Cross-cultural Management A case study PresentationOn Sweden Company & their subsidiary inChinaGroup Members:Sunny SharmaLeonid ValdMandeep AulakhQiyue ZhouRaghav Mehra
Culture… “Software of mind”- Hofstede Mental programming Influence organizations – both at macro and micro level
Cross-Cultural Management Managing culture across the boarders Because of globalization and the rapid development of economics Cross-Cultural Management deals with: leadership Style Motivational approaches Organization structure Strategies
Differences between Sweden and Chinese culturesSwedes Chinese• Egalitarian in nature • Collective society• Competition is not encouraged • Look towards the ground when greeting• Maintain eye contact coupled with hand • Business attire is conservative andshaking when greeting unpretentious• Business wear is conservative • Appointments are necessary• Usually cut and dried • Punctual• Punctual • Pay great attention to the agenda• Meetings governed by an agenda • Rank is extremely important• Status is not very important • Prefer face to face meeting• Treat all people with equal respect and •Working through an intermediarydeference• Consensus driven •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?
Confusion Sweden 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.
Three Attributes – Business Context Management Styles Staff Behavior Communication System
National Culture Dimensions Index of Sweden andChina 118 120 100 81 80 71 66 60 Sweden 39 China 40 31 33 30 20 20 5 0 PDI IDV MAS LTO UAI (Hofstede resources page)
MANAGEMENT STYLESSWEDEN Scenario CHINA Scenario • HIGH POWER DISTANCE• MANAGERS - MEDIATORS • HIGH HIERARCHICAL LEVEL• LOW POWER DISTANCE • COLLEAUGES FOLLOW• LOW HIERARCHY LEVEL THE DECISIONS MADE• MANAGERS EMPOWER BY SUPEROIR EMPLOYEES AND UTILIZE • MANAGERS ARE EXPECTED THEIR KNOWLEDGE TO KNOW EVERYTHING
Staff BehaviorWhat is valued through work ?Sweden China proud feeling material achievement The job has “became a part of Power identity”. Competition welfare Performance
What causes difference in staffbehavior?• Life pressure• Salary• The different individualism scores Sweden China • discussion • Wait for the decision from • comprehensive managers. decisions • Afraid of expressing themselves • No suggestion
Communication SystemAddressing the Objectives, The Mission, The Vision, Slogans Swedish - Informal and Formal Mode China – Formal Mode Reporting E-mailing and Memo’s