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CCM- Finland
Presented by:
Aditi AgarwalToral Jain
Rashi Bansal
Nidhi KumarMansi Arora
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Cross Cultural Nuances
The Finns are egalitarians and as such do not appreciateshows of ostentation. For example, over dressing would
be seen as a sign of arrogance. Most Finns do not like loud talking in public or 'over
energetic' behavior. The folding of the arms is viewed as arrogant. Someone
tossing their head at you they are saying "come here." Physical contact such as back slapping or putting hands
on shoulders is not generally done. Avoid talking withyour hands in your pockets as this is considered toocasual and bordering on rude.
Men should remove hats when entering a building ortalking to someone.
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Meeting & Greeting
A firm handshake is standard for both genders
in Finland. When being introduced to a group,shake hands with women first.
People should be addressed by their titlefollowed by surname. When unaware of a title
then Mr., Miss or Mrs. is fine. Wait for the otherparty to initiate the move to first names.
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Business Meetings
Business meetings should be arranged and confirmed in advance,usually in writing. The working day changes according to theseason; in winter offices will open from 08:00 - 16:15 where as in
summer it will be 08:00 - 15:15. Finns' holiday months are July,August and September.
Business cards should be brought to any meeting and handed out toeveryone present. Finns like to get straight down to business; assuch there will be little small talk before a meeting. Always come toa meeting well prepared as your hosts will want to see an organized,logical and fluent presentation.
Things to look out for include giving off any sense of superiority. Insuch an egalitarian society shows of this sort are frowned upon.Finns often have long periods of silence; don't be put off as it isnormal. Always look people in the eye when talking.
Avoid showing emotions (frustration, anger, etc) and never becometoo informal.
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COMMUNICATION AND NEGOTIATION
Relationship building often takes place outside
the office: in a restaurant or the sauna. Never turn down an invitation to use the sauna.
There will be minimal small talk.
Finns prefer to get down to business quickly.
Finns are direct/ straightforward. They say whatthey think and expect you to do the same.
Maintain eye contact while speaking.
They speak very fluent English.
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NEGOTIATION
When making a bid, it is important that your
first offer is realistic. Finns do not expect to negotiate a great deal on
price.
In negotiation situations, cultivate your own
level of comfort in silence.
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Finns Stand by their Word
Finns are considered modest, honest and reliable. Finns take spokenwords seriously and expect others to do so, too. Take a bull by itshorns and a man by his word is an old Finnish saying. A Finns
yes is a yes and a no is never a perhaps. Verbal agreementsand promises are considered conclusive so you should not make anyinvitations or engagements too lightly. When an agreement isreached and it is sealed by a handshake, it is a Deal! Of coursewritten agreements are always made, too. Their role is more or lessto clinch the deal - and of course to act also as a legal document incase of conflict.
Finns take punctuality for business meetings seriously and expectthat you will do likewise; call if you will be more than five minuteslate.
Business meetings are often set up by e-mail, even by SMS-messages. Be on time and wear business clothes. Meetings tend tobe brief and to the point.
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DECISION MAKING
Valuing consensus-oriented decision-making processes reduces thepower of the leader.
It involves worker participation at all levels. An overall participative climate enhances worker satisfaction more
than occasional participation on specific decisions or goal setting The European approach fosters a strongly participative decision-
making environment, with operational decisions generally pusheddown to the lowest level.
-(Collins 1997)
Decisions can be made quickly and implemented as swiftly. Finns are very concerned with quality. Finns are interested in long-term rather than short-term goals. Finns are quiet. People are expected to contribute to a meeting or
conversation only when they have something of important to say.
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Bribery and Corruption
The Nordic countries are well ordered, advanced,affluent societies - some would call them enlightened -
with a system of education and welfare, and anunderlying ethic of honest toil that together militateagainst corruption. In the global Corruption PerceptionIndex made annually by Transparency InternationalFinland has been ranked first (5 times) or second (4times) since 1997.
Both giving and accepting a bribe is considered acriminal act under the Criminal Code.
The sanctions range from fines to imprisonment for upto four years, depending on the seriousness of the crime.Only a few persons are convicted of bribery each year inFinland.
