Managing cultural differences in construction is one of the tasks that require extreme caution. Thus is made more difficult by the fact that culture is dynamic and is always changing (Kagerer & Gandarilla, 2011, p. 1) . This is especially so for a multinational company, such as Carillion, working away from their home culture. It requires that the concerned parties consider all cultural concerns that might affect construction. There are several prerequisites and concerns that are required for successful management of cultural differences in construction. Multinational construction companies deal with people from different cultural backgrounds. Most of these constructions involve at least one of the people involved not belonging to the same culture as where the construction is taking place.

One cultural consideration in construction is loss of cultural heritage in relocation. Most large construction projects require that the inhabitants of the area where the project is taking place be relocated. Although people who relocate during construction are normally compensated, a part of their culture and heritage is lost in the relocation (Kagerer & Gandarilla, 2011, p. 2). This kind of loss cannot be paid for in compensation. Their families too undergo some disturbance as they try to settle in their new homes. On several occasions, constructions displace inhabitants who have lived in a certain area for a long time. Over the time, the people build a relationship both with their immediate neighbors as well as with the environment on which they live. Relocation causes an end to most of these relationships forcing the inhabitants of the construction area to come up with new relationships wherever they relocate to. Naturally, no one wants to leave their homes and their way of life (CEM, 2006,p.9). In most cases, compensation to relocating families is not enough to return them to the position they were in before relocation. Most people have an emotional attachment with their homes. Hence very few are willing to relocate to pave way for construction.

To manage cultural differences successfully a construction company, for instance Carillion has to consider the differences in perceptions of the various cultures it is dealing with (CEM, 2006, p.4). What may be considered a done deal in one culture may be considered a deal in progress, in a different culture. Hence it is advisable for a construction company to first find out how people from the culture they are dealing with before assuming that a deal has to be struck. For instance, in some cultures saying yes simply means one is in agreement with you but that a deal has been struck. While some cultures do not prioritize hierarchy, others do. In a culture where hierarchy is always given high priority, the official in charge will always insist on going through all the details of the construction themselves. In cultures that don’t give much priority to hierarchy, however, top officials tend to make decisions based on the information availed to them by their juniors and ma not necessarily need to over all the details by themselves. If a company in a culture where hierarchy is not prioritized assumes that decisions are made in a similar way in all other cultures, this may lead to a misunderstanding between the two companies.

Another cultural consideration a construction company such as Carillion ought to take into account is the personal attitudes of the different cultures it is dealing with. Personal attitudes vary from culture to culture (CEM, 2006, p.6). Each person involved in an international construction project is a product of his own national and corporate culture. Different nations and different corporations have different culture. Every person’s behavior is to a large extent shaped by the experiences they have been through. However, it is not everybody who will understand or identify with these behaviors. It is important that employees of a construction company try to understand things like dress code personal freedoms and the social ideology of the places where they have operations. Whereas religion is just a part of the culture in some places, in others it is the way of life. The company needs to understand the role of different genders in the prevailing culture, how non official payments are made and if they are acceptable at all, as well as matters pertaining to personal freedoms; say freedom of speech and freedom of association. Carrying cultural norms of one culture and assuming they apply in other cultures can lead to a lot of problems.

Another cultural consideration a construction company like Carillion must make in dealing with people from different cultures is language. Language varies from place. Failure to understand a language can cause a very serious problem in business. It is advisable that a construction company working in a different culture that speaks a language that is different from theirs employs a translator (Kagerer & Gandarilla, 2011, p. 2). Misunderstanding a language during a business transaction can lead to a lot of problems. Precision in a language is also very important even when one can speak a language it is important that they do it with precision. Poor precision in speaking a language can result in misunderstanding or even financial loss. While cultures do not take how one is addressed seriously, others take very seriously the address or the style used in addressing someone.

For successful management of cultural differences it is important that parties involved make an attempt to understand the non-verbal cues used in a language. Dressing that is considered appropriate in one culture may not be considered appropriate in another. A construction company like Carillion has to find out which dressing code is considered appropriate in the prevailing culture. One must also find what gestures mean in other cultures. This is because gestures have different meanings from one culture to another. What is considered appropriate gesture in one culture may be offensive in another. An innocent gesture, for instance the okay sign, may be an obscenity in another culture.

Different cultures have different views on touching. In some cultures communication involves a lot of touching while others have very little touching. A construction executive in a business deal with another executive who comes from a culture where people rarely touch may find it weird (Kagerer & Gandarilla, 2011, p. 5). To some cultures, standing very close when talking to a stranger, is okay. However, this is frowned upon in some other cultures. Hence it is important for a construction company to understand the various cultural aspects of the prevailing culture. By so doing, it will be able to manage the cultural differences that arise in interacting with various cultures.

Question 2

For international contractors, managing construction in a foreign culture is a difficult task that requires the management to prepare well in advance. How well the company discharges its responsibilities will depend on how the international company is organized (Chan & Tse, 2003, p. 1). For a construction to go on smoothly, there has to be proper management of both human and non-human resources. Proper systems have to be in place to rationalize the processes and the procedures in the construction process.

