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Introduction
The principles of cross-cultural communication are vital for companies in terms of collaborating with international partners. International interaction is typically based on the grounds of mutual interest and respect. Yet, sometimes, it is difficult for one culture to interact with another one due to differences in their language, beliefs, traditions, and other essential cultural components. Considering great China’s influence in the modern world and knowing its extensive history, it may be claimed that it plays a vital role in the international market. Especially, it concerns the traveling area; thus, this paper investigates how culture affects organizational standards in Hong Kong Airlines.
The company was founded in 2006 and was presented as a private airline consisting of 3 partners (Horton, 2019). In order to get acquainted with the culture of Hong Kong Airlines, it is pivotal to know the local culture of Hong Kong, the company structure, and various other factors that may affect it (Chiu-wai, 2019; Ma, 2019). The culture of Hong Kong is a unique combination of Confucian ethics and Western influence, partly due to the years of British colonization (Morris, 2019). Hong Kong Airlines employs a significant number of employees (mostly pilots), so this brings some multiculturalism along with the local culture of Hong Kong (Hong Kong Airlines, 2012; Hong Kong Airlines, 2021). As a result of the deep culture’s analysis, it was established that Hong Kong has borrowed the Chinese management style, which is hierarchical, strict, and based on the proximity of relationships. However, since it is a multicultural company with several Western workers, the organization has significantly adopted a more relaxed way of running a business.
Key Cultural Elements Impacting the Airlines
The culture of Hong Kong is unique, multifaceted, and unusual, formed as a result of a centuries-old synthesis of Eastern and Western traditions. It is necessary to analyze such cultural peculiarities as language, customs, beliefs, and others in order to comprehend Hong Kong Airlines’ approach to business running. Since China has a high context culture, locals use indirect messages, and foreigners can barely understand them. This is also conditioned by the musicality of their language, which is increasingly difficult to learn.
Most of the population of Hong Kong uses the Cantonese dialect during communication. The government has been pursuing a policy of “trilingualism”: Chinese (Cantonese and Putonghua) and English are considered the official languages on the island (Yin, 1995). The inscriptions on most of the signs are also made in both languages. Such an approach complicates the understanding for people who barely know Chinese o English.
Naturally, many years of the colonial regime undoubtedly influenced local ideas, but age-old beliefs, such as respect for age and seniority, are deeply rooted in Hong Kong. Therefore, managers in Hong Kong companies are expected to have a fatherly attitude towards their subordinates (Hong Kong business, no date). When a manager in Hong Kong gives orders, they expect the execution of this order without much debate.
The teaching of Confucius describes the position of a person in society and is a system of behavior and ethics in which great attention is paid to the obligations of people to each other based on their relationships. Confucianism emphasizes duty, loyalty, honor, respect for parents, respect for age, and sincerity, and also attaches great importance to hierarchical relationships. Although not apparent to the casual observer, there are strict rules for proper behavior and how people should act in order to comply with the hierarchy (Deardorff and Jones, 2012). Therefore, the majority of decisions are made by the top managers.
Potential Challenges
Primarily, the style of conducting negotiations and building the stages of establishing relations can be called hierarchical, and it is very formalized. It is almost impossible to bypass the canonical steps of establishing relationships. Moreover, the attempt to violate the canon of business ethics in China will be regarded as impoliteness, lack of education, and unwillingness to establish normal relations (Deardorff and Jones, 2012). In Hong Kong, they value the exact following of a traditional ritual more than the speed and efficiency in reaching agreements.
In Hong Kong, it is psychologically challenging for employees to inform their superiors about bad news or unsuccessful business events. This can affect the transfer of minimal information to the manager, based on which the manager in Hong Kong will make a decision. Such an understatement can result in losses, so if a person makes decisions based on information received from a Chinese manager, they should double-check it.
China is a country of not the most punctual people. The Chinese are sometimes late for a meeting for 20-30 minutes for no apparent reason. They have the right to be late, but foreigners do not have such a right in China; therefore, it is vital to be exceptionally punctual. Being late on the part of the Chinese does not mean anything, but one’s lateness will be perceived as disrespect, and they may consider it as “losing face.”
Besides, there is a threat for Westerners to be misunderstood because the Chinese usually use an indirect communicative style. During the conversation, Chinese businesspeople start talking late on an important topic because they want to create an atmosphere of harmony. Criticism is not formulated directly, but it is transmitted through outsiders or reported with the help of examples so that the interlocutor does not lose his authority.