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Role of Women in Finnish Business
Women have historically played a major role in
business life. Many women can be found in the most senior
positions in large Finnish companies and thisnumber seems to be increasing year on year.
Women
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LEADERSHIP STYLE
Finn executives are using consensus in managing and leading theirworkforce.
Finnish leaders are strong authorities who ultimately bear theresponsibility and are able to make large decisions alone.
Finnish leadership style is characterized by rapid decision-making. The Finnish leader will take things forward and make decisions
better. Leaders style can be characterized as planning and
order, delegation of responsibility, friendship with subordinates, and
orientation toward innovation. The strengths of the Finnish leadership culture are the basic values
that form the core of the Finnish culture: honesty, justness, fairness,equality, diligence and respect for the individual combined withpurposefulness and guts.
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MANAGEMENT STYLE
Finnish management style has been described with theexpression Management by perkele (in English:
management by damn). Finns supports a collaborative and participative
management style. Managers tend to be task-oriented. Finns are often quite comfortable working in teams. A cooperative management style provides a framework
for motivated and creative staff to achieve goals. Clearly,those who work directly with any production process orcustomer will understand the requirements of the job
better than those operating some distance away.
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Managers put greater emphasis on efficiency
and order than on intuition and initiative. Managers take a low-key approach to managing
others.
Delegation is more a matter of setting the tactile
tasks. Within the larger firms in major decisions would
tend to be hit by a team of older executive on aKollektivart ways.
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Overall Cultural Aspects
A combination of educational superiority (Finnsclaim to have the best system in the world) and
technological research Moral strength, shown in low corruption, fast
payment and minimal bureaucracy Humility and honesty Fresh and innovative thinking
Doing rather than just talking about doing Vision, imagination and calm judgment, which are
encouraged by respect for silence and a syntheticlanguage
Pragmatism preferring to go straight to the point
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Case 1- NOKIA
Nokia is a true MNC in the sense that it has
garnered much more success overseas ascompared to its own home country.
Even though it is Finnish it has grasped a bigshare in the worldwide market.
Nokia has however not been able to capture theUS hearts as it has not correctly understood the
American culture well.
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Nokia- Organizational Culture
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Nokia- Management Culture The number of foreign Nokia employees in Finland has jumped to about 1,000 from a few
dozen five years ago. Foreigners now outnumber Finns at Nokia's renowned research centerin Helsinki.
A dozen Indian restaurants have sprung up here.
Nokia tries to help foreign hires navigate Finnish culture. The first step is a day of "cross-cultural training." Recruits learn that Finnish business meetings aren't like American ones, where executives want
to be sold on an idea in an entertaining way. Instead, a Finnish meeting means drinking lots ofcoffee and then "listening patiently without interruption," according to a training manual.
Newcomers at Nokia get a crash course on Finland followed by a quiz. (Sample question: "Forhow many years was [Urho] Kekkonen the President of Finland?" Answer: 25.)
Foreigners are encouraged to "enjoy shared silences," "shake hands firmly" and "go to thesauna."
What they shouldn't do: Praise the Swedes. Praise the Russians. Talk on buses. (It's true:Almost no one speaks during a Finnish bus ride.)
Some Finns are uneasy with the arrival of foreigners, even though they make up less thantwo per cent of the country's population of five million. W When a Nokia employee from the Indian state of Punjab, went to aHelsinki hospital, he was at
first told to go to a nearby refugee center. Once he identified himself as a Nokia employee,though, he was given medical treatment.
Still, many foreigners savour the freewheeling Finn style. At Nokia's research center, some
employees choose to start work at 6 a.m., while others don't arrive until noon. Employees areexpected to be self-starters.
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Bibliography
http://www.businessculture.org http://www.worldbusinessculture.com http://www.investinfinland.fi/cases/cases/en_GB/c
ases/ http://industry.bnet.com/technology/10003278/no
kia-failing-to-connect-with-us-culture/
http://www.expressindia.com/news/fe/daily/20000802/fst02028.html
http://EzineArticles.com/?expert=Rana_Sinha http://www.rmci.ase.ro/no11vol1/Vol11_No1_Articl
e13.pdf