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Israel Hofstede

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Israel Cultural Dimension

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Israel Hofstede

  1. 1. Israel: The Promise Land
  2. 2. Agenda1. Quick Facts – History, People, Artifacts2. Cultural Metaphor –Cactus & Trompenaar’s3. Business & Social Ethics4. A look at an Israeli Company
  3. 3. Quick Facts - Geography Land of the Bible and historic homeland of the Jewish people Middle East o Along eastern coastline of the Mediterranean Sea Four main cities o Jerusalem o Tel Aviv o Haifa o Be’er Sheva
  4. 4. Quick Facts - Jerusalem
  5. 5. Quick Facts – Tel’aviv
  6. 6. Quick Facts – Haifa & Be’er Sheva
  7. 7. Quick facts - Geography Land Features o North - forested highlands of Galilee o Center - rocky peaks of the Samarian and Judean mountain ranges descend sharply to the semi-tropical Jordan Valley and the Dead Sea, the lowest place on earth o South - mountainous desserts Climate – temperate; characterized by much sunshine with a rainy season from November to April.
  8. 8. Quick facts - Jewish History /TimelineAncient Jews are frompeople living in the‘fertile crescent’,bounded by 3 rivers(nile, tigris &euphrates).Ancient Jews are ofHebrew descent. Israelis divided in 12 tribes(12 sons of Jacob).Jacob being son ofIsaac (son of Abraham)
  9. 9. Quick facts - Jewish History /Timeline3000 BCE Abraham led Israelites to Egypt because of Famine. Enslaved by Egypt (400 yrs of slavery) ; Ten CommandmentsAfter several Moses took Israelites out of Egypt back tocenturies Israel; from bondage to freedom, and led them back to the Land of Israel. They wandered through the Sinai desert, where they were welded into a nation.1000 BCE United Israel (Monarchy) set under Saul (1st king of Israel), Davind (2nd king), and Solomon
  10. 10. Quick facts - Jewish History /Timeline900 BCE United Israel Split into two: North (Israel ) & South (kingdom of Judah) – when Solomon died, bec northern tribes refused leadership of Solomon’s son700 BCE Israel overrun by Assyrians. People dispersed. Only Judah remained500 BCE Judah conquered by Babylonia. People exiled to Babylonia.500 BCE – Persian Rule. Temple of Judah restored. Many60 BCE returned to Israel60 BCE – •Rome subdued Judah exiling many Jews.1948
  11. 11. Quick facts - Jewish History /Timeline636-1091 Arab Rule1918-1948 British RuleMay 1948 Declaration of the State of Israel Zionism movement Religious affiliation and practice is a matter of personal choice. 77 % Jews, 16 % Muslims, 2 % Christians (mostly Arabs), 5% others Pluralistic framework - various communities maintain their own religious, educational, cultural and charitable institutions.
  12. 12. Quick facts - Cultural Issue - ZIONISM Emerge in late 19th century, because of the hostility ofthe NAZI’s to 6M Jews, and threats from foreign ARABcountries, ZIONISM was formed; Zionism is the national movement for the return of theJewish people to their homeland, the recognition of ‘JewishState’, and to re establish Jewish peoples right to nationalexistence & independence; It attained unprecedented success in manufacturing, Research & Development, business, banking, the arts, medicine
  13. 13. Quick facts - Jewish History /VIDEO
  14. 14. Quick facts - People & Language People o 7Million – 80% Jews, 20% non-Jews Language o Hebrew, Arab / “doogri” style of communication Currency - Shekel Employment - Extensive labor laws Political structure o Parliamentary Democracy –Separation of powers bet Executive, Legislative, Judicial o Role of president is ceremonial ( Unity of State) o President elected by Knesset o Knesset - 120 member Legislative Body Industry o Focus on manufacturing scientific & innovative products o Diamond
  15. 15. Quick facts - People & Language President Katsav Eight President of the State of Israel President Shimon Peres Convicted 7 yrs Current President of imprisonment due to the State of Israel rape of staff & others, Nobel Price for Peace, ‘equality for all’ 1994
  16. 16. QUICK FACTS – snapshots Dead Sea Old Rupees Bethlehem Jordan River Pitaka Golgota Jesus Tomb Galilee
  17. 17. QUICK FACTS - snapshotsLlama Tel_Aviv Kipot-headgear Talit-Prayer shawl WediingSermon on the mount Wailling wall Jafa- Shopping Model
  18. 18. QUICK FACTS - snapshots DIAMONDS PEOPLE
  19. 19. QUICK FACTS - snapshots Military Aircraft Industry
  20. 20. Cultural Metaphor: Cactus Plant Native Israeli is referred to as a Sabra form of cactus, Opuntia ficus-indica or ‘cactus pear’  prickly on the outside  very soft , sweet, and meaty inside  It can survive the dessert  They grow in clusters  Not expensive, it can be cooked and eaten  It has many medicinal properties  It produces colorful flowers (buds can be eaten)
  21. 21. Cultural Metaphor: Cactus Plant Cacti are flowering plants. They grow slowly, their life cycles are the same as for any other flowering plant. Germination Cactus seeds are often distributed by birds, which are attracted to the fruit. Vegetative Growth It takes five to 10 years for small species to reach flowering size. Fruit Formation Cactus fruits are seed-filled berries. They form at the base of the flowers and are often brightly colored and sweet to attract birds Harvest stage Harvest the leaves & buds (salad / medicine)