Potential Resolutions
As in any Confucian community, society in Hong Kong focuses on living and working in a group, with especially strong ties in such a group as the family. If the environment in the group is safe and harmonious, then the team in Hong Kong will work perfectly. In Hong Kong, group goals, views, and needs dominate over personal ones. Therefore, the individual depends on the collective in everything and shares responsibility for everything that happens with it.
In addition, one should be prepared for the fact that in the process of communication in China, great importance is paid to the ability not to speak beautifully but to listen carefully. When conducting negotiations in China, one needs to understand that the decisive factor for success will not be the eloquence but how efficiently one can read “between the lines” (Ouyang, 2020). This happens because the speaker cannot always express his thoughts directly and, if necessary, will be able to save face.
During negotiations in Hong Kong, during the discussion, especially when it comes to large amounts and discounts, the Hong Kong side can switch to a conversation in raised tones which is allowed within the culture. Western partners should stay calm because harmony in Hong Kong is always valued. Besides, many foreign managers seek to conclude a deal as soon as possible and prove themselves during negotiations with the Chinese side talk non-stop for 3-5 minutes, which is aimless (Klisauskaite, 2020). Chinese business people take long pauses to contemplate the statement. Hence, it is essential to avoid non-stop talking and let the partners from Hong Kong consider the ideas suggested before.
Ethical Issues
To successfully build business relations with Chinese business people, it is necessary to adhere to all the features of Eastern business etiquette. It should be noted that business relations in China are exclusively formal, explained by the solid boundary between the business and personal communication. The Chinese are highly distrustful in business, which is why the presence of the head of the company at the negotiations is significant for them, and it is also essential to plan a business meeting for several months. In addition, during the planning of negotiations, it is necessary to send the Chinese partners complete information about the company and its plans on the topic of negotiations.
In China, the head of the delegation always leads the way; they also start negotiations and sum up the results. During negotiations, they can give the right to peck up to their subordinates. They should not interrupt the head of the delegation, but they can ask for permission to supplement what they said. Therefore, Western boards should also adhere to this principle in order not to ruin the deal.
Even though the Chinese use an indirect communication style, they love direct questions. Hence, in order to maximize the objectives, the delegates should be straightforward throughout the discussion to gain many advantages. However, Chinese businessmen would not bear rushing, which means that they make decisions thoroughly, and their partners should never make haste. These are the crucial strategies to sustain the Chinese ethics of negotiation and receive more benefits.
Power and Conflict in the Relationship
There are several sources of power for Hong Kong Airlines. Primarily, there are legitimate power sources, namely Hou Wei, the chairman, and Sun Jianfeng, a CEO. According to French and Raven’s classification, this is a legitimate form of power present in the social hierarchy, cultural norms, and organizational structures. These people are in charge of establishing both internal and external relationships since they rule the company.
When it comes to the rewards, even the CEO needs the consent of the board of directors for specific actions. The power of reward is based on the right of some to offer or refuse material, social, emotional or spiritual rewards to others for doing what they want or are expected of them. In addition, giving and receiving gifts is part of business etiquette and an important business tool. When coming to Hong Kong, a person needs to be ready for a “gift” ritual. Expert power is based on what a person knows, has experience and special skills or talents. Competence can be demonstrated by reputation, authority, confirming expertise, and actions.
Since Eastern culture is built upon mutual respect, coercive power is neglected. Therefore, if the partners are too insistent, the Chinese businessmen may break a deal. In addition, it is unbearable for them to work with employees who gossip, spread rumors, or say unpleasant words about the company (Sacked HK Airlines, 2021). This is conditioned by “loss of the face,” which is unacceptable in Chinese culture. Besides, the Chinese see the lack of compliance with hierarchical values as one of the main problems of the West, which may result in chaos and termination (Sacked HK Airlines, 2021; Yeung, 2017). Finally, if the sides cannot establish a trustful bond, the collaboration will be impossible because the Chinese value transparency (Tang and Kirkbride, 1986). This aspect can be justified by their desire to build a long-lasting connection.
Map Comparison
Ryanair is an Irish airline, the largest budget airline in Europe, founded in 1984 by Irish millionaires Tony Ryan, Chris Ryan, and Liam Lonergan. The maps demonstrate significant differences in leading businesses due to the cultural peculiarities of the countries they were based in, namely China and Ireland. It is necessary to analyze inconsistencies and suggest communication strategies that can help companies avoid problems while collaborating.
Differences
Cultural differences often lead to misunderstandings and affect the relationships that representatives of the two types of cultures will enter into. First, it is observable that Ryanair operates in a country with a low-context culture that presumes a certain distance between working and personal relationships. Therefore, top managers of Ryanair can be strict at work with their subordinates, while in an informal setting, they can act like friends. In Hong Kong, private life and public life are closely linked. There is no clear division because everything is interlinked: work, personal relationships, business, common acquaintances, and other aspects. It means that status and reputation extend to all spheres of life.
