Date post: | 16-Dec-2014 |
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Cross-cultural Management
A case study Presentation
On Sweden Company & their subsidiary in China
Group Members:Sunny SharmaLeonid ValdMandeep AulakhQiyue ZhouRaghav Mehra
Culture…“Software of mind”- HofstedeMental programmingInfluence organizations – both at macro
and micro level
Cross-Cultural ManagementManaging culture across the boarders Because of globalization and the rapid
development of economicsCross-Cultural Management deals with:
leadership Style Motivational approaches Organization structure Strategies
Differences between Sweden and Chinese cultures
Swedes• Egalitarian in nature
• Competition is not encouraged
• Maintain eye contact coupled with
hand shaking when greeting
• Business wear is conservative
• Usually cut and dried
• Punctual
• Meetings governed by an agenda
• Status is not very important
• Treat all people with equal respect
and deference
• Consensus driven
Chinese• Collective society
• Look towards the ground when
greeting
• Business attire is conservative and
unpretentious
• Appointments are necessary
• Punctual
• Pay great attention to the agenda
• Rank is extremely important
• Prefer face to face meeting
•Working through an intermediary
•Non-confrontational
Case Study
On Monday the new design of the product was sent.
Waiting for a production ready model by Friday.
Sweden China
Email on Thursday saying that there was 1mm error.
What should they do?
ConfusionSweden
Do they need to ask such a question? Why are they waiting for orders instead of taking
initiatives?
China◦ They knew it would be better to provide a standard
model. ◦ However, they decided to notify the Swedish manager
first and let him to decide. It is the Chinese way of showing respect to superior.
National Culture Dimensions Index of Sweden and China
PDI IDV MAS LTO UAI0
20
40
60
80
100
120
31
71
5
33 30
81
20
66
118
39SwedenChina
(Hofstede resources page)
MANAGEMENT STYLES
SWEDEN Scenario
• MANAGERS - MEDIATORS• LOW POWER DISTANCE• LOW HIERARCHY LEVEL• MANAGERS EMPOWER
EMPLOYEES AND UTILIZE THEIR KNOWLEDGE
CHINA Scenario
• HIGH POWER DISTANCE • HIGH HIERARCHICAL LEVEL• COLLEAUGES FOLLOW
THE DECISIONS MADE BY SUPEROIR
• MANAGERS ARE EXPECTED TO KNOW EVERYTHING
Staff BehaviorWhat is valued through work ?
Sweden
proud feeling
The job has “became a part of
identity”.
welfare
China
material achievement
Power
Competition
Performance
• Life pressure
• Salary
• The different individualism
scores
Sweden• discussion • comprehensive
decisions
China• Wait for the decision from
managers. • Afraid of expressing
themselves• No suggestion
What causes difference in staff behavior?
Addressing the Objectives, The Mission, The Vision, Slogans
Swedish - Informal and Formal Mode China – Formal Mode
ReportingE-mailing and Memo’s
Communication System