One concern that faces almost all international companies doing business in foreign countries is differences in language (CEM, 2006, p.3). In china for instance, the main official language is Mandarin. However, there are a number of other languages spoken by the locals. The English spoken or written in China may be difficult for a construction company executive from Britain to understand. This makes it difficult for an international construction company operating in a country such as China to communicate with employees, clients or even business partners. International construction companies taking their operations into China have to seriously consider whether they are going to English as the language of operation and advertising or they will have to use local Chinese languages such as Mandarin (Chen & Partington, 2003, p.1). Choosing to use the language used in the country to carry out its operations means the management will have to assist its foreign employees learn the local language. This not only requires the management of the construction company to build its strategy on the language of the predominant culture, but it also demands that the company provides resources to facilitate the training of employees. This comes as a challenge not only to the management who have allocate the resources but also to the employees of the international company who might have to learn a new language.

Another concern that faces management international construction companies in their quest to deliver on their plans is the differences in technical development in the various countries (Chan & Tse, 2003, p. 3). For instance, a British construction company working in China may find it difficult to find some construction technologies they use back in the home country. This forces the construction companies to either improvise with what they have or import technology from their home countries. This helps in facilitating the workers of the company deliver on the project they are working on. Hence to ensure that the human resource is optimally productive , the management of the construction company has to avail the required technology even if the technology is not available in the foreign country.

For an international construction company operating in a foreign country, say China to provide rationale for their processes and procedures, they need to fully understand the business attitudes of the culture they are operating within (Chen & Partington, 2003, p.1). This requires the management and the employees of the construction company to know the etiquette, the attitudes and the mannerisms expected of them in the foreign culture within which they are operating. This way the construction company is able to compete effectively with other companies in similar businesses, in the foreign country of operation as well as cooperate with other business partners. To enlarge and preserve their client base, the construction company needs to have information concerning those companies, especially the domestic construction companies in the foreign market. The only way to acquire such information is if they have good communication with other players in the construction industry in the market. Hence, it is very important that a construction company knows and respects the business attitudes and etiquette of the foreign culture they are operating within.

An international construction company seeking to rationalize its processes and procedures to succeed in the Chinese market has to take into account that it will have to operate under legislation different from the one at home. Laws that govern construction companies differ from country to country. For instance, laws that govern the construction industry in china may be different from those that govern the same in China (Chen & Partington, 2003, p.2). Failure to adhere to these regulations, may it be out of negligence or out of ignorance can land the management of construction company in trouble with the law. Standards too are different. The international company has to understand that, in foreign countries, it is expected to deliver constructions of international standards. International companies are expected to deliver higher quality constructions compared to local companies. Failure to meet the expectations and the legislation of the foreign market may make difficult for the construction company to carry out their work.

An international construction company has also to deal with human risks on setting up in a foreign culture. The company has to learn to work with and trust people it has never dealt with before. These include suppliers, financial institutions and several other partners it needs to facilitate its operations in a foreign land (Chan & Tse, 2003, p. 4). For instance, a British construction company in China may need to have a local Chinese subsidiary to be allowed to operate in the country. This comes as a challenge to the institution in that it has to risk its existence by involving strangers in its operations. If the untested partners and subsidiaries prove unfit for the job, this affects the performance of the construction company, as well.

Failure to give cultural considerations the weight they deserve can lead to the failure of a construction company to meet its objective in a foreign market. Most construction companies setting up shop in foreign countries like China tend to treat cultural considerations as an afterthought instead of one of the main factors that have to be considered for successful operation of international (Chan & Tse, 2003, p. 3). The truth, however, is that there are cultural implications for all construction companies that set up base in foreign markets. Studies have found that those international construction companies that are good with communication across cultures are at a better position to take advantage of shared information compared to those that do not. With good information concerning the industry, it is easier for the company to grow and be competitive both in the foreign market as well as home market. Interacting with other players in the industry leaves the international construction companies better equipped to achieve their objectives. To improve the cross cultural communication, one has to appreciate and get used to the communication differences; both verbal and non-verbal.

Business cultures vary widely from culture to culture and even within subcultures found within the same culture (CEM, 2006, p.6). There are major deviations on how acts like challenging authority are perceived. In democracies like Britain, challenging authority may not be considered to be much of a crime. In countries like China, however, challenging the authorities is very much frowned upon and can have serious consequences for the construction company. How people relate with members of the opposite sex also varies significantly from one country to another. Whereas some countries are not much into gender equality others take the issue very seriously. Hence a construction with operations where gender equality is emphasized has to take steps to ensure that the gender equality is reflected in the composition of its workforce even if that is not the practice back home. Balancing between the home culture and the prevailing culture is always a challenge to most construction companies with operations outside the home country.

A construction company seeking to set up business in a foreign culture has to come up with well planned processes that to support the implementation of the company’s projects (CEM, 2006, p.7). The processes have to be supported by appropriate technology. For instance, investing in the appropriate software can assist in making collaboration between the international construction company and its subsidiaries easier. This also helps the management have a better overview of the overall operations of the company hence ease decision making not only for the foreign based company, but all other subsidiaries, as well. The company also needs to have data that is relevant to their new country of operation. In most cases, data from the home country is not always usable. Data formats, tools and structures used by the company must be tailored to suit the needs of the new market as opposed to importing tools used in the home market, in the new market. This serves to reduce inconsistencies in the operations of the construction company.

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