

hCultural Awareness Goals

Articulate the organization’s cultural awareness goals based on info provided by the organization as well as your own research.

J.P. Morgan has worked hard to ensure that the company and its global objectives collide with the organization’s cultural awareness goals. J.P. Morgan is committed to building vibrant communities, preserving our environment and promoting an inclusive culture across the globe that benefits people not only today, but also for generations to come (J.P. Morgan, 2013). J.P. Morgan has a number of foundations in the Middle East and North Africa focused on socially and responsibly serving the communities they serve.

Current State

Explain how you will assess the employees’ current state of cultural awareness and tolerance.

To make certain the company is adequately trained on cultural awareness and tolerance of all employees and countries involved, a diversity awareness survey will be administered. All workers (including executives) will be required to participate in the survey to be eligible to travel abroad on behalf of the company. Internal research suggests that a Likert scale style cultural awareness questionnaire is the best way to access the mindset of each worker in each country.

Challenges

List the potential challenges to the overall cultural awareness plan

The potential challenges to the cultural awareness plan are many. One challenge is that the American and foreign workers will have problems because all the different backgrounds that have to be considered to conduct successfully business globally. There are three different unique cultures involved and they are all distinctive. There may be differences in interaction styles, work ethics, and attitudes. For that reason, the cultural differences may raise inquiries and various conflicts.

Solutions

Compile solutions and explain how each can be used to overcome a challenge specified above, help meet a milestone or goal, or supplement a training program.

The solutions to the challenges listed above will have to be selective and dealt with delicately. The challenge of all cultures finding middle ground that will help with acknowledging everyone’s cultural differences. Workers as well as executives of J.P. Morgan will have to participate in more training to be culturally aware of his or her international counterpart. The executives must deal with the cultural gaps and divides that create misunderstandings among workers.

CULTURAL AWARENESS PLAN – PART ONE 7

References

Bayt International. (2009). Retrieved from http://www.bayt.com/en/research-report-5601/

J.P. Morgan. (2013). Retrieved from http://www.jpmorgan.com/pages/jpmorgan/emea/local/mena/csr

JP Morgan Chase & Co. (2013). Retrieved from http://www.jpmorganchase.com/corporate/About-JPMC/about-us.htm

Kwintessential. (2012). Retrieved from http://www.kwintessential.co.uk/cultural-services/articles/middleeast.html

The Analysis. (2013). Retrieved from http://blogjaviervega.blogspot.com/2011/04/economic-impact-of-conflicts-in-middle.html

World Business Culture. (2012). Retrieved from http://www.worldbusinessculture.com/Egyptian-Business-Communication-Style.html

World Business Culture. (2012). Retrieved from http://www.worldbusinessculture.com/Arab-Management-Style.html

CULTURAL AWARENESS PLAN – PART ONE 8