Intercultural 2. plus Management and Organization Concepts

Dimensions of culture based on Hofestede
Individualism vs collectivism (IDV), Acceptance of power distance(PDI), Masculinity vs femininity (MAS), Avoidance of uncertainty (UAI), Long-Term Orientation (LTO)
Criteria for the internationality of enterprises
Number of operations in important economic regions of the world, number and geographic-cultural distance of the countries, number of foreign managers in management of the company, consideration of local customer requirements
Pluralistic-Typological Theory (Berry 1980)
retaining own cultural identity and/or maintain and expand other cultures -> integration, sepreation, assimilation, marginalisation
Four Strategic Basic Orientations
(Ethnocentric)
Transfer mareting from the home market to foreign markets without any changes , export through export department
Four Basic Strategic Orientations (Polycentric)
Handle each country with a specific marketing mix, relatively autonomous subsidiaries
Four Basic Strategic Orientations (Geocentric)
Process a gobal market in a standardised way, decisions made in the HQ, foreign subsidiaries only execute
Four Basic Strategic Orientations (Regiocentric)
From homogeneous world regions and process them with a standardised marketing mix, Matrix organisation with balanced decision-making
EPRG Model
Orientation (ethno, geo..)and characteristics (complexity of organisation, authority of decision making, mangaement and control bodies, geographic identifcation..)
Ethnocentrism
People conduct themselves in an thnocentric way when they apply standards in their own culture, from their own cultural background, in order to judge people from other cultures and to draw conclusions about them.
Ethnocentricism vs Ethnorelativism
Attitude toward difference , Ethnocentric (Denial, Defence, Minimalisation) phases, Ethnorelative Phases (Acceptance, Adaption and Integration)
Ethnocentric
Homeland-oriented management

Defined/developed by parent company
-> all important strategies for business segments, divisions and service, ->organisational and controlling instruments, ->Coorporate culture
Transformed to respective branches
Harmonisation function for the benefit of parent company values

Ethnocentric (Advantags and disadvantages)
Advantages: Central Control, Energy Bundling for the development of the market with internationally designed products

Disadvantages:
Lack of focus on the maximization of regional potential
Lack of quick reaction to regional social changes

Polycentric
Host-oriented, large scale decentralizatiion of respnsibilities and leeway in decisions at subsidiaries , National filling of management functions, consideration of nationall success factors on the market, complicance with country-specific, rules and prespect for cultural differences
Polycentric (Advantages, Disadvantages)
Advantages:Sensitivty for the regional market, harmony in the management processes, eplyoee loyaly is achieved in accordance with counrty-specific rules

Disadvantages:
Breakdown of core funcions, Defective usage of synergies, reduction of cost advantages

Geocentric Definition
Globally oriented
Goal: Finding compromises between counrty-cultural factors and internationally applicable management principles
Most Multinational Companies use this strategy for orientation
Business and Service Strategies: developed andd implemented in international teams
Management Style Preferences in Different Cultures ( USA etc)

Participatory Management Style

States: USA, Netherlands, Sweden, UK

Participatory Management Style:

Management through joint preparation of decisions, Decision making and management bodies are largely prevented from abuse of power by formal norms, Low need for security among employees

Management Style Preferences in Different Cultures (Belgium, Germany, Spain ..)

Paternal Management Style

States: France, Spain, Italy, Australia, Germany, Belgium..

Paternal Management Style:

Management primarily interested/focus on advice and the opinion of the other employees
Average degree of delegation
Employees expect no high level of decision autonomy

Management Style Preferences in different cultures

Authoritarian Management Style

States: Greece, Turkey, South America, Malysia, Thailand, Indonesia, Arab countries, India , Pakistan

Authoritarian Management Style:

Very low degree of delegation, central-decision making
Status symbols and privileges for management are visible and legitimate
Authority is not quesioned, but accepted
Hardly any information between the levels

Central Problems areas in intercultural contacts
Employee Management, Decision-Making processes, Performance Reviews, Work motivation, Negotiation Style, TIme Concept, Relationships to Space, Social Distance Regulation
Evaluation of Performance by western standard
– employee performance recordable, improvement in performance through ” direct feedback” from superiors

In invidualistic societies frequently practiced, socially acceptable

In collectivist societies: transparent performance checks destroy confidence plus harmony of interpersonal relationships

Management by Objectives
MBO (American Model)
MBO (American Model)
-> employee negotiates objectives with superior
Condition: Cultural environment that offers the possibility of arranging work objectives through partially controversial discussions between levels of hierarchy

Environment is characterized by:
Medium/Low power distane
Low avoidance of uncertainty

Management by Objectives, Transferability of the Model to Germany
In Germany:Management by Objective was adapted to the more formalized
-> Management by agreement on objective

{In countries with HIGH POWER DISTANCE INDEX: MBoO is not used successfully, sinc eit is uncommon, for cultural reasons, to contradtict your superior or to negotiate with him! }

The Siemens Competency Framework for interucultural compentency
Intercultural Competency is made by a set of knowledge, experience, capabilities which enables the delegate to interact efficiently, adequately and personally satisfying with people from a different culture. (Kuehlmann, 1995)

-The basics: Knowledge, Experience
The essentials: Capabilties
= intercultural competency

Capabilities in SIemens Competency Framework for intercultural competency
Change Orientation, Ability to learn, assertiveness, Communication Skills, Networking Skills, Situational Sensitivity
Intercultural Competency (Based on Bolten 2000)
Distinguishes between professional competency, Strategic competency, Social Competency, Individual Competency
– Inside circle -> Intercultural Action
Ability to describe and explain with respect to won, foreign and inter-cultural processes, knowledge of foreign languages

– Meta communication skills, intercultural willingness to learn, Durability Tolerance of ambiguity
Distance between roles, Polycentrism