Management and cultural diversity

Topics

Cultural attitudes

Managing multinationals

You and your culture

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1 Cultural attitudes

Multinational companies can attempt:

To use similar management methods in foreign subsidairies

To adapt thier methods to the local culture

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Advantages of using similar management methods

You work in the same way as you did it yesterday.

To show your working way to all foreign countries

It is a chance to catch smb’s fancy to your culture

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Disadvantages of using similar management methods

Your pruducts or services can be unacceptable to foreign countries people

You might not have any profit

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Advantages of aadapting their methods

Opportunity to begin to know another society from within

To become aware of similarities and differences

Satisfying experience.

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Disadvantages of adapting their methods

It involves certain responsibilities

You can changed from excitement and interest in the new culture to depression and fear of unknown

The occasional discomfort and extra effort

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2 Managing multinationals

Cultural divide:

North America and North – West Europe

Sourthen Europe and South America and Asia

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North America and North – West Europe principles

Management is based on analysis, rationality, logic and system

Status has to bbe achieved

The principle of pay-for-performance ofter successfully motivates salespeople

Matrix management

Universalists

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Sourthen Europe and South America principles

Management is based on personal relations, intuition, emotion, sensitivity

Status is automatically accorded to the boss

Promotions are expected to come with age and experience