Israel Hofstede

Israel: The Promise Land

Agenda

1. Quick Facts

– History, People, Artifacts

2. Cultural Metaphor

–Cactus & Trompenaar’s

3. Business & Social Ethics

4. A look at an Israeli Company

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

Quick Facts - Jerusalem

Quick Facts – Tel’aviv

Quick Facts – Haifa & Be’er Sheva

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.

Quick facts - Jewish History /Timeline

Ancient Jews are from people living in the ‘fertile crescent’, bounded by 3 rivers (nile, tigris & euphrates). Ancient Jews are of Hebrew descent. Israel is divided in 12 tribes (12 sons of Jacob). Jacob being son of Isaac (son of Abraham)


3000 BCE Abraham led Israelites to Egypt because of Famine. Enslaved by Egypt (400 yrs of slavery) ; Ten Commandments

After several centuries

Moses took Israelites out of Egypt back to 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

900 BCE

United Israel Split into two: North (Israel ) & South (kingdom of Judah) – when Solomon died, bec northern tribes refused leadership of Solomon’s son

700 BCE

Israel overrun by Assyrians. People dispersed. Only Judah remained

500 BCE Judah conquered by Babylonia. People exiled to Babylonia.

500 BCE – 60 BCE

Persian Rule. Temple of Judah restored. Many returned to Israel

60 BCE – 1948

•Rome subdued Judah exiling many Jews.


636-1091 Arab Rule

1918-1948 British Rule

May 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.

Quick facts - Cultural Issue -

Emerge in late 19th century, because of the hostility of

the NAZI’s to 6M Jews, and threats from foreign ARAB countries, ZIONISM was formed;

Zionism is the national movement for the return of the Jewish people to their homeland, the recognition of ‘Jewish State’, and to re establish Jewish peoples right to national existence & independence;

It attained unprecedented success in manufacturing,

Research & Development, business, banking, the arts, medicine

ZIONISM

Quick facts - Jewish History /VIDEO

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

Quick facts - People & Language

President Katsav Eight President of the

State of Israel

Convicted 7 yrs imprisonment due to rape of staff & others,

‘equality for all’

President Shimon Peres

Current President of the State of Israel

Nobel Price for Peace,

1994

QUICK FACTS – snapshots

Dead Sea Old Rupees Bethlehem Jordan River Pitaka

Golgota Jesus Tomb Galilee

QUICK FACTS - snapshots

Llama Tel_Aviv Kipot-headgear Talit-Prayer shawl Wediing

Sermon on the mount Wailling wall Jafa- Shopping Model


DIAMONDS

PEOPLE


Military Aircraft Industry

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)


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)



TROMPENAAR’S CULTURAL FRAMEWORK

Details Culture

Relation

ship with

People

• Sabra Cacti thrive in clusters

• Branches hold the leaves & fruit together

• War & Religion (Judaism) brought the

Israelites together

• Zionism – movement to bring Israelites from

various parts of the world back to Israel

Collectivist

• Sabra Cacti, to be useful, should undergo

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

Universal



Details Culture

Relation

ship with

People

• Sabra Cactis despite looking stiff & their

leaves flat face, produces beautiful buds &

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)

Emotional

• With the intense discipline of the Israelite’s

in manufacturing and R&D, promotion within

a company is based on competency rather

than Praternal relations

Achievement



Details Culure

Relationshi

p with Time

• Israelites follow strict process in

manufacturing (aircrafts & weapons), & in

processing diamonds - Monochronic

• However, Sabra Cacti is clustered, sweet

and soft inside (passionate and having

‘one big family’) – prone to be Polychronic

Monochronic

but can be

polychronic

sometime

• Life of Sabra cacti is 20 years (long term)

• Israelites known for R&D (technology

development) – long term process before

you can invent & commercialize

Long-term,

Future



Dimensions Assumptions

Relation

ship with

Time

• Sabra Cactus is sweet and soft inside (a

metaphor of being passionate and having

‘one big family’

• Since family is important to Israelites, this

can affect their being ‘monochronic’