Moreover, in high-context cultures, it takes a considerable time before the start of the business part of the relationship since it is necessary to get to know the future partner in a joint business better. Therefore, Hong Kong Airlines’ workers will not immediately view colleagues from Ryanair Airlines as partners (Meyer, 2016). In turn, low-context culture representatives are ready to make a connection with international organizations as soon as possible.
Low-context cultures rely much more on explicit, spoken language to convey thoughts and messages. For this reason, they tend to encourage the ability to express their position verbally accurately. Such skills are less critical in high-context cultures (High and low context, no date). High-context cultures rely less on explicit, spoken language when transmitting thoughts and messages (High and low context, no date). A significant part of the information that needs to be sent in a communicative episode is described by the context parameters (Meyer, 2016). These include the physical situation, status relations between the participants of the interaction, the previous course of the discussion, the future goals of the interaction participants, and others.
The second significant difference refers to the order in the organization. It is visible that Ryanair Airlines belong to the egalitarian order presuming equal social and civil rights for all organization members (Meyer, 2016). It also signifies that status is the minor criterion for social differentiation (What about Hong Kong, no date). Egalitarianism, as a concept of leadership, is not just the absence of a boss and other influential personalities but a persistent, positive emphasis on the fundamental equality of all people and a refusal to obey someone else’s authority (Kovach, 2020). Meanwhile, the hierarchical style of leading, popular in Asian countries, where top positions are taken by people having status, is predominant in Hong Kong (High and low context, no date). Such a hierarchical leader has the authority and right to make decisions that his subordinates must unconditionally carry out.
Considering the Asian hierarchy, it is worth noting that employees make most decisions in top positions. Even though Hong Kong belongs to the collectivist culture, only people with status can resolve significant issues (Meyer, 2016). In collectivist societies, such a system of values prevails. People perceive themselves as part of a social or working group, and the interests of an individual are relegated to the background. Unlike in Hong Kong, Irish people are the representatives of individualist culture. It means that every person’s opinion is valued and taken into consideration.
This classification justifies the trust criterion: in Hong Kong, people trust each other on the basis of relationships, while in Ireland, trust depends on tasks done. A good employee is not a relative but a person who can be responsible for their duties. Moreover, the Chinese avoid open confrontation since they like using non-verbal messages (Gavin, 2021; Meyer, 2016). The Irish instead would prefer to express the opposite opinion because they belong to the high-context culture.
Challenges and Solutions
The primary challenge these airlines companies may face while negotiating a deal refers to coming to a conclusion. The Chinese may give indirect feedback, while the Irish will not perceive it as a solid “no.” To solve the communicative issue, both parties should be ready to exchange transparent messages and provide each other with clear feedback (Han, 2020). Even though this may be difficult for Hong Kong Airlines’ representatives, such interaction will be based upon trust and transparency, which will guarantee the deal’s success.
Additionally, in low-contextual cultures, interpersonal relationships are often temporary and superficial. People easily enter into friendly relations and just as quickly interrupt them. This can be an impediment for the Chinese who prefer establishing a long-lasting relationship. Furthermore, the Chinese do not start business negotiations right away because they want to make sure everything is set for successful discussion. The Europeans prefer negotiating business questions as soon as they enter the office. This can be solved by talking to each other before the official debate takes place.
It is not worth trying to win the sympathy of a Chinese during business negotiations through personal communication since the Chinese do not see a person in foreign partners but representatives of companies. A clear statement of the essence of the case will give a more significant result than cordial, friendly communication (Wong, 2016). Nevertheless, the Chinese tend to establish informal social relations with foreigners, being interested in family and children’s issues, doing this, as a rule, sincerely.
Both cultures are close to the linear perception of time; hence, it would be effective for them to be punctual. For representatives of monochrome cultures, an essential psychological attitude in business is consistency and concentration on one thing at any given moment (Wong, 2016). Accuracy and punctuality are considered as a virtue and an obligatory attribute of a serious businessman (Lee, 2017). Simultaneous occupation with several questions is regarded as the inability to organize oneself.
In general, despite profound disparities in cultural views on business, it can be stated that Eastern and Western cultures can communicate efficiently if they consider each other’s interests. The Irish businesspeople should be ready to listen to the Chinese carefully, while the latter must make a decision more quickly. However, the decision-making process may take a long time due to cultures’ different time perceptions.
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