  22. 22. Cultural Metaphor: Cactus Plant
  23. 23. Cultural Metaphor: Cactus PlantTROMPENAAR’S CULTURAL FRAMEWORK Details CultureRelation • Sabra Cacti thrive in clusters Collectivistship with • Branches hold the leaves & fruit togetherPeople • War & Religion (Judaism) brought the Israelites together • Zionism – movement to bring Israelites from various parts of the world back to Israel • Sabra Cacti, to be useful, should undergo Universal specific growth process from a) germination, b) vegetative growth, c) flowering, d) fruit formation, e) harvesting • Israelite’s follow strict rules in employment, in running their government, in manufacturing and R&D • Old testament vs New testament
  24. 24. Cultural Metaphor: Cactus PlantTROMPENAAR’S CULTURAL FRAMEWORK Details CultureRelation • Sabra Cactis despite looking stiff & their Emotionalship with leaves flat face, produces beautiful buds &People flowers showing it’s inner self • Sufferings from War & Religion influenced Israelite’s to be more emotional rather than neutral (Israelites are known for ‘Doogri’ style of communication – simple & straightforward) • With the intense discipline of the Israelite’s Achievement in manufacturing and R&D, promotion within a company is based on competency rather than Praternal relations
  25. 25. Cultural Metaphor: Cactus PlantTROMPENAAR’S CULTURAL FRAMEWORK Details CulureRelationshi • Israelites follow strict process in Monochronicp with Time manufacturing (aircrafts & weapons), & in but can be processing diamonds - Monochronic polychronic • However, Sabra Cacti is clustered, sweet sometime and soft inside (passionate and having ‘one big family’) – prone to be Polychronic • Life of Sabra cacti is 20 years (long term) Long-term, • Israelites known for R&D (technology Future development) – long term process before you can invent & commercialize
  26. 26. Cultural Metaphor: Cactus PlantTROMPENAAR’S CULTURAL FRAMEWORK Dimensions AssumptionsRelation • Sabra Cactus is sweet and soft inside (a Monochronicship with metaphor of being passionate and having but can beTime ‘one big family’ polychronic • Since family is important to Israelites, this sometime can affect their being ‘monochronic’ • Israelites follow strict process in manufacturing • Though Sabra can be harvested after 8 Long-term, mos, it can survive the dessert for a long Future time • Israelites known for R&D (technology development) – long term process before you can invent & commercialize
  27. 27. Cultural Metaphor: Cactus PlantTROMPENAAR’S CULTURAL FRAMEWORK Dimensions AssumptionsRelation • Sabra cacti are able to thrive the dessert Internalship with despite severe conditions. Sabra cacti isNature a symbol of Israelites as survivors & perseverance; • In manufacturing science / R&D Industries results are from internal planning & effort rather than from nature • Prickly Sabra Cacti – a way to protect its High soft leaves Uncertainty • History (Nazi & Arab neighbors) contributed to Israelites to be always on guard (Zionism, military defense) • Manufacturing science has no room for failure
  28. 28. Break!! MintIsrael Snack Foods Lemonade
  29. 29. Social & Business Ethics  Appointment • Make an appointment well in advance. Be punctual. • Appointments are at working hours, mostly 9:00 AM – 12:00 noon and 2:00 PM – 5:00 PM. • Business hours vary depending on owner’s religion. • During appointments, the host usually receives and accompanies the guest to the office door. • The handshake is common. Social hug or kiss may take place between people that have known each other previously. • The host offers a drink, cold or hot. Small talk occurs in accordance with the time frame.
  30. 30. Business Attire  Dressing - • for women, Conservative dress in countryside or street wear in cities and large towns. • For men, trousers and a long-sleeved shirt. Jacket and tie are required for business meetings as sign of respect. Tux not common; • In the isolated ghettos of fundamentalism wearing a revealing outfit may be greeted with loud disapproval from both Orthodox Jews and traditional Muslims.  Conversation • Welcome topics : American and Israeli politics, and sports (soccer, basketball and swimming) • Topics to be avoided : Religion, US aid to Israel • Address Israelis by their professional titles or a courtesy title such as "Mr.," "Mrs.," "Miss," and their surname. • Israeli Arabs have traditional Arabic names
  31. 31. Conversation  Gifts • Gifts in companies or organizations are not allowed • If invited to an Israeli home, good gift choices include a simple arrangement of flowers, a book, box of candy or a TY card  Others • Israeli Arabs frequently refer to revered elders as "Abu," which means "father of" in Arabic. • The Hebrew term "giveret" means "Miss," while "adon" means "Mr." • In business invitations, the first name will be that of the business partner and then his spouse. In a social invitation, the lady comes first and then the spouse.