• Israelites follow strict process in

manufacturing

Monochronic

but can be

polychronic

sometime

• Though Sabra can be harvested after 8

mos, it can survive the dessert for a long

time

• Israelites known for R&D (technology

development) – long term process before

you can invent & commercialize

Long-term,

Future



Dimensions Assumptions

Relation

ship with

Nature

• Sabra cacti are able to thrive the dessert

despite severe conditions. Sabra cacti is

a symbol of Israelites as survivors &

perseverance;

• In manufacturing science / R&D Industries

results are from internal planning & effort

rather than from nature

Internal

• Prickly Sabra Cacti – a way to protect its

soft leaves

• History (Nazi & Arab neighbors)

contributed to Israelites to be always on

guard (Zionism, military defense)

• Manufacturing science has no room for

failure

High

Uncertainty

Break!!

Israel Snack Foods Mint Lemonade

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.

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

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.

Largest Aerospace Corporation in Israel

Israel Aircraft Industries Ltd.

A look at an Israeli Company

Military Aircraft Industry -video

Company Profile

• Globally recognized leader in developing military and commercial aerospace technology

• IAI is versatile, highly motivated, innovative and competitive

• The company's ambition is to continue to initiate and achieve technological breakthroughs that characterize the best in the industry

Organizational Chart

Divisions of the Company

o Communications Directorate o Corporate Marketing o Corporate R & D o Human Resource o General Counsel o Internal Audit o Quality Management o Procurement and Logistics

Company Vision

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.

Company Mission

DELIGHT CUSTOMERS

Satisfying our customers is the reason for our existence and the source of our growth.

INNOVATION We will encourage all the people in IAI to seek innovative ideas in

everything that we do. Our technology edge is a foundation for satisfying customers and for our growth.

PEOPLE TREATED AS ASSETS By working together, the people are the key to our growth. They

are the company's most valuable asset and will always be treated as such.

ONE COMPANY

IAI is one company operating as a unified organization and appreciated as such by all who do business with us.

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

Code of Business Conduct

• Documented principles and directives

• Documented Code of Business Conduct

• Documented Company's 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.

Environmental Policy

o 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.

Partners and Customers

Iberia Airlines of Spain IMI-Israel Military Industries KLM Royal Dutch Airlines Lear Astronics Corporation Litton Industries Lockheed-Martin Corporation Lufthansa German Airlines Matra Marconi Space McDonnell Douglas Corporation Polar Air Cargo Pratt & Whitney Canada Rafael Armament Development

Authority Raytheon Aerospace Raytheon E-Systems Rohr Inc. Sikorsky Aircraft Corp. Sogerma-Socea South African Airways Sumitomo Electric Industries

Thomson – CSF Transaero Airlines TRW United Parcel Services of

America (UPS)

Aerospatiale Airborne Express (ABX) Air France Air India Antenna Hungaria Bell Helicopter Textron Boeing Company British Aerospace British Airways Continental Airlines Daimler-Benz Aerospace Dassault Electronique Elbit Ltd. Elisra Electronic Systems El-Op Electro-Optics Industries ENAER de Chile GEC Marconi Systems General Electric General Dynamics Hewlett-Packard Hindustan Aeronautics Ltd. (HAL)

Organizational Culture

Very Low in Power distance IAI employees’ level of acceptance of the unequal distribution of power which is very evident in the flat organization.

Very High Uncertainty avoidance Employees feel threatened by ambiguous situations thus the highly documented processes apparent in the Code of Business Conduct.

Individualism & Collectivism Employees look after themselves and their immediate subordinates vis-a-vis the goals of the organization as apparent in their company vision.

Masculinity refers to the degree of traditionally “masculine” values that prevail in the organization… but mainly attributed to the nature of the business. Women are treated almost equally.

Organizational Culture

Assertiveness

Tough and competitive as a team.

Long Term Orientation Future-oriented behaviors such as planning and investing in the future as shown in the Company's ambition to continue to initiate and achieve technological breakthroughs that characterize the best in the industry.

Achievement Orientation Measures how important performance improvement and excellence is in a society.

Humane Orientation

Encourages and rewards people for being fair, altruistic, generous, caring, and kind.

END – THANK YOU

Israel Diamond Trading Floor

Education

Israel Hofstede