  32. 32. A look at an Israeli Company Israel Aircraft Industries Ltd. Largest Aerospace Corporation in Israel
  33. 33. Military Aircraft Industry -video
  34. 34. Company Profile• Globally recognized leader in developing military and commercial aerospace technology• IAI is versatile, highly motivated, innovative and competitive• The companys ambition is to continue to initiate and achieve technological breakthroughs that characterize the best in the industry
  35. 35. Organizational Chart
  36. 36. Divisions of the Companyo Communications Directorateo Corporate Marketingo Corporate R & Do Human Resourceo General Counselo Internal Audito Quality Managemento Procurement and Logistics
  37. 37. Company Vision
  38. 38. Company Vision• Together we will grow the core business of IAI for the benefit of our customers, our people and our owners.• This growth will be achieved through innovative technological systems, products and services of the highest quality.• Our people will grow through a climate of complete integrity and excellence in everything we do that will become a model for others.
  39. 39. Company MissionDELIGHT CUSTOMERSSatisfying our customers is the reason for our existence and thesource of our growth.INNOVATIONWe will encourage all the people in IAI to seek innovative ideas ineverything that we do. Our technology edge is a foundation forsatisfying customers and for our growth.PEOPLE TREATED AS ASSETSBy working together, the people are the key to our growth. Theyare the companys most valuable asset and will always be treatedas such.ONE COMPANYIAI is one company operating as a unified organization andappreciated as such by all who do business with us.
  40. 40. Commercial Info• Company sales in the last 5 years was 10.8 billion U.S $ and net profit was 323 million U.S $• Net profit total US$ 25.0M in 2005 as compared to USD 5.0M• Good cash flow, low debt ratio• AA rating by Maalot – the Israeli securities rating company
  41. 41. Code of Business Conduct• Documented principles and directives• Documented Code of Business Conduct• Documented Companys policy – uphold the laws, the guidelines and the principles to which it is obligated in its activities, to defend the rules of ethics and to implement high standards for business management.
  42. 42. Environmental Policyo committed to implementing an Environmental Policy that meets the Environmental Management System requirements of ISO14001.o responsibility for Environmental Issues rests on both the Managers and Employees of the Lahav Division.o Environmental Management Program includes training plans, for raising the environmental awareness and guidance of all employees.
  43. 43. Partners and Customers Aerospatiale Airborne Express (ABX) Iberia Airlines of SpainAir France IMI-Israel Military Industries KLM Royal Dutch AirlinesAir India Lear Astronics CorporationAntenna Hungaria Litton IndustriesBell Helicopter Lockheed-Martin CorporationTextron Boeing Company LufthansaBritish Aerospace German AirlinesBritish Airways Matra Marconi SpaceContinental Airlines McDonnell Douglas CorporationDaimler-Benz Aerospace Polar Air CargoDassault Electronique Elbit Ltd. Pratt & Whitney CanadaElisra Electronic Systems Rafael Armament DevelopmentEl-Op Electro-Optics Industries AuthorityENAER de Chile Raytheon Aerospace Raytheon E-SystemsGEC Marconi Systems Rohr Inc. Sikorsky Aircraft Corp.General Electric Sogerma-SoceaGeneral Dynamics South African AirwaysHewlett-Packard Sumitomo Electric IndustriesHindustan Aeronautics Ltd. (HAL) Thomson – CSF Transaero Airlines TRW United Parcel Services of America (UPS)
  44. 44. Organizational CultureVery Low in Power distanceIAI employees’ level of acceptance of the unequal distributionof power which is very evident in the flat organization.Very High Uncertainty avoidanceEmployees feel threatened by ambiguous situations thus thehighly documented processes apparent in the Code of BusinessConduct.Individualism & CollectivismEmployees look after themselves and their immediatesubordinates vis-a-vis the goals of the organization as apparentin their company vision.Masculinityrefers to the degree of traditionally “masculine” values thatprevail in the organization… but mainly attributed to the natureof the business. Women are treated almost equally.
  45. 45. Organizational CultureAssertiveness Tough and competitive as a team.Long Term Orientation Future-oriented behaviors such as planning and investing in the future as shown in the Companys ambition to continue to initiate and achieve technological breakthroughs that characterize the best in the industry.Achievement OrientationMeasures how important performance improvement andexcellence is in a society.Humane Orientation Encourages and rewards people for being fair, altruistic, generous, caring, and kind.
  46. 46. END – THANK YOUIsrael Diamond Trading Floor

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